17.6.2008   

EN

Official Journal of the European Union

C 151/1

1.1

The European Economic and Social Committee supports the Green Paper's aim of developing the single market for retail financial services, seeking to pinpoint and remove all the artificial barriers whose exploitation prevents European citizens from taking full and direct advantage of the benefits in terms of cost and quality of supply. The Committee believes that the Green Paper provides only a partial review of the financial services and products market, overlooking the issue of distribution, which is a key factor in terms of competition.

1.2

The EESC shares and appreciates the Commission's objective of stimulating the supply of high-quality, innovative products, by promoting the free movement of banking and insurance products that are currently penalised by national legislative and tax-related restrictions limiting such possibilities.

1.3

The general principle behind the Green Paper on Retail Financial Services in the Single Market is the need to improve consumer welfare. The dissemination and use of these services is increasingly widespread and therefore initiatives in this field are of general interest. The further integration of retail financial services could lead to a reduction in costs by means of increased competition. Consumers will reap the benefits providing the European financial system manages to remain competitive both within the EU and externally.

1.4

While agreeing with the premise that the retail market would benefit from being less fragmented, the EESC would stress that, as a rule, retail markets are more segmented than wholesale markets.

1.5

The EESC notes that new market models are emerging. The global market is being built on the basis of cross-border consolidation processes. Banking and insurance multinationals are centring their acquisition strategies on increased mobility of supply. However, these cross-border consolidation processes are having or could have very negative repercussions for employment. Announcements regarding possible acquisitions are followed by news of tens of thousands of job losses, though in practice these cuts are not always carried out. The EESC has previously highlighted this risk of social crisis and proposed appropriate countermeasures, such as vocational training and retraining schemes and social shock absorbers (1), which are written into many collective agreements in the European banking sector.

1.6

There is an urgent need to take the necessary measures to increase consumer skills and awareness. Consumer protection requires that the consumer be provided with all essential information, while clearly always bearing in mind that financial products and services are in a category apart. When it comes to information, consumers need quality rather than quantity.

1.7

The EESC believes that a distinction must be made between information and advice. The former must be given as a matter of course and must be tailored to the client's understanding and risk profile, warning them of possible pitfalls. Advice, in contrast, is a professional service to be provided on request, where the advisor could shoulder some responsibility. The MiFID Directive delimits the boundaries of information and advice, as well as conflict of interest situations.

1.8

The EESC believes that it is essential that this issue be addressed with clear regulations, so as to combat certain practices involving potential conflicts of interest, sales incentives and staff bonus schemes, borrowed from commercial distribution and linked to sales targets for specific products. The EESC recommends holding a specific debate between the sector's companies, consumers and employees, as the first step towards meeting consumers' primary demand for transparent behaviour from banking and insurance companies.

1.9

The EESC would recommend in particular that banking and insurance companies develop specific vocational training for bank and insurance employees. Consumers are better protected when operators are better skilled. With due respect for the independence of the parties involved, such projects could be discussed as part of the social dialogue between the European trade union federation for the sector, Uni-Europa Finance and the European banking and insurance associations

1.10

The EESC would note that the Commission is more favourable than in the past to the adoption of an optional system, known as the ‘28th regime’. Alongside a European optional regime, a European ethical code should be adopted, defined independently by operators and discussed and agreed with the relevant Commission departments and the sector's user and employee associations, dealing specifically with the company-client relationship in the context of financial services.

1.11

The EESC shares concerns regarding transparency of banking conditions. Differences in prices and price formulas often result in asymmetry and make it difficult to compare prices, while there is no proper information on applicable charges.

1.12

The EESC supports the consumer protection commissioner, Ms Meglena Kuneva, who has set three main objectives regarding the 2007-2013 consumer policy strategy:

The EESC will shortly issue an opinion on the matter. The Commission submitted a proposal for a consumer credit directive to the Council in May 2007.

1.13

The EESC agrees with the idea that client mobility is an important factor in the development of the financial services sector, in terms of both quality and efficiency. The EESC believes however that the objectives with regard to consumer mobility in this sector should not be overly optimistic.

1.14

Relationships of trust are exceedingly important in the financial sector, given that most products are specific and involve long-term commitments between buyer and seller. There are many reasons to explain why consumers find it harder to form relationships of trust with intermediaries that are not physically present in their own country.

1.15

People form their impressions of financial services from their description in information leaflets and in the terms and conditions; the language and culture issue cannot therefore be underestimated. On this note, the EEC believes that it would be neither realistic nor fair to require intermediaries to draft information leaflets and terms and conditions in all EU languages. In the medium term, therefore, the problem of the language barrier is destined to remain unresolved and be a major barrier to consumers' cross-border mobility.

1.16

The EESC agrees that it is time to take a careful look at the legitimacy of barriers to consumer mobility, such as high fees for closing accounts, a lack of transparent information, and financial service contract structures that are calculated to dissuade clients from changing product or supplier, as occur in some countries. The EESC would also stress, however, that technical, regulatory, fiscal and legal constraints can often make it difficult to create the right conditions for the degree of consumer mobility suggested by the Commission. There is also a danger that simplifying financial services rules will result in weaker consumer protection. The dismantling of barriers must lead neither to increased product prices nor to deterioration in the present protection measures.

1.17

The difficulty in harmonising the framework of safeguards that emerged, for instance, in the process of revising the consumer credit directive, might give consumers the impression that the level of protection on offer will depend to a large extent on the country in which they are buying the service.

1.18

The EESC maintains that only consumers with a good level of financial understanding can properly grasp just how complex meeting financial needs can be and, consequently, appreciate the added value of competent, independent financial advice. There should also be special arrangements for consumers who are not (fully) at ease with new technologies.

1.19

The EESC maintains that it is essential to bridge the gap between financial companies and clients. Some democratic countries with market economies have managed to establish certain minimum rights for consumers, such as the legal right of bona fide residents to a bank account, as a citizenship right. If national legislation and practice is brought into line with these good practices, they could conceivably shape a common EU heritage (2).

1.20

For the purposes of drafting this opinion, the EESC held a hearing of organisations representing businesses, consumers and workers. The positions expressed by these organisations have been condensed into the opinion. The EESC shares the legitimate concerns expressed by consumers regarding the need to improve conditions so as to open up the single market effectively to retail financial activities and remove the artificial barriers that get in the way. The Green Paper has helped by launching an important debate. Meanwhile, if there is to be a general improvement in cooperation between the various economic and social players, proper attention must be given to the objective considerations of business leaders and requests from workers' representatives. For this reason, before any provisions are adopted, the EESC recommends holding a specific discussion forum for the above-mentioned representatives of the interests that must be reconciled.

2.1

The Commission uses the Green Paper to define its intended policy in the retail financial services sector, which it describes as ‘current accounts, payments, personal loans, mortgages, savings, pensions, investments and insurance products, when they are provided to individual customers, including retail investors.’

2.2

The Commission pinpoints barriers to market access in legislative and fiscal differences and in market fragmentation, with a view to enabling EU citizens to benefit from the single market, taking into account the remaining barriers and poor development in cross-border activities.

2.3

The Commission is set on using market forces and competition as a springboard for bringing down prices in these services; and it is committed to taking appropriate action in cases where Community rules are not upheld. The Commission argues in the Green Paper that legislative measures should be adopted if necessary.

2.4

The Commission aims to stimulate the supply of high-quality, innovative products, by promoting the free movement of many banking and insurance products which are currently penalised by national legislative and tax-related restrictions that limit such possibilities.

2.5

As regards the legislative framework, the Commission has relaunched the debate on the ‘28th regime’ (seemingly putting all previous concerns to one side).

3.1

The EESC cannot respond to all the questions raised by the Green Paper in this opinion, but it aims to make a thorough assessment of the most important themes addressed.

3.2

The EESC stresses the need to distinguish between financial products and financial services. The former are purchased and are then ‘owned’ (e.g. securities, funds, insurance policies) and the purchaser bears the risk. Banking services, however, are used rather than owned (e.g. personal loans, mortgages, overdraft facilities) and the service supplier bears the risk. The Committee believes that the Green Paper provides only a partial review of the financial services and products market, overlooking the issue of distribution, which is a key factor in terms of competition. The inherent characteristics of the various distribution channels and types of products and services available have a huge bearing both on price (consider third-party motor insurance policies sold over the telephone or internet), and on the reliability and competence of the authorised parties (financial institutions, large retailers, brokers, post offices etc.). The EESC believes it necessary to broaden out the debate to include non-traditional distribution channels and the link between the products and the distribution systems.

3.2.1

Segments: In order to consider the consumer dimension of financial services it is necessary to segment the services and then to consider the retail outlets — the distribution system — by which the consumer can access these various services and the degree of competition in the retail system. Personal financial services segment naturally into three groups: retail banking, personal lines insurance and savings and investment products.

3.2.2.1

Customers have traditionally obtained all retail banking services by contact with bank staff located in bank branches, once having established their identity and bona fides. In most countries there are many competing banks. For a foreign bank to enter a domestic market it is more practical to acquire an existing bank than to create a new network which would take time and would, in turn, create even more competition (cf. acquisition of Abbey National by Santander and acquisition of ABN Amro by Fortis, RBOS and Santander, etc.). In effect, consumer choice depends on the competitiveness of national markets since customers must choose one or other of the banks in the domestic market place.

3.2.2.2

Internet banking is now under development but is likely to remain mostly nationally based because the brand must be known and trusted by customers and the bank will need to depend on national regulations to determine the identity and bona fides of its customers.

3.2.2.3

Internet and telephone banking are providing 24/7 access to banking services which is a huge advance over the time when access depended on bank opening hours.

3.2.2.4

While competition between banks for full service customers is necessarily restricted to full service banks, there is a great deal of ‘cherry picking’, especially in the credit card domain by banks like American Express and MBNA. These services are offered via direct sales channels and are available throughout the EU. Credit card customers are subsequently offered ATM access and extended consumer credit. In this way consumers can benefit from competition between national and international banks. At the same time, however, there is a risk of individual debt increasing further.

3.2.2.5

Retail banks do not confine themselves to offering retail banking services. With a strategy often described as ‘Bancassurance’ they now offer products and services across the whole spectrum of retail financial products and services. Their branches and their customer records provide a captive distribution capacity of huge value. Banks tend to brand most or all of the financial products and services offered to their customers, but these branded products are not necessarily best price or best value.

3.2.3.1

Consumer choice in personal lines insurance is a function of the strength and extent of the independent distribution system provided by intermediaries such as brokers and independent financial advisors. The traditional role of the intermediary has been to provide best advice for the circumstances of the particular client. The intermediary would consider value as well as price.

3.2.3.2

As in banking, there has been ‘cherry picking’ by direct selling insurance organisations which seek out clients in low risk categories.

3.2.3.3

The business of the direct sales companies and the role of the intermediary are now being challenged by internet sites which offer on-line comparison of competing products, especially motor insurance. This disintermediation focuses on price and tends to reduce all products to commodity status.

3.2.3.4

For consumers to have the best possible choice in personal lines insurance, including motor insurance, there must be an alternative to Bancassurance distribution. That requires that there are no anti-competitive restraints on the development of independent intermediary networks or on distribution via the internet.

3.2.4.1

Savings and investment products are a major business segment for banks. They are also the segment which offers the widest range of competing products and the most highly developed system of independent intermediaries. The comments about personal lines insurance in point 3.1.3.4 above apply equally to consumer choice in this segment. Regulations require that bank staff who advise customers on savings and investment products must, as part of their advice, explain that as bank employees they can only sell bank branded products and that these may not carry the lowest cost or give the best value.

3.2.4.2

Consumers are bound to take advantage of government sponsored savings schemes in their home country. International companies will provide competing products within those schemes where the volumes are attractive and distribution channels exist.

3.2.4.3

Mortgages are an essential product for consumers. The most highly developed national markets are characterised by the presence of many mortgage providers in addition to the banks and very sophisticated networks of independent advisors backed up by a great deal of direct marketing. Competition has created a hugely inventive market with a plethora of different product offerings and a good deal of customer switching between mortgage providers as terms and conditions change. With so many options, clients need the best possible guidance from their advisors.

3.2.4.4

Personal pensions, collective investments, stocks and shares and stock market derivatives are also sophisticated products which require best advice based on a thorough understanding of the client's circumstances. Therefore the customer needs to have access to competent advisors and intermediaries who in turn have access to a wide range of product options. As previously mentioned, advisors employed by banks have to be particularly concerned about giving best advice.

3.2.5

The emphasis in the Green Paper is on bringing the benefits of the single market to customers for retail financial services. The central issue is the divide between the retail banks and the rest of the industry. The banks have an unassailable position in retail banking which means that they have unique market power since all users of financial services are already their customers. The nature of the advice given by banking staff is central to the working of the market because in the fields of personal lines insurance and savings and investments there are alternative products and alternative distribution systems which customers should consider if they are to have access to all that the market can offer.

3.2.6

Accordingly the presence of a network of well qualified independent intermediaries and the emergence of distribution channels on the internet for commodity products are key to the working of the market.

3.3.1

A number of critically important points emerged during a hearing organised by the EESC. These points had already been raised by consumer, business and employees' associations in documents submitted to the Commission.

3.3.2

The debate highlighted agreement with the Commission's proposed objectives, as well as the practical difficulties encountered in certain areas. The Green Paper sheds no light on how legal and fiscal constraints can be overcome, such as the law on money laundering and terrorist financing, which requires the client to be personally identifiable for an account to be opened or for certain financial transactions to be carried out (KYC — Know Your Customer). Neither does it address the barriers to full market integration, stressing the fragmentation of the retail market, and almost calling for further procedures to consolidate national and, above all, transnational markets.

3.3.3

Operators feel that the demand for mobility has been overestimated, and call for a careful and detailed assessment of real market demand, as they believe that provisions in the area of the European payments system ought to have contributed to reducing consumer interest. The call for a completely new numbering system for European accounts to improve the mobility of personal numbers appears excessive, as the benefits would be few whereas the cost, eventually carried by consumers, would prove exorbitant.

3.3.4

The hearing also highlighted the need to examine all possible means of improving regulations in the sector. The banking industry calls for a reduction in compulsory regulations, so as to enable the market to react spontaneously to demand and strike the right balance in an ever more tailored and specialised market.

3.3.5

In the field of insurance, more so than in banking, demand in the retail sector centres on the national market, and customer satisfaction (83 %) is such that there is nothing to suggest that the structure of demand will change. On the other hand, there are concerns about the forthcoming expiry of provisions that are important for insurance companies, particularly in the field of reinsurance, such as Regulation 358/2003 and the Commission intention not to renew the Block Exemption Regulation (BER), in 2010. Not renewing the BER would mean that the legal clarity it guarantees would no longer exist. The positive cooperation currently secured by the BER may then be abandoned by insurers for reasons of prudence, depriving consumers and insurers from tangible benefits of cooperation i.e. consumer mobility, products comparability, insurability, and opening-up of markets to small and medium sized enterprise and new entrants.

3.3.6

Workers' representatives in the financial sector pointed out that the Green Paper pays no attention to the role of workers, and reiterated their demand for more specific training, to enable them to meet the growing demand for information and clarification on the various investment options on offer. They also stressed the way in which particularly aggressive commercial practices and performance-related bonus and assessment systems have in many cases resulted in the sale of products unsuitable for clients or not geared to their needs. This point was highlighted alongside considerations about the most recent financial crisis and the problems caused by the lack of proper, meaningful, in-built market vigilance, associated with the increasingly important role played by hedge funds and private equity funds. Another factor is the need to keep a careful eye on the behaviour of rating companies, often called upon by issuers to assess the value of their shares in an obvious instance of conflicting interests.

3.3.7

Consumer representatives, finally, called for radical measures to cut the red tape and difficulties surrounding the mobility of national and transnational accounts, well-informed and responsible advice, full and comprehensible information, and common rules for the various countries. They were also highly mistrustful of the idea of an optional single system (the so-called 28th regime) or of harmonising the existing laws which are at the root of the differing degrees of protection within the EU.

3.3.8

All the participants in the hearing stressed the need to strengthen cooperation between consumers and financial institutions, recognising the practical and specific role played by employees in improving relations and bridging gaps.

3.3.9

The EESC believes that the contributions made during the hearing were extremely significant. It endorses the comments made and believes they bear witness to the urgent need to open up a multi-stakeholder forum following the publication of the public consultation results, so as to seek to strike the right balance between the various bodies. The EESC would be prepared to act as a coordinator and facilitator at an event of this kind.

3.4.1

The broad principle that informs the Green Paper on Retail Financial Services in the Single Market is improving consumer welfare. Since consumers have many opportunities to avail themselves of financial services in their daily lives, improving the retail financial services sector could play an important role in fulfilling the overarching goal.

3.4.2

The European Union has adopted a framework of rules and inspection which, by encouraging the soundness of finance brokers and promoting the unrestricted provision of services, has been a major step forward in promoting competition in the financial sector.

3.4.3

In addition to this, the introduction of the single currency and the effects of the Financial Services Action Plan have given a substantial boost to the single market at the level of the institutional and wholesale clientele.

3.4.4

The retail market, on the other hand, has, according to the Commission, remained extremely segmented, with the result that:

3.4.5

While agreeing with the premise that reducing the fragmentation of the retail market would be a good thing, the EESC stresses that, in general, retail markets are inevitably more segmented than wholesale markets for obvious reasons to do with the fragmentation and diversity of the demand to which they are geared; as a result, the retail market cannot be judged with the criteria applied to the wholesale market.

3.4.6

The EESC notes that new market models are emerging. The global market is being built on the basis of cross-border consolidation processes. Banking and insurance multinationals are centring their acquisition strategies on increased mobility of supply. The European market is becoming the domestic market for some major groups, and they are not concerned with providing their products and services in their own name in another Member State but rather with increasing volume and opportunities through direct entry onto individual national markets, establishing themselves from within. The fierce competition for the acquisition of a major Dutch bank is evidence of this.

3.4.7

However, these cross-border consolidation processes are having or could have very negative repercussions for employment. Announcements regarding possible acquisitions are followed by news of tens of thousands of job losses, though in practice these cuts are not always carried out. The EESC has previously highlighted this risk of social crisis and proposed appropriate countermeasures, such as vocational training and retraining schemes and social shock absorbers (6), which are moreover written into many collective agreements in the European banking system. Cost savings are made but there are no significant benefits for consumers as businesses tend to base their pricing system on the local market, and the expected benefits of bringing new players onto the market are taking time to materialise.

3.4.8

The potential economic return on the development of the single market is inherently lower than the benefits of direct entry onto national markets, in terms of both economies of scale and position. This means that the potential benefits for enterprise are considered negligible, so specific thought needs to be given to possible measures to be taken.

3.4.9

Of course, the EESC endorses the aim of removing all artificial barriers to the single market which mask hidden agendas. It therefore calls for all appropriate measures to be taken to this end, but also stresses the need for the measures undertaken to be genuinely targeted and for the cost/benefit ratio to be clear.

4.1

There is an urgent need to take the necessary measures to increase consumer skills and awareness, in order to facilitate responsible choices. Consumer protection requires that the consumer be provided with all essential information, while clearly always bearing in mind that financial products and services are in a category apart.

