Tag Archives: FR

Free trade agreement with the Republic of Korea

Free trade agreement with the Republic of Korea

Outline of the Community (European Union) legislation about Free trade agreement with the Republic of Korea

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External relations > Relations with third countries > Asia

Free trade agreement with the Republic of Korea

Document or Iniciative

Free trade agreement between the European Union and its Member States, of the one part, and the Republic of Korea, of the other part.

Summary

Under this free trade agreement between the European Union (EU) and Korea, the partners will progressively eliminate duties and import quotas applying to imports and exports of industrial and agricultural products. They will also introduce progressive liberalisation of services and investment.

The main objectives of this Agreement are:

  • to eliminate duties for European exporters of industrial and agricultural products;
  • to improve market access for EU service providers;
  • to abolish non-tariff restrictions in the electronics, pharmaceuticals and medical devices sectors;
  • to improve market access for EU car manufacturers;
  • to improve access to government procurement markets;
  • to protect intellectual property rights;
  • to strengthen competition law;
  • to improve transparency;
  • to promote sustainable development;
  • to establish a rapid and effective dispute settlement system.

Elimination of tariff and non-tariff measures

The EU and Korea will progressively abolish customs duties applying to their trade in goods. This liberalisation applies to a list of goods (Annex 2-A).

In addition, the partners may not adopt any other types of import or export restrictions. However, they may provide for sanitary and phytosanitary measures in order to protect human, animal or plant life or health. In accordance with the principles of the World Trade Organization (WTO), the partners shall minimise the effects of these measures on the development of trade.

Trade in services and right of establishment

The partners undertake to liberalise part of their offer of services in accordance with the WTO’s General Agreement on Trade in Services (GATS). They have therefore drawn up a list of commitments and limitations (Annex 7-A) concerning the liberalised service sectors.

Similarly, the Agreement defines the rules on the right of establishment for access to the market in services, and on the right of residence for professionals.

Lastly, the liberalisation of financial services may be restricted in order to protect the partners’ financial systems or to protect investors and individuals receiving these services.

Government procurement

The EU and Korea shall grant each other access to their markets in products and services, in compliance with the rules on openness, transparency and non-discrimination in the WTO’s Agreement on Government Procurement.

The rules applying to public works contracts are laid down in Annex 9 to this Agreement.

Dispute settlement

In the event of non-compliance with the provisions of the Agreement, the parties shall have recourse to extrajudicial dispute settlement mechanisms, particularly rapid arbitration and mediation procedures.

Sustainable development

The Agreement includes provisions establishing joint commitments and a framework for cooperation on trade and sustainable development and provides for dialogue and continuous commitment between the EU and South Korea in the areas of environment and employment.

Context

This free trade agreement is the most complete and the most ambitious agreement concluded by the EU with a third country. The strategy for a Global Europe: Competing in the world (BG) (CS) (ET) (GA) (LV) (LT) (HU) (MT) (PL) (RO) (SK) (SL) envisages the development of this type of agreement in order to provide the EU with preferential access to external markets.

According to a recent study , this Agreement should make it possible to double bilateral trade over the next twenty years compared to a situation without an agreement in place.

Framework of European cooperation in the youth field

Framework of European cooperation in the youth field

Outline of the Community (European Union) legislation about Framework of European cooperation in the youth field

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Education training youth sport > Youth

Framework of European cooperation in the youth field

Document or Iniciative

Resolution of the Council and of the representatives of the Governments of the Member States, meeting within the Council of 27 June 2002 regarding the framework of European cooperation in the youth field [Official Journal C 168 of 13.7.2002].

Summary

Adopting the White Paper “A new impetus for European youth”, the Commission suggested a new framework of European cooperation in the youth field, comprising two strands: firstly, the application of the open method of coordination and, secondly, taking greater account of the “youth” dimension in other policies. This resolution follows on from this White Paper by setting the priorities and the timetable for the European Union’s (EU) work up until 2004 in the field of “youth”.

For cooperation based on the open method of coordination

In the updated cooperation framework, based in particular on the open method of coordination, the Council is proposing four priority themes:

  • encouraging young people’s participation in the exercise of active citizenship and civil society. This means supporting the work of youth associations and other forms of active participation in order to improve young people’s participation and social cohesion. The exchange of good practices is essential here;
  • enhancing the information addressed to young people and existing information services for young people (successive reports deal with participation and information together);
  • promoting voluntary activities among young people. Making it easier for young people to find voluntary work so as to develop their sense of responsibility and citizenship and their active participation in society. Public authorities, businesses and civil society are called on to recognise the value of voluntary work so as to improve young people’s opportunities on the labour market;
  • encouraging greater understanding and knowledge of youth. This comprises, in particular, the compilation of studies on youth matters and the networking of research structures.

On the basis of these four priorities, the Commission will be sending targeted questionnaires to EU countries from July 2002 onwards. EU countries’ answers should be based on consultation with young people, youth associations and, where applicable, national youth councils or similar organisations. The Commission will then draw up reports in order to identify good practices of common interest for EU countries and proposals for common objectives to be adopted by the Council.

For their part, EU countries are called on to implement the measures they judge appropriate in order to achieve the common objectives set by the Council.

Taking greater account of the “youth” dimension in other policies

The Council calls on the Commission and EU countries to give the “youth” dimension greater priority in other policies and programmes. The Council, in cooperation with the Commission, reserves the right to add to the priority areas stated in the White Paper (education and lifelong learning, mobility, employment and social integration, combating racism and xenophobia and other priorities).

