30.8.2016   

EN

Official Journal of the European Union

C 316/1

30.8.2016   

EN

Official Journal of the European Union

C 316/2

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having regard to Articles 2 and 3(3), second subparagraph, of the Treaty on European Union (TEU) and Article 8 of the Treaty on the Functioning of the European Union (TFEU),

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having regard to Article 23 of the Charter of Fundamental Rights of the European Union,

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having regard to the European Convention for the Protection of Human Rights and Fundamental Freedoms (ECHR),

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having regard to the United Nations Convention on the Elimination of all Forms of Discrimination against Women (CEDAW) of 18 December 1979,

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having regard to the United Nations Convention for the Suppression of the Traffic in Persons and of the Exploitation of the Prostitution of Others of 1949,

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having regard to the Beijing Declaration and Platform for Action of 15 September 1995 adopted by the Fourth World Conference on Women and to the outcome documents adopted at the United Nations Beijing + 5 (2000), Beijing + 10 (2005), and Beijing + 15 (2010) special sessions,

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having regard to Regulation (EU) No 606/2013 of the European Parliament and of the Council of 12 June 2013 on mutual recognition of protection measures in civil matters (1),

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having regard to Directive 2012/29/EU of the European Parliament and of the Council of 25 October 2012 establishing minimum standards on the rights, support and protection of victims of crime, and replacing Council Framework Decision 2001/220/JHA (2),

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having regard to the United Nations Convention on the Rights of Persons with Disabilities, and in particular Article 6 thereof on women with disabilities, of 13 December 2006,

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having regard to Directive 2011/99/EU of the European Parliament and of the Council of 13 December 2011 on the European protection order (3),

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having regard to Directive 2011/36/EU of the European Parliament and of the Council of 5 April 2011 on preventing and combating trafficking in human beings and protecting its victims, and replacing Council Framework Decision 2002/629/JHA (4),

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having regard to the proposal for a Directive of the European Parliament and of the Council on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures (women on boards directive (COM(2012)0614)),

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having regard to the Council of Europe Convention on preventing and combating violence against women and domestic violence (Istanbul Convention),

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having regard to the European Pact for Gender Equality (2011-2020) of 7 March 2011 (5),

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having regard to the Commission communication of 5 March 2010 entitled ‘A Strengthened Commitment to Equality between Women and Men: A Women’s Charter’ (COM(2010)0078),

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having regard to the Commission communication of 21 September 2010 entitled ‘Strategy for equality between women and men 2010-2015’ (COM(2010)0491),

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having regard to the Commission communication entitled ‘EUROPE 2020: A strategy for smart, sustainable and inclusive growth’ (COM(2010)2020),

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having regard to the Commission staff working document of 16 September 2013 entitled ‘Mid-term review of the Strategy for equality between women and men (2010-2015)’ (SWD(2013)0339),

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having regard to the Commission staff working document of 8 May 2013 entitled ‘Report on Progress on equality between women and men in 2012’ (SWD(2013)0171),

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having regard to the Commission communication of 25 November 2013 entitled ‘Towards the elimination of female genital mutilation’ (COM(2013)0833),

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having regard to the 2012 report by the European Institute for Gender Equality (EIGE) entitled ‘Review of the Implementation of the Beijing Platform for Action in the EU Member States: Violence against Women — Victim Support’,

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having regard to the Council conclusions of 5-6 June 2014 on preventing and combating all forms of violence against women and girls, including female genital mutilation,

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having regard to its resolution of 6 February 2014 on the elimination of female genital mutilation (6),

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having regard to the EU directives from 1975 onwards on aspects of equal treatment for women and men (Directive 2010/41/EU (7), Directive 2010/18/EU (8), Directive 2006/54/EC (9), Directive 2004/113/EC (10), Directive 92/85/EEC (11), Directive 86/613/EEC (12), and Directive 79/7/EEC (13)),

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having regard to its resolution of 12 September 2013 on the application of the principle of equal pay for male and female workers for equal work or work of equal value (14),

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having regard to its resolution of 12 March 2013 on the impact of the economic crisis on gender equality and women’s rights (15),

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having regard to its resolution of 11 June 2013 on educational and occupational mobility of women in the EU (16),

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having regard to its resolution of 12 March 2013 on eliminating gender stereotypes in the EU (17),

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having regard to its resolution of 6 February 2013 on the 57th session on UN CSW: Elimination and prevention of all forms of violence against women and girls (18),

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having regard to its resolution of 11 September 2012 on women’s working conditions in the service sector (19),

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having regard to its resolution of 24 May 2012 with recommendations to the Commission on application of the principle of equal pay for male and female workers for equal work or work of equal value (20),

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having regard to its resolutions of 10 February 2010 on equality between women and men in the European Union — 2009 (21), 8 March 2011 on equality between women and men in the European Union — 2010 (22), and 13 March 2012 on equality between women and men in the European Union — 2011 (23),

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having regard to its resolution of 6 July 2011 on women and business leadership (24),

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having regard to its resolution of 5 April 2011 on priorities and outline of a new EU policy framework to fight violence against women (25),

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having regard to its resolution of 8 March 2011 on the face of female poverty in the European Union (26),

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having regard to its resolution of 17 June 2010 on gender aspects of the economic downturn and financial crisis (27),

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having regard to its resolution of 3 February 2009 on non-discrimination based on sex and intergenerational solidarity (28),

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having regard to its resolution of 26 February 2014 on sexual exploitation and prostitution and its impact on gender equality (29),

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having regard to its resolution of 13 October 2005 on women and poverty in the European Union (30),

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having regard to its resolution of 25 February 2014 on combating violence against women (31),

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having regard to the proposal for a directive of the European Parliament and of the Council amending Council Directive 92/85/EEC on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding (maternity leave directive (COM(2008)0637)),

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having regard to the Council conclusions of 20 May 2014 on gender equality in sport,

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having regard to Directive 2006/54/EC on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation (32),

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having regard to the Commission progress report of 3 June 2013 on the Barcelona objectives entitled ‘The development of childcare facilities for young children in Europe with a view to sustainable and inclusive growth’,

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having regard to the Commission report of September 2014 entitled ‘Statistical Data on Women Entrepreneurs in Europe’,

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having regard to the European Union Agency for Fundamental Rights (FRA) survey of March 2014 entitled ‘Violence against women: an EU-wide survey’ which, for the first time, has provided data concerning the extent, nature and consequences of various forms of violence against women, as well as victims’ responses to violent incidents and their rights awareness,

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having regard to Article 168 of the Treaty on the Functioning of the European Union, concerning public health, and in particular to paragraph 7 thereof, which states that ‘Union action shall respect the responsibilities of the Member States for the definition of their health policy and for the organisation and delivery of health services and medical care’,

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having regard to Rule 52 of its Rules of Procedure,

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having regard to the report of the Committee on Women’s Rights and Gender Equality (A8-0015/2015),

A.

whereas equality between women and men is a fundamental right which enjoys recognition under the Treaties since the 1957 Treaty of Rome and the Charter of Fundamental Rights of the European Union; whereas, despite the fact that the European Union has adopted numerous texts to ensure equal opportunities and treatment for men and women and to combat all forms of discrimination based on sex and that the Union has set itself the specific task of mainstreaming gender equality in all its activities, the progress made remains insufficient and many inequalities between men and women still persist;

B.

whereas the principle of equal treatment of women and men implies that there must be no discrimination whatsoever, be it direct or indirect, also with respect to motherhood, fatherhood and the sharing of family responsibilities;

C.

whereas it is crucial to take into account the multiple and intersecting forms of discrimination experienced by many women and girls in Europe (on the grounds of disability, a migrant background, ethnic origin, age, sexual orientation, gender identity, pregnancy, housing status, a low level of education, being victims of violence, etc.) and the fact that their conditions have worsened over recent years;

D.

whereas the Europe 2020 strategy for a smart, sustainable, and inclusive economy entails ambitious targets, including the 75 % employment rate and the reduction of the number of persons suffering, or threatened with, poverty and social exclusion by at least 20 million by 2020, which will be impossible to meet unless Member States implement innovative policies to promote gender equality in the true sense;

E.

whereas the fiscal consolidation policies being pursued by Member States are primarily affecting the public sector, in which women are represented more strongly and of which they are the main beneficiaries, and are thus causing harm in two ways, and whereas these policies are making employment more insecure, not least because of the increase in the instance of part-time working (32 % among women compared with 8,2 % among men) and temporary contracts, and not to mention wage reductions;

F.

whereas there are more women than men living in poverty and exclusion, especially older women, whose average pension level is 39 % lower than that of men, and single mothers; whereas, for family reasons, it is more common for women rather than men to work part time or under fixed-term or temporary contracts, and whereas women’s poverty is due largely to the precariousness of their jobs;

G.

whereas combating poverty is one of the Commission’s five measurable targets proposed under the Europe 2020 strategy; whereas Integrated Guideline 10 of the Europe 2020 strategy (promoting social inclusion and combating poverty) could prompt the adoption of national policies to protect women, in particular, from the risk of poverty, ensuring income security for one-parent families and elderly women;

H.

whereas the falling birth rate in the EU has been exacerbated by the crisis, given that unemployment, precarious circumstances and uncertainty about the future and the economy are making couples, and younger women in particular, delay having children, thereby further reinforcing the EU-wide trend towards population ageing;

I.

whereas the existing taxation systems in certain Member States are predicated on a narrow view of the family to the extent that they are biased towards families in which only one of the two parents is working inasmuch as, in many cases, they deter women from working and fail to provide sufficient support to single-parent families, large families and families supporting dependent relatives;

J.

whereas although women account for almost 60 % of graduates in the EU, their representation in senior official and decision-making positions is disproportionately low, and the proportion of EU scientists and engineers who are female is less than 33 %, while women make up almost 80 % of the workforce in the health, education and welfare sectors;

K.

whereas there is a strong horizontal segregation or gender-specific division of labour, with almost half of women in employment being concentrated in 10 of the 130 occupations listed in the International Standard Classification of Occupations (ISCO) drawn up by the International Labour Organisation (ILO), and only 16 % of workers holding jobs in sectors with an equal proportion of men and women;

L.

whereas the role of small and medium-sized enterprises (SMEs), which account for 99 % of European companies and provide two out of three private-sector jobs, is crucial to the achievement of the Europe 2020 strategy for smart, sustainable, and inclusive growth; whereas only 31 % of entrepreneurs in the EU are women; whereas the rate of entrepreneurship among women in the EU is 10 %, as compared with 19 % among men; whereas there is a need to promote and support the increase of entrepreneurship among women;

M.

whereas approximately 42 % of those regularly involved in agriculture in the EU are women, and 3 in 10 farms in Europe are run by women; whereas promoting equal opportunities for men and women and, at the same time, involving women to a greater extent in business and society, especially in agriculture, must be matters of ongoing concern in Europe;

N.

whereas the female employment rate is 63 %; whereas the gender gap in pay stands at 16,4 %; whereas 73 % of the members serving in national parliaments are men, and whereas women make up 17,8 % of the membership of large company boards and every week spend three times as long as men on household chores (e.g. caring for children, elderly people and people with disabilities and performing household tasks);

O.

whereas 37 % of the Members of the newly elected European Parliament, 9 out of the 28 new Commissioners and 7 out of the 28 judges at the Court of Justice of the European Union are women;

P.

whereas the female unemployment rate is underestimated given the fact that many women are not registered as unemployed, particularly those who live in rural or remote areas, along with many of those who devote themselves exclusively to household tasks and childcare; whereas this situation also creates a disparity in terms of access to public services (benefits, a pension, maternity leave, sick leave, access to social security, etc.);

Q.

whereas if the present trends continue, the target of 75 % of women in employment will not be reached until 2038 and equal pay will not become a reality before 2084; whereas equal representation in national parliaments, in the EU institutions and on European company boards could be achieved by 2034, but whereas it would take until 2054 before housework was shared equally;

R.

whereas the failure to promote policies providing for a work-life balance in general and the lack of affordable and high-quality childcare facilities and assistance services for the elderly and people requiring special care, in particular, pose a major obstacle to women’s economic independence and their rise to positions of responsibility, and to the equal participation of women and men in the labour market, including as a means of preventing and reducing poverty;

S.

whereas the sharing of family and domestic responsibilities between men and women, to be brought about not least through a greater uptake of parental leave and paternity leave, is essential in order to achieve gender equality; whereas a quarter of Member States do not offer paternity leave;

T.

whereas traditional gender roles and stereotypes continue to have a strong influence on the division of roles between women and men in the home, in the workplace and in society at large, thereby limiting women’s range of employment choices and their personal and professional development, thereby impeding them from realising their full potential as individuals and as economic players;

U.

whereas the media can play a role, on the one hand, in spreading stereotypes, degrading the image of women and over-sexualising young girls and, on the other hand, in overcoming gender stereotypes, encouraging women’s participation in decision making and promoting gender equality;

V.

whereas the Council has still not responded officially to two legislative resolutions adopted by Parliament on key aspects of gender equality, namely its resolutions of 20 October 2010 on the proposed maternity leave directive and 20 November 2013 on the proposal for a directive on gender balance among non-executive directors of companies listed on stock exchanges and related measures;

W.

whereas in its report of 6 December 2013 on the application of Directive 2006/54/EC, the Commission raised questions concerning 26 Member States on the conformity of their national legislation with the directive’s new provisions (33);

X.

whereas, according to the FRA survey of March 2014, one in three women in the EU has been physically and/or sexually assaulted, while one in five has suffered physical violence after the age of 15 and almost one in two has experienced psychological violence; whereas violence against women constitutes a breach of fundamental rights which bears potentially serious psychological consequences, affects all levels of society, regardless of age, education, income, social position and country of origin or residence, and is one of the least reported crimes; whereas violence against women is one of the main obstacles to true equality between women and men;

Y.

whereas violence against women and girls on the internet is on the rise, with the behaviour of minors on social networks proving to be exceptionally worrying in this regard;

Z.

whereas the EU Strategy towards the Eradication of Trafficking in Human Beings will end in 2016; whereas, according to the 2014 Eurostat report on trafficking in human beings, the vast majority (80 %) of registered victims of trafficking in the EU are women and girls;

AA.

whereas six Member States have still not signed the Council of Europe Convention on preventing and combating violence against women and domestic violence (Istanbul Convention) and only eight have ratified it;

AB.

whereas gathering comparable accurate data, broken down by sex, is particularly important for public policy-making at national and EU level, especially where violence against women is concerned;

AC.

whereas women have specific health issues and are less often than men the subjects in clinical trials, and these differences have important implications for women’s health;

AD.

whereas girls and women, especially those aged between 15 and 24, are less involved than boys and men in physical activity, and whereas sport is a means of self-expression and fulfilment, as well as a force for citizenship and solidarity, and the regular practice of sport improves physical and mental health; whereas violence against women, stereotyping, differences in pay and barriers to women’s involvement in management can all be found in sport;

AE.

whereas sexual and reproductive rights are fundamental human rights and should be taken into account in the EU’s action programme in the field of health;

AF.

whereas the formulation and implementation of policies on sexual and reproductive health and rights is a competence of the Member States;

AG.

whereas the Commission’s annual report on gender equality is a vital tool for gauging developments in the situation of women in Europe;

1.

Calls for the EU institutions and the Member States to mainstream the issues of gender, women’s rights and equal opportunities in their policy making, budget procedures and the implementation of EU programmes and activities, by means of pro-active measures, especially in connection with stimulus packages, by carrying out gender impact analyses on a case-by-case basis;

2.

Deplores the fact that the ‘Strategy for equality between women and men 2010-2015’ will soon fail to hit its targets, especially as regards economic independence, in part because of the withdrawal of the proposal for a maternity leave directive; stresses, at the same time, that economic differences between men and women have been gradually increasing;

3.

Calls on the Council, the Commission and the Member States to integrate a gender pillar into the Europe 2020 strategy to measure progress on reducing the gender gap in employment and in order to bring about the transfer of policy measures in the Annual Growth Survey into the country-specific recommendations (CSRs);

4.

Calls on the Commission and the Member States to develop a general plan for investment into social infrastructure, as it has been estimated that with a gendered investment plan, European gross domestic product (GDP) would increase gradually, by 2,4 % more by 2018 than without such an investment plan;

5.

Notes that equal participation by women and men in the labour market could significantly increase the economic potential of the EU, while confirming its fair and inclusive nature; points out that, according to Organisation for Economic Cooperation and Development (OECD) projections, total convergence in participation rates would result in a 12,4 % increase in GDP per capita by 2030;

6.

Maintains that poverty among women, and older women and single mothers in particular, but also women who are victims of gender-based violence, women with disabilities, migrant women and women from minorities, needs to be tackled as a matter of urgency; calls on the Member States, therefore, to implement more effective inclusion strategies and make more efficient use of social policy resources, not least the European Social Fund and the Structural Funds;

7.

Finds it regrettable that the effectiveness of social policies in reducing poverty fell by almost 50 % in 2012 compared with 2005 in homes with just one adult, a situation which includes most widows and single mothers; is also concerned that the effectiveness of the social policies implemented in certain Member States amounts to only one third of the European average; calls, therefore, on Member States to strengthen social policies which target in particular the unemployed, in order to tackle rising poverty, especially among women;

8.

Calls on the Council and the Commission to address the gender dimension of poverty and social exclusion; finds it regrettable that the CSRs adopted so far as part of the annual European Semester cycles have not been sufficiently aligned with the Europe 2020 employment and social targets; calls for CSRs systemically to address the structural causes of female poverty;

9.

Calls on the Commission and the Member States to allow for changes in the family unit when drawing up their taxation and compensation policies, in particular by providing support to one-parent families and older people in the form of tax credits or health care assistance;

10.

Calls on the Member States and the Commission to ensure that equality between men and women and the integration of the gender perspective be taken into account in cohesion policy funds and promoted throughout the preparation and implementation thereof and in its programmes, including as regards monitoring, reporting and evaluation;

11.

Considers it unfortunate that the annual report now ranks only as a working document annexed to the report on the application of the Charter of Fundamental Rights of the European Union and urges the Commission to restore the full political legitimacy of the annual report by having it officially adopted in its own right;

12.

Points to the imperative need to reduce gender gaps in pay and pension also by addressing the persistent concentration of women in part-time, low-pay and precarious work and by securing care facilities of a sufficient quality for children and other dependents; deplores in the strongest possible terms the fact that more than a third of older women in the EU receive no form of pension; urges the Member States to give full effect to the rights provided for under Directive 2006/54/EC, including the principle of equal pay and pay transparency, and to revise their national laws on equal treatment with a view to the simplification and modernisation thereof; calls on the Commission to keep the transposition of gender equality directives under regular review and invites the Commission to propose a recast of Directive 2006/54/EC as soon as possible, in accordance with Article 32 thereof and on the basis of Article 157 TFEU, following the detailed recommendations set out in the annex to Parliament’s resolution of 24 May 2012;

13.

Deplores in the strongest possible terms the fact that women do not receive the same salary in cases where they hold the same jobs as men or jobs of equal value, and condemns, equally, both horizontal and vertical segregation; emphasises, furthermore, the fact that the vast majority of low salaries and almost all very low salaries are paid for part-time work and points out that about 80 % of the working poor are women; points out that according to the European Added Value Assessment conclusions, a decrease of one percentage point in the gender gap in pay would bring about an increase of 0,1 % in economic growth, which means that it is crucially important to close the gap that exists in the current economic downturn; calls, therefore, on the Member States, employers and trade union movements to draft and implement serviceable, specific job evaluation tools to help determine work of equal value and thus ensure equal pay between men and women;

14.

Calls on the Commission and the Member States to implement proactive policies to promote good jobs for women in order to meet the Europe 2020 targets by combating stereotypes and vertical and horizontal occupational segregation, encouraging the transition from part- to full-time work, and focusing in particular on the not-in-education-employment-or-training (NEET) category; calls on the Member States to set specific employment targets in the framework of their national reform programmes to ensure that women have the same opportunities as men to access and stay in the labour market;

15.

