[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 30.10.2002

COM(2002) 590 final

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

THE COMMISSION'S LEGISLATIVE AND WORK PROGRAMME FOR 2003

COMMUNICATION FROM THE COMMISSIONTO THE EUROPEAN PARLIAMENT, THE COUNCIL,THE ECONOMIC AND SOCIAL COMMITTEE ANDTHE COMMITTEE OF THE REGIONS

THE COMMISSION'S LEGISLATIVE AND WORK PROGRAMME FOR 2003

TABLE OF CONTENTS

Introduction 3

1. Outlook and challenges for 2003 4

2. Commission priorities for 2003 6

2.1. An enlarged Europe 6

2.2. Stability and security 9

2.3. Sustainable and inclusive economy 11

3. Extended impact assessment of selected proposals 16

4. Dialogue with the European Parliament and the Council: stocktaking and prospects 17

5. Conclusions 18

Annexes

1. Assessment of progress in 2002

2. 2003 proposals that will undergo an extended impact assessment before adoption

3. Commission contribution to the Council’s annual operating programme (Proposals awaiting action at the Council)

4. List of legislative proposals and non-legislative acts in the Legislative and Work Programme for 2003

INTRODUCTION

The Commission’s Legislative and Work Programme for 2003 (the “Work Programme”) is the first to be prepared following extensive preparatory dialogue with the European Parliament and the Council as part of the Commission’s strategic planning and programming cycle. It marks the beginning of a more integrated and coherent political planning process for the European Union.

In February 2002, the Commission adopted its Annual Policy Strategy for 2003 [1], in which it identified three political priorities for next year, with the corresponding objectives, key initiatives and resources:

- an enlarged Europe

- stability and security, and

- a sustainable and inclusive economy

The Commission presented its Annual Policy Strategy to the European Parliament and to the Council in March. For the first time, a structured dialogue took place with both institutions in the months that followed on the priorities and key initiatives for 2003. Both institutions reacted positively to the political priorities identified by the Commission for 2003.

In August, the Commission adopted a stocktaking document on the follow-up to its Annual Policy Strategy for 2003 [2], in which it took account of the views expressed by the European Parliament and the Council.

The Annual Policy Strategy, the structured dialogue with the other institutions and the resultant stocktaking document provide the foundations on which this Work Programme is built.

Based on the key initiatives identified in the Annual Policy Strategy and the stocktaking document, this Communication highlights the key initiatives that the Commission intends to take in 2003 for the three political priorities. Where these involve the adoption of legislative proposals or non-legislative acts, they can be found in the first list attached to the Work Programme.

The second list contains other proposals and acts likely to be presented by the Commission in 2003, insofar as this can be foreseen at the end of October 2002 when the Work Programme is adopted.

In addition, the Commission will continue to provide the other EU institutions with regular monthly updates of its operational planning in the form of a 3-month rolling programme and reports on proposals that have been adopted. In the interests of transparency, the Commission also makes this information available to the public on the Commission’s Internet homepage[3].

Two other new features of this Work Programme should also be highlighted:

- In June 2002, the Commission adopted a first set of initiatives to meet the commitment of the White Paper on European Governance to contribute towards a better functioning of the European Institutions. As part of this first “Better Regulation” package, which was endorsed at the Seville European Council, the Commission introduced a new mechanism to analyse the impact of major proposals in order to improve the quality of EU legislation by rendering systematic the examination of the principles of subsidiarity and proportionality and by analysing the economic, social and environmental benefits in the context of the sustainable development strategy. This impact assessment mechanism will apply in full from 2004 onwards, but a number of the proposals contained in the Work Programme for 2003 have already been selected to undergo this impact assessment.

- The Seville European Council agreed to introduce better annual and multiannual programming of Council activities. In December, the General Affairs and External Relations Council will adopt the Council’s first annual operating programme (for 2003), on a proposal from the incoming Greek and Italian Presidencies and taking into account the results of the dialogue with the Commission. The Work Programme provides the Commission’s input to the Council’s annual operating programme, both in terms of priorities and key initiatives and by way of flagging proposals already adopted by the Commission that await decision by the Council in 2003 (see section 4) .

Finally, the Commission presents this Work Programme several weeks before the European Council is due to take crucial decisions about the future shape of an enlarged European Union at its meeting in Copenhagen. Implementation of the Work Programme may be affected by the nature of those decisions as well as by whether the budgetary authority grants the Commission sufficient resources to recruit 500 non-permanent staff for essential preparatory work on enlargement. In the light of these considerations, it may be necessary for the Commission to make adjustments to its Work Programme in the course of 2003 to reflect the outcome of these decisions and any other unforeseeable developments of significance on the international scene.

1. Outlook and challenges for 2003

The scope of the fifth enlargement in the history of the European Community goes much further than in the previous ones. First of all, it has a historical element that cannot be compared with any of the other enlargements:

- This enlargement represents a fundamental political change for this continent, as it will result in its unification, an event that could not have been imagined even 20 years ago. This has far-reaching consequences, and its significance may be compared to the Treaty of Rome.

- Previous enlargements never concerned more than three countries at once. This enlargement is of a totally different magnitude. Managing a Europe of (up to) 25 countries and 451 million citizens poses a major challenge. Europe started with 6 countries. Now the European Union will extend to the size of the continent. The challenge will be to manage the ensuing diversity of cultures, administrative traditions and economic structures. 2003 is a critical year for this transition to an enlarged Europe.

Political outlook

The EU faces three major challenges in 2003:

- Preparing for enlargement

The imminent enlargement of the European Union will have a considerable influence on the outlook for 2003. This will involve a number of formal steps in the accession process per se , adaptation of the financial perspectives for 2004-2006, and intensive preparatory work within the Commission and the other EU institutions. The EU will have to review its major policies to see whether they need adjusting in the context of the new Europe. It will also have to consolidate certain policies, for example speeding up progress to adopt the measures needed for the area of freedom, security and justice and focusing on management of the EU’s external borders, and streamlining of economic policy coordination.

- Defining the future of Europe

2003 will also be a year of preparing the ground for the new Europe. The EU will have to adapt its institutions through the work of the Convention and the next Inter-Governmental Conference and re-engage citizens in the European project.

- Relations with the enlarged EU’s neighbours

The new Europe will have to re-assess its relations with its neighbours in the Wider Europe context, following on from the discussions begun at the Gymnich ministerial gathering in August 2002. The relaunched Euro-Mediterranean partnership must lead to a community founded on liberalisation in the free flow of goods and services, on closer exchange between the people and cultures around the Mediterranean and on security and the respect of fundamental rights. A similar approach must be adopted with non-candidate countries of Europe, such as Russia, Ukraine and Moldova. To conclude, some of the Western Balkan countries will soon become the external border of the European Union. At the same time, the Stabilisation and Association process opens perspectives for membership.

Economic prospects for the EU in 2003

Recent economic developments point to lower growth than envisaged in the Commission 2002 Spring Forecasts. The recovery needs more time than expected to gain strength. Uncertainties have also increased, partly due to increased tensions in the Middle East and Iraq, and the associated developments in oil prices. Other risks are related to the impact on household and investors’ confidence of the recent correction in stock market prices, the volatility in financial markets and possible contagion effects from the economic crises in certain Latin American countries.

For the euro area, the recovery started in the first quarter of 2002, but there has been no further built-up in momentum over the summer. Domestic demand and notably private investment have remained sluggish. Exports have also weakened. Indicators continue to point to a certain acceleration in growth in the second half of 2002 but GDP growth is unlikely to exceed 1 %. This delayed recovery suggests that the growth rate for 2003 will also have to be scaled down and that the previous forecast of an average growth rate of close to 3% in 2003 now appears to be out of reach.

All in all, there is now more uncertainty as to when, and how strong, the pick-up in EU growth will be. At the same time, it should be stressed that all the conditions for this pick-up remain in place. Inflation is decelerating, monetary conditions are accommodating and interest rates are relatively low. The adjustment in inventories has probably taken place. There are no major economic imbalances. And, finally, business and consumer survey indicators remain close to their historical averages.

This economic situation makes it all the more important to complete the ongoing structural reforms and to consolidate progress towards the EU’s strategic goals of developing a sustainable and inclusive, knowledge-based economy.

2. Commission priorities for 2003

Against this background, the Commission confirms the political priorities that it identified in its Annual Policy Strategy for 2003:

- an enlarged Europe

- stability and security, and

- a sustainable and inclusive economy

The Commission invites the other EU institutions to take account of these priorities, key initiatives, legislative proposals and non-legislative acts in their own programming for 2003. The Commission confirms its readiness to cooperate with the other EU institutions to deliver these priorities through joint programming.

2.1. An enlarged Europe

Making a success of enlargement will require an unprecedented effort. As the executive arm of the Union and as the guardian of its Treaties, the Commission will be in the front line working to pursue the policies of the Union within an enlarged framework. To this end, the Commission, like the other Institutions, has to continue to improve its management and its working methods, in particular by concentrating resources more on its essential activities.

The Commission will have to be in a position to ensure that the acquis communautaire is implemented in an enlarged Europe from day one of accession, and will need adequate resources for this task.

a) Objectives:

In the light of discussions with the institutions, and within the framework set by the Annual Policy Strategy for 2003, the Commission identifies the following key objectives for 2003:

- to ensure adequate support, close monitoring and regular reporting so that the future Member States assume fully all the responsibilities arising from accession, and also to ensure a smooth phasing-in of EU policies in the new Member States and the normal functioning of the internal market after accession;

- to guarantee that the Commission will fully meet its obligations from the very first day of accession, from the point of view of applying Community legislation, policies and programmes and in terms of the measures needed to receive the new Member States;

- to conduct an in-depth rethinking of Community policies that reflects the qualitative dimension of the most significant enlargement in the history of European integration.

b) Key Initiatives – an enlarged Europe

1. Monitor the process up to signature and ratification of the Accession Treaty to enable the candidate countries with which negotiations were concluded to actually achieve membership in 2004 and participate in the European Parliament elections as members:

- Closely monitor and regularly report to the Council on implementation of commitments made by acceding countries in the accession negotiations, including a comprehensive monitoring report;

- Assess the implementation of commitments necessary for the programming of structural funds for the new Member States on accession;

- Prepare the safeguard mechanisms necessary to forestall any setbacks to the functioning of the internal market or in the area of justice and home affairs during the first two years after enlargement.

- Monitor progress with the implementation of the necessary reforms to satisfy the Copenhagen economic criteria by 2004;

- Support reconciliation between the two Cypriot communities following achievement of a political agreement;

- Support Member States and candidate countries in providing information to their citizens on the consequences of enlargement.

2. Prepare and implement a revised accession strategy for Bulgaria and Romania, and strengthen the pre-accession strategy for Turkey:

- Prepare and implement the Road Maps for Bulgaria and Romania for the period up to accession;

- Prepare and implement actions, including increased financial assistance, related to the strengthening of the pre-accession strategy for Turkey.

3. Provide guidance and financial support to assist the future Member States to strengthen their administrative and judicial capacities:

- Reinforcement of the administrative and judicial capacities of the candidate countries e.g. institution-building actions, specific projects;

- Measures to ensure the Community standards for food safety;

- Mobilise the necessary investments in the candidate countries so that they can participate fully in the Trans-European networks and assure the strong functioning of the internal market.

4. Prepare the application of Community legislation, programmes and surveillance procedures and the open method of co-ordination in the new Member States, including by:

- Incorporating the review of candidate countries’ economic, employment and environmental policies in the Spring synthesis report of 2003 and follow up progress;

- Associate candidate countries to the Community research Programmes;

- Participation of Candidate countries in the e- Europe Action Plan.

- Take measures to ensure common standards for nuclear safety within the European Union;

- Preparation of Structural Fund programmes and of Cohesion Fund projects with the view of launching them right from the start of 2004.

5. Prepare the concrete application of the Common Agriculture Policy to the future Member States, notably through:

- Technical adaptations of farming legislation;

- Preparation of rural development programmes with a view to launching them right from the start of 2004.

6. Progressively set in place the structures needed to extend the Community's anti-fraud arrangements to the candidate countries, namely through:

- Ensuring that the candidate countries take the actions necessary to enable them to manage the customs union;

- Strengthening appropriate structures for fraud avoidance and control and extending interchanges and training on the protection of the financial interests of the European Union.

7. Intensify and complete administrative and linguistic preparations for enlargement by:

- Completing the publication of the Treaties;

- Proceeding with the consolidation of legislation and start codification in the existing languages. Publish the acquis communautaire in the new official languages;

- Ensuring the administrative preparations for selection, recruitment and integration of officials into the Commission from the new Member States.

8. Continue implementation of the administrative reform of the Commission to ensure effective modernisation of Commission by 2004.

9. Continue to review the main Community policies, their procedures and their impact to provide a basis for future proposals on the main prospects for the development of policies in the enlarged Union and the future financial framework after 2006.

10. Contribute to the work of the Convention on the future institutional framework for an enlarged European Union.

The corresponding legislative proposals and non-legislative acts appear in the first part of the list attached to the Work Programme, identified by the key “100”.

2.2. Stability and security

The Commission will assume its role by helping to extend the European area of prosperity, peace and stability. This is based on respect for fundamental rights and freedoms. The fight against crime, in all its forms, including terrorism, will remain in the forefront.

A particular effort will also be made to develop effective external border management and to co-ordinate the various bodies responsible for border surveillance, including preparing the candidate countries, which will have to manage the largest part of the European Union's land frontiers. Effective action against illegal immigration should be balanced by genuine Community immigration and asylum policies, which recognise legal immigration as a source of cultural richness and economic force whilst offering guarantees to those in need of international protection.

Outside the EU, partnerships with neighbouring countries in Europe will be transformed into a central factor for stability and security.

Finally, the Commission will play its part in strengthening the Common Foreign and Security Policy and making it more cohesive and effective. Stability in the Balkans and a new drive to achieve peace in the Middle East will remain the two main priority objectives in 2003. However, attention should also focus on the fragile security situation in certain parts of Asia, and the Commission - as part of the international community - should contribute to furthering peace and stability in this region.

a) Objectives

In the light of discussions with the institutions, and within the framework set by the Annual Policy Strategy for 2003, the Commission identifies the following key objectives for 2003:

- to make substantial progress, as provided for by the European Council in Laeken, and further defined in Seville, towards the establishment of a European area of freedom, security and justice.

- to improve transport safety and security as well as security of information and communication networks and in civil protection;

- to work for peace and stability at the external borders of the enlarged European Union and beyond, including gradual association to the EU where relevant;

- to respond effectively to crises when peace is challenged;

- to develop mechanisms to increase contact and understanding between the peoples and cultures of Europe and of other parts of the world.

b) Key Initiatives – Stability and security

1. Legislative and non-legislative measures towards an integrated European system of border management including measures to fight illegal immigration, in accordance with the programme agreed by the Seville European Council:

- Legislative measures to revise and consolidate the rules set out in the Common Manual on external borders;

- Measures to enhance the common visa policy and in particular to establish a common visa identification system;

- Examination of the legal, institutional and budgetary implications concerning burden-sharing for the management of external borders and for developing joint training of border services;

- Establishment of a rapid alert system of illegal immigration and trafficking in human beings.

