5.2.2016   

EN

Official Journal of the European Union

C 45/1

5.2.2016   

EN

Official Journal of the European Union

C 45/2

—

having regard to Articles 19(1) and 260 of the Treaty on the Functioning of the European Union (TFEU),

—

having regard to Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services (1),

—

having regard to the Commission’s Guidelines of 22 December 2011 on the application of Council Directive 2004/113/EC to insurance, in the light of the judgment of the Court of Justice of the European Union in Case C-236/09 (Test-Achats) (2),

—

having regard to the judgment of the Court of Justice of the European Union of 1 March 2011 in Case C-236/09 (Test-Achats) (3),

—

having regard to the report of the European Network of Legal Experts in the Field of Gender Equality of December 2010 entitled ‘EU Rules on Gender Equality: How are they transposed into national law?’,

—

having regard to the report of the European Network of Legal Experts in the Field of Gender Equality of July 2009 entitled ‘Sex Discrimination in the Access to and Supply of Goods and Services and the Transposition of Directive 2004/113/EC’,

—

having regard to the report of the European Network of Legal Experts in the Field of Gender Equality of June 2011 entitled ‘Trans and intersex people: Discrimination on the grounds of sex, gender identity and gender expression’,

—

having regard to its position of 30 March 2004 on the proposal for a Council directive implementing the principle of equal treatment between women and men in the access to and supply of goods and services (4),

—

having regard to its resolution of 17 June 2010 on assessment of the results of the 2006-2010 Roadmap for Equality between women and men, and forward-looking recommendations (5),

—

having regard to Rule 48 of its Rules of Procedure,

—

having regard to the report of the Committee on Women’s Rights and Gender Equality (A7-0044/2013),

A.

whereas the directive prohibits both direct and indirect discrimination based on sex in access to and the supply of goods and services that are available to the public, in both the public and private sectors;

B.

whereas the directive addresses aspects related to discrimination based on sex outside the labour market;

C.

whereas less favourable treatment of women for reasons of pregnancy and maternity is also prohibited, as well as harassment and sexual harassment and instruction to discriminate wherever goods or services are offered or supplied;

D.

whereas following the entry into force of the Lisbon Treaty, appropriate action to combat discrimination based on sex will be dealt through a special legislative procedure requiring unanimity in the Council and the consent of Parliament (Article 19(1) TFEU);

E.

whereas according to the information available, the directive has been transposed in most of the Member States either through the adoption of new legislation, or by amending the existing legislation in this field;

F.

whereas in some Member States transposition was incomplete or the deadline for transposition was delayed;

G.

whereas in some cases national legislation goes further than required by the directive by also covering education or discrimination in relation to the media and advertising;

H.

whereas the opt-out laid down in Article 5(2) of the directive created legal uncertainty and potential legal challenges in the long term;

I.

whereas the Commission’s application report, which, under the directive, was due in 2010, has been postponed until 2014 at the latest;

J.

whereas the judgment of the Court of Justice of the European Union of 1 March 2011 in Case C-236/09 (Test-Achats) stated that Article 5(2) of this directive providing derogation to insurance and related financial services works against the achievement of the objective of equal treatment between men and women and is incompatible with the EU’s Charter of Fundamental Rights;

K.

whereas the provision concerned is consequently considered to be invalid upon the expiry of an appropriate transitional period, in this case with effect from 21 December 2012;

L.

whereas, on 22 December 2011, the Commission published non-binding guidelines aimed at clarifying the situation with regard to insurance companies and related financial services;

M.

whereas, in line with Court of Justice of the European Union jurisprudence, discrimination against transgender people and discrimination on grounds of gender identity may amount to discrimination on grounds of sex (6) in policy and legislation in the field of equality between women and men;

1.

Regrets the fact that the Commission has not presented its report on the application of Council Directive 2004/113/EC or published up-to-date data on ongoing national implementation processes;

2.

Acknowledges that the Test-Achats ruling may have had an impact on Member States’ implementation processes, but notes that this alone cannot justify the failure to publish the report required by the directive in time;

3.

Calls on the Commission to publish its report and all available data with all possible dispatch;

4.

Calls on the Commission and the Member States to take concrete measures to explain the directive and its impact, with concrete examples, in order to ensure that both women and men can take full ownership of the directive and use it appropriately as an effective tool for safeguarding their rights with regard to equal treatment in access to all goods and services;

5.

Welcomes the Test-Achats ruling, but considers that it has created ongoing uncertainty on the insurance market; expects the development of unisex criteria to result in pricing based on multiple risk factors which fairly reflects individuals’ level of risk regardless of gender, and to detect any potential gender-based discrimination;

6.

Considers that the guidelines published by the Commission — in the absence of a binding or legislative effect — have not fully dispelled this uncertainty;

7.

Calls on the Commission to take practical steps to address the problem by proposing a new legislative text that is fully in line with the guidelines;

8.

Notes that the insurance industry should keep making an effort to rearrange premiums in line with unisex criteria by applying actuarial calculations on the basis of other factors;

9.

Calls on the Commission to open informal dialogue with the insurance industry on risk assessment;

10.

Calls on the Commission to present the methodology it will use to measure the effects of the Test-Achats ruling on insurance pricing;

11.

Calls on the Commission to analyse the issue with a focus on consumer protection policy as well;

12.

Calls on the Commission and the Member States closely to follow developments on the insurance market, and if there are any signs of de facto indirect discrimination, to take all necessary measures to address the problem and to avoid unjustified higher pricing;

13.

Stresses that this directive is not limited solely to the insurance field and that its broader scope and potential for progress in respect of access to goods and services in both the public and private spheres need to be explained in detail in order to enable both women and men fully to understand its reach and purpose, and consequently to make appropriate use of its features and possibilities;

14.

Notes that the provision relating to the shift in the burden of proof has been implemented in most national legislation in the Member States; calls on the Commission to monitor the application of this provision in all Member States;

15.

Calls on the Commission to take into consideration cases of discrimination in relation to pregnancy, planning of motherhood, and maternity as regards, for instance, the housing sector (renting) or difficulties in obtaining loans, as well as access to medical goods and services, in particular access to legally available reproductive healthcare and gender reassignment treatment;

16.

Calls on the Commission to monitor particularly closely any discrimination related to breastfeeding, including possible discrimination in access to goods and services in public spaces and areas;

17.

Calls on the Commission to monitor the implementation and application of the directive with regard to pregnant asylum-seeking women awaiting the outcome of their asylum claims, in order to ensure that these women are covered by the contracts and products in question;

18.

Calls on the Commission, in line with Court of Justice case-law, fully to include discrimination on grounds of gender identity in future policy and legislation in the field of equality between women and men;

19.

Notes with disappointment that in some Member States women entrepreneurs, in particular single mothers, are frequently discriminated against when trying to secure loans or credit for their businesses and still often face barriers based on gender stereotypes;

20.

Calls on the Commission to gather best practices and make them available to Member States in order to provide the necessary resources for supporting positive action and ensuring better implementation of the respective provisions at national level;

21.

Draws attention to the lack of effectiveness of some equality bodies owing to their lack of actual ability to act, staff shortages and lack of adequate financial resources;

22.

Calls on the Commission properly and accurately to monitor the situation of the ‘equality bodies’ established following the entry into force of the directive, and to check whether all the conditions laid down by EU legislation have been met; places particular emphasis on the fact that the current economic crisis cannot be used as a justification for shortcomings as regards the proper functioning of equality bodies;

23.

Underlines the need for data and more transparency from the Commission on ongoing infringement procedures and actions;

24.

Calls on the Commission to establish a public database of legislation and case law relating to discrimination on gender; insists on the need to improve protection for victims of gender-based discrimination;

25.

Points out the need for financial support for, and EU coordination of, further training for legal practitioners active in the field of gender-based discrimination, taking into account the role played by national courts;

26.

Points out the need for the directive to be transposed in a timely manner in all Member States;

27.

Instructs its President to forward this resolution to the Council and the Commission, and to the governments of the Member States.

5.2.2016   

EN

Official Journal of the European Union

C 45/5

—

having regard to the Commission’s communication of 18 September 2002 on trade, growth and development, (COM(2012)0022) of 27 January 2012, which updates a communication on the same subject,

—

having regard to Articles 207 and 208 of the Treaty on the Functioning of the European Union and Article 3 of the Treaty on European Union,

—

having regard to the Commission’s other communications and staff working documents in recent years of relevance to this subject, including those on Policy Coherence for Development (COM(2009)0458, SEC(2010)0421, SEC(2011)1627), on the EU Plan of Action on Gender Equality and Women’s Empowerment in Development 2010-2015 (SEC(2010)0265), on increasing the impact of EU development policy: an Agenda for Change (COM(2011)0637), on financing for development COM (2012)0366, on the EU approach to resilience (COM(2012)0586), on social protection in EU development cooperation (COM(2012)0446) and on engagement with civil society in external relations (COM(2012)0492), as well as to its communication on Aid for Trade (COM(2007)0163) and its annual monitoring reports on this aid,

—

having regard to the Council’s conclusions on the EU’s approach to trade, growth and development in the next decade, of 16 March 2012, and to its other conclusions of relevance to this subject,

—

having regard to the Cotonou Agreement (1),

—

having regard to the regulations relating to the Development Cooperation Instrument (DCI) (2) and the European Development Fund (EDF) and their implementation,

—

having regard to the EU Strategic Framework on Human Rights and Democracy and to point 11, on trade, in the associated Action Plan (3),

—

having regard to the Enhanced Integrated Framework for trade-related assistance to Least Developed Countries, prepared under the leadership of the World Bank,

—

having regard to the ILO Decent Work Agenda and the UN Social Protection Floor Initiative,

—

having regard to the Fourth World Conference on Women held in Beijing in September 1995, the Declaration and the Platform for Action adopted in Beijing,

—

having regard to its resolutions of relevance to trade and development, including on trade and poverty (4); aid for trade (5); Economic Partnership Agreements (6); the EU’s generalised system of preferences (7); Corporate Social Responsibility (CSR) (8), tax matters in relation to developing countries (9); EU-Africa relations (10); food security (11); the general development of the EU’s development policy (12) and Policy Coherence for Development (13),

—

having regard to Rule 48 of its Rules of Procedure,

—

having regard to the report of the Committee on Development and the opinion of the Committee on International Trade (A7-0054/2013),

A.

whereas Articles 207 and 208 of the Treaty on the Functioning of the European Union are clearly interlinked; whereas Article 207 states that the EU’s commercial policy shall be based on the principles and objectives of the Union’s external action, and whereas Article 208 requires that the Union’s policies which are likely to affect developing countries shall take account of the objectives of development cooperation;

B.

whereas, following the Beijing Declaration and Platform for Action, Member States and the Commission have adopted the strategy of gender mainstreaming as part of their development cooperation policy;

C.

whereas poverty reduction and the pursuit of the Millennium Development Goals are centrepieces of the EU’s development policy and should also guide the EU’s trade policy towards developing countries; whereas the promotion of human rights should be integrated into this policy, and contribute to the rights-based approach to development adopted by the EU;

D.

whereas the link between trade liberalisation and poverty reduction is not automatic, but opening up trade can be one of the most effective drivers of economic growth and development, if and when the right conditions are in place;

E.

whereas the prospects for successful trade-driven development depend inter alia on well-functioning institutions, an effective fight against corruption, a healthy private sector and the pursuit of broad-based and inclusive economic development, diversification and progressive increases in added value;

F.

whereas the EU’s trade policy towards developing countries seeks to better integrate them into the international trading system, but lacks clearly defined development objectives and therefore risks, instead, destroying local production and increasing dependence on commodity exports; whereas despite significant liberalisation efforts, some developing countries, notably LDCs, have not been able to diversify production and exports;

G.

whereas the impact of globalisation on poverty reduction is uneven; whereas a large proportion of the population in developing countries still lives in extreme poverty, particularly in the LDCs; only 18 % of the extremely poor were living in LDCs in 1990 but that share had doubled to 36 % by 2007;

H.

whereas the negotiations on Economic Partnership Agreements are far behind schedule, overall progress is still weak, development objectives are not clearly identified in the EU EPA strategy, and a fresh focus on development in the negotiations, rather than a deadline, is needed to remedy this situation;

I.

whereas poor countries have difficulties in compensating for the decline in trade taxes resulting from the current global context of trade liberalisation; whereas there is a danger that customs tariffs on processed goods which exceed those on raw materials may help to consign developing countries to the role merely of exporters of raw materials;

J.

whereas the negative trade and development effects on developing countries of the Common Agricultural Policy must be eliminated;

K.

whereas the expansion of agrofuels has relied overwhelmingly on the expansion of large-scale industrial monoculture, thereby extending agricultural practices that are harmful for the environment, biodiversity, soil fertility and water availability; whereas the expansion of agrofuels may have dramatic consequences in terms of violation of land rights, loss of access to vital natural resources, deforestation and environmental degradation;

L.

whereas upper-middle-income countries will be excluded from the EU’s Generalised System of Preferences from 1 January 2014, but it is uncertain to what extent this will lead to the opening of new export opportunities for the least developed countries;

M.

whereas Aid for Trade (AfT) is designed to assist developing countries inter alia in building trade capacity, reducing administrative barriers to trade, putting in place an efficient infrastructure for the transport of goods, and strengthening local businesses to prepare them for meeting local demand and competition and allow them to benefit from new market opportunities; whereas Aid for Trade should help promote processing and diversification of production, assist regional integration, facilitate technology transfers, facilitate the establishment or development of domestic productive capacity, and help reduce income inequality;

N.

whereas regional integration is an effective means of achieving prosperity, peace and security; whereas the development benefits of better functioning internal and regional trade may be as significant as, or more significant than, those of increased external trade, especially in a context of climate change; whereas regional trade in Africa is dominated by trade in processed goods, in contrast to the domination of raw materials in the external trade;

O.

whereas the export of natural resources is often associated with corruption as well as with stagnation in other economic sectors; whereas the existence of a ‘resource curse’ phenomenon is now widely recognised and the EU’s trade policy must seek to help prevent and counteract this phenomenon;

P.

whereas ‘conflict resources’ are natural resources whose systematic exploitation and trade in a context of conflict contribute to, benefit from or result in the commission of serious violations of human rights, violations of international humanitarian law or violations amounting to crimes under international law;

Q.

whereas EU policies must support and never harm food security; whereas it is also imperative to halt the re-assignment of agricultural land in food-insecure developing countries or regions away from production of food for local or regional needs (the ‘land grab’ problem);

R.

whereas, in particular, support for biofuels has led to indirect land-use change and volatile food prices in developing countries;

S.

whereas ensuring land tenure security for smallholders, who constitute the majority of land owners in developing countries and are the most vulnerable, is the foundation of healthy real estate and credit markets which are essential to stable and sustainable development;

T.

whereas investing in opportunities for women, with regard to microcredit in particular, is essential in order to achieve high returns in terms of economic and social development;

1.

Confirms its position that facilitating sustainable development must be the overriding objective of the EU’s trade policy towards developing countries; takes the view that concrete and sustainable development objectives should be formulated for all initiatives in the framework of this policy;

2.

Stresses that since it cannot be taken for granted that trade liberalisation leads to growth and poverty reduction, trade and aid for trade policies must consistently be designed on the basis of transparent, inclusive and participatory processes involving all stakeholders, with special attention to the most disadvantaged, especially women;

3.

Points out that fair trade between the EU and developing countries must be based on the full respect for, and guarantee of, ILO labour standards and working conditions and must ensure the application of the highest possible social and environmental standards; emphasises that this includes paying a fair price for the resources and agricultural products of developing countries;

4.

Asks that special attention be paid to the promotion of gender equality and women’s empowerment;

5.

Welcomes the focus on the business environment, regional integration and world markets, as well as on social protection, health, education and jobs in the Agenda for Change (COM(2011)0637);

6.

Calls for full implementation of Policy Coherence for Development, including through termination of any iniquitous production and trade practices, of over-fishing and of agricultural subsidies that harm development and threaten food security;

7.

Stresses that investment policy raises two main challenges for developing countries: at the national level, investment policy needs to be included within development strategy, incorporating sustainable development objectives; at the international level, it is necessary to strengthen the development dimension of international investment agreements (IIAs) and to balance the rights and obligations of States and investors;

8.