Calls on the Commission and the Member States to implement proactive policies to encourage women to embrace careers in science and to promote, through information and awareness-raising campaigns in particular, entry by women into sectors traditionally viewed as ‘male’, notably the sciences and new technologies, with a view to benefiting fully from the human capital represented by European women; stresses, in particular, that information and communications technology (ICT) offers new opportunities and calls upon the Commission to ensure that gender be fully mainstreamed in the priority accorded to the digital agenda in the next five years;

16.

Stresses that financial independence is a key means of securing equality and that entrepreneurship among women constitutes an underestimated and underexploited potential for growth and competitiveness in the EU; calls, therefore, on the European Institute for Gender Equality (EIGE) to collect more and better data on entrepreneurship among women; calls on the Member States, the Commission, other relevant bodies, such as chambers of commerce, and industry to encourage, promote and support entrepreneurship among women by facilitating access to credit, cutting red tape and other obstacles to start-ups by women, mainstreaming a gender perspective in the relevant policies, promoting the creation of a single multilingual electronic data and exchange platform for women social entrepreneurs, and supporting regional and Europe-wide mentoring and peer-to-peer networks;

17.

Believes that helping women to return to the labour market requires a multidimensional policy (involving vocational training and lifelong learning, and the promotion of more stable employment and tailored working patterns) and draws attention to the increasing prevalence of flexible working hours; points out that demand for flexibility is greatest among part-time workers, the majority of whom are women; maintains, therefore, that collective bargaining is a right which must be protected inasmuch as it helps to combat discrimination and safeguard and enhance rights;

18.

Emphasises the fact that increased flexibility in working arrangements can increase women’s opportunities to participate actively in the labour market, but notes, at the same time, that this flexibility can have a negative impact on women’s wages and pensions; points, therefore, to the need for specific work-life balance proposals, and encourages men and women to share occupational, family, and social responsibilities more evenly, especially in cases where assistance to dependants and childcare are concerned;

19.

Asks the Member States to include strategies in rural development programmes to boost the number of jobs for women in rural areas, thereby assuring them of decent pensions, and policies which promote the presence of women on political, economic and social forums in said sector and which further the promotion of equal opportunities in rural areas in line with the multifunctionality of agriculture;

20.

Emphasises the growing consensus within the EU as regards the need to promote gender equality through, inter alia, the presence of women in economic and political decision making and, which is a question of fundamental rights and democracy, given that it currently reflects a democratic deficit; welcomes, therefore, the legislated parity systems and gender quotas introduced in some Member States and calls on the Council to state its position on the directive on gender balance among non-executive directors of listed companies so as to enable the legislative process to be continued as soon as possible; calls on the Council and the Commission to take the measures necessary to encourage the Member States to enable women and men to participate on an equal footing in the various spheres of decision-making; calls also for the EU institutions to do everything in their power to guarantee gender equality in the College of Commissioners and in high-level positions in all EU institutions, agencies, institutes and bodies;

21.

Calls on the Commission and the Member States to examine whether gender clauses may be included in public procurement tender notices in order to encourage businesses to strive towards gender equality in their ranks; acknowledges that EU legislation on competition must be complied with in developing this idea;

22.

Congratulates Sweden, Belgium, France, Slovenia, Denmark and the United Kingdom on achieving the Barcelona objectives and calls on the other Member States to continue their efforts; calls on the Member States to go beyond the Barcelona objectives by adopting a more systematic and integrated approach, to be implemented jointly by national and local authorities, to education and preschool care services, in particular for very young children under the age of three; calls on the Commission to provide continuing financial support to Member States so that they can offer childcare systems — in particular by means of crèches — that parents can afford, including through the establishment of these facilities in the workplace; believes that the right balance can be struck between family plans, private life and professional ambitions only if the people concerned have genuine freedom of choice, in economic and social terms, and are supported by political and economic decisions at EU and national level without being penalised, and if the requisite infrastructure is in place; calls on the Member States to increase their child support budgets, specifically by expanding public networks of day care centres, nurseries and services which offer extracurricular activities for children; calls also on the Commission to address the lack of affordable childcare facilities in its CSRs;

23.

Deplores in the strongest possible terms the fact that, despite the level of EU funding available (EUR 3,2 billion from the structural funds for the 2007-2013 period was earmarked to assist Member States in developing childcare facilities and promoting employment for women), certain Member States have made budget cuts that are affecting the availability (e.g. as a result of nursery closures) and quality (e.g. as a result of staffing shortfalls) of childcare services and rendering them more expensive;

24.

Calls on the Commission and the Member States to establish paid paternity leave of at least ten working days and to promote measures, legislative and otherwise, enabling men, and fathers in particular, to exercise their right to achieve a work-life balance through, inter alia, the promotion of parental leave, to be taken by either the father or mother, but without swapping between them, until their child has reached a given age;

25.

Deplores the deadlock in the Council regarding the maternity leave directive; urges the Member States to resume the negotiations thereon and reiterates its willingness to cooperate;

26.

Calls on the Member States to establish affordable, flexible, high-quality and easily accessible services for the care of people who are unable to cope with everyday tasks by themselves due to fact that they do not possess the functional autonomy they need to strike a balance between their personal, family and working lives;

27.

Calls on the Commission to encourage ratification at national level and to initiate the procedure for EU accession to the Istanbul Convention as quickly as possible; notes that the immediate accession of all Member States to the Istanbul Convention would lead to the development of an integrated policy and the promotion of international cooperation in the fight against all forms of violence against women;

28.

Renews its call on the Commission to submit a proposal under Article 84 TFEU for a legislative act establishing measures to promote and support the action of Member States in the field of preventing violence against women and girls, by supporting a comprehensive and effective policy framework on gender-based violence, focusing on prevention, the prosecution of perpetrators, the protection of victims and appropriate and adequate service provision and teaching on equality, and by introducing penalties for discriminatory or violent behaviour towards women; calls, furthermore, on the Member States to work systematically on empowering women in reporting violence to authorities, and on the education and training of experts who deal with the victims;

29.

Calls on the Commission to ensure the effective and adequately resourced implementation of its communication on the elimination of female genital mutilation;

30.

Asks the Council to activate the passerelle clause and to adopt a unanimous decision identifying gender violence as an area of crime listed under Article 83(1) TFEU, which already covers trafficking in human beings and the sexual exploitation of women and children;

31.

Calls on the Commission to better regulate the digital market with the aim of protecting women and girls against violence on the internet;

32.

Recommends that, in their national action plans to eliminate domestic violence, Member States lay down the obligation to support undocumented migrant women in exactly the same way as women staying legally, without any requirement for institutions to report such cases to the authorities;

33.

Recommends that the Member States strengthen their free public health services in order to support all women subjected to violence, including refugees, through, inter alia, increasing their capacity, with specialised assistance being provided to women of different nationalities and to women with disabilities;

34.

Renews its call on the Commission and the Member States to make 2016 the European year against violence against women by granting sufficient resources for awareness raising; stresses, to this end, that it is necessary to provide adequate training for the authorities and services involved, as well as for professionals, such as police officers, doctors, magistrates, lawyers, teachers and anyone who could, by virtue of their occupation, provide assistance to women who have been victims of violence;

35.

Asks the Commission to put together a European protection order register, in view of the fact that the Member States’ deadline for transposing Directive 2011/99/EU on the European protection order expired on 11 January 2015;

36.

Recognises that, in regions affected by war, violence against women represents a clear violation of women’s fundamental rights and manifests itself through the humiliating and degrading treatment of women; stresses that gender equality is essential for building peace, as it is an expression of the need to prevent and fight against phenomena such as these which affect women;

37.

Calls on the EIGE, the FRA and Eurostat to keep collecting comparable data, in particular harmonised data on violence, in order to provide Member States and the Commission with the tools needed for effective policy making; calls also on the Commission and the Member States to direct their attention to the situation in Member States as regards the institutional machinery in place to promote gender equality, the objective being to prevent this from being damaged in the future by the effects of the economic crisis and the reforms that it is entailing, bearing in mind that, without such institutional machinery, the cross-cutting priority assigned to gender equality in every policy sphere, and the specific means of addressing it, will not translate into results;

38.

Calls on the Commission to safeguard the Daphne programme — both in terms of its funding and visibility — in the Rights and Citizenship programme in order to ensure that associations working to stop violence against women may continue their work;

39.

Calls, once again, on the Commission to set up a European monitoring centre on gender violence (along the lines of the current European Institute for Gender Equality), to be led by a European coordinator for the prevention of violence against women and girls;

40.

Urges the Commission to strongly condemn media campaigns and other communications depicting victims of sexual violence as being responsible for these acts, as such assumptions go against all the basic principles of gender equality;

41.

Points to the decisive role of education in combating gender stereotypes and ending gender-based discrimination; stresses that boys and men need to be included in promoting women's rights and gender equality; calls, therefore, on the Commission to take decisive policy action to fight gender stereotypes and suggest to the Member States that they raise awareness of equal rights and equal opportunities for men and women in their educational systems;

42.

Asks the Council and the Commission to take steps to make sure that social media use language in a non-sexist way, ensure that women participate actively and are represented in a balanced way, and ensure that there are diverse images of both sexes, going beyond general concepts of beauty and sexist stereotypes of roles carried out in different areas of life, in particular where content aimed at children and young people is concerned;

43.

Calls on the Member States and their media regulators to consider the place accorded — in both quantitative and qualitative terms — to women in the media, and in particular on television, not least so as to avert insults to the dignity of women, to avoid conveying gender stereotypes and to curb any tendency to hypersexualise little girls;

44.

Asks the Member States, following the adoption of the Council conclusions on gender equality in sport, to make full use of the opportunities offered by sport to promote gender equality, notably by defining specific action plans to combat stereotypes and violence, favour equality among professional sportsmen and sportswomen, and promote sport for women;

45.

Points out that various studies show that abortion rates in countries in which abortion is legal are similar to those in countries in which it is banned, and are often even higher in the latter (World Health Organisation, 2014);

46.

Notes that the formulation and implementation of policies on sexual and reproductive health and rights and on sexual education is a competence of the Member States; emphasises, nevertheless, that the EU can contribute to the promotion of best practice among Member States;

47.

Maintains that women must have control over their sexual and reproductive health and rights, not least by having ready access to contraception and abortion; supports, accordingly, measures and actions to improve women’s access to sexual and reproductive health services and inform them more fully about their rights and the services available; calls on the Member States and the Commission to implement measures and actions to make men aware of their responsibilities for sexual and reproductive matters;

48.

Emphasises the importance of active prevention, education and information policies aimed at teenagers, young people and adults to ensure that sexual and reproductive health among the public is good, thereby preventing sexually transmitted diseases and unwanted pregnancies;

49.

Calls on the Member States, when applying Regulation (EU) No 536/2014 in clinical trials of medicinal products for human use, to ensure equality in the representation of men and women in clinical trials, paying special attention to transparency as regards the gender composition of participants; calls on the Commission, when considering the proper implementation of this regulation, specifically to monitor aspects of equality between women and men;

50.

Points out that the EU ratified the United Nations Convention on the Rights of Persons with Disabilities on 22 January 2011 and that, under this convention, States Parties must undertake to ensure and promote the full realisation of all human rights and fundamental freedoms for all persons with disabilities without discrimination of any kind on the basis of disability and to refrain from engaging in any act or practice that is inconsistent with the convention;

51.

Calls on the Commission to vigorously promote gender equality in the context of the EU’s external relations with third countries, thereby strengthening its comprehensive strategic approach as regards equality; stresses, in this connection, the importance of stepping up cooperation with international and regional organisations with a view to promoting gender equality and improving awareness of women’s rights;

52.

Calls on the EU to put an end to policies establishing dependency between family members in the framework of family reunion, and calls for the EU and its Member States to grant migrant women autonomous residence status, especially in cases of domestic violence;

53.

Calls on the Commission to ensure that gender equality and women's rights be included in all partnership agreements and in all negotiations with non-EU countries;

54.

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

30.8.2016   

EN

Official Journal of the European Union

C 316/15

—

having regard to the Commission report of 6 May 2014 on Competition Policy 2013 (COM(2014)0249) and to the accompanying Commission staff working document (SWD(2014)0148),

—

having regard to the Treaty on the Functioning of the European Union (TFEU), in particular Articles 101-109 thereof,

—

having regard to Council Regulation (EC) No 1/2003 of 16 December 2002 on the implementation of the rules on competition laid down in Articles 81 and 82 of the Treaty (1),

—

having regard to Council Regulation (EC) No 169/2009 of 26 February 2009 applying rules of competition to transport by rail, road and inland waterway (2),

—

having regard to Directive 2014/104/EU of the European Parliament and of the Council of 26 November 2014 on certain rules governing actions for damages under national law for infringements of the competition law provisions of the Member States and of the European Union (3),

—

having regard to the Commission communication of 11 June 2013 on quantifying harm in actions for damages based on breaches of Article 101 or 102 of the Treaty on the Functioning of the European Union (4),

—

having regard to the Commission staff working document of 4 February 2011 entitled ‘Public consultation: Towards a Coherent European Approach to Collective Redress’ (SEC(2011)0173),

—

having regard to the Commission communication of 11 June 2013 entitled ‘Towards a European Horizontal Framework for Collective Redress’ (COM(2013)0401),

—

having regard to Commission recommendation 2013/396/EU of 11 June 2013 on common principles for injunctive and compensatory collective redress mechanisms in the Member States concerning violations of rights granted under Union Law (5),

—

having regard to the study published in June 2012 by the Policy Department of the Directorate-General for Internal Policies, entitled ‘Collective redress in Antitrust’,

—

having regard to the Commission communication of 11 June 2013 published pursuant to Article 27(4) of Council Regulation (EC) No 1/2003 in Case AT.39740 — Google (6),

—

having regard to the commitments offered to the Commission pursuant to Article 9 of Council Regulation (EC) No 1/2003 in Case COMP/39.398 — Visa MIF,

—

having regard to Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation) (7),

—

having regard to the Commission consultation of 27 March 2013 on EU merger control — draft revision of simplified procedure and merger implementing regulation,

—

having regard to the Commission communication of 13 October 2008 on the application of State aid rules to measures taken in relation to financial institutions in the context of the current global financial crisis (8) (the Banking Communication),

—

having regard to the Commission communication of 5 December 2008 entitled ‘The recapitalisation of financial institutions in the current financial crisis: limitation of aid to the minimum necessary and safeguards against undue distortions of competition’ (9) (the Recapitalisation Communication),

—

having regard to the Commission communication of 25 February 2009 on the treatment of impaired assets in the Community banking sector (10) (the Impaired Assets Communication),

—

having regard to the Commission communication of 23 July 2009 on the return to viability and the assessment of restructuring measures in the financial sector in the current crisis under the State aid rules (11) (the Restructuring Communication),

—

having regard to the Commission communication of 17 December 2008 on a temporary Community framework for State aid measures to support access to finance in the current financial and economic crisis (12) (the original Temporary Framework),

—

having regard to the Commission communication of 1 December 2010 entitled ‘Temporary Union framework for State aid measures to support access to finance in the current financial and economic crisis’ (13) (the new Temporary Framework replacing the one which ended on 31 December 2010),

—

having regard to the Commission communication on the application, from 1 August 2013, of State aid rules to support measures in favour of banks in the context of the financial crisis (‘Banking Communication’) (14),

—

having regard to the issues paper from the Commission for the attention of the EFC on the revision of the State aid guidelines for the restructuring of banks,

—

having regard to the study of June 2011 by the Policy Department of the Directorate-General for Internal Policies, entitled ‘State aid — Crisis rules for the financial sector and the real economy’,

—

having regard to the Commission communication on the application of the European Union State aid rules to compensation granted for the provision of services of general economic interest (15),

—

having regard to Commission Decision 2012/21/EU of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to State aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest (16),

—

having regard to the Commission communication entitled ‘European Union framework for State aid in the form of public service compensation (2011)’ (17),

—

having regard to Commission Regulation (EU) No 360/2012 of 25 April 2012 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest (18),

—

having regard to its resolution of 15 November 2011 on reform of the EU State aid rules on Services of General Economic Interest (19),

—

having regard to the Commission communication of 9 February 2012 entitled ‘EU State Aid Modernisation (SAM)’ (COM(2012)0209),

—

having regard to its resolution of 17 January 2013 on State aid modernisation (20),

—

having regard to the Commission proposal of 30 July 2012 for a Council regulation amending Council Regulation (EC) No 994/98 of 7 May 1998 on the application of Articles 92 and 93 of the Treaty establishing the European Community to certain categories of horizontal State aid and Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road (COM(2012)0730),

—

having regard to the Commission proposal of 5 July 2012 for a Council regulation amending Regulation (EC) No 659/1999 laying down detailed rules for the application of Article 93 of the EC Treaty (COM(2012)0725),

—

having regard to the Commission guidelines on state aid for railway undertakings (21),

—

having regard to its resolution of 12 June 2013 on regional policy as a part of wider State support schemes (22),

—

having regard to the Framework Agreement of 20 October 2010 on relations between the European Parliament and the European Commission (23) (hereinafter ‘the Framework Agreement’), in particular paragraphs 9, 12, 15 and 16 thereof,

—

having regard to its resolutions of 22 February 2005 on the Commission’s 23rd Report on Competition Policy — 2003 (24), of 4 April 2006 on the Commission Report on Competition Policy 2004 (25), of 19 June 2007 on the Report on Competition Policy 2005 (26), of 10 March 2009 on the Reports on competition policy 2006 and 2007 (27), of 9 March 2010 on the Report on Competition Policy 2008 (28), of 20 January 2011 on the Report on Competition Policy 2009 (29), of 2 February 2012 on the Annual Report on EU Competition Policy (30), of 12 June 2013 on the Annual Report on EU Competition Policy (31) and of 11 December 2013 on the Annual Report on EU Competition Policy (32),

—

having regard to the Commission’s Staff Working Paper of 20 June 2013 entitled ‘Towards more effective merger control’,

—

having regard to the Commission’s White Paper of 9 July 2014 entitled ‘Towards more effective merger control’,

—

having regard to its resolution of 5 February 2014 on EU cooperation agreements on competition policy enforcement — the way forward (33),

—

having regard to the statement of 6 November 2014 by the Commissioner for Competition, Margrethe Vestager, on tax state aid investigations,

—

having regard to the Commission’s 2014 Digital Scoreboard,

—

having regard to Rules 52 and 132(2) of its Rules of Procedure,

—

having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on the Internal Market and Consumer Protection (A8-0019/2015),

A.

whereas some sectors within the single market remain divided by national borders and artificial barriers, and at the same time worrying practices such as social dumping or the misuse of structural funds raise concerns and should also be addressed within the framework of EU competition policy; whereas competition does not operate in an equally satisfactory manner in all Member States;

B.

whereas competition policy is in itself a means of safeguarding European democracy, in that it prevents the over-concentration of economic and financial power in the hands of a few, which would undermine the ability of Europe’s political authorities to act independently of major industrial and banking groups;

C.

whereas competition policy based on a level playing field in all sectors is a cornerstone of the European social market economy, and an essential tool to ensure the proper functioning of a dynamic, efficient, sustainable and innovative internal market, to drive economic growth and job creation, and to be competitive on the global stage; whereas the economic and financial crisis should therefore not be a pretext to relax the enforcement of competition rules;

D.

whereas each year losses of EUR 181-320 billion — approximately 3 % of EU GDP — accrue owing to the existence of cartels;

E.

whereas the equivalent of EUR 1,6 trillion was granted in State aid to banks in the EU in the period from 2008 up to the end of 2011;

F.

whereas tax evasion, tax fraud and tax havens are costing EU taxpayers an estimated EUR 1 trillion per year in lost revenue, distorting competition in the single market between those companies which pay taxes and those which do not;

G.

whereas European citizens want a high-quality and affordable provision of public services;

H.

whereas the strict application of the principles of competition law is primarily to the benefit of the consumer, whilst lack of competition results in misallocation of resources and lower productivity;

I.

whereas in terms of energy costs the European single market performs worse than the US, with a price dispersion of 31 % compared to 22 % in the US;

J.

whereas the creation of a ‘single market administration passport’ would reduce distortions of competition and the fragmentation of the single market, enhancing the growth potential of the European economy;

K.

whereas the successful development of SMEs under conditions of free competition is one of the most essential preconditions for job creation, sustainable growth, innovation and investment; whereas in many Member States a severe credit crunch is affecting SMEs, which account for 98 % of firms in the EU;

L.

whereas the free movement of goods, services, persons and capital is essential for growth; whereas protectionism can limit domestic industries’ long-term growth prospects;

M.

whereas uncovered cartels’ duration fluctuates between 6 to 14 years from their commencement, affecting the economy with a higher burden on customers and ultimately on consumers;

N.

whereas the EU unitary patent is a step forward for completion of the single market and all Member States should participate in it;

O.

whereas the publication of the so-called ‘LuxLeaks’ documents by the International Consortium of Investigative Journalists points up the need for a thorough and independent investigation of Member States’ tax rulings practices and their compliance with EU state aid control rules; whereas the independence of DG Competition is of the utmost importance for achieving this as well as its other goals in a successful matter;

1.