2. Propose measures to tackle the financing of terrorism and to follow up the forthcoming Communication on the fight against corruption, to facilitate effective implementation of criminal sentences in the Union and to contribute to combating and preventing crime and terrorism, whilst ensuring that these measures are properly balanced with measures to protect individual rights:

- Framework Decision on the freezing and confiscation of funds from entities controlled by physical persons involved in the funding of terrorist activities to ensure that legitimate business activities are not used to finance terrorism;

- Framework Decision fixing common standards regarding procedural safeguards for persons accused in criminal proceedings throughout the EU.

3. Make further proposals for measures to consolidate common European immigration and asylum policies, including increased funding for the European Refugee Fund and greater co-operation with third countries in the field of migration:

- Establishment of a Community Action Programme aimed at encouraging the integration of third country nationals who are legally resident in the Union (to be seen in conjunction with 2.3, b), 7, 4th bullet);

- establishment of an instrument relating to a ‘one-stop shop’ for the processing of applications for asylum in the Member States.

4. Reinforce the application of the anti-money laundering directives, implement the measures on payment systems announced in the Fraud Prevention Action Plan and enhance co-operation between Finance Intelligence Units:

- Evaluation of the existing Third Pillar measures in the fight against financial crime, and examination of the need for an instrument to create an EU-wide system to combat money laundering involving large-scale cash payments.

5. Follow up the Green Paper on the protection of the financial interests of the European Union and the establishment of a European Public Prosecutor, and present the main conclusions to the European Convention in view of the next Intergovernmental Conference

6. Ensure effective implementation of the security provisions in the Commission

7. Improve all Community aspects of transport, energy, public health and information and communications network security:

- Establishment of common EU standards for the safety of nuclear power plants, implementation of the environmental provisions of the Euratom Treaty, as well as enhancing civil protection through legislative proposals and other initiatives and ensuring the safe transport, treatment and disposal of nuclear waste;

- Proposal for a Regulation establishing a European Centre for disease control;

- Implementation of a Cyber security task force.

8. Make a significant contribution towards resolving the conflict in the Middle East and develop the Mediterranean partnership, notably by taking forward the Barcelona process, focusing on promoting political and economic reform, economic co-operation and investments in the region and continuing to improve the effectiveness of MEDA

9. Develop association and stabilisation process in the Balkans and further co-operation with Russia and the Newly Independent States:

- Negotiation of a Stabilisation and Association Agreement with Albania.

10. Provide financial and political support to the process of reconstruction led by the representative government in Afghanistan, and support peace and stability in central Asia

11. Reinforce the rapid reaction mechanism and make an active contribution to the Common Foreign Security Policy and to the civilian dimension of the Common Security and Defence Policy

12. Adopt the Erasmus World Programme to enhance quality in higher education and to promote inter-cultural understanding through co-operation with third countries (2004-2008), and also implement the TEMPUS Programme in the MEDA countries

The corresponding legislative proposals and non-legislative acts appear in the first part of the list attached to the Work Programme, identified by the key “200”.

2.3. Sustainable and inclusive economy

2003 must see firm support for resurgence in the economy and in employment, based on joint efforts on the economic, social and environmental fronts. To this end, the measures provided for in the EU’s sustainable development strategy and the Lisbon Strategy will have to be adopted and put into practice. The main challenge will be to facilitate progress towards a knowledge-based economy. In addition, the EU will have to ensure that the internal market for services – financial, energy, transport, telecommunications etc. – is fully operational, and maximise the effect of introducing the euro for consumers and businesses.

Externally, the Commission's objective is to get to grips with globalisation and to ensure that the benefits are shared as widely as possible between countries and within countries. The multilateral trade negotiations that began in Doha will enter a crucial phase, not least with the WTO Ministerial in Cancun in September 2003, and we shall have to ensure that the Kyoto commitments are properly implemented. Finally, we shall have to work towards achieving a better global partnership, notably by delivering on commitments made in Monterrey and Johannesburg in the areas of trade, finance and globalisation. Increased and more effective external assistance, concrete measures to address the unsustainable debt burdens of many developing countries, enhanced regional integration including regional trade agreements, a specific attention to Africa and the least developed countries in general as well as improved conflict prevention will be essential elements in a successful fight against poverty.

a) Objectives

In the light of discussions with the institutions, and within the framework set by the Annual Policy Strategy for 2003, the Commission identifies the following key objectives for 2003:

- to maintain stability-oriented macro-economic policies and accelerate implementation of the Lisbon Strategy including the promotion of a knowledge-based society, the strengthening of the internal market for services, the removal of fiscal distortions and the promotion of employment through the implementation of the revised European employment strategy;

- to promote sustainable development and strengthen social and economic cohesion balancing environmental, social and economic concerns through implementation of the EU’s sustainable development strategy;

- to promote a genuine immigration policy which reflects the fact that successful integration of immigrants in society is both a matter of social cohesion and a prerequisite for economic efficiency. In effect, fulfilling Lisbon economic goals of economic growth and increased employment by 2010 and beyond will notably depend on the shape and dynamics of immigration;

- to ensure that the positive effects of globalisation are shared evenly between and within countries; to work for a fairer distribution of resources between the North and the South respecting their cultural diversity and environmental heritage.

b) Key Initiatives – Sustainable and inclusive economy

1. Provide the Commission’s Spring Report for the European Council, assessing progress against the ambitious decade-long programme of economic, social and environmental change launched by the European Council in Lisbon in March 2000. This will analyse progress made, particularly in the Member States, against the concrete targets established by the Lisbon and subsequent European Councils and identify priorities for the next 12 months in order to keep the Lisbon Strategy on track. It will also include follow-up to the Johannesburg World Summit on Sustainable Development.

- Economic policies

2. Measures to complete the internal market for services, through measures to eliminate barriers to the provision and take-up of services from which both business and consumers can benefit, and reach final agreement on the most important measures to meet the 2003 deadline for an integrated European securities market and the 2005 deadline for an integrated Financial Services market:

- Communication on the main achievements of the internal market since 1992 particularly focusing on the benefits to European citizens on the occasion of the 10th anniversary of the internal market;

- Implementation of the new Framework Programme ‘Intelligent energy for Europe;

- Adoption of the remaining actions in the Financial Services Action Plan;

- Implementation and management of the new Regulatory Framework for electronic communication Services (including spectrum management);

- Green paper launching a debate on our role in ensuring the wide availability of high quality services of general interest for all citizens, and in particular on the possibility to consolidate and specify principles on services of general interest in a framework directive.

3. Measures to enhance competitive conditions in the internal market, in particular through modernisation of competition policy instruments including state aid and tax measures:

- Implementation of new measures to ensure modernisation and effective enforcement of anti-trust, merger and state aid rules, in particular regarding further liberalisation of the postal and energy sectors;

- Green Paper on entrepreneurship to stimulate discussion of Europe’s competitiveness;

- Proposal for a Directive on fair trade;

- Measures to ensure co-ordination of national fiscal systems;

- Legislative and non-legislative measures that will adapt the VAT system to the modern economy, in particular to e-commerce.

4. Initiatives to improve economic policy co-ordination, in particular budgetary policies, to ensure that Member States achieve and sustain sound budgetary positions and to secure the smooth functioning of Economic and Monetary Union:

- Reinforcement of existing coordination mechanisms and enhancement of the efficiency of policy co-ordination through a better and more clearly defined policy coordination cycle with increased focus on implementation (streamlining);

- Further improve implementation of the Stability and Growth Pact, inter alia by developing the surveillance of budgetary policies and encouraging commitments by Member States on common standards to strengthen the efficiency and credibility of the Pact;

- Implementation of the new streamlined economic policy-co-ordination cycle.

5. Initiatives to promote the knowledge-based society in particular through the development and implementation of an integrated strategy for a European knowledge area and eEurope:

- Implementation of the joint Commission/Council work programme on objectives for education and training systems in Europe;

- Implementation of the ‘Information society for all’ notably through e- Europe 2005;

- Measures to develop good practices in life-long learning and e-learning;

- Proposals for focused action to increase research investment in Europe to reach the objective of 3% of GDP set by the Barcelona Summit;

- As a major contribution to the European Research Area, launching of the sixth framework programme for research and technological development, including proposals for further guidelines on bioethical principles;

- Adoption of a new action programme on e-learning that will integrate new technologies in education and training.

- Other internal policies

6. Measures to ensure sustainability and coherence in and between a number of key internal and external policies, notably agriculture (CAP mid-term review), fisheries, environment, transport, energy, migration, cohesion policy and Structural Funds (third report on cohesion policy), food safety, communicable diseases and public finance in the context of monetary union as well as effective follow-up to the Göteborg Conclusions; improve implementation of Community-wide environmental legislation; measures to create the necessary environment for consumer confidence in cross-border transactions and to pursue the continuing expansion of trans-European transport and energy networks:

- Further to the mid-term review of the CAP, the Commission will table proposals for review of other sectors. This concerns wine, sugar, olive oil, tobacco, cotton and possibly other products;

- Legislative proposals and measures to implement the Fisheries reform such as setting up the first Regional Advisory Councils, establishment of a Joint Community Inspection Structure for Fisheries, establishment of multi-annual management plans for some major fisheries stocks and proposals for the necessary implementing measures for the application of the new fleet policy;

- Third Cohesion Report at the end of 2003 including, as appropriate legislative proposals for the Structural Funds after 2006;

- Implementation of the Regulatory Framework for Food Safety and proposal for a regulation on nutrition, functional and health claims made on food;

- Preparation and implementation of the 7 thematic strategies, in particular on the sustainable use of natural resources and on the urban environment, within the 6th Environmental Action Programme;

- Proposals for integrated product policy, a new chemicals strategy and finalising risk reduction measures required under existing legislation for dangerous substances;

- Preparation and implementation of an action plan on clean technologies for growth and development;

- Effective application of the new impact assessment tool to achieve better lawmaking and progress towards sustainable development;

- Implement the new European Union Solidarity Fund to help victims of major disasters;

- Cost-related measures in support of sustainable development particularly in relation to environment, energy and transport policies (in the light of reactions to a methodology paper in the case of transport).

7. Implement the Social Policy Agenda, combining all Community instruments (open method of co-ordination, legislation, social dialogue, and support via the Structural Funds) so as to help achieve the strategic objectives set at the Lisbon European Council:

- Adoption of a Communication on the mid-term review of the Social Policy Agenda;

- Effective implementation of the open method of co-ordination by the adoption of a revamped employment package, a second joint report on social inclusion and the launch of this working method in the field of pensions;

- Ensure appropriate follow-up of ongoing social partners’ consultation according to article 138 of the Treaty on data protection of workers, social aspects of corporate restructuring and portability of supplementary pensions;

- Elaboration of a Communication on the interaction between immigration, employment and social policy, at European level, bearing in mind the situation of the national labour markets (to be seen in conjunction with 2.2, b), 3, 1st bullet).

- External dimension

8. Implement the Cotonou Agreement and Asia-Latin America programmes with a view to effectively reducing poverty, with special emphasis on reaching the Millennium Development Goals, in particular those relating to health and education, and by reducing the debt burden in the context of the HIPC initiative:

- Finalisation of the ACP partnership agreements and implementation of programmes. Implementation of programme on communicable diseases;

- Negotiation of Economic Partnership Agreements with ACP countries.

9. Intensify our dialogue with Africa, by supporting the African Union in its efforts to bring governance, peaceful co-existence, and sustainable development to Africa, and by making a success of the Lisbon EU-Africa Summit in April 2003

10. Intensify the Doha trade round negotiations, by ensuring a successful WTO ministerial in Cancun in September 2003, so as to ensure respect of the end-2004 deadline for the conclusion of the negotiations.

11. In the external relations context, continue bilateral negotiations with Mercosur, the African, Caribbean and Pacific States, the Gulf Co-operation Council and the Mediterranean countries. Review EU relations with South East Asia.

12. Ensure coherence between the European Union’s internal policies and the external relations and cooperation policies in a way that ensures the right balance between our economic interests and the best developmental and environmental results, while facilitating trade with and amongst our partner countries.

The corresponding legislative proposals and non-legislative acts appear in the first part of the list attached to the Work Programme, identified by the key “300”.

3. Extended impact assessment of selected proposals

In June 2002, the Commission established a new integrated procedure for impact assessment to improve the quality and coherence of the policy development process[4]. This procedure is designed to assess the impact of proposed Commission actions, by rendering systematic the examination of the principles of subsidiarity and proportionality in operational terms and by analysing the balance between the economic, social and environmental components of sustainable development. As agreed at the European Council in Seville, the Commission would start implementation of impact assessment already in 2003.

The new procedure integrates, reinforces, streamlines and replaces all existing separate impact assessments previously used for Commission proposals. It will be applied to all major proposals adopted by the Commission in the Annual Policy Strategy and/or the Work Programme, be they regulatory proposals or other proposals that have an economic, social and environmental impact. Although the approach is new, however, the implementation of the new procedure builds on existing practices and knowledge. The procedure will be implemented gradually and become fully operational in the 2004 strategic planning and programming cycle which will start with the adoption of the Commission’s 2004 Annual Policy Strategy in February 2003.

With a view to an early application of this instrument, the Commission has decided to select a certain number of proposals from the 2003 Work Programme for an extended impact assessment. These proposals are listed in Annex 2. As it has not been possible to establish a preliminary impact assessments for the first phase, the Commission has based its selection on the importance of the proposals selected in relation to the political priorities, on the feasibility for services to perform the assessment in the short-term using existing research and work already undertaken, and on the need to maintain a balance between different types of proposals and the involvement of a broad range of services. The number of impact assessments has been limited to what can be delivered during this first phase in the implementation. It is understood that the impact assessments will be carried out with the flexibility and pragmatism required, and, as appropriate, will take into account studies or analytical work already undertaken. It is also understood that the selection of the extended impact assessments listed in Annex 2 does not release the Commission services from the normal preparatory steps for legislative proposals, which include the analysis of their impacts, to be done in a proportionate fashion.

In future, a short preliminary impact assessment will be established early in the policy formulation process as a condition for inclusion of a legislative or policy proposal in the Annual Policy Strategy and, at the latest, before inclusion in the Work Programme. These preliminary impact assessments will enable the Commission to decide which proposals should undergo an extended impact assessment.

The Commission will select proposals for extended impact assessment, based among other criteria on whether the proposal will result in substantial economic, environmental and/or social impacts on one or more of the key sectors, on whether it will have a significant impact on major interested parties, and on whether it represents a major policy reform.

