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101
The Portuguese and the English versions (inter alia) of paragraph 2 read: Members of the general assembly shall be appointed by common agreement between the Member States concerned. However the French version employs the term by instead of between, which would seem more appropriate: Les membres de l'assemblée générale sont nommés d'un commun accord par les États membres concernés. In fact there seems to be no grounds for the names put forward by one Member State to be decided on by other Member States.
102
Economic growth has fallen far short of expectations, and this has prevented France and Germany – and to some extent Portugal – from respecting the agreed criteria. Under Treaty Article 104(8) and Regulation 1466/97 of the Stability and Growth Pact, this should have triggered drastic adjustment measures and possible sanctions for failure to respect the agreed criteria. However, the Ecofin Council of 25 November 2003 decided to suspend the infringement procedures against France and Germany.
103
The European Commission believes that the fact that some major countries such as France and Germany have failed to comply with the Maastricht Treaty and Stability Pact criteria (3 % and 60 %) could be an obstacle to efforts to secure economic recovery, better coordination of eurozone budgetary policies and a re-launch of employment promotion policies. However, many observers see the restrictive use of the Pact and the lack of a strategy to boost demand and supply in the EU as perhaps the most serious obstacle to the success of the Pact.
104
The forms of agricultural production in question are supported by a broad social fabric, in terms of both production and processing. In this sense these are extremely social crops by virtue of the jobs they generate, and particularly in the light of their labour-intensity and the dominant role they play in certain areas and regions of the European Union. The EESC considers that the social repercussions and the loss of jobs which would result from the proposed reforms would be particularly severe in areas which already suffer from high levels of unemployment.
105
The Commission proposes transferring EUR 102.9 million from the first pillar to the second pillar. In practice, this will place a double burden on cotton producers as they already contribute to rural development through the horizontal regulation and tapering payments (reduction of 3 % in 2005, 4 % in 2006 and 5 % from 2007 onwards, when direct aid exceeds EUR 5,000 per year). These arrangements apply only to the tobacco and cotton sectors. The EESC believes that this contradicts the Luxembourg decision and calls on the Commission to re-consider its position.
106
The EESC has issued a number of opinions on the subject in recent years. Its most recent opinion (CES 190/2002) stressed the need for a study on the sector in which the Commission would assess its decisions, since the tobacco sector is of major regional importance for less favoured areas and a source of employment. The CAP has now been reformed, with aid being decoupled from production and we expect to see studies making a complete separation between tobacco growing and smoking.
107
The Commission's proposals for tobacco follow on from the Communication on sustainable development presented to the Gothenburg European Council in June 2001. The EESC points out that, following legal consultations by one of the producer Member States, no decision was reached on the future of tobacco during this Summit. The Council's legal service expressed the view that, with its fifth recital, the Commission was attempting to get the Council to accept a measure (the elimination of tobacco aid) which it had proposed in its Communication to the European Council, but which the latter had rejected.
108
In the EESC's view, while this proposal is in line with sustainable development and health policies, it hides a large dose of confusion as tobacco consumption (which is a major source of tax revenue for the Member States – to the tune of EUR 63,000 million) cannot and must not be tackled in the short term by plunging European producers into crisis, most of whom live in less-favoured rural areas and receive only EUR 955 million of the Community budget.
109
The EESC endorses the proposal's approach and its main principles and considers it important to improve animal welfare during transport. The Committee also believes that moral and ethical principles associated with animal welfare should be taken into consideration. The Committee believes that the duty of care due to animals during transport must be consistent with good animal husbandry practices informed by the best available advice from the most competent veterinarians dealing with animals.
110
On 26 April 2004, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EEC) No 4064/89, as last amended by Regulation (EC) No 1310/97, by which the undertaking CRH plc. (CRH, Ireland) acquires within the meaning of Article 3(1)(b) of the Council Regulation joint control of the undertaking Companhia Geral de Cal e Cimento, S.A. (Secil, Portugal), previously under the sole control of SEMAPA, Sociedade de Investimento e Gestao, SGPS S.A. (SEMAPA, Portugal), by way of purchase of shares.
111
On 20 April 2004, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EEC) No 4064/89, as last amended by Regulation (EC) No 1310/97, by which the undertaking Kabel Deutschland Gmb H, Germany (KDG) acquires indirectly within the meaning of Article 3(1)(b) of the Council Regulation control of the undertakings ish Gmb H & Co. KG, Germany, and ish KS NRW Gmb H & Co.KG, Germany (the latter two ish) by way of purchase of shares.
112
With regard to alternative methods of regulation, that is, co-regulation between private partners or private self-regulation, the agreement stipulates that these mechanisms will not be applicable where fundamental rights or important political options are at stake or in situations where the rules must be applied in a uniform fashion in all Member States. The mechanisms must also ensure swift and flexible regulation which does not affect the principles of competition or the unity of the internal market. The alternative regulation is therefore subject to a number of restrictions.
113
With regard to the number and nature of texts listed in the Commission's scoreboard, it must be pointed out that delays accumulated during Phase I will overflow into Phase II; it may therefore be optimistic to think that the objective can be met by 2005. Moreover, a large majority of the texts listed were produced by the Commission under the committee procedure, exercising delegated regulatory powers (although this concept is not included in the current text of the EU Treaty, which refers to powers of implementation delegated by the Council).