Welcomes the fact that the EU’s economic dimension in the Treaties is established as an ‘open market economy with free competition’; stresses that a reinforced focus on promoting competition is necessary for the achievement of the ambitious objectives for jobs, growth, investment and the global competitiveness of the European economy, as it is sustainable and effective competition that drives investment and end-user benefits and fuels the economy; highlights the essential role of competition policy enforcement in creating a level playing field that fosters innovation, productivity, job creation and investment by all players across the single market and across all business models, including SMEs, in full respect of national diversities; asks the Commission to enforce antitrust, state aid and merger control rules with a view to achieving a well-functioning internal market and social progress;

2.

Takes the view that ensuring a level playing field for companies in the internal market also depends on combating social dumping and on the implementation of European social and environmental law; calls on the Commission to consider the social and labour impacts of its interventions in the field of state aid, especially in those regions with high levels of unemployment, integrating that analysis in its decisions;

3.

Stresses the need to take appropriate competition and tax measures to help European industrial groups and SMEs cope with globalisation;

4.

Calls on the Commission to identify possible imbalances between Member States which could distort competition, as well as their causes and economic impact;

5.

Highlights the fact that competition policy plays a key role in reinforcing the holistic approach to the single market aimed at to addressing Europe’s economic, social and environmental challenges; calls on the Commission effectively to respect the needs of citizens, consumers and SMEs by placing their concerns at the centre of the decision-making process so that the competition policies proposed can provide added value for European citizens;

6.

Reiterates that the Commission should consider reallocation of resources from obsolete or underused budget lines to DG Competition; points out that the Commission must be provided with appropriate staff resources if it is to significantly widen and deepen its investigations into fiscal state aid such as tax rulings and tax avoidance so as to give competition policy a sufficient proactive stance; believes that the Commission must also have proficient legal resources to further identify gaps that we have been made aware of through the revelation of the targeted tax schemes practised by various Member States; recommends, in particular, the reinforcement of DG Competition’s fiscal state aid unit, in light of the LuxLeaks revelations;

7.

Awaits the imminent disclosure of the Commission’s stocktaking exercise following a decade of Regulation (EC) No 1/2003 on the implementation of the rules on competition law, and calls on the Commission to involve Parliament in any initiatives which ensue; calls on the Commission to take appropriate action to align the regulation with the new legal situation, particularly as a result of the adoption of the Directive on Damages Actions;

8.

Reminds the Commission that the independence of national competition authorities should be monitored closely;

9.

Stresses that competition policy instruments must not be misused as a means of implementing tax measures; urges the Commission to state clearly its concerns in the sphere of taxation;

10.

Takes the view that the fundamentals and key guidelines of competition policy should in future be drawn up and adopted in closer cooperation with Parliament in order to strengthen the democratic legitimation of the competition authority;

11.

Welcomes the common approach taken in the process of state aid modernisation, with a view to promoting greater effectiveness in public spending against a background of limited budget margins, especially in the Member States that have been the most severely affected by the crisis;

12.

Recognises that efficient implementation of competition policy requires coherent and consistent judicial interpretation;

13.

Notes that the Commission is relying increasingly on commitment decisions; believes, however, that more transparency on the substance of allegations and the establishment of a higher number of legal precedents are necessary; considers that this applies in particular to cases tackling antitrust issues in new areas, such as markets for digital goods, in which companies might find it difficult to assess whether a certain behaviour constitutes a violation of competition rules;

14.

Believes that in order to ensure greater transparency and mitigate some of the drawbacks of commitment decisions while retaining their main benefits, the full details of the objections addressed by the Commission to defendants should be published;

15.

Notes that SGEIs represent a significant share of total service provision in Member States, and maintains that their more efficient provision (compared to other services) can deliver significant gains; reaffirms the importance of the SGEI designation for universally accessible services that are of vital significance to European citizens, from healthcare to social security to housing provision, while at the same time stressing the Commission’s responsibility to ensure that compensation granted to SGEIs is compatible with EU state aid rules;

16.

Reiterates that EU Structural Funds may not be used in a way that directly or indirectly supports the relocation of services or production to other Member States;

17.

Believes that further investigation should be made into sports clubs (particularly football clubs) which owe millions to the social security authorities without those sums being paid by them or reclaimed by government, as this may constitute de facto state aid;

18.

Stresses the advisability of assessing the cumulative effects of corporate taxation and state aid;

19.

Calls on the Commission to carefully monitor the implementation of this directive by the Member States and ensure that its provisions are applied uniformly throughout the EU;

20.

Reiterates its concern that the use of fines as the sole sanction available may not be effective enough; calls again for the development of more sophisticated instruments to increase the effectiveness of the penalty system; reiterates its call on the Commission to consider a general review of its 2006 Fining Guidelines, and calls for those guidelines to be integrated into Regulation (EC) No 1/2003; invites the Commission to assess the possibility of complementing cartel fines with individual sanctions such as individual fines and disqualification of directors; calls on the Commission to ensure that companies which break the law do not suffer negative repercussions which go beyond proportionate redress for the offence committed;

21.

Calls on the Commission to create special cross-DG task forces to monitor sectors in which structural features (such as high barriers to entry or high customer switching costs) make antitrust violations more likely;

22.

Calls on the Commission to help put in place an institutional mechanism which would ensure that whenever a national authority takes an antitrust decision there would be an automatic follow-up check, in which the Commission would examine whether similar issues affect different geographic markets throughout Europe where the sanctioned companies are also active;

23.

Supports the ongoing cooperation within the European Competition Network (ECN), which allows EU-wide coherence of public enforcement of competition rules, and encourages its further development;

24.

Calls on the Commission to set clear procedures for timetables and deadlines in order to speed up the investigation process and avoid unjustified extensions; calls for formal rights for all implicated victims and parties in antitrust and cartel cases, with due stress on the principle of the presumption of innocence;

25.

Calls on the Commission to provide a comprehensive legal and economic assessment of antitrust and cartels cases, particularly in fast-moving markets, in order to obtain a clear understanding of market structure and market trends, and to take appropriate measures to protect consumers;

26.

Notes that competition policy should be focused particularly on protecting consumers, improving consumer welfare, fostering innovation and stimulating economic growth;

27.

Calls, in that connection, for details to be provided of the conditions subject to which parent companies that exercise a degree of influence over their subsidiaries can be held severally liable for breaches of antitrust law by the latter even if they themselves were not directly involved;

28.

Reiterates, with regard to repeat offenders, the call for a clear link to be established between the breach of the law which is being investigated and past breaches committed by the undertaking concerned;

29.

Notes that the number of requests for fine reduction on account of inability to pay has increased, particularly from ‘mono-product’ undertakings and SMEs; emphasises the need to revise the guidelines on the setting of fines to take account of the particular circumstances of ‘mono-product’ undertakings and SMEs;

30.

Takes the view that market dominance achieved by means of expansion, innovation and success is not in itself a competition problem; regards the abuse of a dominant market position, conversely, as a serious competition problem; calls on the Commission, therefore, to continue to safeguard the impartiality and objectivity of competition-related proceedings;

31.

Calls on the Commission to address with determination all the matters brought to light in current anti-trust law investigations and to take any measures required to put an end to damaging practices and restore fair competition;

32.

Agrees that effective merger control is an important instrument for competition enforcement since it contributes to the maintenance of competitive pressure on market participants;

33.

Calls on the Commission to be attentive to those cases where just after a merger is cleared, consumer prices rise or there is a relevant reduction of a product’s quality;

34.

Welcomes the Commission’s ‘merger simplification’ proposal of 5 December 2013 and the proposals set out in its latest White Paper (34), but calls for much clearer definitions to be drawn up of the concepts of market share, market power and definition;

35.

Emphasises the need for a review to determine whether current merger control practice takes account of the internationalisation of markets, in particular as regards the geographical definition of markets; considers that the Commission should take account of the findings of such a review when overhauling the rules on merger control;

36.

Calls on the Commission to check carefully whether there are in fact loopholes in its powers to scrutinise non-controlling minority shareholdings;

37.

Stresses the importance of affordability, sustainability and security of energy supply for the European economy and its competitiveness; considers that competition policy must take this threefold objective into account when addressing the current fragmentation of the market, when ensuing correct and timely implementation of the third liberalisation package for gas and electricity, when encouraging the unbundling of wholesale from retail services in order to prevent anti-competitive practices, and when contributing to the provision of affordable energy for households and undertakings; acknowledges that the Commission’s new ‘Guidelines on State Aid for Environmental Protection and Energy’ could restrict some Member States’ attempts to promote renewable energy; stresses that the regulation of state aid for sustainable energy sources must, to the greatest extent possible, be carried out in the same spirit as in any other sector, while taking into consideration the EU’s 2030 targets for climate and energy as well as national diversities;

38.

Stresses the importance of avoiding monopolistic practices in order to achieve a fully fair and competitive European energy market; calls, in this regard, for the elimination of monopolistic suppliers and discriminatory practices affecting users; considers that the European gas market should evolve towards an Energy Union with fair and stable prices by improving the diversification of its energy sources and enhancing access to strategic infrastructures;

39.

Calls on the Commission to undertake investigations and take the necessary steps to ensure that existing electricity interconnectors are made fully available for the power market by the transmission system operators (TSOs), in order to enhance the functioning of the internal electricity market and to support the fulfilment of the EU’s 2030 targets for climate and energy at the lowest possible socio-economic cost at Union level;

40.

Urges the Commission to provide for reporting of fossil fuel reserves and potential CO2 emissions on the part of listed companies and those applying for listing within the single market, as well as to carry out correct and reliable environmental reporting by aggregate and to publish the levels of reserves and emissions using appropriate accounting guidelines, as this is essential for ensuring a level playing field in the sustainable investment market;

41.

Calls on the Commission to examine the extent to which the concentration of critical raw materials suppliers may create an uneven playing field and be harmful to the activity of client sectors and unfavourable to a more eco-efficient economy; considers that some of these materials are of paramount importance for the deployment of eco-efficient technologies and innovations needed to achieve environmental goals;

42.

Reiterates that competition policy should contribute to promoting transparency, open standards and interoperability in order to prevent technological lock-in of consumers and clients by any of the market players in the energy sector; urges the Commission to closely monitor the level of competition, since the three largest players still represent about 75 % in the electricity market and above 60 % in the gas market, despite the gradual opening of markets since the mid-1990s; calls on the Commission to ensure proper competition in the energy market in order to improve state support for innovation and access to renewable energy sources;

43.

Asks the Commission to ensure that energy regulations and directives are transposed and applied correctly in all Member States; calls on the Commission to be particularly vigilant when prices rise above the EU average, as high prices distort competition and harm consumers;

44.

Believes that the Digital Single Market must be kept at the heart of the EU’s efforts to achieve results in the objectives of job creation, growth and investment; recognises the role of competition policy in the pursuit of a Digital Single Market; believes that the EU's legislative framework needs to adjust rapidly to market developments; calls on the Commission to review existing competition law instruments in order to determine whether they meet the demands of the digital age; believes that the priorities set out in the report ‘Priorities towards a Digital Single Market in the Baltic Sea Region’ could become ambitions for the entire EU;

45.

Welcomes the announcement by the Commissioner for Competition of further investigations by the Commission into Google's practices in the mobile sector and in the digital market in general; regrets that, despite four years of investigation and three sets of commitment proposals, the Commission has achieved no demonstrable results in addressing the main competition concern in its antitrust case against Google, i.e. the preferential treatment by Google of its own services in displaying results of search queries; stresses the need for the Commission to urgently resolve the Google case in order to ensure a level playing field if its Digital Agenda strategy is to remain credible; urges the Commission to act decisively on all concerns that have been identified, to take strong measures based on the non-discrimination principle against competition infringements in fast-moving and dynamic digital markets such as the online search and advertising markets, and to find a long-term solution for a balanced, fair and open internet search structure;

46.

Asks the Commission to focus on mobilising competition policy tools and market expertise so that they contribute, as appropriate, to the jobs and growth agenda, including in the area of the digital single market; in this context, finds it important to keep developing an economic and a legal approach to the assessment of competition issues, and to further develop market monitoring in support of the broader activities of the Commission;

47.

Underlines that, in the next-generation broadband sector, the former monopolies have a staggering market share of over 80 %; recalls that effective competition is the best driver of efficient investment and provides maximum consumer benefit in terms of choice, price and quality; calls on the Commission, therefore, to enforce properly both ex post and ex ante competition rules in order to prevent excessive market concentration and abuse of dominance, as competitive pressure is key to ensuring that consumers can benefit the most from high-quality services at affordable prices;

48.

Stresses that limiting competition is unlikely to lead to more broadband investment, even in remote areas, as full coverage of basic broadband services has been achieved in Europe through a regulatory framework ensuring access to dominant operators’ networks;

49.

Believes that investment in next-generation broadband infrastructure is clearly core to achieving a digital economy and society, but that in order to maximise investments, telecoms policies should enable all players to make efficient investments by providing them with effective access to non-duplicable network assets and fit-for-purpose wholesale access products;

50.

Calls on the Commission to base its decisions and policy proposals on a thorough and impartial analysis of correct, relevant and independent datasets; highlights, in particular, doubts about the correctness of data presented on the EU’s under-performance in high- speed broadband including speeds received by end-users, infrastructure investments and the financial state of the sector in a global comparison;

51.

Recalls that net neutrality is of the utmost importance to ensure that there is no discrimination between internet services and competition is fully guaranteed;

52.

Stresses that tackling the fragmentation of the digital single market, including by investigating the nature of existing barriers to key sectors of that market, guaranteeing an open internet and enshrining net neutrality in EU law, so as to ensure that all internet traffic is treated equally, without discrimination, restriction or interference, are essential to foster competition and boost growth and competitiveness and consumer trust in the digital sector; is of the opinion that open standards and interoperability contribute to fair competition; highlights the need for competition policy to be future-proof and take into account new ways of selling online;

53.

Stresses that efforts to foster free and fair competition, including through the development of the digital single market, as well as other aspects of the services sector, should work in the interests of consumers and SMEs; reiterates that such efforts will enhance choice for consumers and develop an environment in which SMEs and micro-enterprises can display greater innovation and creativity; believes that swift action by regulators and enforcement authorities against misleading and unfair practices is essential in the implementation of competition policy;

54.

Calls for the Commission to analyse how to accommodate the rise of the sharing economy in the European legislation; believes that such an adaptation is necessary in order to have a level playing field that ensures fair competition among all actors involved;

55.

Believes that companies related to the so-called sharing economy must pay taxes and comply with regulations in the same way as traditional businesses, as to do otherwise would not only constitute a distortion in competition but would also have negative fiscal consequences for the finances of Member States;

56.

Stresses that effective scrutiny of the behaviour of dominant firms and quick reaction in case of abuses are particularly important since illegal practices may cause the early exit from the market of small and innovative competitors;

57.

Notes that lack of regulation in the sharing economy gives some companies an unfair advantage, while at the same time decreasing incentives to investment in the sectors concerned;

58.

Calls on the Member States to implement the new EU public procurement rules in a timely manner, including the provisions on criteria linked to the subject-matter of the contract, including social, environmental and innovative characteristics, and on e-administration, e-procurement and division into lots, in order to boost fair competition and ensure best value for money for public authorities; urges the Commission to ensure their application to the fullest possible extent in order to tackle distortions of competition caused by bid rigging, abuses of dominant position, discrimination and lack of access for SMEs; calls on the Commission to set its action within a global framework by linking the Union’s competition policy within Europe to advocacy for the opening of public procurement markets outside the EU;

59.

Stresses the importance of detailed and clear guidance to businesses, particularly SMEs, and public authorities from the Commission to facilitate their understanding of the recently adopted public procurement legislation and, particularly, the new flexibilities it offers;

60.

Calls on the Commission to carefully monitor the centralisation of purchases in public procurement markets in order to avoid excessive concentration of purchasing power and collusion, and to preserve market access opportunities for SMEs in accordance with the Small Business Act for Europe;

61.

Calls on the Commission, when conducting public procurement procedures through its Directorates-General and agencies, to award more low-value contracts and contracts above EUR 193 000, rather than almost exclusively using framework contracts, which constitute a barrier to opening the public procurement market to European SMEs as they only benefit large companies and consortia located close to the decision-making centres;

62.

Calls for the fourth consecutive time for a swift end to the state aid crisis regime for the banking sector; recognises that the Commission’s Banking Communication of August 2013 is not sufficient to protect European taxpayers and limit the amount of aid that banks may receive; emphasises that state aid to the banking system has neither increased credit nor restored confidence; urges the Commission to maintain a close watch on the banking sector in order to enhance competition in European banking markets, thereby maximising the benefits to Union citizens; stresses the importance of returning to the conventional application of state aid control as soon as this is viable for the banking sector;

63.

Highlights the contribution of cartel enforcement to a more transparent financial services sector;

64.

Considers it regrettable that no action was taken by the Commission to address the abuses committed in the restructuring of private banks, including those affecting small depositors and small owners of financial instruments such as preferred shares, which in many cases had been marketed without full compliance with EU legislation;

65.

Calls on the Commission to closely monitor the financial sector in order to enhance competition and investor and consumer protection in the European banking and investment market; notes that consolidation in the banking sector has increased the market share of several financial institutions so that it now exceeds pre-crisis levels, and that the financial investment industry has grown simultaneously without any gain for the real economy in the Union; believes that to maintain a fully functioning single market there must be a level playing field for actors in the financial industry and measures must be taken to avoid decreased transparency and the development of cartel-like constructions;

66.

Acknowledges the important role played by state aid control since the beginning of the crisis as a restructuring and resolution mechanism for distressed banks;

67.

Believes that state aid control during the crisis should focus both on stabilising the banking system and on tackling unfair segmentation of the credit conditions and discrimination affecting SMEs in the single market;

68.

Believes that the Commission should consider the possibility for state aid to banks to be linked to conditionality on credit to SMEs;

69.

Believes that banking regulations should take into account the fact that small institutions have less resources for ensuring compliance, and should therefore be as simple as possible in order to avoid creating distortions in favour of big banks;

70.

Urges the Commission to closely monitor those markets in the banking sector where concentration is high or growing, in particular as a result of restructuring in response to the crisis; recalls that oligopolistic markets are particularly prone to anti-competitive practices; fears that this concentration may ultimately harm consumers;

71.

Urges the Commission to make sure that before receiving any state aid banks sell their stakes in other companies, thereby reducing the burden for the taxpayer;

72.