4.2

The EESC believes that a distinction must be made between information and advice. The former must be given as a matter of course and must be tailored to the client's understanding and risk profile, warning them of possible pitfalls. Advice, in contrast, is a professional service to be provided on request, where the advisor could shoulder some responsibility. The difference is not always sufficiently understood. In some countries, these services are supplied by independent professionals, as in the case of the UK, in others by employees of financial institutions, who may find themselves in a clear conflict of interests between the need to sell financial products that may be linked to bonus systems and the need to take care of the client who is relying on their professional expertise.

4.3

The EESC believes that it is essential that this issue be addressed with clear regulations, so as to combat certain practices involving potential conflicts of interest, sales incentives and staff bonus schemes, borrowed from commercial distribution and linked to sales targets for specific products. The EESC recommends holding a specific debate between the sector's companies, consumers and employees, as the first step towards meeting consumers' primary demand for transparent behaviour from banking and insurance companies.

4.4

To be genuinely effective, consumer information must take into account cultural diversity, the fact that there is no one recipe which can be considered the best; i.e. information requirements must be geared to the different national situations. A minimal system of joint European protection such as the Commission is about to propose could be envisaged. Consideration also needs to be given to the fact that the MiFID Directive includes advice as an investment service. Such advice therefore becomes a restricted activity. In terms of the provision of advisory services MiFID guarantees investors a very high level of protection: The advisor is required to obtain all the information necessary to assess the suitability of the recommendations made. There is a need to define such an advisory service in order to be able to distinguish it clearly from the general advice provided through the distribution networks and to clarify the scope of the application of the more rigorous obligations.

4.5

Intermediaries are required to take all reasonable steps to identify conflicts of interest and manage them in such a way as to prevent conflicts of interest from adversely affecting client interests. Where arrangements made to manage conflicts of interest are insufficient to ensure, with reasonable confidence, that risks of damage to client interests will be prevented, the intermediary must clearly disclose to the client the general nature and the sources of the conflicts of interest before undertaking business on the client's behalf. In general, intermediaries are now required to act in the client's best interests.

4.6

The EESC would recommend in particular that banking and insurance companies develop specific vocational training for bank and insurance employees who promote and sell financial services and products. Contact between financial institutions and consumers is through operators, who should be enabled to become familiar with the features of financial products and services and in turn advise clients well. The system in Cyprus, which has drawn on the British model, and includes a requirement to determine the client's risk profile and provide complete and accurate information, has shown its effectiveness. Consumer satisfaction there is very high. Consumers are better protected when operators are better skilled. As part of sectoral social dialogue, and with due respect for the independence of the various parties, the Commission should promote a specific programme dedicated to developing the training of sales operators in charge of financial services and products. This could be done by means of a project jointly run by the European banking and insurance associations and the European trade union federation for the sector, Uni-Europa Finance.

4.7

Increasingly often, identical financial products are sold under many different guises. Clients are sometimes urged to buy products and services which are not particularly tailored to their actual needs, and the risk of excessive debt, especially in consumer credit, is causing increasingly substantial problems for families and also for specialised firms. In the United States, the financialisation of the economy has resulted in the subprime (i.e. high risk) mortgage crisis. It is like an enormous chain letter, involving not only specialised institutes but also major investors, which have liberally underwritten high-yield (because high-risk) shares to the tune of billions of dollars. The crisis has affected all the financial markets and has brought to light the limitations of rather loose vigilance systems, as in the case of the UK. This calls for a review and strengthening of the third level of the Lamfalussy process regarding coordination between national regulatory authorities. In Europe, the impact on the financial market has been relative, although some countries that employ similar banking practices, e.g. constant remortgaging, are starting to encounter serious difficulties because of rising rates. The main problem has been the falling value of the dollar, which has propelled the euro to record levels, jeopardising Europe's moderately positive economic cycle (see opinion ECO 202, rapporteur: Mr Derruine).

4.8

The EESC would note that the Commission is more favourable than in the past to the adoption of an optional system, known as the ‘28th regime’. In this regard, it refers to the comments it made previously, in the Opinion on the White Paper on Financial Services Policy 2005-2010 (7).

4.9

Alongside a European optional regime, a European ethical code should be adopted, defined independently by operators and discussed and agreed with the relevant Commission departments and the sector's user and employee associations. This code would deal specifically with the company-client relationship in the context of financial services, as well as the possible plans for directives being discussed.

4.10

On 18 July 2007, during a statement made at the invitation of the EESC INT section, the Commissioner for Consumer Protection, Ms Meglena Kuneva, said that three main objectives had been set with regard to the consumer policy strategy for the period 2007-2013:

To achieve these objectives, last May the Commission put before the Council a proposal for a consumer credit directive, on which a political agreement was reached.

4.10.1

The proposal for a Directive lays down parameters for providing consumers with comprehensive, understandable and comparable information on credit offers, a fully harmonised formula for calculation of the Annual Percentage Rate of Charge and the Single European Form containing pre-contractual information, a new 14-day right to withdraw from a credit agreement without any penalty, and a right to repay the credit early.

4.10.2

The Commissioner also stressed her intention to increase ‘the consumer's financial capability’. This is firstly a matter of information, but another factor to be developed is financial education of consumers, which must go hand in hand with information requirements rather than replace them.

4.10.3

The EESC fully supports Commissioner Kuneva's objectives and is drafting an opinion to examine the proposals.

5.1

The operational objective of the Green Paper is to reduce the segmentation of the retail financial market and lift legal and economic barriers to client mobility. Having laid the ground work for mobility of supply, the European Union wants to complete the picture by supporting the mobility of demand.

5.2

Producing the rules this necessitates is costly in itself and in terms of the adjustments it requires from the various stakeholders, especially intermediaries. The EESC agrees that initiatives should only be launched if the benefits to the public are significant and there is a high likelihood of achieving them. The EESC also applauds the desire to monitor the consequences of initiatives adopted in order to verify whether results match expectations and be ready to rescind actions that do prove unsatisfactory. However, it must be pointed out that the costs of unsatisfactory initiatives which are to be rescinded can also be very high, and experience has shown that these costs may be passed on to consumers, making things more difficult for them rather than easier.

5.3

In this connection, the EESC points out that in many cases this kind of process — ‘modifying the initial state — impact assessment — possible return to the initial state’ — may be more of a declaration of intent than a truly viable plan of action. This is because in the financial sector cultural models, relations of trust and accumulated experience play a crucial role in shaping the dynamics of commerce and competition. Most actions have an impact on these elements, changing them irrevocably and making it impossible to recover the initial state of affairs simply by rescinding actions found wanting at the impact assessment. For this reason, the EESC hopes that the Commission will not be overly optimistic and set too much store by the possibility of restoring the initial state of affairs once the results of actions undertaken have proved inadequate.

6.1

The Green Paper takes the view that the fragmentation of the retail financial market will remain by and large unchanged in the medium term unless efforts are made to cut the barriers that hamper consumer mobility, such as: lack of homogeneity in rules and consumer protection, different fiscal regimes, fragmentation and incompatibility of the operational infrastructures in which financial services are embedded.

6.2

The EESC agrees that client mobility is an important factor in developing both quality and efficiency in the financial services. The EESC maintains, however, that goals set for cross-border access to financial services should not be over-optimistic.

6.3

Consumer mobility can be understood in terms of either geography (acquiring the product in a place at a distance from one's residence) or relationships (the ability to change supplier easily). The two types of mobility, while distinguishable as concepts, are closely connected.

6.4

At least potentially, the services sector can offer greater geographical mobility than the consumer goods sector, since the encumbrance represented by the physicality of the goods exchanged is lifted. For example, buying a car abroad involves substantial transport problems that are absent when the object of the transaction is an ‘intangible’ service that travels on ‘information highways’ rather than on asphalt.

6.5

On the other hand, there is a barrier to mobility of relationships in the service sectors in that their designation as an ‘intangible’ product often makes services difficult to fully evaluate and understand, making the relationship of trust between seller and buyer particularly important. The relationship of trust is singularly important in the financial sector, since most products are specific and involve long-term commitments between seller and buyer. There are all manner of reasons why consumers find it more difficult to establish a relationship of trust with brokers that are not actually present in their own country.

6.6

Another aspect not to be underestimated is the means by which the consumer perceives the product. In the case of tangible goods, the product is perceived through the senses, which, clearly, are not susceptible to linguistic or cultural barriers. Financial services, in contrast, cannot be seen or touched, but are only perceived via the description given in information leaflets and in the terms of contracts: the language and cultural issue cannot, then, be underrated. Consumers can purchase services abroad effectively if they have a good knowledge of the language and the key financial practices of the broker's country. Imposing a kind of multilingualism in information and contracts could be envisaged as a way around this obstacle. The EESC thinks it would be neither realistic nor reasonable to oblige brokers to draft information leaflets and contracts in all the Union's languages. There is no way that the costs of initiatives of this kind, made all the greater by the continuing evolution of the product, could be offset by an increase in volume. The Green Paper itself, in fact, maintains that in the medium term no increase in cross-border consumer mobility can be expected in the financial services sector. The language-barrier issue is therefore set to remain unresolved in the medium term and be a major obstacle to cross-border access to retail financial services.

6.7

The Commission instructed a high-level group to assess the current situation as regards consumer mobility in relation to bank accounts. On 30 May 2007, it published an interesting report which revealed major differences in opinion on very many points. Consumer associations see this as a genuine issue while banking industry experts do not consider it to be an issue. Some say that clients are very satisfied and see no need to facilitate mobility, while others feel that these statistics must be treated with great caution because satisfaction depends on the level of expectation, and it is important to give consumers the opportunity to switch banks without hindrance, enabling even satisfied consumers to switch banks if they find better offers on the market.

6.8

On the one hand, the banking industry stresses that consumers focus essentially on the domestic market. On the other, consumer associations bewail the lack of cross-border competition resulting from the barriers to switching accounts and the poor transparency and comparability of products and services on offer; consumers also show a lack of confidence in foreign businesses.

6.9

The experts' report analyses the current difficulties of opening an account: banks are concerned by legal and regulatory barriers, including the personal identification requirement laid down by legislation combating money-laundering; consumers highlight poor transparency of information on products and services supplied and on the documentation required. Consumers feel it is now essential that the right to open a basic current account be recognised, as it is in a number of European countries' legislation, given the impossibility of participating in economic and social life without a current account. On this point, the banks stressed that freedom of contract is a fundamental principle of the market economy, enshrined in many Constitutions.

6.10

Without wishing to embark on a constitutional debate, the EESC feels it is essential to bridge the gaps between financial companies and clients. Some democratic countries with market economies have managed to establish certain minimum rights for consumers, such as the legal right of bona fide residents to a bank account, as a citizenship right. If national legislation and practice could be brought into line with these good practices, they could conceivably shape a common EU heritage. The EU has often, in the past, taken advantage of the success of local legislation and applied it to all the other Member States. In a previous opinion, the EESC called for this right of access to be granted across the board (8).

7.1

The Commission maintains that promoting conditions to create greater consumer mobility can make it easier to achieve a twofold benefit: offering greater range of choice to satisfy much more diverse needs at competitive prices.

7.2

For this reason, initiatives are under way in the retail banking sector to examine, in particular, the possibility of promoting the ‘portability’ of bank accounts. A directive is also being considered on improving the portability of supplementary pension rights.

7.2.1

The subject of current account transferability must not however be confused with that of the single European account number. The adoption of a single European number would carry enormous costs that would be totally unjustified, and that would end up being paid for by consumers. Transferability should refer to all the transactions linked to the account, such as standing orders, direct debits or securities accounts, but certainly not to the account number. The implementation of SEPA at European level is based on the current IBAN and CIN identification codes, which should remain the same. Banking companies must provide for maximum cooperation to ensure account mobility and the transferability of arrangements, possibly by means of codes of conduct or inter-bank agreements, as is already the case in some countries.

7.3

The EESC agrees that it is time to take a careful look at the legitimacy of obstacles to consumer mobility such as fees for closing accounts, poor information transparency and the nature of financial service contracts that are calculated to dissuade clients from changing product or supplier. The EESC also stresses, however, that technical, regulatory, fiscal and legal constraints can often make it difficult to create the right conditions for the degree of consumer mobility suggested by the Commission. The coexistence alongside the euro of various other currencies presents a further difficulty. The non-euro area still comprises numerous Member States and this adds to the problems outlined above.

7.4

In particular, efforts to create homogenous conditions in the financial services sector are also hampered by barriers created by national authorities in the desire, legitimate in itself, to give consumers better guarantees. The Commission voices its intention to avoid limitations on choice that are not strictly justified. The EESC advises caution, however, in moving towards standardising the system of protection afforded to consumers, given that the EU countries are not culturally and socially close enough to justify a strongly centralist approach.

8.1

The exchange of financial operations and services is possible when there is a solid basis of trust between the two parties. The Commission stresses that European consumers are somewhat concerned and suspicious about the protection and guarantees that cross-border operations might be able to offer them. The mobility of consumers will only be fully achieved when they are truly persuaded that the protection of their interests is dependent neither on the place in which they purchase services nor on the distribution channel that delivers them.

8.2

The Commission believes that the following issues need to be addressed if this goal is to be achieved: protecting consumer interests, providing a clear and reliable regulatory framework, ensuring access to an appropriate extra-judicial arbitration system and promoting the soundness of financial brokers.

8.3

The issue of protecting consumer interests is a delicate one, since, as has been stressed earlier, it is not easy to define a regulatory framework that meets all the desires and demands of each Member State: the difficulty of harmonising the framework of protection — for example, as emerged during the revision of the directive on consumer credit — may give consumers the impression that the level of protection afforded depends to a large extent on the country in which the service is purchased.

8.4

Regarding the clarity of the regulatory framework that governs contractual relations, the 1980 Rome Convention establishes that it is the parties who, in principle, define the law applicable to the contract. A modification of this principle is being examined which would establish that the law to be applied is that of the consumer's place of residence if the seller conducts his commercial activity in that country. However, there is no guarantee that the application of this place of residence law will enhance the supply of financial products in other Member States.

8.5

There is no doubt that the clear establishment of this principle could boost consumers' confidence in the legal position, although it tallies only in part with the concept of consumer mobility set out in the Green Paper. In fact, the Commission maintains that attention should also be turned to the cross-border mobility of consumers, since that of financial brokers is not enough: the new principle would help make it easier to establish a general and unequivocal rule when it is the broker who offers his services to the consumers of other countries, but not when it is the consumers who actively seek service providers in other countries.

9.1

The Green Paper has quite rightly pointed out that consumers often express concerns that an unduly abundant choice of financial products could confuse them and make it more difficult to make the right choice for their needs. In fact, only well informed consumers who are quite financially literate will really be able to take advantage of the possibility of greater international mobility in the single market.

9.2

The Green Paper stresses that average financial literacy among consumers is generally low and is a formidable barrier to their making the right financial choices. Moreover, there is a commonly held view that the financial information made available seems to fall into two extremes, being either too banal or too complicated.

9.3

These problems could be at least in part overcome if consumers were able to resort to independent advice services that could help them decide in their best interests. Such services have already been piloted in Cyprus and the UK and will be extended to the other Member States under the MIFID Directive; they would not be obligatory, but would offer an alternative to the services provided directly by the intermediaries. At present, consumers often seek advice from the provider of the financial service: they probably tend to do so because of the relationship of trust that the provision of a financial service presupposes or because there is no explicit cost to the advice offered by the seller. It should be realised, however, that an advice service that is not independent may be subject to a latent conflict of interest which makes it difficult for the consumer to get a full picture of how useful it is for him.

9.4

The EESC maintains that only consumers who are sufficiently financially literate can properly grasp just how complex meeting financial needs can be and, as a result, appreciate the added value of competent and independent financial advice. It is therefore vital to foster such financial literacy, but also to empower savers to make responsible choices. Experts are already talking of ‘financial illiteracy’, as a result of which many people lose track of things and cannot take autonomous decisions about their financial security, leading to possible economic losses. The education system could help young people to acquire some basic financial acumen so they can make informed choices about future investments, though this must not detract from the clear responsibility of financial market operators.

9.5

Advertising, particularly via the internet, warrants much attention. All too often considerable discrepancies have emerged between the actual features of financial products and the returns promised, aimed solely at enticing consumers to invest in specific financial products. It should, however, be stated that such occurrences rarely involve the traditional intermediaries such as banks and insurance companies, which are mindful of customer relations and, moreover, subject to stringent rules and controls. New entrants do not always operate within a clear regulatory framework nor are subject to comprehensive supervisory provisions. All of this weakens the position of consumers.

17.6.2008   

EN

Official Journal of the European Union

C 151/11

1.1

The EESC endorses the proposal to repeal Directive 84/539/EEC relating to electro-medical equipment used in veterinary medicine. The Directive concerned has for some time been replaced by other current Community laws and would appear to serve no further purpose for the single market or for trade with third countries.

1.2

The EESC notes that the decision to repeal Directive 84/539/EEC has been approved by the Member States and the industry following wide consultation.

1.3

The EESC holds the Commission responsible for conducting checks to ensure that the corresponding laws in force at national level are repealed so that they do not create new technical barriers or undermine the expected benefits.

2.1

In its Communication of 16 March 2005 (COM(2005) 97 final), the Commission highlighted the need to simplify national and European legislation when this would improve the competitiveness of companies and cut unnecessary costs.

2.2

This policy guideline was reinforced in 2006 with the working document entitled First progress report on the strategy for the simplification of the regulatory environment (COM(2006) 690 final), which identified initiatives ripe for simplification in the 2006-2009 period. Council Directive 84/539/EEC, on the approximation of the laws of the Member States relating to electro-medical equipment used in veterinary medicine, was among the 43 initiatives selected.

2.3

The European Parliament's IMCO committee, which has already examined the issue, has decided to lend complete support to the Commission's decision.

3.1

The consultation of interested parties (the industry and Member States) led to the conclusion that Directive 84/539/EEC was no longer used in practice as its objectives and the necessary guarantees in terms of health and safety were covered by other Community laws in force, including Directive 93/42/EEC on medical devices (for human use), and the directives on machinery and electromagnetic compatibility.

3.2

The Commission notes that this legislation no longer appears to serve any purpose for the single market or for trade with third countries. Applying the principle of ‘parallel forms’, the Commission therefore proposes the repeal of Directive 84/539/EEC as of 31 December 2008. Following that date, the Annex III mark of conformity should no longer be used.

3.3

The Commission also calls on the Member States to adopt all necessary provisions to conform to this Directive by 31 December 2008.

4.1

The EESC approves of the proposal to repeal Directive 84/539/EEC and agrees with the reasons for doing so.

4.2

The EESC would point out that the Bulgarian, Danish, Italian, Romanian and Swedish versions of the Directive's title include the word ‘human’: this should be deleted.

4.3

The EESC calls on the Commission to carry out the necessary checks to ensure that the benefits stemming from this decision, with regard to electro-medical equipment used in veterinary medicine, are not undermined by new national laws that might constitute unjustifiable barriers to trade.

17.6.2008   

EN

Official Journal of the European Union

C 151/12

17.6.2008   

EN

Official Journal of the European Union

C 151/12

17.6.2008   

EN

Official Journal of the European Union

C 151/13

1.1

Serious contagious livestock diseases represent an increasing risk for animals and people, and the EU should increase its efforts as regards prevention, supervision and control. The EESC supports the Commission's proposed strategy and appreciates the latter's thorough preliminary work. However, efforts should be stepped up vis-à-vis non-EU countries and indicators should be developed as one of the first priorities, since this is of fundamental importance.

