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 EU Lisbon Treaty
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Lisbon Treaty ratification process: By 21 February, the Lisbon Treaty had been ratified already by Hungary, Romania, Malta, Slovenia, and France. The European Parliament voted in favour of the Lisbon Treaty by a large majority, on 20 February, endorsing a report saying the new document will make the EU more democratic, give EU citizens more rights and improve the day-to-day working of the Union. The ratification is still on hold in the Slovak Republic since opposition parties refused to ratify the Treaty, unless the government withdrew a media law. As three-fifths of parliamentary votes are necessary for ratification, it was decided to delay a fresh ratification vote in the Slovak Republic until the media law is discussed in March.
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Social Europe
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European Youth Pact: EU Education and Youth Ministers, meeting on 14 February, recommended that the European Council should highlight the following issues in the new cycle of the Lisbon Strategy for 2008-2010: youth employment, participation in education and training and the social integration of young people; particular attention should be paid to young people with fewer opportunities; efforts should be maintained to develop the youth dimension, based on a cross-sectoral approach and youth empowerment, in the governance of the Lisbon Strategy.
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Education: EU Education Ministers adopted a report entitled 'Delivering life long learning for knowledge, creativity and innovation' on 14 February, pointing out three areas needing particular efforts: raising skills levels, implementing of lifelong learning strategies and strengthening the knowledge triangle (education - research - innovation). Following these conclusions, the ministers recommended that the European Council should take account of the following priorities in the new cycle of the Lisbon Strategy 2008-2010: implementation of lifelong learning strategies; knowledge triangle, emphasizing in particular the crucial role of education and training in promoting creativity and innovation; intercultural dialogue, underlining the importance of equipping individuals with the competences needed to engage in such a dialogue; transnational mobility, which should become common practice in higher education and be developed further in the field of vocational education and training.
| | Recognition of qualifications: The European Council adopted a recommendation of the European Parliament and of the Council on the establishment of a European qualifications framework for lifelong learning, which aims to provide a common language to describe qualifications, thereby increasing transparency, improving comparability and facilitating the recognition of different qualifications acquired under the various EU education and training systems.
| | Flexicurity: The establishment of a "Flexicurity Mission" was announced in the last informal Labour, Employment and Social Affairs informal Ministers meeting. The mission will visit four or five Member States, and discuss indepth the state of play as regards the development and implementation of the national pathways based on the common Flexicurity principles, agreed at the European Council in December 2007. The findings of the mission will be published on a Commission website and will be presented in December 2008. The findings of the mission will be published on a Commission website and will be presented in December 2008. The members of the mission are the following: Vladimir Spidla, Commissioner for Employment, Social Affairs and Equal Opportunities; Gérard Larcher, Senator and Mayor of Rambouillet, former Minister for Employment, and representative of the forthcoming French Presidency of the Council; Darja Sencur Pecek, Professor of labour law, representative of the current Slovenian Presidency of the Council; Xavier Prats Monné, Director for Employment, Lisbon Strategy and International Affairs (European Commission); Maria Helena André, Deputy Secretary General, European Trade Union Confederation (ETUC); Renate Hornung-Draus, Chair, Business Europe's Employment Working Group; the Director for European Affairs of Bundesvereinigung der Deutschen Arbeitgeberverbände (BDA); and David-Pascal Dion, administrator at the European Commission.
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Financial crisis: Demands for more transparency and the possibility for regulation were mentioned in a meeting between France, UK, Italy and Germany, with a growing acknowledgement that the financial crisis calls for a rethinking of current governance. At the World Economic Forum, a working paper on private equity funds was presented and it has been concluded that private equities have a negative effect on employment levels: after five years of a buy-out employment levels in bought companies fall an overage of 10.3%. The PES will continue to work extensively on this issue and has just adopted the set up of a financial markets network to closely monitor events surrounding financial markets.
