Category Archives: S

Single Market for Services

Outline of the Community (European Union) legislation about Single market for services

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Single market for services

Single market for services

Services account for more than 70 % of the economic activity of the Member States and a similar proportion of employment. The freedom to provide services and freedom of establishment, as set out in Articles 49 and 56 of the Treaty on the Functioning of the European Union (TFEU), are therefore essential to the smooth operation of the internal market. In this way, economic operators can pursue a stable, continuous activity in one or more Member States and/or offer temporary services in another Member State without having to be established there.

The European Union is therefore working towards providing frameworks for these two principles in order to guarantee the smooth functioning of the single market for services, and especially cross-border services. The EU has achieved significant progress in the area of certain services. Moreover, in 2006 it adopted the “Services” Directive which aims at removing barriers to trade and services, and at facilitating cross-border operations.

Single market for services Contents

Financial services: general framework
Financial services: banking
Financial services: insurance
Financial services: transactions in securities

GENERAL POLICIES

‘Services’ Directive
Posting of workers in the framework of the provision of services
The principle of equal treatment for men and women outside the labour market
The competitiveness of business-related services
System for the recognition of professional qualifications

SECTORAL PROVISIONS

Liberal professions

Competition in professional services

Services of general interest

Reform of the EU State aid rules on Services of General Economic Interest
New European commitment for services of general interest
White Paper on services of general interest
Social services of general interest

Road transport

Common rules for access to the international road haulage market
Common rules for access to the international market for coach and bus services
Goods: Non-resident carriers in the national market

Marine transport

Freedom to supply services, competition, unfair pricing practices and free access to ocean trade
Freedom to provide services within the Member States (ocean trade)
Freedom to provide maritime transport services
Inland navigation: non-resident carriers
Inland navigation: transport of goods or passengers by inland waterway between Member States

Air transport

Air service agreements between Member States and third countries

Information society

Legal aspects of electronic commerce (“Directive on electronic commerce”)
A new framework for electronic communications services
Regulatory framework for electronic communications
Authorisation of electronic communications networks and services
Universal service and users’ rights
Access to electronic communications networks
Data protection in the electronic communications sector
Online gambling (Green Paper)

Postal services

The Establishment of an Internal Postal Market

State aid to shipbuilding

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State aid to shipbuilding

Outline of the Community (European Union) legislation about State aid to shipbuilding

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Competition > Rules applicable to specific sectors > Competition in transport

State aid to shipbuilding (I)

Document or Iniciative

Council Regulation (EC) No 3094/95 of 22 December 1995 on aid to shipbuilding [See amending acts].

Summary

Regulation (EC) No 3094/95, which was the result of an agreement concluded in 1994 within the framework of the Organisation for Economic Cooperation and Development (OECD) regarding normal competitive conditions in the commercial shipbuilding and repair industry, cannot enter into force until the agreement has been ratified by all the parties. Given the reluctance by the United States to ratify, the Council initially adopted Regulation (EC) No 1540/98 in its place. This Regulation has now expired and has been replaced by the link on state aid to shipbuilding.

Definition of some of the terms used in the Regulation (“shipbuilding”, “ship repair”, etc.).

Enumeration of the various types of aid and the conditions which must be satisfied for them to be judged compatible with the common market:

social assistance (when such aid is intended to cover the cost of measures for the exclusive benefit of workers who lose retirement benefits or who are made redundant or are otherwise permanently deprived of their employment in the respective shipbuilding, conversion or repair enterprise, when such assistance is related to the discontinuance of shipyard activities, bankruptcy, or changes in activities other than shipbuilding, conversion or repair);
research and development aid (when such aid relates to fundamental research, basic industrial research, applied research or development, provided the limits set by the Regulation are observed);
indirect aid (when this is given in the form of state loans and guarantees, as development assistance to a developing country or for the building or conversion of ships, provided the conditions laid down in the Regulation are observed).

Derogations in favour of Spain, Portugal and Belgium, whereby reconstruction aid granted in the form of investment assistance and any other aid for social measures not covered by the Regulation and granted after 1 January 1996 may be authorised, provided the conditions laid down in the Regulation are observed.

Possibility of considering other aid to be compatible in the particular cases listed in the Regulation.

Monitoring procedure:

obligation on Member States to give the Commission advance notice of any aid scheme or amendment of an existing scheme, any decision to apply an aid scheme to an undertaking or any individual application of aid schemes;
obligation on Member States to provide the Commission with various reports on aid, on the basis of which the Commission draws up an annual overall report to serve as a basis for discussion with national experts.

References

Act	Entry into force – Date of expiry	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 3094/95	31.12.1995	–	OJ L 332 of 30.12.1995

Amending act(s)	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 2600/97	23.12.1997	–	L 351 of 23.12.1997

Related Acts

Seventh Commission report to the Council on the situation in world shipbuilding [COM (2003) 232 final – Not published in the Official Journal].

The countries or regions with the largest market shares in this sector are Japan, South Korea, China and the European Union. The sector is currently reeling from a deep crisis caused by three factors: past over-ordering, the global economic slowdown – and particularly the US slowdown – and the repercussions of September 11.

