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European Economic and Social Committee

Registry CESE 2/2011 FR-EN/CVL/nm

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Brussels, 4 February 2011

PLENARY SESSION
19 AND 20 JANUARY 2011
SUMMARY OF OPINIONS ADOPTED
This document is available in the official languages on the Committee's website at:

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Registry CESE 2/2011 FR-EN/CVL/nm

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Summary:

1.EMPLOYMENT AND SOCIAL AFFAIRS

2.COMPETITION

3.TAXATION

4.EUROPEAN LAW

5.MONITORING AND SINGLE MARKET REGULATION

6.SAFETY OF PRODUCTS

7.FOOD REGULATION AND SECURITY

8.AGRICULTURE AND FISHERIES

The plenary assembly of 19 and 20 January 2011 was attended by Mr Zsolt Becsey, Hungarian Government Minister with responsibility for the National Economy, and the Vice-president of the European Commission, Ms Neelie Kroes.

Mr Becsey presented the new Hungarian presidency's work programme and priorities on 19 January on behalf of the Hungarian presidency in office of the Council of the European Union. Ms Kroes discussed the Digital Agenda with the assembly on 19 January 2011.

The following opinions were adopted at the session:

1. EMPLOYMENT AND SOCIAL AFFAIRS

  • Green Paper - Pensions

Rapporteur: Mr Petru Sorin Dandea (Employees – RO)

Co-rapporteur: Mr Krzysztof Pater (Various interests – PL)

References: COM(2010) 365 final – CESE 72/2011

Key points:

The Member States are fully responsible for defining their social security systems. However, a coordinated EU-level approach to pensions can contribute to coherence and ensure that national pension systems are in line with the social and employment pillars of the Europe 2020 strategy.

The Member States should be encouraged to reform national pension schemes for reasons of adequacy, sustainability and security, with strong participation and involvement by the social partners. The reforms should not create inequalities and jeopardise the income of future pensioners.

The EU should fulfil its supportive role by setting up a structured recovery policy designed to increase quality oriented growth by the means of active labour policy, vocational training, investments and innovation thus promoting the creation of more and decent workplaces.

Projections on demographics should be analysed to allow correct adjustments of pension systems, but they must be used and viewed with care, as many assumptions are hard to predict in the long term. Future proposals should take into account the effects of the crisis linked to the lack of jobs and investment.

Both Pay-As-You-Go and funded schemes are affected by the current economic crisis but in a different way. The EESC believes that Pay-As-You-Go mandatory schemes must continue to play a fundamental role in assuring future pensions and therefore special attention should be devoted to them.

Reforms based on a mere rise in legal retirement age are not a solution as millions of elderly people could be pushed below the poverty line, particularly women. Reforms should focus on increasing the effective retirement age using initiatives to foster extended working life, flanked by effective growth and employment policies and a real "active ageing" policy.

Automatic adjustment mechanisms for retirement age, based on demographic statistics and economic or labour market parameters, are assessed as dangerous for society as a whole and therefore not supported by the EESC.

Pension system must be credible and adequate, which implies searching for and implementing new financial resources in order to guarantee an inter-generational balance. Pension systems must be transparent, and information and statistics on their functioning as well as on all rights of the participants must be available and understandable.

The EESC urges the Member States and the Commission to make gender equality a reality. Different retirement ages for women and men should be reviewed.

Contact:Ms Ewa Kaniewska

(Tel.: 00 32 2 546 81 17 – email: )

2. COMPETITION

  • Report on Competition Policy 2009

Rapporteur: Mr Franco Chiriaco (Employees – IT)

References: COM(2010) 282 final – CESE 61/2011

Contact:Ms Magdaléna Carabin Belarova

(Tel.: 00 32 2 546 83 03 – e-mail: )

3. TAXATION

  • Excise duty applied to manufactured tobacco

Category C opinion

References: COM(2010) 641 final - 2007/0206 (CNS) CESE 59/2011

Contact:Mr Siegfried Jantscher

(Tel.: 00 32 2 546 82 87 – email: )

4. EUROPEAN LAW

  • European contract law

Rapporteur: Mr Antonello Pezzini (Employers – IT)

References: COM(2010) 348 final – CESE 60/2011

Key points:

In the Green Paper, the Commission proposes a number of different approaches aimed at increasing the coherence of contract law.

Of the various options proposed by the Commission, the EESC favours a hybrid option which takes account of the need to reduce costs and provide legally certain solutions by means of:

 a "toolbox" serving as a common frame of reference available to parties drawing up cross-border contracts, accompanied by,

 an optional regulatory regime establishing an "optional advanced new regime" (by means of an EU regulation) which could be used by the parties as a more favourable basis when entering into cross-border contracts. Such regulation shall not prevent any Member State from maintaining or introducing more stringent protective measures for consumers.

