european and external relations committee agenda … · burns, whisky, golf, great scottish minds...

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EU/S3/08/15/A EUROPEAN AND EXTERNAL RELATIONS COMMITTEE AGENDA 15th Meeting, 2008 (Session 3) Tuesday 23 September 2008 The Committee will meet at 10.00 am in Committee Room 6. 1. Declaration of interests: Jim Hume MSP will be invited to declare any relevant interests. 2. Scottish Homecoming: The Committee will take evidence from— Marie Christie, Homecoming Project Manager, EventScotland; Denise Hill, Head of International Marketing, VisitScotland; Nick Larkin, Head of Enterprise and Property Services, South Ayrshire Council; Shirley Bell, Chief Executive, Robert Burns World Federation; David Williamson, Public Affairs Manager, Scotch Whisky Association; Stewart Laing, International Sales and Marketing Director, Scottish Development Interenational. 3. Services Directive Inquiry: The Committee will consider correspondence from the Scottish Government. 4. French EU Presidency: The Committee will consider a paper from the European Officer. 5. Brussels Bulletin: The Committee will consider the Brussels Bulletin. 6. EU Budget Review inquiry - witness expenses: The Committee will be invited to delegate to the Convener responsiblity for arranging for the SPCB to pay, under Rule 12.4.3, any witness expenses which arise during the committee's inquiry into the EU budget review.

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Page 1: EUROPEAN AND EXTERNAL RELATIONS COMMITTEE AGENDA … · Burns, whisky, golf, great Scottish minds and innovations, and ancestry. 5. Promotional work for the year of homecoming has

EU/S3/08/15/A

EUROPEAN AND EXTERNAL RELATIONS COMMITTEE

AGENDA

15th Meeting, 2008 (Session 3)

Tuesday 23 September 2008 The Committee will meet at 10.00 am in Committee Room 6. 1. Declaration of interests: Jim Hume MSP will be invited to declare any relevant

interests. 2. Scottish Homecoming: The Committee will take evidence from—

Marie Christie, Homecoming Project Manager, EventScotland; Denise Hill, Head of International Marketing, VisitScotland; Nick Larkin, Head of Enterprise and Property Services, South Ayrshire Council; Shirley Bell, Chief Executive, Robert Burns World Federation; David Williamson, Public Affairs Manager, Scotch Whisky Association; Stewart Laing, International Sales and Marketing Director, Scottish Development Interenational.

3. Services Directive Inquiry: The Committee will consider correspondence from the Scottish Government.

4. French EU Presidency: The Committee will consider a paper from the

European Officer. 5. Brussels Bulletin: The Committee will consider the Brussels Bulletin. 6. EU Budget Review inquiry - witness expenses: The Committee will be

invited to delegate to the Convener responsiblity for arranging for the SPCB to pay, under Rule 12.4.3, any witness expenses which arise during the committee's inquiry into the EU budget review.

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James Johnston

Clerk to the European and External Relations Committee Room TG.01

The Scottish Parliament Edinburgh

Tel: 0131 348 5234 Email: [email protected]

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The papers for this meeting are as follows— Agenda item 2

Scottish Homecoming

EU/S3/08/15/1

Agenda item 3

Services Directive Inquiry

EU/S3/08/15/2

Agenda item 4

French EU Presidency

EU/S3/08/15/3

Agenda item 5

Brussels Bulletin

EU/S3/08/15/4

Agenda item 6

EU Budget review inquiry - witness expenses

EU/S3/08/15/5

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European and External Relations Committee

15th Meeting, 2008 (Session 3)

Tuesday 23 September 2008

Homecoming Scotland 2009

Background 1. Homecoming Scotland 2009 forms part of the Scottish Government’s

international strategy. The Government’s International Framework (published on 22 April 2008) refers to Homecoming Scotland 2009 as a ‘signature event’ which will provide a real focus for energising and engaging Scotland’s Diaspora population.

2. At its meeting on 24 June 2008, the Committee agreed to hold a round-

table discussion with key stakeholders to discuss the Scottish Government’s plans for Homecoming Scotland 2009.

Homecoming Scotland 2009 3. Homecoming Scotland 2009 is a Scottish Government initiative

managed by EventScotland in partnership with VisitScotland. The year-long programme of events celebrates the 250th anniversary of Robert Burns’ birth and runs from 24 January to November 2009.

4. The Homecoming Scotland 2009 programme was officially launched on

16 June 2008. The calendar of events celebrates Scotland’s great contributions to the world and focuses on five main themes: Robert Burns, whisky, golf, great Scottish minds and innovations, and ancestry.

5. Promotional work for the year of homecoming has been ongoing and

was an important aspect of Scotland Week 2008. The outcomes of the Scotland Week 2008 promotional work will be included in an evaluation report which is due to be published in autumn this year.

Stakeholder panel 6. EventScotland and VisitScotland will give oral evidence to the

Committee as the joint organisers of the year of homecoming. They have also provided a written submission, which is attached at Annexe A.

7. The Scotch Whisky Association has been involved in developing a range

of events taking place across Scotland during ‘Whisky Month’ in May 2009. Scotch whisky is one of the central themes of programme of

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homecoming events. A written submission from the Association is attached at Annexe B.

8. South Ayrshire will be the focal point for the Burns 250th Anniversary

Weekend that starts the Homecoming 2009 activities. South Ayrshire Council has been heavily engaged with the homecoming organisers as well as with neighbouring East and North Ayrshire Councils in planning and co-ordinating activity in the area. The Council has also worked closely with a wide range of other partners, including community and voluntary organisations and local businesses to deliver events.

