Memorandum by Commissioner Wallström,
Commissioner for Institutional Relations and Communication Strategy,
European Commission
REPLY TO QUESTIONS FROM THE HOUSE OF LORDS IN PREPARATION
FOR THE EVIDENCE SESSION ON WEDNESDAY 2 JULY 2008
COM (2008)72 FINAL—ANNUAL
POLICY STRATEGY
FOR 2009
1. Will the priorities listed in the Annual
Policy Strategy make the European Union more relevant to European
citizens? How will these priorities help the Commission address
the credibility gap between the model of the EU and the public
opinion of it?
It is clearly the Commission's intention for
2009 to continue delivering tangible results on subjects that
matter to the European citizens. The major proposals made by this
Commission in the area of energy, climate change, migration and
the management of borders, transport, telecoms, the internal market
and consumer policy will have a direct, daily impact on Europeans.
Recently, proposals for a renewed social agenda for the 21st century
and the package of measures linked to the Small Business Act have
added to the list.
The Commission's policy initiatives can play
a significant role in illustrating the relevance of the EU to
citizens, but they will always be only one part of the picture.
It is essential that all the actors in the EU's system of governance—the
institutions, the Member States, public authorities at all levels—work
together to convey more effectively the realities of the EU's
objectives, actions and results.
2. Why are "Making a Reality of the
Common Immigration Policy" and "Putting the Citizen
First" key priorities for the Commission? What does "Putting
the Citizen First" mean as a priority?
Migration is currently one of the major challenges
facing the EU as a whole. In December 2007, on the basis of the
Commission Communication Towards a Common Immigration Policy
(COM(2007)780), the European Council concluded that further developing
this policy—which complements Member States' policies—remains
a fundamental priority in order to meet the challenges and harness
the opportunities which migration represents in a new era of globalisation.
The European Commission fully shares this assessment and, accordingly,
has made immigration a key priority in its Annual Policy Strategy
for 2009.
The importance of immigration for the social,
economic and political stability of the Union has been confirmed
recently in the shape of the Commission Communication A Common
Immigration Policy for Europe: Principles, actions and tools
(COM (2008)359 and SEC(2008)2026), welcomed by the June European
Council. A Common Immigration Policy is the best and in many cases
the only way to address a number of very significant problems
such as shrinking EU population and demographic ageing, labour
and skills shortages, insufficient integration of legal immigrants,
continuous pressure of illegal immigration, insufficient partnership
with third countries or insufficient adaptation of border management
and visa policy to the needs of a globalized world. This conclusion
is echoed by EU citizens themselves: according to a Eurobarometer
poll of November 2007,[1]
EU citizens consider immigration the third most important aspect
which should be emphasized by the European institutions in the
coming years, to strengthen the European Union in the future (after
the fight against crime and environmental issues).
As regards the key priority Putting the Citizen
First, it reflects the fact that one of the main objectives
of this Commission is to put the citizen at the centre of the
European project and to deliver policies which are relevant to
their everyday lives. This priority involves policies in areas
such as fundamental rights and citizenship, justice, security,
consumer protection, and health and safety, which are of direct
interest to citizens. There are naturally also overlaps with other
priorities.
3. The Commission's Annual Policy Strategy
looked forward to a lull in 2009, with the European Parliament
elections and the new Commission, and "a strong institutional
framework in place". Will the contents of the Annual Policy
Strategy have to be reconsidered in the light of the Irish referendum
result?
The Treaty of Lisbon would not in itself have
affected the timing of the institutional changeover in 2009: the
European elections and the arrival of the new Commission. So there
will be no direct consequences from the Irish referendum result
in this respect.
The Annual Policy Strategy is the first step
of the Commission's programming cycle. It aims to launch a dialogue
between the Commission and the other institutions, Member States
and national parliaments on the main policy priorities to be taken
forward next year. On the basis of this dialogue, the Commission
draws up it Work Programme in the autumn. This process also gives
a margin to react to developments right up to the adoption of
the Commission Legislative and Work Programme.