UPDATED FRAMEWORK FOR COOPERATION

The new framework for cooperation is updated by the resolution adopted by the Council on 24 November 2005. This framework for cooperation comprises three strands:

Promoting active citizenship among young people

The open method of coordination in the field of youth allows EU countries to cooperate with a view to sharing best practice on participation by young people, information for young people, voluntary activities and a greater knowledge of the field of youth, while respecting the areas of responsibility set out in the Treaties.

The European Pact for Youth

The European Pact highlights youth issues in key areas of the Lisbon partnership for growth and jobs, particularly in relation to young people’s access to the labour market, development of their creativity and the acquisition of entrepreneurial skills. The European Pact also highlights skills acquired through high-quality, relevant education, training and mobility experiences in the formal as well as the non-formal sector, and reconciliation of working life and family life.

Incorporating a youth dimension

Incorporating a youth dimension in other European policies will concern in particular anti-discrimination, healthy lifestyles, including sport, and research on youth issues.

Related Acts

Communication from the Commission to the Council of 25 October 2004 – Follow-up to the White Paper on a New Impetus for European Youth: evaluation of activities conducted in the framework of European cooperation in the youth field [COM(2004) 694 final – Not published in the Official Journal].

Framework for creation of the Single European Sky

Framework for creation of the Single European Sky

Outline of the Community (European Union) legislation about Framework for creation of the Single European Sky

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Environment > Tackling climate change

Framework for creation of the Single European Sky (SES)

Document or Iniciative

Regulation (EC) No 549/2004 of the European Parliament and of the Council of 10 March 2004 laying down the framework for the creation of the Single European Sky (‘Framework Regulation’) — Statement by the Member States on military issues related to the Single European Sky [See amending act(s)].

Summary

This regulation forms part of a package of legislation on air traffic management designed to create a single European sky by 31 December 2004. The objective of the single European sky is to ensure an optimum use of European airspace to meet the requirements of all airspace users.

The ‘Single European Sky’ package consists of this framework regulation plus three technical regulations on the provision of air navigation services, organisation and use of the airspace and the interoperability of the European air traffic management network. These regulations are designed, in particular, to improve and reinforce safety and to restructure the airspace on the basis of traffic instead of national frontiers.

The objective of this regulation is to enhance current safety standards and overall efficiency for general air traffic in Europe, to optimise capacity meeting the requirements of all airspace users and to minimise delays.

National supervisory authorities

EU countries must, jointly or individually, nominate or establish one or more bodies as their national supervisory authorities to perform the tasks assigned to such authorities. These authorities must be independent of air navigation service providers.

Single Sky Committee

A Single Sky Committee is established on the entry into force of this regulation to assist the Commission with management of the Single European Sky and make sure that due account is taken of the interests of all categories of users. It consists of two representatives of each EU country and is chaired by a representative of the Commission.

Military issues

The EU countries adopted a general statement on military issues related to the Single European Sky. According to this, they will enhance civil/military cooperation to the extent deemed necessary by all EU countries concerned.

Industry consultation body

The industry consultation body advises the Commission on the implementation of the Single European Sky.

It is made up of representatives of air navigation service providers, associations of airspace users, airport operators, the aviation manufacturing industry and professional staff representative bodies.

Implementing rules

Eurocontrol is involved in the development of implementing rules which fall within its remit, on the basis of mandates agreed by the Single Sky Committee.

Performance review

The establishment of a performance scheme aims to improve the performance of air navigation services and network functions in the single European sky. It will consist of:

  • European-wide performance targets in the key areas of safety, environment, capacity and cost-efficiency;
  • national plans including performance targets to ensure consistency with the European-wide performance targets;
  • periodic review and monitoring of the performance of air navigation services and network functions.

Safeguards

Finally, this regulation does not prevent EU countries from applying measures needed to safeguard essential security or defence policy interests.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 549/2004

20.4.2004

OJ L 96 of 31.3.2004

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1070/2009

4.12.2009

OJ L 300 of 14.11.2009

Related Acts

Commission Regulation (EU) No 255/2010 of 25 March 2010 laying down common rules on air traffic flow management [Official Journal L 80 of 26.3.2010].

Commission Regulation (EU) No 73/2010 of 26 January 2010 laying down requirements on the quality of aeronautical data and aeronautical information for the single European sky [Official Journal L 23 of 27.1.2010].

Commission Regulation (EC) No 262/2009 of 30 March 2009 laying down requirements for the coordinated allocation and use of Mode S interrogator codes for the single European sky [Official Journal L 84 of 31.3.2009].

Commission Regulation (EC) No 29/2009 of 16 January 2009 laying down requirements on data link services for the single European sky [Official Journal L 13 of 17.1.2009].

Commission Regulation (EC) No 482/2008 of 30 May 2008 establishing a software safety assurance system to be implemented by air navigation service providers and amending Annex II to Regulation (EC) N° 2096/2005 [Official Journal L 141 of 31.5.2008].

Commission Regulation (EC) No 1315/2007 of 8 November 2007 on safety oversight in air traffic management and amending Regulation (EC) N° 2096/2005 [Official Journal L 291 of 9.11.2007].

Commission Regulation (EC) No 1265/2007 of 26 October 2007 laying down requirements on air-ground voice channel spacing for the single European sky [Official Journal L 283 of 27.10.2007].

Commission Regulation (EC) No 633/2007 of 7 June 2007 laying down requirements for the application of a flight message transfer protocol used for the purpose of notification, coordination and transfer of flights between air traffic control units

Commission Regulation (EC) No 1794/2006 of 6 December 2006 laying down a common charging scheme for air navigation services [Official Journal L 341 of 7.12.2006].