9. 2009 marks the 250th anniversary of Robert Burns' birth and is the

inspiration behind the year of Homecoming. The Robert Burns World Federation has been involved with Homecoming Scotland since its inception and is working closely with the Homecoming Scotland team.

10. Scottish Development International (SDI) has a pivotal role in co-

ordinating and driving the promotion of Scotland as a prime location for inward investors and in developing opportunities abroad for Scottish-based businesses. SDI was involved in the delivery of events during Scotland Week 2008 on which it gave evidence to the Committee in June 2008.

Committee Clerk September 2008

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Written evidence from EventScotland and VisitScotland— Introduction Homecoming Scotland 2009 is a Scottish Government initiative managed by EventScotland in partnership with VisitScotland. Inspired by the 250th anniversary of Scotland’s national poet and international cultural icon, Robert Burns, next year (2009) Scotland will host its first ever national Homecoming year. The Homecoming celebrations will begin on Burns Night and run through to St Andrew’s Day. EventScotland and VisitScotland were given responsibility for Homecoming in November 2007 as the project moved from the inception to the delivery phase. Homecoming Scotland 2009 will be a unique occasion for visitors to join in the celebration of all the great things that Scotland has given to the world, touching all those who participate with a deep sense of pride and belonging and a strong desire to come back in the future for more. The year long programme of events and activities are designed to celebrate some of Scotland’s great contributions to the world and its unique position as the home of Burns, Golf, Whisky, Great Scottish Minds & Innovations and the ancestral home of millions of people worldwide. Homecoming Scotland 2009 aims to motivate people of Scottish descent, as well as those who simply love Scotland, to come home in 2009 and take part in an inspirational celebration of our culture, heritage and the many great contributions Scotland has given the world. The project will:

• Deliver additional tourism visits and revenue for Scotland • Engage and mobilise the Scottish Diaspora • Promote pride in Scots at home and abroad • Celebrate Scotland’s outstanding contributions to the world

Key Project Objectives

• Achieve a return on investment of 8:1 from a core £5M investment: £40million of additional tourism spend

• Deliver a programme of at least 100 funded, plus a partner programme, with something going on across the year in every region.

• Achieve significant reach and impact of Homecoming Scotland 2009 marketing communications

• Grow awareness of Homecoming Scotland 2009 in Scotland • Through data capture and research provide the means to develop a

legacy programme for continued engagement with and greater understanding of the Diaspora post 2009 for the benefit of Scotland.

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The Events Programme The Homecoming Events Guide was launched on 16 June this year by the First Minister at Edinburgh Castle. It contains details of over 100 events that link to one or more of the year’s in celebration of Homecoming. The Homecoming Scotland programme strands are:

• Signature Events – flagship events • Themed Events – a broad range of major events taking place across

the country linking with the themes of Homecoming • Rolling Programme – a programme of relevant, largely exhibition

based year round activity • Partner Events – in kind promotional support offered to a range of

events that fit the Homecoming themes, but are not directly funded. The full Homecoming events programme as it currently stands is attached as a pdf. However, it should be noted that more events will be added to the programme as we move towards the start of the year, and the Homecoming team is working with a range of key partners to ensure that they are included in the year. The launch of the partner programme will add many more relevant events to the programme of celebration. VisitScotland’s Marketing Activity - Overview Homecoming is an integral element of VisitScotland’s marketing activity, both in the UK through consumer focussed PR activity and in international campaigns. As the Committee is aware it has already featured prominently in international marketing promotions such as ‘Scotland Week 2008’ delivered jointly with the Scottish Government and in VisitScotland activity such as ‘Scotland in Toronto 2008’. The examples outlined below are intended to give the Committee an insight into marketing activity and is not intended to be a comprehensive outline of VisitScotland marketing activity. VisitScotland’s European campaigns have already featured Homecoming 2009. As the year approaches VisitScotland’s marketing campaigns will, of course, prominently feature Homecoming Scotland, and will focus on the culture, whisky and golf themes. In addition, through VisitScotland’s partnership with VisitBritain the Homecoming Scotland message will be extended further across all international markets including emerging markets such as: India, China, South America and Japan. In the North American market future VisitScotland activity will include the launch of its biggest ever direct mail campaign. This targeted mailing will go to over 100,000 North American households – profiled by Scots ancestry and household income. These households will receive the official Homecoming Scotland events guide and an invitation to start planning their Homecoming 2009 trip. As an example of the partnerships working to promote Homecoming, The Glasgow City Marketing Bureau (GCMB) will work with

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VisitScotland in this campaign. The GCMB investment will lead to the campaign being expanded to include an additional 25,000 households. Additional, activity includes VisitScotland’s Scots Masters (US travel agents who sell Scotland) representing Homecoming Scotland at around 15 of North America’s largest Highland Games, with a combined audience of over 1 million. Some of the individual Games have an audience in excess of 250,000 Scottish and Highland Games enthusiasts. Several Highland Games in Australia and New Zealand will also be used to promote Homecoming Scotland 2009. The Scots Masters are being provided with comprehensive Homecoming collateral / branding to promote the year. In addition, at many games VisitScotland has bought packages which include pre-publicity, programme advertising and sponsorship. Summary EventScotland and VisitScotland hope the Committee finds this overview of Homecoming 2009 useful and we look forward to meeting with the Committee on 23 September to discuss this exciting year further. EventScotland & VisitScotland September 2008

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EU/S3/08/15/1 Annexe B

Written evidence from the Scotch Whisky Association— 1. Introduction 1.1 The Scotch Whisky Association (SWA) is the representative body of the

Scotch Whisky industry, with a remit to protect, promote and grow Scotch Whisky worldwide. Its 54 member companies account for 95% of the industry.