The Committee believes that the scope of the legal instruments should encompass cross-border commercial sale-of-goods contracts. For Business to Consumer (B2C) contracts, and those involving SMEs, the Committee considers that maximum effective protection in addition to legal certainty and safeguards for consumers must be secured.

Contact:Ms Maria José Lopez Grancha

(Tel.: 00 32 2 546 87 13 – e-mail: )

5. MONITORING AND SINGLE MARKET REGULATION

Corporate governance in financial institutions and remuneration policies

Rapporteur: Mr Michael Smyth (Various Interests – UK)

References: COM(2010) 284 final – CESE 62/2011

Key points:

In this opinion the EESC sets out its considered responses to the lengthy list of questions posed in the Commission's Green Paper.

The EESC welcomes the intent behind the Commission's Green Paper but notes some definitional shortcomings in its content, particularly on the precise definition of corporate governance, the differences in board structures between the Anglo Saxon and Continental systems as well as the concept of ''financial institution.''

The EESC also considers that:

 the Green paper is relatively parsimonious in its treatment of the needs of consumers,

 remuneration policy should not just be about those at the top of financial institutions but also about remuneration at all levels.

The broad thrust of the opinion is that there is scope for a tightening up of certain aspects of the governance of financial institutions but that while governance codes remain voluntary, the onus is upon the supervisory authorities to ensure that as far as possible, these codes are adhered to across the European Union.

Contact:Ms Claudia Drewes-Wran

(Tel.: 00 32 2 546 80 67 – e-mail: )

  • Retail market monitoring report

Rapporteur: Mr Pedro Almeida Freire (Employers – PT)

References: COM(2010) 355 final – CESE 63/2011

Key points:

The EESC acknowledges the importance of the retail sector in the Single Market as well as its contribution to the overall European economy. The EESC welcomes the holistic approach developed by the European Commission in the Retail Market Monitoring Report and concurs with the need to avoid focusing on individual sub-sectors.

Furthermore, in its opinion, the Committee draws a series of remarks and recommendations. Among these, the EESC:

 regrets that too little attention is paid to SMEs;

 is concerned with measures in some countries aimed at controlling price levels or margins;

 calls that manifestly unfair practices occurring in the entire food supply chain be analysed and addressed appropriately;

 calls on the Commission to study how "unfair contractual relations" are dealt with at national level, including enforcement;

 calls on the Commission to support the promotion of self employment, entrepreneurship and skills development;

 calls for a timely adoption of proposals, and urges the European Commission to speed up its decision-making in an area that requires urgent, practical and tangible action.

Contact:Ms Filipa Pimentel

(Tel.: 00 32 2 546 84 44 – e-mail: )

  • Short selling

Rapporteur: Mr Peter Morgan (Employers – UK)

References: COM(2010) 482 final – 2010/0251 (COD) – CESE 66/2011

Key points:

The EESC welcomes the provisions for market transparency which it expects to be very beneficial. It believes that, in general, outcomes will be optimum if markets are allowed to operate freely within an established regulatory framework.

Accordingly, the EESC proposes:

 ESMA be given a coordinating role at the same time hoping that direct ESMA intervention will be exceptional. CDS related to sovereign debt have been the focus of eurozone angst as the sovereign debt crisis has erupted. The economic and social dimensions of this crisis are of enormous concern to the EESC.

Contact:Ms Claudia Drewes-Wran

(Tel.: 00 32 2 546 80 67 – e-mail: )

6. SAFETY OF PRODUCTS

  • Explosives precursors

Rapporteur general: Mr David Sears (Employers – UK)

References: COM(2010) 473 final – 2010/0246 (COD) – CESE 64/2011

Key points:

The EESC supports actions to combat terrorism and agrees with the overall rationale for the proposal.

The EESC also agrees:

 with the list of 8 substances (and mixtures thereof) included in Annex I as requiring controls under this heading;

 that it is reasonable to put in place centralised systems in the Member States to receive, share and respond to, reports of suspicious transactions of any of these 8 substances plus the further 7 listed in Annex II, together with any other transactions falling under this heading.

The EESC however:

 regrets that there are a number of shortfalls in the proposal;

 is surprised that, although costs for the retail sector and for governments have been broadly quantified, this has not happened for the assumed benefits.

Despite these concerns, the EESC strongly supports the proposal.