Order intake worldwide fell by 12.3% from 2001 to 2002, following a decrease of 20.7% between 2000 and 2001. European shipyards have, however, been the worst affected by this slump, with orders generally down 50% on 2001 and by over 70% compared to 2000. The hardest hit vessels are container ships and cruise ships. Only oil product tankers and bulk carriers have seen increased ordering, due to the replacement of old tonnage following new European Union maritime safety regulations and strong domestic demand in the Far East.

The main shipbuilding regions have, however, been affected in different ways: Japanese yards have the advantage of strong domestic demand, especially for bulk carriers; South Korea and China are battling for tanker contracts; and the European Union is only really active in the ferries and small tankers segment, where replacement needs are building up, although it is possible that Korean shipbuilders might try to further penetrate this market segment.

Prices: the statistics show that some categories of vessel are particularly affected by a major drop in market prices. Large container ships have seen their sales prices fall as a result of excessive price-cutting by Korean yards. The trend has been such that production costs have not always been covered. This is all the more surprising as the current weakness of the US dollar against the euro, won and yen should have led to an across-the-board increase in US dollar prices. Studies have also been carried out to investigate the relationship between the normal price, which is the full cost of production plus a profit margin of 5%, and the actual contract price charged by certain Korean shipyards. Given that production costs have risen in recent years, the gap between contract prices and normal prices has widened further. The studies are based on an analysis of several Korean yards and have revealed that the difference between the normal price and the contract price ranges from between -1% and -39%. All these results indicate a clear trend: Korean shipyards are trying to grab every order that appears in the market no matter the cost, despite assertions made to the contrary by the management of the different Korean groups. This strategy could be damaging if Korean yards fail to take certain factors into consideration, such as inflation and debt servicing, and major financial difficulties could ensue in the short term.

Sixth Commission report to the Council on the situation in world shipbuilding [COM (2002) 622 final – Not published in the Official Journal].

Following the breakdown of two rounds of talks conducted by the Commission (26-27 August 2002 in Seoul and 24-27 September 2002 in Brussels) the Commission had no choice but to initiate proceedings with the World Trade Organisation (WTO) and to start bilateral consultations with the Republic of Korea. At the same time a temporary defensive mechanism was authorised for certain market segments and for a limited period only.

The crisis in world shipbuilding is deepening with very slow order intake in the major shipbuilding regions in the first six months of 2002. The main reasons are past over-supply, slowing economies around the world and the effects of 11 September. Only Japanese yards still manage to fill building slots. However, this is helped a lot by domestic demand, in particular for bulk carriers, as has been long-standing practice in this region.

World-wide ordering of new ships in the first half of 2002 was down by almost two thirds compared to average quarterly figures in 2000, which was admittedly the best year ever for shipbuilding. In the EU the situation is even worse, with ordering down by almost 80% compared to 2000. Prices for new ships have declined further and are now at the lowest level for more than a decade. Yards in South Korea have further lowered offer prices despite increases in all major cost factors, and a number of Korean yards may find it difficult to meet their financial obligations if order intake is not increased soon.

Fifth Commission report to the Council on the situation in world shipbuilding [COM (2002) 205 final – Not published in the Official Journal].

The world shipbuilding market continues to face serious difficulties due to a substantial imbalance of supply and demand. Past expansion of shipyards, mainly in Korea, but now increasingly also in China, has led to price depression. Thanks to a historically high level of ordering in 2000, prices recovered to some extent, but the significant drop in orders in 2001 has led to a new reduction in prices. The year 2001 has been very problematic for the maritime industries worldwide: the recession in the United States and the terrorist attacks of 11 September have reduced the demand for sea trade and cruises respectively. The decline in ordering affected the container ship and cruise ship sectors most, leading to a drop in overall market shares for Korea and the EU, which are particularly strong in these segments.

The detailed cost investigations undertaken by the Commission show that certain Korean yards continue to price ships below cost while others are trying to improve their bottom line. Despite various rounds of talks with Korea, the Commission did not manage to convince the Korean authorities and yards to fully implement market principles and allow a shake-out of non-viable companies. An improvement in the market situation is therefore unlikely and the Commission has consequently proposed counter-measures to the Council, including preparing the ground for requesting a dispute settlement at the World Trade Organisation and the introduction of a temporary defensive mechanism for shipbuilding.

Fourth Commission report to the Council on the situation in world shipbuilding [COM (2001) 219 final – Not published in the Official Journal].

The year 2000 has seen a significant expansion in orders for new ships. Nearly 56% more orders were placed as compared to 1999, primarily benefiting South Korean shipyards, which have seen their market share increase again. EU yards also benefited considerably from the higher demand for ships, although orders for cruise ships probably played a dominant role here. In 2000 South Korea has consolidated its dominant position on the world shipbuilding market, accounting for more than 35 % of all tonnage ordered worldwide. If cruise ship orders are included, the market share for the EU and Norway is around 18 % (in cgt). However, if they are excluded from the overall figures, the market share of EU yards for new orders in 2000 is below 10 %. In 2000 prices for new ships are reported to have recovered in certain market segments from the very low levels seen after the Asian crisis in 1997.