1.2 Scotch Whisky is an iconic, high quality ambassador for Scotland, with

nearly £3bn of Scotch Whisky a year exported to some 200 countries. Scotch Whisky is the country’s leading manufactured export industry and its recognition helps Scotland stand out in the international tourist market place.

1.3 The SWA has supported Homecoming Scotland 2009 since its inception,

and its member companies are actively involved in a wide range of events planned for next year, both through the main programme and individual company activities.

2. Scotch Whisky Tourism 2.1 Scotch Whisky is an increasingly important contributor to Scottish

tourism. Over 1.23m people visited a distillery in 2007, contributing over £22m to the rural economy. 23% of Scotland’s five star visitor facilities are distilleries, ensuring a premium offering to tourists. Nearly 50 whisky attractions are open to the public.

2.2 Scotch Whisky distilleries are at the heart of many communities. They

act as a shop window for local produce, arts and crafts in rural Scotland, creating business for the hospitality sector and other tourism providers.

2.3 The industry and public bodies (Visit Scotland, Scottish Enterprise, and

Highlands & Islands Enterprise) recognise that more can be done to use Scotch Whisky’s international appeal to increase tourism. It was for that reason the national whisky tourism initiative – ‘ScotlandWhisky’ – was established.

2.4 ‘ScotlandWhisky’ now accredits over 70 hotels and restaurants as high

quality Scotch Whisky ‘Embassies’ and nearly 750 ‘whisky ambassadors’ have graduated from its training school. The industry is also investing in a range of local initiatives, including ‘The Whisky Coast’ to encourage visitors to the west coast.

2.5 The Spirit of Speyside Festival, the Islay Malt & Music Festival, and the

annual Whisky Live event in Glasgow, are all well established events and attractions in their own right. The Speyside Festival boosts the local economy by £650,000 a year.

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3. Homecoming Scotland 2009 3.1 In recognition of Scotch Whisky’s international role, and the importance

of whisky-tourism, the SWA has supported the Homecoming Scotland idea since its inception. A wide range of discussions have taken place between industry representatives and staff from the Scottish Government, Homecoming Scotland, Event Scotland, and Visit Scotland.

3.2 Building on existing company activities, the industry welcomes the

decision to highlight Scotch Whisky as a ‘pillar’ of Homecoming. It reflects Scotch Whisky’s social, economic and cultural importance to Scotland and to the country’s international reputation.

3.3 Homecoming Scotland offers a further opportunity to showcase Scotch

Whisky and other Scottish attractions to a wide audience, maximising tourism, economic, and reputational potential. We also need to look beyond the 2009 programme and to encourage repeat visits and a ‘Homecoming legacy’ for Scottish tourism.

4. Whisky Month (May 2009) 4.1 Working with staff within the Homecoming organisation, the SWA agreed

that the development of the ‘Whisky Month’ concept for May 2009 was an appropriate vehicle to act as a focal point for whisky-related activities.

4.2 May is well established in the whisky tourism calendar, as two successful

existing festivals take place that month, the Spirit of Speyside Festival and the Islay Malt & Music Festival. Over the last decade, for example, the Speyside Festival has developed significantly and is now firmly established. It has strong support from the local distilling and wider business and hospitality community.

4.3 Plans for ‘Whisky Month’, and Scotch Whisky activities throughout the

Homecoming programme, continue to be developed. Events include:

• A specially extended and enhanced Spirit of Speyside Festival (May)

• A new ‘Spirit of the West’ festival (May) organised by The Whisky Coast

• Islay Malt & Music Festival (May) • Isle of Barra Whisky Galore Festival (September) • ‘Whisky Week’ events around Whisky Live, Glasgow

(October/November) 4.4 Distillers provide significant financial support to arts, cultural and sporting

events, both at community and national level. Building on this support, a number of distillers may badge existing activities under the Homecoming banner.

4.5 Indeed, individual distillers have committed themselves enthusiastically

to the initiative. Some activities have been publicly announced and

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others will be launched in due course. The following examples provide a cross section of support being provided:

• Diageo has agreed to badge two internationally renowned events in

association with Homecoming; the Classic Malts Cruise (July) and the Johnnie Walker Championship at Gleneagles (August). A range of local events will also be supported by Diageo’s distillery visitor centres.

• The Famous Grouse is the official sponsor of 'The World Famous

Burns Supper' in January 2009. The company is backing the event through its international distribution network and a global promotional plan involving international competitions, web content, on-pack activity and a special limited edition bottling.

• The Scotch Whisky Experience in Edinburgh plans to run a series of

Homecoming events and will also open new tour facilities in March 2009.

4.6 The SWA will draw together the different whisky strands by developing a

Whisky Month website. In addition, as part of its international communications programme in the last quarter of 2008 and in 2009, the SWA will highlight Homecoming at several overseas trade and media events. This will co-incide with industry activities to raise consumer awareness of new Scotch Whisky Regulations and our focus on ensuring the highest legal protection for Scotch Whisky as a product that must be made in Scotland.

4.7 Events are already planned in Delhi and Washington in 2008. The

Association also promoted Homecoming Scotland to leading US media during a press visit to Scotland in May, with the Scottish Tourism Minister invited to meet the group.

4.8 Scotch Whisky is experiencing growth in both traditionally important

markets, such as the United States (£419m exports), and also in new emerging markets, including Russia (£21m), India (£33m), and China (£42m). The SWA believes Homecoming is another opportunity to promote Scotch Whisky and Scotland in important ‘diaspora’ markets. Reflecting the wide spread of Scotch Whisky exports, we will also be supporting the Homecoming message in developing markets that offer significant commercial and tourism potential in the future.