The purpose of the extended impact assessment is to carry out an in-depth analysis of the potential impacts as well as to consult with interested parties and relevant experts according to the Commission’s minimum standards for consultation.

4. DIALOGUE WITH THE EUROPEAN PARLIAMENT AND THE COUNCIL: STOCKTAKING AND PROSPECTS

The Commission’s Legislative and Work Programme represents an important contribution to the work of other EU institutions in 2003. In January this year, the Commission and the European Parliament agreed a timetable for discussion of the Annual Policy Strategy and the Legislative and Work Programme. This process has been respected. The Commission has discussed the political priorities and developed the key initiatives through a dialogue with both the European Parliament and the Council. Both institutions welcomed the priorities proposed by the Commission and took note of the key initiatives. The Commission, for its part, has reflected their observations in its Legislative and Work Programme.

The Commission therefore invites the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions to take account of the priorities, key initiatives and specific proposals presented in this Legislative and Work Programme when planning their work for 2003.

As far as the Council is concerned, as agreed at the Seville European Council, it will for the first time adopt an annual operating programme in December, taking into account the results of the dialogue with the Commission.

This Legislative and Work Programme represents the Commission’s contribution to the Council’s annual operating programme for 2003.

The Commission therefore invites the Council to take into account the priorities and key initiatives presented in this Work Programme and to plan discussion of the specific new proposals and non-legislative acts shown in the first list attached to this Work Programme.

When preparing its annual operating programme, the Commission also invites the Council to ensure discussion and adoption of major proposals that the Commission has already presented. These are listed in Annex 3 of this Work Programme. The Commission also looks forward in the course of 2003 to working with the Institutions and the Presidencies to elaborate the first multi-annual strategic programme of the European Council.

It should be recalled that the High Level Technical Working Group on Interinstitutional Co-operation is currently examining Parliament’s request to be involved in the annual Council programming can be taken into account in the context of discussions on the Interinstitutional Agreement following the Seville European Council. The Commission fully supports the establishment of an agreement between the three institutions, which would help to develop a more integrated and coherent political planning process for the European Union.

5. Conclusions

2003 will be a crucial year for the European Union. The overarching task in 2003 will be the definition of the architecture of the enlarged Europe. In this respect, the Commission will assume its responsibilities, notably by contributing actively to the work of the Convention. Beyond this, the major challenges for the development of the Community policies are clear:

- The European Union has to complete its own preparations for enlargement, the candidate countries have to be ready to assume their responsibilities, and the EU has to ensure that its policies are well adapted to the needs of an enlarged Europe.

- Stability and security will remain major preoccupations for the European Union, not least because of the continued threat of terrorist activity and uncertainty about developments in the Middle East and other regions. The European Union has to play its part by ensuring peace and stability for its own citizens and working with the international community to achieve this for other regions.

- The European Union will have to consolidate progress towards its strategic goal of developing a sustainable and inclusive, knowledge-based economy, meeting the ambitious targets which it has set itself and working to achieve the goals set by the international community, notably at Johannesburg, Monterrey and Doha.

The Commission is determined to play its full part in meeting these challenges, but they will, more than ever before, require coherent and integrated implementation of agreed priorities by all EU institutions.

ANNEX 1

Assessment of progress in 2002

Presentation of next year’s Work Programme also provides an opportunity to make a preliminary political assessment of how far the Commission has implemented the current year’s Work Programme. The Commission’s definitive assessment of the results achieved and of the use of resources will be presented in the synthesis report and annual activity reports of the Directors-General and Heads of Service for 2002 (to be adopted in the second quarter of 2003). These annual activity reports increase the transparency and accountability of the Commission’s activities and have been welcomed by the other EU institutions.

Before assessing implementation of the 2002 Work Programme, it is worth recalling the Commission’s action in the aftermath of the devastating floods that beset several European countries in the summer of 2002 . The Commission responded immediately. The Commission President and the Commissioners concerned were quickly on the spot to see the extent of the damage for themselves. Within weeks, the Commission devised a comprehensive action plan and presented proposals to create a new emergency instrument, the European Union Solidarity Fund, to assist people in affected regions of the Member States and countries involved in accession negotiations in the event of a major disaster.

Overall, the Commission made significant progress in delivering the key initiatives announced in its Work Programme for 2002. Here are some of the highlights:

Enlargement

The Commission intensified its efforts so that the key decisions on which candidate countries should be ready to join the EU in 2004 can be reached. The regular reports on the preparation of candidate countries, and the Commission’s strategy paper form the basis for these decisions.

On 9 October, the Commission adopted the annual enlargement strategy and regular reports, and submitted recommendations to the Council on which candidate countries could be ready to join the EU in 2004.

The Commission continued to deliver technical assistance through the PHARE, SAPARD and ISPA Programmes and proposed opening a wide range of Community programmes to candidate countries. Actions aimed at reinforcing the protection of the Communities’ financial interests in the candidate countries were also stepped up.

It also assessed the impact of enlargement on Commission activities and human resources, including the need to ensure that the necessary preparatory work is undertaken to ensure that the “acquis communautaire” is applied from the first day of the enlarged EU.

Safety and security

Following the tragic events of 11 September 2001, the Commission continued to be active in all areas of the European Council action plan to combat terrorism.

This was especially the case in the fields of justice and home affairs, money-laundering, external relations, security of information and communication networks, and civil protection. In a broader safety and security context, the Commission presented several proposals to reinforce health security, transport and energy safety, including aviation insurance, oil stocks, safety rules and standards for different transport modes. It will shortly adopt a proposal on safety in tunnels as well as a major nuclear energy package covering such issues as safety standards, nuclear waste and decommissioning of nuclear plants.

In the fight against crime and terrorism, the Commission submitted legislative proposals to reinforce Europol’s counter-terrorism coordination activities and to combat cybercrime, as well as a Communication on the improving democratic control of Europol. A report on actions to combat terrorism financing will be presented before the end of the year.

The Commission presented a major Communication and action plan on integrated management of the EU’s external borders, endorsed by the Seville European Council as a priority for the EU in 2003. All of the proposals on legal immigration required by the Treaty are now on the Council table. In addition the Commission presented a series of proposals for combating illegal migration, as well as measures to improve the security of visas and residence permits for third country nationals (the latter have already been adopted by the Council).

In April 2002, the Commission presented its first annual report on the status of the Stabilisation and Association process for the Western Balkans. While indicating that there are still a number of common challenges for the region the report recognises that the Stabilisation and Association process has become a major driving force for political, democratic and economic reforms and is already beginning to produce the desired results in terms of stability and progress of reforms.

Introduction of the euro, further economic and financial integration

The introduction of euro notes and coins was an outstanding success, which reflected a great deal of preparatory work by the various EU institutions and national authorities involved.

The Commission worked closely with the Council, the European Parliament and increasingly with the Social Partners to implement the Lisbon Strategy. In the run-up to the Barcelona European Council, the Commission signalled its concern over a “delivery gap”, where Council decisions were not keeping pace with the deadlines established in Lisbon. Since the Barcelona European Council, significant progress has been made in areas such as the Financial Services Action Plan, research and eEurope, but progress in other areas such as completion of the Single Sky, achievement of the internal energy market and revision of the trans-European networks has been slow, despite their having been identified as priorities at both the Barcelona and Seville European Councils.

In October, the Commission adopted a new proposal for a directive on take-over bids, which maintains the scope and principles of its earlier 1996 proposal, but also takes account of Parliament’s amendments and the recommendations of the high-level group of experts.

The Commission delivered recommendations relating to monitoring of the Stability and Growth Pact. It presented proposals to streamline economic and employment policy coordination as well as to establish common standards for economic policy coordination.

The Commission proposed a new Consumer Policy Strategy and continued work on consumer protection, with the aim of ensuring that the single market and the euro bring maximum benefits to consumers.

As regards investment in research, the Commission presented a first communication identifying the main areas where European, national and regional policies should be mobilised in a consistent way to approach 3% of GDP by 2010, as requested by the Barcelona European Council.

The Sixth Framework Programme for Research and Technological Development was adopted by the European Parliament and the Council; its main objective is to help structure the European Research Area. In October, the Commission adopted a communication on new perspectives for the European Research Area, which takes stock of the progress already made and sets out new perspectives and actions to be taken.

The Commission did not, as announced in its 2002 Work Programme, present proposals to revise the directive on remedies (public procurement). This is due to the fact that the basic public procurement directives proposed by the Commission in May 2000 are unlikely to be finally adopted before mid-2003. The Commission therefore intends to propose amendments to the remedies directive in 2004.

Sustainable development

The Commission started implementing the EU’s sustainable development strategy and contributed to major international meetings on sustainable development.

The Commission contributed actively in the World Summit on Sustainable Development, helping to ensure that the EU played a leading role in building a Global Deal for sustainable development. The Commission was broadly satisfied with the agreements reached in Johannesburg, even if not all of the major EU initiatives, such as the one on renewable energy could be incorporated fully into the outcome. The Commission worked with the Danish Presidency and other Member States to successfully launch the EU’s water and energy initiatives at the Summit.

The Commission presented its mid-term review of the Common Agricultural Policy as well as proposals to reform the Common Fisheries Policy, both of which seek to ensure greater sustainability in economic, social and environmental terms.

In line with the Lisbon Strategy and as part of the follow-up to the Social Agenda launched at the Nice European Council, the Commission presented a range of proposals, including an evaluation of the European Employment Strategy and a Communication on the social responsibility of enterprises. The Commission also consulted the social partners on the social aspects of corporate restructuring. It also proposed a Community strategy on health and safety at work.

In January 2002, the Commission adopted a communication establishing an action plan for life sciences and biotechnology, an important new area of the knowledge-based economy.

The independent European Food Safety Authority (EFSA) was launched, and the Management Board selected. Further progress was made on the programme of legislation, contained in the White Paper on Food Safety, notably the adoption of the Regulation on general food law and establishing the EFSA, directives on food supplements and on undesirable substances in feed, and the Regulation on animal by-products. The Commission proposed further legislation as set out in the White Paper, and will additionally adopt a proposal for a Regulation on food and feed controls before the end of 2002. The Commission will also, taking account of the experience of the outbreak of foot and mouth disease in 2001, propose a Directive on the control of foot and mouth disease before the end of 2002.

The new Public Health Programme (2003-2008) was adopted, and the Commission has begun the process of its implementation.

In the field of environment, the Commission adopted a draft Framework Directive on Environmental Liability, a Communication on Environmental Agreements and three Communications that will lead to Thematic Strategies on Soil, Pesticides and the Marine Environment. Another major achievement during 2002 was the Ratification of the Kyoto Protocol by the EU. The Commission will adopt the Communication on integrated product policy in 2003. With regard to the Communication towards a Strategy on the Sustainable Use of Resources, a decision was taken to carry forward this priority to 2003 since detailed exploration of the policy area revealed a more complex scope than could previously have been foreseen.

In the fields of energy and transport, the Commission proposed a multiannual programme on “Intelligent Energy for Europe”. It continued to develop an integrated transport approach, based on the Transport White Paper. As a follow-up to the Göteborg European Council, the Commission intends to consult widely on a methodology on charging for transport infrastructure, with a view to presenting legislative proposals to modernise the Community legal framework in 2003.

New European Governance

The Commission presented a series of proposals to meet the commitments made in the White Paper on European Governance to make the European institutions work better and to enhance the openness and efficiency of the EU’s working methods. It also contributed actively to the debate on the Future of Europe.

These proposals included an action plan on “Better Regulation”, minimum standards for consultation and a new impact assessment mechanism for EU legislation. EU institutions are currently negotiating an inter-institutional agreement to implement these proposals for better regulation. By the end of 2002, the Commission will adopt a report on the implementation of its governance commitments and a second package of Better Regulation proposals.

The Commission set out its vision of the European project in a major contribution to the work of the Convention, and participated actively in this work. The Commission continued to implement the internal reforms launched in the Reform White Paper of March 2000. In particular, 2002 was the first year in which the Commission implemented a full strategic planning and programming cycle. It also presented its global package on staff reforms to the Council, participated in the negotiations that led to agreement on the EU’s new Financial Regulation, and continued to implement activity based management throughout the Commission.

The Commission also took practical steps to improve governance in a range of policy areas, including eEurope, recognition of professional qualifications and competition policy, including, in particular, a White Paper on merger policy.

The Commission did not, as announced in its 2002 Work Programme, present formal proposals on options for informing national parliaments better about Community legislative proposals. This matter is currently under discussion in the Convention working party on national parliaments, where the Commission has announced its willingness to transmit to national parliaments all legislative and other proposals that it presents.

Mediterranean

The Commission’s main objective was to reinvigorate the Euro-Mediterranean partnership. This was achieved, notably through the decisions taken at the Valencia Ministerial Conference and a number of sectoral ministerial conferences.

These endorsed a broad range of Commission proposals, covering such matters as the development of a Euro-Mediterranean free trade area, the creation of a Euro-Mediterranean Foundation to promote dialogue between cultures, enhanced cooperation on justice and home affairs (including migration) and the environment.

The Commission proposed stimulating private sector investment in the Mediterranean region. The Barcelona European Council decided, as a first step, to set up a Euro-Mediterranean Investment Facility within the European Investment Bank.

In 2002, Euro-Mediterranean association agreements were concluded with Algeria and Lebanon, and negotiations continued with Syria. The association agreement with Jordan entered into force and the interim association agreement with Lebanon will enter into force before end 2002.

In October 2002, the Commission adopted an action plan for the conservation and sustainable exploitation of fisheries resources in the Mediterranean, as part of the Commission’s proposals for the reform of the Common Fisheries Policy.

Ass announced in the 2002 Work Programme, the Commission proposed the extension of the TEMPUS Programme to the MEDA countries.

Development cooperation

The Commission placed a particular emphasis on the role of health and education policies in combating poverty.

It proposed new sectoral and thematic policy frameworks on health, HIV/AIDS and population as well as on education in the context of the fight against poverty. The Commission also presented proposals for budget lines on reproductive health and on the programme for action on communicable diseases, the latter programme being launched in 2002. The Commission became a board member of the global fund for HIV/AIDS, malaria and tuberculosis. The Commission contributed actively to the results of the G8 education task force.

The Commission’s Communication in preparation for the Monterrey Conference on Financing for Development helped the EU to reach agreement at the Barcelona European Council that Member States would increase overseas development to an average of 0.39% of GDP by 2006. It also resulted in commitments to make EU development assistance more effective by reinforcing the coordination of policies and harmonisation of procedures before 2004. Member States also agreed to continue their discussions in view of further untying of aid. In September, the Commission adopted a communication on trade and development, showing how the EU will follow up its development commitments taken in Doha, Monterrey and Johannesburg.

Acting on a Commission recommendation, the Council agreed negotiating directives for Economic Partnership Agreements with Cotonou Agreement countries and regions, and the negotiations began on schedule in September 2002.

