7. CONSUMER POLICY
(a)
(24251)
6042/03
COM(03) 44
(b)
(24261)
6122/03
COM(03) 42
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Draft Decision establishing a general framework for financing Community actions in support of consumer policy for the years 2004-2007.
Commission Report on the implementation and evaluation of Community activities 1999-2001 in favour of consumers under the General Framework as established by Decision 283/1999/EC.
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| Legal base: | (a) Article 153 EC; co-decision; qualified majority voting
(b) —
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| Documents originated: | 31 January 2003
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| Deposited in Parliament: | (a) 6 February 2003
(b) 13 February 2003
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| Department: | Trade and Industry
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| Basis of consideration: | (a) EM of 20 February 2003
(b) EM of 28 February 2003
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| Previous Committee Report: | None
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| To be discussed in Council: | (a) 2-3 June 2003
(b) Not applicable
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| Committee's assessment: | Politically important
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| Committee's decision: | (Both) cleared
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Background
7.1 The first legal framework for expenditure on activities
to promote consumer interests and to ensure a high level of consumer
protection was provided by Decision 283/1999/EC of 25 January
1999. This set up a general framework of activities for 19992003,
and stipulated that the Commission should submit to the European
Parliament and to the Council an annual implementation report,
as well as an evaluation report on the first three years of implementation.
Decision 283/1999/EC expires on 31 December 2003.
The documents
7.2 Document (b) is the report on the implementation
and evaluation of Community activities in 1999-2001 under the
general framework. Document (a) seeks to establish a new general
framework for the period 2004-2007.
Document (b)
7.3 The report describes actions financed under Decision
283/1999/EC in the following specific areas: consumer health and
safety, protecting the legal and economic interests of consumers,
informing and educating consumers and the promotion and representation
of the interests of consumers. There are also chapters devoted
to the core funding of European consumer organisations and the
cofinancing of specific projects. An overview of evaluation
activities is provided in an Annex to the document.
7.4 In its concluding remarks, the Commission notes that
the deliberate choice to keep the scope of the Decision relatively
wide and its objectives very general has proved useful, but has
also made it difficult to evaluate the extent to which the objectives
have been met. The Decision has, however, resulted in greater
transparency in the application and allocation process. The Commission
states that any future instrument should contain a better alignment
of policy and budgetary frameworks.
Document (a)
7.5 Document (a) proposes the establishment of an enabling
framework for Community actions in support of the Consumer Policy
Strategy 20022006.[14]
The Strategy established the following objectives:
- a high common level of consumer protection
- effective enforcement of consumer protection rules
- proper involvement of consumer organisations in Community
policy making.
7.6 The proposal makes a direct link between these objectives
and the actions to be financed under the proposed Decision. It
also provides for the participation of associated countries in
these actions.
7.7 The draft Decision covers issues concerning consumer
safety related to nonfood products, consumer economic interests,
consumer education and information, the promotion of consumer
organisations at European level and their contribution to EU policies
affecting consumer interests.
7.8 The document provides for a call for proposals from
EU consumer organisations for specific projects at least every
two years, and the possibility of cofinancing up to a maximum
of 70%. Eligible projects will be required to support the objectives
of the Consumer Policy Strategy. The Commission will no longer
use the cofinancing of specific projects as an instrument
to provide support to weak national consumer organisations; instead,
it will directly finance capacitybuilding actions in support
of consumer organisations, promoting the training of staff and
exchange of best practices.
7.9 The proposal also contains specific provisions for
actions jointly undertaken by the Commission and the Member States
in the following two areas:
- financial contributions to bodies that are part of existing
Community networks set up to provide information and assistance
to consumers to help them exercise their rights and to obtain
access to appropriate dispute resolution
- actions to be developed in the area of administrative and
enforcement cooperation with the Member States.
7.10 The proposal modifies the eligibility criteria for
the financial contribution to a European consumer organisation
to clarify that organisations must be independent of industry,
commerce and other business interests, and that their primary
objective must be to promote the health, safety and economic interests
of European consumers.
7.11 The draft Decision covers the fouryear period
from 2004 to 2007. The total budget proposed for the fouryear
period amounts to _ 72 million, or _ 18 million per year, in operational
credits and _ 32 million, or _ 8 million per year, in human resources
and other administrative expenditure.
The Government's view
7.12 With regard to document (b), the Minister of State
for E-Commerce and Competitiveness (Mr Stephen Timms) tells us
that the Government supports the Commission's funding of activities
aimed at enhancing consumer protection and education. He continues:
"Decision 283/1999/EC represents the Commission's first attempt
at structuring and rationalising its spending on consumer protection
activity by European consumer organisations and on the organisations
themselves. It has considerably improved transparency in the allocation
and management of financial resources in this area where, previously,
there had been little or none.
"Nevertheless, the Commission has recognised that there is
further room for improvement, and this is reflected in its recent
proposal for a new Decision establishing a financing framework
for the period 20042007."
7.13 In her Explanatory Memorandum on document (a), the
Parliamentary Under-Secretary of State for Competition, Consumers
and Markets (Miss Melanie Johnson) says:
"The Government supports the Commission's approach to the
new legal framework, and in particular the direct link between
the objectives and priorities of the Consumer Policy Strategy
20022006 and the actions to be financed under the proposed
Decision. This means that eligible projects will need to be tightly
focussed on supporting the objectives of the Consumer Policy Strategy.
A modification of the eligibility criteria to ensure that applicant
consumer organisations must be independent of industry, commerce
and other business interests, and that their primary objective
must be to promote the health, safety and economic interests of
European consumers is also welcome."
7.14 The Government welcomes the proposal for the Commission
to provide direct finance to national consumer organisations in
order to build their capacity. This is because, under the current
framework provided by Decision 293/1999/EC, many of the bidding
and reporting requirements for funding, as part of the annual
calls for tender for specific projects, are unduly onerous —
and often a deterrent to — potential bidders."
7.15 The Minister tells us that, at present, the Greek
Presidency aims to reach political agreement on the draft Decision
at the Employment, Social Policy, Health and Consumer Affairs
Council on 2-3 June 2003.
Conclusion
7.16 It is encouraging to see a clear link between
the evaluation of activities carried out under Decision 283/1999/EC
and the new proposal. The latter builds on the lessons learned,
and its close relationship with the Consumer Policy Strategy should
ensure coherence and focus.
7.17 We clear both documents.
14 OJ
No.C 136,8.6.02. Back
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