Because the ratification process was still ongoing,
the Annual Policy Strategy for 2009 took a prudent approach with
regard to the Lisbon Treaty: it did not list in detail all the
consequences of the entry into force of the Treaty or all the
initiatives flowing from it. The nature and timing of such initiatives
will clearly be subject to ongoing review.
4. If there will still be a lull, how does
the Commission want to use that time? Is it an opportunity for
focussing on better regulation and implementation?
The EU institutions do not cease to work in
the year of an institutional changeover. However, the work of
the European Parliament is interrupted for elections, and Commissions
have traditionally sought to limit the launch of new proposals
in the final months of their mandate. The Commission has sought
to table most of its major outstanding legislative initiatives
by 2008. In early 2009, the Commission will work closely with
Council and Parliament to reach agreement on the most important
pending proposals. It will focus on making sure the acquis
is being properly implemented in line with the new approach
agreed in September 2007.[2]
And it will ensure that the financial programmes agreed for the
period 2007-13 are managed effectively and efficiently and that
financial programmes relating to the 2000-06 period are brought
to a successful closure, in full accordance with the principles
of sound financial management.
The Better Regulation Programme is one key way
in which the Commission seeks to deliver results to citizens and
businesses. In 2009, the Commission will continue to strengthen
its impact assessment system and will continue to look for new
simplification potential through the on-going screening of the
existing body of legislation. At the start of this Commission's
mandate, it screened pending proposals and withdrew a large number
from consideration—the Commission intends to propose that
its successor undertakes the same exercise. In addition, the Commission
intends to present a substantial number of proposals in 2009 designed
to reduce administrative burdens. At the same time, implementation
of the Action Programme to reduce Administrative Burdens will
be reviewed and progress in meeting the 25% reduction target for
2012 will be assessed.
5. The Annual Policy Strategy calls for a
"stronger presence of the Commission in international financial
institutions". What does this mean? What in the Annual Policy
Strategy indicates that the EU will be able to make an effective
response to global financial instability?
In this section, the Annual Policy Strategy
refers to challenges to financial stability and global surveillance
mechanisms. Finance Ministers of the G7 and Commissioner Almunia
reaffirmed at their meeting in London on 9 February 2008 their
support to the International Monetary Fund working closely with
other international bodies (in primis the Financial Stability
Forum) to set up an early warning system to better detect sources
of vulnerability in the financial sector. They also expressed
their support for the Commission becoming an observer of the Financial
Stability Forum (FSF), which has been asked by the G7 to develop
responses to the lessons learned from the turmoil. Given the overlap
between this FSF work and the work programme endorsed by the ECOFIN
Council (see below), and the Commission's co-ordinating role,
an observer status in the FSF seems necessary to ensure an adequate
flow of information between the G7 and the EU.
Moreover, it should be recalled that the Commission
has observer status in the Basle Committee on Banking Supervision.
Both the Commission and the Basle Committee have benefited greatly
from this arrangement. This is illustrated, for example, by the
smooth implementation of the Basel II framework across the EU
via the Capital Requirements Directive.[3]
Against this background, active participation
of the Commission in the FSF meetings should be in the interests
of all parties. The conclusions of the March 2008 ECOFIN Council
have reiterated this position: "Considering the need to reach
a global solution for many of the outstanding issues, close cooperation
at international level is required especially with international
standard setting bodies, in particular the Basle Committee on
Banking Supervision, the International Organisation of Securities
Commissions (IOSCO), the International Association of Insurance
Supervisors (IAIS) and the International Accounting Standards
Committee (IASC), as well as the Financial Stability Forum (FSF).
The EU and EU Members States are engaged in discussions at international
level in these different fora and, should actively promote European
positions as reflected in this report. In this context, the Commission
should participate in the FSF as soon as possible".