114
These consultations may also help produce assessments which are as realistic as possible of the impact and consequences, financial and otherwise, of a proposal. It may, although not solely, be a question of consultation on green papers or on other preparatory working documents of the Commission accompanied by a questionnaire. The Committee is prepared to contribute to the consultative process as representative of the social and economic interests of the whole of civil society and to organise hearings with the organisations representing all these interests to make its own contribution to the continuous improvement and simplification of legislation.
115
The EESC has suggested setting up an independent European body to follow-up and promote regulatory and administrative simplification, and a provision of this nature should be considered as soon as possible. At all events, simplification should be extended as far as possible to all areas of the acquis, and this is far from being achieved. This is all the more urgent because simplification will support and accelerate the effective implementation of the acquis in the new Member States, and should spur on those who are lagging behind to clear their backlog.
116
Environmental and safety legislation in relation to business activities might be a particularly promising area for simplification. In the long run, the issue could be recast more consistently and accessibly in a European Environment code. The Committee notes that some private publishers periodically produce unofficial European codes which bring together and gives glosses on certain subjects, such as a European social code or a business code, illustrated and explained by case-law and legal commentators. These initiatives prove the usefulness of codifying or reformulating the acquis for users and professionals in Community law.
117
In the first place, the concept of technological neutrality cannot mean that all technologies are equivalent as regards solving a given problem. Clearly, choices have to be made on the basis of a cost-benefit analysis along the lines of that drawn up by the Commission (working document SEC(2003) 895). It is important in this context that use of the Structural Funds is not at variance with these principles and that local authorities have a clear idea of the complementarity of terrestrial and space systems in terms of geographic data and population density
118
Space activity is of major strategic importance for the European Union. Its scientific, technological, economic and human implications are considerable. It is therefore an integral part of the Lisbon strategy and there is a need to ensure that the means are made available for achieving the stated objectives in this area. Under these circumstances, it is clear that the EESC can only reject the possibility of scenario C. It regards scenario B as the minimum working hypothesis, whilst hoping that it will be possible to move closer to scenario A.
119
Despite the failure of the Intergovernmental Conference, the Committee recommends that the European Union, building on the framework agreement between the Commission and ESA, press ahead resolutely with its efforts to shape and stimulate demand and with space initiatives, without duplicating the programmes of Member States, their national agencies or ESA and without standing in the way of enhanced cooperation or strong partnerships between certain Member States. The Committee recommends the incorporation of space policy within the remit of a high-level EU body or official.
120
STAR 21 and the Commission make a number of objective remarks that merit support. The aerospace industries clearly belong to a hi-tech sector whose advanced skills and technologies may have a valuable impact on other sectors. In this respect, they have a major role to play in enabling the EU to achieve the Lisbon goal: to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion.
121
In quantitative terms alone, the number of new committees is nonetheless twice the number of existing committees, giving rise to a long list of committees which becomes even longer if we include the Financial Services Committee, established a few months before the committees listed above and the role of which would seem to overlap a priori with theirs. Unless this situation is justified by the reasons of legislative techniques outlined above, it would in principle seem to run counter to the demands for transparency and simplification via a drastic reduction in the huge number of existing EU committees.
122
On the other hand, as regards the composition of the four new committees, the EESC welcomes the fact that the European Banking Committee will be composed of only one high-level representative per Member State – as opposed to the national delegations to the Banking Advisory Committee which are currently allowed up to three members – and that it will be chaired by the Commission - as opposed to the latter which is chaired by a representative from a Member State. Though the proposed Directive does not explicitly refer to this, it can be deduced from the executive summary.
123
Secondly because it would spark off a new conflict with the European Parliament, by providing that the Council would effect such a transfer of powers by unanimity, after consulting the Parliament, whereas Article 105(6) of the EC Treaty, as currently in force, allows the Council to do this only after receiving the assent of the Parliament. Although Commission proposals do not have to take account of draft legislation which has not entered into force, the above comments stem from the fact that the Committee is bound to look ahead when exercising its consultative functions.
124
As well as the effects of the above-mentioned measures on businesses that produce the relevant products, it would also be useful to consider making them fully applicable to all products, whether they are made in the EU or in third countries, and to extend this to components of the product. In the Committee's view, checks on external trade made by the Union's customs services, and those within the internal market, could prove costly, slow and ineffective when faced with accelerating global trends.
125
In the Committee's opinion, the guiding principles – both in general and for SMEs in particular – should be those of proportionality and of real relevance, as well as prior verification of the feasibility of the measures accompanied by sufficient financial support and/or tax incentives. This is essential in order to encourage and sustain the competitive implementation of eco-design information and fast, easy access to databases, training of technicians and businesses, dissemination of innovation and the technological marketing of innovative products.
126
The communication deals sensibly with the question of the shared responsibility of the various parties (Commission, Member States, road and safety authorities, the motor industry, service and system suppliers). However, responsibilities need to be defined and regulated in detail to cater for the eventuality of safety devices failing to operate satisfactorily. As the systems and functions are completely new, there is much work to be done. Nonetheless, as regards the question of responsibilities, it must be acknowledged that the Commission has already funded three research projects: Response, Response 2 and Prevent.