Considers that special attention must be paid to the fragmentation of the electronic card payments market, including problems such as loss of service when consumers move to another Member State;

73.

Welcomes the CJEU ruling of 11 September 2014 on anti-competitive credit card fees, as well as the successful actions undertaken by the Commission to ensure that standardisation processes in the payments sector do not affect market entry and innovation; reiterates Parliament’s position that card payment fee caps should be introduced in order to reduce unnecessary costs for consumers; asks the Commission, in this context, to accelerate the process of mapping standardisation work for mobile payments, while ensuring that any action taken does not exclude new entrants or favour dominant players, and that the regulatory framework is technologically neutral in order to facilitate future technological developments;

74.

Believes that the externalities of developments in this sector should be carefully monitored; expresses its concern at the development of different standards among equal competitors as a consequence of the standardisation of financial regulations;

75.

Notes the considerable progress that has been made since 2008 in regulating the financial sector; stresses the need to further address the problem of financial institutions which are too big to fail and as a result continue to benefit from implicit subsidies; believes that a comprehensive analysis of the competitive aspects of new EU financial regulation should be included in the upcoming ECON report on the impact assessment and stocktaking of the financial services legislation, with a view to ensuring that EU banks are competitive with international financial institutions in all circumstances;

76.

Expresses its concern over possible illegal corporate tax practices in Member States, and calls on the Commission to conclude its ongoing investigations into tax rulings as speedily as possible using all available evidence; calls for investigations into tax cuts, which may constitute a form of illegal state aid to be given priority; stresses that fairer tax competition is indispensable for the integrity of the internal market, the viability of public finances and equal competition conditions;

77.

Highlights the publication of the so-called ‘LuxLeaks’ documents by the International Consortium of Investigative Journalists; welcomes the commitment of the Commissioner for Competition to a thorough and independent investigation of Member States' tax rulings practices and their compliance with EU competition law; notes that the avoidance of taxes by some enterprises distorts competition in the single market; encourages the Commission to vigilantly enforce EU state aid control rules;

78.

Calls on the Commission President to ensure the independence of the ongoing and future investigations of Member States' tax ruling practices led by the Commissioner for Competition; insists that Parliament be kept informed of the broad progress of these investigations, with a view to ensuring that they are conducted in a transparent and independent manner; calls on the Commission to present a report on its findings as soon as possible; recalls the commitment made by the Commissioner for Competition to consider the wider implications for competition of aggressive tax avoidance practices undertaken by companies and encouraged by states and to extend the investigation should this be deemed necessary once the facts have been collected;

79.

Calls on the Commission, in its upcoming review of the CAP reform, to investigate cofinancing for transferred funds, calls for a simplification of EFA measures that focus on competitiveness, and for a competition-neutral review of EFA factors for catch crops and nitrogen-fixing crops;

80.

Calls on the Commission, following its recent review of the economic impact of modern retail on choice and innovation in the EU food sector, to consider the potential impact of large supermarkets dominating the market to such an extent that their collective buying power distorts competition among supply chains, in both Europe and the developing world;

81.

Notes that this sector is fragmented owing to national regulation; welcomes the contribution of EU competition policy in tackling artificial barriers to entry;

82.

Calls for special consideration to be given to innovative medicinal products and medical procedures when cases involving temporary price formation are assessed;

83.

Notes that competition policy may play a role in improving access to generic pharmaceuticals;

84.

Calls on the Commission and the Member States to ensure a level playing field which allows free but also fair competition in all transport modes; acknowledges, however, in that connection, that proper account must also be taken of a multitude of specific national transport law provisions; stresses that transport infrastructure is essential to the survival and wellbeing of natural and legal persons, especially in sparsely populated regions and peripheral islands;

85.

Calls on the Commission and the Member States to increase their efforts to guarantee fair competition and better quality of services in the railway sector, as well as in the management of port and airport networks, particularly where their management is a central government monopoly; stresses that competition does not necessarily entail privatisation of the existing services; also calls on the Commission to ensure that carriers do not abuse their dominant position in certain airports;

86.

Believes that the Commission should further strengthen the links between competition policy and transport policy in order to improve the competitiveness of the European transport sector and continue to make progress towards completing the single market in transport;

87.

Urges the Commission to complete the implementation of the Single European Railway Area, ensure full transparency in flows of money between infrastructure managers and railway undertakings, and verify that each Member State has a strong and independent national regulator;

88.

Stresses that the single market in the rail freight sector is affected by incorrect or incomplete transposition of EU law by Member States and by bottlenecks to cross-border mobility that harm competition and growth; calls on the Commission to verify whether technical or market barriers that differ from one Member State to another, such as track gauges, energy supply and signalling systems, can be considered infringements of competition rules;

89.

Invites the Commission to provide a justified overview to ascertain which air carriers benefit from advantages over other service providers through special conditions or alleged abuses of their dominant position in certain airports;

90.

Expresses its concern at differing implementation and enforcement by Member States of regulations related to international road transport, e.g. the regulation of cabotage and resting times in road transport, as well as at potential social dumping practices within transport services in a broader sense, and believes that these problems must be addressed;

91.

Welcomes the initiative of the Commission directed at international car rental companies aimed at ending practices preventing consumers from accessing best available prices on the basis of their country of residence; stresses that consumers should not be prevented from making use of the best available rate when purchasing goods or services within the single market;

92.

Calls on the Commission to take action to reduce fragmentation in the car rental sector, as currently national regulations greatly increase the costs for trans-border movements, thus damaging the single market;

93.

Stresses that efforts to encourage a competitive EU must at all times work in the interests of the public; recognises the link between an effective EU competition policy and the need for large-scale investment in vital public services, including transport services;

94.

Urges the Commission to look into the restrictive and abusive practices of international sport federations, such as denying their members the right to take part in alternative sport events that are not sanctioned by the respective federations and imposing life bans on athletes, officials and coaches on participation in competitions such as the Olympic Games and world championships in case of non-compliance;

95.

Calls for the inclusion of a competition chapter, to include provisions covering antitrust, mergers, state-owned enterprises, subsidies and unequal market access, within the Transatlantic Trade and Investment Partnership agreement; calls for neutral media coverage of the measures contained in and problems and progress concerning such agreements;

96.

Recognises and supports the need of the Commission to reinforce the role of competition policy in international economic cooperation, including through cooperation with competition agencies globally; recalls that such regulatory and enforcement-linked cooperation helps ensure a level playing field for European companies active on global markets;

97.

Emphasises that international cooperation is essential to the effective application of competition law principles in the era of globalisation; calls on the Commission, therefore, to foster closer international cooperation on competition-related issues;

98.

Calls on the Commission to examine the scope for concluding competition agreements with more third countries that facilitate exchanges of information between investigating authorities; emphasises that in this regard the competition agreement recently concluded with Switzerland can serve as a model for future agreements of this kind;

99.

Highlights the provision made in the Framework Agreement for equal treatment of Parliament and the Council regarding access to meetings and the provision of information in the preparation of legislation or soft law in the field of competition policy;

100.

Highlights the essential role of the European Parliament in representing the interests of European consumers in the proper enforcement of competition rules;

101.

Welcomes Parliament’s role as co-legislator for the Directive on Antitrust Damages Actions, and considers the proceedings on this directive to be an example for future institutional collaboration in competition matters;

102.

Reiterates that in shaping competition policy the Commission must be fully accountable and must follow up Parliament’s resolutions;

103.

Calls on the Commissioner to commit to frequent meetings with the relevant committee(s) of Parliament, as well as with the Competition Working Group of Parliament’s Committee on Economic and Monetary Affairs;

104.

Considers that the EP should have codecision powers in competition policy; regrets that Articles 103 and 109 TFEU provide only for the consultation of Parliament; believes that this democratic deficit cannot be tolerated; proposes that this deficit be overcome as soon as possible through interinstitutional arrangements in the field of competition policy and corrected in the next Treaty change;

105.

Emphasises the role of the Commissioner for Competition in promoting jobs and growth, as well as the digital single market, energy policy, financial services, industrial policy and the fight against tax evasion;

106.

Urges the Commission to develop guidelines and procedures within the framework of the ECN, ensuring efficient oversight of the compliance of Member States’ tax rulings with state aid rules;

107.

Welcomes the Commission’s commitment to an effective enforcement of competition rules in the areas of antitrust and cartels, mergers and state aid, maintaining competition instruments aligned with market developments while also promoting an innovative competition culture, both in the EU and globally;

108.

Calls on the Commission to assess its handling of recent antitrust cases and address the formalistic concerns which have been raised;

109.

Calls on the Commission to draw up coordinated proposals on tax competition and to submit them to the Council;

110.

Calls on the Commission to continue reporting to Parliament, on an annual basis, on developments and effects in the application of competition policy;

111.

Welcomes the commitments made by the Commissioner during her hearing, in particular as regards future cooperation and strengthening of relations with Parliament;

112.

Calls on the Commission to do more to promote an active competition policy as a pillar of the social market economy;

113.

Takes the view that a scoreboard in the form of a casebook should be made available promptly to consumers and undertakings;

114.

Notes the continuing lack of clarity in many Member States over whether funding for European Consumer Centres is regarded as illegal state aid; is concerned that funding for such centres is being jeopardised as a result; calls on the Commission to inform the Member States as soon as possible about the need to provide notification of such funding in order to guarantee the continued support operations of the European Consumer Centres;

115.

Calls on the Commission and the Member States to ensure that the authorities at all political levels undertake to comply to the letter with the rules on state aid;

116.

Calls for a joint body, bringing together representatives of Parliament, the Council and the Commission and academics, to be set up to analyse long-term trends in and the future development of competition policy in future-oriented sectors such as the digital economy or the energy sector;

117.

Calls for an uncompromising analysis of what constitutes responsible national tax policy, in particular as regards unfair tax policies and tax arrangements and exemptions which distort competition, so that effective action can be taken against such practices in the future;

118.

Instructs its President to forward this resolution to the Council, the Commission and the national competition authorities.

30.8.2016   

EN

Official Journal of the European Union

C 316/30

—

having regard to the 2013 Annual Report of the European Central Bank,

—

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

—

having regard to Article 284(3) of the Treaty on the Functioning of the European Union,

—

having regard to Rules 126 and 132(1) of its Rules of Procedure,

—

having regard to the report of the Committee on Economic and Monetary Affairs and the opinion of the Committee on Employment and Social Affairs (A8-0011/2015),

A.

whereas, according to the Commission services’ spring 2014 forecast, GDP in the euro area fell by 0,4 % in 2013 after a decline of 0,7 % in 2012, and whereas the Commission services expect a recovery, with GDP rising by 1,2 % in 2014 and by 1,7 % in 2015; whereas the Commission services‘ autumn 2014 forecast revised growth projections downward, with GDP expected to have risen by only 0,8 % in 2014 and by 1,1 % in 2015, with prevailing downside risks;

B.

whereas, according to the autumn forecast, unemployment in the euro area rose from 11,3 % at the end of 2012 to 11,9 % at the end of 2013, and remains at a high level in 2014;

C.

whereas there are major disparities among the unemployment rates in different Member States, with figures varying between 5 % and 26 %; whereas the even higher youth unemployment rates are as much as some 50 % in some Member States; whereas the differences in unemployment rates are causing further economic divergence among Member States;

D.

whereas the success of the announcement of the Outright Monetary Transactions (OMT) programme in lowering borrowing interest rates should not be used by Member States as an opportunity to avoid structural reforms aimed at enhancing growth potential and achieving fiscal sustainability in the medium term; whereas trends in respect of employment and poverty reduction are at risk of failing to reach the Europe 2020 national targets;

E.

whereas in 2013 the European Central Bank (ECB) lowered its key interest rates in May and again in November, reducing the rate on the main refinancing operations to 0,25 %; whereas, further to the additional monetary policy measures announced since the beginning of 2014, the main refinancing rate now stands at 0,05 % and the deposit facility rate at -0,20 %;

F.

whereas lowered real interest rates have not been translating into either increased credit for households and businesses or GDP growth and job creation;

G.

whereas the consolidated financial statement of the Eurosystem reached EUR 2,285 trillion at the end of 2013, representing a decrease of approximately 25 % over the course of 2013;

H.

whereas non-marketable assets represented the largest component of assets put forward as collateral to the Eurosystem in the course of 2013, amounting to around 25 % of the total; whereas non-marketable securities together with asset-backed securities represent around 40 % of the total assets put forward as collateral;

I.

whereas, according to the Commission services’ autumn 2014 forecast, the average inflation rate in the euro area was 1,4 % in 2013, down from 2,5 % in 2012; whereas inflation in the euro area has remained on a downward path since the beginning of 2014, with an estimated level of 0,5 % in 2014 and reaching a low of 0,3 % in September; whereas the overall Harmonised Index of Consumer Prices (HICP) inflation rate in some Member States fell to 0 % and below in September 2014 and will stay below target in 2015;

J.

whereas low energy prices, particularly for oil, have been among the main contributors to the decrease in inflation rates in the euro area;

K.

whereas the level of public and private investment in the euro area has been stagnating at levels significantly below those recorded before the start of the crisis; whereas it has been common for large companies to use the environment of cheap money to undertake self-serving buybacks instead of new investments; whereas the relative share of investment as a proportion of GDP was declining steadily even before the crisis and needed to be boosted as a matter of urgency;

L.

whereas the annual growth rate of M3 has continued to slow down, from 3,5 % in December 2012 to 1 % in December 2013;

M.

whereas credit to the private sector has moved further into negative territory, with an annual rate of change of -2,3 % in December 2013, compared with -0,7 % in December 2012; whereas the lack of credit affecting SMEs in some Member States is one of the main problems delaying the economic recovery; whereas there was a drop in lending to SMEs of around 35 % between 2008 and 2013; whereas it is essential to facilitate the flow of credit to SMEs, as they employ 72 % of the euro area’s labour force and have higher gross job creation rates than large companies;

N.

whereas financial fragmentation is still a major problem, with SMEs facing much higher borrowing costs, in particular in euro area countries already affected by severe economic conditions, and this is creating distortions in the single market, slowing the recovery and amplifying the divergences between countries; whereas the results of the comprehensive assessment of European banks should have a positive impact on current monetary policies and on banks’ willingness to increase their lending activities, particularly to the real economy;

O.

whereas the size of the Eurosystem’s balance sheet declined steadily over the course of 2013, reflecting the reimbursement of long-term refinancing operation (LTRO) funds by banks;

P.

whereas the ECB Governing Council decided in July 2013 to provide forward guidance, stating that it expected the key interest rates to remain at prevailing or lower levels for an extended period of time;

Q.

whereas the effects of a possible quantitative easing in the euro area would probably be dampened by excessive credit intermediation in the banking sector;

R.

whereas Article 282 TFEU states that the primary objective of the European System of Central Banks (ESCB) is to maintain price stability; whereas Article 127 TFEU states that, without prejudice to this primary objective, the ESCB must support the general economic policies in the Union; whereas Article 123 TFEU and Article 21 of the Statute of the European System of Central Banks and of the ECB prohibit the direct purchase by the national central banks or the ECB of debt instruments issued by EU or national public authorities or bodies; whereas this was a sine qua non for several Member States to enter the economic and monetary union; whereas such purchases are allowed in secondary markets;

1.

Welcomes the ECB’s swift reaction in the face of a very challenging environment, and the fact that monetary policy has been aimed at reducing the level of stress in financial markets within the euro area, and at restoring investors’ confidence in the single currency; welcomes the ECB’s readiness to do whatever it takes to save the euro; notes the positive general reduction of long-term domestic yields — notably in the most indebted countries of the euro area — to unprecedented levels since the beginning of the crisis; notes that low yields have not resulted in job creation and growth, and that the lack thereof poses threats to financial stability;

2.

Notes that recourse to the main refinancing operations, to medium and long-term refinancing operations with full allotment at fixed rates, to the marginal lending facility, to emergency liquidity assistance (ELA) and to the deposit facility all remained at significantly high levels throughout 2013, signalling ongoing impairment of the monetary transmission mechanism and of the euro area interbank lending market, although the situation improved significantly in comparison with previous years, as evidenced by the stabilisation of spreads, the gradual normalisation of interbank markets and the reduction of Target II imbalances;

3.

Is encouraged by the stabilisation of the levels of Target II imbalances throughout 2013; emphasises that the Target II settlement system has played a crucial role in safeguarding the integrity of the euro area financial system;

4.

Remains deeply concerned at the fact that economic activity continues to be sluggish, with the euro area posting negative GDP growth in 2013, for the second year in a row, with GDP growth being weak over the first three quarters of 2014, and with high unemployment rates in many euro area Member States, reaching levels that are threatening the stability of the euro area and undermining popular and political support for the European project;

5.

Stresses its concern regarding the continuous fall in the inflation rate in the euro area since 2011, with inflation differentials between Member States; stresses the significant gap currently observed between the ECB’s explicit target of keeping inflation rates below but close to 2 % in the medium term, and the current inflation rates, which are close to zero or even below zero in several euro area Member States; is worried that, as acknowledged by the ECB President, current deflationary trends could lead to the disanchoring of medium- to longer-term inflation expectations;

6.

Acknowledges that the ongoing process of balance sheet adjustment in the financial and non-financial sectors, combined with high unemployment rates, continued to dampen economic activity in the euro area in 2013;

7.

Is observing possible deflation risks attentively; recalls that an inflation rate of close to zero in the euro area hampers the effectiveness of monetary policy; understands that the ECB considers very low inflation to be the result of short-term effects, and hopes that the medium-term objective will be met without a deflationary phase; notes, however, that inflation forecasts for 2015 and 2016 were revised further downwards (by between 0,1 % and 0,2 %) by the ECB;

8.

Points out that the below-target level of inflation expected for the coming years will have an impact on the debt reduction programmes of several Member States;

9.

Points out that, given the perspective of further accommodative policies such as quantitative easing and having in mind the current legal challenges regarding the OMT programme, it is crucial to ensure legal clarity and certainty in order to allow these instruments to be effectively implemented, bearing in mind the opinion of Advocate General Pedro Cruz Villalón of the Court of Justice of the European Union delivered on 14 January 2015 in Case C-62/14;

10.

Stresses that low borrowing costs for Member States are running hand in hand with rising public debts, close to or beyond 100 % of GDP in many cases, and warns that a new crisis could lead to a reassessment of risk by financial markets;

11.

Points out that the ECB forecasts published in 2013 had not anticipated the present conjunction of flat growth with very low inflation and even deflationary signs; calls, against this background, for the current forecasts of stronger economic growth and higher inflation in 2015 and 2016 to be read with caution;

12.

Believes that poor balance sheets not only affect banks, but also have a negative knock-on effect on businesses and other private-sector actors, given that a lack of capital and finance inhibits a business’s ability to remain competitive, grow and ultimately maintain and create jobs;

13.

Considers it of the utmost importance to create conditions for a rebound in investment in the euro area, both public and private, taking into account that despite the ECB pursuing its actions in order to maintain favourable financing conditions, investment has not yet picked up; calls on Member States, in this context, to work on the underlying causes of the financial fragmentation such as diverging risk structures that make lending more costly in the respective countries; furthermore, asks Member States to put in place appropriate structural reforms in order to restore a favourable business environment, in particular by implementing the country-specific recommendations;

14.

Encourages the ECB to consider in its balance sheet expansion policy the buying of EIB project bonds, which fund some of the more productive investments in the euro area, particularly from those projects chosen by the Commission as having European added value after a cost-benefit analysis, especially TEN-T projects in energy and transport and projects related to the digital single market;

15.