More generally, further to the ECOFIN Council
discussions on 9 October 2007 in the wake of the financial turmoil,
the Commission has been tasked with monitoring work in a series
of areas (ie enhancing transparency, addressing valuation issues,
strengthening prudential supervision of banks, and examining structural
market issues) and with formulating and proposing appropriate
policy responses. The Commission is currently working to ensure
that the ECOFIN "roadmap" is delivered on time, including
concrete initiatives on capital requirements and credit rating
agencies.
6. What real practical effect does listing
an issue (eg immigration) as one of the Commission's priorities
have?
The practical effect of listing an issue as
one of the Commission priorities in the Annual Policy Strategy
is twofold: first, it allows the other institutions and the national
parliaments to give their opinion on these priorities and make
comments which will be taken into account when the Commission
presents its Legislative and Work Programme in October. We attach
great importance to this early dialogue on priorities for the
upcoming year. The second effect is that the Commission commits
itself to delivering on these priorities in making proposals or
taking initiatives which directly respond to the priorities identified
in the Annual Policy Strategy.
7. Is there enough consistency between the
priorities in the Annual Policy Strategy and the resources outlined
in the preliminary draft budget?
The Annual Policy Strategy constitutes the first
stage of the annual budgetary cycle and determines the framework
within which the Commission establishes the Preliminary Draft
Budget. It sets out what specific initiatives the Commission will
undertake every year in the broader context of the Commission
five-year strategic objectives, and what resources are needed
taking into account the multiannual Financial Framework. However,
many initiatives considered in the Annual Policy Strategy have
no budgetary impact.
In the Annual Policy Strategy for 2009, the
Commission proposed the following three adjustments to spending
programmes which have subsequently been confirmed in the 2009
Preliminary Draft Budget:
— The FRONTEX Agency's reinforcement
of
30 million in 2009 in order to provide sufficient
means to effectively contribute to the Common Immigration Policy;
— EU Strategy on Central Asia
with
15 million in 2009, thus reinforcing the delivery
of the objectives of the European Union in the region;
— Environment and sustainable
management of natural resources in line with the Bali Roadmap,
with
10 million in 2009, thus contributing to the EU's
objectives relating to climate change.
By confirming these adjustments in the Preliminary
Draft Budget for 2009, the Commission ensures full consistency
between the priorities of the Annual Policy Strategy and the resources
allocated in this PDB.
As announced in its Annual Policy Strategy for
2009, the Commission requested in the 2009 Preliminary Draft Budget
only the last 250 EU-2 related posts to cope with the enlarged
Union. The Commission will serve all other priorities (the other
600 needs announced in the 2009 Annual Policy Strategy) by internal
redeployment, notably to reinforce the priorities set out in its
Annual Policy Strategy for 2009, including the Lisbon strategy
for growth and jobs, enforcement of EU law, climate change, energy
and migration.
8. What responses to the Annual Policy Strategy
does the Commission receive from Member State governments, and
what does it do with them?
The Commission receives a response from Member
States assembled in the Council of Ministers (comments from the
"Antici Group" composed of representatives of all Member
States). The Commission systematically examines these contributions
in the run-up to its Legislative and Work Programme which is presented
in October each year and takes them into consideration when designing
this Work Programme.
9. What in the Annual Policy Strategy will
lead to better energy security, and what in the Annual Policy
Strategy indicates that the EU will be able to provide an effective
response to high fuel and food prices—issues of great concern
to European citizens?
On the issue of pressure created by high prices
for food and oil, the Commission has presented two communications
on these subjects (COM (2008) 321 and 384) which served as the
basis for the detailed discussions during the last European Council
on 20 June. The discussions showed the importance of finding the
right balance—of being able to demonstrate that Europe's
political leadership was responding quickly to a genuine problem,
whilst at the same time acknowledging the deeper challenge of
adjusting to new realities for the long term. Commission action
in the area of energy prices will include a package of measures
to help fishermen face the need to restructure, and proposals
on emergency and commercial oil stocks.