127
The Committee is particularly pleased that the proposal stresses the human aspect of transport and that it puts forward practical measures for dealing with the human side of road safety. In its opinion on the European Road Safety Action Programme: Halving the number of road accident victims in the European Union by 2010: A shared responsibility the Committee noted the importance of the human element of road safety, and it is thus very pleased that the Commission proposal focuses on that aspect in particular.
128
The EESC notes that the principle of providing nutrient profiles contained in the Commission's preliminary proposal is not contained in the present proposal. However, since it can be assumed that substances are added to food only if claims can also be made for them, the EESC agrees with the Commission's position in the explanatory memorandum that the present proposal need not make explicit provision for the establishment of nutrient profiles, since these are already provided for in the Commission's proposal on nutrition and health claims.
129
The directive seeks to strike a balance between extending the opportunities for businesses to provide services in other Member States and social protection of workers. For this reason, it defines a series of employment conditions which posted workers are to be guaranteed in the territory of the host country, regardless of which legal system governs posted workers' employment contracts. The directive defines a posted worker as a worker who, for a limited period, carries out his work in the territory of a Member State other than the State in which he normally works (Article 2(1)).
130
The transitional system, albeit modified in various ways, is still in force and there is no likelihood of its replacement in the immediate future, although according to a widely held view it has significant imperfections which are such as to prejudice the proper functioning of the single market. Three years having passed since the launching of the programme in 2000, the Commission, in a communication to the Council, the European Parliament and the Economic and Social Committee, is now proposing a review and update of VAT strategy priorities, not least in the light of initiatives taken in the meantime.
131
The Committee is aware that the present system is highly vulnerable to fraud. Cases of fraud are encouraged by the possibility of combining operations to which VAT is applicable with operations for which actual payment of VAT is not required. Nonetheless, the Committee takes the view that fraud should be combated not so much by introducing amendments to the current system, but in the context of the existing rules. The results of a strategy based on introducing substantial modifications to the current system would be uncertain, while the direct and indirect administrative costs of such a strategy would be enormous.
132
Opinion of the European Economic and Social Committee on the proposal for a Regulation of the European Parliament and of the Council on administrative cooperation in the field of excise duties and the proposal for a Directive of the European Parliament and of the Council amending Council Directive 77/799/EEC concerning mutual assistance by the competent authorities of the Member States in the field of direct taxation, certain excise duties and taxation of insurance premiums and Council Directive 92/12/EEC on the general arrangements for products subject to excise duty and on the holding, movement and monitoring of such products
133
Consequently, two non-Community systems currently co-exist within the Union and, more widely, the EEA and some other countries: national patents, issued by national patent offices and subject to the domestic courts of the country of issue; and European patents, resulting from the Munich Convention of 1973, which determined the applicable substantive law and allowed for a single patent to be issued in those signatory countries to the convention specified by the applicants, but did not specify the applicable territorial law nor which national courts had jurisdiction.
134
The judges are chosen from a list drawn up by a Consultative Committee. This list must contain twice as many names as there are vacant posts. Appointments are made by the Council acting unanimously. The judges will have to demonstrate a high level of expertise and experience in patent law. The Consultative Committee will be appointed by the Council and be made up of seven members, most of whom will be former judges of the Court of Justice, the CFI or the CPC, and possibly lawyers of recognised competence, all of whom will be highly competent and impartial individuals.
135
The Committee urges that consideration be given to amendments to the regulation that help to simplify procedures. In this context, the dialogue with stakeholders which was launched very fruitfully in the extended consultation process in 2003 should be continued, so as to safeguard legitimate health protection requirements and the equally legitimate requirements of competitiveness and employment. To this end, the Committee calls for more effective practical measures to promote development and innovation opportunities. Such measures are particularly necessary for SMEs, as the costs of the REACH system could eat into a significant percentage of their turnover.
136
There is a certain logic in requiring speedier action and more extensive information when larger volumes of chemicals are produced/imported; this approach is simple, and can be applied directly. However, it is not necessarily the best way of identifying real risk, either in terms of intrinsic hazard or of exposure. Retaining a criterion (that of volumes) which the Committee has already described as too rough could involve unjustified costs for companies.
137
The Commission proposes a series of rules on data availability, with a view to reducing animal testing and the costs for companies. In particular, the most important data can be shared, subject to payment of a fee. Assistance will also be provided to find other registrants to exchange data with. However, this mechanism does not appear to have sufficient support nor to be able to encourage alliances, other than between partners who already cooperate or are already tied to each other for supply reasons.
138
The Commission's figures for the direct and indirect costs of the system over the next ten years have been criticised by various parties as being too low. The Committee notes the new evaluation which takes account of the changes made to the earlier draft document following consultations. The impact assessment has thus been expressly updated and should be more realistic. However, a number of imponderables remain, particularly as regards indirect costs, downstream users, and the impact on the new Member States.
139
The political commitment to provide legislation safeguarding health, safety and environmental impact for all chemical users and for the general public has to be met without damaging the competitiveness of the industry. The Committee therefore calls on the Commission, the European Parliament and the Council to give serious consideration to any amendment that could help to simplify procedures, cut red tape and thus reduce the attendant costs, continuing the consultations with stakeholders with this aim in mind.
