Summary of Opinions Adopted - 520Th Plenary Session October

European Economic and Social Committee

EESC-2016-05087-00-02-TCD-TRA (FR/EN) 1/27

Brussels, 18 November 2016

EESC-2016-05087-00-02-TCD-TRA (FR/EN) 1/31

Contents:

1.FUNDAMENTAL RIGHTS

2.ECONOMIC GOVERNANCE / TAXATION

3.INTERNAL MARKET

4.ENVIRONMENT, AGRICULTURE AND FISHERIES

5.CONSUMERS/SOCIAL AFFAIRS/MIGRATION

6.ENERGY

7.INDUSTRY/INNOVATION

8.TRANSPORT

9.EXTERNAL RELATIONS

The plenary session of 19 and 20 October 2016 was attended by Carlos Moedas, member of the European Commission responsible for research, science and innovation.

The following opinions were adopted:

1.FUNDAMENTAL RIGHTS

• European control mechanism on the rule of law and fundamental rights (own-initiative opinion)

Rapporteur:José Antonio MORENO DÍAZ (Workers - ES)

Co-rapporteur:Ákos TOPOLÁNSZKY (Various Interests - HU)

ReferenceEESC-2016-01275-00-01-AC-TRA

Key points:

The EESC

• is alarmed by the populist and authoritarian drift that is spreading across Europe, and by the risk this poses to democracy and fundamental rights. The EU is a union of common values (Article 2 TEU), but developments have shown that the European Union lacks adequate instruments to safeguard these values.

• encourages the Commission to defend the EU's values in all Member States, using the existing 2014 framework to the fullest extent and recommends the adoption of a Council decision reinforcing the framework.
• believes that all Member States should be assessed on a regular basis, in order to verify compliance with the EU's fundamental values to avoid break down of mutual trust.
• considers it vital to create a legally binding European mechanism, a framework actively involving the Commission, the Parliament and the Council and in which the EESC plays an important role representing civil society. This mechanism will complement the Commission's framework and the Council's intergovernmental dialogue.
• supports the EP idea of an European Union Pact on democracy, the rule of law and fundamental rights (DRF). The EESC should be included in this pact, enabling a civil society debate at the EESC and have a role in the proposed DRF semester. The mechanism should be based on indicators, taking into account that fundamental economic, social and cultural rights are "indivisible" from civil and political rights.
• might contribute by fact-finding missions in cooperation with local civil society, setting up a permanent study group, organising hearings, drafting opinions and reports, organising an annual forum to review the situation of democracy, the rule of law and fundamental rights, and drawing up proposals and recommendations.

Contact:June Bedaton

(Tel.: 003225468134 – email: )

2.ECONOMIC GOVERNANCE / TAXATION

• Report on Competition Policy 2015

Rapporteur:Juan MENDOZA CASTRO (Workers- ES)

ReferenceCOM(2016) 393 final

EESC-2016-04505-AC-TRA

Key points:

The EESC

• welcomes the 2015 Report and considers it fundamental to have a competition policy that ensures a level playing field in all sectors,
• considers that imports based on unfair competition constitute a danger to European businesses and that anti-dumping measures are essential to save jobs and protect the economy,
• shares the concerns of SMEs, trade unions and EU employers' associations over the possibility that China may be granted market economy status,
• believes that the EU faces significant challenges relating to the cost of energy, greater interconnection of networks and leadership in implementing the Paris Agreement,
• reiterates that the exposure of taxpayers to the cost of bailing out the banks should be reduced, and highlights the need for competition to be promoted by reducing tax induced distortions resulting from misalignment of the 28tax systems.

Contact:Jean-Pierre Faure

(Tel.: 003225469615 – email: )

• Access to anti-money-laundering information by tax authorities

Rapporteur:Petru Sorin DANDEA (Workers - RO)

Reference:COM(2016) 452 final – 2016/0209 (CNS)

EESC-2016-04584-00-00-AC-TRA

Key points:

The EESC

• welcomes the efforts to combat tax evasion and money laundering.
• endorses the rules proposed for amending the Directive on Administrative Cooperation (DAC). Information on the beneficiaries of financial transactions is to be included in the categories of information to be exchanged between Member State tax administrations, which will enhance their administrative capacity.
• calls on the Member States to ensure that their tax administrations have the human, financial and logistical resources needed to successfully implement the new rules.
• Since the amendment of the DAC Directive can only be fully implemented if the proposal for a directive amending the Fourth Anti-Money Laundering Directive (4AMLD) is also approved, the EESC recommends that the Member States and the European Parliament approve the Commission's proposed legislative package in its entirety.