ANNEX 2

2003 proposals that will undergo an extended impact assessment before their adoption

Proposal or act (reference n° in the Work Programme list) | Responsible service(s) |

Enlargement priority |

Proposal for a Decision replacing Decision 1692/96/EC on the Community guidelines for the development of the transeuropean network in the field of transport (TEN-Guidelines). (2003/TREN/35) | TREN |

Stability and security priority |

Industrial security Regulation (2003/ADMIN/8) | ADMIN |

Communication of the Commission on the State of play and development of the Euro-Med Facility (2003/ECFIN+/23) | ECFIN |

Integrated strategy on prevention, preparedness and response to natural, man-made and other risks (2003/ENV/77) | ENV with ISG |

Communication on the integration of third country nationals (2003/JAI/172) | JAI |

Communication concerning the processing of applications for asylum outside the EU (2003/JAI/143) | JAI |

Draft framework decision fixing common standards regarding procedural safeguards for persons accused in criminal proceedings throughout the EU (2003/JAI/158) | JAI |

Sustainable and inclusive economy priority |

Review of the European Employment Strategy (2003/EMPL/11) | EMPL |

Recasting of Gender Equality Directives (2003/EMPL/34) | EMPL |

Integration of environment into standardisation (2003/ENV/22) | ENV/ENTR |

Directive of the European Parliament and the Council concerning Groundwater Protection (2003/ENV/39) | ENV |

Directive on infrastructure for spatial information in Europe (2003/ENV+/70) | ENV |

Legislation on the Kyoto flexible instruments Joint Implementation (JI) and Clean Development Mechanism (CDM) (2003/ENV/75) | ENV |

Directive of the European Parliament and the Council on batteries and accumulators (2000/088) | ENV |

Communication on financing of NATURA 2000 (2003/ENV+/40) | ENV, AGRI, REGIO, BUDG |

Proposal for a Council Regulation establishing multi-annual management plans for fish stocks outside safe biological limits (2003/FISH/7) | FISH |

Council Reg. establishing a Joint Community Inspection Structure for fisheries (2003/FISH/9) | FISH |

Communication on the future of European audiovisual policy (2003/EAC/11) | EAC with ISG |

Proposal to amend the design directive (2003/ MARKT/16) | MARKT |

Proposal for a directive on reinsurance (2003/ MARKT/21) | MARKT |

Communication on the Risk Capital Action Plan (2003/ MARKT/+28) | MARKT |

Proposal for a directive on services in the internal market (2003/ MARKT/23) | MARKT |

Proposal for a Council Directive amending Directive 77/388/EEC as regards the arrangements applicable to public authorities and subventions (2003/TAXUD/10) | TAXUD |

Review of the Tobacco Regime (2003/AGRI/19) | AGRI with ISG |

Review of the Sugar Regime (2003/AGRI/9) | AGRI with ISG |

Proposal for a Framework Directive of the European Parliament and of the Council on fair commercial practices (2003/SANCO/53) | SANCO |

Proposal for a Regulation of the European Parliament and of the Council relating to cadmium in fertilizers (2003/ENTR/40) | ENTR with ISG |

Communication: Basic orientations for the sustainability of European tourism (2003/ENTR/46) | ENTR with ISG |

Proposal for a Directive on the reduction of the level of pollutant emissions from two and three-wheel motor vehicles (2003/ENTR/61) | ENTR |

Proposal for a Directive amending Directive 70/220/EEC on measures to be taken against air pollution by emissions from motor vehicles (2003/ENTR/63) | ENTR |

Proposal for a European Parliament and Council Regulation (EC) on medicinal products for paediatric use (2003/ENTR/59) | ENTR |

Commission proposal for a directive on human tissue engineering and tissue-engineered products (2003/ENTR/37) | ENTR |

Review of the Directives 75/106/EEC and 80/232/EEC (Pre-packaging - ranges of sizes) (2003/ENTR/33) | ENTR |

Communication on the transition from analogue broadcasting to digital broadcasting: Digital switchover in Europe (2003/INFSO/13) | INFSO |

Communication on Intelligent Vehicles and Road Safety (2003/INFSO/14) | INFSO |

Directive ensuring that postal operators do not operate reserved and non reserved activities in the same legal entity (2003/COMP/27) | COMP |

European Initiative for Democracy and Human Rights Regulations 975/976/1999 (2003/RELEX/30) | RELEX |

Directive on access to international rail passenger transport market (2003/TREN/3) | TREN with ISG |

Regulations revising the third air transport package (2002/TREN/28) | TREN |

Revision of the regulation on computerised reservation systems (2002/TREN/29) | TREN |

Regulation on the publication of reports on the quality of passenger air transport services (2003/TREN/43) | TREN |

Regulations revising the third air transport package (2002/TREN/28) | TREN |

Negotiating mandate for a new international agreement on tropical forests (2003/DEV/7) | DEV |

- ISG = Inter-departmental Steering Group In the Work Programme list, these proposals are flagged with the remark “extended impact assessment” under political motivation.

ANNEX 3

Previously adopted Commission proposals awaiting action in other EU institutions

General Affairs and External Relations

- Agreement on the Commission’s proposals for staff reform (2002/0100/CNS)

Economic and Financial Affairs

- Adopt proposals presented in the context of the Financial Services Action Plan, in particular on market abuse (2001/0118/COD), prospectuses (2001/0117/COD), pension funds (2000/0260/COD), conglomerates (2001/0095/COD) and the takeover bids directive (2002/0240/COD)

- Tax package (1998/0193/CNS, 1998/0087/CNS)

- Energy taxation (1997/0111/CNS)

Justice and Home Affairs

Common asylum policy:

- Proposal for a Council Directive on minimum standards for the qualification and status of third country nationals and stateless persons as refugees or as persons who otherwise need international protection (2001/0207/CNS)

- Proposal for a Council Regulation establishing the criteria and mechanisms for determining the Member State responsible for examining an asylum application lodged in one of the Member States by a third country national (2001/0182/CNS)

- Proposal for a Council Directive laying down minimum standards on the reception of applicants for asylum in Member States (2001/0091/CNS)

- Proposal for a Council Directive on minimum standards on procedures in Member States for granting and withdrawing refugee status (2000/0238/CNS)

Common immigration policy and fight against illegal immigration:

- Proposal for a Council Directive on the conditions of entry and residence of third country nationals for the purposes of studies, vocational training or voluntary service (2002/0242/CNS)

- Proposal for a Council Directive on the short-term residence permit issued to victims of action to facilitate illegal immigration or trafficking in human beings who cooperate with the competent authorities (2001/0043/CNS)

- Proposal for a Council Directive on the conditions of entry and residence of third-country nationals for the purpose of paid employment and self-employed economic activities (2001/0154/CNS)

- Proposal for a Council Directive concerning the status of third country nationals who are long term residents (2001/0074/CNS)

- Proposal for a Council Directive on the right to family reunification (1999/0258/CNS)

Internal and external borders, common visa policy:

- Proposal for a Council Directive relating to the conditions in which third-country nationals shall have the freedom to travel in the territory of the Member States for periods not exceeding three months, introducing a specific travel authorisation and determining the conditions of entry and movement for periods not exceeding six months (2001/0155/CNS)

EU citizenship:

- Proposal for a Directive of the European Parliament and of the Council on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States (2001/0111/COD)

A genuine area of justice in civil law matters:

- Proposal for a Council Regulation concerning jurisdiction and the recognition and enforcement of judgements in matrimonial matters and in matters of parental responsibility repealing Regulation (EC) No 1347/2000 and amending Regulation (EC) No 44/2001 in matters relating to maintenance (2002/0110/CNS)

- Proposal for a Council Regulation creating a European enforcement order for uncontested claims (2002/0090/CNS)

- Proposal for a Council Directive to improve access to justice in cross-border disputes by establishing minimum common rules relating to legal aid and other financial aspects of civil proceedings (2002/0020/CNS)

- Proposal for a Council Directive on compensation to crime victims (COM(2002)562)

- Proposal for a Council Act establishing the Convention on jurisdiction and the recognition and enforcement of judgements in civil and commercial matters in the Member States of the European Union (1997/0339/CNS)

Fight against crime and terrorism and a genuine area of justice in criminal matters:

- Proposal for a Council Decision on the financing of certain activities carried out by Europol in connection with cooperation in the fight against terrorism (2002/0196/CNS)

- Proposal for a Council Framework Decision on attacks against information systems (2002/0086/CNS)

- Proposal for a Council Framework Decision on combating racism and xenophobia (2001/0270/CNS)

- Proposal for a Council Framework Decision laying down minimum provisions on the constituent elements of criminal acts and penalties in the field of illicit drug trafficking (2001/0114/CNS)

- Proposal for a Directive of the European Parliament and of the Council on the Protection of the Environment through Criminal Law (2001/0076/COD)

- Proposal for a Directive of the European Parliament and of the Council on the criminal-law protection of the Community’s financial interests (2001/0115/COD)

Employment, Social Policy, Health and Consumer Affairs

- Adoption of proposals to reform Regulation 1408/71 on the coordination of social security systems (1998/0230/COD, 2001/0137/COD)

- Adoption of the proposal for a Directive of the European Parliament and of the Council on working conditions for temporary workers (2002/0072/COD)

- Adoption of the proposal to establish a tripartite social summit for growth and employment (2002/0136/CNS)

- Adoption of the Directive of the European Parliament and of the Council on quality and safety standards for human cells and tissues (2002/0128/COD)

Competitiveness (Internal Market, Industry and Research)

- Public procurement package (2000/0115/COD, 2000/0117/COD, 2001/0179/COD)

- Adoption of the pharmaceutical reform package (2001/0252/COD, 2001/0253/COD, 2001/0254/COD)

- Agreement on the Community Patent before the European Council in Spring 2003 (2000/0177/CNS)

- Communication on taxation of vehicles (COM(2002)431)

Transport, Telecommunications and Energy

- Electricity and gas market opening proposals (2001/0077/COD)

- Energy and transport trans-European networks (2001/0311/COD, 2001/0226/COD, 2001/0229/COD)

- Agreement on the Single European Sky package, including provision of services (2001/0235/COD), air space (2001/0236/COD), interoperability of air traffic management (2001/0237/COD), framework for the creation of a Single European Sky (2001/0060/COD)

- Agreement on the 2nd railway package, safety and licensing (2002/0022/COD), interoperability of railways system (2002/0023/COD), railways agency (2002/0024/COD), railways development (2002/0025/COD)

- Agreement on rights for air transport passengers (2001/0305/COD)

- Multiannual programme for action in the field of energy: Intelligent Energy for Europe Programme, 2003-2006 (2002/0082/COD)

- Package to reinforce the security of oil and gas supplies in the framework of the energy internal market (2002/0219/COD, 2002/0220/COD, 2002/0221/CNS and COM(2002)488, 1 to 5)

- Regulation on the promotion of combined transport and short sea shipping (“Marco Polo”) (2002/0038/COD)

- Directive on market access to port services (2001/0047/COD)

Agriculture and Fisheries

- Adoption of proposals to be presented by the Commission later this year relating to the mid-term review of the Common Agricultural Policy

- Adoption of proposals on the reform of the Common Fisheries Policy (COM(2002)180, COM(2002)185, COM(2002)186, COM(2002)187, COM(2002)190 and 2002/0114/CNS)*

- Adoption of the Regulations of the European Parliament and of the Council on genetically-modified organisms in food and feed (2001/0173/COD) and on the traceability and labelling of genetically-modified organisms (2001/0180/COD)

- Adoption of the proposal for a Directive of the European Parliament of the Council on the monitoring of zoonoses and zoonotic agents (2001/0176/COD), and of the Regulation of the European Parliament and of the Council on the control of salmonella and other food-borne zoonotic agents (2001/0177/COD)

Environment

- Adoption of the Directive on environmental liability (2002/0021/COD)*

- Adoption of the biosafety Regulation (2002/0046/COD)*

- Adoption of the Prior Informed Consent Regulation (2002/0026/ACC, 2002/0030/ACC )*

- Adoption of the Regulation on forest and environmental interactions (2002/0164/COD)*

- Adoption of the Regulation on the transboundary movement of genetically modified organisms (2002/0046/COD) and on the traceability and labelling of GMOs (…)

- Adoption of the packaging directive (2001/0291/COD)

Education, Youth and Culture

- Adoption of the Decision of the European Parliament and the Council establishing a programme for the enhancement of quality in higher education and the promotion of intercultural understanding through cooperation with third countries "Erasmus World" (2002/0165/COD)

(* = if not already adopted in 2002)

ANNEX 4

COMMISSION LEGISLATIVE AND WORK PROGRAMME FOR 2003

List of legislative proposals and non-legislative acts

1: Legislative proposals and non-legislative acts corresponding to the political priorities for 2003

2: Other legislative proposals and non-legislative acts likely to be brought forward in 2003

Explanatory Notes

1. The Work Programme presents three political priorities for 2003, each of which has a number of key initiatives. Where these key initiatives involve the adoption of legislative proposals or non-legislative acts (e.g. Communications or White Papers), these will be found in the first list .

2. The second list contains other proposals and acts that the Commission could envisage being adopted in 2003 when this Work Programme was finalised. It includes proposals and acts carried over from previous years.

3. The lists only exist in the original language version (part English, part French).

4. The Commission updates its planning each month and transmits a “3-month rolling programme” to the other EU institutions to help them organise their work[5].

5. The first list is arranged by political priority and then by policy area (e.g. “Agriculture” or “Internal Market”), while the second list is arranged by policy area. The lists provide the following information:

6. reference number: e.g. 2003/ADMIN/1 for new proposals. Carryovers from previous years appear as e.g. 2002/ADMIN/1 or 2001/1

7. Commission department(s) responsible

8. estimated date of adoption

9. whether legislative proposal or non-legislative act

10. provisional indication of the likely legal base and the corresponding inter-institutional procedure (e.g. co-decision)

11. whether mandatory or optional consultation of the Committee of the Regions (CoR) and/or the Economic and Social Committee (CES) is foreseen

12. brief description, political motivation, and an indication of whether the proposal will undergo an extended impact assessment

13. “political motivation sort code”, enabling proposals to be re-ordered according to the political priorities: enlargement (100), stability and security (200), sustainable and inclusive economy (300)

14. indication of whether the proposal has budgetary implications (i.e. involves operational expenditure) in 2003 and/or in later years, as well as whether this is currently foreseen in the financial programming; the corresponding budget line is also shown.

[1] SEC(2002)217 of 27 February 2002

[2] COM(2002)427 of 28 August 2002

[3] http://europa.eu.int/comm/index_en.htm

[4] COM(2002)276 of 5 June 2002

[5] In the interests of transparency, this is also made available to the public on the Commission’s Internet homepage http://europa.eu.int/comm/index_en.htm (“The Commission at your service”, “Organisation”, “3-month rolling programme”).