1.2

The EU's rules may be expected to have a knock-on effect on the rest of the world and the EC should aim at membership of the World Organisation for Animal Health (OIE). The Commission should work towards achieving a clear understanding of new EU legislation in the relevant non-EU countries and, as part of the proposed export strategy, use expertise and resources in the Member States in connection with solving the crisis.

1.3

Veterinary border controls should be based on an overall assessment of the actual risk and should include spot checks, not least along the border, in order to deter illegal trading.

1.4

Despite the need to have a smoothly functioning internal market, it should be possible to have zoning and compartmentalisation in the form of harmonised criteria and a requirement for testing and/or quarantine arrangements in accordance with the OIE/Codex.

1.5

Management is a key factor in the prevention of infection and in animal welfare, and this should be targeted by requiring the provision of training and advice.

1.6

In order to minimise the risk of infection spreading, consideration should be given to limiting the transport of live animals.

1.7

The veterinary fund and the economic responsibility of the EU should be maintained, and to prevent distortions of competition a firm, harmonised framework should be introduced for national co-funding. The relevant actors should be involved in designing the funding system and its implementation through the Animal Health Advisory Committee.

1.8

In the interests of public acceptance, among other things, vaccination should be used to combat disease outbreaks if it can advantageously replace or supplement the culling of healthy animals. However, as the Commission points out, this should be done in the light of a series of closely defined criteria and in the context of the actual situation.

1.9

The transfer of knowledge is crucial for the incorporation of research findings into production, advice and controls and the ‘Research Action Plan’ mentioned by the Commission should also focus on prevention.

2.1

EU policy is laid down in more than 300 directives, which were largely adopted in the period 1988-1995 in connection with actual disease outbreaks. Severe outbreaks now occur more rarely, but at the same time we are confronted with new and serious risks, such as foot-and-mouth disease, blue tongue and avian influenza. In addition, trade has increased considerably, which has brought with it an increased risk of infection.

2.2

At the same time scientific and technological development, and the institutional framework, have made it possible to have a new, more rational and ambitious strategy, which it is proposed to implement for the period 2007-2013 under the slogan ‘prevention is better than cure’. The aim is to have a high level of public health and food safety, reduce the occurrence of disease, ensure the free movement of goods and prevent outbreaks among livestock. The strategy comprises a prioritisation of EU intervention, a common animal health framework, measures concerning prevention, surveillance and readiness and the involvement of science, innovation and research. Concrete measures will be developed in a partnership having the form of an animal health advisory committee, with representatives of industry, consumers and governments, which will provide guidance on the appropriate/acceptable level of protection, the optimal form of measures, etc.

2.3

Prioritisation consists of categorising biological and chemical risks, assessing the level of risk and how to manage it, establishing an ‘acceptable level of risk’ and clearly allocating responsibility for the various measures involved. Such categorisation will also be the basis for establishing resource needs and allocating responsibilities and costs.

2.4

The proposed animal health ‘framework’ would consist of a set of rules with high standards and common principles. EU legislation is already based to a large extent on the OIE/Codex recommendations/standards and fulfils the obligations in the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement) but the EU, in the Commission's view, should align itself even more closely on these standards. Provided that sufficient scientific justification is present, the EU can in certain cases introduce or maintain requirements at a higher level and the Commission will seek to have the EU's standards applied in the OIE/Codex. The strategy implies providing better information to the EU's trading partners as regards imports into the EU and strengthening the EU's negotiating position on export issues.

2.5

Prevention, surveillance and readiness include measures on farms, electronic identification as well as a combination of elements in the traceability system for living animals. Biosecurity at borders is to be improved and the EU should provide professional assistance to certain developing countries to combat exotic diseases. Situations of crisis should be handled immediately and efficiently, which, among other things, requires the prioritising of supervisory efforts, the establishment of indicators, data collection, networks among the actors concerned, risk analyses, public information and training for those involved.

2.6

Science, innovation and research are to be strengthened by networks among EU agencies and national bodies. The Commission will prepare an action plan to identify shortcomings in existing instruments for supervision, diagnosis, vaccination and treatment, and provide the necessary economic resources through public-private partnerships. In addition, support is to be provided for research in non-EU countries through international cooperation, particularly as regards exotic diseases of major importance or zoonoses which have serious consequences for the countries concerned.

3.1

Serious contagious livestock diseases represent an increasing risk worldwide for animals and people as a result of the constant rise in population and livestock, added to more trade and increasing international communication, and climate change causes changes in geographical distribution. Zoonoses and other diseases are spread in this way or are turning up again and there is a constant risk of a pandemic, for instance in connection with avian influenza. The EU should therefore give greater priority to prevention and combating such threats both within the EU and internationally, not least in developing countries.

3.2

As the representative of organised civil society, the EESC feels that it is necessary to implement the best possible strategy in this area to counter the risk of serious economic and social consequences, and pledges itself to work actively towards this wherever possible. The EESC appreciates the thorough preliminary work of the Commission and can by and large go along with the proposed strategy, which is broadly accepted by the parties concerned. A partnership-based approach is crucial to achieving good and sustainable results in veterinary matters, where responsibility is of necessity spread among a number of actors. The EESC feels that such a model could also be considered in other areas, where it is appropriate to involve sections of civil society.

3.3

The core elements of the strategy, including its aims and visions, risk assessments as a central tool, focusing on general and risk-related communication, together with an increased focus on border controls, are crucial to preventing the outbreak and spread of contagious livestock diseases. Communication with specific target groups is essential, not least in crisis situations, since mistaken perceptions affect business, the supervisory authorities and the political system, with a resulting boycott of products and the introduction of unjustified or over-stringent measures. For example, steps should be taken to avoid market conditions being adversely affected by unfounded doubts about meat from vaccinated animals.

3.4

However, if the relevant EU rules are to be respected, the EU institutions and Member States should respect their own decisions and deadlines for the publication, adoption and implementation of concrete provisions, which has rarely been the case.

4.1

The establishment of priorities for EU measures is of crucial importance for a risk-based strategy focusing on the threat to public health and the economic consequences of individual diseases. A substantial challenge for partnership will consist of defining an ‘acceptable level of risk’ and there must be a strong need here for professional and scientific expertise. Applying the precautionary principle to new threats that have not been fully described is important and necessary if swift action is to be taken, but it is just as important to establish a procedure for an exit strategy if the threat ceases or new knowledge justifies such action.

4.2

The indicators for measuring, assessing and prioritising should be clear, understandable, operational and measurable, and should be made part of the process as soon as possible in view of their fundamental importance. They should therefore be developed as one of the first priorities during the involvement of the designated partnerships. Simple and reliable result indicators will also make it easier to measure the progress made as regards achieving the goals of the strategy.

4.3

The EESC fully supports the proposal for a common legislative framework in the form of a more visible and transparent set of rules that defines common principles and requirements. As the EU becomes more important, it is also appropriate to aim at convergence with current international standards and to influence the future rules of the OIE as far as possible, not least as regards application of the precautionary principle. The Commission has pointed out that the EC should aim at membership of the OIE in the longer term, as this would improve convergence with the OIE's standards, guidelines and other rules. In addition, the EU's own rules should be expected to have a spin-off effect on the outside world that will help to raise the level of health care and counteract inappropriate restrictions of competition. At the same time the EU should assist certain developing countries in such areas and help bring about a clear understanding of new EU legislation in the relevant non-EU countries.

4.4

The enlargement of the EU and the internal market has brought with it an increased risk of disease outbreaks over larger areas. The UN Food and Agriculture Organisation (FAO) several years ago warned against the increased risks resulting from long animal journeys, new transport routes to countries outside the EU, more contact with countries where conditions are unstable and the continued concentration of animal stocks in certain areas of the EU. According to the communication, the Commission wishes to ensure a correct balance in animal transport, so that freedom of movement is related to the risk of diseases being introduced and spreading and to the welfare of animals during transport. As regards the risk of diseases spreading and animal welfare, the EESC feels there is a need to consider limiting the transport of live animals.

4.5

Financing is a fundamental element in EU legislation and it is important to maintain joint responsibility for funding veterinary policy. The veterinary fund and the economic responsibility of the EU should be maintained. The incentive to report immediately any suspicions about or cases of disease outbreaks should not be delayed by uncertainty about the reimbursement of direct and indirect costs. The intention to provide an ‘effective and responsible cost-effectiveness model’ raises a number of questions and there is a need to prepare more concrete proposals as a basis of assessment, not least of a harmonised funding model.

4.6

To prevent distortions of competition, national co-funding should continue with a firm, harmonised framework for co-funding the industry. When allocating costs according to uniform principles in the Member States, the costs, the division of responsibility and the relationship between them have to be specified. Other issues in the equation are whether to involve the relevant actors by way of consultations or joint decision-making and how to use resources for preventing and fighting outbreaks. As has been the case up to now, the industry will, of necessity, have to pay out a series of costs for preventing and combating disease and so it should, among other things, be involved in questions about funding arrangements through the Animal Health Advisory Committee.

4.7

The proposal to introduce ‘non-legislative instruments’ implies, among other things, a need for disease prevention measures and forms of collective responsibility and insurance schemes that in themselves will provide motivation for better risk management and limitation of the economic consequences. The EESC recognises the need for reflection on such matters but finds it is not possible to comment on the proposal as not enough information is available.

4.8

The possibility of regionalisation is important when combating diseases, even though a smoothly functioning internal market is also an obvious prerequisite in veterinary matters. One or more Member States should thus be able to eradicate a disease, with the special status resulting from it, through harmonised criteria and the need for tests and/or quarantine regulations in accordance with the OIE/Codex for zoning and compartmentalisation, provided that restrictions are scientifically well-founded and proportionate to the disease risk involved.

4.9

Acute crises in connection with exports have so far been solved in dealings between the relevant Member State and third country. A quick and effective solution is needed here, in which there should always be a possibility for individual negotiation. Under the Commission proposal locally based teams drawn from the Commission, national embassies and organisations would contribute towards strengthening the EU's role in negotiations on export requirements. Even if the Commission, among other things as part of the proposed export strategy, ensures that EU policy is better understood, so that in practice fewer cases of doubt occur, it should be clear from the detailed action plan that the Commission will make use of expertise and resources in the Member States.

4.10

All experiences show that management is one of the most important factors in disease prevention and animal welfare, and future provisions should include a requirement for training and consultation. The basic rules of biosecurity on individual farms should be set out in legislation, including the requirements for setting up new production facilities, with the resulting consequences as regards compensation in the event of a disease outbreak. Additional criteria and more specific rules should, however, be implemented in the form of guidelines for the different forms of production and as an information campaign with the cooperation of the authorities and the industry. Hobby farmers should be targeted in order to promote understanding of the need for preventive measures. They should also be registered and be subject to the requirements concerning animal turnover and access to herds.

4.11

As regards the Member States' setting-up of effective veterinary border controls, there should be an overall assessment of the concrete risk of a disease being introduced and the possible consequences, together with spot checks in order to deter illegal trading. There should also be better coordination between veterinary and customs authorities and a more flexible border control system, with a more risk-based approach so that attention can be turned rapidly to new risks.

4.12

In the interests of public acceptance, among other things, vaccination should be used in connection with combating disease outbreaks if it can advantageously replace or supplement the culling of healthy animals. However, as the Commission points out, vaccination should be carried out in the light of the concrete situation and be based on recognised principles and factors, such as the accessibility and effectiveness of the vaccine, valid tests, international guidelines and possible trade barriers, cost-effectiveness and the possible risks related to the use of vaccines. There is also a need for further research and development in this regard.

4.13

Science, innovation and research are crucial to achieving the goal of the strategy. It is assumed that research can be incorporated into production, advice and controls, in which there should be more possibilities for transferring knowledge. This also applies to the Commission's Research Action Plan.

17.6.2008   

EN

Official Journal of the European Union

C 151/16

1.1

The EESC is pleased to note that the Commission is in favour of regulating access to the occupation of road transport operator by means of a regulation, thus avoiding differences in the transposal of legislation by the Member States. Adopting this regulation would mean repealing Directive 96/26/EC.

1.2

The Committee welcomes this proposal, as it will harmonise rules on access to the occupation of road transport operator and to the road transport market — for both passengers and goods — helping to achieve the aims of the Lisbon Strategy with clear, simple and enforceable rules, which will lead to fairer competition.

1.3

The new regulation falls in line with the Action Programme for Reducing Administrative Burdens in the European Union, updating the rules on access to the occupation of road transport operator by introducing electronic registers.

1.4

The regulation introduces the concept of the ‘transport manager’ who is the person who continuously and effectively runs the undertaking and who is required to be more highly trained. Stricter rules governing the transport manager's links with the company are also laid down. The EESC would like the practice of hiring qualifications to be eliminated in cases where a firm is headed by a natural person who is not suitably qualified.

1.5

The EESC considers that the regulation should contain the list of categories, types and degrees of seriousness of infringements and the frequency of minor infringements leading to the loss of the good repute required of road transport operators when these are committed in the pursuit of transport activities for which they are responsible.

1.6

With regard to the requirement for an operating centre set out in Article 5c) of the proposal for a regulation, the EESC calls for clarification of the features that this centre should have in the case of small and medium-sized enterprises.

1.7

The EESC wishes to draw attention to the requirement for the undertaking to have a sufficient number of vehicle parking places as a means of recognising the undertaking's stable establishment in a given Member State, because this could prove to be a very onerous requirement, especially for small and medium-sized enterprises and calls on local authorities to make a sufficient number of places and/or through the cooperation of those enterprises in managing joint parking areas.

1.8

The Committee considers that where self-employed persons are concerned, a system should be designed enabling them to prove their financial standing without having to provide a bank guarantee, because this would entail a considerable expense for companies that are not obliged to file simplified accounts in the States concerned.

1.9

The EESC welcomes the compulsory training of 140 hours to be undertaken prior to the examination to test professional competence, and the fact that Member States would have to accredit training centres, which will help to ensure that managers are more highly qualified.

1.10

The Committee calls on the Commission to establish a common system of penalties for all Member States, which would apply to infringements of the regulation's provisions.

1.11

The EESC welcomes the proposal to set up interconnected national electronic registers, which should improve administrative cooperation and make the monitoring of undertakings operating in more than one Member State more effective.

2.1

The proposal for a regulation aims to update current rules on admission to the occupation of road transport operator to ensure a more uniform and effective application of the requirements for admission to this occupation, establishing minimum conditions relating to good repute, financial standing and professional competence.

2.2

The current regulations governing admission to the occupation of transport operator are set out in Council Directive 96/26/EC, of 29 April 1996, establishing minimum conditions relating to good repute, financial standing and professional competence which companies have to satisfy to be authorised to engage in the occupation of road transport operator, that is to say to carry out national or international goods or passenger transport operations. These conditions are the only common requirements imposed on companies for authorisation to carry out their activities on the Community road transport market. The Directive also provides for the mutual recognition of some of the documents required in order to obtain authorisation.

2.3

The directive's implementation varies considerably between Member States, however. These disparities in implementation hamper the operation of the internal road transport market and damage fair competition, which is why the proposed amendment takes the form of a regulation.

2.4

The most significant new features to be introduced by the regulation are:

2.4.1

For individuals who lend their professional competence to a company, the regulation introduces the concept of ‘transport managers’, who should be those who continuously and effectively run the transport activities of road transport undertakings, and these individuals should be clearly identified and designated to the competent authorities. This will create stricter rules governing the transport manager's links with the company. In order to gain accreditation for professional competence, a compulsory minimum training of 140 hours must be undertaken prior to the examination which all applicant transport managers must sit, and training centres and examination centres will also have to be accredited.

2.4.2

The regulation considers that it should be the responsibility of the Member State of establishment to verify that an undertaking satisfies at all times the conditions laid down in this regulation and undertakings are therefore required to be stably and effectively established in that Member State.

2.4.3

New comparable financial indicators are introduced for measuring a company's financial standing. These indicators will be based on the company's annual accounts, using a formula that enables the company to meet its short-term debts, abandoning the current method based on capital and reserves. Furthermore, companies that so desire will be given the opportunity to demonstrate their financial standing by means of a bank guarantee.

2.4.4

The authorities will be obliged to verify that the requirements of good repute and financial standing and professional competence are met and, in the event of non-compliance, will have to warn the operator. If remedial action is not taken within a specified period, the authorities will have to impose administrative sanctions, ranging from withdrawing the company's authorisation to disqualifying its transport manager.

2.4.5

So as to facilitate freedom of establishment, a single model certificate issued in accordance with the provisions of this regulation should be regarded as sufficient proof by the Member State of establishment.

2.4.6

The regulation aims to ensure more organised administrative cooperation between Member States, which would help to make the monitoring of undertakings operating in several Member States more effective and to this end, interconnected electronic registers will be set up to improve the exchange of information between Member States. In order to ensure the efficient exchange of information between Member States, it is proposed that national contact points be designated and that certain common procedures concerning time limits and the nature of the minimum information to be forwarded be specified.

2.4.7

The Commission will be authorised a) to draw up a list of categories, types and degrees of seriousness of infringements leading to the loss of the requisite good repute of road transport operators; b) to amend the annex concerning the knowledge to be taken into consideration for the recognition of professional competence by the Member States and the annex concerning the model certificate of professional competence to take account of technical developments; and c) to draw up the list of maximum infringements entailing the suspension or withdrawal of the authorisation to pursue the occupation or a declaration of unsuitability. These measures should be adopted in accordance with the regulatory procedure with scrutiny provided for in Article 5(a) of Decision 1999/468/EC.

3.1

The proposal for a regulation will help to achieve the aims of the Lisbon Strategy, since it will make for fairer competition within the sector and greater transparency for road transport customers. Given the dominant role of road transport in industry's production and distribution systems and where people's mobility is concerned, it will boost the EU's competitiveness.

3.2

The EESC welcomes the fact that the Commission is putting into practice the commitment it gave in the ‘better lawmaking’ programme, aimed at updating and simplifying the Community acquis, ensuring that regulations are more closely harmonised and are more straightforward, enforceable and effective.

3.3

By introducing electronic registers, the new regulation adheres to the philosophy underpinning the Action Programme for Reducing Administrative Burdens in the European Union.

3.4

The Committee is interested to note that the Commission wishes to regulate admission to the occupation of road transport operator by means of a regulation rather than a directive, which means that it will be directly applicable by the Member States, thus denying the Member States greater scope to adopt their own approach.

3.5

The new regulation introduces a single, generic concept of the ‘occupation of road transport operator’, including both the occupation of road passenger transport operator and that of road haulage transport operator.

3.6

Admission will turn on the new position of ‘transport manager’, a title that will be conferred on the person who has previously run the authorised undertaking and who has lent his or her professional competence to it. This will create stricter rules governing his or her links with the company.

3.7

There is a need to clarify a number of inconsistencies concerning the position of ‘transport manager’ with regard to the focus of his or her activities and the possibility of this person lending his or her competence to more than one company at the same time, in order to thwart the current practice of hiring qualifications. For the future, it would be useful to provide better training for self-employed businessmen and women wishing to access the profession, which will result in managers being better qualified and in companies' management being more independent.

3.8

In the EESC's view, it is in the regulation itself that the Commission should clarify and harmonise a list of categories, types and degrees of seriousness of infringements and the frequency of occurrence beyond which repeated minor infringements will lead to the loss of the good repute of the managers and consequently of the companies themselves.

3.9

The Committee welcomes making the requirement to attend courses before sitting competence exams compulsory, thus ensuring a higher level of training for applicants, and also approves of the requirement for training centres to be accredited.