Regrets that, according to Unctad’s World Investment Report 2012, some IIAs concluded in 2011 keep to the traditional Treaty model that focuses on investment protection as the sole aim of the Treaty; welcomes, however, the fact that some new IIAs include provisions to ensure that the Treaty does not interfere with, but rather contributes to, countries’ sustainable development strategies that focus on the environmental and social impacts of investment;

9.

Notes with concern the growing number of Investor-State Dispute Settlement (ISDS) cases filed under International Investment Agreements (IIAs) whereby investors have challenged core public policies, claiming that these policies have negatively affected their business prospects; points out, in this context, that the Unctad World Investment Report (2012) indicates that IIAs are becoming increasingly controversial and politically sensitive, primarily owing to the spread of IIA-based investor-state arbitrations which provoke growing discontent (e.g. Australia’s trade policy statement announcing that it would stop including ISDS clauses in its future IIAs) and which reflect, inter alia, deficiencies in the system (e.g. the wide scope of provisions such as expropriation, concerns regarding the qualification of arbitrators, lack of transparency and high costs of the proceedings, and the relationship between ISDS and state-state proceedings); insists therefore that any future European investment agreements must ensure that international investor-state dispute settlements do not undermine the ability of states to legislate in favour of the public interest;

10.

Recalls that mobilising investment for sustainable development remains a major challenge for developing countries, particularly for LDCs; emphasises, in this context, that Unctad has developed a comprehensive Investment Policy Framework for Sustainable Development (IPFSD) that puts a particular emphasis on the relationship between foreign investment and sustainable development;

11.

Calls on the EU to actively use the many instruments at its disposal to support peace, respect for human rights, democracy, the rule of law, good governance, sound public finances, investments in infrastructure, compliance with social standards by European firms and their subsidiaries, reliable provision of basic services and the pursuit of inclusive and sustainable growth and poverty reduction in developing countries and thereby also help create a conducive environment for efficient Aid for Trade and sustainable trade development;

12.

Highlights that the successful integration of developing countries into world trade requires more than better market access and strengthened international trade rules; stresses consequently that AfT programming should support developing countries in their domestic efforts to promote local trade, remove supply-side constraints and address structural weaknesses, which can be addressed through domestic reforms in trade-related policies, trade facilitation, enhancement of customs capacities, upgrading of infrastructure, enhancement of productive capacities and the building of domestic and regional markets;

13.

Recalls that the link between international trade and poverty reduction is not automatic; notes, in this respect, that Unctad states that the average level of trade integration of the LDCs, measured by the ratio of exports and imports of goods and services to GDP, has actually been higher than that of the advanced economies since the early 1990s; considers therefore that the persistence of mass poverty in the LDCs is the consequence of underdevelopment and the failure of these countries to promote structural transformation, build productive capacity, and create productive employment at the national level;

14.

Emphasises also Unctad’s argument that the premature and rapid trade liberalisation that many low-income developing countries were encouraged to undertake in the 1980s and 1990s led to de-industrialisation and a form of integration that intensified their dependence on, and vulnerability to, external markets, while the countries that have benefited the most from trade liberalisation and have experienced the largest reductions in absolute poverty are those that have opened their economies moderately and gradually in line with the development of their productive capacities, and have made progress towards structural transformation;

15.

Stresses that for growth and wealth creation to be inclusive, sustainable and efficient in poverty reduction, it should be pursued in sectors heavily affected by poverty and in sectors in which poor people are active; points out that growth should also benefit and empower women and be focused on improving the general business climate for SMEs to flourish, as well as for sustainable microfinance and micro-credit opportunities to emerge; emphasises that development and trade policies in this area should be guided by innovation, creativity and competitiveness, with a view to creating jobs and empowering the disadvantaged;

16.

Welcomes the Commission’s recognition of the need to support the participation of small producers and businesses; points to the market potential of Fair Trade schemes and the efficiency of such schemes in facilitating social development;

17.

Proposes that the Commission creates more momentum for sustainable public procurement at the international level;

18.

Calls on the EU, its Member States and other donors to acknowledge the vital role of women for economic development, and to adapt aid efforts to empower women, socially and financially, including through targeted support for business development and access to micro-finance services specifically for women;

19.

Reminds the Commission and the Member States of the EU Plan of Action on Gender Equality and Women’s Empowerment in Development and the activities proposed by the Action;

20.

Reiterates the EU’s obligation to apply policy coherence for development and respect for, and promotion and protection of, human rights and gender equality in all its external policies, including international trade; looks forward to full implementation of the points on trade in the Action Plan attached to the EU’s Strategic Framework on Human Rights and Democracy;

21.

Considers that sustainable economic development strategies should, inter alia, provide for participation of the private sector in the real economy, regional cohesion and integration of markets through cross-border cooperation, and the development of open and fair trade, embedded in a rules-based multilateral trade framework;

22.

Recalls the importance of investment aimed at creating, developing and strengthening key port, transport, energy and telecommunications infrastructure, and in particular cross-border infrastructure;

23.

Urges countries in receipt of trade development aid also to mobilise their own domestic resources, including budgetary revenue through proper collection of taxes and human capital; calls on the Commission to provide support, where countries derive income from the exploitation of natural resources, for the transparent and sustainable management of these resources; emphasises the need to establish full transparency regarding payments made to governments by European enterprises; calls on the Commission to support sustainable industrialisation strategies in developing countries, aimed at trading in value-added products;

24.

Considers that the EU’s trade and investment development aid tools, in particular the revised Generalised Scheme of Preferences and the Economic Partnership Agreements, are effective; stresses nonetheless that trade aid cannot be reduced to these instruments alone; reminds the EU of its aim for its total aid budget to be 0,7 % of GNI by 2015; urges the Commission to increase the share of its total aid budget that is allocated to technical assistance, including the field of standardisation; calls on the EU to display greater consistency in the implementation of its trade, agricultural, environmental, energy and development policies;

25.

Considers it essential that European development aid through trade policies incorporate all aspects of innovation — financial as well as technological and organisational innovation — on the basis of best practices;

26.

Recommends that the Commission negotiate the inclusion of actually enforceable human rights provisions in all future bilateral trade and cooperation agreements, in order genuinely to contribute to a rights-based approach to development;

27.

Stresses the importance of decent wage levels and decent safety at work standards for a sustainable global trade system and new global production chains; reminds the Commission, in this connection, of its communication ‘Promoting Decent Work for All’;

28.

Hopes to see, for the sake of consistency in the policies conducted by the EU, greater collaboration between the different Commission and EEAS services, and the three institutions of the Commission, the Council and the European Parliament;

29.

Considers that the criteria for evaluating development through trade and investment policies and programmes should include statistics not only on growth and trade, but also on the number of jobs created and improvements in the quality of life for people living in developing countries, in terms of human, social, cultural and environmental development;

30.

Stresses the importance of combining trade reforms with well-designed public policies, notably social protection; stresses, more broadly, the importance of timely, and well-prepared National Development Strategies and systematic impact assessments of existing trade policy on poverty; calls on the Commission to implement the guidance prepared by the UN rapporteur on the right to food which calls for the use of Human Rights Impact Assessments — ‘Guiding Principles on Human Rights Impact Assessments of Trade and Investment Agreements’ — when concluding trade and investment agreements, to ensure that these are consistent with obligations under international human rights instruments; also urges the EU to incorporate clear conditionality and clauses on human rights and democracy in all its trade agreements;

31.

Stresses the importance of anchoring corporate social responsibility (CSR) in free trade agreements with developing countries in order to promote human rights and social and environmental standards; suggests including a comprehensive human rights chapter, in addition to social and environmental chapters, in all future free trade agreements;

32.

Calls on the Commission to encourage governments of developing countries to conduct broad consultations including non-state and non-business actors during their trade policy-making; invites the Commission also to favour transparency during negotiations, so as to facilitate continued broad and effective involvement of stakeholders and support the pursuit of development results;

33.

Calls for in-depth impact analyses, from a climate, gender and sustainability perspective, of the outcome of multilateral and bilateral trade agreements negotiated between the EU and third countries; urges the Commission to authorise explicit support for the management of climate change as part of all aid-for-trade and other relevant development aid;

34.

Believes that benchmarks for development progress should be set in trade agreement negotiations in order to facilitate monitoring and, when necessary, modification of timetables for implementation of measures, modification of accompanying measures, which may include Aid for Trade and assistance for adjustment, and the preparation of new initiatives, when the pursuit of the development objectives so requires; highlights that providing developing countries with the legal and other expertise necessary to work effectively within the WTO and similar organisations is essential for trade negotiations;

35.

Calls on the EU to further lower trade barriers and trade-distorting subsidies in order to help developing countries increase their share of global trade; calls for the abolition of agricultural export subsidies, committed to in the WTO Doha Development Round, to be implemented at the earliest possible date;

36.

Encourages the Commission to support the call by the UN special rapporteur on the right to food to put in place a system of positive incentives to encourage the import into the EU of agricultural products that comply with specified environmental, social and human rights standards, in particular by ensuring fair revenues for producers and living wages for agricultural workers;

37.

Calls on the EU to always ensure that its broad approach to trade negotiations, with the inclusion of issues like investment, government procurement, competition, trade in services and intellectual property rights, is in line with the respective needs and development strategies of partner countries; urges therefore the EU to define its policy in full respect of the ‘special and differential treatment’ granted to developing countries; reiterates too that governments and parliaments must retain the right to regulate investment, both so as to be able to discriminate in favour of investors that support the country’s development and to ensure that there are obligations and duties on all, including foreign, investors regarding compliance with labour, environmental, human rights and other standards;

38.

Welcomes the inclusion of the gender aspect in the sustainability impact assessments linked to trade negotiations; calls on the Commission to take note of these assessments and ensure that the identified gender issues are indeed addressed by the policy measures accompanying the trade agreements;

39.

Believes that the focus in the negotiations on Economic Partnership Agreements should be on content rather than on deadlines; states that, for agreements to lead to development, a more flexible approach is needed on the part of the EU, encouraging the diversification of ACP countries’ economies, with increased processing activities and increased regional trade;

40.

Supports the Commission’s proposal to differentiate its aid for trade and to focus its efforts on the countries most in need, especially the least developed countries (LDCs) and low-income countries;

41.

Calls for AfT instruments to be focused not only on trade between the EU and developing countries, but also on support for internal, regional and South-South trade, as well as on triangular trade between ACP countries by promoting cross-border value chains, by increasing the efficiency of key services and by reducing transport costs, which at the same time can help strengthen developing countries’ ties with the global markets;

42.

Encourages the development of more effective support instruments in relation to production adjustment and diversification, as well as to the responsible and sustainable development of processing industries and small and medium-sized companies in developing countries;

43.

Stresses that gender inequalities in relation to access to resources, such as microloans, credit, information and technology, should be taken into account when defining strategies for aid-for-trade and other relevant development aid;

44.

Supports the package to promote trade for small operations in developing countries announced in the Commission communication; calls on the Commission to make progress in developing this package and calls on all donors to allocate sufficient funds to implement this package specifically to support the participation of small business in trade schemes that secure added value for producers, including those responding to sustainability (e.g. Fair Trade); requests regular updates on implementation of this package;

45.

Notes that trade capacity is dependent on both hardware (infrastructure) and software (expertise); calls therefore for EU aid to be invested so as to promote both elements in many countries, particularly in cooperation with the least developed countries;

46.

Calls on the EU to ensure that Aid for Trade promotes poverty-reducing and inclusive instruments, so its primary focus should be on the needs of small operators; stresses that Aid for Trade should be used to develop sustainable value chains with a pro-poor focus in order to enhance the goal of acquiring a sustainable supply chain;

47.

Calls for the EU to focus on remedying the problems in the AfT programmes, especially with regard to implementation and monitoring capacity; calls subsequently for a shift in perspective that focuses on results and outcomes instead of inputs, but recognises the need for diligent and concerted external scrutiny that ensures open and transparent trade practices;

48.

Calls for the EU to integrate the private sector in the design of AfT projects more effectively with a view to empowering companies in developing countries to boost trade;

49.

Considers that, in view of the transformation in the structure of international trade and of North-South trade, ownership of aid programmes by the beneficiary countries, together with transparency, accountability and sufficient resources, are crucial factors contributing to their effectiveness and success, the aim being to reduce disparities in wealth, share prosperity and achieve regional integration; also considers it crucial that the design and monitoring of these programmes systematically involve national, regional and local institutions, as well as civil society, and provide for oversight by the donors;

50.

Calls on the Commission to take better account of new challenges posed by development aid through trade, such as the differentiation of levels of development, support for local production and the diversification thereof, and the promotion of social and environmental standards;

51.

Urges all donors — public and private — to coordinate their actions more and to adjust them in line with current funds, particularly given the current situation with regard to budget cuts; recalls that the BRICS countries are now both aid beneficiaries and donors; calls on them to cooperate with the EU so their experience can be shared and their actions optimised, and to accept more responsibilities vis-à-vis the less developed countries and within the donor community; expresses concern at the proliferation of tied aid practices and urges the developed countries and the major emerging countries to avoid resorting to such practices;

52.

Asks the Commission and all donors to seek out innovative types of development funding and partnerships; recalls, in this connection, that peer-to-peer lending can also contribute to advancing development through trade; recommends better coordination of development projects funded by regional development banks and the World Bank/International Finance Corporation, and more widespread use of interregional funding schemes such as the EU-Africa Infrastructure Trust Fund;

53.

Urges the EU-based companies with production facilities in developing countries to abide strictly by obligations to respect human rights and freedoms, social and environmental standards, equality between women and men, core labour standards, international agreements and payment of appropriate taxes in a transparent manner; calls for the implementation without exception of the right to freedom from forced labour and especially from child labour;

54.

Is convinced of the potential of the private sector to function as a driving force in development and stresses that in order to realise this potential the process needs to serve local communities and generate, via the principle of inclusive fair supply chains, empowerment for all actors involved, from the producer/worker to the consumer;

55.

Welcomes the fact that a broad range of industries and transnational corporations set supplier codes of conduct detailing the social and environmental performance standards for their global supply chains; recalls however that the proliferation and heterogeneity of CSR codes present challenges; notes, in particular, that owing to the heterogeneity of the CSR concept, with different companies having developed different standards on accounting, auditing and reporting, levels of CSR are hard to compare; calls once more, therefore, on the EU to strive for a clear international legal framework for the responsibilities and obligations of business with regard to human rights;

56.

Calls moreover on EU-based and other companies to abide by the ten core principles of the UN’s Global Compact and Guiding Principles on Business and Human Rights;

57.

Calls for stronger EU efforts in relation to tax havens and capital flight, which undermine revenues of both EU and developing countries and work against poverty alleviation and wealth creation in poor countries; highlights that illegal capital flight from developing countries represents between six and 8,7 per cent of their GDP and 10 times the total development assistance for these countries; calls therefore on the Commission to proactively seek further opportunities for cooperation with developing countries on this issue; calls in particular for an international convention with the purpose of eliminating harmful tax structures (on the model of a multilateral mechanism for automatic tax-information exchange) that would include sanctions both for non-cooperative jurisdictions and for financial institutions that operate within tax havens (i.e. by considering the possibility of withdrawing banking licences from financial institutions that operate with tax havens along the lines of the US Stop Tax Haven Abuse Act);

58.

Urges the EU, other aid donors, partner country authorities and local and international private actors in developing countries to explore possible areas of cooperation for sustainable development in order to maximise the development output of business activities and to include civil society organisations at all levels of discussions;

59.

Highlights the vital importance of promoting public-private growth initiative partnerships in EU development policies and engaging the experience, expertise and management systems of the private sector in partnership with public resources; calls for helping local authorities in European Member States with experience in, for example, building infrastructure, to twin and cooperate with local authorities in developing countries;

60.

Believes that Foreign Direct Investment is also a strong driver for sustained economic growth, the transfer of know-how, enterprising spirit and technology and job creation, and is therefore vital to development; calls for the development agenda to focus on supporting capacity-building in developing countries aimed at creating a transparent, predictable and favourable investment climate where red tape for business is reduced to a minimum, property rights are respected, competition is promoted and sound macroeconomic policies are pursued;

61.