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS - THE COMMISSION'S LEGISLATIVE AND WORK PROGRAMME FOR 2003

TABLE OF CONTENTS

Annexes

1. Assessment of progress in 2002

2. 2003 proposals that will undergo an extended impact assessment before adoption

3. Commission contribution to the Council's annual operating programme (Proposals awaiting action at the Council)

4. List of legislative proposals and non-legislative acts in the Legislative and Work Programme for 2003

Introduction

The Commission's Legislative and Work Programme for 2003 (the "Work Programme") is the first to be prepared following extensive preparatory dialogue with the European Parliament and the Council as part of the Commission's strategic planning and programming cycle. It marks the beginning of a more integrated and coherent political planning process for the European Union.

In February 2002, the Commission adopted its Annual Policy Strategy for 2003 [1], in which it identified three political priorities for next year, with the corresponding objectives, key initiatives and resources:

[1] SEC(2002)217 of 27 February 2002

- an enlarged Europe

- stability and security, and

- a sustainable and inclusive economy

The Commission presented its Annual Policy Strategy to the European Parliament and to the Council in March. For the first time, a structured dialogue took place with both institutions in the months that followed on the priorities and key initiatives for 2003. Both institutions reacted positively to the political priorities identified by the Commission for 2003.

In August, the Commission adopted a stocktaking document on the follow-up to its Annual Policy Strategy for 2003 [2], in which it took account of the views expressed by the European Parliament and the Council.

[2] COM(2002)427 of 28 August 2002

The Annual Policy Strategy, the structured dialogue with the other institutions and the resultant stocktaking document provide the foundations on which this Work Programme is built.

Based on the key initiatives identified in the Annual Policy Strategy and the stocktaking document, this Communication highlights the key initiatives that the Commission intends to take in 2003 for the three political priorities. Where these involve the adoption of legislative proposals or non-legislative acts, they can be found in the first list attached to the Work Programme.

The second list contains other proposals and acts likely to be presented by the Commission in 2003, insofar as this can be foreseen at the end of October 2002 when the Work Programme is adopted.

In addition, the Commission will continue to provide the other EU institutions with regular monthly updates of its operational planning in the form of a 3-month rolling programme and reports on proposals that have been adopted. In the interests of transparency, the Commission also makes this information available to the public on the Commission's Internet homepage [3].

[3] http://europa.eu.int/comm/index_en.htm

Two other new features of this Work Programme should also be highlighted:

* In June 2002, the Commission adopted a first set of initiatives to meet the commitment of the White Paper on European Governance to contribute towards a better functioning of the European Institutions. As part of this first "Better Regulation" package, which was endorsed at the Seville European Council, the Commission introduced a new mechanism to analyse the impact of major proposals in order to improve the quality of EU legislation by rendering systematic the examination of the principles of subsidiarity and proportionality and by analysing the economic, social and environmental benefits in the context of the sustainable development strategy. This impact assessment mechanism will apply in full from 2004 onwards, but a number of the proposals contained in the Work Programme for 2003 have already been selected to undergo this impact assessment.

* The Seville European Council agreed to introduce better annual and multiannual programming of Council activities. In December, the General Affairs and External Relations Council will adopt the Council's first annual operating programme (for 2003), on a proposal from the incoming Greek and Italian Presidencies and taking into account the results of the dialogue with the Commission. The Work Programme provides the Commission's input to the Council's annual operating programme, both in terms of priorities and key initiatives and by way of flagging proposals already adopted by the Commission that await decision by the Council in 2003 (see section 4).

Finally, the Commission presents this Work Programme several weeks before the European Council is due to take crucial decisions about the future shape of an enlarged European Union at its meeting in Copenhagen. Implementation of the Work Programme may be affected by the nature of those decisions as well as by whether the budgetary authority grants the Commission sufficient resources to recruit 500 non-permanent staff for essential preparatory work on enlargement. In the light of these considerations, it may be necessary for the Commission to make adjustments to its Work Programme in the course of 2003 to reflect the outcome of these decisions and any other unforeseeable developments of significance on the international scene.

1. Outlook and challenges for 2003

The scope of the fifth enlargement in the history of the European Community goes much further than in the previous ones. First of all, it has a historical element that cannot be compared with any of the other enlargements:

* This enlargement represents a fundamental political change for this continent, as it will result in its unification, an event that could not have been imagined even 20 years ago. This has far-reaching consequences, and its significance may be compared to the Treaty of Rome.

* Previous enlargements never concerned more than three countries at once. This enlargement is of a totally different magnitude. Managing a Europe of (up to) 25 countries and 451 million citizens poses a major challenge. Europe started with 6 countries. Now the European Union will extend to the size of the continent. The challenge will be to manage the ensuing diversity of cultures, administrative traditions and economic structures. 2003 is a critical year for this transition to an enlarged Europe.

Political outlook

The EU faces three major challenges in 2003:

- Preparing for enlargement

The imminent enlargement of the European Union will have a considerable influence on the outlook for 2003. This will involve a number of formal steps in the accession process per se, adaptation of the financial perspectives for 2004-2006, and intensive preparatory work within the Commission and the other EU institutions. The EU will have to review its major policies to see whether they need adjusting in the context of the new Europe. It will also have to consolidate certain policies, for example speeding up progress to adopt the measures needed for the area of freedom, security and justice and focusing on management of the EU's external borders, and streamlining of economic policy coordination.

- Defining the future of Europe

2003 will also be a year of preparing the ground for the new Europe. The EU will have to adapt its institutions through the work of the Convention and the next Inter-Governmental Conference and re-engage citizens in the European project.

- Relations with the enlarged EU's neighbours

The new Europe will have to re-assess its relations with its neighbours in the Wider Europe context, following on from the discussions begun at the Gymnich ministerial gathering in August 2002. The relaunched Euro-Mediterranean partnership must lead to a community founded on liberalisation in the free flow of goods and services, on closer exchange between the people and cultures around the Mediterranean and on security and the respect of fundamental rights. A similar approach must be adopted with non-candidate countries of Europe, such as Russia, Ukraine and Moldova. To conclude, some of the Western Balkan countries will soon become the external border of the European Union. At the same time, the Stabilisation and Association process opens perspectives for membership.

Economic prospects for the EU in 2003

Recent economic developments point to lower growth than envisaged in the Commission 2002 Spring Forecasts. The recovery needs more time than expected to gain strength. Uncertainties have also increased, partly due to increased tensions in the Middle East and Iraq, and the associated developments in oil prices. Other risks are related to the impact on household and investors' confidence of the recent correction in stock market prices, the volatility in financial markets and possible contagion effects from the economic crises in certain Latin American countries.

For the euro area, the recovery started in the first quarter of 2002, but there has been no further built-up in momentum over the summer. Domestic demand and notably private investment have remained sluggish. Exports have also weakened. Indicators continue to point to a certain acceleration in growth in the second half of 2002 but GDP growth is unlikely to exceed 1 %. This delayed recovery suggests that the growth rate for 2003 will also have to be scaled down and that the previous forecast of an average growth rate of close to 3% in 2003 now appears to be out of reach.

All in all, there is now more uncertainty as to when, and how strong, the pick-up in EU growth will be. At the same time, it should be stressed that all the conditions for this pick-up remain in place. Inflation is decelerating, monetary conditions are accommodating and interest rates are relatively low. The adjustment in inventories has probably taken place. There are no major economic imbalances. And, finally, business and consumer survey indicators remain close to their historical averages.

This economic situation makes it all the more important to complete the ongoing structural reforms and to consolidate progress towards the EU's strategic goals of developing a sustainable and inclusive, knowledge-based economy.

2. Commission priorities for 2003

Against this background, the Commission confirms the political priorities that it identified in its Annual Policy Strategy for 2003:

- an enlarged Europe

- stability and security, and

- a sustainable and inclusive economy

The Commission invites the other EU institutions to take account of these priorities, key initiatives, legislative proposals and non-legislative acts in their own programming for 2003. The Commission confirms its readiness to cooperate with the other EU institutions to deliver these priorities through joint programming.

2.1. An enlarged Europe

Making a success of enlargement will require an unprecedented effort. As the executive arm of the Union and as the guardian of its Treaties, the Commission will be in the front line working to pursue the policies of the Union within an enlarged framework. To this end, the Commission, like the other Institutions, has to continue to improve its management and its working methods, in particular by concentrating resources more on its essential activities.

The Commission will have to be in a position to ensure that the acquis communautaire is implemented in an enlarged Europe from day one of accession, and will need adequate resources for this task.

a) Objectives:

In the light of discussions with the institutions, and within the framework set by the Annual Policy Strategy for 2003, the Commission identifies the following key objectives for 2003:

* to ensure adequate support, close monitoring and regular reporting so that the future Member States assume fully all the responsibilities arising from accession, and also to ensure a smooth phasing-in of EU policies in the new Member States and the normal functioning of the internal market after accession;

* to guarantee that the Commission will fully meet its obligations from the very first day of accession, from the point of view of applying Community legislation, policies and programmes and in terms of the measures needed to receive the new Member States;

* to conduct an in-depth rethinking of Community policies that reflects the qualitative dimension of the most significant enlargement in the history of European integration.

b) Key Initiatives - an enlarged Europe

1. Monitor the process up to signature and ratification of the Accession Treaty to enable the candidate countries with which negotiations were concluded to actually achieve membership in 2004 and participate in the European Parliament elections as members:

* Closely monitor and regularly report to the Council on implementation of commitments made by acceding countries in the accession negotiations, including a comprehensive monitoring report;

* Assess the implementation of commitments necessary for the programming of structural funds for the new Member States on accession;

* Prepare the safeguard mechanisms necessary to forestall any setbacks to the functioning of the internal market or in the area of justice and home affairs during the first two years after enlargement.

* Monitor progress with the implementation of the necessary reforms to satisfy the Copenhagen economic criteria by 2004;

* Support reconciliation between the two Cypriot communities following achievement of a political agreement;

* Support Member States and candidate countries in providing information to their citizens on the consequences of enlargement.

2. Prepare and implement a revised accession strategy for Bulgaria and Romania, and strengthen the pre-accession strategy for Turkey:

* Prepare and implement the Road Maps for Bulgaria and Romania for the period up to accession;

* Prepare and implement actions, including increased financial assistance, related to the strengthening of the pre-accession strategy for Turkey.

3. Provide guidance and financial support to assist the future Member States to strengthen their administrative and judicial capacities:

* Reinforcement of the administrative and judicial capacities of the candidate countries e.g. institution-building actions, specific projects;

* Measures to ensure the Community standards for food safety;

* Mobilise the necessary investments in the candidate countries so that they can participate fully in the Trans-European networks and assure the strong functioning of the internal market.

4. Prepare the application of Community legislation, programmes and surveillance procedures and the open method of co-ordination in the new Member States, including by:

* Incorporating the review of candidate countries' economic, employment and environmental policies in the Spring synthesis report of 2003 and follow up progress;

* Associate candidate countries to the Community research Programmes;

* Participation of Candidate countries in the e- Europe Action Plan.

* Take measures to ensure common standards for nuclear safety within the European Union;

* Preparation of Structural Fund programmes and of Cohesion Fund projects with the view of launching them right from the start of 2004.

5. Prepare the concrete application of the Common Agriculture Policy to the future Member States, notably through:

* Technical adaptations of farming legislation;

* Preparation of rural development programmes with a view to launching them right from the start of 2004.

6. Progressively set in place the structures needed to extend the Community's anti-fraud arrangements to the candidate countries, namely through:

* Ensuring that the candidate countries take the actions necessary to enable them to manage the customs union;

* Strengthening appropriate structures for fraud avoidance and control and extending interchanges and training on the protection of the financial interests of the European Union.

7. Intensify and complete administrative and linguistic preparations for enlargement by:

* Completing the publication of the Treaties;

* Proceeding with the consolidation of legislation and start codification in the existing languages. Publish the acquis communautaire in the new official languages;

* Ensuring the administrative preparations for selection, recruitment and integration of officials into the Commission from the new Member States.

8. Continue implementation of the administrative reform of the Commission to ensure effective modernisation of Commission by 2004.

9. Continue to review the main Community policies, their procedures and their impact to provide a basis for future proposals on the main prospects for the development of policies in the enlarged Union and the future financial framework after 2006.

10. Contribute to the work of the Convention on the future institutional framework for an enlarged European Union.

The corresponding legislative proposals and non-legislative acts appear in the first part of the list attached to the Work Programme, identified by the key "100".

2.2. Stability and security

The Commission will assume its role by helping to extend the European area of prosperity, peace and stability. This is based on respect for fundamental rights and freedoms. The fight against crime, in all its forms, including terrorism, will remain in the forefront.

A particular effort will also be made to develop effective external border management and to co-ordinate the various bodies responsible for border surveillance, including preparing the candidate countries, which will have to manage the largest part of the European Union's land frontiers. Effective action against illegal immigration should be balanced by genuine Community immigration and asylum policies, which recognise legal immigration as a source of cultural richness and economic force whilst offering guarantees to those in need of international protection.

Outside the EU, partnerships with neighbouring countries in Europe will be transformed into a central factor for stability and security.

Finally, the Commission will play its part in strengthening the Common Foreign and Security Policy and making it more cohesive and effective. Stability in the Balkans and a new drive to achieve peace in the Middle East will remain the two main priority objectives in 2003. However, attention should also focus on the fragile security situation in certain parts of Asia, and the Commission - as part of the international community - should contribute to furthering peace and stability in this region.

a) Objectives

In the light of discussions with the institutions, and within the framework set by the Annual Policy Strategy for 2003, the Commission identifies the following key objectives for 2003:

* to make substantial progress, as provided for by the European Council in Laeken, and further defined in Seville, towards the establishment of a European area of freedom, security and justice.

* to improve transport safety and security as well as security of information and communication networks and in civil protection;

* to work for peace and stability at the external borders of the enlarged European Union and beyond, including gradual association to the EU where relevant;

* to respond effectively to crises when peace is challenged;

* to develop mechanisms to increase contact and understanding between the peoples and cultures of Europe and of other parts of the world.

b) Key Initiatives - Stability and security

1. Legislative and non-legislative measures towards an integrated European system of border management including measures to fight illegal immigration, in accordance with the programme agreed by the Seville European Council:

* Legislative measures to revise and consolidate the rules set out in the Common Manual on external borders;

* Measures to enhance the common visa policy and in particular to establish a common visa identification system;

* Examination of the legal, institutional and budgetary implications concerning burden-sharing for the management of external borders and for developing joint training of border services;

* Establishment of a rapid alert system of illegal immigration and trafficking in human beings.