Commission Regulation (EC) No 1032/2006 of 6 July 2006 laying down requirements for automatic systems for the exchange of flight data for the purpose of notification, coordination and transfer of flights between air traffic control units [Official Journal L 186 of 7.7.2006].

Commission Regulation (EC) No 1033/2006 of 4 July 2006 laying down the requirements on procedures for flight plans in the pre-flight phase for the single European sky [Official Journal L 186 of 7.7.2006].

Commission Regulation (EC) No 730/2006 of 11 May 2006 on airspace classification and access of flights operated under visual flight rules above flight level 195

Commission Regulation (EC) No 2150/2005 of 23 December 2005 laying down common rules for the flexible use of airspace [Official Journal L 342 of 24.12.2005].

Commission Regulation (EC) No 2096/2005 of 20 December 2005 laying down common requirements for the provision of air navigation services [Official Journal L 335 of 21.12.2005].

Free movement of goods for sporting purposes

Free movement of goods for sporting purposes

Outline of the Community (European Union) legislation about Free movement of goods for sporting purposes

Topics

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Education training youth sport > Sport

Free movement of goods for sporting purposes

Since 1993, the single market has provided four freedoms as its cornerstones, one of which is the free movement of goods within the European Union (EU). As an essential element of the single market, the common customs union abolished controls at the Union’s internal borders, thus creating a single trading area where goods may be freely circulated. This principle of free movement of goods is established in Articles 34-35 of the Treaty on the Functioning of the European Union (TFEU), which prohibit restrictions on imports and exports between EU countries. The movement of horses and other animals being part of and playing a role in sports within the Union continue to be regulated at the EU level.

Free movement of horses

The EU has adopted measures that regulate the movement of and trade in equidae, which also have repercussions for the movement of horses for sporting purposes.

Directive 2009/156/EC defines the animal health conditions for the movement within the EU and importation from non-EU countries of equidae. It requires registered equidae that will be moved between EU countries to be identified by means of an identification document set out in Directive 90/427/EEC on the zootechnical and genealogical conditions governing intra-EU trade in equidae. These identification requirements are implemented by Regulation (EC) No 504/2008/EC. Specific provisions apply to equidae dispatched from EU countries that are affected by the African horse sickness.

Directive 90/428/EEC governs trade in equidae intended for competitions as well as establishes the conditions for their participation in competitions. It relates to all types of competitions and to all equidae, whether registered or not. The competition rules may not discriminate between equidae that are registered in or that originate from the EU country in which the competition is being held and equidae registered in or originating from another EU country. Equal treatment of equidae must be ensured with respect to the:

  • requirements for entering competitions;
  • judging of competitions;
  • prize money or profits that may accrue from competitions.

Nevertheless, EU countries may make exceptions to these rules when they organise:

  • competitions reserved for a particular breed registered in a specific studbook (register), with a view to improving that breed;
  • regional competitions;
  • historic or traditional events.

In addition, the Commission has adopted Decision 93/195/EEC, which lays down the animal health conditions for the re-entry of registered horses for racing, competition and cultural events after temporary export to non-EU countries.

The Commission has also laid down rules for the temporary admission (for a maximum of 89 days) of registered horses in Decision 92/260/EEC. This decision is mainly, but not exclusively, used in the arrival from and return to their home countries outside the EU of sport horses.

From a strategy for Africa to an EU-Africa strategic partnership

From a strategy for Africa to an EU-Africa strategic partnership

Outline of the Community (European Union) legislation about From a strategy for Africa to an EU-Africa strategic partnership

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Development > African Caribbean and Pacific states (ACP)

From a strategy for Africa to an EU-Africa strategic partnership

Document or Iniciative

Communication from the Commission to the European Parliament and the Council of 27 June 2007 – From Cairo to Lisbon – The EU-Africa Strategic Partnership [COM(2007) 357 final – not published in the Official Journal].

Summary

HISTORICAL BACKGROUND: FROM CAIRO TO LISBON

The first historic European Union (EU)-Africa summit, which was held in Cairo in 2000, launched a more structured political dialogue between the EU and Africa, in particular through regular meetings between senior officials and ministers. Following the creation of the New Partnership for Africa’s Development (NEPAD) in 2001 and the African Union (AU) in 2002, a second summit should have been held in Lisbon in 2003 but was postponed due to controversy over the participation of certain countries.

In October 2005, at a joint meeting with the AU Commission, the European Commission adopted a Communication on the EU strategy for Africa, which was formally approved by the European Council in December of the same year. This strategy has reinforced the coherence of internal EU policy and the coordination of the Commission and the Member States’ policies towards Africa.

In December 2005, participants at the fifth EU-Africa ministerial meeting in Bamako agreed that the next step should be to develop a joint EU-Africa strategy. This position was subsequently confirmed by the European Council in December 2006 and by the AU summit in January 2007.

This joint strategy will serve to reinforce the political dialogue between the EU and Africa in order to:

  • go beyond the framework of simple development cooperation by opening up the dialogue to common political concerns and issues of common interest;
  • go beyond the African continent by moving on from a strategy focused exclusively on African concerns to address European and global issues and, as a result, take action in the relevant fora;
  • move beyond fragmented support for African aspirations to find regional and global solutions to the most important challenges;
  • guarantee increased participation of African and European citizens on the strategic partnership and thus contribute to the strengthening of civil society in both continents.