4.1

The EESC welcomes the introduction of the position of ‘transport manager’, a term applying to individuals who have lent their competence to companies authorised to pursue the occupation of transport operators.

4.2

The Committee calls on the Commission to clarify whether there will be a single ‘authorisation to pursue the occupation of road transport operator’ or whether this definition is simply to be used in the regulation and there will subsequently be two separate certificates — one for passengers and one for freight.

4.3

The EESC welcomes the fact that the regulation will apply not only to companies established in the Community already engaged in the occupation of road transport operator but also to any other undertaking that wishes to pursue this occupation.

4.4

The Committee wishes to draw attention to the exclusion from the scope of the regulation — this aspect was previously a responsibility of the State — of undertakings engaged exclusively in certain road passenger transport services for non-commercial purposes and which have a main occupation other than that of road passenger transport operator and which use vehicles driven by their own employees, because a knowledge of road transport legislation and of the organisation of the relevant services is needed in order to undertake this activity effectively.

4.5

The regulation should introduce a new requirement in addition to those already in place for pursuing the occupation of road transport operator, to the effect that undertakings must be effectively and stably established in a Member State, thus thwarting the phenomenon of ‘letter-box’ companies.

4.6

The fact that the regulation does not prevent Member States from choosing to impose additional conditions with which all companies must comply in order to be authorised to pursue the occupation of road transport operator does not appear to match the Commission's desire for harmonisation, with regard to the conditions for meeting the requirement as to good repute set out in Article 6 of the proposal for a regulation.

4.7

The EESC calls on the Commission to clarify how transport operators should continuously and effectively run the transport activities of road transport undertakings and at the same time be allowed to run up to four different undertakings, with a maximum total fleet of twelve vehicles. This measure would make it hard to eliminate the current practice of trafficking in documents.

4.8

The Committee considers that the most useful approach would be for the regulation to include the list of categories, types and degrees of seriousness of infringements and the frequency of occurrence beyond which repeated minor infringements will lead to the loss of the transport manager's requisite good repute and not to leave regulation of these aspects to a later date.

4.9

The EESC welcomes the proposal that undertakings should be stably and effectively established in the Member State granting them authorisation, as set out in Article 5(a), which requires undertakings to have an establishment situated in that Member State with premises in which it keeps its business documents, but wishes to draw attention to the requirement for the undertaking to have an operating centre in that Member State with a sufficient number of vehicle parking places. This requirement could prove to be particularly onerous for small and medium-sized enterprises. The problem could be solved by local authorities providing a sufficient number of such places and/or through the cooperation of those enterprises in managing joint parking areas.

4.10

The Committee sees a contradiction in the fact that on the one hand the regulation states that Member States will decide on the conditions for a company's good repute but on the other states that Member States will decide that a company meets these conditions if it complies with a range of requirements that are set out in the regulation.

4.11

The EESC fails to understand why, in order to meet the requirement for financial standing, an undertaking should have to be able at all times to meet its actual and potential commitments in the course of the annual accounting year and considers the previous requirement for capital and reserves to be more appropriate. A company will now have to prove its current assets and to have a quick ratio of 80 % or greater on 31 December.

4.12

The Committee considers that where self-employed persons are concerned, a system should be designed enabling them to prove their financial standing without having to provide a bank guarantee, because this would entail a considerable expense for companies that are not obliged to file simplified accounts in the States concerned.

4.13

In any event, the aim of the financial standing requirement should be that companies authorised to operate provide certain market guarantees, but should not be to protect suppliers and creditors, because this would distort the concept of risk, which is an integral part of any business activity.

4.14

The EESC welcomes the new approach of compulsory training of 140 hours prior to the examination to test professional competence and the proposal that the Member States should accredit the bodies qualified to offer training, because this will improve business training for the sector.

4.15

The EESC considers the period of five years (previously at least every 5 years) in which the competent authorities check that undertakings still fulfil each of the requirements for admission to the profession to be too long. Nevertheless it welcomes the fact that in addition to the standard checks, checks will be carried out on undertakings classed as being at risk.

4.16

The Committee considers it appropriate that, where an undertaking is deemed to run the risk of no longer satisfying the requirements for admission, a time limit should be granted for the undertaking to rectify the situation within a time-limit not exceeding six months (previously one year).

4.17

The EESC welcomes the proposal for each Member State to create a national electronic register of road transport undertakings and that all necessary steps will be taken to ensure that these are interconnected throughout the Community by no later than 31 December 2010 and that administrative cooperation between Member States will be regulated. The Committee also agrees with the proposal to regulate the protection of personal data that are held in the register or which might be forwarded to third parties.

4.18

The EESC welcomes the creation of a system for the mutual recognition of qualifications gained by individuals prior to this regulation's entry into force.

4.19

A common system of sanctions applying to all Member States for infringements of the provisions of this regulation needs to be put in place and the sanctions thus provided for must be effective, proportionate and dissuasive.

4.20

The EESC is interested to note that every two years the Commission will, on the basis of national reports, draw up a report for the attention of the European Parliament and the Council on the pursuit of the occupation of road transport operator.

17.6.2008   

EN

Official Journal of the European Union

C 151/20

1.1

Short sea shipping can play a key role in the further development of co-modality and logistics chains. All transport modes should be taken into consideration. In the context of co-modality short sea shipping could be used mainly for longer distances.

1.2

The EESC confirms its full support for measures to further develop and promote short sea shipping. However, it has questions and comments about the actual implementation of these measures.

1.3

In this context, the definition of motorways of the sea needs to be clarified. The EESC considers that this designation cannot be given solely to new subsidised services, but should apply to all efficient short sea shipping services. The EESC is pleased that the Commission has clarified the definition of motorways of the sea in the working document on the Motorways of the Sea, accompanying the Communication on the EU's freight transport agenda of 18.10.2007, in particular that the term also includes existing services (1).

1.4

A concentration of cargo on a limited number of selected ports will have a negative influence on the efficient provision of services, and this will undoubtedly lead to congestion in the ports and their surrounding areas (2). This will not be conducive to the sustainable development of transport.

1.5

The development of additional port capacity and the improvement of hinterland connections by means of other modes should be a priority in the concept of motorways of the sea. Support measures should concentrate on these matters. This will at the same time support the policy of co-modality.

1.6

Support measures for the motorways of the sea should also be directed towards infrastructure, especially the expansion of ports and their hinterland connections, leaving in place existing support measures for services, operational costs and promotion.

1.7

Preventing distortion of competition is a sensitive point that should be tackled extremely carefully because of the specific market structure of short sea shipping. The aim must be to shift goods that are carried by road to sea routes. The aim should not be to switch goods that are carried by sea to another maritime transport operator.

1.8

The Commission intends to use quality standards as one of the evaluation criteria for motorways of the sea projects. Depending on the specific service, the following criteria could be used: frequency, a delivery service that fits in with the production process, reliability, co-modality of the services (according to the Commission's definition, therefore, including the intrinsic merits of the mode), hinterland connections, efficient ports and junctions, e-logistics, optimal administrative procedures, etc.

1.9

In the Mid-Term Review of the Programme for the Promotion of Short Sea Shipping, the Commission states that the possibility of quality labelling will be examined for motorways of the sea. As stated in the Opinion on Freight Transport Logistics, the EESC believes that this must not generate more red tape and unnecessary costs for the sector.

1.10

The simplification and reduction of administrative procedures is likewise a priority for short sea shipping services. Customs formalities for intra-European sea cargo should not be more time-consuming than for road transport. The simplified customs procedures should be thoroughly reorganised, with the cargo and the transport operator being the focal points.

1.11

Other bottlenecks in the logistics chain must be improved. The EESC fully supports the work being done in the context of the Commission's Freight Transport Logistics Exercise.

1.12

Both short sea shipping and the logistics services are short of highly qualified workers. Greater attention should be paid to recruitment, education and training.

1.13

Switching goods transport from road to sea will bring benefits for both the environment and society. A further reduction in exhaust emissions from ships should be encouraged. The EESC hopes that international agreements on this will be concluded.

2.1

The development of motorways of the sea in Europe was earmarked in 2004 as one of the thirty priority projects within the development of the trans-European transport network. Article 12a of Decision No 884/2004/EC (3), covering guidelines for the development of a trans-European transport network, lays down the basic elements for the motorways of the sea. In concrete terms, it was stated that the trans-European network of motorways of the sea is intended to concentrate flows of freight on sea-based logistical routes in such a way as to improve existing maritime links or to establish new viable, regular and frequent maritime links so as to reduce road congestion and/or improve access to peripheral and island regions and states. Motorways of the sea should not exclude the combined transport of persons and goods, provided that freight is predominant.

2.2

TEN funds can be claimed if the costs of motorways of the sea are concerned with facilities and infrastructure. Services and operational costs can be supported by the Marco Polo programme (4).

2.3

The projects of common interest of the trans-European network of motorways of the sea must be proposed by at least two Member States. They must consist of facilities and infrastructure concerning at least two ports in two different Member States. The projects proposed in general involve both the public and private sectors on the basis of a public call for tenders organised jointly by the Member States concerned and targeting consortia bringing together at least shipping companies and ports.

2.4

Decision No 884/2004/EC (Annex II) lists the following motorways of the sea as projects of common interest, identified in accordance with Article 12a, namely:

2.5

The Commission will evaluate the projects on the basis of the criteria stated in Article 12a of the guidelines for the trans-European transport network with the following key points:

2.6

The modalities for the call for project proposals for the establishment of the motorways of the sea were laid down in a Commission Vademecum of 28 February 2005.

2.7

In the meantime, a call for tender has been published for the following projects for motorways of the sea:

Other projects are being examined and discussed by various special ‘task forces’.

2.8

A Mid-Term Review of the Programme for the Promotion of Short Sea Shipping was published in mid-2006 (7).

2.9

In September 2007 the European Commission also appointed Mr Luis Valente de Oliveira (Portugal) as Coordinator for motorways of the sea.

2.10

In October 2007 the European Commission published a working document on the Motorways of the Sea as part of the EU's freight transport agenda (8).

3.1

The EESC has consistently supported measures aimed at developing short sea shipping on account of its considerable potential and as a good alternative to other, less environment-friendly modes of transport, thereby helping to reduce road congestion, accidents and noise and air pollution (9). Furthermore, short sea shipping fits in well into the framework of co-modality and the logistics chain and offers the opportunity to provide access to the islands and peripheral regions.

3.2

The motorways of the sea initiative therefore deserves the fullest support. Nevertheless, as stated in the opinion referred to in footnote 9, the notion of motorways of the sea still raises some further questions and comments which will be discussed here.

4.1

There is justifiable confusion about the concept of motorways of the sea. In practice, there are already at this moment many efficient quality short sea shipping services which provide good multimodal services and thereby reduce road transport congestion and offer services to island and peripheral regions.

4.2

As was stated in the Mid-Term Review of the Programme for the Promotion of Short Sea Shipping, this is the mode of transport better placed to keep up with the rapid growth of road transport (10). Between 1995 and 2004, the tonne-mile performance of short sea shipping in the EU grew by 32 % as against 35 % for road transport. The share of short sea shipping in the EU-25 is 39 % as opposed to 44 % for road transport. In the EU-15, the share of short sea shipping was 42 % compared to 44 % for road transport.

4.3

This good performance by short sea shipping is to a large extent based on high levels of investment by shipowners in ships and, in many cases, in intermodal logistics systems, improvements in efficiency and the sale of logistical services, the work of the National Short Sea Shipping Focal Points on the bottlenecks, the practical work of the coastal shipping promotion centres, and cooperation between the industry and the European Institutions.

4.4

The intention is not to undermine this success story by not regarding existing services based on initiatives by the private sector as motorways of the sea and to keep this designation exclusively for subsidised services. The EESC is pleased that the Commission has clarified the definition of motorways of the sea in the working document of 18.10. 07 accompanying the Communication on the EU's freight transport agenda of the same date, in particular that the term also includes existing services (11).

5.1

There is a fundamental difference between a motorway for road transport and a motorway for sea transport. Transport by lorry via a motorway connects two points in as straight a line as possible. In the case of sea transport, however, in practice cargo originating from or destined for a broad hinterland is transported via a number of different competing ports. The most competitive and efficient ports for a particular trade will then be included in the various sailing schedules of shipping companies.

5.2

The concentration of cargo on a limited number of selected ports will, however, have a negative influence on the efficient provision of services (12), and will undoubtedly lead to congestion in the ports and their surrounding areas. This does not help the sustainable development of transport.

5.3

Furthermore, the inclusion of certain ports in the motorways of the sea and the exclusion of others of similar size would also result in a distortion of competition between ports. The choice of ports must be left open in such a way that the others too, by constantly improving their efficiency, are able to develop into motorway of the sea ports.

6.1

Short sea shipping can play a key role in the further development of co-modality t, especially for longer distances. As stated in the Opinion on Freight Transport Logistics, the Committee considers that all transport modes have to be taken into consideration (13). Ports have a fundamental role in this as multimodal hubs. Various projects are being developed in this regard (14).

6.2

Bottlenecks in the logistics chain must be improved. The Commission is already carrying out a study of bottlenecks in freight logistics, which covers administrative as well as infrastructure and operational bottlenecks.

6.3

Both short sea shipping and the logistics services are short of highly qualified workers. The EESC reiterates the recommendation made in the Opinion on Freight Transport Logistics that more attention needs to be paid to recruitment education and training.

7.1

The problems concerning the current congestion in many European ports are now well known. This underlines the need for more ports in the same league to be eligible for further development as ports for short sea shipping.

7.2

The development and expansion of ports and hinterland connections is made more difficult and often significantly delayed and/or prevented by restrictions and interpretations of existing legislation and environmental requirements. In this context, delays of between two and 11 years were cited in the ESPO Annual Report 2006/2007 (15).

7.3

As was repeatedly stated by the industry in the consultation round regarding a new EU ports policy and the Green Paper on A Future Maritime Policy for the Union, this problem urgently requires proper attention (16). The EESC notes that the Commission does give proper attention to this issue in its Communication on a European ports policy of 18.10.2007 (17).

7.4

It is therefore also clear that support measures for the motorways of the sea should also focus in this context on infrastructure and in particular on the expansion of ports and hinterland connections. This approach also fully conforms with the concept of co-modality as proposed by the Commission in the Mid-term review of the White Paper on EU transport policy (18) and in the Commission Communication on Freight Transport Logistics (19).

7.5

This does not, of course, alter the fact that existing support measures for services, operational costs, and publicity must continue to be available.

8.1

As mentioned in 2.5, last bullet point, the Commission itself states that state aid may not distort competition with existing services. The impact of the subsidised motorway of the sea should be closely examined, taking account among other things of the general interest, to ascertain whether competition distortion is likely to occur.

8.2

This, however, is not easy. Short sea services serve the hinterland of the ports which they call at. As noted in 5.1, this hinterland can cover a fairly large area that can also be served by other ports.

8.3

It is therefore not possible when analysing the market concerned to concentrate on one specific port; rather the entire cargo market has to be considered in order to prevent the shift of cargo from one short sea shipping service or port to another.

8.4

As stated in 2.5, third bullet point, applicants for a new project for a motorway of the sea must demonstrate the viability and credibility of the project; here too monitoring should take place to ensure that a distortion of competition is avoided.

8.5

Transparency in the allocation of aid for projects is therefore essential. An immediate correction should likewise be made whenever it appears that cargoes artificially shift between coastal shipping operators or ports.

8.6

Support for motorways of the sea is intended to result in a transition from transport by road to transport by sea. The ECO bonus as proposed in Italy (20), whereby carriers receive subsidies if they take up this idea, is a good example of well-directed aid without distortion of competition.

9.1

As stated in 2.5, the Commission will use quality standards as one of the evaluation criteria for motorways of the sea projects. Depending on the specific services, the following criteria could be used: frequency, a delivery service that fits in with the production process, reliability, co-modality of the services (according to the Commission's definition, therefore, including the intrinsic merits of the mode), hinterland connections, efficient ports and junctions, e-logistics, optimal administrative procedures, etc.

9.2

In the Mid-Term Review of the Programme for the Promotion of Short Sea Shipping (21), the Commission states that the possibility of quality labelling will be examined for motorways of the sea. As stated in the Opinion on Freight Transport Logistics, the EESC believes that this must not generate more red tape and unnecessary costs for the sector (22).

10.1

Both in the above-mentioned Green Paper on a Future Maritime Policy for the Union and in the Mid-term review of the White Paper on sustainable transport, the Commission refers to a ‘common European maritime space’, i.e. a European maritime space without frontiers. The intention is clearly to simplify the administrative procedures for short sea shipping so that they would be in line with those for road transport.

10.2

The EESC has taken up a position with regard to a common EU maritime space both in its opinion on the above-mentioned Green Paper and in its opinion on a common EU ports policy (23):

‘The EESC understands that the concept of 'a common European maritime space', or a European maritime space without frontiers, refers only to a virtual maritime space in which there will be a simplification of administrative and customs formalities for intra-EU maritime services giving them a similar regime to transport by lorry, train or inland waterway within the internal market. If this is indeed what the Commission means and it is expressed clearly and unequivocally, the concept can be supported by the EESC, provided that in international waters (high seas) it respects the UNCLOS and IMO Conventions including the 'freedom of navigation' and the 'right of innocent passage' within the Exclusive Economic Zone (EEZ)’.

10.3

The simplification of customs procedures has been repeatedly requested by the Maritime Industries Forum (MIF) and the national contact points for the promotion of short sea shipping. In this connection, as early as 2002 the Commission published an advisory document with a view to encouraging the use of a simplified customs procedure for short sea shipping (24).

10.4

The implementation of this guide has not, however, solved all problems. The key problems are that it is necessary to obtain the status of regular service (authorised regular shipping service) which is directly linked to both the vessel and the shipping company concerned (transport operator). If another vessel has to be laid on, this has to be reported. If a vessel with intra-EU cargo calls at a non-EU port during its voyage, the simplified procedure for all intra-EU cargo is cancelled (infected vessel).

10.5

A solution would be to base this simplified procedure on the shipping company concerned (transport operator) and on the cargo. Intra-EU goods/cargo could then in all circumstances use a simplified procedure which should be the same as for road transport.

10.6

Multimodal liability needs to be looked into. This is being discussed by UNCITRAL. The EESC recommends an early agreement.

10.7

The EESC points out that security measures must not put sea transport at a disadvantage as against land transport.

11.1

Shipping is still the most environmentally friendly means of transport. With the exception of sulphur (SOx), shipping's performance in terms of emissions per tonne-kilometre or mile is better than other modes of transport. Nevertheless, measures should be taken to constantly improve this position. In this context, there is an ongoing process in the IMO (International Maritime Organisation) to revise the relevant Annex VI of the MARPOL Convention. This procedure deserves the fullest support in order to find a global solution.

11.2

Attention will be paid at the IMO talks to a possible extension of SECAS (25) whereby a lower limit for emissions would be applied. Short sea shipping is particularly vulnerable here given that short sea shipping operates de facto in coastal regions with frequent sailings. Particular attention must consequently be paid to avoid throwing out the baby (the promotion of short sea shipping) with the bathwater.

11.3

In the case of carbon (CO2) per tonne-kilometre or mile emissions too, shipping is fairly well placed. Independent sources (26) estimate that shipping accounts overall for only 1.75 to 2 % of global greenhouse gases. Measures are also being examined in this area with a view to steadily improving shipping's environmental performance.