Notes that despite the implementation of the Kimberley Process for the certification of conflict diamonds, trade in natural resources is still fuelling rebels and human rights abuses are still taking place in mining areas; emphasises therefore the urgent need for a system of due diligence for gems and valuable minerals, such as so-called conflict minerals; takes the view that such a measure could contribute to addressing the overriding challenge of the resource curse and increase the benefits for developing countries to trade their commodities; welcomes, in this context, the Commission’s plans to publish a communication on conflict minerals;

62.

Acknowledges that the Commission is a partner in the Extractive Industries Transparency Initiative (EITI); calls on the Commission and parties active within the extractive industry to actively encourage more producer countries to join the initiative;

63.

Stresses that natural resources pose two main challenges for developed and developing countries: the environmental challenge of coping with impacts from using resources throughout their lifecycle, and the socio-political challenge of coping with human rights and poverty internationally;

64.

Strongly supports the legislative proposal for country-by-country reporting as part of the revision of the Accounting and Transparency Directive, in order to discourage corruption and prevent tax avoidance; calls on European extractive industries operating in developing countries to set an example in terms of social responsibility and the promotion of decent work;

65.

Points out that the governance problem in the resource sector has been addressed almost entirely by voluntary initiatives, the most prominent being the Extractive Industries Transparency Initiative that attempts to improve information transparency; observes, however, that although necessary, EITI is not sufficient to address the wider problem of corruption and bribery in the extractive sector; notes also that the UN Framework on Business and Human Rights (protect, respect, access to remedy) is not yet specific with regard to extractive industries and resources; in this respect, takes the view that there is a need to add specific provisions on extractive industries to the UN Framework on Business and Human Rights and that a first step might be to appoint a UN Human Rights Council special rapporteur on that issue, with a mandate to assess and develop recommendations;

66.

Takes the view that standards for transparency and certification need to be enlarged over time to fully address bribery and corruption in the extractive sector and beyond; calls, more broadly, on the EU to support stronger governance mechanisms to address the environmental and human rights dimensions of resource exploitation; takes the view, in particular, that an international convention for sustainable resource management is essential to lay down fundamental legal principles for sustainable resource management;

67.

Stresses that sustainable mining requires approaches that address the whole lifecycle of resources; points out that the complexity of global supply chains hinders transparency; takes the view, therefore, that existing transparency initiatives should be accompanied by certification efforts in the form of product labelling along mineral supply chains;

68.

Demands that private actors involved in trade with or refinement of products from extractive industries take steps to ensure the regular, thorough and strict follow-up of CSR principles along the supply chain;

69.

Calls on the Commission and the EEAS to build on the recently ratified Dodd-Frank Act by the US Securities Exchange Commission requiring resource extraction issuers to disclose certain payments made to governments; encourages the Commission to extend reporting requirements for extractive industries to other industries and to look at whether the disclosures should be independently audited;

70.

Takes the view that bilateral trade and investment policies should refer to common principles such as those provided by the Natural Resource Charter; considers, in line with due diligence supply chain efforts, that this could be accompanied by sectoral provisions in areas relating to smelters and refineries and metal and recycling industries;

71.

Urges the EU to acknowledge that export restrictions can be a component of some countries’ development strategies or be justified for environmental protection reasons;

72.

Urges the EU and all other donors not to facilitate or contribute to the reassignment of fertile land in food-insecure countries and regions to purposes other than food production and to establish good practice approaches to land and resource management for biofuels and other cash crops;

73.

Stresses the need to remove incentives for farmers in food-insecure countries to use their land for purposes other than food production, such as production of biofuels; believes that research and innovation, supported by pro-active policies in developed as well as in developing countries, can help reduce the contradiction between food security and energy interests;

74.

Instructs its President to forward this resolution to the Council and the Commission.

5.2.2016   

EN

Official Journal of the European Union

C 45/15

—

having regard to Articles 207 and 208 of the Treaty of the Functioning of the European Union and Article 3 of the Treaty on European Union,

—

having regard to the Commission communication ‘Trade, growth and development — tailoring trade and investment policy for those countries most in need’ (COM(2012)0022),

—

having regard to the Commission communication ‘Trade, Growth and World Affairs — Trade Policy as a core component of the EU’s 2020 Strategy’ (COM(2010)0612),

—

having regard to the Commission communication ‘Improving EU support to developing countries in mobilising Financing for Development’ (COM(2012)0366),

—

having regard to the Commission communication ‘A new response to a changing Neighbourhood’ (COM(2011)0303),

—

having regard to the Commission communication ‘Increasing the impact of EU Development Policy — an Agenda for Change’ (COM(2011)0637),

—

having regard to the Commission communication ‘Global Europe: a New Approach to financing EU external action’ (COM(2011)0865),

—

having regard to the Commission communication ‘Towards a comprehensive European international investment policy’ (COM(2010)0343),

—

having regard to the communication ‘A renewed EU strategy 2011-14 for Corporate Social Responsibility’ (COM(2011)0681),

—

having regard to the Commission communication ‘Towards an EU Aid for Trade strategy — the Commission’s contribution’ (COM(2007)0163),

—

having regard to the communication ‘Trade and Development: Assisting Developing Countries to Benefit from Trade’, (COM(2002)0513),

—

having regard to the 2012 EU Accountability Report on Financing for Development, and in particular the section on aid for trade (SWD(2012)0199),

—

having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States (ACP) and the European Union, signed in Cotonou on 23 June 2000, and its revisions in 2005 and 2010,

—

having regard to its resolutions of 25 November 2010 on human rights and social and environmental standards in international trade agreements (1), international trade policy in the context of climate change imperatives‘ (2) and corporate social responsibility in international trade agreements (3),

—

having regard to its resolution of 23 May 2007 on the EU’s Aid for Trade (4),

—

having regard to its resolutions of 25 March 2009 on the economic partnership agreements with the ACP regions and states (5),

—

having regard to its resolution of 27 September 2011 on a New Trade Policy for Europe under the Europe 2020 Strategy (6),

—

having regard to Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalised tariff preferences (7),

—

having regard to its position of 13 September 2012 on the proposal for a regulation of the European Parliament and of the Council amending Annex I to Council Regulation (EC) No 1528/2007 as regards the exclusion of a number of countries from the list of regions or states which have concluded negotiations (8),

—

having regard to its resolution of 6 April 2011 on future European international investment policy (9),

—

having regard to its position of 11 December 2012 on the Council position at first reading with a view to the adoption of a regulation of the European Parliament and of the Council establishing transitional arrangements for bilateral investment agreements between Member States and third countries (10),

—

having regard to its resolution of 16 February 2012 on the proposal for a Council decision on the conclusion of the regional Convention on pan-Euro-Mediterranean preferential rules of origin (11),

—

having regard to Commission Regulation (EU) No 1063/2010 of 18 November 2010 amending Regulation (EEC) No 2454/93 laying down provisions for the implementation of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (12),

—

having regard to the Council conclusions of 16 March 2012 on the EU’s approach to trade, growth and development in the next decade and of 15 October 2012 on financing for development,

—

having regard to its resolution of 25 March 2010 on the effects of the global financial and economic crisis on developing countries and on development cooperation (13),

—

having regard to the opinion of the European Economic and Social Committee of 18 September 2012 (14),

—

having regard to the WTO’s Aid-for-Trade Work Programme 2012-2013,

—

having regard to the joint statement by the Council and the representatives of the governments of the Member States meeting within the Council, the European Parliament and the Commission on the European Union Development Policy: ‘The European Consensus’ (15),

—

having regard to the EU Strategy on Aid for Trade: Enhancing EU support for trade-related needs in developing countries, adopted on 15 May 2007,

—

having regard to the Almaty Programme of Action for Landlocked Developing Countries adopted on 28—29 August 2003,

—

having regard to the Paris Declaration on Aid Effectiveness of 2 March 2005 and to the Busan Partnership for Effective Development Cooperation established on 1 December 2011,

—

having regard to the Istanbul Programme of Action for the LDCs for the decade 2011-2020 (16),

—

having regard to the ‘Seoul Development Consensus for Shared Growth’ adopted at the G-20 summit in Seoul on 11—12 November 2010,

—

having regard to UNCTAD’s World Investment Report 2012, the 2011 United Nations (UN) Guiding Principles on Business and Human Rights, the UN Guiding principles on human rights impact assessments of trade and investment agreements, the UNCTAD/FAO/World Bank/IFAD Principles for Responsible Agricultural Investment, the 2011 Revision of the OECD Guidelines for Multinational Enterprises, the Doha Mandate adopted at UNCTAD’s XIII Ministerial Conference in 2012 and the Rio+20 Conference in 2012,

—

having regard to Rule 48 of its Rules of Procedure,

—

having regard to the report of the Committee on International Trade and the opinion of the Committee on Development (A7-0053/2013),

A.

whereas the EU‘s trade and investment policy should be guided by the general principles of its external action as laid down in Articles 3 and 21 TEU, and should contribute to ‘the sustainable development of the Earth …, free and fair trade, eradication of poverty and the protection of human rights’;

B.

whereas Articles 207 and 208 of the Treaty on the Functioning of the European Union are interlinked; whereas Article 207 states that the EU‘s commercial policy shall be based on the principles and objectives of the Union‘s external action; whereas Article 208 requires that the Union‘s policies which are likely to affect developing countries shall take account of the objectives of development cooperation;

C.

whereas trade and investment between the EU, developing countries (DCs) and least developed countries (LDCs) is a means of achieving those objectives by stimulating the sustainable and inclusive growth of all parties enabling the transfer of technologies and skills and helping to create jobs, making it possible to increase competitiveness and productivity, achieve greater social cohesion and combat inequality;

D.

whereas trade and investment cannot in themselves have a decisive impact on growth and sustainable development, since the structural weaknesses (shortfalls in human capital, governance and infrastructure, a weak private sector, heavy reliance on exports of raw materials, poor export diversification, high trade costs, etc) from which DCs, including LDCs, suffer hamper their full access to world trade;

E.

whereas the EU trade and investment policy designed to stimulate growth in beneficiary countries must be in line with the development targets set by the relevant authorities and the principle of Policy Coherence for Development, and go hand-in-hand with technical and financial assistance and, where appropriate, development of North-South, cross-border and South-South public-private partnerships;

F.

whereas, in 2010, South-South trade came to account for 23 % of world trade; whereas, according to the WTO’s 2011 World Trade Report, preferential South-South agreements represented two-thirds of all such agreements, and North-South agreements only one-quarter; whereas, according to the World Investment Report 2012, the emerging economies between them attract almost half of the world’s foreign direct investment (FDI);

G.

whereas many countries are still not fully benefiting from trade, and the ratio of least-developed countries (LDCs) in the world GDP is falling; whereas, in spite of a high economic growth rate, the 49 LDCs still account for only 1,12 % of world trade; whereas trade has not been equally beneficial to all DCs, and in some cases has exacerbated social inequalities;

H.

whereas the major emerging countries, which still belong to the DC category, are simultaneously donors and beneficiaries of aid for trade; whereas the EU and the other developed countries should take greater account of the complex status of these new players, their importance and their specific characteristics, and hence adapt their aid for trade;

I.

whereas trade and investment measures to promote sustainable development can have very varied origins and forms; whereas several different programmes and actions may be run within the same country, but a lack of coordination can reduce their effectiveness and relevance and, ultimately, dent the public’s confidence in such measures;

J.

whereas the EU and its Member States are the largest donors of aid for trade, with EUR 10,7 billion committed in 2010 (or almost a third of the total amount of ODA); whereas the economic and financial crisis has raised the issue of reducing the funding earmarked for public-sector development assistance, and in particular aid for trade, as well as that of the effectiveness of its use;

K.

whereas the EU has committed itself to increasing its total aid budget to 0,7 % of GNI by 2015;

1.

Supports the Commission‘s aim of enhancing synergies between trade and development policies; recommends that it take account of beneficiary countries’ needs and capacities, encouraging instruments such as regional integration which can ensure that better advantage is taken of such synergies, and give priority to measures aimed at:

2.

Calls on the EU to respect the principle of Policy Coherence for Development when drawing up and implementing its trade, agricultural, environmental and energy policies, and to assess the impact of these policies on the level of development of the DCs and the LDCs;

3.

Stresses the importance of decent wage levels and decent workplace safety standards for a sustainable global trade system and new global production chains; reminds the Commission in this regard of its communication ‘Promoting Decent Work for All’;

4.

Urges the EU, other aid donors, authorities in partner countries and local and international private actors in developing countries to explore possible areas of cooperation for sustainable development, in order to maximise the contribution of business activities to achieving development goals;

5.

Stresses the need for the EU, in order to increase wealth and living standards among the poorest, to specifically target some of its trade-related assistance for responsible and sustainable development towards building local and regional trade capacities within and among these countries; welcomes the objectives of the Development Cooperation Instrument, which highlights the priorities of employment and growth in developing countries;

6.

Considers the ownership by beneficiary countries of programmes for developing trade and investment to be one of the decisive factors in their success; believes that national, regional and local authorities and civil society must be systematically involved, in accordance with the rule of law, in the framing and monitoring of national programmes;

7.

Encourages the DCs to mainstream the objective of sustainable economic development, as a cross-cutting national policy goal laid down in their respective strategies and initiatives; asks the Commission to work, inter alia by offering more assistance, towards increasing governments‘ capacity to incorporate issues linked to sustainable and inclusive economic development into their national trade strategies and programmes;

8.

Notes that better training in development issues would allow the clearer identification of concrete development needs and of possible ways to fulfil them in order to guide and facilitate the tasks of trade negotiators and other trade officials;

9.

Views as decisive investment aimed at creating, developing, strengthening and maintaining key sustainable transport, sustainable energy and telecommunications infrastructure, in particular cross-border infrastructure and intermodal hubs;

10.

Emphasises the need to establish full transparency regarding payments made to governments by European enterprises; calls on the Commission to support sustainable industrialisation strategies in developing countries aimed at trading in value-added products rather than just raw materials;

11.

Considers that when trade and investment are used as drivers for sustainable growth and economic development, they should target in particular the following objectives, while developing the production and infrastructure that is needed:

—

support for self-employed farmers and small cooperatives and for the development of sustainable agricultural, piscicultural and breeding practices which enable supply chains to be established, consolidated and diversified;

—

improving their access to financing and microfinancing;

—

supporting DCs in accessing information and in aligning to international health and plant health standards, in order to guarantee fair competition and broader access to markets, including better access for DCs to the markets of industrialised countries while better protecting their populations;

—

gradual removal of export restrictions and action to counter agricultural price speculation and volatility;

—

support for the introduction and marketing of socially and environmentally friendly goods and services, including eco-tourism, with a view to ensuring added value for the producers and respect for sustainability criteria;

—

sustainable and transparent management of natural resources;

—

programmes for the fair access of farmers to land;

—

creating access to capacity-building, especially around product diversification; enhancing products’ added value and assisting in compliance with standards and technical requirements for local, regional and international markets;

—

put in place a system of positive incentives in the Sustainable Development Subheadings of trade agreements, to encourage imports of agricultural products to the EU that comply with international environmental, social and human rights standards, in particular by ensuring fair incomes for producers and a living wage for agricultural workers, as called for by the UN special rapporteur on the right to food;

—

support the need for DCs and LDCs to ‘carve off’ certain sensitive agricultural products from reciprocal liberalisation;

—

the creation, strengthening and diversification of production capacities and sustainable manufacturing development that generates, via inclusive fair supply chains, benefits for the local actors involved;

—

improving the business and investment climate in order to facilitate private-sector participation, including local small businesses and, where appropriate, the development of public-private partnerships;

—

the gradual removal of trade restrictions, taking account of the need for DCs to diversify their economy and the need to protect infant industries in order to build up a sustainable domestic industrial base;

—

protection of intellectual property rights, including GIs, taking account the level of development of countries and with a view to favouring technology transfer (including green technology), in compliance with the Doha Declaration on TRIPS and Public Health;

—

promoting decent working conditions, transparency and sustainability; fostering sustainable and equitable forms of work; reinforcing labour safety standards and social protection systems, with particular reference to the ILO recommendations on national social protection floors;

—

strengthening the rule of law and good governance in order to improve the legal certainty, transparency and legality of private investments, and in particular of FDI;

—

carefully scrutinise existing provisions and negotiating directives on financial services in and for trade agreements, given that these should not hamper adequate financial regulation within the EU and its trading partners;

—

improving the conditions for public procurement;

—

enhancing the efficiency of public services;

—

promoting services that facilitate trade and investment, and particularly environment-friendly services, including tourism, logistics and investment;

—

helping national governments to decide their national trade policies and strategies with an adequate level of transparency and participation;

—

developing common tools and resources to provide the least developed countries concerned with practical information and methods;

—

support for the reform of tax and customs administrations, and for measures aimed at limiting the informal sector’s share of the economy as well as reintegrating the informal sector into the regulated economy;

—

improving the effectiveness, governance and organisation of transit systems and the movement of goods, persons and services;

—

establishing institutions that facilitate trade and investment and the creation of guarantee funds and risk capital funds, including seed capital and business angels;

12.