Following approval of the broad thrust of the joint strategy at the eighth EU-Africa ministerial troika meeting, the finalised strategy was adopted at the second EU-Africa summit (see “Related acts”).

PROPOSALS FOR THE JOINT EU-AFRICA STRATEGY

The joint strategy will pursue four political objectives, namely:

  • reinforcement of the partnership, transforming it into a genuine partnership of equals;
  • promotion of key issues with respect to development, such as peace and security, governance and human rights, trade and regional and continental integration in Africa;
  • joint response to global challenges;
  • promotion of a wide-based and wide-ranging people-centred partnership.

Specifically, the European Commission is proposing five joint initiatives, which will be included in an action plan annexed to the joint strategy. They are:

An energy partnership

This partnership will create a platform aiming at:

  • reinforcing the current dialogue on issues such as access to energy and energy security;
  • scaling up investment in energy infrastructure;
  • investing a higher proportion of oil and gas revenues in development activities;
  • mainstreaming climate change into development cooperation.

Moreover, the partnership should build on existing instruments, such as:

  • the overall framework of the UE-Africa infrastructure partnership and its trust fund;
  • the EU Energy Initiative (EUEI) and its ACP energy facility;
  • the national and regional indicative programmes under the 10th European Development Fund (EDF);
  • the thematic programme on the environment and sustainable management of natural resources, including energy.

Partnership on climate change

The partnership will strengthen cooperation between the EU and the AU in the following areas:

  • disaster risk reduction;
  • halting deforestation;
  • participation of developing countries in the global carbon market;
  • promotion and deployment of environmentally friendly technologies;
  • better monitoring of the environmental effects of climate change.

In January 2007 AU leaders, recognising the vulnerability of Africa to climate change, committed themselves, through the Addis Ababa Declaration, to integrating climate change into their development policies, programmes and activities at national and sub-regional level. This constitutes a sound basis for a partnership between the EU and the AU in this area.

Partnership on migration, mobility and employment

With respect to migration, cooperation between the EU and Africa will involve the establishment of a network of Africa-based migration observatories which will collect, analyse and disseminate information on migration flows within Africa and between Africa and the EU. Special attention will be given to the skilled labour issue.

As regards mobility, the partnership will aim at building African capacity in the area of migration information management. Moreover, it will encourage the movement of skilled labour through the creation of partnerships between European and African institutions such as universities and hospitals.

Finally, in order to offer Africans a genuine alternative to migration to Europe, the partnership will focus on creating more and better jobs in Africa, particularly in the formal economy.

Partnership on democratic governance

The AU and the EU must stimulate the dialogue on governance issues of mutual interest, such as human rights and natural resource management, through the creation of a governance forum that will bring together non-state actors, national parliaments, local authorities and regional organisations. Moreover, the EU will explore new strategies for increasing European Community and Member State funding to support the Pan-African governance architecture.

Political and institutional architecture

The Commission stresses the need to strengthen the dialogue between all EU and AU institutions, in particular between the European Parliament and the Pan-African Parliament, and also between the European Commission and the AU Commission. The EU and the AU could also hold joint ministerial meetings. These efforts will build on the existing biannual EU-Africa ministerial troika meetings and on summits of the Heads of State or Government, which could be held every two or three years alternately in Europe and Africa.

On this basis, the European and African partners are working together to draw up the joint strategy and the action plan. Apart from the aforementioned initiatives, the establishment of partnerships on peace and security, democratic governance and human rights, science, the information society and space is envisaged, with particular emphasis on the achievement of the Millennium Development Goals (MDGs).

Related Acts

Lisbon declaration [Not published in the Official Journal] (pdf ).

This declaration, which was adopted at the close of the second EU-Africa summit on 8-9 December 2007 by the Heads of State or Government of 53 African countries and the 27 EU Member States, lays the foundations for the new strategic partnership of equals between Africa and the EU. This declaration, which contains the philosophy and commitments of the partnership, was adopted at the same time as the first joint EU-Africa strategy and its first three-year action plan (2008-2010) (pdf ).
The strategic priorities identified form the basis of eight partnerships whose progress will be assessed at the next summit in 2010. These partnerships cover the following areas: peace and security, democratic governance and human rights, trade and regional integration, achieving the MDGs, and energy, as well as science, the information society and space.

Free movement of sportspeople

Free movement of sportspeople

Outline of the Community (European Union) legislation about Free movement of sportspeople

Topics

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

Education training youth sport > Sport

Free movement of sportspeople

Freedom of movement is one of the fundamental freedoms guaranteed by the European Union (EU) to its citizens. Article 18 of the Treaty on the Functioning of the European Union (TFEU) prohibits discrimination on the basis of nationality, which also applies to situations where EU citizens exercise their right to freely move and reside within the territories of EU countries (Article 21 TFEU). Furthermore, the Treaty provides for the free movement of workers within the EU, which also entails the abolition of discrimination between workers of EU countries on the basis of nationality (Article 45 TFEU), and for the freedom of establishment and provision of services (Articles 49 and 56 TFEU).

These provisions also apply to professional and semi-professional sportspeople (as workers), other sports professionals such as instructors, coaches or trainers (as providers of services) and amateur sportspeople (as EU citizens). However, in the framework of implementing EU law, the Commission recognises the specific nature of sport, as established by Article 165 TFEU. Hence, it accepts limited and proportionate restrictions to the principle of free movement with regard to the:

  • selection of national athletes for national team competitions;
  • limitation of the number of participants to a competition;
  • establishment of deadlines for player transfers in team sports.