11.4

The EESC recommends research and development as well as financial support for the reduction of shipping emissions, including improved fuel quality.

11.5

However, in addition to the question of emissions, attention should also be given to the monitoring of pollution of the maritime environment caused by increased coastal shipping.

11.6

The main purpose of the motorways of the sea is to shift transport from the road to the sea. This will have both a positive effect on the environment and direct consequences for society concerning such matters as congestion, noise pollution and road accidents. This should be borne in mind, without losing sight of the fact that continuous progress is needed on emissions from ships.

17.6.2008   

EN

Official Journal of the European Union

C 151/25

1.1

The EESC supports the Commission proposal, since it will foster innovation and competitiveness, boost competition on the telecommunications market and extend consumer choice.

2.1

Under the terms of Council Directive 87/372/EEC of 25 June 1987 (1), complemented by Council Recommendation 87/371/EEC of 25 June 1987 (2) and the Council Resolution of 14 December 1990 (3), the 890-915 and 935-960 MHz frequency bands (known as the 900 MHz band) were reserved and were to be occupied for the public pan-European cellular digital mobile communications service provided in each of the Member States to a common specification.

2.2

Market developments have led to general support for removing the reservation of the 900 MHz band for GSM, so that new and different digital technologies providing innovative services can be deployed in these frequency bands.

2.3

Decision No 676/2002/EC (4) of the European Parliament and of the Council of 7 March 2002 on a regulatory framework for radio spectrum policy in the European Community establishes a legal framework to ensure the harmonised availability and efficient use of the radio spectrum, where required to implement Community policies in areas such as communications, transport, broadcasting and research and technological research (RTD).

The EESC supported the proposal for this decision (5), considering that it would guarantee the rational, equitable, effective and economic use of frequencies for all radiocommunications services.

2.4

The purpose of the decision is to:

2.5

The decision allows the Commission to adopt technical implementing measures to ensure harmonised conditions for the availability and efficient use of the radio spectrum band. Thus, where harmonisation is required in order to safeguard legal certainty and Community policies, the Commission grants mandates to the CEPT to develop technical criteria at European level based on which spectrum harmonisation measures can be drafted and adopted by the RSC.

3.1

In order to remove the reservation of the 900 MHz band for GSM in the EU Member States, introduced by Council Directive 87/372/EEC of 25 June 1987 on the frequency bands to be reserved for the coordinated introduction of public pan-European cellular digital land-based mobile communications in the Community, this directive should be repealed by means of the adoption by the European Parliament and the Council of a specific directive for this purpose.

3.2

This is necessary in order to contribute to the success of the i-2010 — A European Information Society for growth and employment initiative (7) and also to achieve greater competition through the use of the 900 MHz band by other technologies, allowing users as much freedom of choice of services and technologies as possible.

3.3

In accordance with the provisions of Decision No 676/2002/EC, the Commission issued a mandate to the CEPT to develop less restrictive technical conditions. Under this mandate, conditions have been produced based on the principle that the 900 MHz may coexist and is fully compatible with GSM and UMTS. Future mandates can be issued to demonstrate the compatibility of other technologies with GSM, thus achieving a further opening of this band.

4.1

The EESC welcomes the form of the Commission's proposal for a directive, and considers it to be legislatively appropriate. The proposal forms part of the up-dating and simplification of the Community acquis that the EESC has supported in its opinions.

4.1.1

Extensive case-law of the Court of Justice has established that binding acts of institutional law can only be amended or repealed by subsequent acts of the same type. Thus the need to adopt a specific directive to repeal Directive 87/372/EEC is fully justified.

4.2

The legal context of the proposal would also appear to justify its adoption on several grounds.

4.3

Market developments in the telecommunications industry argue in favour of the introduction of new digital technologies which would coexist with GSM in using the 900 MHz band, and bringing about benefits from the widespread use of voice, data and multimedia services in rural or sparsely-populated areas at lower cost.

4.4

The Committee welcomes the fact that this technology will be used with low environmental costs due to the fact that it will work with less base stations.

4.5

These new technologies, such as UMTS, have also created a pan-European market for the related services.

4.6

The care taken by the Commission is also deserving of mention: the proposal is accompanied by other steps, such as plans to prepare technical harmonisation measures to ensure the continued use of the 900 MHz band by GSM services, and the use of the comitology provisions under the Radio Spectrum Decision in order to react rapidly to technological progress and introduce new harmonising legislation at EU level.

4.7

Both the necessary repeal of the above-mentioned directive and the future introduction of the new operating conditions for radio spectrum in the Member States are in line with the subsidiarity principle, since they are limited to the specific objective of ensuring the satisfactory use of the 900 MHz band, and are without prejudice to national decision-making powers regarding the use of this band by other, additional services, or the granting of spectrum use rights by the Member States.

4.8

The steps proposed or planned by the Commission are neutral with regard to the technologies and services used in the spectrum, enabling it to be used more flexibly and efficiently.

4.9

Spectrum management must be governed by the general principles of technological neutrality combined with service neutrality, flexibility and transparency, ensuring cultural and linguistic diversity, freedom of expression and plurality in the media, and reflecting the technical, social, cultural and political needs of all the Member States.

4.10

The EESC considers that efficient radio spectrum use is crucial to guaranteeing access to the various potential service providers and is consequently a key factor for growth, productivity and the development of European industry in line with the Lisbon Strategy, while also increasing consumer choice.

4.11

The proposal could benefit European citizens, inter alia, by reducing the hurdles to the deployment of advanced mobile communication technologies and overcoming the geographical digital divide, promoting social and territorial cohesion, increasing the quality of the services that may be provided and at lower cost, reducing the number of necessary base stations through greater use of lower frequencies, with the ensuing environmental benefit, and ensuring continuous protection of health against electromagnetic emissions, etc.

4.12

The EESC does however consider that the Community steps foreseen by the Commission could be complemented by introducing a range of measures of varying type and scope.

4.12.1

Firstly, from the broad legislative policy point of view, once the proposed legislation has been adopted, budget allocations should be provided in line with the provisions of Commission Communication COM(2006) 129 in order to facilitate, where appropriate, the creation of the necessary infrastructure in Member States lacking a suitable network of base stations. This must, however, be without prejudice to the special care that should be taken to protect the environment, so that such steps do not entail environmental impact costs.

4.12.2

Secondly, current Community legislation on public procurement and concessions must be adjusted in order to guarantee that any concessions granted by Member States for the use of radio spectrum meet conditions of transparency, non-discrimination and protection of the general interest.

4.12.3

Thirdly, the comitology decisions supplementing the legal aspect of pan-European radio spectrum must include specific provisions to ensure that current Community law on electronic accessibility is applied across the board. More specifically, such decisions will have to be concerned with the full exercise of the rights of the disabled, the elderly and citizens with little or no digital training, if progress in the digital field is to be properly harnessed, according to the provisions of Commission Communication COM(2007) 694.

4.12.4

To this end, a range of incentives — to be determined at the appropriate time — could be devised to encourage the telecommunications industrial sector and the Member State authorities, especially at regional and local level, in order to contribute to general access for citizens to every technological progress.

4.13

It is likely that the new technical conditions will have been produced without any further unnecessary financial or administrative burden at Community, national or regional level.

17.6.2008   

EN

Official Journal of the European Union

C 151/27

1.1

The European Economic and Social Committee welcomes the Commission's initiative to establish a European charter on the rights of energy consumers.

1.2

The EESC considers the charter to be a first step to make the rights of consumers stronger and more effective. As the Commission rightly points out, these are not protected if they are left to market forces alone.

1.3

The EESC believes that, where possible, the enactment of non-binding legislation should be avoided. The EESC concurs with the European Parliament resolution and believes that binding legal measures are needed to protect the rights of citizens, and that soft law measures do not fully achieve their aims. In the case of passenger rights, the Commission considered it necessary to enact a regulation, 261/2004 EC of 11 February 2004. It is not therefore clear why the rights of energy customers should be relegated to a non-binding document.

1.4

The EESC calls on the Commission, aside from the proposed changes to the directive currently undergoing approval, to look immediately into transforming the charter into a regulation on rights for European energy consumers.

1.5

The EESC believes that the rights enshrined in the directive should apply to all end users, in particular households and small and medium-sized enterprises. The electricity directive (2003/54) leaves it up to Member States whether or not to guarantee universal service, i.e. the right to an electricity supply of a specified quality at prices that are reasonable, easily and clearly comparable, and transparent, to small enterprises (with fewer than 50 employees and a total turnover of not more than 10 million euro).

1.6

The EESC believes that this unequal treatment is in no way justified, and that the right to universal service should apply at least to small and medium-sized enterprises throughout the EU. To achieve this, given that the third energy package, which is currently under consideration by the EESC, amends electricity directive 2003/54, the Committee strongly recommends that the Commission amend Article 2 to this effect, or broaden the scope of the Charter of Rights to include non-domestic customers.

1.7

The EESC considers it essential that ‘consumer’ should mean the final consumer, i.e. the customer of the energy supplier. The change in terminology between the Communication entitled An energy policy for Europe, which talks about an Energy Customers' Charter, and the proposal under discussion for a charter on the rights of energy consumers, creates uncertainty and confusion. Given the importance of a reliable and sufficient energy supply for the commercial operations of small and medium-sized enterprises, this deserves appropriate attention, especially in convergence and cohesion regions.

1.8

The universal service guarantee, extended to small and medium-sized enterprises, fulfilment of public service obligations, the protection of economically disadvantaged groups at risk of ‘fuel poverty’, economic, social and territorial cohesion, contractual freedom, the right to information, the right to be connected without delay, to have clear contracts and prices that are reasonable, easily comparable between different suppliers and transparent, the guarantee of a continuous supply, and awareness of the energy sources used, are all matters of the utmost importance. The Commission is absolutely right to point out that the market, left to its own devices, cannot muster the required level of social, environmental and economic awareness. The EESC wholeheartedly supports any initiative that goes in this direction simply and effectively, and calls on the Commission to use all of the most appropriate instruments.

1.9

The EESC recommends that consideration be given to whether it would be appropriate to bring within the scope of the third energy package further amendments to Annex A of the electricity directive, other than the three already planned.

1.10

At the end of 2001, the EESC suggested turning the ‘European Regulators Group for Electricity and Gas’ (ERGEG) into an Agency. It is pleased that the Commission has now implemented this proposal within the framework of the third energy package, and hopes that verifying the proper application of consumer rights, in particular the protection of vulnerable consumers, will be part of the future Agency's remit. The EESC supports the involvement of consumers' associations, small and medium sized enterprises, the industry and trade unions, thus emphasising cooperation and shared responsibility, as has already happened in the transport sector. A European round table, giving the Agency powers to intervene in and regulate the relationship between producers and end users, could be of considerable help in achieving the objectives. National regulators, for their part, should supervise markets in accordance with their remit.

1.11

The EESC welcomes the Commission's proposals set out in the annex to the Communication. If implemented effectively, these would strengthen the rights of consumers. In particular, it notes that the rights of public service and universal service will be effectively guaranteed, by identifying the supplier of last resort, which can step in if problems arise with the production of energy by a trustworthy supplier.

1.12

Uniform rules for the single market as regards contracts: transparency, implementing provisions, clear and non-burdensome handling of disputes, and compensation must be uniform to promote the cross-border mobility of consumers and open the European market to end consumers as well.

1.13

Reasonable, transparent and comparable prices. Understandable, detailed invoices containing useful information for consumers on the energy sources used for electricity production, on emissions of CO2 and other greenhouse gases, suggestions for saving energy, in line with Community policies.

1.14

Freedom to choose a supplier and to change supplier without undue delay or red tape, imposition of a limit on the minimum duration of contracts, are rights that go hand in hand with the completion of the market.

1.15

Information. Truthful, complete, with easily-understandable conditions of access and use, on charges, prices, and changes thereto.

1.16

In the area of complaints, it would be appropriate to make a firm choice in favour of extra-judicial conflict resolution, implementing Commission recommendations 98/257 and 2001/310.

1.17

The right to representation, via consumers' associations, must be made stronger and more effective. An open round table hosted by the new agency could be a forum for bringing together all the relevant stakeholders and to find the most ideal solutions to make consumer rights effective.

1.18

Fuel poverty means exclusion from a dignified life. It would be helpful to harmonise the definition of vulnerable consumers and the measures adopted to support them, avoiding the interruption of supply through a minimum service guarantee but also through the free provision of energy. The principle of responsibility should always be preserved.

1.19

Effective measures must be taken against unfair commercial practices, by updating the provisions relating to these in Annex 1 of Directive 2005/29/EC of 11 May 2005. Other unfair practices could be identified via the regulatory route, rather than amending the directive.

1.20

The EESC suggests that, as well as the new areas proposed by the Commission, consideration be given to those covered by some charters already signed by suppliers and consumers' associations, as has happened, for example, in some EU countries: the consumer's right to time, the right to participation and representation, the right to quality and safety, the right to the best price, the right to compensation and a rapid and effective conciliation procedure.

2.1

In its Communication of 10 January 2007 (1) ,  (2), the Commission announced its intention to publish a charter on the rights of ‘customers’ of gas and electricity suppliers. This was endorsed by the Spring Council of 8-9 March, which requested‘Better consumer protection, e.g. through the development of an Energy Customers' Charter’.

2.2

Recognising that market mechanisms alone cannot guarantee respect for the interests of consumers, the Commission points out that the existing directives already provide for public service obligations and guarantee consumer rights. Action on monitoring implementation and ‘effective’ enforcement of consumer rights and on reinforcing and extending those rights is announced.

2.3

The completion of the liberalisation of energy and gas markets on 1 July 2007 is the right time to launch an appropriate public information campaign, involving consumer organisations, on the advantages that should flow from the ability to choose a supplier and to continue enjoying the same rights.

2.4

Energy is essential for every European. The improved safeguard and reinforcement of consumer interests on a par with corporate interests is a prerequisite for a well functioning internal market.

2.5

Existing European legislation already requires compliance with public service obligations, which are a fundamental requirement of energy legislation. The priorities of sustainable development, of protecting the environment, consumers, and the most vulnerable sections of society, mean that public service obligations are a necessary addition to competition. ‘Well targeted universal and public service obligations for energy consumers must remain at the heart of the market-opening process.’

2.6

The European Union needs to go further in tackling ‘energy poverty’. The rising prices of fuels on the international markets are impacting on energy prices, creating growing problems for the weakest sections of European society. The Member States have not done enough about this: only five of them have tariffs for economically disadvantaged users. The future Charter will have to set out suitable ways of protecting the most vulnerable consumers.

2.7

The key goals. The four goals already proposed by the Commission are repeated (3):

2.8

The future European Charter on the Rights of Energy Consumers will not be a legal document. It is to include:

2.9

New key points to be covered by the Charter are identified:

2.10

According to the principle of shared responsibility, all the interested parties: the Community, the Member States, the energy industry, representatives of all the social partners and consumers associations need to help secure a successful, consumer-oriented energy policy.

2.11

For each key point, the annex sets out the rules currently in force and the initiatives that could be taken by the Commission, the Member States, or through agreements between the interested parties or self-regulatory codes of practice.

3.1

The EESC proposes to consider the following aspects: the legal framework; who is covered by the Charter; the efficacy and proportionality of the Commission proposal and the appropriateness of other possible instruments; the role of the Agency and of national regulators; other proposals or initiatives of a general or specific nature.

3.2

Article 38 of the European Union Charter of Fundamental Rights, which covers consumer protection, states that ‘Union policies shall ensure a high level of consumer protection’. This article is based on Treaty Article 153, which tasks the Community with ensuring a high level of consumer protection, and promoting consumers' right to information and to organise themselves in order to safeguard their interests. In addition, consumer protection requirements must be taken into account in defining and implementing other Community policies and activities.

3.2.1

The Treaty of Amsterdam, which reworded the former Article 129 A of the treaties into the current Article 153, firmly established the Community's competence in the area of consumer protection (4).

3.2.2

The EESC welcomes the Commission's decision to strengthen the rights of consumers and to collate both the measures currently provided for under Community legislation (5) and the proposals for future initiatives that might be taken at various levels in a Charter on the Rights of Consumers.

3.2.2.1

However, it points out that the various forms of consumer protection adopted in the individual Member States cannot yet be said to guarantee the provisions of the directives currently in force as universally recognised rights. The so-called non-binding nature of the Charter, which brings together requirements on some issues with options for self-regulation and moral persuasion of Member States and suppliers, risks creating confusion.

3.2.2.2

The European Parliament Resolution of 4 September 2007 on the institutional and legal implications of the use of ‘soft law’ instruments states, in recital X: ‘where the Community has legislative competence, but there seems to be a lack of political will to introduce legislation, the use of soft law is liable to circumvent the properly competent legislative bodies, may flout the principles of democracy and the rule of law under Article 6 of the EU Treaty, and also those of subsidiarity and proportionality under Article 5 of the EC Treaty, and may result in the Commission's acting ultra vires.’

3.2.2.3

In point 1 of the resolution, tabled by Manuel Medina Ortega MEP (6), the Parliament ‘considers that, in the context of the Community, soft law all too often constitutes an ambiguous and ineffective instrument which is liable to have a detrimental effect on Community legislation and institutional balance and should be used with caution, even where it is provided for in the Treaty’ and, in point 8, specifically ‘calls on the Commission to give special consideration to the effect of soft law on consumers and their possible means of redress before proposing any measure involving soft-law instruments’.

3.2.3

The EESC suggests that a distinction be made between enforceable ‘rights’ and other forms of protection, with the future Charter clearly distinguishing existing rights from the other proposals for initiatives that will or might be taken at various levels, which are considered desirable but not binding.

3.2.3.1

The EESC wonders, in the light of experience to date, which the Commission itself describes as unsatisfactory, and in the light of the powers conferred on the Commission by the Treaties, whether it might not be more appropriate to look at introducing a few new, clear rules to strengthen consumer protection, in particular as regards the most vulnerable consumers. The subsidiarity principle set out in Treaty Article 5, so often mistakenly quoted to oppose Community initiatives, should in this instance apply in support of decisions that benefit consumers, in the absence of effective national legislation.

3.3

The EESC highlights the uncertainty of the legal frame of reference as regards identifying those to whom the Charter and the associated rights apply within the scope of the various European legislation. The Communication ‘An energy policy for Europe’ (7) states: ‘The Commission will develop an Energy Customers' Charter’.

3.3.1

Article 2(7) of Directive 2003/54/EC of 26 June 2003 defines ‘customers’: wholesale and final customers of electricity; ‘final customers’: customers purchasing electricity for their own use; ‘household customers’: customers purchasing electricity for their own household consumption; and ‘non-household customers’: any natural or legal persons purchasing electricity which is not for their own household use, [including] producers and wholesale customers.

3.3.2

Directive 2005/29/EC of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market is cited by the Commission as a legal reference source for the part of the Charter relating to the right of consumers to have fair and transparent relations with their suppliers. Article 2(a) of the Directive defines a ‘consumer’ as any natural person who, in commercial practices covered by this Directive, is acting for purposes which are outside his trade, business, craft or profession.

3.3.3

The EESC believes that the rights enshrined in the directive should apply to all end users, in particular households and small and medium-sized enterprises. The electricity directive leaves it up to Member States whether or not to guarantee universal service, i.e. the right to an electricity supply of a specified quality at prices that are reasonable, easily and clearly comparable, and transparent, to small enterprises (with fewer than 50 employees and a total turnover of not more than 10 million euro).