140
In November 2003 the Accession member states, except Cyprus, submitted requests to the Commission for certain exemptions from the requirements of the Energy Tax Directive. The Accession Treaty of the 16.4.2003 provides that with respect to EU legislation adopted after 16.5.2003 that the Accession countries must have the opportunity to submit requests for any exemptions with respect to such legislation that they regard as necessary. The Commission must examine such requests and if found to be justified make a proposal to the Council. The Commission require a detailed justification for every demand submitted.
141
Given that existing EU Member States have been granted temporary exemptions from the Directive's obligations the European Commission has accepted that the candidate countries may need a longer time-frame in which to apply the Directive's provisions. The purpose of this proposal is therefore to set out the exact time-frame and scope on temporary exemption or reductions in the levels of taxation on energy products and electricity in each of the ten candidate countries. Each individual country is assessed separately based on their unique needs.
142
The Commission acknowledged that SMEs are the bedrock of European industry, with 66 % of total employment and 60 % of the EU total of value added, excluding the agricultural sector. In 1999 the proportion of the applicant countries' employment accounted for by SMEs was even higher at 72 %, excluding the agricultural sector. The job total for micro-enterprises (fewer than 10 workers) is the most significant, with 40 % of total employment, and is a good argument for paying special attention to enterprises of this type (see Appendix, Table 2).
143
The European Charter for Small Enterprises acknowledges that, while the latter are the backbone of the European economy, they are also the most sensitive of all to changes in the business environment. This is even more true in the accession countries, which have together officially approved the Charter. The challenge for SMEs and SEEs as regards their capacity to compete in the Single Market is significantly greater this time than in all the previous waves of enlargement. Among the most important constraints upon them are the lack of skilled labour, access to financing and administrative regulations (see Appendix, Table 5).
144
For conditions for access to the Single Market to be really fair, it is necessary to modify as soon as possible the rules that restrict the access of SEEs to public works contracts in several accession countries. Moreover, account should also be taken in public procurement, as in taxation, of the productivity costs borne by some SMEs, and particularly SEEs, in carrying out policies such as employing disadvantaged people or respecting social and environmental standards going beyond the legal minima41.
145
SMEs and SEEs in the accession countries must also be considered in their role as employers, even if work in them as a conventional employee coexists with work as a self-employed person and with worker ownership. As employers they must undertake to respect European and world labour standards. In addition, their representative organisations must enter into the social dialogue as independent actors, discussing not only labour relations but also all social policies with trade union organisations and the other economic and social actors at all levels. Activities in this direction should be actively promoted under the programme proposed here.
146
Article 1(2) replaces the annex to the existing directive, which briefly listed the different types of companies in the language of each country, with a much more detailed list which includes the European Company (SE) and the European Cooperative Society (SCE) as well. This list has the merit of being clearer and of removing some ambiguity where certain countries are concerned but, apart from these necessary improvements, it does not essentially add anything new.
147
The EESC has serious reservations about the Commission's proposal for national programmes to be drawn up every three years as, while this could be simpler in administrative terms for the Member States, it would complicate the necessary annual presentation and review of national programmes. This would be a major disincentive to using such aid and would also increase the administrative problems currently experienced in some EU Member States. This in turn would have a detrimental impact on European beekeepers who already complain that in some Member States efforts are concentrated on measures that do not benefit them directly.
148
The Committee believes that the proposed Regulation will do what its title suggests and urgently address the promotion and marketing of high-quality honey and consumer protection, by including measures to promote joint marketing, investment in packaging and classification centres, and measures to promote beekeeping products in general. It would therefore be a very good idea for this Regulation to retain the honey analyses measure, as it is a fundamental and strategic tool for promoting European beekeeping products and for protecting food quality and safety for consumers.
149
none. Furthermore, any legal entity established in a third country not covered by article 6(2) of the Rules for Participation (entities in countries having concluded an S & T agreement with the Community may participate by right) may also participate in this call providing that such an involvement would be beneficial or essential to the proposed activity, and is over and above the specified minimum number of participants from Member State or associated countries. The Community may contribute towards the costs of such participation.
150
none. Furthermore, any legal entity established in a third country not covered by Article 6(2) of the Rules for Participation (entities in countries having concluded an S & T agreement with the Community may participate by right) may also participate in this call providing that such an involvement would be beneficial or essential to the proposed activity, and is over and above the specified minimum number of participants from Member State or associated countries. The Community may contribute towards the costs of such participation.
151
The sectoral approach emphasises the role of sectors as a testing ground for the development of international qualifications and competences. The sectoral level is of particular importance as players at this level are close to problems and challenges associated with globalisation and the development of new technologies and, are in a good position to suggest and develop solutions. This is illustrated by the fact that important initiatives aiming at European and international training standards and modules have been adopted at this level in recent years.
152
NOTE 3:The rules and principles mentioned in the following chapters are, in general, specified in detail in the contract (grant agreement) concluded between the national agency (procedure A and B) or the Commission (procedure C) and the promoter (contractor). Additional details can be found as well in the Administrative and financial handbook, inter alia, with regard to the use of lump sums, co-financing in kind, conditions and ceilings on specific budget items with regard to Community contribution, subcontracting, etc. (see last chapter for a summary of all references to model contracts).