Freedom of movement of professional sportspeople

Even though the entry into force of the Lisbon Treaty on 1 December 2009 provided the EU with a coordinating, supplementary and supporting competence in the field of sport (Article 165 TFEU), it remains a national competence, with sports federations often issuing the rules that govern sport. Nevertheless, these rules are subject to EU law on the free movement of workers when the activities of professional and semi-professional sportspeople involve gainful employment, as already ruled on several occasions by the Court of Justice of the European Union (ECJ).

The most notable of ECJ rulings was on the Bosman case in 1995, which also touched upon transfer rules as obstacles to free movement and nationality quotas as a form of direct discrimination. Mr Bosman, a Belgian footballer who had come to the end of his contract with a Belgian club, considered that the Fédération Internationale de Football Association (FIFA) transfer system had prevented his transfer to a French club. He brought an action against his club, the Belgian Football Federation and the Union des Associations Européennes de Football (UEFA), on the grounds that the transfer system and the rules governing nationality were discriminatory and invalid because they infringed the right to free movement of workers within the EU. The ECJ held that the rules governing transfers and nationality were indeed liable to prevent the free movement of players. Hence, the ECJ found that a club may not prevent a player who is a national of an EU country from being employed by a club of another EU country on the expiry of his contract or complicate matters by requiring that the latter club pay the former club a transfer, training or development fee. Besides, according to the judgment, rules on nationality whereby a club may field only a limited number of professional players who are nationals of another EU country are not authorised.

Freedom of establishment and provision of services of professional sportspeople

National training rules and qualifications for sports professions vary greatly. Depending on the circumstances, these rules may fall within the remit of federal sports authorities, school and university systems, public authorities or even professional organisations. In addition, requirements for exercising sports professions differ from country to country. In certain EU countries, access to jobs in the field of education and training is subject to possession of a state diploma, while in other EU countries a diploma is not necessary in order to work as a sports professional. In certain cases, these disparities may hinder the free movement of sports professionals and lead to conflicts: professionals in one EU country may consider that they have to face competition on their national territory from instructors from other EU countries who have received a different training or who have not received training at all.

Within the context of the freedom of establishment and provision of services, the general system for the recognition of professional qualifications goes some way to resolving this problem. This system applies to regulated professions, that is, professional activities reserved for holders of a diploma or any other qualification issued by the national education system. In this sense, it applies to certain professional activities in the field of sport (such as ski instructors). This is the case whenever the possession of a diploma is legally required to exercise a sports profession. This system implies that the host EU country cannot refuse permission to a national of another EU country to exercise a profession if s/he holds a qualification recognised by his/her own country for exercising that profession. However, exceptions are made when there are substantial differences in the level of qualifications or the duration of training.

Sports qualifications issued by national federations or other sports organisations also come within the scope of this system if these bodies have been formally authorised to issue these qualifications by a public authority.

Framework for promoting employee financial participation

Framework for promoting employee financial participation

Outline of the Community (European Union) legislation about Framework for promoting employee financial participation

Topics

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

Employment and social policy > Social dialogue and employee participation

Framework for promoting employee financial participation

Document or Iniciative

Commission Communication of 5 July 2002, framework for the promotion of employee financial participation [COM(2002) 364 final – Not published in the Official Journal].

Summary

At the Lisbon Summit, the Union set itself the goal of “becoming the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion”. Employee participation can make a significant contribution to realising this aim. If it is handled properly, it can not only increase companies’ productivity, competitiveness and profitability but also encourage employee participation, increase the quality of employment and contribute to greater social cohesion.

The positive results that financial participation schemes for employees have produced in many countries certainly have some bearing on the fact that this question has become a Union-wide political priority. Moreover, an increasing number of enterprises have started to become aware of the possibilities offered by such schemes, i.e. motivating employees and aligning their interests with those of the shareholders, and also recruiting and keeping staff. Employee participation in profits and enterprise results therefore goes hand in hand with a certain number of advantages for enterprises, employees and the economy as a whole.

Forms of financial participation

Financial participation of employees in the profits and results of the enterprise may take many different forms. The common element – and their main characteristic – lies in the fact that they are intended to give employees, usually all employees, access to the enterprise’s profits and/or results.

The PEPPER reports (PEPPER I and PEPPER II) on promoting employee participation in profits and enterprise results and Council Recommendation 92/443/EEC divided the types of financial participation schemes into two main categories:

  • participation in profits, i.e., sharing of profits between those providing the capital and those providing the labour by giving employees a variable income, in addition to their fixed pay, linked with the profits or another measure of the enterprise’s results.
  • employee shareholding, which offers employees indirect participation in the enterprise’s results in the form of dividends and/or appreciation of the value of the capital they hold.

This communication deals with the following main aspects of employee financial participation:

  • the general principles;
  • transnational obstacles;
  • promotion of more widespread financial participation.

General principles

A review of the various forms of financial participation has shown how different the schemes are. Nevertheless, there are some essential elements and principles which characterise the majority of the schemes and the Member States’ policies.

