This document is an excerpt from the EUR-Lex website
Document 52011SC1485
COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT
COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT
COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT
COMMISSION STAFF WORKING PAPER EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT /* SEC/2011/1485 final - CNS 2011/0410 */
1.
Problem definition
The Council Decision 2006/526/EC defines
the framework for cooperation between the parties in sectors other than fisheries,
for the period 2007-2013. This stipulates that assistance towards Greenland
should focus on areas such as (a) education and training; (b) mineral
resources; (c) energy; (d) tourism and culture; (e) research; (f) food safety.
The focal sector for cooperation defined under the current financial framework
is education and vocational training. The policy dialogue between
the parties is not limited to education and vocational training but also covers
the overall socio economic situation. Greenland is a country bigger in size than
Europe with 56,000 inhabitants spread over 18 towns none of which exceeds
16.000 inhabitants. Due to the geostrategic importance of Greenland both
as a partner of the EU and as a member of the Arctic Council it remains
important to extend the long lasting commitment to the partnership. Greenland is confronted with specific
economic and social structural problems: (a) high level of imports;
(b) exports are highly reliant on the fisheries sector; (c) the fiscal deficit
of the Government of Greenland that, without the grants from Denmark and the EU,
would exceed 30% of GDP annually. Besides the fact that the EU-Greenland partnership
expires at the end of 2013, the reason for reform of the current
partnership stems from the challenges that both Greenland and the EU face.
These include among others the emergence of global issues (e.g. increasing
impact of climate change on human activity and the environment, maritime
transport, research and innovation). The need to address the multifaceted new
challenges and opportunities requires that the Greenlandic administration
enhances skills and capacities in order for the country to be able to
define and implement policies and strategies. Currently Greenland is highly
dependent on Danish policy officers as well as on short term employees from
other Nordic countries. Finally the Greenlandic ICT (Information
and Communication Technology), including information systems, need further
improvement in order to provide timely and accurate data in relation with the
sector policies as well as with the macro economic developments.
2.
Analysis of subsidiarity
In a globalised environment, different
internal EU policies (climate change, environment, Arctic policy, energy,
migration, raw materials, innovation etc.) are increasingly becoming part of
the EU's external action, and in line with the EU 2020 agenda and the Treaty
for the Functioning of the European Union, a mutual reinforcement of internal
and external actions is needed. As an Arctic country Greenland is
furthermore among countries most exposed to climate change. The capacity to
deal with this challenge will have profound implications on its economic well
being. The EU should actively share its domestic experience in development of
measures and policies to assist Greenland with both adaptation and mitigation
aspects of climate change.
3.
Objectives of EU initiative
In the context of the new partnership,
dialogue between Greenland and the EU should be extended to other areas. Global
issues such as climate change and environment, maritime transport, research
and innovation, require global responses, where the geostrategic position
of Greenland should be noted and where cooperation between the parties should
be considered in the interest of the EU. The structural weaknesses, with which
Greenland is confronted, require an increased commitment from the national
authorities to formulate and implement the needed policies. Those policies
should lead to structural changes and measurable impacts, permitting diversification
of the economy and a transition to a long term sustainable society. The EU
should assist Greenland in the formulation of the relevant policies
with the provision of expertise along with a more targeted dialogue covering
the areas of cooperation agreed upon by the parties (e.g. education, natural
resources, including raw materials, Arctic issues, etc.).
4.
Policy options
Option 0: 'Zero option' – no financial
instrument for and EU/Greenland partnership. Option 1: Maintaining the status quo in
the EU/Greenland partnership The 2007-2013 EU/Greenland partnership aims
to be a comprehensive partnership, answering the need agreed between the
parties to broaden and strengthen future relations between the EU and Greenland
taking into account the importance of fisheries and the structural development
problems in Greenland. Option 2: Maintain the current structure
of the EU/Greenland partnership but amending it to better respond to an
enhanced partnership The scope of the partnership is extended
to cover inter alia the following topics: Arctic issues, climate change,
environment and biodiversity. The dialogue should also be extended to integrate
food security issues, energy storage and the needs of research and innovation
capacity. The broadening of cooperation to new areas such as
climate change, safe and sustainable energy (including energy, research and
innovation), as well as a strengthened cooperation on natural resources,
including raw materials, are of immense importance for the EU industries and
for the sustainable development of the Greenlandic economy. These areas are of
growing importance to the EU and should deserve full attention from both
parties. As to the scope of financing, consideration should be given to
the possibility of providing technical expertise, which would facilitate
capacity building and allow for the Greenlandic administration to acquire
skills where needed the most. Option 3: New instrument This option and its impacts were not
analysed in detail.
5.
Assessment of impacts
(a) Option 0 – 'Zero option' Economic, social and environmental
impact Within the current partnership the
cancellation of support for the Greenland Education Programme will have a
negative impact on the progress made. Without the assistance to the Greenland
Education Programme the impact of better education will be insufficient in the
sustainable development of Greenland, with negative influence on other issues
such as environmental awareness. (b) Option 1: 'Status quo' or 'no
change' Economic, social and environmental
impact The likely continuation of the support to
education and vocational training during the period 2014-2020, is expected to
produce continued results and contribute to the development of the overall
economy of Greenland. Taking into account the diversification
needs of the Greenlandic economy, education will have a positive impact on the
economy through the provision of a labour force that will have the adequate
skills for confronting the challenges inherent to the transition from a
primarily fisheries driven, to a more diversified economy. More and better
education is expected to have a medium- to long-term positive impact on the
Greenlandic society. Improved knowledge and awareness of issues such as health
issues and environment is likely to increase following improved competencies
development and better education. (c) Option 2 – Enhanced EU/Greenland
Partnership Economic, social and environmental
impact: The extension of the partnership between
the EU and Greenland to cover other areas of interest, such as 'climate change
research', 'environment', biodiversity', 'Arctic issues', 'natural resources,
including raw materials', will facilitate the preparedness of the Greenland to
formulate and implement the required in these areas and will lead to a positive
economic impact with better skilled labour force and a more diversified
economy.
6.
Comparison of options
The table below summarizes the pros and
cons of different options. || Impacts || Economic Impact || Social Impact || Environmental Impact || Greater Coherence || Efficiency gains Options || 0. - No Instrument || || || || || 1. - No change from today's situation || 0 || 0 || 0 || 0 || 0 2. - A revised Instrument || + || + || + || + || + 3. - A new Instrument or Instruments || N/A || N/A || N/A || N/A || N/A On the basis of the above analysis, option 2 is the preferred option. An enhanced partnership would
recognise the geostrategic importance of Greenland in the Arctic, the changes
in its economy and the environment resulting from climate change, and will
honour the commitment of maintaining a long lasting relationship between the EU
and this country.
7.
Monitoring and evaluation
In the context of the existing partnership,
a set of indicators have been agreed between the parties that will permit the
follow up of the overall developments in the Greenlandic economy and society. In
regards to the new and enhanced EU/Greenland partnership an indicative list of
indicators is foreseen in chapter 7.1 of the Impact Assessment report.
Additional indicators might prove necessary to better account for the new areas
of cooperation. This matter will be further discussed with the Greenlandic
authorities.