153
for projects of more than 18 months duration: a first pre-financing payment of maximum 40 % of the granted amount within 45 days after signature of the contract by the two parties concerned; a second pre-financing payment of maximum 30 % of the granted amount within 45 days after approval by the relevant national agencies of an interim report; the balance within 45 days after formal approval by the national agency (procedure B) or the Commission (procedure C) of the final report;
154
In order to make it easier for the host Member State to carry out checks focused on travellers, the other Member States are invited to supply any information believed to be of relevance. The information supplied may concern names of individuals in respect of whom there are substantial grounds for believing that they intend to enter the Member State with the aim of disrupting public order and security at the event or committing offences relating to the event, including names of individuals convicted of offences involving disruption of public order at demonstrations or other events, where national legislation allows.
155
In terms of respecting the subsidiarity and proportionality principles the Framework Directive 89/109/EEC was adopted on the grounds that differences between national laws of the Member States impended the free movement of these materials and articles. Directive 89/109/EEC approximated those laws to achieve the free movement of food contact materials and articles whilst protecting consumer's health and interests. This Directive also established a list of materials and articles to be covered by specific directives. This approach was successful and should be continued.
156
The legislation proposed is in line with the objectives set by the Sixth Community Environment Action Programme, with the strategy on the prevention and recycling of waste – which the Committee has already endorsed – and, lastly, with Directive 2000/53/EC on end-of-life vehicles and Directive 2002/96/EC on waste electrical and electronic equipment. The Committee has expressed its opinion on the latter two directives as well on several occasions, advocating the introduction of ambitious targets for recovery, re-use and recycling (CES 1407/2000, point 3.4.1).
157
The Committee endorses the possibility and compatibility of using a single legal basis which includes both Article 95 and Article 175, each relating to a clearly specified, distinct part of the directive. However, in order to ensure a high level of environmental protection in a single market with a level playing field, it would advocate the use as far as possible of Article 95, with due consideration being given to the options provided for in paragraph 3 (high level of protection) and in paragraphs 5 and 6 (introduction or preservation of provisions increasing protection).
158
Overall, the incorporation of existing tools in a coordinated framework which is promoted and monitored in each country by a single body – linked to others by a Europe-wide network - and which is backed up by suitable information systems at national and European level, will make it easier to gain access to these documents, secure greater consistency between them and raise their profile. A portfolio of document references improves communication efficiency more than a series of unrelated documents. This is a passport for rendering people's qualifications more readable and more easily communicable.
159
The current rules lead to unfair situations of non-taxation or double taxation, which can result in putting businesses established outside the Union at an advantage, and businesses established within the Union at a disadvantage. The main reason for this lies in the fact that Article 9-2(e) applies only to a specific, limited list of exceptions, and that adding to this list would entail the long and laborious process of amending the directive.
160
The application of Article 9-2(e) allows for the taxation of services in the country of the customer, even if the supplier is established outside the European Union and, conversely, to exempt from tax those services rendered by suppliers established within the territory of the Union to purchasers established outside the EU. This mechanism ensures the neutrality of the tax and equality between EU-based suppliers of these services and businesses established outside the Union.
161
The Commission states that nothing in this field has been changed relative to the current situation. However, the EESC points out that the rules to be applied are, as already stated, extremely complicated. Furthermore, they may in practice give rise to different interpretations in individual cases, which will cause doubts over interpretation and create more work for taxpayers and the authorities. The whole sector is one where greater clarity and simplicity are necessary. The EESC suggests that the rules should be radically revised in terms of their wording and, if necessary, their substance.
162
The other exceptions relate to non-taxable persons, whom the text is obliged to take into account, as it amends the whole of Article 9. The current rules are maintained and require no comment. The Committee would point out that whilst it may be desirable at a later stage to harmonise the principles of taxation between taxable persons and non-taxable persons, steps must be taken to ensure that such a change would not increase the administrative burden on suppliers or consumers. This development should enable a universal roll-out of one-stop shops of the type that now exists for services supplied electronically.
163
This exploratory opinion, drawn up by the Committee at the Commission's request, examines the range of problems facing the EU on the road towards sustainable development and considers how the EU should strengthen its sustainable development strategy. The reasons are manifold. One is that, in politics and society, views vary widely as to what actually constitutes sustainable development and the extent to which our current production and consumption patterns are already compatible with sustainability considerations or have to be changed – in other words what specifically needs to be done and by whom (cf. point 2.2 below).
164
The Committee is clear that the current EU sustainable development strategy adopted at the Gothenburg summit needs revision. This revision must seek a better balance between the environmental, economic and social dimensions of sustainability (cf. point 3.2 ff). The strategy must also make clear how the individual EU policies can be framed more coherently (cf. point 3.8 ff) and how the requisite national, regional and even local sustainable development strategies can be interlinked (cf. point 5).
165
The upshot of all of this is, in the Committee's view, that we are just at the start of a doubtless difficult road towards sustainable development. This is also clear from the fact that, in some key areas of environment policy, the Commission has only just started drawing up the papers that, ultimately, are supposed to set out specific strategies. The Committee is so far unaware of any papers at all being drawn up on progress made in the economic and social dimension of the sustainability debate.