The general principles defined in this communication may serve as a benchmark for identifying good practice;

  • voluntary participation: schemes for financial participation must be set up to respond to the real needs and interests of all the parties concerned and should not therefore be imposed;
  • the advantages of financial participation should be extended to all employees: some of the main advantages of financial participation are that employees identify more with the enterprise and it creates a sense of belonging and increases their motivation;
  • clarity and transparency: the financial participation schemes must enable employees to fully weigh up the risks and potential advantages of the scheme;
  • predefined formula: the rules on financial participation in companies must be based on a predefined formula and clearly linked to the enterprise’s results. This is vital to guarantee the transparency of such schemes;
  • regularity: these financial participation schemes must be applied regularly (this is important as the schemes are intended to reinforce and reward sustained loyalty on the part of employees);
  • any unreasonable risk for employees should be avoided: compared with other “investors”, employees generally bear the brunt of any economic problems their company runs into. This being so, it is important to take care to prevent any risks in setting up and managing the financial participation scheme;
  • a distinction should be made between pay and income from financial participation schemes;
  • compatibility with employee mobility: financial participation schemes must be set up so as to be compatible with employee mobility, both at international level and between companies.

Transnational obstacles

Differences in tax systems, social security contributions and the general legal framework or even cultural differences frequently make it impossible for enterprises to devise and apply a joint financial participation scheme in various places in Europe.

The main transnational obstacles are as follows:

  • differences in tax systems, which can raise problems on two fronts: double taxation or no taxation and substantial administrative costs for enterprises wishing to set up financial participation schemes in various countries;
  • the level of social security contributions, which can vary from one country to another and sometime discourages enterprises from extending financial participation schemes to certain countries;
  • national differences in law which can delay the introduction of financial participation at transnational level;
  • cultural differences and diverging views on financial participation, different national traditions or differences in social relations;
  • a lack of mutual recognition of financial participation schemes;
  • lack of information on financial participation schemes and policies in favour of existing financial participation.

How to promote financial participation

In order to increase employee financial participation in profits and enterprise results in Europe, the Member States have to pursue and intensify their efforts to set up a favourable legal and fiscal environment. Furthermore, as the extent to which financial participation has become established varies from one country to another, there is considerable scope for stepping up the exchange of information and experience.

The Commission will promote the exchange of information and good practice by activities such as making comparative assessments of national policies and practices, including financial participation in the peer review programme under the Employment Guidelines or organising national conferences.

Reinforcing social dialogue

All the evidence suggests that the advantages of financial participation are greater when the schemes are introduced in a partnership with employees and when they are part of an overall approach to participatory management.

The Commission attaches particular importance to supporting the social partners’ initiatives on financial participation, including exchanges of information and experience, formation of networks and research and studies.

Financial participation and small and medium-sized enterprises (SME)

The advantages of employee financial participation are not confined to large enterprises with profitability concerns. SMEs can also benefit from these advantages. The Commission attaches particular importance to the specific situation of SMEs and encourages research into their specific problems.

Improving information by research and studies

The Commission continues to support and carry out research projects to provide supply any information which is missing. It focuses particularly on collecting data on how and where participation schemes are implemented, the impact of financial participation on company performance, quality of work, social cohesion and the situation of financial participation in acceding countries. It also asks the European Foundation for Improving Living and Working Conditions to pursue its activities in the field of employee financial participation.

Establishing networks

In order to step up dissemination of information and experience and to make the possibilities of financial participation more widely known, it is important to promote a permanent dialogue at European level. The Commission supports the establishment of the following networks: university networks and networks of experts, social partners, enterprises and institutes.

Financial support for financial participation initiatives

Financial support is available via various channels: the “Industrial relations and social dialogue” budget heading and Community incentive measures in the field of employment. Under Article 6 of the Regulation on the European Social Fund, the Commission may finance innovative action designed to promote new approaches and identify examples of good practice.

The activities set out in this Communication initially cover the period 2002-2004. Following this, the progress achieved in meeting the defined objectives will be assessed in a process that will closely involve all the parties concerned. A decision will be taken on future initiatives on the basis of this assessment.

Freedom to supply services, competition, unfair pricing practices and free access to ocean trade

Freedom to supply services, competition, unfair pricing practices and free access to ocean trade

Outline of the Community (European Union) legislation about Freedom to supply services, competition, unfair pricing practices and free access to ocean trade

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

Freedom to supply services, competition, unfair pricing practices and free access to ocean trade

Document or Iniciative

Council Regulation (EEC) No 4055/86 of 22 December 1986 applying the principle of freedom to provide services to maritime transport between Member States and between Member States and third countries [See amending acts]

Summary

Four Regulations, Nos 4055/86, 4056/86, 4057/86 and 4058/86, set out to apply the principles of freedom to provide services, competition, and free access to the market in sea transport. Another Regulation, No 3577/92, deals specifically with freedom to provide services in sea transport within Member States (” maritime cabotage “).

Regulation (EEC) No 4055/86: Freedom to provide services

The Regulation gives Member State nationals (and non-Community shipping companies using ships registered in a Member State and controlled by Member State nationals) the right to carry passengers or goods by sea between any port of a Member State and any port or off-shore installation of another Member State or of a non-Community country.

Any current national restrictions which reserve the carriage of goods to vessels flying the national flag are to be phased out.

Existing cargo sharing arrangements in bilateral agreements with non-Community countries are to be adjusted or phased out according to this Regulation.

Cargo sharing arrangements in future bilateral agreements with non-member countries will be limited to those Member States whose shipping companies would not otherwise have an opportunity to ply for trade to and from the particular non-member country.

The Regulation lays down a procedure for cases where Member State shippers have no effective opportunity to ply for trade to and from a particular non-Community country.

It allows the extension of the benefits of the Regulation to non-Community nationals established in the Community.

Regulation No 3573/90 inserts a clause providing for the adjustment of agreements concluded by the former German Democratic Republic.