3.3.4

The EESC believes that this unequal treatment is in no way justified, and that the right to universal service should apply at least to small and medium-sized enterprises throughout the EU. To achieve this, given that the third energy package, which is currently under consideration by the EESC, amends the electricity directive 2003/54, the Committee strongly recommends that the Commission amend Article 2 to this effect, or to broaden the scope of the Charter of Rights to include non-domestic customers.

3.3.5

The EESC considers it essential that ‘consumer’ should mean the final consumer, i.e. the customer of the energy supplier. The change in terminology between the Communication entitled An energy policy for Europe, which talks about an Energy Customers' Charter, and the proposal under discussion for a charter on the rights of energy consumers, creates uncertainty and confusion. Given the importance of a reliable and sufficient energy supply for the commercial operations of small and medium-sized enterprises, this deserves appropriate attention, especially in convergence and cohesion regions.

3.4

The EESC considers the proposal to publish a Charter on the Rights of Energy Consumers to be important because of the impact it may have on public opinion, opening up the debate immediately after the opening of the internal market, and increasing users' awareness of the energy market. However, this instrument appears weak in that, unlike the case of transport, where the Passenger Rights' Charter contains clear references to rights and equally clear references to compensation due, the Charter in the Commission proposal would not be binding in nature, except for those parts that are already covered by previous directives. It would be a directory, rather than a strengthening, of rights. The expectations raised by Commissioners Piebalgs' and Kuneva's statements at the presentation of the document under consideration may be disappointed.

3.4.1

‘EU consumers expect us to shape a common European response to energy and climate change challenges’, said EU Energy Commissioner Andris Piebalgs. ‘And as well as providing them with a sustainable, secure and competitive energy supply, they expect the EU to work to protect consumers' rights as energy markets are opened up to greater consumer choice. This is where the proposed Energy Consumers' Charter comes in.’

3.4.2

‘The opening of these markets represent both a challenge and an opportunity for European consumers’, said EU Consumer Commissioner Meglena Kuneva. ‘Only when we have succeeded in creating a transparent and efficient market where consumers' rights are fully safeguarded and informed consumers use their knowledge to take advantage of the offers available, can we conclude that we've reached our goal.’

3.4.3

The EESC concurs with the European Parliament resolution and believes that binding legal measures are needed to protect the rights of citizens, and that soft law measures do not fully achieve their aims. In the case of passenger rights, the Commission considered it necessary to enact a regulation, 261/2004 EC of 11 February 2004. It is not therefore clear why the rights of energy customers should be relegated to a non-binding document. A Charter is being published because the rights that currently exist are not properly respected. Apart from a few praiseworthy exceptions, transposition into national law has been deficient. The Commission has the power and the responsibility to intervene, but prefers a non-binding instrument, even though it knows full well that the market alone is not in a position to provide appropriate and adequate solutions.

3.4.4

It should reflect the Commission report (8) on the operation of the regulation on passenger rights, which states ‘After more than two years of application of…Regulation [(EC) 261/2004], progress has been made but substantial improvement is necessary if more consistent application of the rules by airlines and more consistent enforcement of the rules by the Member States are to be achieved. In contrast with the past, stranded passengers now have specific rights, but too often they are in a weak position compared to the airlines.’ It is clear that, even though its requirements are binding, the airlines are not complying with the provisions of the directive. Why should gas and electricity suppliers be expected to do so when faced with a non-binding Charter?

3.4.5

Drawing on past experience gained in this and other economic sectors, the EESC considers it appropriate to recommend the adoption of legal measures that fully guarantee the rights of consumers. The proportionality of a proposal is based on the extent to which it achieves the desired objectives and on the need for legislative acts. In this case, despite having the powers to propose legislation, the Commission prefers a different approach. The EESC believes that the choice of instrument is objectively inadequate to achieve the stated objectives. The Charter can at best be a first step, but the European legislator needs to move towards strengthening rights in an effective manner.

3.4.6

The universal service guarantee, extended to small and medium-sized enterprises, fulfilment of public service obligations, the protection of economically disadvantaged groups at risk of ‘fuel poverty’, economic, social and territorial cohesion, contractual freedom, the right to information, the right to be connected without delay, to have clear contracts and prices that are reasonable, easily comparable between different suppliers and transparent, the guarantee of a continuous supply, and awareness of the energy sources used, are all matters of the utmost importance. The Commission is absolutely right to point out that the market, left to its own devices, cannot muster the required level of social, environmental and economic awareness. The EESC wholeheartedly supports any initiative that goes in this direction simply and effectively, and calls on the Commission to use all of the most appropriate instruments.

3.5

The EESC welcomes the proposed regulation, contained within the third energy package, establishing an Agency for the Cooperation of Energy Regulators (9). In its opinion of 17 October 2001 on the second energy package (10), the Committee called on the Commission ‘after an assessment of its operation, to consider transforming this Council [ERGEG] at some future date into a European Agency or similar body, with responsibility for matters relating to international transport in electricity and natural gas’. The Committee is pleased at having proposed the creation of the Agency so far ahead.

3.5.1

The Commission Communication on Prospects for the internal gas and electricity market  (11) announces a strengthening of the directives that relate to the powers of national regulators. In point 2.2.1, the Commission ‘considers that regulators need strong ex-ante powers over the following areas: […] vii) consumer protection including any end-user price controls’. Sadly, there is no trace of that ‘strengthening’ in the documents relating to the third energy package. Some powers of regulatory authorities are indeed strengthened in the new chapter VII a of the new Energy Directive: regulators are asked to ensure ‘high standards of universal and public service for electricity [and gas], the protection of vulnerable customers, and that consumer protection measures set out in Annex A are effective’, but these powers have already been given to almost all regulatory authorities.

3.5.2

In the new Energy Directive, the Commission also proposes an amendment to Annex A, adding three paragraphs. One relates to the right to access to consumption data, the second to the right to be properly informed every month of actual electricity consumption and costs, and the third to the right to change supplier at any time. The EESC welcomes the proposal, but wonders why, given that it could have taken more weighty initiatives, the Commission did not use the main instrument, i.e. the revision of the directive, to achieve its stated aim of strengthening the rights of consumers.

3.5.2.1

The Commission proposal to amend Article 3 by adding a new paragraph 10, which assigns some parts of the regulation to the comitology procedure, could be the ideal instrument for strengthening the rights of consumers, since Committee decisions relating to matters assigned to them enter into effect immediately. The EESC recommends that the European institutions adopt this point of the Commission proposal.

3.5.2.2

The annex to the Communication Towards a European Charter on the Rights of Energy Consumers sets out, in addition to existing rights (which are difficult to enforce), a few ideas for new rights in the future. Including these proposals in Annex A would be a first step towards making them binding and would then prepare the ground for the adoption of a specific regulation protecting the rights of final consumers.

3.5.3

The EESC believes that the future tasks of the European Agency should also include monitoring respect for consumer rights. In relation to this, provision should be made for the involvement of consumers' associations, small and medium sized enterprises, the energy industry and trade unions, thus emphasising cooperation and shared responsibility, as has already happened in the transport sector. In other words, a European round table, giving the Agency powers to intervene in and regulate the relationship between producers and end users.

3.5.3.1

In the institutional order, the agency will need to have binding powers within the limits of its remit. It will be made up of representatives of the national regulatory authorities and will set up technical committees involving all the national regulators. The EESC hopes that its remit will also cover consumer protection, in consultation with the round table. This would make it possible to act more effectively to achieve the objectives set by the Commission in the Charter of Rights. As long ago as 2001, the EESC highlighted ‘the need for these authorities to operate in a more transparent and democratic way by allowing the various agents involved in the electricity and natural gas markets (i.e. consumers, workers and companies) to participate in the decision-making process’ (12).

3.5.3.2

National regulators, for their part, will be able to participate actively in setting a generalised protection strategy and will have more power to ensure compliance with the law.

4.1

In its opinion on the 2001 Energy directive (13), the Committee welcomed the fact that the Commission considered meeting public service objectives as one of its fundamental objectives and that this should involve adopting measures to ensure a high level of consumer protection, with special provision for the most vulnerable members of society, such as social measures to provide certain groups with energy supplies at a fair price. Unfortunately, experience in this area has not been positive.

4.2

‘Cross-border electricity flows in Europe have increased modestly year on year since market opening. However, on average, only 10 % of electricity consumed in the EU crosses Member States' borders (14).’

4.3

‘The blackout in Italy in 2003 and in the UCTE (15) in 2006 showed how costly any incident in the European-wide transmission network can be. Therefore it is important for increase in trade to be accompanied with more co-ordinated network operation and the building of new infrastructure, including upgrading existing lines, building new lines and investing in other network components, where needed. (…) The European market is increasingly based on a regional concept. This first developed naturally, following the physical realities of the network. With the establishing of the regions in the amended congestion management guidelines and with the development of the Electricity Regional Initiatives by ERGEG, the regional approach has received an official status. (16)’

4.4

End-consumers have a specific interest in having a guaranteed energy supply. The growing role of the regions in the field of energy should bear fruit for distribution and the development of closer ties, especially between cross-border regions, which should generate a significant increase in traffic and flows, reducing the risk of congestion.

4.5

Protective measures for end-consumers should include the right to be informed periodically on the quantity of energy exchanged, its geographical origin and source, greenhouse gas emissions in kWh, and Community and extra-European cooperation agreements. It is well known, for instance, that countries that have decided not to use nuclear energy buy energy produced by nuclear power stations. This information should be given to consumers, who might decide to change suppliers if they do not agree on the energy mix. Currently users are certainly in the dark when it comes to these choices.

4.6

Connections. A guaranteed universal service, continuity of supply and definite user connection times are all existing rights that prove difficult to uphold. Provision should be made for a ‘last resort supplier’ to be identified, to guarantee service provision should a supplier be unable to deliver.

4.7

Contracts. Transparency, implementation procedures, obligations, compensation, fairness, the absence of misleading or unfair clauses, and clear, straightforward dispute management: in theory these are all rights that every Member State recognises and should have transposed from directives into national legislation. The reality is very different. The Commission has included changes to Annex A in the third package, increasing the obligations for companies, but there is a danger that these will prove meaningless, as apart from in a few rare cases there is no efficient system for imposing sanctions, either at European or national level. On this subject in particular there is a need for common rules throughout the EU, governed by a regulation alone, as in the case of passenger rights.

4.8

Prices, tariffs, and monitoring. There is a need for transparency, logic, comparability, multiple payment methods, the dissemination of smart meters, and clear and comprehensible invoices relating to actual consumption. It is very important that fuel bills give a clear breakdown of the cost of energy production (purchase of fuel, distribution, maintenance, amortisation, taxes, and personal and general duties), sources (fossil, hydroelectric, renewable, nuclear, combined cycle), CO2 emissions, energy savings made, comparisons with previous consumption and the average consumption of other users with the same profile. An informative tool of this kind can enable consumers to consider the need to act in order to save energy. Bills enable suppliers to communicate with consumers (and according to the Commission's recent proposal should be monthly); they can also be the vehicle for a series of ‘positive messages’ to promote European policies.

4.9

Free choice of supplier. It should be possible to change supplier at any time of year, free of charge, without prejudice to one's rights. There should be a guarantee that the change will be made within a set time. Sometimes contracts stipulate a minimum duration. The EESC believes that in such cases there should be a ceiling on the minimum duration of contracts, so as not to undermine the right to choose a supplier by imposing exaggeratedly long durations and large penalties.

4.10

Information. Information must be truthful, complete, and easy to understand when it comes to conditions of access and use, charges, prices and changes thereto. Consumers must be made aware of their rights with regard to public service charges and the procedures according to which the universal service is secured, in particular regarding the quality and continuity of the electricity or gas supply, compensation for failure to uphold those rights, and free or low-cost access to dispute settlement arrangements, so as to ensure all enjoy the same rights. All suppliers should provide a list of all operators active in the region annually or whenever a new supplier enters the market. Suppliers should also inform their customers of the financial, tax and legal measures designed to support initiatives to improve energy efficiency and should offer practical suggestions on ways to save electricity or gas.

4.11

Complaints. In 1998, Commissioner Bonino was very active in support of consumer rights and the Commission issued a recommendation (17) on bodies responsible for the out-of-court settlement of consumer disputes; this was then in 2001 (18) incorporated within a further recommendation so as to broaden its scope. In the context of energy consumers' rights, attempts should be made to resolve disputes primarily in out of court settlements, as an effective and low-cost way of offering consumers protection promptly, providing the bodies responsible are impartial and the procedure is efficient, public and transparent. Given the scope of contentious jurisdiction in the realm of energy supplies, it would be inappropriate to devote time and resources to court cases.

4.12

Representation. Despite recognition in European legislation, it has proved difficult to implement the right of consumer associations to representation. The absence of a Community legal framework on class actions, even in the realm of cross-border services or economic activities, further restricts this right to take out court injunctions. The establishment of the European Agency might be the time to make this right a reality and carry through the option of setting up a permanent round table for all the stakeholders, as is the case for instance in the application of the ‘Cars’ directive, in the transport sector, with representatives of both sides of industry and consumers called upon to assist Community bodies in analysing the proposals. Similarly, a permanent round table should meanwhile be set up in the Member States, to be consulted by national regulators.

4.13

Social measures. The Committee is very aware of the issues involved in fuel poverty. Cutting off supplies in the case of arrears should be outlawed. In a recent opinion, the EESC stated that: ‘A European energy policy must be sustainable by all social groups, so that all are treated equally as regards access to the services provided by energy suppliers’ (19). The EESC is not in favour of free energy supplies, as this would not encourage good energy saving behaviour; it does argue however that the issue should be addressed through general taxation. Public service contracts should provide for the provision of a reserve of electricity and gas at cost price, in order to meet the needs of the most vulnerable consumers, to be sold to them in sufficient quantities at affordable prices. The principle of responsibility should always be preserved. In any case, the definition of a vulnerable consumer and the measures to be adopted to assist them should be the same throughout the Union, so as not to discriminate against anyone, and so as to avoid distorting competition.

4.14

Unfair commercial practices. Consumers are protected from misleading sales practices where false information is provided and the relevant information necessary to make an informed decision is omitted, creating obstacles and applying unjustifiable costs to discourage consumers from changing supplier. The EESC believes that consumers' rights must be strengthened against such practices. Article 5, paragraph 5 of Directive 2005/29/EC of 11 May 2005 refers to Annex 1 which contains a list of those practices which shall in all circumstances be regarded as unfair, but adds that the list may only be amended by revision of the directive. As the time necessary to update the list seems inordinately long, the regulation that should contain measures for protecting energy consumers might be the ideal place to include specific energy consumer rights against unfair sales practices.

5.1

The EESC recommends that the Commission examine a number of consumer rights charters already agreed in the Member States between consumer organisations and energy suppliers, in which the rights granted to customers have more substance than those planned for in the EU charter. For instance, in Italy, a consumer rights charter in the area of social responsibility has been in place for years between the ADOC, a consumer organisation, and La220 s.p.a., an electricity market wholesaler. It goes beyond what the Commission is suggesting. For instance, this charter provides for respect for consumers' time, the right to participation and representation, the right to quality and safety, the right to the best price, the right to compensation and a rapid and effective conciliation procedure. There are ongoing six-monthly checks that the charter is being properly applied; this is binding for companies as it is written into their contracts with clients.

5.2

Some national regulators intervene to manage disagreements, establishing a system of obligations, controls and penalties to regulate the continuity of the energy distribution service (20). In the event of sudden power surges, electricity cuts or blackouts, there is no doubt that having failed to fulfil its supply contract obligations the supplier must pay damages, unless it can prove that it is not to blame for the cut (21).

17.6.2008   

EN

Official Journal of the European Union

C 151/35

17.6.2008   

EN

Official Journal of the European Union

C 151/35

17.6.2008   

EN

Official Journal of the European Union

C 151/36

1.1

The EESC recommends that Member States define Community priorities from among the activities described in general terms by the White Paper and in the action plan it contains; this should be done in accordance with the Lisbon Treaty, which will hopefully enter into force in 2009, since Article 149 of the Treaty primarily focuses on the role of sport in relation to education and youth.

1.2

Europe's future depends on the health and productivity of its people. The EESC is deeply concerned that diseases affecting the entire population caused by overweight and a sedentary lifestyle have become a problem for young people too.

1.3

The EESC recommends that, when planning new programmes to promote health-enhancing sport, both Community and multidisciplinary dimensions should be taken into account. A joint approach by several departments at Community level could have a positive impact on the fragmented measures implemented by governmental structures at national level.

1.4

The EESC would draw attention to the importance of implementing measures which are both necessary and consistent with the subsidiarity principle. The EESC calls on the European Commission to continue playing a strong role in coordinating and inspiring the work needed in this field.

1.5

Compulsory physical education in both primary and secondary schools should be increased to at least three hours a week. The Committee recommends that tertiary education also include opportunities to practise sport, and that physical education classes be made a compulsory element of syllabuses. Physical education in primary and secondary schools and as part of third-level studies must — whether provided individually or as a group — be accessible to all children and young people, including those with disabilities. Moreover, attention should be paid to the conditions under which school sport is carried out, especially the shower and wash facilities; these are often off-putting and do not provide young people with much incentive to practise sport.

1.6

The social partners at all levels should be encouraged to promote healthy lifestyles. Employers should be given incentives for measures to improve employees' health, including exercise programmes.

1.7

We suggest setting up a working group on the subject to review the experiences of Member States and to explore options, not least ways of including people with disabilities.

1.8

The EESC feels that it would be useful to launch information campaigns on new opportunities to apply for funding, given that up to now programmes have only offered limited opportunities for sport. The EESC recommends that awareness-raising initiatives form part of a comprehensive, integrated strategy. Information measures should not be aimed solely at young people, but should be based on awareness of the fact that sport can benefit all age groups, including people with disabilities.

1.9

The EESC recommends that a separate envelope be established within the Structural Funds, which could be used for appropriate sport, leisure, community and multifunctional facilities. It would point out, however, that local and regional authorities often tend more towards the building of large sports stadiums, rather than the construction of sports facilities for the general public. Structural funds resources should above all be used for building precisely the latter type of facility.

1.10

The EESC welcomes the proposal to re-establish the Sports Forum, given its potential to serve as a valuable platform for dialogue between all key stakeholders and to develop concrete measures for securing improvements in the practice of sport.

1.11

The EESC would be very happy to participate in the Sports Forum as an observer, thus enabling the views of civil society to have a direct impact.

1.12

The EESC recommends that the activities of the working group on sports funding be extended to reviewing sports-related national taxation and social security rules and to compiling best practices.

1.13

The EESC feels that there is a need to combat crime in the areas surrounding venues for major national and international sports events, particularly with regard to protecting women and children.

1.14

In the EESC's view, the directors/executive directors of sports organisations that benefit directly or indirectly from Community funding, that participate in competitions with professional teams and athletes and whose annual budget exceeds EUR 5 million should, like public and political office-holders, submit proof every year of the provenance of their income and assets.

1.15

Social dialogue should be broadened to include gyms and non-profit organisations as well as professional athletes, as well as the following activities: sports teachers and coaches, sports scientists, sports doctors, physiotherapists, masseurs, etc. Professional groups which generate significant revenue from sport as trainers, managers, organisers, agents, promoters, marketing specialists, etc., should also be included. Member States should be encouraged to ensure that there is also national-level social dialogue in all fields of sport.