Contact:Gerald Klec

(Tel.: 003225469909 – email: )

• A performance-based EU budget and its focus on real results: The key to sound financial management (own-initiative opinion)

Rapporteur:Petr ZAHRADNÍK (Employers - CZ)

References: EESC-2016-00760-00-00-AC-TRA

Key points:

• There needs to be a thorough analysis and evaluation of where the funds of the EU Budget are spent, how they are spent, how the performance of the funds thus spent is evaluated and how the results achieved are communicated.
• A prerequisite for boosting the EU budget's performance is the establishment of clearly defined priority objectives for the benefit of EU citizens, corresponding aggregated indicators and a robust reporting system.
• Some options could be, for example, ex-ante conditionalities, financial instruments, or flexibility and the capacity to cope with unexpected challenges.
• Not only must EU budget expenditure comply with the rules of legality and regularity, but there must also be a targeted and systematic focus on the results and performance the budget delivers in addressing the EU's priority areas.
• Any discussion of a performance-based EU budget is also a discussion of EU political priorities.

Having said this, the EESC furthermore

• takes the view that a performance culture is not acquired in a single step, but through a process of development.
• supports further, better and closer integration and linkage of the Europe 2020 strategy and the 2014-2020 multiannual financial framework (MFF).
• recommends encouraging Member States to ensure that their partnership agreements and operational programmes include a comparable set of quantifiable results that can be subsequently evaluated.
• views the forthcoming mid-term revision of the 2014-2020 multiannual financial framework as an opportunity for greater deployment of a performance and results-oriented approach, which should then be fully evident in the shape of the MFF starting in 2021.

Contact:Gerald Klec

(Tel.: 003225469909 – email: )

• Anti-Money Laundering Directive

Rapporteur:Javier DOZ ORRIT (Workers - ES)

References: COM(2016) 450 final – 2016/0208 (COD)

EESC-2016-04274-00-01-AC-TRA

Key points:

The EESC

• welcomes in principle the measures included in the proposed amendment to the Anti Money Laundering Directive (AMLD) and agrees that its transposition is urgent.

• calls on the EU and the Member States to play a pioneering role in the international bodies and forums that are seeking to combat money laundering and the serious crime associated with it.

• is aware of the effort that adapting to the directive demands of businesses and obliged entities, as well of the supervisory authorities and proposes that the impact of applying these measures be assessed.

• is concerned that a number of factors may seriously limit the practical effectiveness of the fourth and fifth AMLD.

• criticises that the list of high-risk third countries, published on 14 July 2016, does not include many of the countries or jurisdictions which – on the basis of credible evidence – are believed to be acting as tax havens for money laundering, or any of the 21 territories mentioned in the Panama Papers.

• proposes that either a new list of high-risk third countries be drawn up, or the scope of the measures under Article 18a of 5AMLD be broadened.

• considers creating public national registers of the beneficial owners of bank accounts, businesses, trusts and transactions, and access to them by obliged entities, to be a priority.

• believes that all obligations laid down in the 5AMLD should be extended to all territories or jurisdictions whose sovereignty resides with the Member States.

• feels that he fight against money laundering should be linked more closely with the efforts needed to combat tax fraud and avoidance, corruption and other connected crimes.

• underlines that the fight against terrorism and money laundering requires closer cooperation between the various intelligence and security services of the Member States, and between these services and Europol.

• considers that free trade and economic partnership agreements should include a chapter on measures to tackle tax fraud and avoidance, money laundering and terrorist financing.

suggests that the Commission should explore additional steps to protect the rights of citizens against illegal use or abuse of the information recorded by the competent authorities or obliged entities.

hopes that the new rules can come into effect quickly. A realistic timetable should be set out for the transposition and application of the legislation in the Member States and clear guidelines laid down.