Takes note that President Draghi, in his speech at the annual central bank symposium in Jackson Hole on 22 August 2014, stated that we need action on both sides of the economy, noting the following: that aggregate demand policies have to be accompanied by national structural reforms and policies; that on the demand side, monetary policy can and should play a central role, which currently means an accommodative monetary policy for an extended period of time; that there is scope for fiscal policy to play a greater role alongside monetary policy while sustainability of public debt needs to be taken into account; and that, while a revamp of public investment is needed to trigger further private investment and facilitate structural reforms, emphasis also needs to be laid on adequate fiscal policy measures;

16.

Agrees with President Draghi that the existing flexibility within the Stability and Growth Pact rules could be used to better address the weak recovery and to make room for the cost of needed structural reforms;

17.

Agrees with President Draghi that there is leeway to achieve a more growth-friendly composition of fiscal policies and to lower the tax burden in a budget-neutral way;

18.

Agrees with President Draghi that complementary action at the EU level would also seem to be necessary to ensure both an appropriate aggregate position and a large public investment programme;

19.

Notes that in addition to the lowering of its key interest rates and the increase in its refinancing operations, the ECB has adopted innovative instruments such as targeted longer-term refinancing operations (TLTROs) and new communicating strategies such as forward guidance;

20.

Considers that the transmission mechanism is not functioning properly, and that the monetary policy tools used by the ECB since the beginning of the crisis, while providing welcome relief in distressed financial markets, cannot on their own be effective in terms of fighting financial fragmentation, stimulating growth or improving the situation on the labour market; encourages the ECB to ensure that its policies are better attuned to the real economy, in particular with regard to SMEs;

21.

Considers that, because the monetary policy transmission mechanism is severely impaired, the benefits of decisions to reduce ECB key interest rates are limited; points out that very low interest rates lead in the long term to distortions in the business sector and might prove detrimental to private savings and pension plans;

22.

Welcomes the measures announced by the ECB in June 2014 aimed at enhancing the functioning of the monetary policy transmission mechanism; notices that the TLTRO introduces, for the first time, a link between loans to the non-financial private sector granted by banks and the amount of refinancing the banks can claim; hopes that the results in the Asset Quality Review (AQR) will enhance the use of the TLTRO by European banks, hence promoting the transfer of liquidity to the real economy;

23.

Notes that the ECB has announced that it will purchase asset-backed securities (ABS) and covered bonds in order to empower the credit-easing impact of the TLTROs; stresses that such interventions on the ABS market should be significant enough to have an effect on lending rates for SMEs and reduce fragmentation, and must be conducted in a transparent manner that does not create excessive risks for the ECB’s balance sheet;

24.

Stresses its concern regarding the considerable fragmentation of lending conditions for SMEs across the euro area countries, as well as the existing gap between financing rates granted to SMEs and those granted to bigger companies; insists that these long-standing problems are not appropriately addressed by the recent measures announced by the ECB to boost bank lending, and that the ECB should study the underlying factors hindering SMEs’ access to credit; calls on the ECB to investigate whether this gap has any correlation with concentration in the banking sector;

25.

Stresses that, with the measures announced in June and September 2014, the ECB balance sheet is expected to return towards the size it had at the beginning of 2012; notes that this projected increase calls for strong vigilance by the ECB with respect to the credit risks it ultimately bears;

26.

Is of the opinion that the overall amount of implicit subsidies provided so far should be gradually recovered for the benefit of taxpayers once normal economic conditions return;

27.

Notes that the ECB has repeatedly stated its readiness to use additional unconventional instruments within its mandate, and to alter the size or composition of its interventions, in the event of an excessively lengthy period of low inflation; remains open to the use of additional unconventional measures, but underlines that these measures will not be sufficient without the right mix of fiscal policy, investment and structural reforms;

28.

Stresses that the impact on the real economy of the unconventional monetary policy measures currently in place should not be overestimated; stresses that these measures are transitory in nature and aim at giving Member States time to consolidate their fiscal situation and implement the necessary structural reforms in order to stimulate economic growth and improvements in the labour market;

29.

Notes that conducting non-standard monetary policies for an extended period of time might exacerbate the distortions on the capital market; asks the ECB to strike the right balance between the risk of exiting its accommodative monetary policy prematurely and the risks and costs resulting from the distortions that such policies might carry; asks the ECB, therefore, to calibrate non-standard policies so as to limit such distortions;

30.

Recalls that monetary policy alone cannot stimulate aggregate demand unless it is complemented by adequate fiscal and structural reforms and policies at national level;

31.

Stresses, as is illustrated by the experience of the years prior to the crisis, that stable inflation rates, in line with the medium-term rate objective defined by the ECB, might be associated with unsustainable private debt dynamics, underlining the importance of managing asset bubbles and the growth of credit even when price stability is guaranteed;

32.

Recalls that the independence of the ECB in the conduct of its monetary policy, as enshrined in the Treaties, is indispensable to the objective of safeguarding price stability, i.e. keeping inflation close to but below 2 %; recalls that all governments and national public authorities should also refrain from asking the ECB to take actions;

33.

Recalls that all members of the ECB’s General Council are committed to the decisions taken, which remain confidential unless it has been decided to make them public;

34.

Calls on the ECB to take a step backwards in its role inside the Troika, in order to reinforce its independence from political decisions;

35.

Recalls that Article 127 TFEU states that the ECB, without prejudice to its primary objective, shall support the general economic policies in the Union, as further stated in Article 282 TFEU; underlines in this respect the importance of the monetary dialogue;

36.

Stresses that a clear separation between monetary and fiscal policy implies that the monetary authority should not provide subsidies to institutions benefiting from liquidity provision, as such subsidy provision amounts to fiscal policy;

37.

Deplores the fact that the ECB has exceeded its Treaty-based mandate, as illustrated in the letters sent by the former ECB President to the Spanish, Italian and Irish governments;

38.

Welcomes the step forward taken by the ECB in deciding to publish the summary minutes of its meetings, and welcomes the beginning of this practice in January 2015; welcomes the fact that this demand, made by Parliament in all its annual ECB reports, has been acted on by the ECB’s Governing Council;

39.

Believes that central banks worldwide should work actively to avoid any policy that would generate negative spillovers on to others; notes that some central banks call on other central banks to take on board potential negative spillovers of monetary policies long after they have unilaterally implemented their own policies;

40.

Believes that the recent information that has come to light underlines the importance of a prudent use of ELA in the future; stresses that it cannot be accepted again that a Member State’s banking sector indebts itself for a substantial percentage of its GDP in this way;

41.

Encourages the ECB to keep improving its gender policy in its appointments in order to eliminate the current gap; welcomes the appointment of Danièle Nouy to head the supervision of the European Banking sector, particularly in view of her high merits and strong CV;

42.

Believes that a greater focus on growth and public investment (such as the EUR 300 billion investment package proposed by Commission President Jean-Claude Juncker) would serve to complement the ECB’s policy efforts to increase employment and growth in Europe;

43.

Welcomes the fact that the Single Supervisory Mechanism (SSM), the first pillar of the Banking Union, became fully operational on 4 November 2014; notes that this major step in European financial integration was achieved thanks to the successful completion of the preparatory work, including the AQR; thanks the ECB for using its credibility to support the European Banking System; stresses that the supervisory and monetary policy functions of the ECB must not be mixed;

44.

Notes that the AQR and the stress test conducted by the European Banking Authority (EBA) in cooperation with the SSM have revealed continuing fragilities in the European Banking System; hopes that the results have adequately taken into account all risks, in order to avoid the ‘Japanification’ of European banking and the evergreening of loans impossible to repay;

45.

Considers that the ECB has a major responsibility in ensuring that future bank recapitalisations will be carried out through the bail-in scheme when access to markets is difficult or impossible;

46.

Calls the ECB to ensure in its daily practices that there is a complete ring-fencing between monetary policy and its role as banking supervisor;

47.

Emphasises that the SSM aims at ensuring confidence in the euro area banking sector, and thus financial stability; recalls that the democratic accountability of the new SSM before the European Parliament is crucial for ensuring the credibility of the new supervisory regime; stresses, therefore, the importance of the November 2013 interinstitutional agreement between Parliament and the ECB on the practical modalities of the exercise of democratic accountability over the SSM, and of its full implementation;

48.

Supports the idea that in order to make bail-in more credible and effective, the European legislation should advance towards separating the more risky investment activities from traditional banking;

49.

Is of the opinion that the latest stress tests deliver a clear-cut illustration of the limits of the current interinstitutional setting, since a scenario of deflation was not contemplated in those tests even though such deflation risks are far from being anecdotal;

50.

Notes that, despite relatively low profitability, euro area banks have steadily continued to strengthen their capital positions through a combination of capital increases and reductions in risk-weighted assets and also public support; acknowledges that in several cases capital increases were effected in the context of financial assistance programmes from the Member States;

51.

Is concerned at the continuing dependence on central bank funding in many banks of the euro area; considers it essential to create a well-regulated Capital Market Union in order to reduce the excessive dependence of the economies of the euro zone on the banking system;

52.

Points out that consolidation of good governance in banks enhances confidence in the banking sector, thereby also contributing to financial stability;

53.

Points out that activity on government securities continues to be a major source of profit for banks of the euro area, even though credit to the non-financial private sector remains sluggish; considers that technical and legislative work on risks linked to sovereign debt should be accelerated; calls on the ECB to warn those banks that keep increasing their holdings of government bonds while decreasing credit to the private sector;

54.

Welcomes the Commission’s legislative proposal on banking structural reform; notes that similar reforms have already been introduced in several Member States; invites the ECB to collaborate with the other relevant institutions with a view to sustainable structural reform at European level that will end subsidies to trading activities of large financial institutions and will level the playing field for financial services;

55.

Recalls that the Single Resolution Mechanism (SRM), the second pillar of the Banking Union, will come into force by the beginning of 2015; stresses the need to continue developing the third pillar of the Banking Union;

56.

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

30.8.2016   

EN

Official Journal of the European Union

C 316/37

—

having regard to Article 325(5) of the Treaty on the Functioning of the European Union,

—

having regard to its resolutions on previous annual reports of the Commission and of the European Anti-Fraud Office (OLAF),

—

having regard to the Commission report of 17 July 2014 entitled ‘Protection of the European Union’s financial interests — Fight against fraud — 2013 Annual Report’ (COM(2014)0474) and the accompanying staff working documents (SWD(2014)0243, SWD(2014)0244, SWD(2014)0245, SWD(2014)0246, SWD(2014)0247 and SWD(2014)0248),

—

having regard to the OLAF annual report 2013,

—

having regard to the Activity Report of the OLAF Supervisory Committee: February 2013 — January 2014,

—

having regard to the annual report of the Court of Auditors on the implementation of the budget concerning the financial year 2013, together with the institutions’ replies,

—

having regard to the Commission Communication of 29 September 2014 entitled ‘Protection of the EU budget to end 2013’ (COM(2014)0618),

—

having regard to the Commission report of 3 February 2014 entitled ‘EU anti-corruption report’ (COM(2014)0038),

—

having regard to the Special Eurobarometer 397 Report on Corruption,

—

having regard to the Commission’s VAT Gap reports,

—

having regard to Regulation (EU) No 250/2014 of the European Parliament and of the Council of 26 February 2014 establishing a programme to promote activities in the field of the protection of the financial interests of the European Union (Hercule III programme) and repealing Decision No 804/2004/EC (1),

—

having regard to the proposal for a Council regulation of 17 July 2013 on the establishment of the European Public Prosecutor’s Office (COM(2013)0534),

—

having regard to Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and replacing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (2),

—

having regard to the Commission proposal for a directive of the European Parliament and of the Council of 11 July 2012 on the fight against fraud to the Union’s financial interests by means of criminal law (COM(2012)0363),

—

having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3),

—

having regard to its resolution of 15 September 2011 on the EU’s efforts to combat corruption (4), its declaration of 18 May 2010 on the Union’s efforts in combatting corruption (5) and the Commission Communication of 6 June 2011 entitled ‘Fighting corruption in the EU’ (COM(2011)0308),

—

having regard to Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities’ financial interests (6),

—

having regard to the United Nations Convention against Corruption,

—

having regard to the Council of Europe’s Civil Law and Criminal Law Conventions on Corruption,

—

having regard to Rule 52 of its Rules of Procedure,

—

having regard to the report of the Committee on Budgetary Control and the opinions of the Committee on Regional Development and the Committee on Civil Liberties, Justice and Home Affairs (A8-0024/2015),

A.

whereas the EU budget, to which each Member State contributes proportionately according to common objective criteria, provides support for the implementation of the Union’s policies and represents an expression of unity and an instrument to advance European integration;

B.

whereas protection of the financial interests of the EU, together with the principle of sound financial management, should guarantee that budget revenue and expenditure contribute towards the achievement of the EU’s priorities and objectives and towards increasing the confidence of citizens by assuring them that their money is being used in a transparent way, in full compliance with the aims and policies of the EU and in the interests of EU citizens;

C.

whereas the diversity of legal and administrative systems in the Member States presents a challenging environment in which to overcome irregularities and combat fraud, while any incorrect use of EU funds entails not only individual but also collective losses and harms the interests of each Member State and of the Union as a whole;

D.

whereas in order to enhance the existing measures such as the Convention on the Protection of the Communities’ Financial Interests (PIF Convention) for fighting fraud, corruption, money laundering and other illegal activities affecting the financial interests of the Union, the Commission has submitted two proposals for criminal law instruments, the PIF Directive and the Regulation on the establishment of the European Public Prosecutor’s Office (EPPO Regulation), aimed at ensuring more effective investigation and better protection of the taxpayers’ money throughout the European Area of Freedom, Security and Justice;

E.

whereas the fight against fraud, corruption and money laundering in the Union must be a priority for political action by the Community institutions, and police and judicial cooperation between Member States is therefore crucial;

1.

Takes note of the Commission report on the Protection of the European Union’s financial interests — Fight against fraud — Annual Report 2013 (the Commission’s ‘annual report’); welcomes the broad range of legal and administrative measures taken by the Commission since 2011, thus shaping a new landscape for the further enhancement of the policy for protection of the financial interests of the Union; underlines that the current insufficient results in the fight against fraud are not due to a lack of regulation but to unsatisfactory implementation; requests that the Commission respond to Parliament’s demands in its previous annual PIF reports in a more timely manner in the following Commission report;

2.

Recalls that, in the context of the economic difficulties currently being experienced in Member States and the insufficient resources in the EU budget, the protection of the financial interests of the European Union is particularly important; stresses the fact that EU funds must be properly managed and used in the most efficient way possible;

3.

Notes that in 2013 a total of 15 779 irregularities were reported to the Commission, of which 14 170 were non-fraudulent and 1 609 fraudulent, involving an overall amount of about EUR 2,14 billion, of which about EUR 1,76 billion related to expenditure, representing 1,34 % of all payments, with the remaining EUR 380 million representing 1,86 % of gross traditional own resources (TORs) collected;

4.

Notes that although the overall financial impact of non-fraudulent irregularities reported in 2013 decreased to about EUR 1,84 billion, or 38 % less than in 2012, the number of such irregularities registered increased by 16 % on the previous year; notes, furthermore, that the number of fraudulent irregularities reported in 2013 increased by a full 30 % compared with 2012, while the financial impact thereof, involving EUR 309 million in EU funding, decreased by 21 %;

5.

Notes that, due to the availability of new information as a result of the significant changes in the way Member States and the Commission report irregularities, there has been a shift in focus in the Commission’s 2013 annual report from irregularities treated in general terms to those reported as fraudulent; invites the Commission to maintain this approach in its future Annual Report on the Protection of the EU’s Financial Interests — Fight against fraud; strongly urges the Commission, however, to further increase the availability of information and enhance analyses on the scope, types and impact of non-fraudulent irregularities in light of the significantly high number thereof and the related negative monetary impact, which adversely affects the financial interests of the EU;

6.

Emphasises that it is incumbent on both the Commission and the Member States to do everything in their power to fight fraud, corruption and all other forms of illegal activity detrimental to the Union’s financial interests, in accordance with the provisions of the Treaty on the Functioning of the European Union; points out that close cooperation and coordination between the Commission and the Member States is essential in order to ensure that the Union’s financial interests are protected effectively, and hence such cooperation and coordination must, as a matter of priority, be strengthened and made as effective as possible; points out that protecting the Union’s financial interests demands an equally vigilant approach to both resources and expenditure;

7.

Notes that the overall trend in detecting and reporting potential fraudulent irregularities in the last five years shows a slow decrease but that the number of irregularities not reported as fraudulent has progressively increased; requests that the Commission examine in more detail the main underlying reasons for this increase and that it carry out an analysis that answers the question of whether the trend is due to a shift towards detecting irregular cases or to the way in which Member States classify cases;

8.

Is convinced that the criminal law means provided for in the PIF Directive will be effective only if they succeed in providing a clear definition of PIF offences, minimum and maximum imprisonment penalties applicable in all participating Member States, and minimum rules on the statute of limitations, and if these rules are then implemented equally and efficiently by all Member States;

9.

Welcomes the fact that 98 % of TORs are collected without significant problems, with reported fraudulent irregularities representing 0,29 % of gross established TORs (with a value of EUR 61 million) and non-fraudulent irregularities representing 1,57 % of TORs (with a value of EUR 327,4 million); notes that fraud and irregularity cases detected in 2013 amounted to EUR 380 million, of which a total of EUR 234 million was recovered by the Member States; notes, in particular, the fact that this recovery rate of 62 % for TORs in 2013 represents the best result achieved to date over the past decade;

10.

Is concerned that in 2013 most of the established amounts in the OWNRES database in the EU-28 are related to the ‘release for free circulation’ customs procedure for both fraud cases (93 %) and irregularity cases (87 %); calls on the Commission to take appropriate actions aimed at reinforcing the ‘release for free circulation’ customs procedure in order to make the latter less prone to occurrences of fraud and irregularity;

11.

Is concerned that in 2013 in the OWNRES database the recovery rate for fraud cases stood at only 23,74 %, a figure below the average rate of 33,5 % for the 2008-2012 period; points out that the recovery rate for irregularity cases reported for 2013 is 67,9 %; underlines, in general, the responsibility of Member State authorities and the Commission’s services towards recovering sums unduly paid and calls on them to properly assume this responsibility and substantially increase the recovery rate in cases of fraud, which is in general at a markedly low level compared to the recovery rate for non-fraudulent irregularities;

12.

Welcomes the signature of the UN Protocol to Eliminate Illicit Trade in Tobacco Products by the European Union in 2013; observes that 15 Member States have signed the Protocol, but that at present it has only been ratified by Austria; invites, therefore, the remaining Member States to complete their respective ratification process as soon as possible;

13.

Underlines the fact that the smuggling of heavily taxed goods causes significant losses of revenue to the budgets of the EU and the Member States, and that direct losses in customs revenue as a result of cigarette smuggling alone are estimated at more than EUR 10 billion a year; draws attention, moreover, to trafficking in counterfeit goods, which inflicts damage upon both the tax authorities of the Member States and EU companies;

14.

Refers to the ongoing work to improve the gross national income (GNI) data, and to the issues raised in the European Court of Auditors Special Report 11/2013, which calls for shorter, more focused verification of GNI figures and improved reporting and coordination regarding results, so that the GNI system becomes ever more reliable in its contribution to the calculation of EU revenues;

15.

Notes that inclusion of the invisible economy in national accounts should contribute to ensuring more complete and reliable GNI data, and calls on the Commission and Eurostat to deepen cooperation with national statistical institutions to ensure that this element is dealt with in a coherent and comparable way in all Member States, using the most up-to-date information;

16.

Underlines the fact that in many Member States the VAT gap is continuously high owing to VAT fraud and avoidance; emphasises that the Commission has the authority to control and supervise the measures taken by the Member States; calls, therefore, on the Commission to fully use its powers in order to help the Member States in their fight against VAT fraud and tax avoidance;

17.