2.1

Sport is linked to various aspects of society: education, culture, economic activity and free competition, the free movement of persons and goods, human rights and healthcare. Apart from its economic significance, there are clearly many other reasons why sport is of great importance for society.

2.2

Over the past few decades, sports clubs have undergone considerable changes: they have become less and less national and amateur (voluntary) in character, while many now operate in the form of companies, and are thus subject to Single Market rules.

2.3

The EU does not yet have direct legal jurisdiction over sports issues. Legal effects on sport arise from secondary European legislation (e.g. case law) or direct application of primary legislation which is applicable to sport as well.

2.4

Prior to publication of the White Paper there was no EU-level strategy on sport, but sport was always covered in a variety of European policy areas. It was mentioned in the Amsterdam Treaty of 1997, followed by the 1999 Helsinki Report on sport, in which the European Commission announced measures to strengthen its social and educational role. All of these documents emphasise the social, societal and educational value of sport.

2.5

In 2000 the Nice Declaration also dealt with sport, and at the 2004 intergovernmental conference it was decided that sport be included in the EU Treaty.

2.6

The European Parliament has likewise adopted two reports on sport-related subjects (1); in addition, an important paper on European sport has been produced independently of the Commission, by the Independent European Sport Review  (2), the first part of which discusses European sport in general, the second part analysing sport using European football as a case study.

2.7

The Lisbon Treaty, which will hopefully be adopted in 2009, devotes a separate paragraph just to sport, and as a result sport has finally become an area of EU responsibility.

2.8

The drafting of the White Paper was preceded by a lengthy process of consulting government bodies, NGOs and organised civil society in Member States, Olympic committees and decision-makers, as well as conferences and informal ministerial meetings, in parallel with an online consultation lasting several months, which received 777 responses. Several meetings were held by the various EU directorates-general to hammer out agreement on the sport-related aspects of each policy area. The White Paper sets out wide-ranging initiatives for both amateur and competitive sports, while acknowledging that sport remains a matter of national responsibility.

2.9

After analysing the findings of the consultations, it has become clear that the key issues for sport are concentrated in three main areas. They are as follows:

2.10

In addition to these areas, six other separate problems have been identified, all of which are quite different from one another:

2.11

As a result of these analyses, the Commission has acknowledged that the European Union needs to take the specific characteristics of sport more into account and to address the challenges identified. It has become apparent that there is a need for existing and planned EU programmes and measures to attach greater importance to sport, and decisions will have to be taken on how EU funding can be used to support sports-related projects. It has also emerged that closer dialogue and political cooperation on sport are needed at EU level.

3.1

The White Paper states that ‘its overall objective is to give strategic orientation on the role of sport in Europe, to encourage debate on specific problems, to enhance the visibility of sport in EU policy-making and to raise public awareness of the needs and specificities of the sector. The initiative aims to illustrate important issues such as the application of EU law to sport. It also seeks to set out further sports-related action at EU level’ (3).

3.2

The White Paper comprises fifty three specific measures, as well as a discussion of the positive role played by sport in many areas of society. The list of planned measures, named the ‘Pierre de Coubertin’ Action Plan, is included as an appendix to the White Paper. The plan has two basic objectives:

4.1

The EESC's detailed comments in the following paragraphs are organised in line with the structure of the White Paper.

4.2

The EESC fully concurs with the analysis of the important and positive role which sport plays in society.

4.3

The EESC is pleased that the European Commission will make health-enhancing physical activity a cornerstone of its sport-related activities, and therefore approves the guidelines on physical activity, as well as the idea of setting up a health-enhancing physical activity (HEPA) network. It is a scientifically proven fact that a sedentary and inactive lifestyle increases the occurrence of obesity and a number of chronic conditions. The cost of treating such illnesses and of lost working time is a heavy economic and budgetary burden; it is cheaper to spend money on prevention in the form of physical activity. Developing age- and gender-specific sports facilities and promoting sports facilities for pensioners is an effective means of preventing accidents and reducing the risk of dependence on care. For this to happen there will also have to be a change of mindset as a society.

4.4

The EESC agrees that cooperation across sectors is important, and that existing Community programmes (research and development, public health, youth, citizenship and lifelong learning) should from now on take sport into account.

4.5

The EESC welcomes the fact that the White Paper discusses the need to coordinate anti-doping measures, and sees a need for Member States to coordinate their anti-doping activities with those of existing international organisations, particularly with a view to avoiding possible duplication so that resources can be used more efficiently. At present, anti-doping measures are inadequate, and young people are not being deterred from using performance-enhancing drugs. The EESC recommends carrying out a study into the legislative situation in Member States together with a comparative analysis of legal shortcomings and loopholes.

4.6

The EESC notes that registers set up to prevent doping raise questions about personal data protection, as provided for by Community legislation.

4.7

The EESC is pleased that the White Paper discusses the possibility of supporting sport and physical activity through existing Community programmes covering education and training (Comenius, Leonardo, Erasmus, Grundtvig, EQF and ECVET).

4.8

The EESC welcomes the study on training for young sportsmen and women. It recommends that a study be undertaken on sports clubs' responsibilities to talented young sportsmen and women, the aim being that at the end of their career, they are provided with vocational training and support for their integration into the labour market.

4.9

The EESC stresses that training systems for talented young sportsmen and sportswomen should be open to all and enable the free movement of labour. However, the issue of locally trained players requires careful analysis, given that clubs play a key role in identifying and training young talent, in which they invest substantial resources, thus fulfilling socially useful functions. Clubs must be encouraged to continue these activities.

4.10

The EESC notes with satisfaction that the White Paper devotes considerable space to non-profit sports organisations, voluntary activity and grassroots sport, given that much of European sport is played out in this context.

4.11

At the same time, the EESC would point out that, due to the fact that there is such a variety of traditions in this domain, the situation of non-profit organisations differs from country to country in terms of funding, economic activity and support from central or local government. The EESC hopes that the planned study on this subject will investigate these differences.

4.12

The EESC welcomes the recognition given to the fact that EU measures and programmes could help make better use of sport's potential as an instrument for social inclusion, with a view to encouraging close cooperation between socially excluded and disadvantaged social groups, and society as a whole.

4.13

The White Paper discusses the issue of sport for people with disabilities. The EESC is pleased to note that the document discusses the provision of accessible facilities and of training for staff and volunteers helping people with disabilities.

4.14

The EESC is pleased to note that mention is made of women participating more widely in sport and playing a more active role, and of promoting equality between men and women. The pursuit of sports by women can have a positive impact on sport for families and children, thus conferring considerably broader societal benefits.

4.15

The EESC welcomes the idea of cooperating with existing national and international organisations to prevent violence at sports venues, and feels that it is vital to avoid duplication of effort so that resources can be used more efficiently.

4.16

The EESC points out that cooperation between EU Member States on preventing violence at sports events currently takes place in the context of cooperation on home affairs in the Police Cooperation Working Party (PCWP).

4.17

The EESC is pleased that the document acknowledges the economic impact of sport and its potential for job creation, but is disappointed that it does not discuss the possibility of making existing EU funding available in future for sport, leisure, community and multifunctional facilities which meet set criteria.

4.18

The EESC feels that it would be very helpful for decision-making purposes to put in place a system for standardised statistics on sport at EU level.

4.19

The EESC would also point out that there are differences between national sports structures and statistical systems, and that many of the economic benefits of sport are expressed by indicators which cannot be readily measured (e.g. reducing time on sick leave and expenditure on medicine, and enhancing social cohesion).

4.20

The EESC feels that Eurobarometer surveys are useful, and also welcomes the planned study on the links between the sports sector and the Lisbon process, as well as the exchange of experience on major sports events.

4.21

Given the variety of European sports structures referred to above, the EESC welcomes the idea of a study by the Commission into funding for sport in the Member States and the associated tax breaks or incentives.

4.22

In the EESC's view, the relationship between the specificities of sport and European legislation is a question of crucial importance, and there is a strong need to clarify this point for sports organisations.

4.23

The EESC feels that work must continue towards a more appropriate solution. In the long term, the application of case law does not ensure sufficient legal certainty for sports stakeholders.

4.24

The need to align the rules and interests of sports organisations with European legislation ties in with several other issues: the planned impact assessment on players' agents, the planned dialogue on licensing systems for clubs, and the joint selling of broadcasting rights for sports events. The EESC supports these proposals.

4.25

The EESC agrees that there is a need to protect minors engaging in sport and welcomes the activities set out in the White Paper: monitoring the directive on the protection of young people at work, commissioning a study on child labour and informing Member States of existing legislation.

4.26

The EESC fully supports all efforts to combat sport-related crime (corruption, money laundering) and to draw up European strategies on this subject.

4.27

The EESC agrees that there should be stable licensing systems for professional clubs in the EU, ensuring transparency of their operations.

4.28

The EESC feels that it is very important to share revenue from the media by means of solidarity mechanisms, and thus to support amateur sport.

4.29

Concerning the numerous activities referred to in this opinion, the EESC welcomes further dialogue and agreements, both between the Commission, the Member States and NGOs, and also between European institutions.

4.30

The EESC is strongly in favour of setting up European-level social dialogue committees (4) to ensure that such dialogue strengthens the workings of the single European labour market in sport. European-level social dialogue should include not only employers (clubs) and employees (athletes, coaches, and support staff), but also manufacturers of sports equipment and international organisations active in various sports sectors.

4.31

Athletes' pension funds, advertising and image rights, health at work, home-grown player issues, employment contracts and assistance for athletes in finding new careers once their sporting careers are over are possible subjects for European social dialogue.

17.6.2008   

EN

Official Journal of the European Union

C 151/41

1.1

Education has always been acknowledged to be not only a key aspect of personal development and growth but also a factor for the development of society itself. In a globalised and highly competitive world, education is even more crucial to the future of both society and individuals, given the wealth of knowledge and skills that people are now expected to have.

1.2

The EESC considers that education's main purpose is still to train people to be free, critical, independent and able to contribute to improving the society in which they live, with the necessary skills to face new challenges, whilst understanding that they are part of a cultural legacy and share the same values and that the world in which they live does not revolve around them alone and should, therefore, be preserved for future generations. Education also has a duty to help set people free.

1.3

Against this backdrop, teachers are central to achieving this aim, because they have the task not only of passing on knowledge but also of interacting with children and young people in a society in which family structure has changed radically and now takes new shapes and forms.

1.4

The EESC welcomes the Commission communication to the Council and the European Parliament on how to improve teacher training and broadly agrees with its approach.

1.5

The Committee considers, however, that despite the Commission's limited powers in this area, the communication could go a little further and address other issues which, because of their importance today, warrant particular attention.

1.6

Specifically, what new strategies can and should be designed for teaching in an environment of global change? How should the new issues arising from changes in family structures, with their new shapes and forms, be addressed? How can teachers' ongoing training be guaranteed to form part of lifelong learning? Lastly, how can the teaching profession be made more attractive to young people, particularly in terms of remuneration and benefits, amongst other things?

1.7

The EESC is thoroughly convinced, as the Commission states in its communication, that in an increasingly complex and demanding society, the teaching profession should be seen as a crucial component in promoting high-quality education that is able to adapt to today's requirements. This is why improving university-level education and professional teacher training and offering appropriate pay and career conditions are central to achieving this objective.

2.1

The Communication identifies the quality of teaching and teacher training as a key factor in ensuring the quality of education and improving the educational attainment of young people. It lists a number of steps that could now be taken in this field, and ways in which the Commission can support that work.

2.2

The Commission considers that, taken as a whole, these proposals would help to ensure that teachers' initial training and their professional development are coordinated, coherent and properly funded; to ensure that all teachers possess the knowledge, attitudes and resources that they require to be effective; to support the professionalisation of teaching; to promote a culture of discussion and research within the profession on teaching practices and to promote the status and recognition of the profession.

2.3

This will help improve the quality of education for all and enable Member States to achieve — at national level — the Lisbon goals for social cohesion and economic competitiveness and growth.

3.1

Over the years, the teaching profession has changed, not only in its working methods but also in its very role, as a result of developments in society and new expectations of schools. Teachers, who were once ‘purveyors of knowledge’, whose knowledge was expected to be absolute, have became teacher/educators or learning facilitators, able to give structure to the knowledge acquired by young people from other sources, which are sometimes more up-to-date than the teachers' own.

3.1.1

In particular, the knowledge acquired from the Internet and the new information and communication technologies that are available to most young people today, and which they access and use without due consideration, raise problems that need to be addressed either in teacher's initial training or in their ongoing training, so that they are able to assimilate this knowledge in order to incorporate it into young people's education.

3.2

Schools in turn have become more democratic and more heterogeneous, the product of a society which has also become more diverse, more demanding and more complex. As a result, democracy, equality and diversity have become fundamental concepts of schools today; they are vital elements of inclusive schools that also embrace children and young people with disabilities. Against this backdrop, teachers now have a new task; to provide increasingly individualised answers that are tailored to each pupil.

3.3

The phenomena of immigration, social discrimination, poverty, youth violence, especially in urban areas, and greater job instability and long-term unemployment have ‘infiltrated’ schools and have made teaching more complex and difficult, as well as more unstable and insecure. Often, teachers do not know how to deal with these new phenomena and do not receive the support they would need to do so.

3.4

Similarly, new family structures reflecting the increase in the number of working women and of one-parent families and other forms of home life require teachers to demonstrate new skills, especially that of dealing with the parental responsibility chosen by each family.

3.5

Initial teacher training has not always kept pace with these changes. An initial training that was for a long time overly academic is now often excessively teaching-centred, with much less emphasis on teachers' knowledge of the different subjects. What is really needed is a new balance between these two strands of teacher training.

3.6

Indeed, initial teacher training should be a balanced combination of scientific and educational knowledge because this balance is precisely what defines the teaching profession. This training should also, however, include a psycho-sociological and even anthropological component that helps trainee teachers to acquire the knowledge and techniques needed to be able to teach in multicultural settings, making use of an inter-cultural approach, in which they will have to manage and solve situations of conflict and similar problems. This initial training should also teach future teachers how to listen to young people in order to involve them in finding the best solutions. In this connection, it is important to bear in mind the rights to which children and young people are entitled under the UN Convention on the Rights of the Child, whereby all children and young people have the right to education, leisure time, proper treatment and a say in their own life circumstances.

3.7

Whilst the EESC agrees with the Commission's idea that no initial training can provide teachers with all of the knowledge and skills necessary for a life-time of teaching, the fact is that the longer and more in-depth the initial training is, the more willing teachers will be to make use of ongoing training. This fact has not been given due prominence in teacher training policies.

3.8

Furthermore, initial teacher training should include more wide-ranging aims than simply knowing what and how to teach. It should convey the idea that teachers are professionals who give thought to what they are doing and are able to assess the contexts in which their work takes place, to define the required strategies and to evaluate the results. Training should also get across the idea that education can and should be a tool for social cohesion, social and economic development and for training people to be active and committed, to respect cultural and environmental diversity and even to build a better world. Indeed, it is teachers who really create social cohesion.

3.9

With regard to ongoing training, this should be based not only on the individual needs of teachers as professionals who recognise the limitations of their own knowledge and who are aware of current social and technological developments; it should also address the collective needs of schools as communities that form part of a broader community involving other players and stakeholders.

3.10

In many countries, ongoing training is a recent development and should continue to be encouraged as a key component of progress for the teaching profession. Ongoing training is one of teachers' professional duties and is acknowledged to be crucial to their work. It should, therefore, be given the time, space and resources it requires to become a permanent aspect of the job.

3.11

Ongoing teacher training in vocational and technological subjects should keep pace with technological developments. It should involve partnerships with business in order to familiarise and update teachers with the latest technological developments.

3.12

One of the most serious mistakes made in ongoing training policies is to think that training can be standardised within a given subject area. Whilst this aspect cannot and should not be discounted, it is worth pointing out that such training must match the needs of the community in which the school is located and must reflect the school's own educational aims. Only in this way will each country or region be able to meet the challenges relating to their social and economic development and take account of the new concerns facing society.

3.13

The conditions for entering the profession and for career development, the specific support provided for working in this field, pay that reflects the profession's social importance and social recognition for the work that is done are some of the factors that can help, in addition to teacher training, to attract the most able people into teaching, which is acknowledged to be a difficult and testing profession and thus help to improve education, ensuring that it is rigorous and of high quality.

4.1

The Commission communication highlights the fact that teachers' education and professional training are closely connected to other key policies, such as the European Youth Pact (1), policies on innovation, research, business (2) and multilingualism (3) and to the recognition of professional qualifications (4).

4.2

The EESC broadly agrees that these policies overlap with the issue in question but considers that it would be useful to emphasise other aspects, which should definitely form part of any teacher training, whether initial or ongoing:

4.2.1

The Millennium Goals, to which all EU members of the UN are committed and which, in order to be achieved, require highly qualified teachers whose training must form part of a common strategy.

4.2.2

The Lisbon goals, which emphasise the importance of knowledge, and thus of education, based on the premise that Europe's greatest asset is its people. Raising young people's awareness of sustainable development and the social market economy is a task that falls under the Lisbon strategy and should form part of young people's education.

4.2.3

The gender aspect, not only because most teachers are women but also because this is a key issue in European policy on socio-economic development and social cohesion.

4.2.4

The general education of young people in all its aspects: physical, intellectual, creative, innovative, active and socially useful. Thinking about the general education of children and young people requires cognitive ability, teaching/educational training and the ability to work as part of a team and these skills can only be gained by means of a demanding initial training and the appropriate ongoing training.

4.3

The communication outlines the profile of teachers in the European Union, highlighting three key aspects: gender, age and remuneration, but does not explore in detail the link that might exist between these three factors.

4.3.1

Whilst it is true that women are always in the majority in all areas of education, their number is inversely proportionate to the social importance and/or the remuneration offered in each sector. Consequently, from pre-school to higher education, the proportion of women falls.

4.3.2

The image of the teaching profession is less attractive today and cannot compete with careers that are more alluring to graduates with the same qualifications. It is thus no longer attracting younger candidates. The profession has clearly become more demanding, in terms of both initial training and social responsibility, but this fact has not been reflected in better working conditions, career prospects and remuneration.

4.3.2.1

The pure sciences and information and communication technologies have been affected particularly badly by this competition, resulting in a widespread shortage of teachers in these subjects.

4.3.3

The EESC also wishes to point out that some of the assertions made in the communication are not supported by detailed analysis, thus concealing the more complex reality of a number of situations. When teachers' salaries are compared with the average national income, for example, account should be taken of the value of salaries in relation to GDP and the relationship between salaries and career length and a comparison should be made with other professions that have equally rigorous academic requirements.

4.3.4

In Europe, the teaching profession is today clearly ageing and there are justified fears concerning its ability to replenish itself, given that so many teachers are between 50 and 64 years old. Europe should draw up a forward planning study on the potential consequences of the age pyramid.

4.3.5

It is, therefore, crucial to make the teaching profession more attractive to young people, which will, of course, require not only greater investment but also and, perhaps even more importantly, making social and cultural changes in order to improve teachers' standing in society.

4.4

The Commission communication sets out a number of measures in the field of education policy that could help to improve teacher education, in particular as regards lifelong learning, the necessary skills, reflective practice and research, qualifications, teacher education in higher education and teaching in society.