Contact:Gerald Klec

(Tel.: 003225469909 – email: )

3.INTERNAL MARKET

• European standards for the 21st century

Rapporteur:Antonello PEZZINI (Employeurs – IT)

ReferenceCOM(2016) 358 final

EESC-2016-03406-00-00-AC-TRA

Key points:

The Committee

• considers that a new vision is imperative in order to establish a European Standardisation System (ESS) able to adapt to constantly changing international circumstances and deliver increasing benefits to businesses, consumers, workers and the environment alike
• welcomes the launch of the Joint Initiative on Standardisation (JIS), but is greatly concerned about the limited guidelines for implementation and related funding
• considers it a priority to develop a fully-fledged European standardisation culture starting from basic education up to policy-makers and negotiators of international agreements, by launching and supporting a vigorous European awareness-raising campaign.

Contact:Jean-Pierre Faure

(Tel.: 003225469615 – email: )

• Unjustified geo-blocking/Digital

Rapporteur:Joost VAN IERSEL (Employeurs - NL)

References: COM(2016) 289 final – 2016/0152 (COD)

EESC-2016-03623-00-00-AC-TRA

Key points:

In its Opinion, the EESC:

• considers the proposal from the Commission as a welcomed step further in the creation of a Digital Single Market,
• urges the Commission to put forward ambitious and well-defined proposals for an ambitious Digital Single Market in favour of consumers and companies,
• underlines that justified geo-blocking resulting from different Member States' industrial policies and diverging legislation is also damaging the development of SMEs and scale-ups operating in Europe,
• points that the EU should focus equally on the remaining obstacles in the Single Market that discourage or hamper traders from selling on-line and/or off-line across borders.

Contact:Luís Lobo

(Tel.: 003225469717 – email: )

• Parcel delivery

Rapporteur:Raymond HENCKS (Workers - LU)

References: COM(2016) 285 final – 2016/0149 (COD)

EESC-2016-04454-00-00-AC-TRA

Key points:

The EESC:

• recognises that it is now essential that the Commission takes further action to ensure that all e-retailers and consumers, and particularly individuals and SMEs in remote areas, can finally benefit from cross-border parcel delivery services that are accessible, high quality and affordable;
• fears that the proposed measures not be enough and do little to encourage the cross-border parcel delivery services concerned to charge reasonable tariffs;
• regrets that the Commission is shelving any more stringent measures until the end of 2018 as it waits to see whether the situation has improved by then;
• calls on the Commission to take the same approach it took to roaming charges in mobile communications, and, at the very least, make a final urgent appeal to all cross-border parcel delivery services to lower their tariffs, and announce now that, if that does not happen, it will intervene by means of a regulation and a cap on tariffs;
• has been calling for clarification of the concept of affordable services of general economic interest and for legislative measures to be introduced requiring Member States to define indicators to establish the affordability of these services.

Contact:Claudia Drewes-Wran

(Tel.: 003225468067 – email: )

• Review of the wholesale roaming market in the EU

Rapporteur:Raymond HENCKS (Workers - LU)

References: COM(2016) 399 final

EESC-2016-03429-00-00-AC-TRA

Key points:

The EESC supports the Commission's initiatives to achieve "roam-like-at-home" from 15 June 2017 as well as its efforts to eliminate the failures of the wholesale roaming market.

However, pre-emptive measures will be necessary to prevent operators from compensating for the drop in revenue resulting from the abolition of roaming charges by increasing domestic charges or by means of other improper practices. The EESC also expresses serious reservations about the new possibility given to operators to negotiate "innovative wholesale pricing schemes" outside the regulated prices (caps) that would not be directly linked to the actual volumes consumed. Commercial negotiations based on flat payments are likely to lead to cartels and abuses of dominant positions.

Finally, the EESC suggests that the provisions dealing with disputes should be fleshed out and national authorities should be asked to encourage the parties involved, where appropriate, to first resort to resolving disputes via an alternative dispute resolution procedure.