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Lisbon Strategy: Despite calls from the PES and from the European Parliament for changes in the guidelines for the new cycle of the Lisbon Strategy 2008-2010, the European Commission and the Slovenian Presidency of the EU have not indicated that there should be changes decided upon at the European Council of 13-14 March. Issues such as the external dimension of the Lisbon Agenda, the link between the real economy and financial markets and climate change are not adequately represented in the current guidelines. The PES will continue to work for a better set of guidelines in the run-up to the March Summit.
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Commission priorities for 2009: The European Commission presented its Annual Policy Strategy for 2009 on 13 February, which included an overview of its actions in the social and employment field. Initiatives will include: a consultative communication on sectoral social dialogue and its contribution to the Lisbon Strategy; a consultative communication on information and communication technologies Research and Innovation; a consultative communication on University-Business Dialogue; and a green paper on unlocking the potential of the cultural and creative industries.
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Equal Opportunities: In its Annual Policy Strategy for 2009, the Commission has also set out that the gender pay gap will be its major priority in the field of equal opportunities, in addition to addressing the gender dimension in all policy areas.
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Climate change
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Energy and climate package: The European Commission announced on 23 January a comprehensive package of proposals for reducing energy consumption and tackling climate change. In this package, the Commission outlines its ideas on how Europe can cut greenhouse gas emissions by 20%, produce 20% of its energy from renewable sources and increase energy efficiency by 20% by 2020. The package must still be approved by the European Parliament and by the Member States, meaning implementation of the proposals is unlikely to be achieved before 2009. There are potentially controversial issues in the Commission proposals such as the targets for the use of biofuels, or the revision of the Emission Trading Scheme (ETS). See below for details of the package.
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Renewable Energy Directive and burden sharing: The Commission has outlined how an increase in the use of renewable energy such as wind power, solar power and geothermal heat can be achieved. Each Member State has been assigned a specific target for the percentage of renewables in the energy mix, which reflects to some extent the natural preconditions for energy production from renewable sources. Countries that already have a well-established renewable energy sector will be assigned targets that are tougher still. Additionally, the Commission has set a target of 10% use of biofuels in transport, despite worries that biofuels actually increase greenhouse gas emissions and undermine food security in the developing world.
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Reduction targets for Member States: In order to achieve an average 10% reduction of greenhouse gases from sectors not covered by the ETS, such as transport, buildings, agriculture and waste by 2020, the Commission has set national targets according to countries' GDP. Richer countries are asked to make bigger cuts - of up to 20% in the case of Denmark, Ireland and Luxembourg - while poorer states (notably Portugal, as well as all of the countries that joined the EU after 2004 except Cyprus) will in fact be entitled to increase their greenhouse emissions in these sectors - by up to 19% and 20% respectively for Romania and Bulgaria - in order to take into account of their high expectations for GDP growth.
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Emission Trading Scheme reform 2013: A key mechanism in meeting the reduction targets is the EU's ETS. Some 10,000 energy-intensive plants across Europe - representing around 40% of the EU's total CO2 emissions - are currently covered by the scheme. The current scheme expires in 2012 and the Commission says the follow-up scheme will have to put emissions on a "much steeper reduction path" if the 20% target by 2020 is to be achieved. The Commission proposes that the total EU industrial emissions in 2020 should be capped at 21% below 2005 levels. To achieve this EU-wide target, which replaces the current 27 national targets, the total number of emissions allowances circulating at the end of 2012 will be cut by 1.74% annually. Furthermore, the scheme will be enlarged to include new sectors, such as aviation, petrochemicals, ammonia and the aluminium sector. In addition, it will also include two new gases (nitrous oxide and perfluorocarbons), meaning that around 50% of all EU emissions would be covered. Road transport and shipping remain excluded, although the latter is likely to be included at a later stage. Today, 90% of pollution allowances are handed out to industrial installations for free. However, the proposal for ETS revision foresees a huge increase in auctioning from 2013 onwards. Around 60% of the total number of allowances will be auctioned in 2013. The power sector should see full auctioning as early as 2013. This could lead to higher electricity prices. In other sectors, free allocations will be gradually phased-out on an annual basis between 2013 and 2020. Certain energy-intensive sectors could continue to get all their allowances for free in the long term if the Commission determines that they are "at significant risk of carbon leakage", i.e. relocation to third countries with less stringent climate protection laws. However, the sectors concerned by this measure are yet to be determined.