Notes, furthermore, that 133 cases of smuggled cigarettes were registered by the Member States in 2013, involving an estimated TOR of around EUR 7 million; underlines that this trend represents a sharp decrease compared with 2012, where 224 cases involving around EUR 25 million were reported; is seriously concerned by the fact that Denmark, Estonia, Spain, France, Cyprus, Luxembourg, Portugal, Slovenia, Slovakia and Sweden reported no cases of smuggled cigarettes to the Commission in 2013, and questions the efficiency of the reporting process in those Member States; insists that all Member States report smuggling and counterfeiting cases to the Commission in an accurate and timely manner so as to enable a better estimation of the TOR adversely affected;

18.

Notes that the Commission will publish a study on the feasibility of a tracking and tracing system for tobacco products; underlines that this is a huge step forward in the fight against smuggling; demands that the Commission design and implement an open and competitive track and trace system, in such a way that the design and the way the system is implemented do not favour one single or only a few solution providers;

19.

Recalls that:

20.

Draws attention to the alarming 76 % increase in the number of irregularities reported as fraudulent regarding EU expenditure and urges the competent authorities to take all necessary measures to prevent such a negative trend in the coming years;

21.

Expresses concern that in the agricultural sector the number of both irregularities in general and fraudulent activities in particular increased significantly in 2013 as compared with 2012; notes that a new significant infringement trend referring to the ‘beneficiary not having the required quality’ occurred in 2013, with 51 fraudulent irregularity cases reported; considers that these trends require targeted measures aimed at on the one hand eliminating practices which may potentially lead to inadvertent infringements, and on the other hand aggressively confronting corrupt and criminal behaviour;

22.

Acknowledges that in the agriculture and rural development area, Member States recovered EUR 197 million from the beneficiaries during the 2013 financial year, while EUR 1 318,3 million remains to be recovered from the beneficiaries at year end, of which EUR 1 097,1 million is outstanding to the EU budget following the application of the 50/50 mechanism; is concerned, as recovery for the European Agricultural Guarantee Fund (EAGF) is below the overall average and not even half of the irregularities detected in 2009 had been recovered by the end of 2013;

23.

Points to the significant differences between Member States regarding their ability to recover sums lost as a result of irregular payments detected under the CAP and urges Member States with recovery rates below 33 % to improve significantly their results in 2015 and subsequent years;

24.

Acknowledges that following the 2013 reform of the Common Agricultural Policy (CAP), Member States benefit from a higher degree of flexibility in the implementation of the policy and are notably allowed to customise it to their regional or national capabilities and priorities, and to make transfers between its different pillars; calls on the Commission and the Member States to ensure that this increase in flexibility will not be at the expense of the monitoring and evaluation systems; notes further that in the framework of the new CAP the Commission is working on a simplification agenda; calls on the Commission to align the simplification agenda fully with DG AGRI’s anti-fraud strategy and to maintain a balance between simplification and the sound management of EU funds by ensuring adequate controls;

25.

Is also worried that the average delay between the occurrence of an irregularity, its detection and finally its reporting to the Commission is 6,3 years in the agricultural sector and 2,75 years in other sectors; recalls that after detection of the irregularity, further procedures kick in (recovery orders, OLAF investigations, etc.); requests that the Commission determine the average, minimum and maximum lifespan of a detected irregularity under shared management for each policy sector;

26.

Expects the significant increase of 475 % in irregularities reported in the fisheries sector in 2013 to represent a one-year peak, relating to the delayed implementation of programmes in the sector, and that it should not represent a negative trend which undermines the perception of the value of the EU’s fisheries policy;

27.

Notes with concern that in the area of cohesion policy there has been an increase of 15 % in the number of cases of irregularities reported; also notes, however, that decreases of 49 % have been noted in the amounts involved in non-fraudulent cases and 22 % in cases of fraud;

28.

Notes that 321 irregularities reported as fraudulent and 4 672 irregularities reported as non-fraudulent were cohesion-policy related; acknowledges the fact that in both categories the number of reports increased by 15 % as compared to 2012 and that, as in previous years, the largest share of amounts that involved irregularities in 2013 (63 %) is still related to cohesion policy; points out, however, that in both categories the corresponding amounts decreased, a gradual improvement based on the experience of previous years can be seen and that for the first time, cohesion policy was not the area of budgetary expenditure with the highest number of irregularities reported as fraudulent;

29.

Regrets, however, the lack of information available on the amounts to be recovered and the recovery rates specifically related to the cohesion policy for the financial year 2013; calls on the Commission to provide detailed information in this respect in its future annual report;

30.

Notes that for the expenditures under centralised management in a five-year perspective, the recovery rate is 54,4 % for irregularities reported as fraudulent and 63,9 % for non-fraudulent irregularities; urges the Commission to further improve the recovery process and to make it more timely;

31.

Calls on the Commission to assume full responsibility for the recovery of funds unduly paid from the EU budget and to establish uniform reporting principles in all Member States for the purpose of collecting the appropriate comparable and accurate data;

32.

Is concerned by the fact that for the recovery orders qualified as irregularities (both reported as fraudulent and not reported as fraudulent) issued between 2009 and 2013 under centralised management, the average delay between the occurrence of an irregularity and its detection is 3,4 years: more than half of the cases (54 %) were detected within 4 years of the year when the irregularity was committed, and for the other half (46 %) the delay varied between 4 and 13 years; recalls that after detection of the irregularity, further procedures kick in (recovery orders, OLAF investigations, etc.); requests that the Commission determine the average, minimum and maximum lifespan of a detected irregularity under centralised management;

33.

Is pleased that the number of cases reported as fraudulent pertaining to the European Social Fund in 2013 was 40 % lower than in the years 2009 and 2010 and that 2013 was the third year in a row in which this positive trend was maintained;

34.

Notes with satisfaction that for the programming period 2007-2013 administrative verifications, on-the-spot checks and audit operations led to the significantly higher rate of 63 % in the detection of fraudulent irregularities, compared with a rate of less than 20 % for the preceding seven-year period, although there was a slight decrease to 55 % in 2013;

35.

Takes note that in 2013 the Commission closed 217 cases of interruption of payment in the cohesion policy area and that 131 were still open at year-end, involving an amount of EUR 1 977 million; also acknowledges that the Commission adopted 15 suspension decisions in 2013 and two in January 2014;

36.

Acknowledges that in 2013, as part of the Pre-Accession Assistance (PAA), 33 irregularities were reported as fraudulent, involving an amount of EUR 14,4 million, and that those irregularities are mainly related to the Special Accession Programme for Agriculture and Rural Development (SAPARD); notes, in addition, that nine fraudulent irregularities involving an amount of EUR 1,2 million were reported under the Instrument for Pre-Accession (IPA); observes that between 2003 and 2013 under the PAA the recovery rates reached 37,36 % and 29,22 % respectively for irregularity cases and fraudulent cases; calls on the Commission and the IPA beneficiary countries to take action in order to ensure a higher recovery rate under the IPA;

37.

Calls for proposals to reduce the number of spending programmes, in particular when they partly overlap, and to target programmes, whenever possible, at the Member States who are most in need of support, so that not all programmes necessarily benefit activities in all Member States;

38.

Expresses its concern about the fact that several EIB-financed projects have been affected by corruption and fraud; considers that the EIB document, dated 8 November 2013, which defines the EIB policy on preventing and deterring corrupt practices, fraud, collusion, coercion, obstruction, money laundering and terrorism financing, denotes a lack of sufficient control in a number of cases during the implementation of EIB-financed projects; expresses its concern at the fact that in 2013 the EIB financed the Passante of Mestre project for a total of EUR 350 million and that, despite the fact that this project has been affected by corruption and fraud, which led to the arrest of several of the people involved, it is considering whether to refinance the project for an additional amount of EUR 700 million through project bonds; asks, therefore, that, in cases of proven fraud and corruption, the EIB be required to suspend and/or block any foreseen and ongoing financing for the affected project;

39.

Underlines its concerns as regards the persisting threats to the EU budget, which stem from both failures to comply with the rules (non-fraudulent irregularities) and purposeful wrongdoings and criminal offences (i.e. fraud); insists on enhanced cooperation between the Member States and the Commission with a view to securing relevant and adequate measures and means for avoiding and rectifying non-fraudulent irregularities and combatting fraud;

40.

Stresses that the situation in which Member States fail to submit data in time or to submit accurate data is one that has been recurring for many years; reiterates its concern that there are still different approaches in different Member States to detecting and reporting fraudulent and non-fraudulent irregularities, including in such areas as cohesion policy and agriculture, and that in some cases there are non-standardised interpretations when applying the legal framework; points out that this impedes comparisons and an objective assessment being made and recommendations being issued by Parliament, the Commission and OLAF; calls on the Commission to develop common guidelines and indicators in order to narrow the gap between the different approaches of the Member States and to develop a unified and comprehensive information bank on irregularities actually instigated and on measures taken, including cases of fraud and corruption involving civil servants, thus providing authorities and citizens with trustworthy, comparable and centralised data for the implementation of effective corrective measures, and for an objective assessment of the actual, rather than perceived, gravity of infringements and of the parties responsible;

41.

Observes that the recommendations made by the Commission to Member States in 2012 whose implementation status is reported in the Commission’s 2013 annual report — particularly on the anti-fraud coordination services, the common rules on fraud, the reform of public procurement, the reported fraudulent irregularities, and the systems of checks and controls and of risk assessment — were generally appropriate, and finds it regrettable that a number of concerns were not fully addressed; notes, for instance, that preparations were not launched by all Member States for the implementation of the multiannual financial framework (MFF) 2014-2020 and its provisions on fraud prevention; calls on Member States to follow up on the recommendations made by the Commission in 2012 and to ensure that those made to them in its 2011 report as well as in its 2013 report are followed in full, and that where action on recommendations cannot be taken they submit a reasoned explanation;

42.

Acknowledges the fact that non-fraudulent irregularities are often caused by insufficient knowledge of the rules, complex requirements and regulations; points out that modifications to the rules pertaining to both revenue and expenditure, including those aimed at simplification, require time for adoption on the part of the authorities responsible for their proper implementation; urges the Member States and the Commission, in this connection, to better coordinate the interpretation of the legal framework and the strict application thereof, to implement targeted and timely measures to strengthen administrative capacities, both in public administrations and among stakeholders, including civil society organisations, including by means of guidance and training and by establishing schemes for retaining qualified and skilled staff; calls on the EU institutions and the Member States to conduct a mid-term assessment of whether the new regulatory architecture of cohesion policy further prevents and reduces the risk of irregularities, and to evaluate the possibility of greater regulatory simplification as regards the existing rule;

43.

Considers that Member States which detect and report irregularities, including cases of fraud, on their own should be supported and encouraged to further improve their reporting and management systems; expresses concern at the Commission’s inability to establish whether or not the low number of irregularities and cases of fraud detected by certain Member States and the wide gaps in the number of cases reported for different years are due to the ineffectiveness of these Member States’ control systems;

44.

Regrets the fact that only some Member States allocate relevant resources to counter fraud and finds it unacceptable that in cases of fraudulent irregularities certain Member States limit their actions to corrective measures only without proceeding to investigate the potential criminal offence and sanction those responsible, thus failing to adequately protect the financial interests of both the EU and individual taxpayers; notes that statistics submitted by Member States regarding criminal cases and their outcome are incomplete, making it difficult to evaluate the effectiveness of fraud investigation and prosecution procedures in the Member States; considers, therefore, that the adoption of decisions which introduce criminal law responsibility at EU level, and the introduction of the European Public Prosecutor’s Office as a tool in starting and coordinating investigations into such irregularities, should represent a strong disincentive to committing illegal acts as well as to foregoing due process in pursuing and punishing corrupt or criminal behaviour which damages the financial interests of the EU;

45.

Is of the opinion that effective action against corruption is possible if criminal law measures are respected and complemented by other measures such as better transparency and accountability; insists, therefore, that Member States demonstrate firm political will in effectively countering corruption at both national and EU level by adopting effective anti-corruption legislation and by proceeding with the existing proposals at EU level, and calls upon citizens to convincingly exert pressure on governments to vigorously pursue meaningful anti-corruption policies;

46.

Welcomes the first EU Anti-Corruption Report of February 2014 as a valuable tool to monitor and evaluate efforts in the fight against corruption, and reaffirms the particular importance of intensifying exchanges of the current good practices highlighted in that report; also welcomes the Commission’s Communication on Fighting Corruption in the EU (COM(2011)0308), which explores the necessary steps to better implement the existing anti-corruption instruments and proposes ways to integrate stronger anti-corruption considerations in a number of internal and external policy areas; notes, however, the importance of extending the scope of the Anti-Corruption Report to the cross-border and EU-level element of corruption and to the assessment of the measures taken to further improve the integrity of the EU institutions, and emphasises the need for a fully comprehensive and coherent anti-corruption strategy encompassing all EU policies, that addresses, inter alia, the concerns raised in the first EU Anti-Corruption Report; requests that the Commission report to Parliament and the Council on the implementation by the EU institutions of their internal anti-corruption policies, including its obligations under the UN Convention against Corruption;

47.

Stresses the need for structured coordination between management authorities and anti-fraud bodies, and the importance of coordination and exchange of best practices between Member States and among various administrations within the same Member State in order to homogenise, as much as possible, the approach to tackling fraud; invites the Commission to create a mechanism for the exchange of information between the national competent authorities, in order to allow a crossed comparison of the accounting records concerning the transactions among two or more Member States with a view to helping to detect any transnational fraud in the context of the new MFF 2014-2020, with regard to the macro-category of European Structural and Investments Funds (European Social Fund — ESF; European Regional Development Fund — ERDF; Cohesion Fund — CF; European Agricultural Fund for Rural Development — EAFRD; European Fund for Maritime Affairs and Fisheries — EMFF), in order to ensure a horizontal approach to protecting the financial interests of the European Union;

48.

Underlines the fact that greater transparency allowing for proper scrutiny is key to detecting fraud schemes; recalls that in previous years Parliament urged the Commission to take action to ensure one-stop transparency for all beneficiaries of EU funds from all Member States by publishing on the Commission’s site a list of all beneficiaries, independent of the administrator of the funds and based on standard categories of information to be provided by all Member States in at least one working language of the Union; calls on the Member States to cooperate with and provide full and reliable information to the Commission regarding the beneficiaries of the EU funds managed by Member States; regrets the fact that this measure has not been implemented and calls on the Commission to implement it as a matter of urgency; regrets the fact that this repeated request has not been taken into account by the Commission;

49.

Calls on the Commission to promote adequate legislation on the protection of whistle-blowers, access to information and the transparency of lobbying, as these are necessary for ensuring the civic control of governments and EU institutions and subjecting their practices to public scrutiny, and to use EU funding to support the work of independent organisations in this area, inter alia to establish financial support for trans-border investigative journalism;

50.

Encourages the Commission to further enhance its supervisory role in respect of EU budget expenditure through audit, control and inspection activities, remedial action plans and warning letters preceding the submission of payments claims; calls on the Member States and their authorities to intensify their efforts and to tap their potential to detect and correct errors prior to claiming reimbursement from the Commission by making full use of the information available to them; underlines, in this regard, the particular value of preventive actions in forestalling unlawful disbursements and thus eliminating the need for subsequent actions to recover misappropriated funds;

51.

Welcomes the adoption of the public procurement directives and the directive on the awarding of concessions, and welcomes the fact that ten Member States have already introduced specific measures or sets of measures in public procurement in order to mitigate corruption and strengthen transparency and the effectiveness of management, control and audit systems; invites the Commission to proceed with the implementation of the rules on public procurement in order to provide necessary support to Member States through guidance, the sharing of best practices and training; calls on the Commission to continuously and impartially monitor the compliance of the Member States with the existing directives and start infringement procedures if necessary;

52.

Notes that the level of irregularities and fraud caused by non-compliance with public procurement rules remains high; calls on the Member States to transpose rapidly into national law the recently adopted Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement (8), Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors (9), and Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts (10), in order to further mitigate the risk of irregularities and fraud;

53.

Welcomes the establishment of the Competence Centre for administrative capacity building in support of public administrations responsible for managing the ERDF and the Cohesion Fund and the introduction of the Public Procurement Action Plan developed by the Competence Centre in collaboration with the competent Commission services; requests, however, that the Commission report on the concrete results achieved so far as a result of the centre’s activities and the implementation of the aforementioned action plan;

54.

Urges the Commission to maintain its strict policy of interruptions and suspension of payments;

55.

Welcomes the report on the implementation of the Commission Anti-Fraud Strategy (CAFS) and the guidance provided to Member States’ managing authorities on the implementation of the relevant anti-fraud provisions; insists, however, that in the delegated and implementing acts pertaining to the European structural and investment funds the Commission adopt more simplified rules, facilitating effective and efficient absorption, while ensuring that the level of the fight against fraud is not undermined by these delegated and implementing acts;

56.

Welcomes the establishment of anti-fraud coordination services (AFCOS) in Member States as required by Article 3(4) of the new OLAF Regulation and the fact that Germany reconfirmed its working cooperation arrangement with OLAF; notes that AFCOS aim to facilitate effective cooperation and the exchange of information with OLAF, and insists that Member States which have not yet designated AFCOS do so without further delay; expects that AFCOS will assist in facilitating better reporting of irregularities and contribute towards a balanced interpretation of the relevant EU acts; is nevertheless concerned by the substantial discrepancies already existing between the different AFCOS established in the Member States in terms of functions, tasks and powers as well as human resources allocated; acknowledges that the AFCOS’ mandate, institutional framework and tasks are not defined in detail in Regulation (EU, EURATOM) No 883/2013, but is of the opinion that AFCOS which are operationally independent with a comprehensive mandate including investigative powers represent a benchmark to be developed by all Member States;

57.

Acknowledges the Commission’s reporting on the results of the Hercule II Programme; takes note that in 2013 the budget of Hercule II was reduced to EUR 14 million in commitment appropriations and EUR 9,9 million in payment appropriations compared with 2012, resulting in difficulties in meeting the financial commitments made in 2013 and previous years; observes with satisfaction that Hercule II activities are the subject of increasing interest from the Member States, as demonstrated by the ever growing number of applications received following the calls for proposals; welcomes the positive results obtained in 2013, in Germany, Spain and Romania for example, thanks to the deployment of highly sophisticated and transnational compatible technical equipment purchased under the programme;

58.

Welcomes the adoption of the Regulation establishing Hercule III for the financial period 2014-2020, which allows for an increased maximum co-funding percentage for technical assistance grants of 80 % of the eligible costs, and up to 90 % in exceptional and duly justified cases, instead of the maximum of 50 % under the Hercule II Decision; notes that the first call for proposals was successfully launched in 2014; is nevertheless concerned that the programme is already particularly affected by the issue of outstanding payments, leading to possible adverse effects on funded and future projects; recalls the importance of sound financial instruments such as Pericles 2020 and Hercule III in the fight against illegal activities affecting the resources of the Union;

59.

Welcomes the successful outcomes of numerous joint customs operations (JCOs) involving the cooperation of OLAF and Member States with various third-country services, along with active support from DG Taxation and the Customs Union, Europol and Frontex, which have resulted in the seizure of, inter alia, 68 million smuggled cigarettes, 124 kg of cocaine and 140 000 litres of diesel fuel;

60.

Notes that in 2013 OLAF issued 353 recommendations for administrative, disciplinary, financial or judicial action to be taken by the relevant EU institutions, bodies, offices, agencies or the competent national authorities, and that about EUR 402,8 million was recommended for recovery; is concerned that the rate of indictment following OLAF’s judicial recommendations for the period 2006-2013 is only about 54 %; is worried, as the low rate of indictment also sheds a bad light on the quality and usability of OLAF’s investigative results; calls on the Commission to urgently improve the effectiveness of OLAF; deems that a fully-fledged and proper oversight over OLAF’s affairs by the Supervisory Committee (without interference in ongoing investigations) is indispensable, and therefore urges the Commission and OLAF to improve the current situation in which the Supervisory Committee is not able to fulfil its purpose; also regrets the lack of information available on conviction rates in cases involving offences against the Union’s budget;

61.