166
The EU financial perspective for 2007-2013 could have been an opportunity to give a decisive impulse to sustainable development. However, the Committee notes that it is not enough merely to press ahead unchanged with current policies that have raised difficulties for sustainable development, and to pursue them in future under the sustainable growth budget heading. The Committee points out that, first of all, sustainable development and sustainable growth are two different things, which should be mutually reinforcing but may indeed conflict (cf. point 2.3). Hence, a clear distinction is also needed in the financial perspective.
167
Politically, the Commission can build on broad popular support. Surveys have shown that a very large majority of the population support the principle of intergenerational justice and the objective of using no more resources than it is possible to regenerate, although only a minority have actually ever heard the term sustainable development. In other words, people can identify with the overall policy objectives of sustainable development, but only a small minority are au fait with the term sustainable development itself. That indicates a major problem of communication that must be resolved.
168
In the foreword to the EU brochure on sustainable development, the Commission president, Romano Prodi does indeed say that sustainable development is not an academic concept with no practical importance — it is about real issues and real choices that profoundly affect our daily lives. However, the highly abstract strategy is not specific enough about what these profound effects actually are. That is one of the critical shortcomings that must be remedied in future.
169
The strategy's failure to provide readily understandable answers to such questions may very well generate fears in certain circles – and ultimately lead to resistance to the policy in question. This risk is particularly great if the impression is created that sustainable development is more of a complication and a threat to the economy and is thus not seen as an opportunity for the future. The Committee's fear is that we in Europe have now reached that stage. That explains why sustainable development has run into difficulties and why reports on the issue have not so far been more positive.
170
The Committee welcomed the addition, at the Gothenburg summit, of an environmental chapter to the Lisbon strategy, and the adoption of a sustainable development strategy – albeit with relatively limited content. The fact that the Council only recently reiterated its call for environmental considerations to be incorporated more into the Lisbon strategy shows the shortcomings still existing on this front. Taking greater account of environmental protection can help to make the Lisbon strategy more consistent with the sustainability strategy, but it is clear that this will not automatically follow.
171
One issue that should, in the Committee's view, be addressed with the highest priority is the refocusing of the aforementioned EU policies in order to kick-start the framing and promotion of comprehensive sustainable development schemes at local level. The Committee therefore proposes that particular support be given to those programmes that are based on cooperation between organised civil society and local authorities and are designed on an individual basis to achieve specific and measurable (quantitative and qualitative) objectives by drawing on authoritative knowledge, education and lifelong learning.
172
However, this is not sufficient. The EESC has already examined this fundamental problem in its opinion on the future of the CAP. The Commission must therefore work – much harder than it has done hitherto – to ensure that, for example, sustainability criteria such as clear environmental, animal welfare and social standards are integrated into the WTO negotiations as a matter of urgency. Sustainability therefore has to do not only with production and consumption but also to a very large extent with international trade. However, in the WTO, much too little account has so far been taken of sustainability considerations.
173
The Committee considers it absolutely essential that a much more participatory process should be used in future to develop the sustainability strategy. It recalls that the draft sustainability strategy that formed the basis for the discussions in Gothenburg was published just two months after the consultation document. The discussions that are urgently required in order to reach a broad social consensus (see points 2.2 and 2.3) need far more time than they have hitherto been allowed.
174
The strategy must focus strongly on the potential impact on industry, working life and the labour market. At numerous junctures and in many different documents, the Commission has consistently stressed that job creation and environmental protection are not opposite poles, but can complement each other effectively. This strategy must prove that to be the case. Companies are right to want, as far as possible, long-term legal certainty and the security to plan ahead. The strategy must indicate what companies have to expect in the coming years.
175
It should also be borne in mind that the present directive represents a step on the way to implementing the European company (SE) as a valid legal vehicle throughout the EU, specially designed to meet the needs of SMEs, and which has met with broad support in the EESC. It should be pointed out in this regard that the Commission's communication of 21 May 2003 took on board the recommendation of the High Level Group that the Tenth Directive on cross-border mergers should be adopted before presentation of a proposal on the SE statute, pending a prior viability study.
176
The reform undertaken by the company tax directives, although not mentioned in the present draft directive, is also a relevant issue. It is becoming abundantly clear that the delay in the constitution of the SE results from the unresolved problem of tax complexity arising from the relevant Community legislation and, in particular, of double taxation arising from mergers. Cross-border mergers governed by the present proposal may be considered to be similarly affected and, given that the proposal is geared principally to SMEs, lower costs should be encouraged in order to make such mergers attractive.
177
Secondly, this proposal needs to be coordinated with existing directives and the new proposals on tax reform in the area of mergers, etc., as cross-border mergers in the EU will only be viable in practice if there are effective company rules providing legal facility and security, as is the objective of this proposal for a tenth directive, and an appropriate ratio between the cost and tax benefits of such mergers. The EESC therefore believes that there is a need for coordination between DG Internal Market and DG Economic and Financial Affairs.
178
The overall emphasis of the programme, which has a proposed financial envelope of EUR 163 million over a four-year period (2005-2008), is on producing quality content that helps disseminate information and knowledge, and not just more content. The programme encourages the emergence of pan-European frameworks (services, information infrastructures, etc.) that facilitate the discovery and use of reusable and interoperable quality digital content with a view to creating new content-based services. Target areas for action will be public sector information, spatial data, and learning and cultural content.