Third Commission report on the situation in world shipbuilding [COM (2000) 730 final – Not published in the Official Journal].

In this report the Commission confirms the general trend highlighted in the second report of 18 May 2000, namely that, despite increased orders, ship prices have not on the whole recovered the ground lost since 1997. Prices continue to be depressed owing to the very low offer prices from yards in South Korea, which is now the biggest shipbuilding country in the world. Over the first eight months of 2000, its shipyards took more than 40% of all new orders. The Commission considers the stagnation in prices to be all the more alarming in that the European Union has drastically cut back state aid to shipbuilding. Despite the signing of the Agreed Minutes in June 2000 aimed at obtaining from South Korea firm commitments on non-intervention in the financing of shipbuilding, bilateral talks ended in failure. The Commission thus plans to:

continue its monitoring of the market situation;
examine the European industry’s complaint of October 2000 against Korean dumping, in order to deal with this problem under WTO rules;
remain open, at the same time, to any Korean proposals;
continue efforts to re-establish fair competition at international level;
encourage the International Monetary Fund to ensure that the restructuring of Korean shipyards is closely monitored;
continue to cooperate with the industry on competitiveness issues;
examine with the Council any possible action to address the problem.

Second Commission report on the situation in world shipbuilding [COM (2000) 263 final – Not published in the Official Journal].

The report takes stock of the world shipbuilding market. The market is in crisis, with supply outstripping demand. Vessel prices are falling in the face of unbeatable competition from Korean yards, which are prepared to sell at a loss in order to ensure market share and cash flow. To address the problem, the European Commission obtained an agreement from the Korean authorities to restrict State financial intervention in the shipbuilding industry. The Commission also gathered evidence pointing to unfair competition, and a complaint may be filed under the Trade Barriers Regulation.

First Commission report on the situation in world shipbuilding [COM (1999) 474 final – Not published in the Official Journal].

The report describes overcapacity on the shipbuilding market, with a marked imbalance between supply and demand caused mainly by South Korea’s increased capacity. Vessel prices were between 15 and 30% down on 1998 levels, stimulating demand and increasing the Korean yards’ market share. There were reasons to believe that Korean yards were offering vessels at below-retail rates.

Council Regulation (EC) No 1177/2002 of 27 June 2002 concerning a temporary defensive mechanism to shipbuilding [Official Journal No L 172 of 2.7.2002].

The commitments contained in the Agreed Minutes signed by the European Commission and the Government of the Republic of Korea on 22 June 2000 with a view to ensuring an effective price surveillance mechanism have not been effectively implemented by the Korean side and therefore a satisfactory result has not been obtained.

Consequently, despite the ban imposed by Council Regulation (EC) No 1540/98, the 2002 Regulation introduces a temporary defensive mechanism applicable to certain segments of the market (namely container ships and product and chemical tankers) for a short and limited period authorising support of 6% of contract value before aid. The aim is to enable Community shipyards to overcome unfair Korean competition. This Regulation expires on 31 March 2004.

This summary is for information only. It is not designed to interpret or replace the reference document, which remains the only binding legal text.

Another Normative about State aid to shipbuilding

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Competition > Rules applicable to specific sectors > Competition in transport

State aid to shipbuilding (II)

To remove the differences between the rules applicable to the shipbuilding industry and to those applicable to other industrial sectors.

2) Document or Iniciative

Framework on state aid to shipbuilding [Official Journal C 317 of 30.12.2003].

3) Summary

Background

Since the early 1970s, state aid to shipbuilding has been subject to a series of specific Community regimes. This framework, which replaces Council Regulation (EC) No 1540/98, is designed to remove the differences between the rules applicable to the shipbuilding industry and those applicable to other industrial sectors. However, it takes account of specific factors affecting the shipbuilding sector, namely:

the nature of the world shipbuilding market (overcapacity, depressed prices, etc.);
the nature of ships as very large capital goods in respect of credit facilities;
the difficulty of applying the World Trade Organisation (WTO) rules on unfair trading practices to the shipbuilding sector;
the existence of agreements within the Organisation for Economic coordination and development (OECD) in the shipbuilding sector; this mainly concerns the 1994 Agreement on respecting normal competitive conditions in the shipbuilding and repair industry, which has not entered into force and which the OECD is in the process of replacing.

Definitions

For the purposes of this Framework, the following definitions shall apply:

shipbuilding: the building of self-propelled seagoing commercial vessels;
ship repair: the repair or reconditioning of self-propelled seagoing commercial vessels;
ship conversion: the conversion of self-propelled seagoing commercial vessels of not less than 1 000 gt, on condition that conversion operations entail radical alterations to the cargo plan, the shell, the propulsion system or the passenger accommodation;
self-propelled seagoing commercial vessels, including:

– vessels of not less than 100 gt used for the transportation of passengers and/or goods;
– vessels of not less than 100 gt for the performance of a specialised service (for example, dredgers and ice breakers);
– tugs of not less than 365 kW;
– fishing vessels of not less than 100 gt;
– unfinished shells of vessels.