Regulation (EEC) No 4056/86: Application of the competition rules in maritime transport

The Regulation defines the following terms:

  • “tramp vessel services”: the transport of goods without a regular timetable where the freight rates are freely negotiated case by case in accordance with supply and demand;
  • “liner conference”: a group of carriers who provide international liner services for the carriage of cargo within specified geographical limits and who agree to charge uniform or common freight rates and to apply any other agreed terms for the provision of liner services;
  • “transport user”: a firm that has entered into, or demonstrates an intention to enter into, a contractual or other arrangement with a conference or shipping line.

The Regulation lays down the rules for applying Articles 81 and 82 of the Treaty (free competition) to maritime transport. The transport must be between one or more Community ports, and tramp vessel services are excluded.

Technical agreements whose sole object is to achieve technical improvements or cooperation are exempted by the Regulation from the prohibition in Article 81(1) of the Treaty.

Restrictive practices engaged in by members of one or more liner conferences are exempted from the prohibition in Article 81(1), on certain conditions, in so far as they seek to coordinate shipping timetables, determine the frequency of sailing, allocate sailings among members of the conference, fix rates and conditions of carriage, regulate carrying capacity, or allocate cargo or revenue among members.

Regulation No 1/2003 provides for a changeover from a centralised system of prior notification to a directly applicable exception scheme: competition law is now to be enforced by any competition authority, including the Commission, and by the courts of the Member States.

Regulation (EEC) No 4057/86: Unfair pricing in maritime transport

This Regulation enables the EC to apply compensatory duties in order to protect shipowners in Member States from unfair pricing practices on the part of non-Community shipowners.

The Regulation defines the injury that can be taken into consideration, e.g. a reduction in the shipowner’s market share or profits or in employment.

It lays down a procedure for complaints, consultations, and subsequent investigations.

It allows compensatory duties to be imposed on foreign shipowners. These follow an investigation which demonstrates that injury has been caused by unfair pricing and that the interests of the Community make intervention necessary.

Regulation (EEC) No 4058/86: Free access to ocean trades

This Regulation applies when action by a non-Community country or by its agents restricts free access to the transport of liner cargoes, bulk cargoes or other cargoes by shipping companies of Member States or by ships registered in a Member State, except where such action is taken in conformity with the UN Liner Code.

The Regulation defines the expressions “home trader” and “cross-trader”.

It provides for coordinated action by the Community following a request made by a Member State to the Commission. Such action might include diplomatic representation to non-Community countries and countermeasures directed at the shipping companies concerned.

Similar coordinated action can be taken at the request of another country belonging to the Organisation for Economic Cooperation and Development (OECD) with which a reciprocal arrangement has been concluded.

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EEC) No 4055/86 01.01.1987 OJ L 378 of 31.12.1986
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EEC) No 4056/86 01.07.1987 OJ L 378 of 31.12.1986
Regulation (EEC) No 4057/86 01.07.1987 OJ L 378 of 31.12.1986
Regulation (EEC) No 4058/86 01.07.1987 OJ L 378 of 31.12.1986
Regulation (EEC) No 3573/90 17.12.1990 OJ L 353 of 17.12.1990

This summary is for information only and is not designed to interpret or replace the reference document which remains the only legally binding document.

Freedom to provide services within the Member States

Freedom to provide services within the Member States

Outline of the Community (European Union) legislation about Freedom to provide services within the Member States

Topics

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

Transport > Waterborne transport

Freedom to provide services within the Member States (ocean trade)

Document or Iniciative

Council Regulation No 3577/92/EEC of 7 December 1992 applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage) [Official Journal L 364 of 12.12.1992].

Summary

This Regulation grants freedom to provide maritime transport services within a Member State (maritime cabotage) for Community shipowners operating ships registered in a Member State and flying the flag of that Member State, subject to these ships complying with all the conditions for carrying out cabotage within that Member State.

The Regulation defines “maritime transport services within a Member State (maritime cabotage)”, “Community shipowners”, “public service contract”, “public service obligations”, and “serious disturbance of the internal transport market”.

Depending on the kind of transport service, matters relating to manning are the responsibility either of the Member State of registration or of the Member State in which the cabotage service is performed.

Member States may make the right to provide transport services subject to public service obligations in the interests of maintaining adequate cabotage services between the mainland and its islands and between the islands themselves.

Safeguard measures may be taken by the Commission where the internal market is seriously disrupted by the liberalization of cabotage. Such measures may include the temporary exclusion of the area concerned from the scope of the Regulation.

Persons providing maritime transport services may do so temporarily in the Member State in which the transport services operate on the same terms as those applied by the Member State in question to its own nationals.

Maritime cabotage was liberalized on 1 January 1993. In the case of France, Italy, Greece, Portugal and Spain mainland cabotage was gradually liberalized according to a specific timetable for each type of transport service. Mainland-island and inter-island cabotage for these countries was liberalized in 1999. This exemption was prolonged until 2004 for scheduled passenger and lighter services and services involving vessels of less than 650 gross tonnage in the case of Greece.

Act Entry into force – Date of expiry Deadline for transposition in the Member States Official Journal
Regulation (EEC) No 3577/92 1.1.1993 L 364 of 12.12.1992

Related Acts

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the interpretation of Council Regulation (EEC) No 3577/92 applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage) [COM(2003) 595 final – Not published in the Official Journal].

Decision 93/125/EEC – Official Journal L 49, 27.02.1993
Commission Decision of 17 February 1993 on Spain’s request for adoption by the Commission of safeguard measures under Article 5 of Council Regulation (EEC) No 3577/92 against applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage).