4.4.1

The EESC agrees with the ideas set out in the communication, but considers that they should only be considered within a structured framework and should be grounded in the different contexts in which they apply. All of the ideas are important, of course, but require society to adopt a different view of what it means to be a teacher today, against a backdrop of increased knowledge and more techniques and means to access knowledge.

5.1

Society should adopt a more favourable view of the teaching profession, given the latter's particular importance to achieving the goals set by the Lisbon strategy and since it is teachers who have the task of developing the EU's most valuable asset: its human resources.

5.2

A new recognition of the teaching profession requires a reassessment of salary levels, team-work and ongoing training, access to the profession and career progression, and of working conditions and specific support for the sectors and areas that need it the most, in order to attract enthusiastic and competent young people into the profession.

5.2.1

This reassessment should entail a detailed document setting out the skills expected of teachers, in terms of academic knowledge, a sociological understanding of the different population groups in Europe and in terms of educational methods.

5.3

Although education does not specifically fall within the European Union's remit, improving open coordination, gathering and sharing information, exchanging good practice, launching specific programmes to upgrade the teaching profession's profile could all be means of helping Member States to implement active policies to achieve this goal.

5.4

Teaching is an extremely responsible job and strategies must, therefore, be developed to support young teachers at the start of their career, through assistance provided by more experienced teachers who, due to work-related strain (physical or mental), should moreover not be obliged to perform the same duties until they reach retirement age.

5.5

The existence of multidisciplinary educational teams, whether or not coordinated by teachers, is today a key tool for any educational project that takes on board the new social situations (family structures and organisation, working time and arrangements, long-term unemployment, immigration, in particular those resulting from a poor knowledge of the language and culture of the host country) or specific permanent situations (children and young people with special educational needs due to a handicap, combating sexism and consideration of gender equality). In this context, initial teacher training should include sufficient awareness of these issues. Moreover, it is essential to train specialist teachers for children and young people with special educational needs, which could also be achieved by offering Master's or PhD degrees in this area.

5.6

Another social situation becoming increasingly common in schools is youth violence, which should be addressed from a multidisciplinary approach aimed at understanding this phenomenon, which tends to occur mainly in urban settings.

5.7

Furthermore, investment in auxiliary teaching staff is crucial to ensuring support for educational tasks that the school is obliged to provide but which go beyond the normal duties of a teacher.

5.8

Initial training should take account of all of these assumptions and should, therefore, be of high quality, in terms of academic content and of the educational/teaching content and also of new skills such as the abilities to work as part of a team, to interact with other social stakeholders, in particular families, and the ability to instil the desire to learn in other people. This training should include methods for leading activities and group dynamics, which can prevent and defuse latent social conflict.

5.9

The EESC therefore recommends that the teaching profession be considered to warrant a lengthy initial training, high requirements and a better understanding of the relationships between schools and society, including the world of work.

5.10

With regard to ongoing training, this should be considered to be an integral part of a teacher's career progression, and so Member States should design programmes to implement a system that meets the needs of both teachers and schools.

5.11

If ongoing training is to succeed and be effective in meeting its aims, teachers must be actively involved in it from the development and planning stages through to implementation and it should focus primarily on schools and on the specific aims of each school's educational project.

5.12

The socio-economic stakeholders and the union organisations representing teachers in particular should be viewed as valued partners in the process of defining the aims of teachers' initial and ongoing training schemes and in evaluating these schemes.

5.13

Ongoing training could have a component of parent and teacher participation in order to involve these in the school's educational project, with a view to understanding the variety of factors affecting their children's studies and thus playing a role in their children's education outside the home environment.

5.14

Ongoing training should also provide a forum for discussion within the profession and it would thus be desirable to involve other educational stakeholders and take account of the possibility of involving different schools in a broader framework.

5.15

Lastly, European programmes should encourage experience and information exchanges between schools located in different countries but which share similarities. Experience-sharing between schools in host countries and schools in immigrants' countries of origin, for example, would be a useful way of understanding the difficulties faced by children and young people from this social group and of developing strategies to overcome obvious problems.

5.16

Furthermore, the Lisbon strategy framework should be used to encourage, in particular with regard to study leave and cross-EU teacher mobility, e.g. via study leave, as a vector (or vehicle) for experiences and innovation to improve lifelong learning.

5.17

Lastly, appropriate education indicators should be identified and recognised in all EU countries to assess gains and to help educational systems achieve the common aim of improving qualifications and social cohesion.

17.6.2008   

EN

Official Journal of the European Union

C 151/45

1.1

The EESC agrees with the need to prepare a truly European transversal youth strategy and is ready to contribute to this process with its means such as direct contact with grass root organisations and sensibilisation of EU institutions of problems and solutions on grass root level.

1.2

The EESC believes that the process of building a successful and sustainable transversal child and youth strategy should be facilitated through a permanent structure within the Commission (coordinating the work of various DGs involved) or an interinstitutional group and should be based on setting up of a monitoring mechanism with clear targets and deadlines.

1.3

The EESC believes that the first step to increasing employment in the EU — before doing the utmost to mobilise older workers — is to get young people into work on a massive scale, since this would have a far longer impact, both sociological (independence, social, birth-rates, family, etc.) and economic, in terms of growth, social financing, consumption, savings and investment (building, etc.). It urges Member States and European institutions to take the necessary steps to reduce youth unemployment in Europe, mainly through quicker and more efficient implementation of the European Youth Pact and Member States' Lisbon Strategy national reform programmes.

1.4

The EESC urges that the situation of young people in rural areas and poor urban areas be given greater consideration. The EESC calls on Member States to rise to the challenge of eradicating child poverty and asks for measures to be added in order to improve participation of young people with disabilities in society on equal terms.

1.5

The EESC recommends that the Commission continues to work on the recognition of voluntary youth work through engagement with employers' organisations, workers' organisations, representatives of the formal education system and appropriate NGOs.

1.6

The EESC repeats its main points on the subject of voluntary activities of young people, mainly that:

1.7

The Committee advises against ways of getting young people into employment that are undependable and offer no prospects: it is time to stop advocating casual employment and ever more uncertain working hours and contracts, since there has been ample proof of their effect on an increasing number of young people from a range of social backgrounds. Casual employment offered as a stop-gap solution between completing initial education and entering working life postpones career progression and the assumption of responsibility in social and family life — a fact demonstrated, regrettably, by the studies and observations of Eurofound, the ILO and the European Employment Observatory.

1.8

The EESC supports the development of structured dialogue between decision-makers and young people. Such dialogue should contribute to the development of the European transversal youth strategy, suggested by the Commission in its Communication. The EESC welcomes the proposal of the Commission to draft an EU report on youth every three years and recommends that involvement of youth civil society, in particular the national youth councils, should be ensured in the development of such a report.

1.9

The EESC supports the development of a strong partnership between the EU and young people in the form of a declaration to be signed between the European Institutions and their partner on the part of young people — the European Youth Forum.

2.1

The EESC has been dealing with the issue of youth for more than ten years already. Most recent opinions are still relevant and could be repeated here, at least in part (1).

2.2

On 5 September 2007, the European Commission adopted its Communication Promoting young people's full participation in education, employment and society, jointly prepared by DG Education and Culture and DG Employment, Social Affaires and Equal Opportunities. Other DGs were involved in its drafting as well. The Communication deals with topics such as youth education, employment, health and citizenship, trying to address them in a cross-sectoral way. It is accompanied by two Commission Staff working papers — one on voluntary activities, second on youth employment.

2.3

The Communication reacts to some of the interesting findings of the report Investing in Youth: an empowerment strategy, published in April 2007 by the Bureau of European Policy Advisors (BEPA).

2.4

In general, the EESC welcomes the approach taken by the European Commission with regard to both the process and content of this Communication. It notes with pleasure that several DGs were involved in its drafting.

2.5

However, the EESC is concerned about the implementation of the plans to create this transversal youth strategy. The Commission does not recommend a process on how to reach this goal. According to the initial reaction of the Council, none of the Member States have any plans in this direction so far.

3.1

This chapter deals almost exclusively with formal education, but the success of the lifelong learning process also depends on non-formal education which helps to provide the necessary skills and competences by complementing the work of school systems. Therefore, they should be given appropriate consideration.

3.2

In general, the EESC agrees with the proposals concerning the improvements in the quality of education, as they are in line with current strategies and documents.

3.3

The EESC also agrees that a youth-specific element within Europass, complementary to Youthpass, should be developed, as Youthpass only focuses on activities done by young people in the framework of the Youth in Action Programme. The scope of youth activities which need to be recognised is, however, much broader.

3.4

The EESC recommends that the Commission continues to work on the recognition of voluntary youth work through engagement with employers' organisations, workers' organisations, representatives of the formal education system and appropriate NGOs.

3.5

Young people dropping out of school should have the opportunity to participate in non-formal training programmes which would equip them for adult life and successful participation in the labour market either as employees or entrepreneurs.

4.1

The EESC stresses that youth unemployment in Europe is a threat to the future of Europe and urges Member States and European institutions to take the necessary steps to improve the situation. Those steps should above all be based on quicker and more efficient implementation of the European Youth Pact, where large backlogs exist in many Member States. Today the European Youth Pact remains more a declaration than a real working plan.

4.2

In a previous opinion (2) the EESC requested that the following targets be considered for inclusion in Member States' Lisbon Strategy national reform programmes:

4.3

The EESC has recently adopted an exploratory opinion on flexicurity (3), which could provide a good basis for future work on the subject. It notes, among other things, that ‘young people in many Member States face an uncertain labour market with high unemployment, fixed term contracts, insufficient social security coverage and work below their qualification level’.

4.4

For many young people in Europe and throughout the world, the social uncertainty that has so far been an intrinsic and defining element of young adulthood is increasing. They are no strangers to insecure employment and material hardship, as the most recent ILO reports make clear. Today's older generations should also ask themselves what future they are leaving for those that follow.

4.5

The EESC has already called for the fostering of young entrepreneurship by providing financial and technical support and by minimising the bureaucracy involved in taking over, transferring and establishing an enterprise. Therefore the EESC is interested in the proposed pilot project to promote the mobility of young entrepreneurs.

4.6

Concerning the Commission's initiative on internships, the EESC agrees that a kind of European quality framework for internships should be introduced and offered to companies to commit themselves to its principles of clear contracts with young people. Today, in many cases, young people doing internships are misused as a cheap labour force instead of learning and preparing for future jobs.

4.7

In line with the Commission's proposal which encourages Member States to use national policies and EU funds for supporting young people's transition from education to employment, the EESC calls on Member States to reduce the administrative burden connected with applying for funding from EU funds, as they lower the chances of voluntary-based youth NGOs attaining this type of funding. Pre-financing of the NGO's projects would also help to improve the chances of their projects.

5.1

The EESC urges that the situation of young people in rural areas and poor urban areas be given greater consideration. In many rural and poor urban areas, young people do not have access to high quality education, training, mobility, health services, leisure facilities, employment opportunities or have the chance to participate in civil society.

5.2

The EESC calls on Member States to rise to the challenge of eradicating poverty among children and young people, which has a severe impact on them across a range of issues such as health, education and even a child's future ‘life chances’ of ever breaking out of the poverty trap.

5.3

The Communication does not discuss the fundamental link between the availability and quality of day care for children and subsequent performance in school and at work. In line with the objectives of the Lisbon strategy, the EESC recommends emphasising the importance of day care for children, as preparation for school and independent life, and as an excellent means of promoting social integration and compensating for difficulties.

5.4

The EESC asks for measures to be added in order to improve participation of children and young people with special needs, disadvantages or disabilities in society on equal terms: equal participation in the activities of the Youth Programme; equal access to information on youth policy and youth projects and awareness-raising measures.

5.5

The EESC generally agrees with the analysis of the European Commission regarding gender issues. However, the EESC regrets that no new suggestions are made in the Communication to fight against gender stereotypes.

5.6

The EESC has already asked the Commission for actions focusing on the health of children and young people, and particularly on balanced lifestyles:

5.7

In the spirit of recent Committee opinions on solidarity between the generations (4), solidarity with young adults needs to be brought into horizontal transversal policies, but in a spirit of cooperation and solidarity with other age groups in civil society: children, adults and senior citizens.

5.8

Therefore the EESC welcomes the adoption by the Commission of a new Health Strategy.

6.1

The EESC has been supporting the active participation of young people through its opinions as well as through offering its facilities for the European Youth Week 2007.

6.2

In a previous opinion, the EESC stressed the importance of the active participation and autonomy of young people in society at large. Therefore, the EESC recommended that:

6.3

The EESC would appreciate if the part of the Communication, dealing with voluntary activities of young people (point 5.2), could be much stronger and less general. The EESC regrets that none of the EESC recommendations stipulated in its exploratory opinion (5) was included in the Communication.

6.4

The EESC therefore repeats its main points on the subject:

6.5

The EESC supports the development of a strong partnership between the EU and young people in the form of a declaration expected to be signed later this year between the European Institutions and their partner organisation on the part of young people — the European Youth Forum. It notes with satisfaction that the European Youth Forum ‘is keen to reflect on appropriate means and tools with the partners, to ensure that the opinions, in particular, of young people with fewer opportunities, can also be heard and taken into account as part of this process’ (6).

6.6

Furthermore the EESC supports the development of structured dialogue between decision-makers and young people. Such dialogue should contribute to the development of the European transversal youth strategy, suggested by the Commission in its Communication. To this end, the EESC suggests that a dialogue meeting gathering all relevant Directorates-General of the Commission, representatives of the Council and European Parliament and youth civil society should be convened in order to lay down a joint roadmap on how to address youth issues in cross-sectoral manner. The EESC considers that such joint roadmap would be concrete step in answering the calls made by young people and youth civil society on the occasion of the Rome Youth Summit, March 2007.

6.7

Structured dialogue with young people should also make good use of existing means, namely youth events of EU Presidencies and European youth weeks. However, these events should be used for discussions on the progress of the European transversal youth strategy and their written results should be linked to this progress. No new declarations need to be written, there should be no reinventing of the wheel over and over again.

6.8

The EESC welcomes the proposal of the Commission to draft an EU report on youth every three years. Such a report should be linked to the transversal youth strategy and its objectives, with well defined indicators of success or failure. The involvement of youth civil society, in particular the national youth councils, should be ensured in the development of such a report.

17.6.2008   

EN

Official Journal of the European Union

C 151/50

1.1

The Committee welcomes the proposal for a Regulation extending the provisions of Regulation (EC) 883/2004 and Regulation (EC) No […] to nationals of third countries who are not already covered by these provisions solely on the ground of their nationality, as it represents a step forward in ensuring equal treatment for EU citizens and third-country nationals residing legally in the EU.

1.2

The Committee therefore hopes that the following comments, summarising the points made later in this opinion, will be taken into account:

1.2.1

under no circumstances should Regulation 859/2003 and therefore Regulation 1408/71 and its implementing regulation be allowed to remain in force;

1.2.2

the text replacing Regulation 859/2003 should not contain an annex with special provisions permitting exclusions to the application of Regulation 883/2004;

1.2.3

the opinion of the European Economic and Social Committee, as the representative of organised civil society in the European Union, should always be required when such provisions are considered.

2.1

In April 1991, the European Economic and Social Committee, in its own-initiative opinion on the Status of migrant workers from third countries (1), expressed its support for equal treatment in the social field between Community and third-country nationals.

2.2

In October 1999, the Tampere European Council stated that fair treatment should be given to third-country nationals residing legally in the Member States, and their rights and duties should be equivalent to those of EU citizens themselves. Logically, these rights include freedom of movement and the socio-occupational consequences thereof.

2.3

Article 63 of the Treaty Establishing the European Community states that the Council, after the Amsterdam Treaty enters into force, will adopt ‘measures defining the rights and conditions under which nationals of third countries who are legally resident in a Member State may reside in other Member States’ (2). These measures concern the right to residence and freedom of movement of these nationals.

2.4

May 2003 saw the publication of Regulation (EC) No 859/2003 (3) extending the provisions of Regulation (EEC) No 1408/71 and Regulation (EEC) No 574/72 to nationals of third countries who are not already covered by those provisions solely on the ground of their nationality (4). This built on the mandate set by Article 63 TEC and extended the provisions of the regulations on social security for third-country nationals, their family members and survivors of EU citizens who, as third-country nationals, are residing legally in the EU.

2.5

In 2004, Regulation 883/2004 on the coordination of social security systems was adopted, and it was established that Regulation 1408/71 would be repealed when the implementing regulation for the former text was adopted and published. If the proposed Regulation covered by this opinion were not adopted, then the third-country nationals residing legally in the EU would remain subject to the provisions of Regulation 1408/71 and would not benefit from the simplification and improvements brought by Regulation 883/2004; therefore, paradoxically, two regulations on social security would exist, one of which would apply only to third-country nationals.

3.1

The proposed Regulation comprises three articles and may, like its predecessor, include an annex which does not form part of the current proposal. The text of the articles repeats almost literally that of the Regulation which is being replaced.

3.2

Article 1 sets out the scope of the Regulation, which, logically, applies to third-country nationals, members of their families and their survivors residing legally in a Member State and not already covered by Regulation 883/2004.

3.3

Article 2 sets out the same provisos as current Regulation 859/2003, referring to rights dating from before 1 June 2003, the date on which the current Regulation came into force.

3.4

Article 3 sets the date on which the Regulation will come into force and provides for the repeal of Regulation 859/2003 on that same date.

4.1

The Committee welcomes the proposal and reiterates its unconditional support for the extension of the principle of equal treatment for EU nationals and third-country nationals in the social field, and remains convinced that such equal treatment will make it easier for migrants from third countries to gradually become integrated into the Member States of the EU.

4.2

The Committee welcomes the fact that, in the context of the proposal for a Regulation extending the provisions of Regulation (EC) 883/2004 and its implementing Regulation to nationals of third countries who are not already covered by these provisions solely on the ground of their nationality, its opinion was requested by the Council. In this respect, the Committee does not understand why its opinion was not sought in the course of proceedings for Regulation 859/2003, and why it was not able to express its position on such an important subject.

4.3

Notwithstanding the matters on which the Committee's opinion is required, the Committee feels that its opinion should be taken into account whenever issues of a social nature are under discussion, especially if they relate to provisions on social services within the context of social security.

4.4

One of the recitals of Regulation 859/2003 stresses, in accordance with Article 3 of the Protocol on the position of the United Kingdom and Ireland annexed to the Treaty on European Union and the Treaty establishing the European Community, the wish of both Member States to take part in the adoption and application of this Regulation.

4.5

In the proposed Regulation replacing Regulation 859/2003, there is no mention of this situation in any of the recitals, which leads the Committee to assume that no communication has been received from the two States. In this regard, the Committee hopes that the new Regulation will also be adopted by these two States, so as to avoid the situation mentioned in point 2.5 above, whereby Regulation 1408/71 would remain in force in only one or two Member States, and only with regard to third-country nationals.

4.6

The current Regulation 859/2003 includes an annex which sets conditions on the application of the Regulation in two Member States, for certain specific services. The text of the proposal submitted to the Committee includes no such annex. This may be due to the fact that no State has wished to include any exclusive provisions in the Regulation, or that they have not yet expressed their positions in this regard.

4.7

Whatever the reason for the omission of the annex, the Committee — in line with the position it expressed over 15 years ago in its own-initiative opinion on the status of migrant workers from third countries (5) — reiterates is call for equal treatment between EU nationals and third-country nationals in the social field, and hopes that no annex be incorporated into the new Regulation.