2. Propose measures to tackle the financing of terrorism and to follow up the forthcoming Communication on the fight against corruption, to facilitate effective implementation of criminal sentences in the Union and to contribute to combating and preventing crime and terrorism, whilst ensuring that these measures are properly balanced with measures to protect individual rights:

* Framework Decision on the freezing and confiscation of funds from entities controlled by physical persons involved in the funding of terrorist activities to ensure that legitimate business activities are not used to finance terrorism;

* Framework Decision fixing common standards regarding procedural safeguards for persons accused in criminal proceedings throughout the EU.

3. Make further proposals for measures to consolidate common European immigration and asylum policies, including increased funding for the European Refugee Fund and greater co-operation with third countries in the field of migration:

* Establishment of a Community Action Programme aimed at encouraging the integration of third country nationals who are legally resident in the Union (to be seen in conjunction with 2.3, b), 7, 4th bullet);

* establishment of an instrument relating to a 'one-stop shop' for the processing of applications for asylum in the Member States.

4. Reinforce the application of the anti-money laundering directives, implement the measures on payment systems announced in the Fraud Prevention Action Plan and enhance co-operation between Finance Intelligence Units:

* Evaluation of the existing Third Pillar measures in the fight against financial crime, and examination of the need for an instrument to create an EU-wide system to combat money laundering involving large-scale cash payments.

5. Follow up the Green Paper on the protection of the financial interests of the European Union and the establishment of a European Public Prosecutor, and present the main conclusions to the European Convention in view of the next Intergovernmental Conference

6. Ensure effective implementation of the security provisions in the Commission

7. Improve all Community aspects of transport, energy, public health and information and communications network security:

* Establishment of common EU standards for the safety of nuclear power plants, implementation of the environmental provisions of the Euratom Treaty, as well as enhancing civil protection through legislative proposals and other initiatives and ensuring the safe transport, treatment and disposal of nuclear waste;

* Proposal for a Regulation establishing a European Centre for disease control;

* Implementation of a Cyber security task force.

8. Make a significant contribution towards resolving the conflict in the Middle East and develop the Mediterranean partnership, notably by taking forward the Barcelona process, focusing on promoting political and economic reform, economic co-operation and investments in the region and continuing to improve the effectiveness of MEDA

9. Develop association and stabilisation process in the Balkans and further co-operation with Russia and the Newly Independent States:

* Negotiation of a Stabilisation and Association Agreement with Albania.

10. Provide financial and political support to the process of reconstruction led by the representative government in Afghanistan, and support peace and stability in central Asia

11. Reinforce the rapid reaction mechanism and make an active contribution to the Common Foreign Security Policy and to the civilian dimension of the Common Security and Defence Policy

12. Adopt the Erasmus World Programme to enhance quality in higher education and to promote inter-cultural understanding through co-operation with third countries (2004-2008), and also implement the TEMPUS Programme in the MEDA countries

The corresponding legislative proposals and non-legislative acts appear in the first part of the list attached to the Work Programme, identified by the key "200".

2.3. Sustainable and inclusive economy

2003 must see firm support for resurgence in the economy and in employment, based on joint efforts on the economic, social and environmental fronts. To this end, the measures provided for in the EU's sustainable development strategy and the Lisbon Strategy will have to be adopted and put into practice. The main challenge will be to facilitate progress towards a knowledge-based economy. In addition, the EU will have to ensure that the internal market for services - financial, energy, transport, telecommunications etc. - is fully operational, and maximise the effect of introducing the euro for consumers and businesses.

Externally, the Commission's objective is to get to grips with globalisation and to ensure that the benefits are shared as widely as possible between countries and within countries. The multilateral trade negotiations that began in Doha will enter a crucial phase, not least with the WTO Ministerial in Cancun in September 2003, and we shall have to ensure that the Kyoto commitments are properly implemented. Finally, we shall have to work towards achieving a better global partnership, notably by delivering on commitments made in Monterrey and Johannesburg in the areas of trade, finance and globalisation. Increased and more effective external assistance, concrete measures to address the unsustainable debt burdens of many developing countries, enhanced regional integration including regional trade agreements, a specific attention to Africa and the least developed countries in general as well as improved conflict prevention will be essential elements in a successful fight against poverty.

a) Objectives

In the light of discussions with the institutions, and within the framework set by the Annual Policy Strategy for 2003, the Commission identifies the following key objectives for 2003:

* to maintain stability-oriented macro-economic policies and accelerate implementation of the Lisbon Strategy including the promotion of a knowledge-based society, the strengthening of the internal market for services, the removal of fiscal distortions and the promotion of employment through the implementation of the revised European employment strategy;

* to promote sustainable development and strengthen social and economic cohesion balancing environmental, social and economic concerns through implementation of the EU's sustainable development strategy;

* to promote a genuine immigration policy which reflects the fact that successful integration of immigrants in society is both a matter of social cohesion and a prerequisite for economic efficiency. In effect, fulfilling Lisbon economic goals of economic growth and increased employment by 2010 and beyond will notably depend on the shape and dynamics of immigration;

* to ensure that the positive effects of globalisation are shared evenly between and within countries; to work for a fairer distribution of resources between the North and the South respecting their cultural diversity and environmental heritage.

b) Key Initiatives - Sustainable and inclusive economy

1. Provide the Commission's Spring Report for the European Council, assessing progress against the ambitious decade-long programme of economic, social and environmental change launched by the European Council in Lisbon in March 2000. This will analyse progress made, particularly in the Member States, against the concrete targets established by the Lisbon and subsequent European Councils and identify priorities for the next 12 months in order to keep the Lisbon Strategy on track. It will also include follow-up to the Johannesburg World Summit on Sustainable Development.

- Economic policies

2. Measures to complete the internal market for services, through measures to eliminate barriers to the provision and take-up of services from which both business and consumers can benefit, and reach final agreement on the most important measures to meet the 2003 deadline for an integrated European securities market and the 2005 deadline for an integrated Financial Services market:

* Communication on the main achievements of the internal market since 1992 particularly focusing on the benefits to European citizens on the occasion of the 10th anniversary of the internal market;

* Implementation of the new Framework Programme 'Intelligent energy for Europe;

* Adoption of the remaining actions in the Financial Services Action Plan;

* Implementation and management of the new Regulatory Framework for electronic communication Services (including spectrum management);

* Green paper launching a debate on our role in ensuring the wide availability of high quality services of general interest for all citizens, and in particular on the possibility to consolidate and specify principles on services of general interest in a framework directive.

3. Measures to enhance competitive conditions in the internal market, in particular through modernisation of competition policy instruments including state aid and tax measures:

* Implementation of new measures to ensure modernisation and effective enforcement of anti-trust, merger and state aid rules, in particular regarding further liberalisation of the postal and energy sectors;

* Green Paper on entrepreneurship to stimulate discussion of Europe's competitiveness;

* Proposal for a Directive on fair trade;

* Measures to ensure co-ordination of national fiscal systems;

* Legislative and non-legislative measures that will adapt the VAT system to the modern economy, in particular to e-commerce.

4. Initiatives to improve economic policy co-ordination, in particular budgetary policies, to ensure that Member States achieve and sustain sound budgetary positions and to secure the smooth functioning of Economic and Monetary Union:

* Reinforcement of existing coordination mechanisms and enhancement of the efficiency of policy co-ordination through a better and more clearly defined policy coordination cycle with increased focus on implementation (streamlining);

* Further improve implementation of the Stability and Growth Pact, inter alia by developing the surveillance of budgetary policies and encouraging commitments by Member States on common standards to strengthen the efficiency and credibility of the Pact;

* Implementation of the new streamlined economic policy-co-ordination cycle.

5. Initiatives to promote the knowledge-based society in particular through the development and implementation of an integrated strategy for a European knowledge area and eEurope:

* Implementation of the joint Commission/Council work programme on objectives for education and training systems in Europe;

* Implementation of the 'Information society for all' notably through e- Europe 2005;

* Measures to develop good practices in life-long learning and e-learning;

* Proposals for focused action to increase research investment in Europe to reach the objective of 3% of GDP set by the Barcelona Summit;

* As a major contribution to the European Research Area, launching of the sixth framework programme for research and technological development, including proposals for further guidelines on bioethical principles;

* Adoption of a new action programme on e-learning that will integrate new technologies in education and training.

- Other internal policies

6. Measures to ensure sustainability and coherence in and between a number of key internal and external policies, notably agriculture (CAP mid-term review), fisheries, environment, transport, energy, migration, cohesion policy and Structural Funds (third report on cohesion policy), food safety, communicable diseases and public finance in the context of monetary union as well as effective follow-up to the Göteborg Conclusions; improve implementation of Community-wide environmental legislation; measures to create the necessary environment for consumer confidence in cross-border transactions and to pursue the continuing expansion of trans-European transport and energy networks:

* Further to the mid-term review of the CAP, the Commission will table proposals for review of other sectors. This concerns wine, sugar, olive oil, tobacco, cotton and possibly other products;

* Legislative proposals and measures to implement the Fisheries reform such as setting up the first Regional Advisory Councils, establishment of a Joint Community Inspection Structure for Fisheries, establishment of multi-annual management plans for some major fisheries stocks and proposals for the necessary implementing measures for the application of the new fleet policy;

* Third Cohesion Report at the end of 2003 including, as appropriate legislative proposals for the Structural Funds after 2006;

* Implementation of the Regulatory Framework for Food Safety and proposal for a regulation on nutrition, functional and health claims made on food;

* Preparation and implementation of the 7 thematic strategies, in particular on the sustainable use of natural resources and on the urban environment, within the 6th Environmental Action Programme;

* Proposals for integrated product policy, a new chemicals strategy and finalising risk reduction measures required under existing legislation for dangerous substances;

* Preparation and implementation of an action plan on clean technologies for growth and development;

* Effective application of the new impact assessment tool to achieve better lawmaking and progress towards sustainable development;

* Implement the new European Union Solidarity Fund to help victims of major disasters;

* Cost-related measures in support of sustainable development particularly in relation to environment, energy and transport policies (in the light of reactions to a methodology paper in the case of transport).

7. Implement the Social Policy Agenda, combining all Community instruments (open method of co-ordination, legislation, social dialogue, and support via the Structural Funds) so as to help achieve the strategic objectives set at the Lisbon European Council:

* Adoption of a Communication on the mid-term review of the Social Policy Agenda;

* Effective implementation of the open method of co-ordination by the adoption of a revamped employment package, a second joint report on social inclusion and the launch of this working method in the field of pensions;

* Ensure appropriate follow-up of ongoing social partners' consultation according to article 138 of the Treaty on data protection of workers, social aspects of corporate restructuring and portability of supplementary pensions;

* Elaboration of a Communication on the interaction between immigration, employment and social policy, at European level, bearing in mind the situation of the national labour markets (to be seen in conjunction with 2.2, b), 3, 1st bullet).

- External dimension

8. Implement the Cotonou Agreement and Asia-Latin America programmes with a view to effectively reducing poverty, with special emphasis on reaching the Millennium Development Goals, in particular those relating to health and education, and by reducing the debt burden in the context of the HIPC initiative:

* Finalisation of the ACP partnership agreements and implementation of programmes. Implementation of programme on communicable diseases;

* Negotiation of Economic Partnership Agreements with ACP countries.

9. Intensify our dialogue with Africa, by supporting the African Union in its efforts to bring governance, peaceful co-existence, and sustainable development to Africa, and by making a success of the Lisbon EU-Africa Summit in April 2003

10. Intensify the Doha trade round negotiations, by ensuring a successful WTO ministerial in Cancun in September 2003, so as to ensure respect of the end-2004 deadline for the conclusion of the negotiations.

11. In the external relations context, continue bilateral negotiations with Mercosur, the African, Caribbean and Pacific States, the Gulf Co-operation Council and the Mediterranean countries. Review EU relations with South East Asia.

12. Ensure coherence between the European Union's internal policies and the external relations and cooperation policies in a way that ensures the right balance between our economic interests and the best developmental and environmental results, while facilitating trade with and amongst our partner countries.

The corresponding legislative proposals and non-legislative acts appear in the first part of the list attached to the Work Programme, identified by the key "300".

3. Extended impact assessment of selected proposals

In June 2002, the Commission established a new integrated procedure for impact assessment to improve the quality and coherence of the policy development process [4]. This procedure is designed to assess the impact of proposed Commission actions, by rendering systematic the examination of the principles of subsidiarity and proportionality in operational terms and by analysing the balance between the economic, social and environmental components of sustainable development. As agreed at the European Council in Seville, the Commission would start implementation of impact assessment already in 2003.

[4] COM(2002)276 of 5 June 2002

The new procedure integrates, reinforces, streamlines and replaces all existing separate impact assessments previously used for Commission proposals. It will be applied to all major proposals adopted by the Commission in the Annual Policy Strategy and/or the Work Programme, be they regulatory proposals or other proposals that have an economic, social and environmental impact. Although the approach is new, however, the implementation of the new procedure builds on existing practices and knowledge. The procedure will be implemented gradually and become fully operational in the 2004 strategic planning and programming cycle which will start with the adoption of the Commission's 2004 Annual Policy Strategy in February 2003.

With a view to an early application of this instrument, the Commission has decided to select a certain number of proposals from the 2003 Work Programme for an extended impact assessment. These proposals are listed in Annex 2. As it has not been possible to establish a preliminary impact assessments for the first phase, the Commission has based its selection on the importance of the proposals selected in relation to the political priorities, on the feasibility for services to perform the assessment in the short-term using existing research and work already undertaken, and on the need to maintain a balance between different types of proposals and the involvement of a broad range of services. The number of impact assessments has been limited to what can be delivered during this first phase in the implementation. It is understood that the impact assessments will be carried out with the flexibility and pragmatism required, and, as appropriate, will take into account studies or analytical work already undertaken. It is also understood that the selection of the extended impact assessments listed in Annex 2 does not release the Commission services from the normal preparatory steps for legislative proposals, which include the analysis of their impacts, to be done in a proportionate fashion.

In future, a short preliminary impact assessment will be established early in the policy formulation process as a condition for inclusion of a legislative or policy proposal in the Annual Policy Strategy and, at the latest, before inclusion in the Work Programme. These preliminary impact assessments will enable the Commission to decide which proposals should undergo an extended impact assessment.

The Commission will select proposals for extended impact assessment, based among other criteria on whether the proposal will result in substantial economic, environmental and/or social impacts on one or more of the key sectors, on whether it will have a significant impact on major interested parties, and on whether it represents a major policy reform.

The purpose of the extended impact assessment is to carry out an in-depth analysis of the potential impacts as well as to consult with interested parties and relevant experts according to the Commission's minimum standards for consultation.

4. Dialogue with the European Parliament and the Council: stocktaking and prospects

The Commission's Legislative and Work Programme represents an important contribution to the work of other EU institutions in 2003. In January this year, the Commission and the European Parliament agreed a timetable for discussion of the Annual Policy Strategy and the Legislative and Work Programme. This process has been respected. The Commission has discussed the political priorities and developed the key initiatives through a dialogue with both the European Parliament and the Council. Both institutions welcomed the priorities proposed by the Commission and took note of the key initiatives. The Commission, for its part, has reflected their observations in its Legislative and Work Programme.