Takes note that in 2013 OLAF self-reportedly received the largest amount of information registered to date and claims to have issued an unprecedented number of recommendations; points out that the method for counting incoming information and issued recommendations has also been changed; asks the Supervisory Committee to analyse the effects of these data changes and the quality of recommendations issued by OLAF;

62.

Calls on the OLAF Supervisory Committee to inform Parliament about the duration of OLAF investigations and the calculation method hereto, as this method was changed in 2012; points out that this change may artificially reduce the apparent duration of investigations; asks the Supervisory Committee to closely analyse the quality of information provided by OLAF, including reports to the institutions;

63.

Notes the adoption of new working arrangements between OLAF and its supervisory committee and calls for a speedy resolution of the remaining issues between these two institutions;

64.

Instructs its President to forward this resolution to the Council, the Commission, the Court of Justice of the European Union, the European Court of Auditors, the OLAF Supervisory Committee and OLAF.

30.8.2016   

EN

Official Journal of the European Union

C 316/48

—

having regard to the European Council conclusions of 19-20 June 2003 and to the annex thereto entitled ‘The Thessaloniki Agenda for the Western Balkans: moving towards European integration’,

—

having regard to the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and the Republic of Montenegro, of the other part (1), of 29 March 2010,

—

having regard to the outcome of the EU-Montenegro Accession Conference of 16 December 2014,

—

having regard to the report from the Commission to the European Parliament and the Council of 22 May 2012 on Montenegro’s progress in the implementation of reforms (COM(2012)0222), and to the Council conclusions of 26 June 2012 deciding to open accession negotiations with Montenegro on 29 June 2012,

—

having regard to the Commission communication entitled ‘Enlargement Strategy and Main Challenges 2014-2015’ of 8 October 2014 (COM(2014)0700), accompanied by Commission Staff Working Document SWD(2014)0301 entitled ‘Montenegro 2014 Progress Report’, and the Indicative Strategy Paper (2014-2020) adopted on 19 August 2014,

—

having regard to the General Affairs Council conclusions of 16 December 2014 on the enlargement and stabilisation and association process,

—

having regard to the declaration and recommendations of the 9th Meeting of the EU-Montenegro Stabilisation and Association Parliamentary Committee (SAPC) of 1-2 December 2014,

—

having regard to its previous resolutions concerning Montenegro,

—

having regard to the work of Charles Tannock as the standing rapporteur on Montenegro of the Committee on Foreign Affairs,

—

having regard to Rule 123(2) of its Rules of Procedure,

A.

whereas Montenegro is currently the only country in the region opening and provisionally closing negotiating chapters with the EU, which is a welcome development; whereas this leading role is considered to constitute increased responsibility, both in a regional context and as far as the enlargement process as a whole is concerned;

B.

whereas each candidate country is judged on its own merits, and further progress will hinge on the efficient implementation of the country’s reform strategies and action plans;

C.

whereas sustainable dialogue and constructive cooperation between government and opposition are important in order to achieve progress in the accession preparations and to ensure citizens’ trust in the electoral process and in state institutions; whereas all political forces should remain focused on the country’s EU accession process;

D.

whereas Montenegro should further develop a solid track record as regards the rule of law, which is a fundamental prerequisite for EU accession and taking on the obligations of EU membership; whereas corruption remains a very serious concern;

E.

whereas civil society plays an important role in the process of reform and EU accession;

F.

whereas the issue of freedom of expression and the media remains of concern; whereas there were new cases, albeit reported to have decreased, of violence against the media during the reporting period; whereas the competent authorities need to improve the investigation and prosecution of old and new incidents and to create a positive atmosphere for the free and independent functioning of the media;

1.

Welcomes the progress made in the accession negotiations, noting that so far sixteen chapters, including chapters 23, 24 and 31, have been opened and two (science and research, and education and culture) provisionally closed;

2.

Encourages the continuation of the accession negotiations on the basis of implemented reforms and concrete results, delivered in particular with regard to the rule of law, the media environment and the fight against corruption; welcomes the adoption on 16 December 2014 of a number of laws in line with the Action Plan for Chapter 23; is of the view that progress in the negotiations and the improving strategic, normative and institutional framework need to be accompanied by real progress on the ground, with focus on the implementation of relevant action plans and strategies;

3.

Welcomes the further strengthening of negotiation structures, including the establishment of the Rule of Law Council; calls on the government to reinforce intra-institutional coordination and broaden interministerial consultations;

4.

Reiterates that rule-of-law-related reforms constitute the core of the European integration process and are an essential condition for progress in overall accession talks; considers that political will remains crucial for achieving and maintaining substantial progress in the fight against corruption and organised crime, which constitutes the litmus test for the independence, efficiency and professionalism of the judicial system;

5.

Notes the importance of ensuring the inclusiveness of the reform process with the active participation of civil society, in order to achieve the necessary progress in the negotiations; urges more active parliamentary oversight in this regard;

6.

Welcomes the adoption of the 2014 action plan to strengthen parliamentary oversight and of the Parliamentary Code of Ethics in December 2014; stresses the need to reinforce the capacities of the Montenegrin Parliament and to follow up on the technical report it adopted in July 2013 on the alleged misuse of public funds for party political purposes, and that judicial follow-up remains incomplete; invites the government to consider the relevant recommendations of the Montenegrin Parliament and to improve parliamentary access to the relevant information;

7.

Is concerned that the deeply polarised domestic climate has resulted in the main opposition party boycotting certain parliamentary sessions, namely Prime Minister’s Questions, and that this undermines the democratic functioning of institutions; urges, therefore, all political forces, in government and opposition alike, to focus on the country’s EU accession process and to engage in sustainable dialogue and constructive cooperation, especially within the parliament; underlines that strong political will is necessary for successful implementation and institutional strength;

8.

Invites the government to effectively implement the recommendations of the OSCE/ODIHR, the Venice Commission and GRECO on electoral rules in line with European standards and best practices, including those on the right to stand as an independent candidate, on proportional public funding to promote a level playing field for all candidates and on auditing of political parties; notes that local elections were marred by allegations of electoral wrongdoing; stresses that these should be investigated and, where necessary, prosecuted by the competent authorities;

9.

Stresses the importance of a clear separation between state and party lines; welcomes the new law adopted in December 2014 on political party financing and urges all political parties to establish a track record of its effective implementation, which should aim to significantly reduce the opportunities to misuse public funds; regrets the fact that important pieces of relevant legislation were adopted without cross-party consensus;

10.

Welcomes the Commission’s stronger focus on public administration reform in the accession process; welcomes the fact that progress is on track in this regard, but notes that further steps can be taken to improve the quality of legislation and local administration; shares concerns over the politicisation of public administration; calls for progress in enhancing the transparency, efficiency and accountability of central and local government administration and for their coordination to be improved, along with coordination among local self-governments, notably in the areas of investment, project planning and implementation; considers it essential to address shortcomings in the fields of recruitment, dismissal and evaluation criteria, the non-implementation of performance appraisals, and weak administrative, oversight and inspection capacities;

11.

Encourages further efforts to strengthen the capacities of the Ombudsman’s office concerning anti-discrimination cases;

12.

Welcomes the new judicial reform strategy for 2014-2018, noting with satisfaction that the relevant action plan has generally been implemented on time and that the new Supreme State Prosecutor has been elected; welcomes new legal measures to enhance transparency in the election of state prosecutors; notes that the progress registered in the judicial reform area facilitated the opening of four additional chapters in the Intergovernmental Conference of December 2014; encourages further efforts to monitor and further decrease the backlog of cases and the length of court proceedings, and to improve the efficiency of the constitutional court;

13.

Welcomes the progress made by Montenegro with regard to the implementation of reforms aiming to ensure the independence and increased efficiency of the judiciary; remains seriously concerned about undue influence on judicial independence, particularly in the recruitment and career development of judges and prosecutors; underlines the urgent need to improve the selection criteria for appointments and promotions and to comply with the principles of legality and proportionality in disciplinary proceedings; calls for key reform measures on the recruitment, promotion and disciplinary systems for judges and prosecutors; notes that some of these concerns are to be addressed in a package of organisational laws on the judiciary;

14.

Is concerned about the backlog of cases pending before the Constitutional Court, in particular those relating to the possible systematic violation of human rights, such as the initiative to examine the constitutionality of the Law on Misdemeanours;

15.

Is concerned that no serious efforts have been made to tackle impunity in war crime cases; encourages the competent authorities to prosecute war crime cases in a timely manner, including at the highest level; urges the competent authorities to effectively investigate, prosecute, try and punish war crimes in line with international standards, and to ensure that court rulings are implemented and that victims have swift access to justice and fair compensation;

16.

Is concerned that, despite the substantial financial resources channelled from international donors to the authorities, only limited progress has been made in combating corruption, which remains a threat to the proper functioning and stability of democratic institutions, the rule of law and economic development; calls for a more proactive role for the National Commission for the Implementation of the Strategy for the Fight Against Corruption and Organised Crime, as the key anti-corruption coordination unit; underlines the urgent need for more active participation and effective cooperation of the government, all sectors of public life and civil society in preventing corruption, and in strengthening the legislative framework and protecting whistle-blowers;

17.

Urges the authorities to enhance the capacity of prosecutors, judges, the police and other law enforcement agencies, and to develop a solid track record of investigations, prosecutions and convictions at all levels, including high-level corruption cases; welcomes the adoption of anticorruption laws, particularly on lobbying, general administrative procedure, public procurement and amendments to the laws on the prevention of conflicts of interest; calls for their effective implementation to allow for more cooperation between law enforcement agencies and to enhance the system of checks for conflicts of interest and asset declaration; calls on the Commission to closely monitor the implementation of those laws; considers it important to strengthen institutions to enable them to take a more proactive approach against corruption, and to fully involve the new parliamentary committee for overseeing the work of the Agency for Anti-Corruption, which should receive sufficient resources; stresses that shortcomings with regard to the independence and accountability of the judicial system remain a matter of serious concern and hamper the fight against corruption;

18.

Calls also on the judiciary to work in a more transparent manner in the field of corruption and organised crime cases, in particular when it comes to publishing in verdicts the names of companies, individuals and civil servants involved in such crimes;

19.

Notes that frequent legal changes may hinder the effectiveness of fighting organised crime; calls for the capacities of competent authorities to be enhanced, particularly as regards conducting complex investigations and dealing with difficult cases; welcomes amendments to the Criminal Code to prevent and monitor radicalisation and religious extremism; welcomes the new criminal law which criminalises ‘foreign fighters’, including jihadists; calls on the competent authorities to effectively implement relevant legal provisions in order to prevent and monitor any potential threat to the security of Montenegrin citizens; stresses the importance of combating all forms of extremism;

20.

Welcomes the signing of the Agreement on Strategic and Operational Cooperation between Montenegro and Europol, the progress made in the negotiations on the conclusion of the agreement with Eurojust, and Montenegrin institutions’ achievement of observer status in the relevant European judicial networks; encourages close operational cooperation with relevant European judicial bodies, including on the issue of trafficking in human beings;

21.

Notes the recent efforts to improve consultation mechanisms with civil society organisations (CSOs) in order to achieve more transparency in policy and law-making in an inclusive process; welcomes public discussions on the revision of action plans for Chapters 23 and 24; invites the competent authorities to further develop sustainable public funding for CSOs and an appropriate institutional framework; welcomes the fact that a new council for the development of non-governmental organisations has been appointed by the government; calls on the competent authorities to adjust the legal framework and practices in order to protect civil society activists against attacks and hatred reportedly propagated in certain newspapers, and build a climate in which they can work without fear or reprisal;

22.

Reiterates the importance of freedom of expression as one of the core values of the European Union; considers it essential for journalists to have full independence; is greatly concerned about the deteriorating state of media freedom and the weak professional and ethical standards among media practitioners in Montenegro; strongly deplores the fact that targeted incidents against journalists and media property continue; notes that the Government of Montenegro has set up a commission to investigate attacks against journalists; urges the competent authorities to implement the recommendations of this commission and to achieve a consistent track record of prosecutions and final convictions of perpetrators; considers it essential to have independent public service media with editorial independence and stable and sustainable financing in order to deepen democratic standards; stresses the responsibility of all those in politics and the media to nurture a climate of tolerance for different opinions; underlines that public statements in support of media freedom help create a climate conducive to respect for and protection of journalists; welcomes the agreement between media representatives to review the professional code of ethics as a first step towards improving media self-regulation; considers it necessary to adopt a clear legislative framework, which will establish rules related to media ownership and financing;

23.

Is of the view that transparent handling of the totalitarian past, including the opening up of the archives of the secret services, is a step towards further democratisation, accountability and institutional strength;

24.

Welcomes the fact that the anti-discrimination law has been almost fully aligned with the acquis; invites the authorities to address the remaining shortcomings concerning racial discrimination and the provisions on sanctions; calls on the authorities to provide all necessary financial and administrative resources to the Anti-Discrimination Council; while acknowledging some progress in the social inclusion and education of the Roma population, is concerned about high drop-out rates and the low proportion of Roma students among the total student population; calls for the fostering of initiatives which support the housing, health, education and employment of the Roma population, and the empowerment of Roma women and the education of female Roma students; welcomes the efforts of the competent authorities to protect LGBTI rights during the second Pride event, which was held without any incidents; is concerned, however, that attacks on LGBTI community members and activists are continuing; urges both political and civil society actors to fight widespread hostility and violence against sexual minorities, in particular by efforts to educate and inform the public in order to help change attitudes, and by providing training to the police, prosecutors and judges;

25.

Welcomes improvements in the legal framework with regard to the rights of persons with disabilities; notes that further actions are needed to comply with the EU acquis; urges the government to accelerate progress regarding the accessibility of buildings for people with disabilities, and considers it regrettable that the majority of state and local institutions, including the selected priority buildings (such as the parliament and courts), are still not accessible to people with disabilities; remains concerned about the high drop-out rate of students with disabilities from the education system after elementary school and after high school; notes the importance of ensuring sufficient transparency with regard to the fund for professional rehabilitation and employment for people with disabilities and its expenditure;

26.

Stresses the need to further strengthen the implementation and follow-up of child-related laws and policies, and to provide adequate capacities; calls for the quality of education for all children to be improved and for further efforts in support of vulnerable children to be pursued; highlights the importance of expanding the reform in the area of juvenile justice also to children in administrative, civil and criminal proceedings in order to promote broader access to justice;

27.

Is concerned that progress regarding women’s rights, gender equality, women’s representation in politics and on the labour market and the fight against domestic violence remains limited; underlines the urgent need, in this regard, to accelerate progress regarding women’s rights, gender equality, women’s representation in politics and on the labour market and the fight against domestic violence; calls, in this regard, for better involvement of the parliament, more structured cooperation with civil society, and the enhancing of institutional capacities, including improving cooperation between social services and law enforcement authorities; urges that the rights of victims be placed at the centre of all measures and that due diligence be exercised in preventing, investigating, punishing and providing reparation for acts of domestic violence;

28.

Welcomes Montenegro’s policies aimed at creating a climate of tolerance and inclusion for all national minorities; strongly encourages the Montenegrin authorities to further protect the multinational identity of the Boka Kotorska region and enhance its cultural and economic cooperation with neighbouring EU Member States;

29.

Welcomes the fact that freedom of thought, conscience and religion continues to be guaranteed and enforced; notes that tensions persist between the Serbian and the Montenegrin Orthodox Churches, especially on property issues; calls for the adoption of a new law on the legal status of religious communities;

30.

Encourages the government to implement sustainable economic reforms, including legal provisions on anti-competition mechanisms, to boost competitiveness and overcome structural weaknesses, to tackle the large informal sector and to improve the business environment overall; calls for the strengthening of social dialogue among the various partners; calls, furthermore, for the strengthening of capacities, including engagement in public consultations, and for economic policy formulation and coordination, also in order to reduce regional disparity; insists on the need to effectively fight tax evasion; is concerned that legal and judicial uncertainties, including licensing, tax administration procedures and contract enforcement, may entail risks for economic actors and undermine the capacity of Montenegro to attract foreign investments; underlines the urgent need to resolve commercial disputes with foreign investors that are critical to the economy of Montenegro; shares concerns about the lack of tangible improvement in the labour market situation and persistently high levels of youth and long-term unemployment, and therefore calls for active labour market measures;

31.

Notes that there is still insufficient dialogue between the two sides of industry and calls for further strengthening of the rights of those who set up new trade unions; welcomes amendments to labour law to regulate the rights of employees in the event of bankruptcy; encourages the government to accelerate the work on its first employment and social reform programme with a view to identifying and addressing Montenegro’s key challenges in employment policy, social inclusion and poverty reduction;

32.

Commends the implementation of the Small Business Act, and the fact that Montenegro has joined the EU’s Competitiveness of Enterprises and Small and Medium-Sized Enterprises Programme (COSME); calls for the public-sector support schemes for SMEs to be speeded up, as SMEs are one of the leading forces driving economic development;

33.

Continues to be seriously concerned about the delay in the resolution of the bankruptcy procedure of Montenegro’s biggest industrial manufacturer, the aluminium plant KAP, which is in breach of the country’s obligations under the Stabilisation and Association Agreement (SAA); urges the government and the parties involved to reach a sustainable solution for KAP, in compliance with SAA state aid rules and based on transparency and the rule of law;

34.

Regrets that Montenegro has ignored the injunction of the Cypriot court regarding the KAP sale, and calls on Montenegro to fully recognise relevant decisions by the judicial authorities of EU Member States;

35.

Encourages Montenegro to continue progressing in the field of environment protection and climate change by strengthening administrative capacity, developing sustainable energy policies and promoting an eco-friendly economic model that stimulates investments, in order to ensure alignment with the environmental and climate acquis; recalls the need to draft a national energy strategy which takes into account the many different renewable energy sources, and the need to respect the natural heritage and the areas under protection and international recognition; calls urgently for consultations on transboundary projects;

36.

Calls for long-term planning with regard to tourism along the coastline, and for the creation of strong mechanisms to prevent the destruction of the environment and corruption in the field of spatial planning and construction;

37.

Commends Montenegro’s proactive participation and constructive role in regional and international cooperation, and in the process of regional reconciliation; congratulates the government on having achieved full alignment with the EU’s Common Foreign and Security Policy and encourages the authorities to continue to align the country’s foreign policy position with that of the EU, particularly given the current situation of the international terrorist threat; congratulates the government on being the only EU candidate in the Western Balkans, together with Albania, to fully align with the EU’s positions and decisions on the situation in Ukraine; calls on the Montenegrin authorities to step up cooperation with international political and economic partners in order to strengthen the country’s resilience against external pressures and attempts to destabilise the country and the region; welcomes the country’s participation in EU, NATO and UN civilian and military missions;

38.

Calls on all NATO members, in particular those EU Member States which belong to NATO, to actively support Montenegro’s accession to the NATO alliance in order to provide greater security in the Adriatic, where all the other countries are already NATO members, and hence enhance regional security;

39.

Encourages Montenegro to address the outstanding bilateral issues with its neighbours as early as possible in the accession process, in a constructive and neighbourly spirit; reiterates the need to swiftly settle the still pending border demarcation and succession issues with Croatia, Bosnia and Herzegovina, Serbia and Kosovo; encourages further cooperation with neighbouring countries by sharing experiences of the accession negotiations; welcomes Montenegro’s observer status in the Energy Charter Treaty;

40.

Urges that the border issue with Croatia be resolved by mutual agreement without delay and, should a mutually agreed solution prove impossible to find, calls for the dispute to be settled in the International Court of Justice in The Hague, in accordance with the rules and principles of international law;

41.