Contact:Ms Filipa Pimentel

(Tel.: 00 32 2 546 84 44 – e-mail: )

  • Approval and market surveillance / vehicles L category

Rapporteur: Mr Virgilio Ranocchiari (Employers – IT)

References: COM(2010) 542 final – 2010/0271 (COD) – CESE 65/2011

Contact:Ms Magdaléna Carabin Belarova

(Tel.: 00 32 2 546 83 03 – e-mail: )

  • Protection structures / tractors (codifications)

Category C opinion

References: COM(2010) 610 final – 2010/0302 (COD) – CESE 67/2011

Contact:Mr Luís Lobo

(Tel.: 00 32 2 546 97 17 – e-mail: )

7. FOOD REGULATION AND SECURITY

  • Fruit juices and certain similar products intended for human consumption

Rapporteur: Mr Pedro Narro (Various Interests – ES)

References: COM(2010) 490 final - 2010/0254 (COD) – CESE 68/2011

Key points:

The EESC supports the European Commission's initiative to amend Directive 2001/112 for the second time to make it comply with the Codex Alimentarius for fruit juices and nectars. However, the EESC regrets that the proposal for a Directive omits the addition of up to 10% mandarin orange juice to orange juice in the section on authorised ingredients. The Codex Alimentarius rules, with which the Directive aims to comply, authorises this technique which is widely used at international level and should thus be included in the text of the Directive.

Contact: Mr Arturo Iñiguez

(Tel.: 00 32 2 546 87 68 – email: )

  • Distribution of food products to the most deprived persons in the Union

Rapporteur: Mr Eugen Lucan (Various Interests – RO)

References: COM(2010) 486 final – 2008/0183 (COD) – CESE 70/2011

Key points:

The EESC considers that the scheme for food distribution to the most deprived persons in the Union clearly demonstrates the promotion of economic development of the food product market and European values (particularly the principle of solidarity) among the most disadvantaged social groups in the EU. Guaranteeing the supply of food to all EU citizens, especially deprived groups, must remain one of the fundamental objectives of the EU's agricultural policy. The EESC believes that only strong and lasting economic development of agricultural policy can support the most deprived social groups in the EU.

The EESC is in favour of maintaining the scheme for food distribution to the most deprived people in the EU and financing it on a permanent basis from the CAP (Common Agricultural Policy) budget.

Given the scale of the phenomenon of food poverty, which affects over 43 million European citizens, and the positive impact of the scheme over time on the most deprived social groups, the EESC believes that the scheme needs a permanent and stable budget.

The EESC calls on the competent authorities in the Member States, when determining groups of deprived people, to take account of databases of people who are not included in official statistics; this information is generally available in the statistics collated by NGOs and charities.

The EESC believes that NGOs and charities which provide food aid along with healthcare and social assistance should be given support to cover their administrative costs.

The EESC welcomes the Commission's decision to incorporate into the amended proposal the European Parliament's amendment proposing reimbursement of administrative and storage costs incurred by charities.

The EESC believes that the food scheme for deprived people should be run by the Union and fully funded by the CAP budget.

Contact: Ms Maarit Laurila

(Tel.: 00 32 2 546 97 39 – email: )

8. AGRICULTURE AND FISHERIES

  • Transitional technical measures from 1 January 2010 to 30 June 2011 / Conservation of fisheries resources

Rapporteur: Mr Gabriel Sarró Iparraguirre (Various Interests – ES)

References: COM(2010) 488 final – 2010/0255(COD) – CESE 69/2011

Key points:

Regulation (EC) No 1288/2009 will expire on 30 June 2011. Basic principles on technical measures would be considered by the new basic regulation for the ongoing reform of the common fisheries policy, for which the proposal is foreseen to be presented during the third quarter of 2011. Given the fact that there is no current legal act that could provide for permanent technical measures, and so as to ensure legal certainty and the conservation of marine resources, it is appropriate to extend the validity of the aforementioned regulation for another 18 months, until 1 January 2013.The EESC endorses the text of the proposal for a regulation. However, in relation to paragraph 1b)i) of the Sole Article, the EESC considers that the European Parliament and the Council should consider also extending the time limit for the Member States to 1 October 2011, to enable their relevant scientific institutions to present their scientific reports on fishing at depths greater than 600 metres in ICES zones VIII, IX and X.

Contact: Mr Arturo Iñiguez

(Tel.: 00 32 2 546 87 68 – email: )

  • Identification and registration of ovine and caprine animals (Codification)

Category C opinion

References: COM(2010) 635 final – 2010/0309(COD) – CESE 71/2011

Contact:Mr Jakob Andersen

(Tel.: 00 32 2 546 92 58 – email: )

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Registry CESE 2/2011 FR-EN/CVL/nm