The Commission therefore invites the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions to take account of the priorities, key initiatives and specific proposals presented in this Legislative and Work Programme when planning their work for 2003.

As far as the Council is concerned, as agreed at the Seville European Council, it will for the first time adopt an annual operating programme in December, taking into account the results of the dialogue with the Commission.

This Legislative and Work Programme represents the Commission's contribution to the Council's annual operating programme for 2003.

The Commission therefore invites the Council to take into account the priorities and key initiatives presented in this Work Programme and to plan discussion of the specific new proposals and non-legislative acts shown in the first list attached to this Work Programme.

When preparing its annual operating programme, the Commission also invites the Council to ensure discussion and adoption of major proposals that the Commission has already presented. These are listed in Annex 3 of this Work Programme. The Commission also looks forward in the course of 2003 to working with the Institutions and the Presidencies to elaborate the first multi-annual strategic programme of the European Council.

It should be recalled that the High Level Technical Working Group on Interinstitutional Co-operation is currently examining Parliament's request to be involved in the annual Council programming can be taken into account in the context of discussions on the Interinstitutional Agreement following the Seville European Council. The Commission fully supports the establishment of an agreement between the three institutions, which would help to develop a more integrated and coherent political planning process for the European Union.

5. Conclusions

2003 will be a crucial year for the European Union. The overarching task in 2003 will be the definition of the architecture of the enlarged Europe. In this respect, the Commission will assume its responsibilities, notably by contributing actively to the work of the Convention. Beyond this, the major challenges for the development of the Community policies are clear:

- The European Union has to complete its own preparations for enlargement, the candidate countries have to be ready to assume their responsibilities, and the EU has to ensure that its policies are well adapted to the needs of an enlarged Europe.

- Stability and security will remain major preoccupations for the European Union, not least because of the continued threat of terrorist activity and uncertainty about developments in the Middle East and other regions. The European Union has to play its part by ensuring peace and stability for its own citizens and working with the international community to achieve this for other regions.

- The European Union will have to consolidate progress towards its strategic goal of developing a sustainable and inclusive, knowledge-based economy, meeting the ambitious targets which it has set itself and working to achieve the goals set by the international community, notably at Johannesburg, Monterrey and Doha.

The Commission is determined to play its full part in meeting these challenges, but they will, more than ever before, require coherent and integrated implementation of agreed priorities by all EU institutions.

ANNEX 1

Assessment of progress in 2002

Presentation of next year's Work Programme also provides an opportunity to make a preliminary political assessment of how far the Commission has implemented the current year's Work Programme. The Commission's definitive assessment of the results achieved and of the use of resources will be presented in the synthesis report and annual activity reports of the Directors-General and Heads of Service for 2002 (to be adopted in the second quarter of 2003). These annual activity reports increase the transparency and accountability of the Commission's activities and have been welcomed by the other EU institutions.

Before assessing implementation of the 2002 Work Programme, it is worth recalling the Commission's action in the aftermath of the devastating floods that beset several European countries in the summer of 2002. The Commission responded immediately. The Commission President and the Commissioners concerned were quickly on the spot to see the extent of the damage for themselves. Within weeks, the Commission devised a comprehensive action plan and presented proposals to create a new emergency instrument, the European Union Solidarity Fund, to assist people in affected regions of the Member States and countries involved in accession negotiations in the event of a major disaster.

Overall, the Commission made significant progress in delivering the key initiatives announced in its Work Programme for 2002. Here are some of the highlights:

Enlargement

The Commission intensified its efforts so that the key decisions on which candidate countries should be ready to join the EU in 2004 can be reached. The regular reports on the preparation of candidate countries, and the Commission's strategy paper form the basis for these decisions.

On 9 October, the Commission adopted the annual enlargement strategy and regular reports, and submitted recommendations to the Council on which candidate countries could be ready to join the EU in 2004.

The Commission continued to deliver technical assistance through the PHARE, SAPARD and ISPA Programmes and proposed opening a wide range of Community programmes to candidate countries. Actions aimed at reinforcing the protection of the Communities' financial interests in the candidate countries were also stepped up.

It also assessed the impact of enlargement on Commission activities and human resources, including the need to ensure that the necessary preparatory work is undertaken to ensure that the "acquis communautaire" is applied from the first day of the enlarged EU.

Safety and security

Following the tragic events of 11 September 2001, the Commission continued to be active in all areas of the European Council action plan to combat terrorism.

This was especially the case in the fields of justice and home affairs, money-laundering, external relations, security of information and communication networks, and civil protection. In a broader safety and security context, the Commission presented several proposals to reinforce health security, transport and energy safety, including aviation insurance, oil stocks, safety rules and standards for different transport modes. It will shortly adopt a proposal on safety in tunnels as well as a major nuclear energy package covering such issues as safety standards, nuclear waste and decommissioning of nuclear plants.

In the fight against crime and terrorism, the Commission submitted legislative proposals to reinforce Europol's counter-terrorism coordination activities and to combat cybercrime, as well as a Communication on the improving democratic control of Europol. A report on actions to combat terrorism financing will be presented before the end of the year.

The Commission presented a major Communication and action plan on integrated management of the EU's external borders, endorsed by the Seville European Council as a priority for the EU in 2003. All of the proposals on legal immigration required by the Treaty are now on the Council table. In addition the Commission presented a series of proposals for combating illegal migration, as well as measures to improve the security of visas and residence permits for third country nationals (the latter have already been adopted by the Council).

In April 2002, the Commission presented its first annual report on the status of the Stabilisation and Association process for the Western Balkans. While indicating that there are still a number of common challenges for the region the report recognises that the Stabilisation and Association process has become a major driving force for political, democratic and economic reforms and is already beginning to produce the desired results in terms of stability and progress of reforms.

Introduction of the euro, further economic and financial integration

The introduction of euro notes and coins was an outstanding success, which reflected a great deal of preparatory work by the various EU institutions and national authorities involved.

The Commission worked closely with the Council, the European Parliament and increasingly with the Social Partners to implement the Lisbon Strategy. In the run-up to the Barcelona European Council, the Commission signalled its concern over a "delivery gap", where Council decisions were not keeping pace with the deadlines established in Lisbon. Since the Barcelona European Council, significant progress has been made in areas such as the Financial Services Action Plan, research and eEurope, but progress in other areas such as completion of the Single Sky, achievement of the internal energy market and revision of the trans-European networks has been slow, despite their having been identified as priorities at both the Barcelona and Seville European Councils.

In October, the Commission adopted a new proposal for a directive on take-over bids, which maintains the scope and principles of its earlier 1996 proposal, but also takes account of Parliament's amendments and the recommendations of the high-level group of experts.

The Commission delivered recommendations relating to monitoring of the Stability and Growth Pact. It presented proposals to streamline economic and employment policy coordination as well as to establish common standards for economic policy coordination.

The Commission proposed a new Consumer Policy Strategy and continued work on consumer protection, with the aim of ensuring that the single market and the euro bring maximum benefits to consumers.

As regards investment in research, the Commission presented a first communication identifying the main areas where European, national and regional policies should be mobilised in a consistent way to approach 3% of GDP by 2010, as requested by the Barcelona European Council.

The Sixth Framework Programme for Research and Technological Development was adopted by the European Parliament and the Council; its main objective is to help structure the European Research Area. In October, the Commission adopted a communication on new perspectives for the European Research Area, which takes stock of the progress already made and sets out new perspectives and actions to be taken.

The Commission did not, as announced in its 2002 Work Programme, present proposals to revise the directive on remedies (public procurement). This is due to the fact that the basic public procurement directives proposed by the Commission in May 2000 are unlikely to be finally adopted before mid-2003. The Commission therefore intends to propose amendments to the remedies directive in 2004.

Sustainable development

The Commission started implementing the EU's sustainable development strategy and contributed to major international meetings on sustainable development.

The Commission contributed actively in the World Summit on Sustainable Development, helping to ensure that the EU played a leading role in building a Global Deal for sustainable development. The Commission was broadly satisfied with the agreements reached in Johannesburg, even if not all of the major EU initiatives, such as the one on renewable energy could be incorporated fully into the outcome. The Commission worked with the Danish Presidency and other Member States to successfully launch the EU's water and energy initiatives at the Summit.

The Commission presented its mid-term review of the Common Agricultural Policy as well as proposals to reform the Common Fisheries Policy, both of which seek to ensure greater sustainability in economic, social and environmental terms.

In line with the Lisbon Strategy and as part of the follow-up to the Social Agenda launched at the Nice European Council, the Commission presented a range of proposals, including an evaluation of the European Employment Strategy and a Communication on the social responsibility of enterprises. The Commission also consulted the social partners on the social aspects of corporate restructuring. It also proposed a Community strategy on health and safety at work.

In January 2002, the Commission adopted a communication establishing an action plan for life sciences and biotechnology, an important new area of the knowledge-based economy.

The independent European Food Safety Authority (EFSA) was launched, and the Management Board selected. Further progress was made on the programme of legislation, contained in the White Paper on Food Safety, notably the adoption of the Regulation on general food law and establishing the EFSA, directives on food supplements and on undesirable substances in feed, and the Regulation on animal by-products. The Commission proposed further legislation as set out in the White Paper, and will additionally adopt a proposal for a Regulation on food and feed controls before the end of 2002. The Commission will also, taking account of the experience of the outbreak of foot and mouth disease in 2001, propose a Directive on the control of foot and mouth disease before the end of 2002.

The new Public Health Programme (2003-2008) was adopted, and the Commission has begun the process of its implementation.

In the field of environment, the Commission adopted a draft Framework Directive on Environmental Liability, a Communication on Environmental Agreements and three Communications that will lead to Thematic Strategies on Soil, Pesticides and the Marine Environment. Another major achievement during 2002 was the Ratification of the Kyoto Protocol by the EU. The Commission will adopt the Communication on integrated product policy in 2003. With regard to the Communication towards a Strategy on the Sustainable Use of Resources, a decision was taken to carry forward this priority to 2003 since detailed exploration of the policy area revealed a more complex scope than could previously have been foreseen.

In the fields of energy and transport, the Commission proposed a multiannual programme on "Intelligent Energy for Europe". It continued to develop an integrated transport approach, based on the Transport White Paper. As a follow-up to the Göteborg European Council, the Commission intends to consult widely on a methodology on charging for transport infrastructure, with a view to presenting legislative proposals to modernise the Community legal framework in 2003.

New European Governance

The Commission presented a series of proposals to meet the commitments made in the White Paper on European Governance to make the European institutions work better and to enhance the openness and efficiency of the EU's working methods. It also contributed actively to the debate on the Future of Europe.

These proposals included an action plan on "Better Regulation", minimum standards for consultation and a new impact assessment mechanism for EU legislation. EU institutions are currently negotiating an inter-institutional agreement to implement these proposals for better regulation. By the end of 2002, the Commission will adopt a report on the implementation of its governance commitments and a second package of Better Regulation proposals.

The Commission set out its vision of the European project in a major contribution to the work of the Convention, and participated actively in this work. The Commission continued to implement the internal reforms launched in the Reform White Paper of March 2000. In particular, 2002 was the first year in which the Commission implemented a full strategic planning and programming cycle. It also presented its global package on staff reforms to the Council, participated in the negotiations that led to agreement on the EU's new Financial Regulation, and continued to implement activity based management throughout the Commission.

The Commission also took practical steps to improve governance in a range of policy areas, including eEurope, recognition of professional qualifications and competition policy, including, in particular, a White Paper on merger policy.

The Commission did not, as announced in its 2002 Work Programme, present formal proposals on options for informing national parliaments better about Community legislative proposals. This matter is currently under discussion in the Convention working party on national parliaments, where the Commission has announced its willingness to transmit to national parliaments all legislative and other proposals that it presents.

Mediterranean

The Commission's main objective was to reinvigorate the Euro-Mediterranean partnership. This was achieved, notably through the decisions taken at the Valencia Ministerial Conference and a number of sectoral ministerial conferences.

These endorsed a broad range of Commission proposals, covering such matters as the development of a Euro-Mediterranean free trade area, the creation of a Euro-Mediterranean Foundation to promote dialogue between cultures, enhanced cooperation on justice and home affairs (including migration) and the environment.

The Commission proposed stimulating private sector investment in the Mediterranean region. The Barcelona European Council decided, as a first step, to set up a Euro-Mediterranean Investment Facility within the European Investment Bank.

In 2002, Euro-Mediterranean association agreements were concluded with Algeria and Lebanon, and negotiations continued with Syria. The association agreement with Jordan entered into force and the interim association agreement with Lebanon will enter into force before end 2002.

In October 2002, the Commission adopted an action plan for the conservation and sustainable exploitation of fisheries resources in the Mediterranean, as part of the Commission's proposals for the reform of the Common Fisheries Policy.

Ass announced in the 2002 Work Programme, the Commission proposed the extension of the TEMPUS Programme to the MEDA countries.

Development cooperation

The Commission placed a particular emphasis on the role of health and education policies in combating poverty.

It proposed new sectoral and thematic policy frameworks on health, HIV/AIDS and population as well as on education in the context of the fight against poverty. The Commission also presented proposals for budget lines on reproductive health and on the programme for action on communicable diseases, the latter programme being launched in 2002. The Commission became a board member of the global fund for HIV/AIDS, malaria and tuberculosis. The Commission contributed actively to the results of the G8 education task force.

The Commission's Communication in preparation for the Monterrey Conference on Financing for Development helped the EU to reach agreement at the Barcelona European Council that Member States would increase overseas development to an average of 0.39% of GDP by 2006. It also resulted in commitments to make EU development assistance more effective by reinforcing the coordination of policies and harmonisation of procedures before 2004. Member States also agreed to continue their discussions in view of further untying of aid. In September, the Commission adopted a communication on trade and development, showing how the EU will follow up its development commitments taken in Doha, Monterrey and Johannesburg.

Acting on a Commission recommendation, the Council agreed negotiating directives for Economic Partnership Agreements with Cotonou Agreement countries and regions, and the negotiations began on schedule in September 2002.