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Competitiveness: The Commission accepts that there is a risk of dislocation of energy intensive industries, so-called "carbon leakage". Consequently, it has accepted the need for compensatory measures for European companies, dependent on whether or not a binding international agreement on climate change mitigation measures can be reached. Decisions on eventual compensation measures will therefore be postponed until 2011. Nevertheless, the Commission's package warns that if no global pact is reached by then, some sort of "carbon equalization system" will be introduced - whether in the form of additional free allocations or by making third-country producers of carbon-heavy goods participate in the ETS in order to access the EU market.
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Carbon capture and storage: The Commission's climate and energy package sets out carbon capture and storage (CCS) as of particular importance for cutting emissions. As it is a controversial technology, the Commission had launched a public consultation, which received largely positive feedback. The EU will invest in demonstration units for CCS technology. Industrial greenhouse gases prevented from entering the atmosphere through the use of CCS will be credited as not emitted under the EU ETS. New guidelines on state aid will provide a framework for countries to support environmental protection - in particular in the field of energy, but also to support the development of CCS technology.
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ECOFIN Council on climate change: Meeting on 12 February, EU Finance Ministers urged the Spring European Council to ensure that Europe's climate change policies are in line with sound public finances and job creation. The ECOFIN Council stated that they prefer market-based instruments such as the ETS or environmental taxes for cutting the EU's greenhouse gas emissions. The statement of the Council is based on a report On the efficiency of economic instruments for energy and climate. The Council emphasized that the long-term objective of a transition to a low-carbon economy should be consistent with the goals of the Lisbon Strategy for Growth and Jobs. Additionally, EU Finance Ministers want to be part of the decision-making process in climate policies in all cases, which have significant budgetary implications. The ECOFIN Council stated that it wanted to leave decisions on how to spend revenues from the EU ETS to Member States, whereas the Commission proposes a system which earmarks at least substantial parts of these revenues for the reduction greenhouse gas emissions, adaptation measures and funding research.
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Commission priorities for 2009: The Commission has chosen 20% as its overall emissions cut target, which has now been confirmed in its Annual Policy Strategy for 2009, which does not mention more ambitious targets. However, at the UN Climate Conference, which took place in December in Bali, consensus was reached that cuts of 25 to 40% have to be made by 2020 to limit global temperature increases to two degrees above pre-industrial levels. For 2009, the Commission will also focus on the adoption of the revised European ETS after 2013, which set a realistic price for carbon, along with a new certification scheme to ensure that biofuels are produced in an environmentally sustainable way, and an overall reduction of emissions. Furthermore, the Commission is committed to adopting a new Energy Action Plan for the years 2010-2014, although it will be cautious about making proposals for new legislation on the internal energy market. Other proposals to be made by the Commission in 2009 include: adaptation measures to the impact of climate change; follow-up on sustainable consumption and a sustainable industrial policy; follow-up on the 2008 Report on the EU Biodiversity Action Plan; and a strategy for the Baltic Sea region.
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Justice and Home Affairs
| External Border Control: At a meeting of EU Home Affairs Ministers at the end of January, the ministers concluded that since the enlargement of the Schengen area (21 December 2007), the external border controls have been strengthened and suspected illegal immigrants have been arrested. Despite the stronger external border control, the movement of illegal immigrants within the Schengen area seems to be significantly high. On 13 February, the Commission presented several consultative communications to combat illegal immigration and organized crime. These measures include new instruments to improve border management through an entry-exit system of third country nationals, through automated border control systems and through an Electronic Travel Authorization; EUROSUR (European Border surveillance system), the possibility of establishing a European border surveillance system; Expanding the role of FRONTEX (European Border Management Agency). According to Commissioner Frattini this should facilitate the entry for tourists into the EU and preventing terrorists and illegal immigrants entering the Schengen area. The aim is to have a legislative draft by the end of 2009 and effective functioning by the end of 2013.