4.9 In promoting Homecoming Scotland, the SWA would urge that the

initiative’s communications and marketing continues to develop and that there is close co-ordination with all interested stakeholders. With the allocation of project funding taking place earlier this year, there is also a need to ensure communications are disseminated in target markets in a timely manner.

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5. Impact of Alcohol Misuse strategy on Tourism 5.1 The SWA has made a detailed submission to the Scottish Government’s

‘Changing Scotland’s relationship with alcohol: a discussion paper on our strategic approach’. We are committed to working in partnership with the Government to tackle alcohol misuse and agree that attitudes to excessive consumption need to change.

5.2 The Association would note that great care will be required to ensure that

the broad proposals on ‘promotional activities’ set out in the consultation due not impose unintended restrictions on distillers, either in relation to day to day tourism activities or support for either community or high profile national initiatives such as Homecoming Scotland. Unnecessary barriers to promoting Scotch Whisky to international visitors would send out a conflicting message to that rightly put forward by Homecoming.

5.3 We have welcomed the Scottish Government’s commitment to work with

the industry to ensure that distillery visitor centres are not subject to unintended consequences under measures brought forward as a result of the alcohol misuse strategy consultation.

6. Conclusion 6.1 Scotch Whisky plays an important role at community and national level.

Its international recognition attracts an increasing number of visitors to Scotland. The industry is keen to work with the Scottish Government and others to maximise that positive impact for Scotland.

6.2 The SWA and its members are committed supporters of Homecoming

Scotland. ‘Whisky Month’ and other whisky-related activities during 2009 will result in a high quality offering to visitors and have positive economic, tourism, and reputational benefits.

The Scotch Whisky Association September 2008

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European and External Relations Committee

15th Meeting 2008 (Session 3)

Tuesday 23 September 2008

Services Directive

Introduction 1. At its meeting on 19 February 2008 the Committee agreed to conduct a

short inquiry on the Scottish Government’s approach to the transposition and implementation of the Services Directive.

2. A Call for Evidence was launched on 26 February 2008 and written

submissions were received from the Law Society of Scotland, SEPA and Scottish Natural Heritage. In addition, the Faculty of Advocates supplied the response it had submitted in connection with the UK Government’s consultation on the implementation of the Services Directive discussed below. The Committee took oral evidence from all four organisations at its meeting on 27 May 2008.

3. At its meeting on 24 June 2008 the Committee considered a summary of

the evidence received and agreed to continue to monitor the Scottish Government’s approach to the transposition of the Services Directive; to provide a copy of the summary of evidence to the Scottish Government and to make a number of the recommendations. In particular, the Committee recommended the following:

• That the Scottish Government takes the lead in the transposition of

the Services Directive as it relates to devolved matters; • That the Scottish Government ensures that Scottish interests are fully

reflected in the draft legislation, whether at UK-wide or Scottish level;

• That the Scottish Government undertakes, as a matter of priority, awareness-raising and detailed sector-by-sector work among all relevant stakeholders, whether service providers, groups representing consumers or competent authorities, on the full implications of the Services Directive as it relates to devolved matters;

• That the Scottish Government undertakes co-ordinated, informed and

timely engagement with Scottish stakeholders to inform its work in

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taking forward the transposition of the Services Directive and its discussions with the UK Government;

• That the Scottish Government sets out its detailed timetable for the

transposition of the Services Directive as it relates to devolved matters; in particular, its plans for the screening of all relevant legislation and administrative practices as well as its plans for engagement with stakeholders and awareness-raising among all those affected by the Services Directive.

4. The Scottish Government’s response is attached at Annexe A. 5. Members will note that the Minister has set out a timetable for

transposition. The Committee may therefore wish to refer to this timetable as it continues to monitor the Scottish Government’s approach to transposition of the Services Directive. For example, a key date will be March 2009 when the Scottish Government intends to consult on its draft legislation.

Recommendation The Committee is invited:

• to note the Scottish Government’s response; • to agree to continue to monitor the Scottish Government’s approach to

the transposition of the Services Directive as it relates to devolved matters.

Committee Clerk September 2008

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EU/S3/08/15/2 Annexe A

TEXT OF LETTER DATED 24 JULY 2008 FROM THE MINISTER OF EUROPE, EXTERNAL AFFAIRS AND CULTURE TO THE CONVENER Thank you for your letter of 27 June which provided a Summary of Evidence and recommendations in relation to your Call for Evidence on the transposition of the EU Services Directive. The Scottish Government is committed to ensuring the effective transposition of the Directive in Scotland. The then Department of Trade and Industry (DTI) took the lead role for the UK in EU negotiations over the Services Directive, which were completed in December 2006. The Scottish Executive maintained an ongoing interest in the progress of negotiations, contributing to UK governmental correspondence requesting agreement on negotiating positions and policy, and through input to DTI discussions. The Scottish Government is taking the lead in transposing the Services Directive as it relates to devolved matters while working closely with the Department for Business, Enterprise and Regulatory Reform (BERR). We will ensure that Scottish interests are fully reflected in any draft legislation. Work is continuing to identify groups and organisations affected by the Services Directive. We organised a seminar in April to inform competent authorities of the implications of the Directive. It was attended by the Law Society of Scotland, the Scottish Environment Protection Agency, Scottish Natural Heritage, the Scottish Commission for the Regulation of Care, the Royal Incorporation of Architects in Scotland, CoSLA and a number of local authorities. We have also been in contact with the Faculty of Advocates, the Scottish Legal Aid Board, the Scottish Legal Complaints Commission, Historic Scotland, the Office of the Scottish Charity Regulator and the Institute of Chartered Accountants of Scotland. We are continuing to engage with these organisations and are planning to provide further information in the autumn to assist competent authorities. The Directive represents benefits for consumers and opportunities for Scottish businesses so we will work to raise awareness within these groups in Scotland. Detailed decisions on the transposition will be informed by suitable engagement with stakeholders to ensure the most appropriate measures are taken for Scotland. Our timetable for transposition is as follows: September 2008: conclusion of screening of legislation October 2008 further detailed engagement with competent authorities

including

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November 2008 engagement with groups representing consumers and

businesses January 2009 policy instructions to solicitors March 2009 consultation on draft legislation June 2009 consideration of responses to consultation September 2009 laying of implementation legislation We will be liaising with BERR throughout the transposition process. The Services Directive will impact on a wide range of interests in Scotland and the Scottish Government will work to ensure that it is effectively implemented and that its benefits are recognised.