Scope

Aid to shipbuilding includes aid to any shipyard, related entity, shipowner or third party which is granted, whether directly or indirectly, for the building, repair or conversion of ships.

The Framework provides for special measures in relation to investment aid for innovation, closure aid, export credits, development aid and regional aid.

Research, development and innovation aid

Aid granted to defray expenditure by shipbuilding, ship repair or ship conversion firms on R&D projects may be considered compatible with the common market if it complies with the rules laid down in the Community framework for state aid for research and development.

Aid granted for innovation in existing shipbuilding, ship repair or ship conversion yards may be deemed compatible with the common market up to a maximum aid intensity of 20% gross, provided that it contributes to the search for innovative products and processes.

Closure aid

Aid to defray the costs resulting from the total or partial closure of shipbuilding, ship repair or ship conversion yards may be considered compatible with the common market provided that the resulting capacity reduction is of a genuine and irreversible nature.

The costs eligible for aid are:

payments to workers made redundant or retired before the legal retirement age;
the costs of counselling services to workers made or to be made redundant or retired;
payments to workers for vocational retraining;
expenditure incurred for the redevelopment of the yard, its buildings, installations and infrastructure for use other than shipbuilding.

Companies receiving partial closure aid must not have benefited from rescue and restructuring aid in the past ten years. For further information, see the Community guidelines on state aid for rescuing and restructuring firms in difficulty.

Employment aid

Aid granted for the creation of employment, the recruitment of disadvantaged and disabled workers or to cover the additional costs of employing disadvantaged and disabled workers in shipbuilding, ship repair or ship conversion firms may be considered compatible if it complies with the substantive rules laid down in Commission Regulation (EC) No 2204/2002.

Development aid and export credits

Aid to shipbuilding in the form of development aid or export credits may be considered compatible with the common market if it complies with the terms of the 1998 OECD Arrangement on Guidelines for Officially Supported Export Credits and with its Sector Understanding on Export Credits for Ships.

Regional aid

Regional aid to shipbuilding, ship repair or ship conversion may be considered compatible with the common market on condition that it fulfils the following conditions:

aid must be granted for investment in upgrading or modernising installations with a view to improving productivity and must not be linked to financial restructuring of the yards concerned;
in the regions referred to in Article 87(3)(a) of the EC Treaty and in compliance with the regional aid map, the intensity of the aid must not exceed 22.5%;
in the regions referred to in Article 87(3)(c) of the EC Treaty and in compliance with the regional aid map, the intensity of the aid must not exceed 12.5 % or the applicable regional aid ceiling, whichever is the lower.

Aid must cover eligible expenditure as defined in the Community guidelines on regional aid.

Member States are required to submit annual reports to the Commission on all existing aid schemes. This Framework will be applicable from 1 January 2004 until 31 December 2006 at the latest. It may be reviewed by the Commission during this period, in particular in the light of the Community’s international obligations.

4) Implementing Measures

5) Follow-Up Work

This summary is for information only. It is not designed to interpret or replace the reference document, which remains the only binding legal text.

Single Farm Payment

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Single Farm Payment

Outline of the Community (European Union) legislation about Single Farm Payment

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > General framework

Single Farm Payment

Document or Iniciative

Council Regulation (EC) No 73/2009 of 19 January 2009 establishing common rules for direct support schemes for farmers under the common agricultural policy and establishing certain support schemes for farmers, amending Regulations (EC) No 1290/2005, (EC) No 247/2006, (EC) No 378/2007 and repealing Regulation (EC) No 1782/2003 [See amending act(s)].

Summary

Since the reform of the Common Agricultural Policy (CAP) which took place in June 2003, production-related support has been gradually abolished and included in the Single Payment Scheme (SPS), the system of direct payments which European farmers benefit from. This Regulation continues this reform.

Direct payments are support granted to farmers directly under the framework of one of the support schemes listed in Annex I to the Regulation. Some of this support is still directly linked to production; however the majority of direct support is decoupled and granted under the auspices of an income support scheme called the “Single Payment Scheme” (SPS). Under the SPS, support granted to farmers is not linked to production.

The objective of this Regulation is to gradually integrate support coupled with production into the single payment scheme.

DIRECT PAYMENTS

Cross-compliance

Direct support is subject to the principle of ‘cross-compliance’, according to which farmers must comply with a certain number of requirements in order to receive payments. These requirements relate to three areas:

public health, animal and plant health;
the environment;
animal welfare.

If the farmer does not comply with these requirements, they are penalised with a reduction in or cancellation of the direct payments.

Modulation

Modulation is a system of compulsory progressive reduction of direct payments. Direct payments of over EUR 5 000 have therefore been reduced year on year in accordance with a particular percentage of up to 10 % by 2012.

The corresponding amounts are transferred to the European Agricultural Fund for Rural Development (EAFRD) to enhance rural development programmes, in particular for measures concerning climate change, renewable energies, water management and biodiversity. The modulation system does not apply to either the outermost regions, the Aegean Islands or to Member States subject to “phasing in”.