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Asylum: In order to achieve a better control on the circulation of asylum seekers throughout the EU, asylum procedures should be harmonized and Member States should show better cooperation and greater solidarity amongst each other when dealing with asylum seekers. Franco Frattini, Commissioner for Justice, Freedom and Security, is planning to present a package of measures in July 2008 on the completion of an EU Common Asylum System by 2011.
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Commission priorities for 2009: In its Annual Policy Strategy for 2009, the Commission set out the following priorities in the field of Justice and Home Affairs:
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Legal Migration: follow-up on a consultative communication on immigration, due to come out before the summer; adoption of the proposal on entry and stay of legal migrants, including sector-specific directives;
| | | Integrated Management of External Borders, including further development of FRONTEX; promoting establishment of EUROSUR; set up of an entry-exit system and a registered travellers programme;
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Common Visa Policy;
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Common European Asylum System: adoption of the second phase of the Common Asylum System; proposal on European Support Office for Asylum; fostering solidarity between Member States, support and assistance for asylum seekers, rather than only a penalizing approach.
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Enlargement
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Serbia Stabilization Agreement: The Serbian government is divided over the signing of the political agreement with the EU, a light version of the Stabilization and Association Agreement, which was offered to Serbia by the EU on 28 January in a bid to support Boris Tadic's candidacy in the 3 February presidential election. According to Prime Minister Kostunica, head of the Democratic Party of Serbia (DSS), the EU Kosovo mission renders the signing of the proposed agreement unacceptable as "the EU's proposal to sign a political agreement with Serbia, while simultaneously sending a mission to tear our country apart, is a deception. The aim of this proposal is to have Serbia actually signing its consent to the independence of Kosovo, thus becoming the first state to indirectly recognize that independence." President Tadic, head of the Democratic Party (DS), however, deems that the agreement can still be signed as it "makes no mention of Kosovo."
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Kosovo independence: In an extraordinary parliamentary session on 17 February 2008, Kosovo declared its independence from Serbia. Prime Minister Hashim Thaci read the declaration, which states that Kosovo is dedicated to "peace and stability" in the region, and is looking for a "good relationship" with its neighbours. Furthermore the declaration states that Kosovo is created along the lines of the UN plan drawn up by special representative Martti Ahtisaari and calls for Kosovo's supervised independence by an international presence. All 109 deputies present at the parliamentary session voted in favour with a show of hands. The remaining 11 parliamentarians, deputies from ethnic minorities including Serbs, were absent. Serbia remains opposed to Kosovo's independence. Serbian president Boris Tadic reacted with a statement, saying that Belgrade will react with all "peaceful, diplomatic and legal" means to annul the declaration of independence. Meanwhile, international reactions to Kosovo's declaration of independence are mixed. The EU remains divided over Kosovo's independence and met on 18 February in a continued bid to reach a common position on the issue. The UN Security Council is in stalemate over Kosovo, as half of its members see the declaration of independence as a logical act, whilst other members qualified the move as illegitimate.
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Commission priorities for 2009: The Commission set out its 2009 priorities in the field of enlargement, emphasizing relations with the Western Balkans and the EU role in Kosovo. Unfortunately, no mention has been made of the Barcelona process and Euromed relations after the opening of discussions on a Mediterranean Union.
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External Affairs
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Lebanon: The Party of European Socialists gave its full support to the demonstration in Beirut on 14 February 2008 to commemorate - and protest at - the assassination of Prime Minister Rafik Hariri.
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Commission priorities for 2009: The Commission will attach great importance to the entry into force of the Lisbon Treaty, especially for establishing the European External Action Service. The objectives (values and standards, including democracy and Human rights, decent work, environment standards, etc.) of the external dimension of the European Social Model included in the Lisbon Strategy remain vague in the document. Following the communication 'Global Europe: Competing in the World', much emphasis has been placed on trade and competitiveness (World Trade Organization and Economic Partnership Agreements) and very little on development policy. The Commission omitted to mention the EU's support for the multilateral system and presence of the EU in the UN system.
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