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European and External Relations Committee

15th Meeting 2008 (Session 3)

Tuesday 23 September 2008

EU French Presidency

Introduction

1. As Members will be aware the French Government holds the Presidency

of the European Council from the beginning of July 2008 until the end of December 2008. The European Officer has prepared the attached briefing which sets out their key priorities.

Recommendation 2. The Committee is invited to note the European Officer’s briefing. Committee Clerk September 2008

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European and External Relations Committee

15th Meeting 2008 (Session 3)

Tuesday 23 September 2008

Brussels Bulletin

Introduction 1. At its meeting on 18 March 2008 the Committee agreed to include the

Brussels Bulletin on the Committee’s agenda. The latest Brussels Bulletin – Issue 17 September is attached at Annexe A.

Purpose of the Brussels Bulletin 2. As Members will be aware, the Brussels Bulletin is produced by the

Parliament’s European Officer and is based on the key themes identified by the Committee as a result of its consultation on the Commission’s Legislative and Work Programme for 2008. At its meeting on 19 February 2008, the Committee agreed that the European Officer should focus on four key themes over the coming year:

• Energy and Climate Change • Maritime Issues (including Fisheries) • Structural/Reform Issues • Economic and Social Issues

3. The European Officer provides early intelligence on expected

developments, actions of the key players and detail of debate on these key themes, primarily through the Brussels Bulletin. This is circulated to the subject committees and published on the website. More detailed briefing can also be commissioned by a committee on any specific issue.

Recommendation 4. The Committee is invited to note the latest issue of the Brussels Bulletin.

Committee Clerk September 2008

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ISSUE 17 SEPTEMBER 2008

NEWS IN BRIEF

IN THIS ISSUE:

News Renewables Emissions Trading Scheme (EU ETS) Trio Presidency Renewables

The Industry & Energy (ITRE) Committee of the European Parliament endorsed the report produced by Claude Turmes MEP (12 September 2008). The report calls for interim targets backed by penalties and incentives, supports joint Member State renewables projects, and would seek to prioritise renewables access to energy grids.

The report also called for a revision of biofuels targets and a strengthening of the sustainability criteria.

Lisbon Treaty EU Social Agenda

John Purvis MEP

Upcoming meetings & events Contact details The report will be debated in plenary session

on 8 October 2008.

Emissions Trading Scheme The Industry & Energy (ITRE) Committee endorsed the opinion of Lena Ek MEP (11 September 2008). The opinion addresses the issue of permit allocation and auctioning. A plenary vote will take place on 7 October 2008.

Trio Presidency Representatives of the holders of the EU Presidency presented their priorities to the European Parliament (2 September 2008). The key policy areas were energy/climate change, the Lisbon Strategy, CAP reform, Budget preparation and developing a successor to the Hague (Justice) Programme. Of overarching importance will be securing resolution of the Lisbon Treaty impasse.

Lisbon Treaty Two key concessions to assuage Irish voter concerns have been highlighted by Irish Government research, an opt out from defence commitments, and retention of one Commission per state (7 September 2008).

Also, the Czech Consitutional Court has begun its deliberation on the legitimacy of the Lisbon Treaty in Czech law (31 August 2008).

EU Social Agenda

Social Affairs Commissioner Spidla has identified the directives addressing discrimination and European Works Councils as priorities (2 September 2008).

John Bowis MEP has been appointed rapporteur on the Cross Border Health Directive (28 August 2008).

Scottish MEP contribution The fourth article in the on-going series of

MEP contributions comes from John Purvis MEP on the subject of energy unbundling.

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BRUSSELS BULLETIN 2

RENEWABLES Proposal Renewable Energy Directive Current status The directive, which aims to increase renewable energy usage to 20% by 2020, was launched in January 2008 as part of the energy package. The proposal is currently being considered by the European Palriament. What’s happening? Overview. The European Parliament's Industry Committee endorsed the report produced by Claude Turmes (12 September 2008). Following difficult negotiations the Committee voted by 50 votes in favour of the final report, with only two MEPs voting against.

While the report accepts the individual member state targets as set out in the original Commission proposal the Turmes report calls upon the EU to set interim targets, backed by fines of up to €110 per megawatt (mw) for those who fail to meet them. Member states that achieve greater savings should be rewarded (e.g. €30 to €40 per mw).

The report supports the previous joint proposal of the UK, Germany and Poland that would allow Member States to engage in joint renewables projects and record mw increases as progress towards their individual targets, allowing the percentage of renewable energy increase achieved in each project to be shared between the participants based on the level of commitment of each Member State.

The report also includes language designed to give renewable energies priority access to existing energy grids. Member States would also be encouraged to introduce new rules to

promote (or oblige) the use of renewable technologies in new and existing buildings.