The European Council made clear that further
efforts to improve energy efficiency and energy savings and efforts
to diversify the EU energy supply remain essential in response
to rising prices. It is therefore important to agree on the proposed
EU policy for climate change and renewables, which would include
policies that reduce oil and gas consumption in the longer term—and
therefore increase energy security. It is also important to promote
competition in the energy markets, and to enhance dialogue with
oil exporting countries, in order to improve the framework conditions
for investment in oil exploration and production, as well as in
oil refining capacity. The European Commission and the incoming
French presidency of the EU were also asked to examine the feasibility
and impact of measures to smooth the effects of the sudden price
increases, and will report back on this issue at their next meeting
in October. The Commission will also monitor both food and oil
price developments both in Europe and internationally and will
report to the European Council in December this year. The European
Commission is also working on the external aspects of energy security
and intends to feed in ideas ahead of a discussion planned by
the French Presidency at the European Council in December.
The Annual Policy Strategy for 2009 already
includes many actions along these lines. Key actions for 2009
are the agreement on and implementation of the climate change
and renewables package in the run-up to the UN climate change
meeting in Copenhagen, the implementation of the Energy Efficiency
Action Plan, the further boost of new energy technology development
(including its financing), the extension of the Energy Observatory
in charge of monitoring of main indicators of energy supply. Furthermore,
the Second Strategic Energy Review to be tabled by the end of
this year will address energy security issues. It will examine
the need for better oil, gas and electricity interconnections
within the EU and for diversification of sources and routes of
supply; the need for gas storage and better oil stock mechanisms;
the development of new technologies such as Carbon Capture and
Storage and related infrastructure and finally the need to implement
a common voice in our relations with third countries with the
appropriate mechanisms. The Second Strategic Energy Review and
supporting documents (Green Paper on trans-European energy networks,
oil stocks directive, and security of gas supply report) should
be discussed under the French and the Czech Presidency to help
design a new Action plan for the period 2010-14 to be agreed at
the European Council of March 2010.
10. Can you explain the motivation behind
the proposal that the fisheries and aquaculture Common Market
Organisation should be reformed? Will the initiative provide an
opportunity to make further progress on the eco-labelling of fisheries
products?
The current common market organisation (CMO)
laid down in Council Regulation (EC) No 104/2000 is undergoing
a comprehensive evaluation process which aims at assessing the
effectiveness, efficiency, coherence, relevance and suitability
of both the constituent parts of the CMO and the intrinsically
related activities such as supply policy, consumer policy and
international trade. Further to this, the evaluation of the financial
instruments of the CMO is an obligation placed upon the European
Commission under the terms of the Financial Regulation.
The evaluation consists of a series of studies
which will be completed by the end of 2008. In addition, the Commission
envisages a broad consultation of stakeholders so that they can
provide input to the evaluation process. In the light of the results
of the evaluation, the Commission may envisage proposals for a
reform and revision of the CMO. It would be premature to speculate
on what form these changes might take.
As regards eco-labelling, the Commission is
moving forward independently of the above CMO review on the basis
of the Council Conclusions of 16 April 2007. Following a period
of reflection on the best approach the Commission plans to put
forward a proposal for a new Public/Private Partnership in early
2009 to stimulate the creation of a sector-driven European standard
for both wild fisheries products and aquaculture. This may or
may not include EU legislation to establish the overall framework.
European stakeholders (professionals, NGOs, independent and possibly
national Eco-label schemes and consumer representatives) will
be invited to participate. The entity would produce the minimum
EU requirements for Eco-labels and provide the minimum principles
for certification and accreditation which would remain Member
State competence. The aim is to have a scheme based on a real
partnership with industry and civil society which will be responsive
and easily adaptable to the needs of industry (from fishermen
to retailers) but take account of civil society aspirations.
11. The Annual Policy Strategy contains little
detail of the Commission's 2009 criminal and civil justice programme.
What progress is expected in achieving the outstanding objectives
of The Hague Programme in 2009 and what are likely to be the priorities?
Why does the Annual Policy Strategy not provide more information
on the Commission's plans in this area?