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

30.8.2016   

EN

Official Journal of the European Union

C 316/54

—

having regard to the European Council decision of 16 December 2005 to grant the status of candidate country for EU membership as well its conclusions of 17 December 2013; having regard to the conclusions of the Council of the European Union of 16 December 2014,

—

having regard to the Presidency conclusions of the Thessaloniki European Council of 19-20 June 2003 concerning the prospect of the Western Balkan countries joining the Union,

—

having regard to the eleventh meeting of the Stabilisation and Association Council between the country and the EU, held on 23 July 2014,

—

having regard to the Commission’s Progress Report (SWD(2014)0303) and to its communication of 8 October 2014 entitled ‘Enlargement Strategy and Main Challenges 2014-2015’ (COM(2014)0700), as well as to its Indicative Strategy Paper (2014-2020) adopted on 19 August 2014,

—

having regard to UN Security Council resolutions 817 (1993) and 845 (1993),

—

having regard to the judgment of the International Court of Justice on the Application of the Interim Accord of 13 September 1995,

—

having regard to the opinion of the Venice Commission on the seven amendments to the Constitution of the country, adopted on 10-11 October 2014,

—

having regard to the findings of the OSCE/ODIHR international election observation mission carried out for the presidential and early parliamentary elections,

—

having regard to the 12th meeting of the EU-Former Yugoslav Republic of Macedonia Joint Parliamentary Committee (JPC) held on 26-27 November 2014,

—

having regard to its previous resolutions,

—

having regard to the work of Ivo Vajgl as the standing rapporteur on the country of the Committee on Foreign Affairs,

—

having regard to Rule 123(2) of its Rules of Procedure,

A.

whereas the former Yugoslav Republic of Macedonia has been an EU candidate for nine years and is the most advanced country in terms of alignment with the acquis;

B.

whereas the Commission has recommended to the Council, for the sixth consecutive time, the opening of negotiations; whereas the country is prepared to negotiate with the EU; whereas for the past eight years Parliament has called continuously for the opening of accession negotiations with the country, and whereas further delays in opening the negotiations might have a negative impact on the reform processes in the country and the credibility of the EU in the region;

C.

whereas the Council has been blocking progress to the next stage of the accession process owing to the unresolved name issue with Greece; whereas bilateral issues are not meant to obstruct the accession negotiations with the European Union; whereas the lack of progress in the EU integration process may increase the costs for regional stability, affect the EU’s credibility and lead to a decline in the country’s democratic standards;

D.

whereas this further postponement is adding to the growing frustration of Macedonian public opinion at the stalemate in the EU integration process, and risks exacerbating domestic problems and internal tensions;

E.

whereas each (potential) candidate country will be judged on its own merits, and the speed and quality of the necessary reforms determines the timetable for accession;

F.

whereas bilateral issues should be addressed in a constructive spirit as early as possible, taking into account the principles and values of the UN and of the EU;

G.

whereas the lack of constructive and inclusive government-opposition dialogue and the post-election boycott by the opposition have plagued parliamentary work; whereas it is the shared responsibility of both government and opposition to ensure sustainable political cooperation, which is essential for the country’s democratic development and the pursuit of the European agenda; whereas the elections took place under biased media coverage and in a climate of insufficient separation of state and party activities;

H.

whereas at the 12th meeting of the JPC no joint recommendation could be adopted; whereas a fully functioning JPC is instrumental in ensuring parliamentary control over the accession process;

I.

whereas the rule of law, freedom of the media, regional cooperation and good neighbourly relations are essential parts of the EU enlargement process;

J.

whereas corruption and organised crime continue to be serious problems; whereas freedom of expression and the independence of the media continue to be under threat;

1.

Reiterates, for the ninth consecutive time, its call on the Council to set a date for the start of accession negotiations without further delay, so as not to lose the momentum and in order to boost acquis-related reforms and strengthen the democratisation process; reiterates its view that the name issue, which is a bilateral issue, must not represent an obstacle to the launch of accession negotiations although it should be solved before the end of the accession process; endorses the Commission’s consideration that the failure of the parties to reach a compromise after almost two decades of mediated talks is having a direct and adverse impact on the European aspirations of the country and its people; invites both governments to take concrete steps towards finding a mutually acceptable solution; reiterates the importance and necessity of a constructive approach to challenges with neighbours on these bilateral issues;

2.

Recalls the commitment of Member States to revert to the issue in 2015 with a view to opening accession negotiations; considers that starting EU negotiations can only positively influence efforts towards resolving bilateral disputes while also generating further much-needed reforms, particularly in respect of the rule of law, the independence of the judiciary and the fight against corruption; emphasises that continuing to delay the opening of negotiations entails an increasing and unpredictable cost for the country as well as for regional stability; stresses that further prolonging the status quo undermines the credibility and effectiveness of the EU’s enlargement policy and its position in the region;

3.

Reiterates its position that bilateral issues should not be resorted to in order to hinder the accession process; considers that they should not represent an obstacle to the official opening of accession negotiations, but should be addressed as early as possible in the accession process; is mindful of the lack of compliance by one of the parties with the ruling of the International Court of Justice of 5 December 2011 on the application of the Interim Accord of September 1995; invites Greece to reaffirm its commitment made in the 2003 Thessaloniki Agenda, and to create a positive environment for settling bilateral differences in the spirit of European values and principles; calls for further progress, including in high-level contacts between the governments and in bilateral relations with Bulgaria with a view to negotiating an agreement on good neighbourly relations which would address common issues; reiterates its concern over the use of historical arguments in the current debate with neighbours, and welcomes any efforts towards joint celebrations of common historical events with neighbouring EU Member States; considers that this could contribute to a better understanding of history and good neighbourly relations;

4.

Calls for more active EU engagement on the name issue, and supports a proactive approach on the part of EU political leaders; invites the new Vice-President/High Representative (VP/HR) to develop new initiatives to overcome the current stalemate and to work, in cooperation with the UN Special Representative, towards a mutually acceptable solution; calls on the Council to conduct a thorough discussion on the Macedonian EU accession perspective in the first half of 2015; insists that all candidate and potential candidate countries should be treated in the integration process on their own merits; believes that the continuation of the High Level Accession Dialogue with the Commission would bring additional quality to the reform process;

5.

Calls on all NATO members, and especially all EU Member States which are NATO members, to actively support the accession of the country to NATO in order to achieve greater security and political stability in south-east Europe;

6.

Encourages the establishment of cross-border cooperation in the areas of history, culture and education and the promotion of European values that support efforts towards democratic changes; in that respect, calls on neighbouring EU Member States, in the spirit of good neighbourly relations, to support the willingness to introduce democratic changes, which means supporting the opening of the negotiation process;

7.

Encourages the country to establish joint expert committees with its neighbours on history and education, with the aim of contributing to an objective interpretation of history, strengthening academic cooperation, and promoting positive attitudes in young people towards their neighbours;

8.

Strongly encourages the authorities and civil society to take appropriate measures for historical reconciliation in order to overcome the divide between and within different ethnic and national groups, including citizens of Bulgarian identity;

9.

Takes note of the proposed package of amendments to the Constitution; is of the opinion that some proposals, including the provisions concerning the definition of marriage and the formation of international financial zones, could be further improved in line with the recommendations of the Venice Commission; recalls also the need to respect the European Convention on Human Rights as well as to take account of the EU acquis; stresses the need for careful preparation of the implementing legislation for any constitutional changes; emphasises that the process of long-lasting constitutional change requires broad political support, constructive dialogue and cooperation between all political forces; stresses the need for an all-inclusive public debate and careful consultation and the building of consensus with opposition parties, civil society and relevant stakeholders;

10.

Is concerned at the polarised domestic climate; urges the government to respect the role of the parliament by providing sufficient scope and time for consultations, including on constitutional changes, in the interest of enabling full, independent parliamentary control; calls on the government and on all political parties to work towards improving relations in order to maintain political stability, to ensure sustainable constructive political cooperation, and to accelerate the European agenda; recalls that compromises are fundamental for a functioning democracy; underlines the need to improve the inclusiveness and transparency of the accession process; stresses that the post-election boycott is a problem that needs to be solved in a spirit of shared responsibility between government and opposition with regard to the correct functioning of the parliament; invites the VP/HR to engage with all parties in order to facilitate political dialogue;

11.

Is seriously concerned at the worsening of relations between the government and the opposition, particularly with regard to the recent announcement of charges against the opposition leader by the Prime Minister and also to the counter-accusations of criminal wrongdoing; condemns all illegal surveillance, and calls for all allegations to be published and freely reported; calls for an independent investigation into all allegations and the surveillance carried out, on a basis of full respect for the principles of transparency, impartiality and the presumption of innocence; reiterates the importance of upholding the fundamental principle of freedom of expression; calls on all political actors to engage in constructive dialogue in order to keep the focus on the strategic priorities of the country and its citizens;

12.

Regrets the absence of the opposition in the regular work of the JPC; considers it essential to ensure the proper functioning of the JPC through the proper representation of all parliamentary parties in its proceedings;

13.

Is concerned that interethnic coexistence remains fragile and poses a challenge for the country; is concerned about rising interethnic tensions exposing the lack of trust between communities; strongly condemns the use of ethnocentric and divisive language, particularly during election campaigns; emphasises that the start of EU accession talks can help the country better address this challenge by strengthening interethnic cohesion around that common goal; condemns all forms of extreme nationalism and ethnocentrism which deepen division in society; calls on all political parties and civil society organisations to actively promote an inclusive and tolerant multiethnic and multireligious society and to protect the fundamental rights of all persons belonging to ethnic minorities; recalls that education plays a vital role in achieving tolerance and respect between different people; calls on the Commission to step up projects and programmes aimed at strengthening interethnic dialogue and mutual understanding;

14.

Welcomes the fact that the EU agenda remains the country’s strategic priority; encourages the country to further consolidate reforms and to reverse policies and practices which could still constitute obstacles for its European future, and to secure progress in the implementation of EU-related reform priorities, including in the context of the High Level Accession Dialogue;

15.

Notes that the presidential and early parliamentary elections of April 2014 were assessed by the OSCE/ODIHR as efficiently administered; shares concerns, however, over the blurred line between state and party activities, which is contrary to international obligations for democratic elections, as well as over biased media reporting and allegations of voter intimidation; welcomes the electoral reforms, but urges the authorities to investigate alleged irregularities before and during the elections; calls on the government to address all ODIHR recommendations in due time in order to improve the electoral process, including the management and accuracy of the electoral registers; also, in this regard, recalls the need to draw up electoral registers corresponding to international standards;

16.

Urges the government to address the shortcomings in the implementation of IPA assistance, such as the systemic problems of the control system, insufficient intrainstitutional and interinstitutional coordination, the backlog in procurement, the low absorption rate and the low capacity of institutions; calls for the strengthening of the link between EU assistance and national reform strategies and for IPA funds to be used to lever far greater budget decentralisation in the country; calls for action to prevent further losses of assistance and to accelerate programme implementation in order to enhance the impact of EU assistance;

17.

Welcomes the adoption of the new legislative framework for the civil service and public employment in February 2014, as a step towards providing for a unified, transparent and accountable public administration; is concerned that, despite legislative progress, the public administration remains fragmented, politicised and subject to political influence; strongly encourages it to enhance its professionalism and independence at all levels; encourages efforts to implement the law, with due respect for the principles of transparency, merit and equitable representation; invites the government to adopt a public financial management reform program;

18.

Urges the full implementation of the Ohrid Framework Agreement (OFA); calls for the completion of the review of its implementation, to result in policy recommendations; strongly recommends considering the OFA an essential element for the rule of law, inter-community relations and continued decentralisation; strongly encourages the development of local governance and the promotion of long-term confidence-building measures at the political level, such as holding public debates to explain the benefits of the OFA; calls on the government and the competent local authorities to proceed with the implementation of the Strategy on Integrated Education and to provide increased funding for that purpose; considers it important to include civil society organisations (CSOs) in the process; recommends a more proactive approach in order to ensure the ethnic, cultural and linguistic identities of all communities;

19.

Welcomes the high level of alignment with the legislative acquis and the improving efficiency and professionalism of the courts as a result of comprehensive judicial reforms; is concerned, however, about undue political influence over certain court proceedings, and emphasises that the judiciary should remain independent of all external pressures of the parliamentary and executive branches; stresses the need to ensure proper implementation of judicial standards in line with European norms and best practice; calls for the unification of jurisprudence in order to ensure a predictable judicial system and public trust; calls for improvement of the quality of justice, increased use of non-judicial remedies and alternative dispute resolution, better strategic planning, better access to justice for vulnerable members of society and more involvement of professional and civil society organisations in monitoring judicial independence;

20.

Notes the positive developments in the implementation of the 2011-2015 anti-corruption programmes, and the strengthening of the personal and institutional integrity system as well as of interinstitutional and international cooperation; notes the outstanding substantial issues related to the implementation of money-laundering legislation, including cross-border issues, the conduct of national risk assessment and improving operational efficiency; reiterates that an independent and fully functional State Commission for the Prevention of Corruption should be the leading state institution tackling this issue; in order to improve the work of that Commission, calls on the competent authorities to enhance IT interconnectivity between the courts and the prosecution service and to create a central register of public officials;

21.

Calls for the more efficient implementation of anti-corruption policies and legislation, particularly in politics, public administration, public procurement and law enforcement, as well as for the enhancement of administrative capacities; urges the country to achieve a track record for convictions in combating corruption, including high-level cases; calls on independent CSOs and media to expose corruption and champion independent and impartial investigations and trials; calls on the public prosecutor’s office to enable adequate and timely investigation of claims in this area;

22.

Notes with satisfaction that the legal and institutional framework is in place regarding the fight against organised crime; commends the country’s active regional and international cooperation, including through Eurojust and Europol; welcomes the fact that a number of successful police operations against organised groups have been carried out, in particular cutting off international routes for drug trafficking and smuggling of migrants;

23.

Condemns all forms of political and/or religious extremism and sees a need for cross-border cooperation with other Western Balkan countries and EU Member States; welcomes the changes to the Criminal Code which further define both offence and penalties for persons participating in political and/or religious extremism; strongly reiterates the need for a common proactive strategy for foreign, security and defence policy, having in view the current international terrorist threat; recalls that public policy should combat all forms of extremism, and that stigmatisation of any one religious group in this context should be carefully avoided;

24.

Regrets the lack of cooperation with CSOs and public stakeholders in lawmaking; points out that such cooperation should be based on the government’s genuine will to consult various stakeholders in both lawmaking and policymaking; stresses the crucial role that CSOs can play in raising public awareness of the accession process and making it more transparent, accountable and inclusive; encourages the government to help develop civil society in rural areas as well; calls on the government to initiate substantial debate with universities, academics and students on higher education reform;

25.

Encourages the authorities to retrieve the relevant Yugoslav secret service archives from Serbia; takes the view that transparent handling of the totalitarian past, including the opening-up of the archives of the secret services, is a step towards further democratisation, accountability and institutional strength;

26.

Is very concerned that political and financial pressures are constantly and significantly undermining media independence; deplores the continued deterioration in freedom of expression, resulting in the lowest level of press freedom in the region; regrets in this context that in the index compiled by Reporters Without Borders the country has fallen from 34th place in 2009 to 117th in 2015; notes with growing concern state control over the media, including continued dependence on the state budget, frequent resort to self-censorship, and poor professional standards and ethics; notes with concern the resort to defamation in the political and media context; while noting that some steps have been taken to restore the dialogue between government and the media community, regrets that the law on audiovisual services has been amended by a fast-track procedure without due consultation with media stakeholders;

27.

Urges the government to pursue policies enhancing media pluralism and diversity of opinion, and to guarantee the independence of the public broadcaster and the media regulator; notes with concern that the public broadcaster has displayed significant bias in favour of the governing parties, both during electoral campaigns (as reported in the OSCE/ODIHR reports) and in non-campaign circumstances (as reported in the Commission’s Progress Report); welcomes the fact that the government has made data on government advertising publicly available; calls on the government, however, to enhance the transparency of the criteria used in the allocation of funds; strongly recommends to the Commission that it be more active in monitoring and advising on policy developments and in encouraging dialogue among all media stakeholders;

28.

Reminds the government and the political parties of their responsibility to create a culture of inclusion and tolerance; calls for the anti-discrimination law to be aligned with the acquis as it does not prohibit discrimination on the grounds of sexual orientation; condemns all violence against the LGBTI community and calls for the perpetrators, including those responsible for violent incidents against the LGBTI Support Centre in Skopje, to be brought to justice; underlines the need to combat prejudices and discrimination against the Roma and to take further measures to improve their situation, particularly in the areas of housing, health, education and employment; calls on the authorities to ensure a gender perspective in all policy areas aimed at ensuring equality between men and women; reiterates its concern at the continued existence of gender stereotypes in society and at domestic violence; encourages the government to address the structural gender and pay gap in the economic, political and social fields; calls on the Commission to fulfil its own commitment to making the Employment and Social Policy Chapter a priority in the accession process, by launching an initiative in this respect in the High Level Accession Dialogue with the country;

29.

Remains concerned at the high rates of child poverty and lack of capacity of the institutions responsible for implementing policies and strategic actions in this field; urges the government to step up its efforts to implement the revised national strategy on poverty and social exclusion; urges that greater attention be paid to ensuring fair and effective access to justice for all children; stresses the need for additional efforts by the government to support children with disabilities and children from the Roma community; calls for further efforts to be made to improve children’s health and nutrition, with Roma children being a particular concern;

30.

Welcomes the fact that the country continues to be the regional leader in terms of ease of doing business, as well as its improved performance in the World Bank global ranking, in which it has risen from 31st in 2013 to 30th in 2014; notes, however, that difficult contract enforcement and frequent legal changes without adequate consultation pose serious challenges to the business climate; underlines, at the same time, the importance of making progress as regards labour law and strengthening the social dialogue; stresses the need to further improve the business environment by supporting SMEs, reducing regional disparities, and linking R&D institutions to the business and employment sector;

31.

Welcomes the fact that FDI inflows have remained stable and have allowed greater export diversification; notes that 80 % of total FDI stock originates from EU companies, with trade flows in goods and services with the EU having further increased; reiterates the importance of attracting foreign investment, and believes that the delay in the EU accession process may represent an obstacle to deeper economic integration; recognises the need to increase public revenues and create jobs in high-productivity sectors, as the overall structure of the economy remains focused on low-productivity activities; stresses that all rules covering the international financial zones should be in conformity with the acquis and with international requirements;

32.

Welcomes the reduction in the overall unemployment rate from 29,9 % in the first quarter of 2013 to 27,9 % in the third quarter of 2014; calls on the government to renew its efforts to further reduce structural and long-term unemployment, in particular among young people (for whom the rate stands at over 50 %) and vulnerable groups including the Roma; calls for the adoption of reforms to increase labour force participation and labour mobility as well as to reduce the large informal sector which continues to hamper competition; is concerned that the level of education and training of the workforce often fails to correspond to the real needs of the economy, and that a large number of young skilled workers are consequently being forced to emigrate owing to the difficulty of finding adequate employment opportunities within the country; expresses its concern at recent legislative changes that challenge the right to strike, and calls on the authorities to revise the legislation in line with ILO standards;

33.

Notes the steps taken to reduce unemployment among women, but calls on the government to do more since unemployment among women is still much higher than the EU average;

34.

Points out that significant efforts are needed, in cooperation with civil society and relevant stakeholders, in the field of the environment and in particular in the areas of air and water quality, nature protection and waste management; is concerned about air and water pollution; notes with concern the concentration of harmful particles, which is several times above the permitted limit, especially in Skopje, Tetovo, Bitola, Kičevo and Kavadarci; calls on the competent authorities to increase their cooperation with a view to implementing the relevant legislation, strengthening administrative capacities and allocating sufficient funds for investment in infrastructure such as waste water treatment plants;

35.

Regrets that the 2013 energy targets have not been met, with regard in particular to energy efficiency and the use of renewables; calls, in this regard, for adoption of the relevant action plans and alignment with EU climate policy;