This Decision authorizes Spain to exclude the Spanish mainland, during six months from the date of notification of this Decision, from the scope of Regulation (EEC) No 3577/92. The exclusion does not apply to feeder services. If no Spanish vessel is available to meet the demand for cabotage transport services, other Member States’ vessels will be allowed to offer such services.

Report – Not published in the Official Journal
Commission Report on the implementation of Regulation (EEC) 3577/92 applying the principle of freedom to provide services to maritime transport within Member States – 1993-1994 [COM(95)383 final].
This is the first report on implementation of Regulation 3577/92. It consists of three parts: a description of implementation of the Regulation by the Member States, an analysis of the effects of admission to the market of ships that do not meet the conditions for admittance to cabotage in the flag State and an overview of the cabotage fleets of the EFTA countries considering crew costs and participation in EU coastal traffic during the period 1993-94, when Sweden and Finland were still members of EFTA.

Report – Not published in the Official Journal
Commission Report for 1995-96 on the implementation of Regulation 3577/92 applying the principle of freedom to provide services to maritime transport within Member States (maritime cabotage), and on the economic and social impact of the liberalisation of island cabotage.
This is the second report on implementation of Regulation (EEC) 3577/92. It consists of four parts: an analysis of economic development in the cabotage industry compared with the period 1993-94, a study on the involvement of DIS and MAR ships in cabotage within the European Union and the question of extending Regulation 3577/92 to EEA countries, a comparison of crew costs and an analysis of the economic impact of liberalising of island cabotage.

Commission Report (2000) 99 final
The Commission report of 24 February 2000 on the implementation of Regulation 3577/92 applying the principle of freedom to provide services to maritime cabotage (1997 – 1998). This report covers the period 1997 to 1998. It deals with the legal and market developments in the EU Member States and EFTA States, with the extension of the Regulation to the EEA and with the comparative manning costs for cargo vessels.

Concerning the legal developments in the Member States under this Regulation, all the Member States’ first registers have access to EU cabotage. The northern Member States had already fully liberalised their cabotage when the Regulation came into force. The southern Member States reserved domestic cabotage to the national flag. Therefore the Regulation provides for a gradual opening of the Southern Member States’ cabotage markets. During the period 1997 – 1998, two cabotage segments were liberalised in the southern Member States: services involving the transport of strategic goods (oil, oil products, drinking water) and services by ships smaller than 650 gross tons.

The foreign flag share in the total cabotage trade of the southern Member States rose from 8.35 million tonnes in 1995 to 9.05 million tonnes in 1997. The participation of non-national EU carriers in the liberalised sector of the southern European cabotage on the basis of the Regulation decreased in relative terms from 9.4% of the liberalised cargoes in 1995 to 8.1% in 1997, but increased in terms of volume carried from 3 to 5.75 million tonnes.

Freedom to provide maritime transport services

Freedom to provide maritime transport services

Outline of the Community (European Union) legislation about Freedom to provide maritime transport services

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

Freedom to provide maritime transport services

Document or Iniciative

Council Regulation (EEC) No 4055/86 of 22 December 1986 applying the principle of freedom to provide services to maritime transport between Member States and between Member States and third countries.

Summary

The regulation entitles nationals of European Union (EU) countries to transport passengers or goods by sea from any port in an EU country to any port (or off-shore installation) either in another EU country or in a non-EU country. The regulation gives the same rights to non-EU shipping companies controlled by nationals of an EU country, if the ships fly the flag of that EU country.

The regulation defines “maritime transport service” as the carriage of goods and passengers by sea. .

When the regulation entered into force national restrictions reserving the transport of certain goods to vessels flying the national flag had to be removed.

Equally, cargo-sharing arrangements contained in bilateral agreements with non-EU countries had to be phased out or adjusted upon entering into force of the regulation. This kind of agreements has almost entirely disappeared.

If an EU country’s nationals or shipping companies experience or risk experiencing a situation where they do not have the opportunity to ply for trade to and from a particular non-EU country, the EU country concerned will inform the other EU countries and the Commission. The Council, acting on proposal from the Commission, will then have six months to decide on the necessary action.

The Council may extend this regulation’s provisions to non-EU nationals who provide maritime transport services and are established within the EU.

The regulation enables a person to temporarily provide maritime transport services in an EU country, under identical conditions to those that the particular EU country imposes on its own nationals.

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EEC) No 4055/86

1.1.1987

OJ L 378 of 31.12.1986

Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EEC) No 3573/90

17.12.1990

OJ L 353 of 17.12.1990

Related Acts

Council Regulation (EEC) No 4058/86 of 22 December 1986 concerning coordinated action to safeguard free access to cargoes in ocean trades [Official Journal L 378 of 31.12.1986]

This regulation applies when action by a non-EU country or by its agents restricts free access to the transport of liner cargoes, bulk cargoes or other cargoes by shipping companies of EU countries or by ships registered in an EU country. This regulation also provides for coordinated action by the EU following a request made by an EU country to the Commission. Such action might include diplomatic representation to non-EU countries and countermeasures directed at the shipping companies concerned. Similar coordinated action can be taken at the request of another country belonging to the Organisation for Economic Cooperation and Development (OECD) with which a reciprocal arrangement has been concluded.

Report from the Commission to the Council of 24 November 1992 on the implementation of Council Regulation (EEC) No 4055/86 of 22 December 1986 applying the principle of freedom to provide services to maritime transport between Member States and between Member States and third countries [SEC(1992)2183 Final – Not published in the Official Journal].

Council Decision 87/475/EEC of 17 September 1987 relating to maritime transport between Italy and Algeria [Official Journal L 272 of 25.9.1987].