The objective of the Annual Policy Strategy
is to set out the broad policy outlines for next year. It does
not set out in detail the precise nature and timing of individual
initiatives for 2009. These will ultimately depend on a series
of factors, including reactions and comments made by the other
institutions, national parliaments and stakeholders, and the result
of public consultations and impact assessments which the Commission
undertakes on its major initiatives. The Annual Policy Strategy
is a transparent way of flagging the Commission's intentions for
a given year. Further details on individual initiatives will be
presented at a later stage, when the Commission draws up its Work
Programme for next year.
The Annual Policy Strategy for 2009 mentions
several initiatives in the area of civil justice (Modernising
the Brussels I Regulation on jurisdiction, recognition and enforcement
of judgments in civil and commercial matters, Green paper on the
legalisation of documents in the EU and Communication on the attachment
of bank accounts). Besides these initiatives, the Commission will
work on the following issues:
— A proposal for a Regulation
on the conflict of law in matters concerning matrimonial property
regimes, including the question of jurisdiction and mutual recognition,
is being considered for adoption by the Commission by the end
of 2009. This would be a follow-up to the Green Paper presented
in 2006.
— In December 2008 the Commission
will probably present a Report on the application of Council Directive
2004/80/EC of 29 April 2004 relating to compensation to crime
victims. The report will assess the application of the Directive
and evaluate it as an instrument to facilitate access to justice.
This report, followed by a corresponding impact assessment and
public consultation, may lead to a proposal to amend Directive
2004/80/EC, in particular to improve access to compensation in
cross-border situations.
— The Commission will also follow
up on the consultation launched by the Green Paper on transparency
of assets presented in March 2008. Based on the results of this
consultation, an impact assessment will be carried out in 2009
which may lead to a possible initiative at a later date.
As concerns criminal justice, the Commission
is currently conducting a review of the implementation of mutual
recognition in criminal matters, which may lead to a Communication
in spring 2009. In parallel, the Commission is reviewing the implementation
of some sectoral instruments, including the Framework Decision
on Freezing Orders, the Framework Decision on the standing of
victims in criminal proceedings and the Framework Decision on
the application of the principle of mutual recognition to financial
penalties. The results of these reviews will be published by end
2008.
12. The Annual Policy Strategy looks forward
to a "Communication on sectoral social dialogue and its contribution
to the Lisbon Strategy" in 2009. Why could this issue not
be considered in the context of this year's Social Agenda?
The proposed Communication on sectoral social
dialogue has its origin in the Commission Communication of 20
May 1998 Adapting and promoting the social dialogue at Community
level (COM (1998) 322) which created the current system of
sectoral social dialogue committees through a Commission Decision
(Annex II of the Communication). The system has expanded considerably,
particularly in recent years. From the original nine committees,
there are now 35 in operation and three in preparation, one of
which will be launched on 1 July (Football). The Commission Decision
provides for any review of the functioning of the Sectoral social
dialogue to be carried out in close collaboration with the Social
Partners. The Commission and the Social Partners consider that
the experience gained to date with the sectoral social dialogue
is sufficient to give a good basis for this review. A detailed
examination of the functioning of the Sectoral social dialogue
is therefore being launched now and the results of this consultation
will only be available in the first half of 2009, which would
allow the presentation of the communication in the second half
of 2009.
It should be noted that there will already be
a considerable social dialogue element in this year's Social Agenda
package, with two significant documents. The Commission's report
on the implementation of the Social Partners' Telework Agreement
will present, for the first time, an analysis of the way in which
an autonomous agreement of the European Social Partners has been
implemented at national level. The Commission will also present
a paper on the role of transnational company agreements, which
are a major new element in promoting cross-border social dialogue.
13. Why is there no reference to the European
Security Strategy in the Annual Policy Strategy?