Farm advisory system

Farmers may take part in the farm advisory system set up by Member States to advise farmers with regard to compliance with regulatory requirements on management matters and good farming and environmental conditions.

Integrated administration and control system (IACS)

Each Member State must set up an integrated administration and control system which enables the efficiency and monitoring of the support granted to farmers by the EU to be improved. Through this electronic system, the Member State is able to deal with aid applications and be assured through administrative checks and on-site checks that payments are made properly, in order to prevent and, if necessary, manage irregularities and recover undue amounts.

Payment

Full payments are to be made to beneficiaries in one or two instalments per year between 1 December and 30 June of the following calendar year. The Commission may authorise advances. Farmers who have artificially created the conditions required for obtaining payments will not receive them.

SINGLE PAYMENT SCHEME

The single payment scheme allocates aid to farmers irrespective of their production. The principal aim of this system of support is to ensure greater income stability for farmers. The latter henceforth receive the same amount of support regardless of their rate of production. This enables them to align their production with market demands. The aim of the Single Payment Scheme is also to improve the competitiveness and sustainability of agriculture.

National ceilings

Budget ceilings for the Single Payment Scheme for each Member State are published each year in a Commission Regulation.

National reserve

Member States set up a national reserve to grant rights to payments to new farmers and to those deemed to be in special circumstances, and to establish rights for farmers in areas subject to restructuring and/or development programmes.

Payment entitlements

In order to benefit from the Single Payment Scheme, farmers must first have payment entitlements, which they must declare together with the eligible hectares. The payment entitlements may be transferred from one farmer to another under certain conditions.

Historic implementation

In the “historic model”, entitlements are calculated based on the amount of direct payments each farmer has received during a reference period (generally the years 2000, 2001 and 2002. Other calculation options are possible in specific cases or when other integrations are concerned). Each direct payment is calculated by dividing the reference amount by the number of hectares which are entitled to the support received.

Regional implementation

Member States may opt to allocate payments at regional level. In that case, regional ceilings are to be established and divided among the farmers in the region. The value of their entitlements is obtained by dividing the financial envelope by the number of hectares declared in the first year of application of the scheme.

Partial implementation

Member States have had the option of partially implementing the single payment system. In this case, Member States keep part of the coupled aid and pay it to farmers in the form of a supplementary payment and according to production. These options will disappear in 2012, except for sheep/goats and suckler cows, two productions which may prove to be crucial in order to avoid agricultural land being abandoned in certain regions.

CONTEXT

This Regulation forms part of the “health check” component of the Common Agricultural Policy after the 2003 reform. Since then the CAP has been resolutely aimed at simplification by making most payments directly to farmers under the Single Payment Scheme. Using the experience acquired since the introduction of the SPS, the Commission is extending the simplification of the CAP into the area of cross-compliance and that of existing coupled aid.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 73/2009	1.2.2009	–	OJ L 30, 31.1.2009

Amending act(s)	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 1250/2009	22.12.2009	–	OJ L 338, 19.12.2009

Specific measures in favour of the smaller Aegean islands

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Specific measures in favour of the smaller Aegean islands

Outline of the Community (European Union) legislation about Specific measures in favour of the smaller Aegean islands

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > General framework

Specific measures in favour of the smaller Aegean islands

Document or Iniciative

Council Regulation (EC) No 1405/2006 of 18 September 2006 laying down specific measures for agriculture in favour of the smaller Aegean islands and amending Regulation (EC) No 1782/2003 [See amending acts].

Summary

The smaller Aegean islands benefit from specific supply arrangements for certain agricultural products and adapted support measures for local agricultural production. These measures, exemplified by this Regulation, aim at promoting the development of these regions which is hindered by a number of geographical and economic factors.

Specific supply arrangements

Supply of agricultural products (a list of which can be found in Annex I of the treaty) that are essential for human consumption or for the manufacture of other products is based on a specific support policy. In this respect, the authorities designated by Greece establish a forecast supplybalance which quantifies annual needs for the products concerned. This forecast is then approved by the Commission.

The products benefit from supply aid which is fixed according to the additional marketing costs. Implementing the specific supply arrangements takes into account certain factors such as the particular needs of the smaller islands, traditional trade flows, the economic aspect of the aid envisaged and the development of local production.

Products covered by this scheme may only be re-exported under the conditions established by the Committee which assists the Commission. These conditions include the reimbursement of aid received. Moreover, products which are processed in the smaller islands using materials which have benefited from the specific supply arrangements may only be exported to third countries or sent to the Community within the maximum quantities defined by the Commission.

Measures in favour of local agricultural production

Greece presents a support programme which is submitted to the Commission for approval. This programme includes measures to foster agricultural production in the smaller islands. The measures must be coherent and compatible with Community legislation and policies, in particular the Common Agricultural Policy.

The support programme may include:

a quantified description of the situation as regards agricultural production;
the proposed strategy and expected impact in economic, environmental and social terms;
an implementation schedule for the measures and a general summary table describing the resources to be mobilised;
a justification of the compatibility and coherence of the various measures in the programme and a definition of the criteria and quantitative indicators used for monitoring and assessment;
action taken to ensure that the programme is implemented effectively and appropriately;
the competent authority designated to implement the programme and associated organisations.

