Tag Archives: European Commission

Commission Proposal for the New Multiannual Financial Framework 2014-2020

The Commission has put forward its proposal for the new Multiannual Financial Framework of the European Union for the period 2014-2020. The Multiannual Financial Framework is the main budgeting document of the EU for the seven-year period, and little can be changed once it is adopted. The proposal has to be approved by the Member States and the Parliament.

The main innovations:

1. Expenses

  • A new fund for financing infrastructure, the Connecting Europe Facility that includes a preliminary list of transport, energy and ICT projects;
  • Stronger link of cohesion financing with the Europe 2020 objectives;
  • New category of ‘transition regions’;
  • New conditionality provisions;
  • Partnership contracts with each Member State to ensure mutual reinforcement of national and EU funding;
  • An integrated programme of €15.2 billion for education, training and youth, with a clear focus on developing skills and mobility;
  • A common EU strategy called “Horizon 2020” for investment in research and innovation worth 80 billion €;
  • 30% of direct support to farmers will be conditional on “greening” their businesses;
  • €4.1 billion for the fight against crime and terrorism and €3.4 billion for migration and asylum policies.

2. Revenues

  • New own resources for financing the budget- a financial transaction tax (Tobin tax) and a new modernized VAT;
  • Simplification of the existing correction mechanisms.

You can also read the critical assessment of the proposal by Charlemagne. Real Time Brussels looks at the fierce political battles that will likely emerge in the process of adoption of the Multiannual Financial Framework.

 

Corrupted Politicians, Beware! EU is Watching You!

The Commission has proposed a set of measures to address the harm that corruption causes to European societies. The Commission is setting up a new mechanism, the EU Anti-Corruption Report, to monitor and assess Member States’ efforts against corruption and encourage more political engagement. Supported by an expert group and a network of research correspondents, and the necessary EU budget, the Report will be managed by the Commission and published every two years, starting in 2013. It will identify trends and weaknesses that need to be addressed, as well as stimulate peer learning and exchange of best practices.

How effective will the report be? It’s a very good sign that the EU will have a more focused approach towards diagnosing serious corruption in Member states. But it’s far from certain that ample treatment will follow the diagnosis. If we consider the experience with the reports under the Cooperation and Verification Mechanism for Bulgaria and Romania, it appears that the Commission reports stir a lot of emotions and produce fewer practical results.

Any effort to independently monitor corruption levels in any Member state should be commended. The Commission should also consider benefiting from the existing monitoring mechanisms set up by Transparency International and OECD.

 

 

Commission’s Vision on EU Borders and Migration

By now you must have heard that the Mediterranean Member States are experiencing some serious difficulties in managing the wave of new migrants from North Africa. The governments of Italy and France have stepped in and suggested temporal reintroduction of border controls due to the migrant wave. Now the European Commission has issued its own Communication on migration.

The Commission notes that the EU is not fully equipped to help those Member States most exposed to massive migratory movements. That is why it believes that the feasibility of creating a European system of borders guards should be considered. The Commission also recommends adopting a risk-based approach and ensuring greater use of modern technology at land as well as sea borders.

The Commission advocates for a mechanism that would allow the EU to handle situations where either a Member State is not fulfilling its obligations to control its section of the external border, or where a particular portion of the external border comes under unexpected and heavy pressure due to external events. The mechanism should be used as a last resort in truly critical situations.

The Commission also calls for the incorporation of enhanced readmission obligations into the framework agreements concluded with third countries.

One important claim of the Commission is that a European entry-exit system would ensure that data on the crossing of the border by third country nationals would be available for border control and immigration authorities.

The Commission intends to present by 2012 a Green Paper on addressing labour shortages through migration in the EU Member States.

In general the Commission says that the EU should step up its efforts to address the drivers of migration with a special focus on employment issues, governance and demographic developments.

The Communication on migration is a well prepared and consistent document, but it remains to be seen how Member States will act on it.

Why Reforming Schengen is Not That Easy

France and Italy have signaled their desire to push for a reform of the Schengen framework for border control. One of the most important proposals is the procedural right to temporarily re-establish border controls between two countries. The European Commission is scheduled to present its own plans for amending the Schengen rules next week (4 May).

The Schengen border security legal framework is now part of the EU acquis. Any revision of the Schengen framework goes through a codecision procedure, where the European Parliament is a co-legislator with the Council (see art. 77, para. 2 TFEU). More, the Commission is the only body that can propose legislation on border checks, asylum and immigration (see a contrario art. 76 TFEU). Whatever France and Italy propose is of no relevance; the Member States do not have a right of initiative on these matters.

On all these accounts I am quite skeptical that Italy and France will succeed to push an amendment of the Schengen framework that seriously undermines the principles of the current regime. Any significant policy overhaul must be accompanied by a careful impact assessment and discussions not only among governments of Member States, but also with relevant stakeholders. It will take more than a bilateral summit to do that.

The New Comitology Regulation is Published

Regulation (EU) No 182/2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers has been published in the Official Journal. It repeals Decision 1999/468/EC (the old ‘Comitology Decision’). There are now two comitology procedures – the advisory procedure and the examination procedure. The advisory procedure is the same as in the old Comitology Decision. The examination procedure replaces the management and regulatory procedures. The examination committee can approve or reject the implementing measure with qualified majority (the same voting rules as in the Council apply). In case no decision is taken, depending on the subject matter of the implementing measure, the Commission can either adopt the measure or submit it to an appeal committee, where new, final voting takes place.

All the legal and institutional issues on delegated lawmaking and the new comitology regime are reviewed in my new paper for the EUSA conference.

 

 

Political Compromise on New Comitology Regime

This is a very special day. The European Parliament has confirmed today the agreement with the Council on the new regulation on implementing powers for the Commission. This new regulation, will enter into force on 1st March and will automatically replace the existing system.

As in the past, the mechanism of control foreseen by the regulation is based on “comitology” – i.e. committees composed by representatives of Member States to which the Commission submits draft implementing measures – but, contrary to the present system, there can be no intervention from the Council as an appeal body. In some specific cases there might be a need to go to an “appeal committee”, but this is just a “normal” committee, chaired by the Commission, albeit of a higher level of representation. It provides the opportunity to reconsider the draft measures or to r make changes if need be.

The regulation foresees that implementing measures in policy areas such as trade defence measures will be included in the normal regime. Until now these measures were submitted to special procedures in which the Council frequently had the last word.

The new procedures also give more flexibility to the Commission and a greater political responsibility. In the absence of a qualified majority against or in favour of a Commission draft implementing act, the Commission will have the choice between adopting the act or reviewing it.

I am currently writing an article on the new legal regime of comitology, which will be available on this blog somewhere in February 2011.

Whither New Stress Tests for European Banks?

The European Commission is calling for new stress tests for European banks. The reason? Well, it appears that the previous stress tests during the summer failed to spot huge problems at the heart of Ireland’s financial institutions.

Oli Rehn is quoted saying that Ireland’s banking meltdown was a one-off case that would not be repeated elsewhere in Europe. Well, I disagree.

Back in July I noted that stress tests must also include really worst-case scenarios, as in worst-case scenarios. Worst, not best. And all of them. We know that summer stress tests failed to do that. Now we are led to believe that the new stress tests will do the job. That is unlikely.

The problem is analyzed very well by Richard Field. He claims that there is only one way to restore trust and erect a firewall against contagion. Governments must make the statement about which banks are or are not solvent in their system and make the asset-level data available to support it.