Documents considered by the Committee on 6 November 2013 - European Scrutiny Committee Contents


19 Health for Growth Programme

(33360)

16796/11

+ ADDs 1-2

COM(11) 709

Draft Regulation establishing a Health for Growth Programme, the third multiannual programme of EU action in the field of health for the period 2014-20
Legal baseArticle 168(5) TFEU; co-decision; QMV
DepartmentHealth
Basis of consideration Minister's letter of 30 October 2013
Previous Committee Reports HC 83-iii (2013-14), chapter 9 (21 May 2013);

HC 86-xx (2012-13), chapter 9 (21 November 2012);

HC 86-iv (2012-13), chapter 10 (14 June 2012);

HC 428-li (2010-12), chapter 7 (22 February 2012);

HC 428-xlviii (2010-12), chapter 13 (25 January 2012); HC 428-xlv (2010-12), chapter 5 (20 December 2011)

Discussion in Council Formal adoption expected in November
Committee's assessment Politically important
Committee's decision Cleared

Background and previous scrutiny

19.1 The draft Regulation would establish the Health for Growth Programme with a proposed budget of €446 million for the period 2014-20 to support a variety of actions in the public health field which encourage innovation in healthcare, increase the sustainability of healthcare systems, improve the health of EU citizens and protect against cross-border health threats.

19.2 We have followed the progress of negotiations closely and agreed, in June 2012, to grant a scrutiny waiver to enable the Government to support a partial general approach on all aspects of the draft Regulation except the budget at the Employment, Social Policy, Health and Consumer Affairs Council. Since then, "trilogue" discussions have taken place between the Council, European Parliament and Commission with a view to securing an agreement before the end of 2013. Our earlier Reports[63] set out in greater detail the main elements of the draft Regulation and the Government's position.

19.3 When we last considered the draft Regulation, in May 2013, the Government told us that good progress had been made but highlighted two outstanding issues. The first concerned the Commission's proposal to allow a higher rate of EU co-financing (up to 80% of eligible costs instead of 60%) for poorer Member States (those whose gross national income per inhabitant is less than 90% of the EU average). This proposal was excluded from the partial general approach agreed by the Council but the European Parliament supports its reinsertion. The Commission was asked to develop an alternative proposal that would be acceptable to the Council and the European Parliament.

19.4 The second issue concerned the source of funding for activities to reduce drug-related health damage. Member States agreed that these activities should be included within the scope of the Health for Growth Programme rather than the Justice Programme for 2014-20, but the European Parliament had yet to reach a view.

19.5 The Government also confirmed that the European Parliament would be unwilling to seal agreement on any sectoral funding programmes (including the Health for Growth Programme) until horizontal issues, such as the number and scope of delegated acts and the size of the Programme budget, have been settled.[64]

The Minister's letter of 30 October 2013

19.6 The Parliamentary Under-Secretary for Public Health (Jane Ellison) tells us that an informal agreement has been reached with the European Parliament on a compromise Presidency text which she expects to be approved at a final trilogue negotiation on 6 November and put forward for adoption by the Council once the EU's Multiannual Financial Framework for 2014-20 has been agreed later this autumn.[65] Although the Programme budget remains subject to final approval of the Multiannual Financial Framework, the Minister expects agreement to be reached on a figure of €449.39 million in current prices for the period 2014-20. This is broadly in line with the figure of €446 million originally proposed by the Commission in November 2011.

19.7 Turning to the Commission's proposal for a higher EU co-financing rate for poorer Member States, the Minister explains that a compromise has been agreed which is intended to facilitate greater participation in EU-funded, public health-related activities. The compromise provides for a higher EU co-financing rate (80% instead of 60% of eligible costs) for actions of "exceptional utility" involving 14 countries (Member States and eligible third countries), of which at least four have a gross national income per inhabitant below 90% of the EU average. 30% of the budget proposed for the action would be allocated to these poorer Member States. The Minister considers that this compromise represents "the best achievable outcome".

19.8 A compromise has also been reached on the use of delegated acts. The Minister notes that the Government has successfully resisted the use of delegated acts to adopt the annual work programmes implementing the Health for Growth Programme. However, the Presidency compromise text empowers the Commission to adopt a delegated act, following a mid-term evaluation of the Programme, to remove one or more thematic priorities if there is little prospect that they can be implemented within the timeframe envisaged in the draft Regulation. The Commission may also adopt a delegated act to introduce new thematic priorities if the mid-term evaluation indicates that they are necessary to achieve the objectives of the Programme. The Minister suggests that the compromise avoids the use of delegated acts "for high level risk decisions, including the adoption of annual work programmes", but permits their use "where the risk to the policy and Programme concerned are considered low, and where necessary, there are measures in the legislation to mitigate and manage the risk".

19.9 Finally, the Presidency compromise text confirms that the Health for Growth Programme will support action taken by Member States to reduce drugs-related health damage.

19.10 The Minister invites us to clear the draft Regulation from scrutiny so that the Government will be able to vote in favour of the Presidency compromise text when it is brought to the Council for formal adoption later this autumn.

Conclusion

19.11 We thank the Minister for her latest progress report. We note that the Government has been unable to secure reduced expenditure for the Health for Growth Programme, as it originally intended at the outset of negotiations, but is otherwise broadly content with the outcome of trilogue discussions with the European Parliament. The final Programme budget will, in any event, be determined by the EU's Multiannual Financial Framework (MFF) for 2014-20. Once the MFF has been formally adopted by the European Parliament and Council (the timing remains uncertain), it will be necessary to proceed with some haste to ensure that the Health for Growth Programme (and other similar Programmes) are able to take effect from 1 January 2014. We therefore agree to clear the draft Regulation so that the Government is able to support its adoption once it is brought before the Council.


63   See headnote. Back

64   See our Third Report of 21 May 2013, cited in the headnote. Back

65   A copy of the compromise text has been made available to inform our scrutiny of the draft Regulation but, as it is marked limité, its contents cannot be made public at this stage. Back


 
previous page contents next page


© Parliamentary copyright 2013
Prepared 27 November 2013