Supports the Commission‘s proposal to differentiate its aid for trade and to focus its efforts on the countries most in need, especially the least developed countries; recommends, nevertheless, that the Commission take account of a country’s general level of development and its needs, capacities and internal development inequalities, in addition to the standard indicators (gross national product, human capital and vulnerability to economic shocks); urges the Commission to take account of the principles of the Enhanced Integrated Framework (EIF) for the LDCs;

13.

Emphasises that social entrepreneurship and social innovation in the developing countries are the engines of growth for development, and can help reduce inequality and promote growth, provided that profits are reinvested in the economy;

14.

Takes the view that while transfers of funds and microfinance remain relevant tools, they alone cannot meet all funding requirements; calls on all donors to seek out and promote innovative forms of financing and partnership; supports the introduction of South-South and triangular partnerships; recommends more widespread use of interregional funding schemes, such as those implemented in connection with the EU-Africa Infrastructure Trust Fund;

15.

Supports the package for promoting trade for small operators in developing countries announced in the Commission communication; calls on the Commission to make progress on developing this package, and calls on all donors to allocate sufficient funds for its implementation, and, specifically, to support the participation of small businesses in trade schemes that secure added value for producers, including those responding to sustainability (e.g. Fair Trade); requests regular updates on implementation;

16.

Welcomes the adoption of the communication ‘Improving EU support to developing countries in mobilising Financing for Development’; calls on the Commission to implement its proposals swiftly, with a view to mobilising additional sustainable, predictable and effective financing; welcomes the guidelines set out in the OECD’s Policy Framework for Investment User’s Toolkit; welcomes the results of the Busan Global Partnership for Effective Development Cooperation and the Istanbul Principles for CSO Development Effectiveness;

17.

Expresses its concern at the proliferation of tied aid practices; urges the developed countries and the major emerging countries not to resort to such practices, but, rather, to make efforts to harness regional and local resources, including human capital, in their economic development projects centring on trade and investment;

18.

Recognises the work done by the international institutions (the WTO, UNCTAD, UNIDO, the OECD, the G20, the World Bank and the multilateral development banks) in the field of aid for trade; favours, in the framework of aid for trade programmes, the inclusion of measures to help DCs compensate for the losses stemming from trade liberalisation; considers that a system should be established to facilitate international, national and local cooperation between donors under the coordination of UNCTAD and the WTO; recalls the EU’s commitment to promote and facilitate the representation and participation of DCs in the above international institutions;

19.

Deplores the lack of coordination of investment policies, including at the international level; welcomes the agreement reached by Parliament and the Council on transitional arrangements for bilateral investment agreements between Member States and third countries; encourages the Commission to develop an EU policy on international investment which ensures proper investment protection, enhances legal certainty, and reflects the capacity of states to generate common rules and standards, while taking into account particular social, economic and environmental needs such as, inter alia, those set out in UNCTAD‘s Investment Policy Framework for Sustainable Development; recalls that DCs suffer disproportionately from high costs of investor-to-state dispute settlement;

20.

Considers it essential to reform the IIAs in order to strengthen their development dimension, by balancing the rights and obligations of states and investors, ensuring sufficient policy space for sustainable development policies, and making investment promotion provisions more concrete and more closely aligned with sustainable development objectives;

21.

Urges the Commission to produce disaggregated data on outbound EU foreign direct investment (FDI) to DCs and LDCs, considering the following categories of investment: mergers and acquisitions, intra-company shuffling of assets, speculative investment and green investment;

22.

Believes that cooperation should also focus on capacity and institution-building, so that DCs are able to frame the necessary conditions for investment, such as building tax-collection capacities, fighting tax evasion, and implementing the highest accounting standards;

23.

Welcomes the WTO‘s decision to facilitate accession for LDCs; calls on the developed countries and the major emerging countries which are WTO members to use the derogation applicable to services in the case of LDCs and to apply preferential treatment to services and service providers from LDCs, while paying particular attention to Mode 4, which is a priority for LDCs;

24.

Hopes that the EU and its Member States will use their influence, especially on the major emerging countries, to achieve a swift conclusion of the trade facilitation agreement negotiated as part of the Doha Round;

25.

Welcomes the commitment made by the BRICS countries to promote the growth and economic development of the DCs; calls on them to link their actions to respect for democratic principles and good governance and the promotion thereof; asks the Commission to continue to include a democracy and human rights clause in all trade agreements with developing countries;

26.

Urges the Commission to propose tangible ways of bolstering its support for swifter and deeper regional integration amongst DCs, with a view to developing regional markets and creating regional value chains; to this end, invites the Commission to promote regional integration in its bilateral and regional trade agreements; calls on the Commission to consider simplifying and harmonising rules of origin and the means of facilitating their use by small-volume exporters; calls on the Commission to strengthen its partnerships with existing regional institutions, and particularly the African Development Bank; points out the vital role played by the local private sector in terms of trade integration and economic development;

27.

Welcomes the reform of rules of origin and the entry into force of the reformed generalised system of preferences (GSP); hopes the Commission will come forward with a report on the consequences for beneficiary countries of the change in that system, and particularly for those countries for which preferences have been withdrawn, in accordance with the provisions of Article 40 of the new rules;

28.

Takes note of the provisional application of a first economic partnership agreement (EPA) with a group of African countries; encourages the Commission to take stock of the lack of progress so far in concluding other EPAs which take full account of the development interests of DCs; calls on the Commission to harness this momentum in order to relaunch the ongoing negotiations on EPAs between the EU and interested DCs, in order to gradually integrate their markets in the multilateral trade framework; stresses the importance of establishing a firm and fair legal and commercial framework for promoting EU investment in ACP countries in a form that is mutually beneficial; calls on the Commission to take into account Parliament‘s recommendations concerning preference erosion and the flexibility and scope of tariff dismantling, and to pay particular attention to implementing the EPAs;

29.

Believes that the EU has developed tools in the field of development assistance through trade and investment, including the GSP and EPAs, that are effective provided their provisions and implementation criteria do not result in discrimination or limitations that may prove disadvantageous to their potential beneficiaries; urges the Commission, nonetheless, to combine all the existing instruments in a genuine overarching strategy that also comprises measures in the fields of technical assistance for trade, capacity-building and trade-related adjustment, also in relation to standardisation; believes that the Commission and the European External Action Service should develop synergies in order to further enhance the Union‘s commercial diplomacy worldwide;

30.

Encourages the Commission to include Trade and Sustainable Development chapters in bilateral trade agreements with binding environmental and labour rules and CSR clauses; considers that, additionally, the Commission should offer cooperation to help DCs and LDCs meet those standards; believes that a strong involvement of civil society in the monitoring of the implementation of such chapters increases awareness and acceptance of environmental and social standards;

31.

Recommends that the Commission negotiate the inclusion of binding and enforceable human rights provisions, in addition to social and environmental provisions, in all future trade agreements in order to increase the effectiveness and credibility of the EU‘s conditionality policy;

32.

Urges the EU to design its trade agreements so as to foster responsible investor behaviour and compliance with best international practises of corporate social responsibility (CSR) and good corporate governance; stresses, in particular, that in order for growth to be inclusive and efficient in terms of poverty reduction, it should be pursued in sectors in which poor people are active, should benefit and empower women, and should be associated with the creation of jobs as well as with the development of finance for micro-enterprises and small businesses;

33.

Calls on EU-based companies with production facilities in developing countries to set an example by abiding by obligations to respect human rights and freedoms, social and environmental standards, core labour standards and international agreements;

34.

Calls on European corporations whose subsidiaries or supply chains are located in developing countries to comply with their national and international legal obligations in the areas of human rights, labour standards and environmental rules;

35.

Welcomes the fact that a broad range of industries and transnational companies have adopted codes of conduct detailing social and environmental performance standards for their global supply chains; recalls, however, that differing accounting, auditing and reporting standards for these codes make them difficult to compare; stresses that better implementation of the UN Guiding Principles on Business and Human Rights will contribute to EU objectives regarding specific human rights issues and core labour standards;

36.

Stresses that EU assistance to governments of third countries in implementing social and environmental regulation is a necessary complement to advancing the CSR of European businesses worldwide;

37.

Notes that, notwithstanding the implementation of the Kimberley Process for the certification of conflict diamonds, trade in natural resources is still fuelling rebels and human rights abuses are still taking place in mining areas; emphasises, therefore, the urgent need for a system of due diligence for extraction of and trade in gems and other so-called conflict minerals; takes the view that such a measure could contribute to addressing the overriding challenge of the resource curse and increase the benefits for developing countries of trading their commodities;

38.

Acknowledges that the Commission is a partner in the Extractive Industries Transparency Initiative (EITI); calls on the Commission and parties active within the extractive industry actively to encourage more producer countries to join the initiative;

39.

Urges the Commission, when concluding trade and investment agreements, to implement the guidance prepared by the UN rapporteur on the right to food which calls for the use of Human Rights Impact assessments (‘Guiding Principles on Human Rights Impact Assessments of Trade and Investment Agreements’), so as to ensure that the agreements are consistent with obligations under international human rights instruments;

40.

Instructs its President to forward this resolution to the Council, the Commission, the governments and parliaments of the Member States, and the ACP-EU Joint Parliamentary Assembly.

5.2.2016   

EN

Official Journal of the European Union

C 45/24

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having regard to the proposal for a Council regulation (COM(2012)0336) (the ‘BoP proposal’),

—

having regard to the request for consent to be submitted by the Council in accordance with Article 352 of the Treaty on the Functioning of the European Union,

—

having regard to the Treaty on the functioning of the European Union (TFEU), in particular Articles 143 and 352 thereof,

—

having regard to the Commission proposal of 23 November 2011 for a Regulation by the European Parliament and by the Council on the strengthening of economic and budgetary surveillance of Member States experiencing or threatened with serious difficulties with respect to their financial stability in the euro area, the amendments thereto adopted by Parliament on 13 June 2012 and the provisional text of the final agreement with Council (1),

—

having regard to the Commission proposal of 23 November 2011 for a Regulation by the European Parliament and by the Council on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area, the amendments thereto adopted by Parliament on 13 June 2012 and the provisional text of the final agreement with Council (2),

—

having regard to Council Regulation (EC) No 332/2002 of 18 February 2002, establishing a facility providing medium-term financial assistance for Member States' balances of payments (3),

—

having regard to its resolution of 20 November 2012 with recommendations to the Commission on the report of the Presidents of the European Council, the Commission, the European Central Bank and the Eurogroup ‘Towards a genuine Economic and Monetary Union’ (4),

—

having regard to Rule 81(3) of its Rules of Procedure,

—

having regard to the interim report of the Committee on Economic and Monetary Affairs (A7-0129/2013),

A.

whereas, pursuant to Article 352 of the Treaty on the Functioning of the European Union (TFEU), the Council, acting in accordance with a special legislative procedure, will adopt a regulation on establishing a facility for providing financial assistance for Member States whose currency is not the euro, acting unanimously, after obtaining the consent of Parliament;

B.

whereas a balance of payments (BoP) facility was established in 2002 by Council Regulation (EC) No 332/2002, enabling financial assistance to Member States whose currency is not the euro;

C.

whereas the total amount available in that facility has been increased from the initial EUR 12 000 million to EUR 25 000 million in December 2008 and to EUR 50 000 million in May 2009, in response to the financial crisis; whereas out of the EUR 50 000 million, EUR 13 400 million have been disbursed to Romania, Latvia and Hungary, in addition to a precautionary reservation of EUR 1 400 million to Romania;

D.

whereas Hungary, Romania and Latvia were the first Member States to request and benefit from Union financial assistance at the beginning of the financial and economic crisis by means of a BoP facility; whereas the economic and financial crisis has seriously hit several non-euro area Member States;

E.

whereas the global economic crisis has had a severe impact on all Member States, provoking a deterioration of their public deficit, balance of payment as well as the overall debt.

F.

whereas the European Stability Mechanism (ESM), which was established in October 2012, is the main support mechanism for euro area Member States, with a lending capacity of EUR 500 000 million, provided by subscribed capital; whereas the ESM will, in the future, under certain conditions, be able to fund banks in difficulties directly;

G.

whereas in its resolution of 20 November 2012, Parliament requested that the ESM evolve towards Community-method management, that it be made accountable to Parliament and that key decisions, such as the granting of financial assistance to a Member State and the conclusion of memorandums, should be subject to proper scrutiny by Parliament;

H.

whereas it is critical that the facility contains democratic accountability mechanisms as well as consideration of the functioning of national parliaments;

I.

whereas the BoP proposal does not provide for Member States whose currency is not the euro to benefit from financial instruments which are fully comparable to those within the ESM at their disposal;

J.

whereas updating Regulation (EC) No 332/2002 would help ensuring a level playing field between euro area and non-euro area Member States and would simplify the procedure for activating the balance of payments facility;

K.

whereas it is important to safeguard the role of the social partners and respect different national practice and institutions for wage formation when implementing Regulation (EC) No 332/2002 and the Regulation to be adopted on the basis of the BoP proposal, in particular when drafting and implementing macroeconomic adjustment programmes; whereas this is a horizontal issue for the whole of the Union and therefore consistency between euro area and non-euro area Members States is motivated in this regard.

1.

Welcomes the BoP proposal as a first step towards achieving a level playing field between euro area and non-euro area Member States; acknowledges that the task is not simple given the features of the mechanisms recently created for the euro area;

2.

Believes that the BoP financial assistance can play an important role in helping Member States to improve their administrative capacity to absorb Union funds more effectively;

3.

Is of the opinion, however, that a number of amendments, outlined in this interim report, are needed in order to achieve an acceptable outcome; therefore requests in the interest of transparent decision-making that the Council and the Commission await the adoption of this interim report before adopting the regulation on the basis of the BoP proposal;

4.

Highlights that Article 352 TFEU is a suitable legal basis for the Regulation to be adopted on the basis of the BoP proposal and stresses that this basis allows the establishment of new types of Union financial assistance and of a framework for such assistance beyond the scope of the assistance provided under Article 143 TFEU;

5.

Regrets that the Commission did not conduct a wide consultation before the adoption of the BoP proposal, and that the Commission did not provide reasons to suggest that this was because of exceptional urgency, as required pursuant to Article 2 of Protocol No 2 on the application of the principles of subsidiarity and proportionality annexed to the TFEU and to the Treaty on European Union (TEU);

6.

Points out and regrets that no reference was made to the application of the principles of subsidiarity and proportionality as required by Article 5 of Protocol No 2 on the application of the principles of subsidiarity and proportionality annexed to the TFEU and to the TEU; asks the Commission and Council to make an explicit reference to the above mentioned principles before submission of the draft Regulation for consent of the European Parliament;

7.

Asks the Council and the Commission to take account of the following requests before submission of the draft Regulation for consent of the European Parliament:

8.

Instructs its President to forward this resolution to the European Council, the Council, the Commission, the European Central Bank, the European Stability Mechanism and the International Monetary Fund.