Support measures

The Commission may authorise additional aid in the form of operating aid in the sectors of production, processing and marketing of the said products to implement the support programme.

Financial provisions

The specific supply arrangements and the measures fostering local agricultural production amount to a maximum of EUR 23.93 million per year. With regard to the specific supply arrangements, the maximum annual amount is EUR 5.47 million.

General provisions

The Commission is assisted by the Management Committee for Direct Payments.

Greece presents to the Commission:

by 15 February of each year, funding for the implementation of the programme in the following year;
by 30 June of each year, a report on the measures laid down in this Regulation.

The Commission presents a general report on the impact of action carried out pursuant to this Regulation to the European Parliament and the Council by 31 December 2011.

Context

The first unique support framework for agriculture in the Aegean islands was presented in Regulation No 2019/93, which laid down specific supply arrangements and specific aid measures for certain sectors such as potatoes, vines and olive growing. In view of the success of this system, this Regulation aims at maintaining this aid whilst reinforcing partnerships with local authorities and giving them more freedom to manage funding.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 1405/2006	3.10.2006	–	OJ L 265 of 26.9.2006

Amending act(s)	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 615/2008	29.6.2008	–	OJ L 168 of 28.6.08
Regulation (EC) No 72/2009	7.2.2009	–	OJ L 30 of 31.1.09

The subsequent amendments and corrections to Regulation (EEC) No 1405/2006 have been incorporated into the basic text. This consolidated versionis only of documentary value.

Related Acts

Application procedure

Commission Regulation (EC) No 1914/2006 of 20 December 2006 laying down detailed rules for applying Council Regulation (EC) No 1405/2006 laying down specific measures for agriculture in favour of the smaller Aegean islands [Official Journal L 365 of 21.12.2006].

This Regulation contains the application procedure for measures in favour of the smaller Aegean islands. Concerning specific supply arrangements, it describes the function of administrative components such as the aid certificate and the register of operators, gives details of export conditions and explains the procedure for inspection and exports. With regard to measures in favour of local production, the Regulation describes how the amount of aid is determined, how applications are to be submitted and how aid is paid, as well as the principles governing inspections relating to the proper use of aid and sanctions.
See consolidated version

Transmission of information

Commission Regulation (EC) No 792/2009 of 31 August 2009 laying down detailed rules for the Member States’ notification to the Commission of information and documents in implementation of the common organisation of the markets, the direct payments’ regime, the promotion of agricultural products and the regimes applicable to the outermost regions and the smaller Aegean islands [Official Journal L 228 of 1.9.2009].

Strategy for cooperation with Bangladesh

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Strategy for cooperation with Bangladesh

Outline of the Community (European Union) legislation about Strategy for cooperation with Bangladesh

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

External relations > Relations with third countries > Asia

Strategy for cooperation with Bangladesh (2007-2013)

Document or Iniciative

The European Commission – Bangladesh Strategy Paper 2007-2013 .

Summary

Following the adoption of a new partnership agreement in 2001, the European Union (EU) and Bangladesh are cooperating in many areas. Primarily, EU intervention should support the country in reducing poverty and meeting the Millennium Development Goals (MDGs).

All cooperation projects must incorporate the objectives of protecting gender equality, rural development, food safety, environmental protection and good public governance.

Short-term priorities

This strategy aims at establishing a balance between social development and economic development. The partners therefore identify priority areas for action:

human and social development, through programmes to promote health, nutrition, access to education, decent work and the fight against poverty;
good governance, particularly as regards the management of public finances, the judicial system and the effectiveness of the State;
the protection of human rights, mainly to improve respect for the rights of women and children, but also of minority groups such as refugees and the disabled;
economic and trade development, to enable the country to be integrated into the global trade system, to increase the competitiveness of enterprises and the diversification of economic production.

Long-term priorities

During the second phase of implementation of the strategy, a series of actions are to be carried out in the areas of:

the environment and disaster management, the consequences of which mainly affect the poorest people;
food security and nutrition, so as to permanently reduce malnutrition rates, particularly in rural areas.

State aid for public service broadcasting

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State aid for public service broadcasting

Outline of the Community (European Union) legislation about State aid for public service broadcasting

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Audiovisual and media

State aid for public service broadcasting

Document or Iniciative

Communication from the Commission on the application of State aid rules to public service broadcasting [Official Journal C 257 of 27.10.2009].

Summary

Since the 2001 Communication from the Commission on the application of state aid rules to public broadcasting, technological changes have significantly changed the broadcasting and audiovisual markets, including an increase in competition with new players entering the market as well as the availability of new media services. In order to compete, both public and private broadcasters have had to diversify their activities, moving to new distribution platforms and expanding the range of their services. This diversification of the publicly funded activities of public service broadcasters has resulted in a number of complaints by other market players. There have also been significant legal developments since the 2001 Communication, with the introduction of the Audiovisual Media Services Directive which extends the scope of the European Union (EU) audiovisual regulation to emerging media services. Due to these technological, market and legal developments, an update to the 2001 Communication on state aid for public broadcasting is necessary.