179
According to Article 175(1) of the EC Treaty, the Commission is competent to adopt measures to ensure that environmental policy objectives are met. Thus the provisions on public participation should serve to promote and improve environmental protection. It should be pointed out that this information and consultation mechanism is already applied to other Community policies, in particular the CAP and industrial policy. Given the impact these policies have on sustainable development, it is essential that they are implemented in a transparent manner and that information is provided not only for stakeholders, but also for the public as a whole.
180
The concept of qualified entity is defined in both proposals but not found in the Århus Convention, which refers only to the public concerned and recognises as such any organisations promoting environmental protection. According to the Convention, it is not necessary for such protection to be their sole objective, only that they meet the relevant legal requirements for associations in each Member State. It would seem obvious that other non-profit organisations, such as trade unions, social economy and socio-occupational organisations, consumer associations, etc., also play an important role in protecting the environment at local, regional, national and European level.
181
According to Article 175(1) of the EC Treaty, the Commission is competent to adopt measures to ensure that environmental policy objectives are met. Thus the provisions on public participation should serve to promote and improve environmental protection. It should be pointed out that this information and consultation mechanism is already applied to other Community policies, in particular the CAP and industrial policy. Given the impact these policies have on sustainable development, it is essential that they are implemented in a transparent manner and that information is provided not only for stakeholders, but also for the public as a whole.
182
The EESC has repeatedly expressed its view that the EU's most appropriate instrument for ensuring compliance with environmental legislation is public participation in sustainable development policy, and that such participation must be based on transparency and checks to ensure that all parties comply with the relevant legislation. Instruments such as access to information, participation in the preparation of plans relating to the environment and subsequent access to justice will not only help step up compliance with legislation, but will also improve public awareness and education concerning the conservation and use of existing natural resources.
183
The concept of qualified entity is defined in both proposals but not found in the Århus Convention, which refers only to the public concerned and recognises as such any organisations promoting environmental protection. According to the Convention, it is not necessary for such protection to be their sole objective, only that they meet the relevant legal requirements for associations in each Member State. It would seem obvious that other non-profit organisations, such as trade unions, socio-occupational organisations, social economy organisations, consumer associations, etc., also play an important role in protecting the environment at local, regional, national and European level.
184
In this context it also has to be understood that the EU enlargement process is no longer an EU trade policy issue, which it has been to a considerable extent in the early phases of the accession negotiations with the then candidate countries. There will be a single enlarged common market by May this year leading to the conclusion that any further EU policies meant to assist industrial change and especially with the restructuring of the steel sector in the acceding countries, which is still necessary, are part of the internal EU policy framework.
185
Judgment of the Court (Sixth Chamber) of 29 April 2004 in Case C-372/97: Italian Republic v Commission of the European Communities (State aid — Transport of goods by road — Effect on trade between Member States and distortion of competition — Conditions for exemption from the prohibition set out in Article 92(1) of the EC Treaty (now, following amendment, Article 87(1) EC) — Existing aid or new aid — Principles of reasonableness and of the protection of legitimate expectations — Mo)
186
Judgment of the Court (Sixth Chamber) of 29 April 2004 in Case C-277/00: Federal Republic of Germany v Commission of the European Communities (Action for annulment — State aid — Decision 2000/567/EC — Aid granted by the Federal Republic of Germany to System Microelectronic Innovation Gmb H of Frankfurt an der Oder (Brandenburg) — Article 88(2) EC — Right to be heard — Compatibility with the common market — Article 87(1) EC — Recovery of illegal aid — Recovery from undertakings other than the original beneficiary)
187
Judgment of the Court (Sixth Chamber) of 29 April 2004 in Case C-106/01 (reference for a preliminary ruling from the Court of Appeal (Civil Division) (England and Wales)): The Queen, on the application of Novartis Pharmaceuticals UK Ltd v The Licensing Authority established by the Medicines Act 1968 (acting by the Medicines Control Agency), and Sang Stat UK Ltd, and Imtix-Sang Stat UK Ltd (Medicinal products — Marketing authorisation — Procedure relating to essentially similar products)
188
In considering two hybrid applications for marketing authorisation for products B and C brought under the final subparagraph of Article 4.8(a) of Directive 65/65, as amended, and referring to product A, the competent authority of a Member State does not infringe the principle of non-discrimination where, as a precondition for the grant of marketing authorisation, it requires full clinical data on the bioavailability of product B, but, having examined the data filed in support of product B, does not require the same data for product C.
189
Judgment of the Court (Sixth Chamber) of 29 April 2004 in Joined Cases C–162/01 P and C–163/01 P: Edouard Bouma and Bernard M.J.B. Beusmans v Council of the European Union and Commission of the European Communities (Action for damages — Non-contractual liability — Milk — Additional levy — Reference quantity — Producers having entered into a non-marketing undertaking — SLOM 1983 producers — Non-resumption of production on expiry of the undertaking)
190
In so far as the temporary removal of the T 1 transit document from the goods to which it relates prevents the presentation of that document at any possible requisition by the customs service, such a removal constitutes a removal of those goods from customs supervision within the meaning of Article 2(1)(c) of Council Regulation (EEC) No 2144/87 of 13 July 1987 on customs debt even if the customs authorities have not demanded presentation of that document or established that it could not have been presented to them without considerable delay.