5.2.2016   

EN

Official Journal of the European Union

C 45/29

—

having regard to the 2011 Annual Report of the European Central Bank,

—

having regard to Article 284 of the Treaty on the Functioning of the European Union (TFEU),

—

having regard to Article 15 of the Statute of the European System of Central Banks and of the European Central Bank,

—

having regard to its resolution of 2 April 1998 on democratic accountability in the third phase of the EMU (1),

—

having regard to its resolution of 1 December 2011 on the European Central Bank (ECB) Annual Report for 2010 (2),

—

having regard to Rule 119(1) of its Rules of Procedure,

—

having regard to the report of the Committee on Economic and Monetary Affairs (A7-0031/2013),

A.

whereas real GDP growth in the eurozone was 1,5 % in 2011, which represents a slowdown from 1,9 % in 2010; whereas several Member States experienced a severe economic downturn over the same period;

B.

whereas unemployment in the eurozone increased from 10 % at the end of 2010 to 10,7 % at the end of 2011; whereas youth unemployment increased significantly over the same period;

C.

whereas about 14,4 million new jobs have been created in the eurozone since 1999, compared with approximately 10,7 million in the United States;

D.

whereas, in 2011, the ECB increased interest rates twice, in April and July (25 basis points each time) and reduced them twice at the end of the year, in November and December (again 25 basis points each time);

E.

whereas the average inflation rate in the eurozone was 2,7 % in 2011, up from 1,6 % in 2010 and M3 growth was 1,5 % in 2011, down from 1,7 % in 2010;

F.

whereas the consolidated financial statement of the Eurosystem reached EUR 2 735 billion at the end of 2011, representing an increase of around 36 % over the course of 2011;

G.

whereas the ECB launched its first three-year Long Term Refinancing Operation (LTRO) on 21 December 2011, which allotted EUR 489,2 billion in three-year maturity loans;

H.

whereas the growth of credit to the private sector slowed down significantly from 1,6 % in 2010 to 0,4 % in 2011, and loans to the private sector from 2,4 % in 2010 to 1,2 % in 2011;

I.

whereas both the M3 broad aggregate and the annual growth rate of credit extended to the private sector experienced a sharp deceleration over the last quarter of 2011;

J.

whereas the outstanding amount of bonds settled under the securities market programme at the end 2011 stood at EUR 211,4 billion;

K.

whereas non-marketable assets became the largest component of assets put forward as collateral to the Eurosystem in the course of 2011, representing 23 % of the total, and whereas non-marketable securities, together with asset-backed securities, represent more than 40 % of total assets put forward as collateral;

L.

whereas average gross general government debt rose from 85,6 % to 88 % of GDP and the aggregate general government deficit fell from 6,2 % to 4,1 % of GDP; whereas some eurozone countries experienced rising deficit levels;

M.

whereas Article 282 of the TFEU states that the primary objective of the ECB is to maintain price stability and that the ECB should support general economic policies of the Union without prejudice to price stability, and also whereas the ECB is conferred specific tasks regarding the European Systemic Risk Board (ESRB);

N.

whereas a low inflation environment is the best contribution monetary policy can make to creating favourable conditions for economic growth, job creation, social cohesion and financial stability;

O.

whereas the ECB’s long-term refinancing operations of December 2011 and February 2012 meant that European banks were granted over EUR 1 trillion — EUR 489 billion and EUR 529,5 billion, respectively — in the form of low-interest loans with a term of three years and a 1 % interest rate;

P.

whereas the recommendations concerning transparency of voting and the publication of summary minutes put forward in previous Parliament resolutions on the ECB annual reports have not yet been taken into account;

Q.

whereas price stability is fundamental if excessive inflation is to be prevented;

R.

whereas maintaining a flow of credit to SMEs is particularly important as they employ 72 % of the eurozone’s labour force and have significantly higher gross job creation (and destruction) rates than large enterprises;

1.

Commends the proactive stance of the ECB during 2011 and 2012, in a context in which risks to eurozone stability increased considerably;

2.

Welcomes the ECB’s stance in these times of crises, both as far as its monetary policy and its actions to stabilise the financial markets are concerned;

3.

Notes that the fear of inflation in the medium term and the decisions of April and July 2011 to increase the key ECB interest rates may have contributed, among other factors, to increasing the policy-induced risk premia of financial intermediaries and, therefore, to slowing down credit growth, weakening further the already anaemic economic recovery that was observed in the first trimester of 2011; understands that at that time there was a rebound in economic activity and an increase in price levels which led the ECB to fear a return to inflation in the medium term;

4.

Welcomes the subsequent decision to revert these decisions at the end of 2011, and the additional reduction in 2012, as well the adoption of non-standard measures with the objective of aiming at restoring the monetary transmission mechanism;

5.

Notes that the rise in inflation observed in 2011 was mainly due to rising price on energy and, to a much lesser degree, food and other commodities, among other factors;

6.

Acknowledges the efforts undertaken by the ECB to help stabilise markets, namely through the Securities Markets Programme (SMP), the three-year longer-term refinancing operation (LTRO) and the Outright Monetary Transactions (OMT), but points out that a structural solution to the crisis is not yet in sight;

7.

Notes the SMP helped temporarily to alleviate pressure on borrowing costs for eurozone Member States experiencing or threatened with serious difficulties with respect to their financial stability; notes that the liquidity absorbing operations conducted in order to sterilise these purchases reduced the levels of excess reserves, contributing, to a certain extent, to the aim to regain control of the euro overnight index average (EONIA);

8.

Acknowledges that while the two three-year LTROs have been effective in avoiding a credit crunch, questions remain as to the ability of the financial sector to return the loans received by the ECB; points out that the results, in terms of credit growth, have been unsatisfactory; notes that the decision to launch the first three-year LTRO on 21 December 2011 coincided with the winding down of the SMP programme; understands the ECB does not consider any of its operations as a direct financing of sovereign debt;

9.

Asks the ECB to publish, in its monthly report, figures for the amount of public debt of each Member State posted as collateral by financial institutions;

10.

Notes the transfer of risks from struggling banks and governments to the ECB’s balance sheet, which is now worth more than 30 % of the eurozone’s GDP; stresses that the three-year LTROs do not provide a fundamental solution to the crisis;

11.

Expresses its deep concern over the rising levels of excess liquidity observed through 2011, in particular in the second semester, which is due to a lack of confidence between banks and a lack of lending to the real economy, arising from the uncertainty created by economic stagnation and over-indebtedness of the public and private sectors in some Member States; points out that this situation, which is indicative of risks conducive to a liquidity trap, damages the efficiency of monetary policy efforts;

12.

Notes that swap lines with other central banks, as well as the recourse to the main refinancing operations, the medium and long-term refinancing operations with full allotment at fixed rates, the recourse to the marginal lending facility and the deposit facility remained all at significantly high levels throughout 2011, signalling a severe impairment of the monetary transmission mechanism and the eurozone interbank lending market;

13.

Is concerned about the significantly high levels of Emergency Liquidity Assistance (ELA) lines provided by national central banks in the course of 2011under the authorisation of the ECB, and demands further disclosure of, and complementary information on, the precise extent of such lines and the underlying operations, and on the conditions attached to them;

14.

Notes that the credit available to businesses and households is still far below the pre-crisis levels and has slowed down its growth in 2011; underlines that this fact, combined with the fact that the deposit facility held EUR 315,754 million on 28 September 2012, has clearly justified the ECB’s decision to reduce the rates applied to the marginal lending facility, the main refinancing operations and the deposit facility;

15.

Takes note of the measures of the ECB on the lowering of collateral requirements and the stance on collateral rules for asset-backed securities (ABS), as these are deeply correlated with loans to households and SMEs;

16.

Remains, however, worried about the significant levels of non-marketable assets and asset-backed securities put forward as collateral to the Eurosystem in the framework of its refinancing operations; asks the ECB to provide information on which central banks have accepted such securities, and to disclose detailed information on the valuation methods regarding all assets, including impaired ones;

17.

Believes that, on collateral rules, the same standards should apply for sovereign as for regional government bonds in those cases where regions have legislative and tax powers, as both types of bond have relevant influence on the good transmission of the ECB monetary policy;

18.

Underlines that institutions which have benefited from extraordinary central bank liquidity support should be subject to conditionality, including the commitment by institutions benefiting from such support to increase the levels of credit by establishing loan targets to the real economy, and especially to SMEs and to households, without which such efforts may prove to be ineffective;

19.

Asks the ECB to explore, in close cooperation with Member State governments, competent national supervisory authorities and the Commission, the possibility of implementing a framework, such as the MERLIN programme elaborated by the Bank of England in partnership with the UK treasury, regarding conditionalities attached to the access to central bank non-conventional facilities such as targets on loans granted to SMEs;

20.

Warns that in the absence of proper conditionality, non-standard measures such as three-year LTROs may fall short of producing the desired effects, increasing volatility and favouring the formation of asset bubbles in financial markets or, alternatively, facilitating the deleveraging process without meaningful counterparts regarding credit allocation; calls, therefore, on the ECB to analyse carefully the effects, both desired and undesired, of these or other measures;

21.

Acknowledges that since the monetary transmission mechanism is not functioning properly, the ECB should seek ways to target SMEs more directly; points out that at present similar SMEs from across the eurozone do not have similar access to loans despite having similar economic prospects and risks; invites the ECB to implement a policy to purchase high-quality securitised SME loans directly, particularly from some Member States where the monetary transmission mechanism is broken; stresses that this policy should be limited in amount and time, fully sterilised and directed to avoid risks on the ECB balance sheet;

22.

Underlines that such terms should be directly linked to the economic benefits provided by banks by means of the non-conventional monetary policy measures and the bail-out programmes, assuring that the new revenues allowed by these policies will result in more credit placements;

23.

Recalls that monetary policy shares a part of the responsibility for the creation of asset bubbles, given the unsustainable credit growth during the years leading up to the crisis, even though price stability was ensured; underlines the importance of asset price trends and credit dynamics as indicators for monitoring financial stability;

24.

Recalls its position on the Capital Requirements Directive (CRD) IV negotiation process to impose additional conditions to institutions having benefited from ECB liquidity support;

25.

Deems that the TARGET2 settlement system has played a crucial role for safeguarding the integrity of the eurozone financial system; notes, however, that the significant TARGET2 imbalances reveal the worrying fragmentation of financial markets within the eurozone, as well as the ongoing capital flight in Member States experiencing or threatened with serious difficulties with respect to their financial stability;

26.

Congratulates the ECB and the Eurosystem for making more transparent the TARGET2 system in its 2011annual report; asks the ECB and the Eurosystem to publish monthly statistics on the system’s evolution;

27.

Believes that the TARGET2 system is fundamental for the good functioning of the euro;

28.

Underlines that interesting lessons may be drawn for the Eurozone from the study of the functioning of balance of payments systems in other federal monetary unions such as the United States;

29.

Asks the ECB and the Commission to consider whether articles 129,3 and 129,4 of the TFEU may provide an appropriate legal basis for increasing the overall transparency and granularity of the Eurosystem’s consolidated balance sheet;

30.

Calls on the ECB to make public the legal decision concerning the OMT programme in order to be able to analyse more deeply its details and implications;

31.

Welcomes the ECB’s commitment to guarantee a pari passu status for asset holdings related to any future OMT programme, as well as its emphasis on the sterilisation of all OMT purchases, in order to mop up excess reserves; acknowledges, at the same time, the challenges related to such sterilisation measures and underlining the need to closely monitor and evaluate the effects; believes that the OMT programme may fit the needs of those countries that are close to finish their bail-out and are beginning to issue debt again;

32.

Points out that the ongoing crisis is a matter of concern as it threatens the substantial efforts made by Member States regarding their budgetary consolidation and crisis response strategies; notes that the current severe economic downturn in several eurozone Member States has negative economic and fiscal consequences, such as effects on tax revenues and social expenditure in those countries, further deteriorating their public debt problems;

33.

Points out that sovereign bonds and financial institutions show persistent vulnerabilities and that the negative feedback loop between sovereign bonds and banks can only be broken through fiscal consolidation and banking sector capitalisation in an economic growth environment;

34.

Considers that a cause of public accounts unsustainability in some countries of the eurozone is the ongoing economic recession, causing rising unemployment and falling tax revenues; affirms, therefore, that policies to foster growth and job creation must be a key priority for the Union;

35.

Encourages ECB President Mario Draghi to resume a tradition initiated by his predecessor Jean-Claude Trichet, who at the Eurogroup meetings persistently raised the issue of macroeconomic imbalances, especially the differentials between productivity and wage increases, which led to a marked divergence between competitiveness levels between the Member States;

36.

Considers that the ECB’s actions should be assessed in the context of the current debate on the future of the EMU; points out that it has called for an increased budgetary capacity for the EMU, in the framework of the EU budget and based on specific own-resources (including a financial transaction tax), to support growth and social cohesion, and to address imbalances, structural divergences and financial emergencies which are directly connected to the monetary union, without undermining its traditional functions to finance common policies; considers that such a budgetary capacity would significantly improve the policy-mix in the EMU;

37.

Notes the ECB’s reluctance to assume its own share in debt restructuring processes, including on the bonds it acquired in the secondary market, below face value; notes the ECB’s reluctance to disclose relevant information on the matter to date, notably the price at which it purchased Greek bonds; understands that the ECB deemed that such participation would have amounted to monetary government financing;

38.

Recalls that the ECB signalled its readiness to cooperate with national central banks and Member State governments in setting up a mechanism aimed at channelling to debt reduction efforts any profit made by means of the SMP operations on Greek sovereign debt securities held for monetary purposes; asks the aforementioned parties to act diligently to set up such a mechanism;

39.

Notes that the economic situation in some economies is generating severe capital flows that worsen those economies’ funding difficulties and that are unsustainable in the short and — even more — long term; stresses that these imbalances have had massive distorting effects leading to costly negative externalities and are a problem for the entire eurozone, threatening the stability of all its economies; these imbalances can only be dealt with if a comprehensive and far-reaching solution to the eurozone crisis is implemented that is built on an approach combining solidarity and responsibility;

40.

Asks that ways be explored to make the ‘troika’, in which ECB representatives participate democratically accountable to the European Parliament; insists on the fact that the public hearings currently organised in Parliament are not enough to ensure democratic accountability;

41.

Invites the ECB to present, in the framework of the Monetary Dialogue and in its next annual report, an ex post assessment of its involvement in, and impacts for, the adjustment programmes, the potential conflicts of interests arising from such participation and the adequacy of its macroeconomic assumptions and scenarios;

42.

Considers it urgent to create the banking union, a project that is only made possible through a coherent articulation of instruments, responsibilities and overall democratic accountability;

43.

Considers that, to overcome the structural deficiencies inherent in the EMU, and to effectively curb the pervasive moral hazard, the proposed banking union should draw on the earlier reform of the Union financial services sector (including the creation of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), the European Insurance and Occupational Pensions Authority (EIOPA) and the ESRB) and on the strengthened economic governance (in particular in the eurozone), and new budgetary framework, of the European Semester to ensure greater resilience and competitiveness of, and increased confidence in, the Union banking sector, and to secure enhanced capital reserves in order to prevent Member States’ public budgets from having to bear the costs of future bank bail-outs;

44.

Calls for the single supervisory mechanism (SSM) to be put in place as soon as possible in order to increase the credibility of the Eurozone banking system; points out that the conferral of supervisory tasks to the ECB is without prejudice to the adoption, through the ordinary legislative procedure, of a future and more comprehensive architecture fully separated from monetary policy;

45.

Welcomes the current impetus aiming at building a SSM; points out that enhanced proposals on banking recovery and a single European resolution authority, and on deposit guarantee schemes, are necessary in order to complete the broad set of legal instruments required for a banking union;

46.

Calls on the Commission to put forward proposals for a new European resolution fund and a European deposit guarantee scheme that complement the supervisory functions of the ECB;

47.

Deems that it is of paramount importance that effective safeguards are introduced to avoid that conflicting agendas are reflected in the ECB’s monetary policy and its supervisory powers; stresses that any possible erosion of the ECB’s authority for monetary policy, as well as any erosion of its supervisory powers due to monetary policy imperatives, need to be addressed by means of suitable mechanism set up to identify and resolve potential conflicts;

48.

Underlines the difficulties facing the banking union project arising from the persistence of the economic crisis which is generating a process whereby banks are re-nationalising their activities; considers that this could undermine the spirit and the efficiency of the Single Market;

49.

Notes that the debate over the creation of a banking union with the objective of a more stable and resilient financial system is intimately connected to the need to design and introduce ring-fencing and institutional separation in the banking sector — inspired by, for example, OECD recommendations and the recommendations presented in the Vickers and Liikanen reports — as well as the need to fully regulate the shadow-banking sector;

50.

Takes the view that all Member States participating in SSM should be involved with equal rights and responsibilites.

51.

Believes that it should be consulted in the nomination of the members of the Supervisory Council of the ECB;

52.

Recognises the importance of the EBA-designed single rule book for maintaining the cohesion of the Single Market;

53.