While it is true that there is no explicit reference
to the European Security Strategy in the Annual Policy Strategy
for 2009, the text is referring in several instances to security
issues and the Union's contribution to promoting international
security and stability. It underlines the importance of energy
security, climate change and migration as important guiding themes
in external policy serving to strengthen the Union's commitment
to effective multilateralism. The lack of a more specific reference
is mainly due to the fact that, according to the conclusions of
the European Council in December 2007, an improved and complemented
European Security Strategy is scheduled for adoption already at
the end of 2008. The Commission, which is fully associated in
proposing elements to improve implementation and complement the
Strategy, believes that this objective is both desirable and realistic,
and is working effectively to support achieving it.
14. The Annual Policy Strategy looks forward
to savings of
20 million for large-scale IT systems (SIS II,
VIS and EURODAC). How will these savings be realised?
The financial programming concerning the large-scale
IT systems (SIS II, VIS and EURODAC) was prepared in 2005 on the
basis of best estimates and taking into account the level of prices
in 2005. Certain actions initially foreseen in 2009 will not be
carried out as they are not on the political agenda and/or no
legal basis is available (passport database, various studies,
and projects in the domain of border management). In addition,
the development of the Biometric component of the VIS, the so-called
BMS, is based on reviewed tariffs that have been decreasing taking
account of the evolution of service prices in the IT sector.
The reduction, as presented in the Annual Policy
Strategy for 2009, has absolutely no impact on the development/maintenance
of the SIS II, VIS and EURODAC systems, which continue as planned.
15. The Annual Policy Strategy states that
spending on the Competitiveness for Growth and Employment and
the Cohesion for Growth and Employment sub-headings will increase
by 5.8% and 3.3% respectively. How will these funds be used?
The increases foreseen in the 2009 Annual Policy
Strategy for Sub-Heading 1a (Competitiveness for Growth and Employment)
and Sub-Heading 1b (Cohesion for Growth and Employment) are in
line with the medium-term financial programming of the different
programmes and, therefore, fully coherent with the multiannual
Financial Framework.
These increases have largely been confirmed
by the Preliminary Draft Budget 2009:
— in Sub-Heading 1a the increase
mainly results from a rise of Commitment Appropriations in the
areas of research (+10.4% to €6.7 billion in 2009 for the
Seventh Research Framework Programme), competitiveness and innovation
(+17.2% to 483 million in 2009 for the Competitiveness and Innovation
Programme—CIP) and education and training (+6% to 1.06 billion
in 2009 for Lifelong Learning programme and Erasmus Mundus programme);
and
— in Sub-Heading 1b the increase
is mainly determined by a rise of commitment appropriations in
the area of Regional policy (+ 14 % to 9.3 billion in 2009 for
the Cohesion Fund and + 3.8% to 22.4 billion for the Convergence
Objective of the European Regional Development Fund).
16. What will "work on a renewed VAT
Strategy" involve?
The work on a new VAT strategy will be inspired
in particular by the following aspects:
— the adoption of the VAT package
by the Council in February 2008 has fully endorsed the approach
to tax services in the place of final consumption; the major simplification
proposal, the One Stop Shop has, however, not yet been accepted
in its large conception; the further developing of this approach
will therefore need to be one of the elements reflected;
— the debate on VAT fraud: it
has shown that the VAT system is somewhat vulnerable and further
work needs to be undertaken to define new approaches or working
methods (like real time information of tax administrations) to
provide for better protection; and
— the ongoing debate on reduced
VAT rates and their use for other policy purposes (environment,
energy saving, energy price smoothening etc) calls for a broad
reflection on the possible evolution of this tax.
30 June 2008
1 http://ec.europa.eu/public_opinion/archives/eb/eb68/eb68_first_en.pdf Back
2
COM(2007) 502, 5 September 2007. Back
3
Directive 2006/48/EC of the European Parliament and of the Council
of 14 June 2006 relating to the taking up and pursuit of the business
of credit institutions (OJ L 177, 30 June 2006, p 1-200) and Directive
2006/49/EC of the European Parliament and of the Council of 14
June 2006 on the capital adequacy of investment firms and credit
institutions (OJ L 177, 30 June 2006, p 201-255). Back
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