Biofuels. On the issue of biofuels, the report called for a 5% share of renewables in transport fuel by 2015 and a 10% target by 2020. The text specifies that at least 20% of the 2015 target and 40% of the 2020 goal must be met from ‘non-food and feed-competing’ second-generation biofuels or from cars running on green electricity and hydrogen. Importantly the report demands a full review of the whole EU biofuel promotion policy before 2015 focusing upon its social and environmental impacts to determine whether the targets need revising.

Although welcomed by many NGOs, biofuel producers assert that the new text would effectively translate into a 4% biofuel target by 2015 – a regression compared to the original 5.75% target by 2010 set in 2003 and upon which the industry has already made significant and irreversible investments.

Further, the report specifies that traditional first-generation biofuels, (e.g. those made from crops such as sugar, rape or corn) would count towards the target only if they meet strict sustainability criteria. The report also introduces an obligation for biofuels to offer at least 45% carbon emission savings compared to fossil fuels – a figure that would rise to 60% in 2015. This is considerably higher than the original Commission proposal of 35%, rising to 50% by 2017.

The Turmes report will receive its first reading in the Parliament on 8 October 2008. The Council will discuss the issue during its Autumn Energy Council meetings, with political agreement

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expected on or before 8 December 2008. Wind. In a related matter, the Commission is due to present an action plan on offshore wind this autumn following on from its consultation which closed in June 2008 (October/November 2008). The proposal will be part of a wider EU Strategic Energy Review. The plan will include recommendations on how to coordinate member states’ efforts to realise large-scale offshore wind projects. EMISSIONS TRADING SCHEME Proposal Directive EU Emissions Trading Scheme (EU-ETS) (amendment) Current status The Commission proposals for post 2013 were published in January 2008 and including extending its scope to include new sectors and new gases, a further cap on emissions and an increase in the auctioning of permits. The issue is currently being discussed in the Parliament. What’s happening? The European Parliament’s Industry (ITRE) Committee voted to endorse a report on the Commission’s proposed revision of the EU-ETS produced by rapporteur Lena Ek MEP.

The report supports the Commission’s original proposal to grant no further free emissions permits to the power generating sector after 2013, so compelling all electricity producers to purchase the necessary permits at auction. The move is a blow for electricity generators who have

consistently argued that such a move would constitute a significant tax on their operations, and would likely lead to increased energy bills. The report also covered the issue of special treatment for energy-intensive sectors that may be affected by outside competition from countries with less stringent CO2 emissions reduction schemes (‘carbon leakage’). The report states that if this issue is not addressed by international agreement, the Commission should list the sectors which could benefit from exemptions from the EU ETS by 1 June 2010 at the latest (one year earlier than the Commission’s proposal).

The report also calls on the Commission to bring forward a proposal to include shipping within the ambit of the EU ETS, since the emissions from this sector are currently unregulated.

One final controversial component of the report is its demand that 50% of the monies raised from auction should be used to fund clean technology or anti-deforestation projects. Presently the Council has stated that the monies should be spent at the discretion of the member states.

The (lead) Environment Committee is currently examining a raft of amendments to the report of Avril Doyle MEP, and is likely to progress to a an early vote on the document (7 October 2008). The first reading on the report is likely to take place on 16 December 2008. In the interim, Council is expected to examine the issue at each of its up coming Energy Council meetings, with political agreement expected on or by 8 December 2008.

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TRIO PRESIDENCY especially in the context of the current Georgia crisis, as well as the Eastern partnership initiative, upgrading transatlantic relations following the US elections and keeping the EU's door open to the Western Balkans.

Proposal N/A Current status To provide for greater continuity between Council Presidencies, a ‘trio’ arrangement is in place whereby the three upcoming holders of the office co-operate on priorities. France is the first of the trio and will be followed by the Czech Republic in January 2009 and Sweden in July 2009.

Key issues Climate change. The trio has committed to securing agreement on the energy and climate change package before the end of 2008 allowing for its adoption in early 2009. The results will form the EU position at the upcoming UN Climate Change Conference to take place in Copenhagen in 2009.

What’s happening? Representatives of the trio presented their updated priorities to the European Parliament (2 September 2008). Full details of the programme can be found here.

Following examination of the upcoming Strategic Energy Review by the European Council in Spring 2009 a second Action Plan on Energy Policy for Europe will be prepared covering the years 2010 to 2013.

France’s Europe Minister, Jean-Pierre Jouyet, said that the entry into force of the Lisbon Treaty was the main priority for all three presidencies. Although he hinted that he expected the Treaty to be adopted during the Swedish Presidency, Swedish European Affairs Minister Cecilia Malmström was more reticent about dates, stating that the objective of her country’s presidency was to focus on strengthening the role of Europe ‘independently of what treaty the Union has’. Malmström also emphasized the importance of the energy and climate package and the Lisbon Strategy for economic, social and environmental renewal.

Lisbon Strategy. The trio will focus on following up the Single Market Review. Importantly the presidencies will also undertake action to ensure financial stability. The focus on SME’s begun by the French with their Small Business Act for Europe will also be continued by the other partners. CAP. The proposals contained within the ‘Health Check’ will be shepherded to their conclusion by the trio, and further work undertaken for future reform as part of the budget revision. Budget. The three Presidencies are also committed to undertake a comprehensive reassessment of EU spending and resources, to be carried out following a Commission review in 2008/2009 which will cover all aspects of EU spending (including the CAP), and

Czech Deputy Prime Minister Alexandr Vondra outlined the current situation in the Czech Constitutional Court and stated that he expected a decision in the autumn when the debate would then come back to the Parliament. Vondra stressed issues such as energy security,

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of resources, (including the UK rebate). Justice. The Presidencies will work to develop a successor to the Hague Programme covering the years 2010 to 2014. LISBON TREATY Proposal The Lisbon Treaty Current status Following the no vote in the Irish referendum, the ratification process has continued in other countries while EU officials, under the direction of the French Presidency, have attempted to resolve the political crisis created by the vote. What’s happening? The Irish Government is exploring routes through the current impasse. Research conducted by consultants, working on behalf of the Irish Government, has identified two particular concerns of the Irish people: the loss of a permanent Irish Commissioner and the fear that Irish young men will be conscripted into an EU defence force.