Regrets the lack of transparency of the working method as well as the lack of accountability of and democratic control over the Troika; believes that any such body, current and future, involving the ECB and/or the Commission should be accountable both to the European Parliament and to national parliaments at their respective levels;

54.

Stresses the importance of making the regular monetary dialogue between the ECB and Parliament much more effective, noting in particular that Members of the European Parliament (MEPs) do not receive sufficient feedbacks on the results and implementation of the proposals and ideas that they put forward during the dialogue; asks the ECB to publish on a web page its replies to written questions addressed to it by MEPs; asks the ECB to provide detailed reactions to Parliament’s annual reports on the ECB in its subsequent annual reports;

55.

Calls on the ECB to publish the summary minutes of the Governing Council meetings, including arguments and voting records, and improve access to ECB documents and policy procedures;

56.

Understands that, in most cases, decisions are being taken on a consensual basis;

57.

Stresses that it will fully play its role as legislator in all matters involving a banking supervision; underlines the need to reinforce the ECB’s democratic accountability in view of the new responsibilities conferred to the institution regarding supervisory tasks, its involvement in the Troika’s programmes and, more generally, its prominent role in managing the crisis;

58.

Points out that a Treaty revision concerning the ECB’s new tasks in the field of prudential supervision should not be excluded as a means to reflect the evolving nature of the EU institutional setting, the pressing accountability and oversight issues and the challenges prompted by the deepening of the Union;

59.

Urges the Governing Council of the ECB to improve significantly and disclose its rules on conflicts of interests and cooling-off periods with regard to senior ECB executives, and to keep a record of meetings between senior ECB officials and stakeholders;

60.

Is deeply concerned about the absence of women in the ECB’s executive board, a situation that runs counter to the principles enshrined in the Treaty concerning equality between men and women (Articles 2, 3 and 8 in the TEU, as well as Article 21 in the Charter of Fundamental Rights), that contributes to the feeling among EU citizens that the ECB is remote to their concerns, and that is contrary to the Commission’s and Parliament’s recommendations for improving gender parity in high-level decision boards in the economic sector;

61.

Insists that, in the event that ECB becomes in the end single supervisor for banks in the eurozone, even on a temporary basis, Parliament should have a clear role in the nomination of the members of the supervisory board;

62.

Calls for its powers to impeach an ECB Governing Council member, in cases of serious misconduct, to be enhanced;

63.

Instructs its President to forward this resolution to the Council and the Commission, to the Eurogroup and to the European Central Bank.

5.2.2016   

EN

Official Journal of the European Union

C 45/36

—

having regard to the Joint Communication from the High Representative of the Union for Foreign Affairs and Security Policy and the Commission to the European Parliament and the Council of 12 December 2011 entitled ‘Human rights and democracy at the heart of EU external action — Towards a more effective approach’ (COM(2011)0886),

—

having regard to the EU Strategic Framework and Action Plan on Human Rights and Democracy (11855/2012), as adopted by the Foreign Affairs Council on 25 June 2012,

—

having regard to the European Union’s Guidelines on Human Rights,

—

having regard to the conclusions of the Los Cabos (Mexico) G20 Summit of 18—19 June 2012,

—

having regard to the Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 13 October 2011 entitled ‘Increasing the impact of EU Development Policy: an Agenda for Change’(COM(2011)0637),

—

having regard to the Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee of 27 January 2012 entitled ‘Trade, growth and development — Tailoring trade and investment policy for those countries most in need’ (COM(2012)0022),

—

having regard to the Universal Declaration of Human Rights of 1948,

—

having regard to the International Covenant on Civil and Political Rights (ICCPR) and the International Covenant on Economic, Social and Cultural Rights (ICESCR),

—

having regard to the General Affairs Council Conclusions of 24 September 2012,

—

having regard to UN Human Rights Council resolution S-10/1 of 23 February 2009 on the impact of the global economic and financial crises on the universal realisation and effective enjoyment of human rights,

—

having regard to the UN Conference on the World Financial and Economic Crisis and Its Impact on Development, held in New York from 24 to 26 June 2009, and the outcome document adopted by the Conference (as endorsed by UN General Assembly resolution 63/303 of 9 July 2009),

—

having regard to the United Nations Millennium Declaration of 8 September 2000 on the Millennium Development Goals (1),

—

having regard to the Rome Principles for Sustainable Global Food Security, adopted by the World Summit on Food Security held in Rome on 16—18 November 2009,

—

having regard to the 2009 UN report by the then UN Independent Expert on the question of human rights and extreme poverty, Magdalena Sepúlveda Carmona, currently Special Rapporteur on extreme poverty and human rights,

—

having regard to the report of 4 February 2009 by the UN Special Rapporteur on adequate housing as a component of the right to an adequate standard of living, and on the right to non-discrimination in this context, Raquel Rolnik,

—

having regard to UN policy briefing note No 07 of October 2012 by the UN Special Rapporteur on the right to food, Olivier de Schutter, and the UN Special Rapporteur on extreme poverty and human rights, Magdalena Sepúlveda Carmona, entitled ‘Underwriting the poor — A Global Fund for Social Protection’,

—

having regard to its resolution of 25 March 2010 on the effects of the global financial and economic crisis on developing countries and on development cooperation (2),

—

having regard to its resolution of 25 November 2010 on human rights and social and environmental standards in international trade agreements (3),

—

having regard to its resolution of 11 December 2012 on a digital freedom strategy in EU foreign policy (4),

—

having regard to its resolution of 8 June 2011 on investing in the future: a new Multiannual Financial Framework (MFF) for a competitive, sustainable and inclusive Europe (5),

—

having regard to its resolution of 6 July 2011 on the financial, economic and social crisis: recommendations concerning the measures and initiatives to be taken (6),

—

having regard to the Commission Communication of 13 October 2011 entitled ‘The future approach to EU budget support to third countries’ (COM(2011)0638),

—

having regard to its resolution of 23 October 2012 on an Agenda for Change: the future of EU development policy (7),

—

having regard to the Global Monitoring Report 2012 of 20 April 2012 by the World Bank and International Monetary Fund,

—

having regard to the joint report by the International Labour Organisation (ILO) and the World Bank of 19 April 2012 entitled ‘Inventory of Policy Responses to the Financial and Economic Crisis’,

—

having regard to the World of Work Report of 29 April 2012 by the International Labour Organisation, entitled ‘Better Jobs for a Better Economy’,

—

having regard to the report of the International Labour Organisation entitled ‘Global employment trends for youth 2012’ of May 2012,

—

having regard to Rules 48 and 119(2) of its Rules of Procedure,

—

having regard to the report of the Committee on Foreign Affairs and the opinion of the Committee on Development (A7-0057/2013),

A.

whereas, although the financial and economic crisis affects, to varying degrees, all regions in the world, including the European Union, the scope of the present resolution is to assess the impact of the financial and economic crisis in third countries, with the main focus on developing and least developed countries;

B.

whereas the financial and economic crisis is in fact a global systemic crisis and has become intertwined with numerous other crises, such as the food, environmental and social crises;

C.

whereas not only economic and social rights but also political rights are affected by the crisis when governments in some cases limit freedom of expression or association in the context of growing discontent and economic hardship, as reflected, in particular, by popular protests such as those which took place in North Africa and the Middle East in 2011;

D.

whereas civil and political rights are at risk as a result of the brutal repression of social protests in many countries around the world; stresses that the right to information and the right to participate in government policy decisions concerning measures to fight the crisis must be respected;

E.

whereas, although the impact of the crisis on civil and political rights has yet to be fully evaluated, it is clear that it has magnified social unrest, leading sometimes to violent repression, and has multiplied the failures to respect basic rights, such as freedom of expression and the right to information;

F.

whereas the financial and economic crisis has had a negative impact on developing and least developed countries, mainly reflected in shrinking demand for their exports, high levels of indebtedness, the risk of reduced foreign direct investment (FDI) inflow and declining Official Development Assistance (ODA), also affecting human rights since fewer resources are available to ensure social and economic rights, and more people are being driven into poverty;

G.

whereas the global economic crisis has had a major impact on living standards in the developing world over the last 10 years, and whereas the rate of inequality has increased in one quarter of developing economies, thus limiting access to education, food, land, and credit;

H.

whereas the EU’s collective ODA decreased from EUR 53,5 billion in 2010 to EUR 53,1 billion in 2011, bringing the EU ODA level to 0,42 % of GNI, down from the 2010 outcome of 0,44 % of GNI; whereas the EU and its Member States nevertheless remain the world’s leading providers of ODA;

I.

whereas the objective of the trade agreements signed by the EU with partner countries is, inter alia, to promote and expand trade and investment, and to improve market access, with a view to increasing economic growth, cooperation and social cohesion, reducing poverty, creating new employment opportunities, improving working conditions and raising living standards, and thereby ultimately contributing to the fulfilment of human rights;

J.

whereas proper monitoring and practical enforcement of the human rights clause of each trade agreement must be guaranteed; whereas any systematic violation of the human rights clause enshrined in the EU’s trade agreements entitles each signatory party to take ‘appropriate measures’, which may include totally or partially suspending or terminating the agreement or imposing restrictions;

K.

whereas the Aid-for-Trade Initiative has shown positive results, contributing to the development of better trading capacity and economic infrastructure in partner countries;

L.

whereas the failure to put into place adequate measures to prevent, detect and root out all forms of corruption is one of the reasons for the financial crisis; whereas widespread corruption in the public and private sectors, both in developing and developed countries, hampers effective, broad and equal protection and promotion of civil, political and social rights; whereas corruption impedes democracy and the rule of law and directly affects the population since it increases the cost of public services, lowers their quality and often restricts poor people’s access to water, education, health care and many other key services;

M.

whereas the current economic crisis carries significant implications for democracy and governance assistance by the European Union and other major donors; whereas economic difficulties for donor countries are likely to encourage reductions in overseas assistance; whereas, however, the global crisis makes it all the more important to sustain support for political reform and democratic development in third countries;

N.

whereas the financial and economic crisis is also having a disproportionate effect on the rights of specific groups of people, particularly the poorest and marginalised;

O.

whereas the rights of the poorest people have been most affected by the crisis; whereas, according to the World Bank, 1,2 billion people live in extreme poverty on less than USD 1,25 a day; whereas the World Bank estimates that, even in the event of a rapid recovery, some additional 71 million people in the world will remain in extreme poverty by 2020 as a result of the economic crisis; whereas three-quarters of the world’s poor live in middle-income countries;

P.

whereas the financial crisis has spread around the world through a variety of transmission channels, interacting with other crises (such as the food and fuel crises) at different speeds and intensities; notes with concern that, owing to the crisis, the World Bank and the UN estimate that between 55 and 103 million more people have to live in poverty, thereby jeopardising further achievement of human rights;

Q.

whereas people who are living in poverty and are extremely vulnerable need effective and affordable access to justice in order to be able to claim their rights or challenge violations of human rights committed against them; whereas lack of access to a fair trial and judicial process further subjects them to economic and social vulnerability;

R.

whereas global unemployment reached 200 million in 2012 — an increase of 27 million since the start of the crisis in 2008, jeopardising the right to work and resulting in a decrease in household incomes; whereas worsening economic conditions and unemployment may have an impact on the health of individuals, which can cause a lack of self-esteem or even depression;

S.

whereas more than 40 % of workers employed in developing countries work in the informal sector, leading in many cases to unstable and unequal working conditions without any social protection, and only 20 % of their families have access to any form of social protection;

T.

whereas because of the crisis, women’s rights have deteriorated through, for example, additional unpaid work and increased violence; whereas the development of public services and establishment of effective social protection systems are essential in ensuring respect for women’s economic and social rights;

U.

whereas women often experience unequal treatment in the workplace compared to men, in terms of access to employment, salary, dismissal, social security benefits and rehiring;

V.

whereas the crisis disproportionately affects young people; whereas, globally, 74,8 million young people aged 15–24 were unemployed in 2011, an increase of more than 4 million since 2007, with an exceptionally high level of unemployment in the Middle East and North Africa;

W.

whereas, in low- and middle-income countries, there are around 200 million young people who have not completed primary school and have thus been denied their right to education;

X.

whereas children are particularly affected by the financial and economic crisis, with their circumstances often aggravated by the vulnerabilities and risks experienced by their caregivers;

Y.

whereas, globally, 61 million primary-school age children are not attending school and the progress towards achieving universal primary education has stalled since 2008; whereas sub-Saharan Africa, with 31 million children out of school, accounts for half of the world’s total number, and more girls than boys are forced to leave school in order to contribute to household work because of the pressures of poverty;

Z.

whereas empirical evidence suggests that, in times of economic crisis, when education budgets are reduced, more children will prematurely leave school or not attend at all to join the workforce; whereas over 190 million children between the ages of 5 and 14 are forced to work, with one in four children aged 5-17 being used as child labourers in sub-Saharan Africa, compared to one in eight in Asia-Pacific and one in ten in Latin America and the Caribbean; whereas girls in particular are at a higher risk of being taken out of school and forced into child labour or domestic work at home; whereas this creates a negative impact on child welfare and the right to education, and in the long term affects the quality of the labour force and overall development;

AA.

whereas rising and volatile food prices caused by financial speculation on the derivatives markets are affecting millions of people struggling to meet basic needs; whereas since 2007 global progress in reducing hunger has slowed; whereas 868 million people are suffering from chronic malnutrition, with the vast majority (850 million people) living in developing countries; whereas the coping strategies adopted by vulnerable households includes cutting down on the quantity and/or quality of food eaten at critical stages of child development or during pregnancy, with long-lasting effects on physical growth and mental health;

AB.

whereas, in the face of the rising demand for agricultural goods destined for food production and increasingly for energy and industrial use, the competition for land, a resource that is becoming more and more scarce, is also growing; whereas national and international investors use long-term purchase or lease agreements to secure vast tracts of land, which might cause socio-economic and environmental problems for the countries affected and especially for the local population;

AC.

whereas the impact of the economic crisis can be particularly acute for older people who may be at greater risk of losing their jobs and are less likely to be retrained and re-employed; whereas the crisis can limit their access to affordable healthcare;

AD.

whereas the rising price of medicines (by up to 30 %) is having a negative impact on the right to health of the most vulnerable, notably children, the elderly and persons with disabilities;

AE.

whereas, globally, 214 million migrant workers are now, as a result of the economic crisis, more affected by unequal treatment, underpayment or non-payment of wages, and physical abuse;

AF.

whereas remittances, microfinance and foreign direct investment are means of alleviating the shock of the crisis on the economies of developing countries;

AG.

whereas trafficking in human beings is a modern form of slavery and a severe violation of fundamental human rights; whereas traffickers are exploiting their potential victims’ need to find a decent job and escape poverty; whereas women and girls account for two thirds of the victims of trafficking in human beings;

AH.

whereas, globally, 1,3 billion people have no access to electricity; whereas access to energy, in particular electricity, is vital to the achievement of several Millennium Development Goals since, inter alia, it reduces poverty through improved productivity, generates greater income and micro-enterprise development, and leads to economic and social empowerment;

AI.

whereas the agricultural sector provides employment and livelihood for more than 70 % of the labour force in developing countries; whereas the share of ODA allocated to agriculture is falling all the time and currently accounts for only 5 % of the total; whereas, in resource-poor low-income countries, growth in the agricultural sector is five times more effective in reducing poverty than growth in other sectors (eleven times in sub-Saharan Africa); whereas rural development and measures designed to support agriculture, in particular local production, are key elements of all development strategies and are vital for eradicating poverty, hunger and underdevelopment;

AJ.

whereas aggregate data often used to describe the impact of the crisis can hide huge disparities between and within countries; whereas it is difficult to access the real-time data necessary to fully understand the impact of the economic crisis on regions and vulnerable groups; whereas there is a need for collaborative and innovative data collection and analysis at global level;

1.

Reiterates its strong determination to defend and promote human rights and fundamental freedoms — civil, political, economic, social and cultural — as a core principle of the European Union’s foreign policy and underpinning all other policies, as enshrined in the Treaty of Lisbon, in particular in the context of the economic and financial crisis;

2.

Stresses that human rights include the right to food, water, education, adequate housing, land, decent work, health and social security; condemns the fact that these rights have been under attack in a number of countries since the crisis began; recognises that worsening poverty is the main factor preventing people from asserting these rights; calls for the EU to invest more effort and money in achieving the Millennium Development Goals (MDGs), given the evidence that the world is falling far short of the goals set for 2015;

3.