191
Declares that, by applying Paragraph 4(1)(2)(b) of the Mineralölsteuergesetz (Law on the taxation of mineral oils) of 21 December 1992, the Federal Republic of Germany has failed to fulfil its obligations under the first sentence of Article 2(2) of Council Directive 92/81/EEC of 19 October 1992 on the harmonisation of the structures of excise duties on mineral oils, as amended by Council Directive 94/74/EC of 22 December 1994, inasmuch as it has not made all mineral oils intended for use as heating fuel subject to excise duties;
192
Judgment of the Court (Fifth Chamber) of 29 April 2004 in Case C-341/01 (reference for a preliminary ruling from the Landesgericht Korneuburg): Plato Plastik Robert Frank Gmb H v Caropack Handelsgesellschaft mb H (Directive 94/62/EC — Packaging and waste packaging — Plastic carrier bags — National legislation on the collection and recovery of used packaging and waste packaging — Collection and recovery of used packaging and waste packaging — Obligation to have recourse to an approved undertaking or to organise a collection system — Admissibility)
193
Judgment of the Court (Fifth Chamber) 29 April 2004 in Joined Case C-487/01 and C-7/02 (reference for a preliminary ruling from the Hoge Raad der Nederlanden): Gemeente Leusden (C-487/01), Holin Groep BV cs (C-7/02) v Staatssecretaris van Financiën (Turnover taxes — Common system of value added tax — Article 17 of the Sixth Directive 77/388/EEC — Deduction of input tax — Amendment of national legislation withdrawing the right to opt for taxation of lettings of immovable property — Adjustment of deductions — Application to current leases)
194
Judgment of the Court (Full Chamber) of 27 April 2004 in Case C-159/02 (reference for a preliminary ruling from the House of Lords): Gregory Paul Turner v Felix Fareed Ismail Grovit, Harada Ltd and Changepoint SA (Brussels Convention — Proceedings brought in a Contracting State — Proceedings brought in another Contracting State by the defendant in the existing proceedings — Defendant acting in bad faith in order to frustrate the existing proceedings — Compatibility with the Brussels Convention of the grant of an injunction preventing the defendant from continuing the action in another Member State)
195
Judgment of the Court (Grand Chamber) of 28 April 2004 in Case C-373/02 (reference for a preliminary ruling from the Oberster Gerichtshof): Sakir Öztürk v Pensionsversicherungsanstalt der Arbeiter) (Article 9 of the EEC-Turkey Association Agreement — Article 3 of Decision No 3/80 — Principle of equal treatment — Article 45(1) of Regulation (EEC) No 1408/71 — Social security for migrant workers — Retirement pension — Early pension in the event of unemployment — Condition whereby the worker must have received unemployment benefits in the Member State concerned)
196
Implementation of the judgment of the Court of 25 April 2002 entails amending provisions of the French civil code that are incompatible with Directive 85/374. The French Republic ought therefore to have begun the necessary legislative procedure immediately after the judgment was delivered. However the amendments have still not been adopted. A fine of EURO 137,150 per day of delay in implementing the judgement is appropriate to the seriousness and durations of the infringement and takes account of the requirement that the penalty be effective.
197
Judgment of the Court of First Instance of 21 April 2004 in Case T-127/02: Concept-Anlagen u. Geräte nach GMP für Produktion u. Labor Gmb H v Office for Harmonisation in the Internal Market (Trade Marks and Designs) (OHIM) (Community trade mark — Figurative mark containing the word element ‘ECA’ — Absolute ground for refusal — Emblem of an international intergovernmental organisation — Article 7(1)(h) of Regulation (EC) No 40/94 — Article 6 ter of the Paris Convention)
198
Order of the Court of First Instance of 15 March 2004 in Case T-66/02, Idiotiko Institouto Epaggelmatikis Katartisis N. Avgerinopoulou Anagnorismenes Technikes Idiotikes Epaggelmatikes Scholes AE, Panellinia Enosi Idiotikon Institouton Epaggelmatikis Katarsis and Panellinia Enosi Idiotikis Technikis Epaggelmatikis Ekpaidefsis kai Katarstisis v Commission of the European Communities (Structural Funds — Community support — Operational programme — Request for amendment — Application for a declaration of failure to act — Adoption of a position terminating such failure to act — No need to give judgment)
199
Order of the Court of First Instance of 15 March 2004 in Case T-139/02, Idiotiko Institouto Epaggelmatikis Katartisis N. Avgerinopoulou Anagnorismenes Technikes Idiotikes Epaggelmatikes Scholes AE, Panellinia Enosi Idiotikon Institouton Epaggelmatikis Katarsis and Panellinia Enosi Idiotikis Technikis Epaggelmatikis Ekpaidefsis kai Katarstisis v Commission of the European Communities (Structural Funds — Community support — Operational programme — Commission's reply to a request for amendment of a decision approving an operational programme — Action for annulment — Direct allocation — Inadmissible)
200
In support of its application, the applicant claims that the Commission erred in law when it increased the fine imposed on the applicant for recidivism, based on the decision of the Commission of 18 July 1990 in cold-rolled stainless steel flat products. The applicant invokes a violation of Article 15(2) of Regulation 17/62, the 1998 Fining Guidelines, the principles of proportionality and equal treatment and of the obligation to state reasons. It also claims that the Commission made a manifest error of assessment.