The research would indicate that two likely components of any compromise deal with Ireland would include defence opt outs, together with revision of the treaty section dealing with the number of Commissioners (a move which would find considerable support amongst other Member states). These moves were confirmed by the Irish Foreign Minister, Micheál Martin, who expressed regret that withdrawal from EU security policy would preclude the Irish army participating in the peace-keeping missions (7 September 2008).

The French EU Presidency has already indicated its willingness to consider possible guarantees the Irish might like to have added to the treaty, notably as regards their neutrality, religious values, abortion, taxation or aid schemes for certain professions. Further, keeping the present system of one commissioner per country may not be as difficult to achieve as first suspected. Such a measure could be adopted following the establishment of an intergovernmental conference.

A second referendum is expected to take place, but only when indications are that such a vote would result in endorsement of the ratification process. Consequently no vote is expected to take place before the end of the current Commission mandate (meaning that the original timetable, with the Treaty coming into force on 1 January 2009, will have to be abandoned). Early indications are that a vote could be scheduled for early in 2010.

In a related matter, the Czech Constitutional Court has indicated that it is prepared to begin the examination of the Lisbon Treaty to establish whether it is consistent with the country’s constitution (31 August 2008). The court was asked to check the legality of the Treaty by the Czech Senate in April 2008. The chairman of the court was unable to give any indication of how long the judges will take to complete their task.

Even if the Court does declare the new treaty constitutional, parliamentary ratification is far from certain. While the lower chamber is expected to approve the text, the outcome in the Senate cannot be predicted due to a strong eurosceptic faction within the body.

Czech President Vaclav Klaus has

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recently confirmed that he will not sign-off his country’s Lisbon Treaty ratification unless Ireland ratifies first (25 July 2008). However, he did state that if the court rules that the Lisbon Treaty and the Czech Constitution contradict one another, there would be good reason to change the country’s constitution

Finland completed the ratification process (12 September 2008), with the Finnish president signing the procedure of ratification following a vote in the Parliament in June 2008. EU SOCIAL AGENDA Proposal The EU Social Agenda is a package containing directives covering equal opportunities, cross border health, and revising the rules governing European Works Councils. Current status The Social Agenda was launched in July 2008 to coincide with the beginning of the French Presidency of the EU. The French remain strong advocates of the social dimension of the EU. What’s happening? Commissioner Spidla, responsible for Employment & Social Affiars, presented the Social Package to the European Parliament (2 September 2008). He highlighted two measures: the draft Discrimination Directive and the revised Directive on the European Works Council.

Spidla stated that the equal opportunities directive would aim to ban discrimination on grounds of sexual orientation, religion and disability outside the workplace, and would bring member states, businesses and citizens

‘more clarity and legal certainty’. However, he went on to say that, ‘this does not mean that uniform rules have to be applied everywhere. For example, in insurance or banking it will still be possible to treat people differently based on age and disability.’

On the European Works Council Directive, Spidla stated that the 820 works councils currently in place across the EU ‘have not fully fulfilled their role. Employees are often not properly informed and consulted regarding company restructuring. This initiative aims to strengthen social dialogue in companies at the supranational level’. The issue of equality will be discussed at the second European Equality Summit in Paris (29 – 30 September 2008).

On the Cross Border Health Directive, British MEP John Bowis has been appointed rapportuer (28 August 2008). OTHER NEWS • Territorial Cohesion. A green

paper on territorial cohesion will be issued by the Commission, 23 September 2008. The document is expected to: (1) propose a clear EU definition of ‘Territorial Cohesion’, and (2) pave the way for a public debate on how to better take into account the territorial dimension within EU and national sectoral policies and programmes. The EP Regional Development Committee has appointed Lambert Van Nistelrooij MEP rapporteur. The first reading in the Parliament has been scheduled for 20 January 2009.

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• Common Fisheries Policy ‘Health Check’. Fisheries Commissioner Joe Borg announced a health check of the CFP in July 2008. The base CFP regulation will undergo reform in 2012, and the health check is expected to take the form of a consultation launched early in 2009. In the interim a discussion will take place at the next meeting of the College of Commissioners (18 September 2008) and the discussion paper may emerge. A second discussion paper is currently being prepared by the French Presidency for the informal meeting of fisheries ministers scheduled for 29 September 2008.

next bulletin. • European Evidence Warrant. The

Council has invited Parliament to deliver its opinion by 23 October 2008 at the latest.

• In absentia judgements. The

Council is expected to adopt the framework decision at one of its Autumn meetings (despite a series of amendments tabled by the EP’s Civil liberties Committee, 24 June 2008).

• Health consultation. DG SANCO (Health) is currently seeking views on priorities for its annual work plan for 2009 (14 August 2008). The overall aim of the plan is to improve citizens’ health security, promote good health, and to generate and disseminate health information and knowledge. Details can be found

• Fisheries technical measures. The EP Fisheries Committee will hold a public hearing on the issue of technical measures to gather the views of experts and representatives of the fishing sector (7 October 2008). The hearing is intended to allow an assessment of a new European Commission proposal on technical measures.

here. The deadline is 30 September 2008.

• Cod recovery. The Fisheries

Committee endorsed Niels Busk’s report on the Commission’s Cod Recovery Plan (8 September 2008). The proposal will be examined by the Fisheries Council (29 September 2008) and is likely to have its plenary reading 20 October 2008. The final act is scheduled for adoption 17 November 2008.