Insists on the fact that the response to the crisis must include internationally coordinated multilateral cooperation at both the regional and the inter-regional levels with a strong human rights-based approach at its core;

4.

Recalls the duty of governments to respect, protect and fulfil human rights, including economic and social rights, as well as digital freedoms, at all times, as stated in international human rights law; calls on governments to guard against all forms of discrimination and to ensure basic human rights for all; deplores the existing gap between legal recognition and political enforcement of these rights;

5.

Reaffirms that while the global economic crisis poses a severe threat to the fulfilment of economic, social and cultural rights, there is no justification for states, whatever their level of income, to compromise on their obligation to respect fundamental human rights; stresses that governments have, at all times, an obligation to ensure ‘minimum essential levels’ of the social and economic rights necessary for living in dignity;

6.

Urges governments to place the interests of the most vulnerable sections of the population at the centre of policy responses by using a human rights framework in the decision-making process; calls on governments to pursue all the necessary measures to ensure access to justice for all, with a particular focus on people living in poverty, who need to have a full understanding of their rights and the means to realise them; calls on the EU to step up the fight against impunity and its support for the rule of law and justice reform programmes in partner countries, to enable an active civil society to form the basis of any democratisation process;

7.

Welcomes the EU’s commitment to promoting economic, social and cultural rights and to strengthening efforts to ensure universal and non-discriminatory access to basic services, with a particular focus on poor and vulnerable groups, as set out in the Strategic Framework on Human Rights and Democracy; looks forward to seeing this reflected in concrete measures, including in the human rights country strategies drafted by the EU Delegations;

8.

Insists that the EU Special Representative for Human Rights should ensure that human rights are at the forefront of policy initiatives, with a particular emphasis on the most vulnerable groups in the societies of third countries;

9.

Stresses the importance of ensuring that support for human rights and democracy promotion is not undermined by a decrease in the budget for such projects in response to the crisis; in this connection, emphasises the need to offer steady support to projects financed by the European Instrument for Human Rights and Democracy (EIDHR) for human rights defenders, including those working for economic and social rights, such as the rights of workers and migrants, and stresses the importance of promoting human rights education;

10.

Reminds governments of their duty to ensure that civil society organisations (CSOs) possess the necessary means to carry out their role within society, and not to use the current crisis as an excuse to reduce support for CSOs; calls for sufficient funding of the Civil Society Facility post-2013 to further strengthen civil society’s capacity in partner countries;

11.

Stresses that the Commission should include human rights provisions in impact assessments for legislative and non-legislative proposals, implementing measures, and trade and investment agreements that have a significant economic, social and environmental impact;

12.

Notes with concern that the global economic crisis is jeopardising Official Development Aid spending by EU Member States; recalls that the costs of the global economic crisis are being borne disproportionately by poor countries, despite having originated in the richer countries; urges, therefore, the EU and its Member States to maintain and deliver on their existing bilateral and multilateral ODA commitments and on the targets identified in the UN Millennium Declaration, especially by addressing those areas which suffer from a lack of progress at present and to ensure efficient use of development aid in order to guarantee the best value for money and consistency between human rights and development policies; points out that, through their potential contribution to official development assistance, the emerging countries also have an important role to play;

13.

Urges the Commission, the EEAS and the Member States to model crisis responses and development policy on a human rights-based approach, as set out in the Commission’s Communication ‘Increasing the impact of EU Development Policy: an Agenda for Change’, and in the Parliament’s resolution of 23 October 2012 on the Communication (8);

14.

Stresses the importance of policy coherence and coordination in order to attain the objective of poverty reduction and to increase the credibility and the impact of EU external assistance;

15.

Reiterates that budget support to partner countries and all trade agreements should be conditional on respect for human rights and democracy in the partner countries; takes the view that donors and lenders should, in particular, respond in a coordinated manner to reported cases of fraud and corruption and foster reforms in those countries towards good governance and transparency; urges the EU and the Member States to make systematic risk assessments of widespread corruption in partner countries, which may hamper the desired effects of development and humanitarian projects;

16.

Calls on developing countries to devise economic policies which promote sustainable growth and development, create jobs, place vulnerable social groups at the forefront of policy responses, and base development on a sound fiscal system that rules out tax evasion, which is necessary for mobilising domestic resources in a more efficient and equitable manner;

17.

Encourages foreign and domestic investors to instigate strong Corporate Social Responsibility policies in all countries, with an emphasis on sustainable development and good governance and with a clear focus on human rights, decent work, labour standards, freedom of association, collective bargaining and other social considerations;

18.

Encourages developing countries to use trade preferences afforded by the EU within the Generalised System of Preferences (GSP) framework in order to boost their economy, diversify their exports and improve their competitiveness; recalls their obligation in the GSP + framework, to ratify and effectively implement the core international conventions on human and labour rights, environmental protection and good governance, which are listed under this scheme;

19.

Calls on the EU to support and adopt the international target of universal energy access by 2030 as this will contribute to economic empowerment and social benefits for the poorest and most vulnerable in developing countries;

20.

Welcomes the introduction of a specific enforcement mechanism to monitor implementation of human rights clauses in ‘new generation’ bilateral and regional EU agreements; welcomes efforts to improve analysis of the human rights situation in third countries when launching or concluding trade and/or investment agreements; notes with concern that the current human rights monitoring provisions in the relevant agreements are not clearly defined or sufficiently ambitious; calls on the EU to adopt an unfaltering principled stance in insisting that its partner countries comply with the human rights clauses in international agreements;

21.

Welcomes the refocusing of the EU’s aid towards least developed countries, urging middle-income countries to commit an increasing proportion of their fiscal revenues to social protection schemes and the fulfilment of human rights for the poorest and most vulnerable;

22.

Calls on the international community to provide adequate assistance to governments in sub-Saharan Africa in order to prevent the financial crisis worsening the humanitarian crisis in some countries in the region;

23.

Calls on governments to respect their obligations towards citizens in terms of the good stewardship of natural resources;

24.

Urges governments to take all the necessary measures to reduce extremes in income inequality and put in place conditions that will enable those currently living in extreme poverty to fully realise their potential and live in dignity;

25.

Urges governments in developing countries to elaborate social protection schemes, since these are essential for protecting the most vulnerable and building resilience against economic and environmental shocks and have proved to be an investment in society rather than a cost, as shown by social welfare programmes, such as Brazil’s bolsa familia or demand-driven public works schemes like India’s National Rural Employment Guarantee Scheme (NREGS); stresses that the success of these cash transfer schemes depends largely on conditionality such as school enrolment and attendance as well as health aspects, most notably the vaccination of children;

26.

Welcomes the joint initiative launched by the UN Special Rapporteur on the right to food, Olivier De Schutter, and the UN Special Rapporteur on extreme poverty and human rights, Magdalena Sepúlveda Carmona, to strengthen social protection systems in developing countries through a Global Fund for Social Protection, by means of which international solidarity can be transposed to benefit the least developed countries; asks the Commission to provide support for these programmes;

27.

Considers that investment in sustainable agriculture in developing countries is an important accelerant for combating food insecurity and boosting overall growth; urges governments to support responsible private-sector investment and small-scale food producers, especially women and agricultural cooperatives, which are the most effective in reducing extreme poverty by increasing returns on labour; stresses the importance of investment in rural infrastructure that reduces transaction costs and enables farmers to reach markets and generate more income;

28.

Calls on governments to prevent national and international financial speculators investing in land from having a negative impact on small-scale farmers and local producers by causing displacement, environmental problems and food and income insecurity; recalls in this regard that secure employment and nutrition are conditions for respect for human rights, democratisation and any political engagement;

29.

Reminds governments and the private sector alike to respect informal and traditional land ownership, as well as land-use rights; stresses that vulnerable groups such as indigenous peoples are most in need of protection, as land is often the only resource from which they can derive their subsistence;

30.

Urges governments not to cut or limit food subsidies since these subsidies can limit the prevalence of hunger and improve nutrition in recipient households;

31.

Calls for more transparency on the commodity markets to avoid price volatility of agrarian raw materials caused by excessive speculation, and underlines the need for greater international attention and enhanced coordination on this issue;

32.

Reminds governments that youth employment policies should focus not only on job creation, but also on ensuring a level of income and working conditions that are appropriate for an adequate standard of living;

33.

Expresses its support for the global introduction of a financial transaction tax, which can be an innovative financing mechanism for development, ultimately contributing to the universal fulfilment of economic and social rights; encourages all Member States to support the EU budget proposal for a financial transaction tax;

34.

Stresses that combating illicit financial flows, tax havens and speculation on commodities are necessary steps for the achievement of human rights, especially in low-income countries;

35.

Believes that developing countries should introduce innovative financing systems for economic policies; encourages developing countries to develop financial mechanisms connected with their own resources;

36.

Calls for an increase in the competitiveness of enterprises in developing countries, making for a reduction in unemployment and the promotion of employment policies;

37.

Considers of the utmost importance the strengthening of skills development and training policies, including non-formal education, internships and on-the-job training, which provide support for a successful transition from school to the labour market;

38.

Stresses that the events of the Arab Spring have revealed a number of shortfalls in EU policies towards the region, including the situation of young people, who face mass unemployment and a lack of prospects in their countries; calls on the EU to take more effective action to tackle the effects of the financial crisis in third countries, including by taking due account of reports by civil society organisations;

39.

Urges both governments of countries with high child-labour rates and international donors to promote preventative measures, such as expanding school access, improving school quality and reducing school costs in order to decrease poverty rates and encourage economic growth;

40.

Urges governments to provide second-chance education programmes for those who have not attended primary school in order to equip them with literacy and numeracy skills, as well as livelihood skills that can help them to escape poverty;

41.

Urges governments to step up child protection support measures, including measures to tackle violence against children and promote awareness-raising among government officials on violence against children;

42.

Recalls that all recovery policies will need a strong gender component; calls, as a matter of urgency, for the enforcement of policies and practices ensuring that more women enter the labour market in jobs with decent working conditions and social protection; calls for public investment in care services to reduce women’s unpaid domestic and care work; insists that labour market policies must address the lack of parental time for care and nurture;

43.

Stresses that women must be more involved in social dialogue and decision-making processes; reiterates the fact that education for girls and women and gender empowerment are essential;

44.

Urges governments to tackle critical human rights issues faced by the elderly, especially in times of economic downturn, such as long-term unemployment, age-related employment discrimination, income insecurity and unaffordable healthcare; calls on governments to put in place innovative new mechanisms for flexible workforce participation, such as entitling older people to social pensions while working part-time, retraining programmes or fiscal measures aimed at stimulating the employment of the elderly;

45.

Calls for the transaction costs for remittances to be reduced and for it to be made easier, for example, for migrants to open a bank account in host countries;

46.

Calls on governments to ensure that the fight against trafficking in human beings remains high on their agenda during times of economic and financial crisis; urges governments to fully implement legislation to prosecute traffickers and smugglers, expand support and legal assistance to victims of human trafficking, and develop closer international cooperation;

47.

Welcomes the discussions within the UN High-Level Panel on the Post-2015 Development Agenda with the participation of the European Commissioner for Development; considers that the post-2015 framework should prioritise the universal implementation of human rights, take into consideration the impact of the financial and economic crisis, notably on the poorest and the most vulnerable, and honour poverty reduction commitments; urges all involved parties to consider setting quantifiable targets and indicators, as well as qualitative and outcome-based indicators;

48.

Emphasises that there is a need for further research and analysis on the impact of the financial and economic crisis on various regions, including in the EU and in its relations with third countries, and a need to improve the monitoring of early signals of global and regional crises; stresses that disaggregated data should be more prominent in research and policy planning in order to better capture and address the problems facing the poorest and most vulnerable members of society; calls on the Commission and the Member States to provide financial support for the UN innovation laboratory ‘Global Pulse’, launched by the UN Secretary General in 2009, with the aim of collecting and analysing the data required for a better understanding of the impact of the financial and economic crisis on vulnerable sections of the population and providing appropriate policy responses;

49.

Instructs its President to forward this resolution to the Council, the Commission, the European External Action Service (EEAS), the EU Special Representative for Human Rights, the governments and parliaments of the Member States and the Office of the UN High Commissioner for Human Rights.

5.2.2016   

EN

Official Journal of the European Union

C 45/44

—

having regard to the draft Treaty concerning the Accession of the Republic of Croatia to the European Union, the Protocol and the Final Act,

—

having regard to the Commission’s Comprehensive Monitoring Report of 10 October 2012 on Croatia’s state of preparedness for EU membership (SWD(2012)0338),

—

having regard to the Commission’s final Monitoring Report on Croatia’s accession preparations of 26 March 2013 (COM(2013)0171),

—

having regard to the Commission’s regular reports on Croatia’s progress towards accession covering the period 2005-2011,

—

having regard to the Presidency Conclusions of the Thessaloniki European Council of 19—20 June 2003 on the Western Balkan countries and on enlargement,

—

having regard to all its previous resolutions and reports on Croatia’s progress and the enlargement process, in particular those of 1 December 2011 on the accession to the European Union of the Republic of Croatia (1), of 1 December 2011 on the application of Croatia to become a member of the European Union (2) and of 22 November 2012 on enlargement: policies, criteria and the EU’s strategic interests (3),

—

having regard to all previous recommendations of the EU-Croatia Joint Parliamentary Committee,

—

having regard to Rule 110(2) of its Rules of Procedure,

A.

whereas Croatia is set to accede to the EU on 1 July 2013;

B.

whereas some EU Member States have not yet completed ratification of the Accession Treaty;

C.

whereas Croatia is on track to meet the outstanding requirements as regards the final preparations for EU membership;

D.

whereas reform efforts must be sustained beyond accession in order for Croatian citizens to benefit fully from EU membership;

E.

whereas Croatia’s accession process testifies to the credibility of the EU’s enlargement policy and its transformative effects on applicant states;

F.

whereas Croatian membership will make the EU stronger and more secure, enrich its culture and heritage, and serve as a powerful reminder to other aspirant countries that conscientious implementation of commitments yields tangible and durable benefits to their citizens;

G.

whereas Croatia is expected, and uniquely positioned, to play a constructive role in its neighbourhood, above all by promoting further EU enlargement, democratic consolidation, regional cooperation and reconciliation between the peoples of the Western Balkans, while doing its utmost to ensure that bilateral issues do not obstruct any of these processes;

1.

Looks forward to welcoming Croatia as the 28th Member State of the EU on 1 July 2013, following the legally binding vote of the European Parliament on 1 December 2011 which gave consent to the accession of Croatia, and in accordance with the date set by the European Council in the Accession Treaty; expresses its confidence in the strength and maturity of Croatia’s democracy and social market economy, its adherence to European values, and capacity to fulfil the obligations of membership;

2.

Notes that Croatia is on track to meet the outstanding requirements as regards the final preparations for membership;

3.

Notes that Croatia has completed the ten priority actions identified in the Commission’s Comprehensive Monitoring Report;

4.

Welcomes the significant progress achieved by Croatia in completing tasks singled out in the Commission’s Comprehensive Monitoring Report and calls on the Government and the Parliament to resolve all outstanding issues by 1 July 2013 and to advance with all other necessary reforms; encourages Croatia to respect and fulfil all its commitments from the accession negotiations, in order to be fully prepared as a new Member State, as this is in the interests of Croatia and the EU; stresses that this process should be carried out in a transparent and inclusive manner, involving the Croatian Parliament and civil society to the largest extent possible;

5.

Invites those EU Member States that have not yet completed their respective ratification procedures for the Accession Treaty to proceed in a timely manner;

6.

Reiterates its view that accession should not be construed as the end of a process, but rather as a step along the path towards economic, administrative and judicial modernisation, and as an opportunity whose benefits can only be fully realised through continuous policy action; invites Croatia to continue to make efficient use of IPA (Instrument for Pre-accession Assistance) funds in preparation for EU membership and the utilisation of structural funds and the cohesion fund;

7.

Invites Croatian political and social actors to explore innovative ways of sustaining the impetus and consensus for reforms in the post-accession period, and of holding policy-makers accountable for the implementation of commitments undertaken in the Accession Treaty; stresses, in this respect, the indispensable role of effective parliamentary oversight and that of civil society;

8.