ANNEX 2

2003 proposals that will undergo an extended impact assessment before their adoption

Proposal or act (reference n° in the Work Programme list) // Responsible service(s)

Enlargement priority //

* Proposal for a Decision replacing Decision 1692/96/EC on the Community guidelines for the development of the transeuropean network in the field of transport (TEN-Guidelines). (2003/TREN/35) // TREN

Stability and security priority //

* Industrial security Regulation (2003/ADMIN/8) // ADMIN

* Communication of the Commission on the State of play and development of the Euro-Med Facility (2003/ECFIN+/23) // ECFIN

* Integrated strategy on prevention, preparedness and response to natural, man-made and other risks (2003/ENV/77) // ENV with ISG

* Communication on the integration of third country nationals (2003/JAI/172) // JAI

* Communication concerning the processing of applications for asylum outside the EU (2003/JAI/143) // JAI

* Draft framework decision fixing common standards regarding procedural safeguards for persons accused in criminal proceedings throughout the EU (2003/JAI/158) // JAI

Sustainable and inclusive economy priority //

* Review of the European Employment Strategy (2003/EMPL/11) // EMPL

* Recasting of Gender Equality Directives (2003/EMPL/34) // EMPL

* Integration of environment into standardisation (2003/ENV/22) // ENV/ENTR

* Directive of the European Parliament and the Council concerning Groundwater Protection (2003/ENV/39) // ENV

* Directive on infrastructure for spatial information in Europe (2003/ENV+/70) // ENV

* Legislation on the Kyoto flexible instruments Joint Implementation (JI) and Clean Development Mechanism (CDM) (2003/ENV/75) // ENV

* Directive of the European Parliament and the Council on batteries and accumulators (2000/088) // ENV

* Communication on financing of NATURA 2000 (2003/ENV+/40) // ENV, AGRI, REGIO, BUDG

* Proposal for a Council Regulation establishing multi-annual management plans for fish stocks outside safe biological limits (2003/FISH/7) // FISH

* Council Reg. establishing a Joint Community Inspection Structure for fisheries (2003/FISH/9) // FISH

* Communication on the future of European audiovisual policy (2003/EAC/11) // EAC with ISG

* Proposal to amend the design directive (2003/ MARKT/16) // MARKT

* Proposal for a directive on reinsurance (2003/ MARKT/21) // MARKT

* Communication on the Risk Capital Action Plan (2003/ MARKT/+28) // MARKT

* Proposal for a directive on services in the internal market (2003/ MARKT/23) // MARKT

* //

* Proposal for a Council Directive amending Directive 77/388/EEC as regards the arrangements applicable to public authorities and subventions (2003/TAXUD/10) // TAXUD

* Review of the Tobacco Regime (2003/AGRI/19) // AGRI with ISG

* Review of the Sugar Regime (2003/AGRI/9) // AGRI with ISG

* Proposal for a Framework Directive of the European Parliament and of the Council on fair commercial practices (2003/SANCO/53) // SANCO

* Proposal for a Regulation of the European Parliament and of the Council relating to cadmium in fertilizers (2003/ENTR/40) // ENTR with ISG

* Communication: Basic orientations for the sustainability of European tourism (2003/ENTR/46) // ENTR with ISG

* Proposal for a Directive on the reduction of the level of pollutant emissions from two and three-wheel motor vehicles (2003/ENTR/61) // ENTR

* Proposal for a Directive amending Directive 70/220/EEC on measures to be taken against air pollution by emissions from motor vehicles (2003/ENTR/63) // ENTR

* Proposal for a European Parliament and Council Regulation (EC) on medicinal products for paediatric use (2003/ENTR/59) // ENTR

* Commission proposal for a directive on human tissue engineering and tissue-engineered products (2003/ENTR/37) // ENTR

* Review of the Directives 75/106/EEC and 80/232/EEC (Pre-packaging - ranges of sizes) (2003/ENTR/33) // ENTR

* Communication on the transition from analogue broadcasting to digital broadcasting: Digital switchover in Europe (2003/INFSO/13) // INFSO

* Communication on Intelligent Vehicles and Road Safety (2003/INFSO/14) // INFSO

* Directive ensuring that postal operators do not operate reserved and non reserved activities in the same legal entity (2003/COMP/27) // COMP

* European Initiative for Democracy and Human Rights Regulations 975/976/1999 (2003/RELEX/30) // RELEX

* Directive on access to international rail passenger transport market (2003/TREN/3) // TREN with ISG

* Regulations revising the third air transport package (2002/TREN/28) // TREN

* Revision of the regulation on computerised reservation systems (2002/TREN/29) // TREN

* Regulation on the publication of reports on the quality of passenger air transport services (2003/TREN/43) // TREN

* Regulations revising the third air transport package (2002/TREN/28) // TREN

* Negotiating mandate for a new international agreement on tropical forests (2003/DEV/7) // DEV

ISG = Inter-departmental Steering Group In the Work Programme list, these proposals are flagged with the remark "extended impact assessment" under political motivation.

ANNEX 3

Previously adopted Commission proposals awaiting action in other EU institutions

General Affairs and External Relations

- Agreement on the Commission's proposals for staff reform (2002/0100/CNS)

Economic and Financial Affairs

- Adopt proposals presented in the context of the Financial Services Action Plan, in particular on market abuse (2001/0118/COD), prospectuses (2001/0117/COD), pension funds (2000/0260/COD), conglomerates (2001/0095/COD) and the takeover bids directive (2002/0240/COD)

- Tax package (1998/0193/CNS, 1998/0087/CNS)

- Energy taxation (1997/0111/CNS)

Justice and Home Affairs

Common asylum policy:

- Proposal for a Council Directive on minimum standards for the qualification and status of third country nationals and stateless persons as refugees or as persons who otherwise need international protection (2001/0207/CNS)

- Proposal for a Council Regulation establishing the criteria and mechanisms for determining the Member State responsible for examining an asylum application lodged in one of the Member States by a third country national (2001/0182/CNS)

- Proposal for a Council Directive laying down minimum standards on the reception of applicants for asylum in Member States (2001/0091/CNS)

- Proposal for a Council Directive on minimum standards on procedures in Member States for granting and withdrawing refugee status (2000/0238/CNS)

Common immigration policy and fight against illegal immigration:

- Proposal for a Council Directive on the conditions of entry and residence of third country nationals for the purposes of studies, vocational training or voluntary service (2002/0242/CNS)

- Proposal for a Council Directive on the short-term residence permit issued to victims of action to facilitate illegal immigration or trafficking in human beings who cooperate with the competent authorities (2001/0043/CNS)

- Proposal for a Council Directive on the conditions of entry and residence of third-country nationals for the purpose of paid employment and self-employed economic activities (2001/0154/CNS)

- Proposal for a Council Directive concerning the status of third country nationals who are long term residents (2001/0074/CNS)

- Proposal for a Council Directive on the right to family reunification (1999/0258/CNS)

Internal and external borders, common visa policy:

- Proposal for a Council Directive relating to the conditions in which third-country nationals shall have the freedom to travel in the territory of the Member States for periods not exceeding three months, introducing a specific travel authorisation and determining the conditions of entry and movement for periods not exceeding six months (2001/0155/CNS)

EU citizenship:

- Proposal for a Directive of the European Parliament and of the Council on the right of citizens of the Union and their family members to move and reside freely within the territory of the Member States (2001/0111/COD)

A genuine area of justice in civil law matters:

- Proposal for a Council Regulation concerning jurisdiction and the recognition and enforcement of judgements in matrimonial matters and in matters of parental responsibility repealing Regulation (EC) No 1347/2000 and amending Regulation (EC) No 44/2001 in matters relating to maintenance (2002/0110/CNS)

- Proposal for a Council Regulation creating a European enforcement order for uncontested claims (2002/0090/CNS)

- Proposal for a Council Directive to improve access to justice in cross-border disputes by establishing minimum common rules relating to legal aid and other financial aspects of civil proceedings (2002/0020/CNS)

- Proposal for a Council Directive on compensation to crime victims (COM(2002)562)

- Proposal for a Council Act establishing the Convention on jurisdiction and the recognition and enforcement of judgements in civil and commercial matters in the Member States of the European Union (1997/0339/CNS)

Fight against crime and terrorism and a genuine area of justice in criminal matters:

- Proposal for a Council Decision on the financing of certain activities carried out by Europol in connection with cooperation in the fight against terrorism (2002/0196/CNS)

- Proposal for a Council Framework Decision on attacks against information systems (2002/0086/CNS)

- Proposal for a Council Framework Decision on combating racism and xenophobia (2001/0270/CNS)

- Proposal for a Council Framework Decision laying down minimum provisions on the constituent elements of criminal acts and penalties in the field of illicit drug trafficking (2001/0114/CNS)

- Proposal for a Directive of the European Parliament and of the Council on the Protection of the Environment through Criminal Law (2001/0076/COD)

- Proposal for a Directive of the European Parliament and of the Council on the criminal-law protection of the Community's financial interests (2001/0115/COD)

Employment, Social Policy, Health and Consumer Affairs

- Adoption of proposals to reform Regulation 1408/71 on the coordination of social security systems (1998/0230/COD, 2001/0137/COD)

- Adoption of the proposal for a Directive of the European Parliament and of the Council on working conditions for temporary workers (2002/0072/COD)

- Adoption of the proposal to establish a tripartite social summit for growth and employment (2002/0136/CNS)

- Adoption of the Directive of the European Parliament and of the Council on quality and safety standards for human cells and tissues (2002/0128/COD)

Competitiveness (Internal Market, Industry and Research)

- Public procurement package (2000/0115/COD, 2000/0117/COD, 2001/0179/COD)

- Adoption of the pharmaceutical reform package (2001/0252/COD, 2001/0253/COD, 2001/0254/COD)

- Agreement on the Community Patent before the European Council in Spring 2003 (2000/0177/CNS)

- Communication on taxation of vehicles (COM(2002)431)

Transport, Telecommunications and Energy

- Electricity and gas market opening proposals (2001/0077/COD)

- Energy and transport trans-European networks (2001/0311/COD, 2001/0226/COD, 2001/0229/COD)

- Agreement on the Single European Sky package, including provision of services (2001/0235/COD), air space (2001/0236/COD), interoperability of air traffic management (2001/0237/COD), framework for the creation of a Single European Sky (2001/0060/COD)

- Agreement on the 2nd railway package, safety and licensing (2002/0022/COD), interoperability of railways system (2002/0023/COD), railways agency (2002/0024/COD), railways development (2002/0025/COD)

- Agreement on rights for air transport passengers (2001/0305/COD)

- Multiannual programme for action in the field of energy: Intelligent Energy for Europe Programme, 2003-2006 (2002/0082/COD)

- Package to reinforce the security of oil and gas supplies in the framework of the energy internal market (2002/0219/COD, 2002/0220/COD, 2002/0221/CNS and COM(2002)488, 1 to 5)

- Regulation on the promotion of combined transport and short sea shipping ("Marco Polo") (2002/0038/COD)

- Directive on market access to port services (2001/0047/COD)

Agriculture and Fisheries

- Adoption of proposals to be presented by the Commission later this year relating to the mid-term review of the Common Agricultural Policy

- Adoption of proposals on the reform of the Common Fisheries Policy (COM(2002)180, COM(2002)185, COM(2002)186, COM(2002)187, COM(2002)190 and 2002/0114/CNS)*

- Adoption of the Regulations of the European Parliament and of the Council on genetically-modified organisms in food and feed (2001/0173/COD) and on the traceability and labelling of genetically-modified organisms (2001/0180/COD)

- Adoption of the proposal for a Directive of the European Parliament of the Council on the monitoring of zoonoses and zoonotic agents (2001/0176/COD), and of the Regulation of the European Parliament and of the Council on the control of salmonella and other food-borne zoonotic agents (2001/0177/COD)

Environment

- Adoption of the Directive on environmental liability (2002/0021/COD)*

- Adoption of the biosafety Regulation (2002/0046/COD)*

- Adoption of the Prior Informed Consent Regulation (2002/0026/ACC, 2002/0030/ACC )*

- Adoption of the Regulation on forest and environmental interactions (2002/0164/COD)*

- Adoption of the Regulation on the transboundary movement of genetically modified organisms (2002/0046/COD) and on the traceability and labelling of GMOs (...)

- Adoption of the packaging directive (2001/0291/COD)

Education, Youth and Culture

- Adoption of the Decision of the European Parliament and the Council establishing a programme for the enhancement of quality in higher education and the promotion of intercultural understanding through cooperation with third countries "Erasmus World" (2002/0165/COD)

(* = if not already adopted in 2002)

ANNEX 4

COMMISSION LEGISLATIVE AND WORK PROGRAMME FOR 2003

List of legislative proposals and non-legislative acts

1: Legislative proposals and non-legislative acts corresponding to the political priorities for 2003

2: Other legislative proposals and non-legislative acts likely to be brought forward in 2003

Explanatory Notes

(1) The Work Programme presents three political priorities for 2003, each of which has a number of key initiatives. Where these key initiatives involve the adoption of legislative proposals or non-legislative acts (e.g. Communications or White Papers), these will be found in the first list.

(2) The second list contains other proposals and acts that the Commission could envisage being adopted in 2003 when this Work Programme was finalised. It includes proposals and acts carried over from previous years.

(3) The lists only exist in the original language version (part English, part French).

(4) The Commission updates its planning each month and transmits a "3-month rolling programme" to the other EU institutions to help them organise their work [5].

[5] In the interests of transparency, this is also made available to the public on the Commission's Internet homepage http://europa.eu.int/comm/index_en.htm ("The Commission at your service", "Organisation", "3-month rolling programme").

(5) The first list is arranged by political priority and then by policy area (e.g. "Agriculture" or "Internal Market"), while the second list is arranged by policy area. The lists provide the following information:

- reference number: e.g. 2003/ADMIN/1 for new proposals. Carryovers from previous years appear as e.g. 2002/ADMIN/1 or 2001/1

- Commission department(s) responsible

- estimated date of adoption

- whether legislative proposal or non-legislative act

- provisional indication of the likely legal base and the corresponding inter-institutional procedure (e.g. co-decision)

- whether mandatory or optional consultation of the Committee of the Regions (CoR) and/or the Economic and Social Committee (CES) is foreseen

- brief description, political motivation, and an indication of whether the proposal will undergo an extended impact assessment

- "political motivation sort code", enabling proposals to be re-ordered according to the political priorities: enlargement (100), stability and security (200), sustainable and inclusive economy (300)

- indication of whether the proposal has budgetary implications (i.e. involves operational expenditure) in 2003 and/or in later years, as well as whether this is currently foreseen in the financial programming; the corresponding budget line is also shown.

COMMISSION LEGISLATIVE AND WORK PROGRAMME 2003 / PROGRAMME LEGISLATIF ET DE TRAVAIL DE LA COMMISSION 2003

List of legislative proposals and non-legislative acts corresponding to the political priorities for 2003

/ Liste des propositions législatives et actes non-législatifs qui correspondent aux priorités politiques pour 2003

>TABLE>

COMMISSION LEGISLATIVE AND WORK PROGRAMME 2003 / PROGRAMME LEGISLATIF ET DE TRAVAIL DE LA COMMISSION 2003

Other legislative proposals and non-legislative acts likely to be brought forward in 2003

/ Autres propositions législatives et actes non-législatifs susceptibles d'être présentés en 2003

>TABLE>