The assessment of state aid in the EU is based on Articles 107 and 108 of the Treaty on the Functioning of the European Union (TFEU) (ex-Articles 87 and 88 of the Treaty establishing the European Community (TEC)). In accordance with Article 107 TFEU, state aid includes the following conditions:

aid must be granted by an EU country, or by means of state resources;
it must distort or threaten to distort competition by favouring the beneficiary;
it must be liable to affect trade between EU countries.

Article 106(2) TFEU (ex-Article 86(2) TEC) provides a derogation from the ban on state aid for undertakings operating a service of general economic interest. To benefit from this exemption, the following conditions apply:

the service in question is clearly defined as a service of general economic interest by the EU county concerned;
the undertaking in question must be explicitly entrusted by the EU country with the provision of that service;
the ban on state aid must obstruct the performance of the particular tasks assigned to the undertaking and the exemption from the ban must not affect the development of trade to an extent that would be contrary to EU interests.

For public broadcasting the above must be adapted in accordance with the Amsterdam Protocol which:

states that the public service remit is conferred, defined and organised by each EU country;
provides for a derogation for funding granted to broadcasting organisations for the fulfilment of the public service remit so long as it does not affect trading conditions and competition in the EU to an extent that would be contrary to EU interests.

The state aid assessment by the Commission requires transparency. This consists of a precise definition of the public service remit. The undertaking carrying out this service must be clearly entrusted with that task. The public service compensation should not exceed the net costs of the public service. EU countries should ensure regular supervision of the use of public funding and the carrying out of the public service mandate.

In relation to the diversification of public broadcasting services, the Commission considers that public service broadcasters should be able to take advantage of the opportunities offered by digitisation and internet-based services to benefit society by offering services on all platforms, provided that it does not distort competition or disproportionately affect the market. However, EU countries must consider whether significant new audiovisual services envisaged by public service broadcasters fulfil the conditions of the Amsterdam Protocol in serving the democratic, social and cultural needs of the society, without having disproportionate effects on trading conditions and competition. EU countries must determine what qualifies as a significant new service.

The rapid evolution of the broadcasting markets means that broadcasters are turning to new sources of financing, such as online advertising or the provision of services for payment. Whilst traditionally public broadcasting services are free-to-air, the Commission considers that a direct remuneration in such services does not necessarily mean that the services are not part of the public service remit. The communication states that as long as the pay element does not compromise the benefit to society which distinguishes public services from purely commercial activities.

Strategy for cooperation with China

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Strategy for cooperation with China

Outline of the Community (European Union) legislation about Strategy for cooperation with China

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

External relations > Relations with third countries > Asia

Strategy for cooperation with China (2007-2013)

Document or Iniciative

European Commission – China Strategy Paper 2007-2013 .

Summary

Relations between the European Union (EU) and China have progressed towards a strategic partnership. This cooperation, which developed on the basis of a Trade and Economic Cooperation Agreement, now covers a large number of sectors thanks to the establishment of a stronger partnership.

This cooperation programme is an important element of that relationship.

Political dialogue

The partners are continuing to develop their ties through regular political dialogue, particularly in the areas of:

climate change and energy;
legal and illegal immigration;
human rights;
trade in goods and services, and market access;
the European arms embargo;
cooperation on foreign and security policy, with particular attention to conflict prevention and combating weapons of mass destruction;
justice, freedom and security, focusing on combating terrorism, organised crime, trafficking of human beings, drugs, and the trafficking of small arms and light weapons.

The political dialogue also serves as a framework for the negotiation of a Partnership and Co-operation Agreement (PCA).

Cooperation priorities

In the area of trade, the partnership supports trade liberalisation and China’s commitments in accordance with the rules of the World Trade Organisation (WTO). China’s significance in international trade is such that the country must demonstrate its ability to respect fair and equitable conditions of competition. Similarly, the EU supports the restructuring of the financial services sector in view of the increase in trade in services.

Cooperation in the area of civilian aviation should help to improve aviation safety and security, considering the rapid development of the aviation market and the country’s position as a transit hub within Asia. Action to provide regulatory technical assistance is in place, as are research projects, including for the development of green air transport.

China must reduce the negative social impact of its economic reforms in order to increase its social and territorial cohesion. This should be done through policies at regional level, employment and decent work, social security and health. The partners may therefore exchange experience in particular areas such as the labour market, social exclusion and pensions.

Similarly, cooperation must be increased in the education and training sector, for the development of student and professional exchange programmes, particularly in the field of science.

Finally, the partners must combine their efforts to combat climate change, to develop legal and economic instruments for environmental protection and to ensure the sustainable management of energy and water resources.

Strategy for cooperation with the Philippines

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Strategy for cooperation with the Philippines

Outline of the Community (European Union) legislation about Strategy for cooperation with the Philippines

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

External relations > Relations with third countries > Asia

Strategy for cooperation with the Philippines (2007-2013)

Document or Iniciative

The European Commission – Philippines Strategy Paper 2007-2013 .