Contact:Luca Giuffrida

(Tel.: 003225469212 – email: )

4.ENVIRONMENT, AGRICULTURE AND FISHERIES

• A fairer agro-food supply chain

Rapporteur: Peter SCHMIDT (Workers – DE)

Reference:COM(2016) 32 final

EESC-2016-01870-00-00-AC-TRA

Key points:

In the opinion, the EESC highlights the fact that the weak position of the most vulnerable players in the food supply chain must be addressed by putting an end to unfair trading practices (UTPs) by food retailers (N.B. in the opinion the word "retailers" refers to the large-scale retail sector) and some transnational companies, which increase risk and uncertainty for all operators along the food supply chain and therefore generate unnecessary costs.

The EESC strongly supports the European Parliament's resolution of 7 June 2016[1] highlighting the need for framework legislation at EU level in order to tackle UTPs of food retailers and some transnational companies and to ensure that European farmers and consumers have the opportunity to benefit from fair selling and buying conditions. The EESC believes that due to the nature of UTPs it is both a requirement and a necessity to have EU legislation to prohibit them.

In particular, the EESC calls on the Commission and the Member States to take swift action to prevent UTPs by establishing an EU harmonised network of enforcement authorities with this aim, so as to create a level playing field within the single market.

The EESC also welcomes the creation of the EU-wide Supply Chain Initiative (SCI) and other national voluntary systems, but only as an addition to effective and robust enforcement mechanisms at Member State level. However, there is a need to ensure that all stakeholders (e.g. farmers and trade unions) can participate and that complaints can be lodged anonymously. It is also necessary to establish dissuasive penalties. In addition, such platforms should be able to react independently. The EESC also proposes the establishment of an Ombudsman with regulatory powers in pre-trial mediation.

The EESC calls for a ban on abusive practices, for example those listed in point 3.3 of the opinion. In particular, the EESC recommends that suppliers, such as farmers, be paid a price that is not below the cost of production. The EESC also calls for an effective ban on food retailers selling below cost price.

Finally, the EESC recommends that alternative business models that play a role in shortening the supply chain between producers of food and the end consumer be encouraged and supported.

Contact:Monica Guarinoni

(Tel.: 003225468127 – email: )

• Removing obstacles to sustainable aquaculture in Europe (Exploratory opinion at the request of the European Commission)

Rapporteur:Gabriel SARRÓ IPARRAGUIRRE (Various Interests– ES)

Reference:EESC-2016-03425-00-00-AC-TRA

Key points:

The EESC notes that the main cause of slow administrative procedures applicable to the practice of aquaculture is the complex implementation of EU environmental legislation, mainly the Water Framework Directive, the Marine Strategy Framework Directive and the rules on the Natura 2000 network by the public administrations of Member States and their regions. These obstacles are occurring mainly in public administration departments in Member States that were not involved in drawing up the multi-annual national strategic plans for aquaculture and, consequently, are not aware of them. The active involvement of these departments in implementing the strategic plans is therefore required.

Contact:Arturo Iniguez

(Tel.: 003225468768 – email:)

• Proposal for a Regulation of the European Parliament and of the Council defining characteristics for fishing vessels (recast)

Rapporteur:Gabriel SARRÓ IPARRAGUIRRE (Various Interests– ES)

Reference:COM(2016) 273 final - 2016/0145 (COD)

EESC-2016-04323-00-00-AC-TRA

Key points:

The EESC agrees with the current proposal for a Regulation of the European Parliament and of the Council defining characteristics for fishing vessels (recast), as it considers it necessary and appropriate.

Contact:Arturo Iniguez

(Tel.: 003225468768 – email:)

• Proposal for a regulation of the European Parliament and of the Council laying down management, conservation and control measures applicable in the Convention Area of the International Commission for the Conservation of Atlantic Tunas (ICCAT) and amending Council Regulations (EC) No 1936/2001, (EC) No 1984/2003 and (EC)
  No 520/2007

Rapporteur:Thomas McDONOGH (Employers – IE)

References: COM(2016) 401 final - 2016/0187 (COD)

EESC-2016-04324-00-00-AC-TRA

Key points:

The EESC welcomes the transposition into EU law of the measures adopted since 2008 by the International Commission for the Conservation of Atlantic Tunas (ICCAT). The Committee urges the European Commission to play a more assertive role in this and other regional fisheries management organisations (RFMOs).