Reaffirms the centrality of an independent judiciary, professional and accountable public administration, and the rule of law in strengthening democracy and supporting investment and economic activity; invites Croatia to continue improving the independence, accountability, impartiality, professionalism and efficiency of its judicial system and the members of its judiciary, inter alia by reducing the number of backlog cases by implementing the new system of asset declarations for judges, and by further improving the track record of the new system of disciplinary proceedings; urges Croatia to implement the new Judicial Reform Strategy for 2013-2018;

9.

Notes that Croatia has put in place a satisfactory institutional and legal framework for combating corruption; calls on the Croatian authorities to further step up their fight against corruption, fraud and mismanagement of funds; points out that anti-corruption measures must continue to be strictly enforced; further invites the authorities to establish a track record of conflict of interest, corruption and organised crime cases and to improve implementation of the legal framework for the seizure and confiscation of assets;

10.

Calls on the Croatian authorities to make full use of the existing anti-corruption instruments to ensure unbiased and successful prosecutions and court rulings, including in high-profile cases, in order to consolidate citizens’ trust in the rule of law and public institutions; stresses the need for sustainable measures in the fight against corruption and organised crime and to reform the judiciary primarily for the benefit of Croatian citizens; emphasises that independent investigative journalism should be encouraged, as it is vital in exposing corruption and organised crime;

11.

Calls on Croatia to continue implementing the new, robust legislation on access to information, thereby consolidating the prevention framework against corruption; notes that the newly created Conflict of Interest Commission is now operational, and calls on the Croatian authorities to fully implement the legislative package on public procurement and on the financing of political parties and electoral campaigns;

12.

Calls on the Croatian authorities to remain vigilant in ensuring that fundamental rights are fully respected, while combating all forms of discrimination and acts of intolerance against national minorities, the Roma community, migrants, LGBT people and other minority groups and vulnerable groups; calls furthermore on Croatia to foster an environment that will ensure that members of the aforementioned minorities (e.g. LGBT people) can freely express their views and beliefs in line with the principles of the EU Charter on Fundamental Rights;

13.

Encourages the authorities to promote freedom of expression, including freedom and pluralism of the media; acknowledges that the new law on the public broadcaster was adopted in July 2012; encourages the authorities to continue with efforts to ensure that the public service broadcaster is free from political and economic pressure and to increase its transparency;

14.

Observes that Croatia is preparing adequately for the future management and implementation of operations financed by the EU Structural and Cohesion Funds; calls on Croatia to create a project pipeline for the European Regional Development Fund (ERDF); encourages the Government to further strengthen the administrative capacities of the institutions responsible, including at regional and local levels, in line with the recommendations of the 2012 report by the European Court of Auditors; urges the Government to do its utmost do minimise the risk of corruption, fraud and irregularities in both the allocation and use of EU funds;

15.

Reminds the Member States, in the context of the negotiations on the MFF, of the EU’s commitments to Croatia and its citizens as regards future assistance in economic and regional development;

16.

Encourages Croatia to carry out further structural reforms to stimulate economic growth and revive the labour market; calls upon Croatia to continue to keep the banking sector stable and to continue the policy of fiscal consolidation in order to boost competitiveness; welcomes Croatia’s participation in the European Semester from January 2013; supports efforts to ensure timely and effective use of EU funds as well as to improve Croatia’s transport infrastructure and its links with the EU Member States and the countries of the region; invites the Government to fully implement the legislative framework on small businesses, inter alia by appropriate policy actions, by improving their access to finance and by supporting the internationalisation of SMEs;

17.

Is of the view that special emphasis should be laid on the social and environmental dimensions of economic modernisation; encourages Croatia to continue to strengthen social dialogue and uphold social and labour union rights; calls on the Croatian authorities to ensure transparency regarding environmental assessments of large-scale investment projects; urges the Croatian authorities to give priority to protection of the environment, especially in the field of spatial planning;

18.

Is concerned that the proposed law on strategic investments is not in line with European standards; calls on the Croatian Government and Parliament to revise it with a view to better protecting fundamental rights, notably property rights, and the environment;

19.

Calls on the Member States not to restrict Union citizens’ fundamental rights more than absolutely necessary with respect to the transitional measures provided for in Article 18 of the Act of Accession; calls on the Member States, in particular, to make use of the transitional measures restricting the free movement of persons exclusively on the basis of factual information and only in cases of serious labour market disturbance; points out that restricting access to their labour markets during transitional periods after previous rounds of enlargement has proved detrimental to the welfare of those Member States enacting the restrictions;

20.

Notes the progress in the construction of the border crossing points at the Neum corridor;

21.

Invites the Croatian authorities to take further action, including on legislative alignment, interinstitutional cooperation and border management, to prepare for Croatia to enter the Schengen area in due course;

22.

Calls on Croatia to continue to cooperate with the International Criminal Tribunal for the former Yugoslavia (ICTY) and to intensify domestic efforts to investigate and prosecute war crimes, in line with the adopted strategy on impunity; makes a strong appeal to Croatia and Serbia to cooperate in good faith on the prosecution of war crimes in order to achieve justice and true reconciliation in the region;

23.

Calls on the Croatian authorities to continue to pay special attention to the rights and social conditions of returning refugees and displaced persons, in line with the goals of the Sarajevo Declaration Process; continues to support the RECOM (Regional Commission for Truth and Reconciliation) initiative to search for ways to acknowledge suffering and respect the right to truth and justice for all victims of war crimes;

24.

Encourages Croatia to play an active role in the process of stabilisation and European integration of the Western Balkan countries; believes that Croatia’s experience and expertise, accumulated in the course of its transformation and accession, are of significant value to other applicant and aspirant states; encourages Croatia to share its experiences with other candidate and potential candidate countries and to strengthen regional cooperation; is of the view that Croatia’s promotion of European values and further enlargement is built on good neighbourly relations and the pursuit of reconciliation;

25.

Appeals to Croatia and its neighbours to engage actively in the resolution of outstanding bilateral issues in accordance with international commitments and the principles of good neighbourly relations and regional cooperation; welcomes, in this regard, the steps taken by the Government of Croatia and the Government of Serbia to improve relations, and looks forward to an intensification of their cooperation; welcomes the signing of a Memorandum of Understanding between Slovenia and Croatia on finding a solution to the Ljubljanska Banka case in a constructive manner; welcomes the ratification of the Accession Treaty by the Parliament of Slovenia; recalls that issues of a bilateral nature must not be used to impede the integration processes of current or future applicant countries; in this context, urges all Member States to ratify Croatia’s Accession Treaty on time;

26.

Encourages Croatia to continue to play a constructive role in regional cooperation; calls on the Croatian authorities to fully implement the declaration on promoting European values in Southeast Europe endorsed by the Croatian Parliament on 21 October 2011; invites all countries in the region to adopt and implement similar positions; urges the Commission to assist all countries in the region in this respect; calls on the Commission to learn from past experience in the enlargement process, including the enlargement process with Croatia, by helping countries in the region resolve their bilateral disputes in a manner that does not interfere with the accession process through establishing facilitation and arbitration mechanisms within the existing EU institutional framework that countries in the region can draw on if they so wish;

27.

Acknowledges the activities and the constructive contribution of the Croatian observers in the European Parliament; welcomes the outcome of the elections for the Croatian Members of the European Parliament held on 14 April 2013, but regrets the low turnout; looks forward to welcoming MEPs from Croatia as of Croatia’s accession to the EU on 1 July 2013;

28.

Appreciates the work of the Commission in steering Croatia’s accession process; asks the Commission to take stock of the exercise and draw policy lessons for future applicant states, such as use of the comprehensive monitoring regime in the period between the completion of negotiations and accession; calls on the Commission to evaluate the involvement of civil society and parliament throughout the accession process in order to draw lessons for current and future negotiations; asks the Commission, in this specific context, to draw up proposals to better involve civil society and parliaments in the candidate countries in the accession process;

29.

Instructs its President to forward this resolution to the Council, the Commission and the governments and parliaments of the Member States and the Republic of Croatia.

5.2.2016   

EN

Official Journal of the European Union

C 45/48

—

having regard to the Commission’s 2012 Progress Report on Turkey (SWD(2012)0336),

—

having regard to the communication from the Commission to the European Parliament and the Council entitled ‘Enlargement Strategy and Main Challenges 2012-2013’ (COM(2012)0600),

—

having regard to its previous resolutions, in particular those of 9 March 2011 on Turkey’s 2010 progress report (1), 29 March 2012 on Turkey’s 2011 progress report (2), 22 May 2012 on a 2020 perspective for women in Turkey (3), and 22 November 2012 on Enlargement: policies, criteria and the EU’s strategic interests (4),

—

having regard to the Negotiating Framework for Turkey of 3 October 2005,

—

having regard to Council Decision 2008/157/EC of 18 February 2008 on the principles, priorities and conditions contained in the Accession Partnership with the Republic of Turkey (5) (‘the Accession Partnership’), as well as to the previous Council decisions on the Accession Partnership of 2001, 2003 and 2006,

—

having regard to the Council conclusions of 14 December 2010, 5 December 2011 and 11 December 2012,

—

having regard to the Charter of Fundamental Rights of the European Union,

—

having regard to Rule 110(2) of its Rules of Procedure,

A.

whereas accession negotiations with Turkey were opened on 3 October 2005 after the Council had approved the Negotiating Framework, and whereas the opening of such negotiations is the starting point for a long-lasting and open-ended process based on fair and rigorous conditionality and the commitment to reform;

B.

whereas Turkey has committed itself to reforms, good neighbourly relations and progressive alignment with the EU, and whereas these efforts should be viewed as an opportunity for Turkey itself to continue to modernise and to consolidate and further improve its democratic institutions, the rule of law and the observance of human rights and fundamental freedoms;

C.

whereas the EU should remain the benchmark for reforms in Turkey;

D.

whereas full compliance with the Copenhagen criteria and EU integration capacity, in accordance with the conclusions of the December 2006 European Council meeting, remain the basis for accession to the EU, which is a community based on shared values, sincere cooperation and mutual solidarity among all its Member States;

E.

whereas the positive agenda was launched in May 2012 to support and complement the negotiations, without replacing them, through enhanced cooperation in a number of areas of joint interest;

F.

whereas in its conclusions of 11 December 2012 the Council endorsed the Commission’s new approach of placing the rule of law at the heart of enlargement policy and confirmed the centrality in the negotiating process of Chapter 23 (judiciary and fundamental rights) and Chapter 24 (justice, freedom and security), which should be tackled early in the negotiations in order to allow clear benchmarks and maximum time to establish the necessary legislation, institutions and solid track records of implementation;

G.

whereas in its 2012 Enlargement Strategy the Commission concluded that, in terms of its economy, strategic location and important regional role, Turkey is a key country for the European Union and that the accession process remains the most suitable framework for promoting EU-related reforms in Turkey; whereas the Commission expressed concern regarding Turkey’s lack of progress on the fulfilment of the political criteria;

H.

whereas Turkey, for the seventh consecutive year, has still not implemented the provisions stemming from the EC-Turkey Association Agreement and the Additional Protocol thereto;

I.

whereas negotiating chapters for which technical preparations have been concluded should be opened without delay according to established procedures and in line with the Negotiating Framework;

J.

whereas there is an economic interdependence between the European Union and Turkey, with trade between the EU and Turkey totalling EUR 120 billion in 2011;

K.

whereas the EU is Turkey’s largest trading partner and Turkey is the EU’s sixth-largest trading partner; whereas foreign direct investment (FDI) by EU Member States in Turkey accounts for 75 % of total FDI inflow;

L.

whereas the Commission has assessed that, in the area of economic policy, Turkey’s overall level of preparedness is advanced and that its capacity for economic policy formulation and coordination is adequate;

M.

whereas Turkey has the potential to play a pivotal role in diversifying energy resources and routes for oil, gas and electricity transiting from neighbouring countries to the EU; whereas in creating a sustainable low-carbon economy, there is potential for both Turkey and the EU to benefit from Turkey’s rich renewable energy resources;

N.

whereas EU dialogue and cooperation with Turkey on stability, democracy and security, with particular reference to the broader Middle East, are of strategic importance; whereas Turkey has strongly and repeatedly condemned the Syrian regime’s violence against its civilians and is providing vital humanitarian assistance to Syrians fleeing from the violence taking place across the border;

O.

whereas Turkey and Armenia need to proceed to a normalisation of their relations by ratifying, without preconditions, the protocols agreed on and by opening their common border;

P.

whereas the casus belli threat declared by the Turkish Grand National Assembly (TGNA) against Greece in 1995 should be withdrawn; whereas it is important that Turkey and Greece conduct a new round of talks to improve their relations;

1.

Believes that renewed mutual engagement in the context of the negotiation process is needed in order to maintain a constructive relationship; stresses the importance of creating the conditions for a constructive dialogue and the foundations of a common understanding; notes that this should be based on common values of democracy, the rule of law and respect for human rights; commends the Commission and Turkey for the implementation of the positive agenda, which proves how, in a context of mutual engagement and clear objectives, Turkey and the EU could advance their dialogue, achieve common understanding, and produce positive change and necessary reforms;

2.

Stresses Turkey’s strategic role, politically and geographically, for the EU’s foreign and neighbourhood policies; recognises Turkey’s role as a neighbour and an important regional player, and calls for further reinforcement of the existing political dialogue between the EU and Turkey on foreign policy choices and objectives; regrets that the alignment of Turkey with CFSP declarations continued to be low in 2012; encourages Turkey to develop its foreign policy in the framework of dialogue and coordination with the EU; calls on Turkey and the EU to cooperate more closely on strengthening the forces of peace and democracy in the southern neighbourhood, a region of critical importance both for the EU and for Turkey;

3.

Expresses support for dialogue and re-established relationships between Turkey and Israel;

4.

Welcomes the Council decision to invite the Commission to take steps towards visa liberalisation in parallel with the signing of the readmission agreement; urges Turkey to sign and implement the readmission agreement without further delay and to ensure that, until this agreement enters into force, existing bilateral agreements are fully implemented; recalls that Turkey is one of the key transit countries for irregular migration to the EU; acknowledges the steps undertaken by Turkey to prevent irregular migration, and underlines the important need for Turkey to intensify cooperation with the EU on migration management, the fight against human trafficking, and border controls; stresses, once again, the importance of facilitating access to the EU for business people, academics, students and representatives of civil society from Turkey; supports the efforts of the Commission and the Member States to implement the visa code, to harmonise and simplify visa requirements and to create visa facilitating centres in Turkey; reminds the Member States of their obligations under the association agreement, in line with the ruling of the European Court of Justice of 19 February 2009 in the Soysal case (6);

5.

Welcomes the recent adoption of the draft law on foreigners and international protection and expects this legislation to address existing concerns about the continued arbitrary refusal of access to the asylum procedure and the practice of repatriation of refugees, asylum-seekers and other people who may be in need of protection; underlines the importance of aligning with international standards the detention regulations that were found to be unlawful by the European Court of Human Rights (ECtHR) in the case of Abdolkhani and Karimina vs Turkey;

6.

Commends the Turkish Constitution Conciliation Committee for its commitment to drafting a new Constitution and for the inclusive process of consulting civil society in a manner that reflects the diversity of Turkish society; expresses concern at the apparently slow progress made by the Committee so far; encourages the Committee to continue its work and to tackle — in an inclusive, representative and collegial way, and in line with the criteria and values of the EU — key issues such as (a) ensuring the separation of powers and an adequate system of checks and balances; (b) clarifying relations between the state, society and religion; (c) introducing an inclusive system of governance that secures the human rights and fundamental freedoms of all citizens; and (d) formulating an inclusive concept of citizenship; calls on all political parties, and on the actors concerned, to take a constructive approach in the negotiation of the new Constitution; is of the opinion that the involvement of, and dialogue with, the Venice Commission would produce positive results and support the constitutional process;

7.

Stresses the need for further progress in implementing the 2010 constitutional amendments, in particular the adoption of laws on the protection of personal data and military justice, and of laws introducing affirmative-action measures to promote gender equality; notes that the presence and the powers of the Turkish Minister of Justice and his Undersecretary in the High Council of the Judges and Prosecutors (HCoJP) give cause for considerable concern regarding the independence of the judiciary; welcomes the entry into force of legislation providing for the right of individuals to petition the Constitutional Court, as foreseen by the 2010 constitutional amendments;