Summary

The partnership between the European Union (EU) and the Philippines is focused on reducing poverty and the equitable distribution of wealth. Although the country has reached an intermediate level of development, a large proportion of its population lives below the poverty threshold. This situation is partly explained by a high level of demographic growth and a low level of economic growth.

Areas for cooperation

This Strategy should be implemented according to priority actions in order to:

develop a policy to reduce poverty and meet the Millennium Development Goals (MDGs);
promote economic reforms and good public governance;
organise basic social services, in particular to improve access to health care and education.

Furthermore, the partnership should stimulate trade and investment, and reinforce the positive impact of commercial growth on the country’s level of development.

Cross-cutting issues

Generally, cooperation actions should improve governance and human rights, gender equality, the rights of children and minorities, as well as the protection of the environment, conflict prevention and the stability of the country.

Thematic regional programmes

The Philippines participate in several regional cooperation schemes, such as the Association of South-East Asian Nations (ASEAN), Asia-Pacific Economic Cooperation (APEC) and the Asia-Europe Meeting (ASEM) for policy dialogue.

These bodies provide a framework for cooperation and dialogue as regards democracy and human rights, migration, the environment, social policy and exchanges between universities.

Strategy for cooperation with Indonesia

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Strategy for cooperation with Indonesia

Outline of the Community (European Union) legislation about Strategy for cooperation with Indonesia

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

External relations > Relations with third countries > Asia

Strategy for cooperation with Indonesia (2007-2013)

Document or Iniciative

The European Commission – Indonesia Strategy Paper 2007-2013 .

Summary

Indonesia has undertaken a process of political and economic stabilisation supported by the European Union (EU). This cooperation strategy also supports the achievement of the Millennium Development Goals (MDGs), which remain a priority for a country where the majority of the population lives in poverty.

Priorities for cooperation

Education and vocational training are priority areas of action. EU intervention should contribute to improving basic education systems, vocational training and higher education. The partners’ aim is to increase the level of education and adapt teaching to the needs of sustainable development.

The EU supports the programme of trade and investment reforms, to accelerate the economic performance of the country and allow it to join the international trade system. The social and environmental impact of these reforms must be controlled. They are contributing to the development of a free trade zone between the EU and the Association of South-East Asian Nations (ASEAN) countries.

In addition, the operation of the judicial and law enforcement system should be strengthened. To this end, cooperation actions support institutional reforms, good public governance, human rights, the fight against corruption and the fight against organised crime. The role of civil society should be particularly encouraged when carrying out reforms.

Beyond these priorities, the partners put in place a series of thematic actions, in particular for democracy and human rights, support for civil society, food security, asylum policy and migration.

General areas of cooperation

Certain areas must be included in a cross-cutting way within the actions that have been planned by the partnership, such as:

protection of the environment, particularly to combat illegal logging;
conflict prevention and post-conflict recovery for certain regions;
gender equality, including in democratic life;
governance, transparency and the management of public finances;
human rights and the protection of indigenous people;
combating HIV/AIDS;
controlling the impact of globalisation on social cohesion and promoting decent work.

Strategy for cooperation with Thailand

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Strategy for cooperation with Thailand

Outline of the Community (European Union) legislation about Strategy for cooperation with Thailand

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

External relations > Relations with third countries > Asia

Strategy for cooperation with Thailand (2007-2013)

Document or Iniciative

The European Commission – Thailand Strategy Paper 2007-2013 .

Summary

The partnership put in place between the European Union (EU) and Thailand is intended to facilitate policy and trade dialogue and knowledge sharing. The cooperation priorities presented by the Commission therefore take into account improvements in the socio-economic development of the country.

Strategic cooperation areas

Economic cooperation activities are at the heart of the partnership. The EU therefore supports public reforms in economic areas, improvements to the legal environment for enterprise and investment, and the increase in commercial competitiveness of the country at regional and global levels.

Similarly, planned measures aim at facilitating customs cooperation and adapting rules and technical standards applicable to goods that are to be imported into the EU.

The partners also intend to strengthen their relations in the area of science and technology, higher education and research. Their activities should facilitate the sharing of information, know-how and good practices, as well as strengthening capacities and resources in the sector of research.

Lastly, cooperation should foster dialogue and the sharing of knowledge in the areas of social policy, protection of the environment, good governance, human rights and mine action.

Policy dialogue

A series of themes are to be covered as part of the policy dialogue:

the promotion of democracy and human rights;
social and human development, particularly as regards health, culture, education and training;
immigration and asylum policy, the fight against human trafficking and the protection of displaced persons;
the environment and the sustainable management of natural resources;
the development of civil society.

Cross-cutting issues

Cooperation actions undertaken must take into account:

gender equality and the position of women in the economy;
the impact of global trade at social level and the promotion of decent work;
management of natural resources, including energy;
good governance in public affairs and the promotion of human rights.

Context

The partners’ relations should be intensified through the conclusion of a Partnership and Cooperation Agreement (PCA). The negotiations, initiated in 2007, deal particularly with the priorities defined in this Strategy Paper.