• West of Scotland Herring. A hearing on the issue of herring management took place in EP Fisheries Committee (8 September 2008), and was addressed by representatives of Scottish fishermen. Struan Stevenson MEP is the rapporteur on this dossier. Further details will be provided in the

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approved by the Council of Ministers is ultimately adopted, the Scottish trading arrangements would not be affected by the Directive and could continue in their current form. If however, say Scottish and Southern, the Parliament's preferred option of full ownership unbundling is adopted, then they would be opposed to it.

JOHN PURVIS MEP UNBUNDLING AND THE ISO THE LONG HOT SUMMER: EP ENERGY DEBATE The European Parliament has presented the 27 EU governments with a major challenge by voting for the break-up of the energy groups as the only way of freeing up gas and electricity markets.

In July, MEPs voted for a compromise in gas unbundling which stops short of splitting up companies that both supply gas and own gas pipelines in the EU, but with tougher rules on supervision. This would leave ownership of pipelines with gas supply companies, but hand management over to an independent transmission operator.

As fuel charges spiral, altering the framework within which the energy industries operate is more vital than ever. At the heart of the Third Energy Package are plans to separate the operation of gas pipelines and electricity networks (“unbundling”) from production. This means the companies cannot generate power and own the grid, to allow more competition, encourage investment in outdated infrastructure. It is hoped it will also increase investment in renewable energy.

So, the European Parliament voted for unbundling in electricity but, when it came to the vote for gas, the majority went for the much less radical compromise. This would mean other EU countries having an ISO for gas operations, similar to the existing Scottish system for electricity.

My view is that, without total ownership unbundling, the scheme will simply not work. We cannot have some countries unbundled, the UK for example, and others not at all. Where is the level playing field in that? The competitive pricing we had hoped for as a result of this radical change will be non existent.

The European Parliament vote in June on the second reading of the report on unbundling in electricity was difficult for the industry in Scotland. My Industry, Research and Energy Committee had previously rejected the European Commission’s alternative proposal that firms could hand over control of their transmission assets (and investment and commercial decisions) to an Independent System Operator (ISO). This already exists in Scotland. However, an amendment approved by the Council, effectively provides a derogation for those countries that already have in place a robust system operator scheme at the time the Directive comes into force. Both Scotland and Northern Ireland would be covered by this. Therefore, if the text

Almost two out of three delegates also backed a plan for the commission to present, within five years of the new gas laws being passed, the feasibility of creating a single European transmission system operator. This would look at the pros and cons of an integrated European transmission network. The creation of such an operator would mean that individual network owners would pool their assets and retain shares of the institution.

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The UK offshore industry's initial view is that the report is a significant improvement on the Commission's original draft. They say the EP's amendments would serve to make the law more specific and create a clearer regulatory framework than the Commission's draft. This is essential to attract substantial investments in indigenous gas production and infrastructure across Europe.

National governments must now discuss parliament's vote before handing back comments and changes. Governments, the European Commission and European Parliament want to finalise a package of laws on energy and environment by the end of 2008. The hope is the laws will improve Europe's energy efficiency, stem rising energy costs and lower the bloc's dependence on fossil fuel imports. Contact details: John Purvis MEP PO Box No 29222, St Andrews KY15 8WL Tel. : +44 (0)1333 340 325

(press contact, Frances Donald)

email: [email protected]

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UPCOMING EVENTS & MEETINGS September 2008 19 – 20 Transport Council 21 - 23 Informal meeting of

agriculture ministers (Nancy) 25 – 26 JHA Council 29 Fisheries Council examination

of Cod Recovery Proposals 29 Visit of members of the

Scottish Parliament’s European & External Relations Committee

October 2008 7 EP PECH Committee to discuss

technical measures 7 EP ENVI Committee will

discuss the Doyle report on the Emissions Trading Scheme

8 EP Plenary discussion on energy package

9 – 10 Energy Council 16 – 17 European Council 20 – 21 Environment Council 29 – 30 Agriculture & Fisheries

Council. CAP Health check will be on agenda, and food aid.

24 JHA Council 27 – 28 Agriculture & Fisheries Council 29 – 30 European Equality Summit

(Paris) 30 Deadline for closure of DG

SANCO consultation on its 2009 work programme.

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CONTACT DETAILS Dr Ian Duncan Rond Point Schuman 6 B – 1040 Bruxelles Tel: 0032 2282 8377 Fax: 0032 2282 8379 Email: [email protected]

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EU/S3/08/15/5

European and External Relations Committee

15th Meeting 2008 (Session 3)

Tuesday 23 September 2008

EU Budget review – witness expenses

Introduction 1. Under Rule 12.4.3 of the standing orders, the Committee may arrange

for payment of expenses incurred by any witness invited to give evidence at a committee meeting. Reimbursement is entirely at the discretion of the Committee.

2. The witness expenses scheme was established by the Parliament on 6

July 2000 (motion S1M-1086) and sets out the categories of claim that may be considered.

Recommendation 3. The Committee is invited to delegate to the Convener responsibility for

arranging for the SPCB to pay, under Rule. 12.4.3, any witness expenses which arise during the Committee’s inquiry into the EU Budget Review. However, in the event of the Convener rejecting a claim, it will be referred back to the Committee for consideration.

Committee Clerk September 2008

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THE FRENCH PRESIDENCY OF THE EU The French Presidency of the EU began on 1 July 2008. The four declared priorities for the Presidency are energy and climate change, migration, agriculture, and security and defence. The establishment of a Mediterranean Union will also be important. The French also intend to return to the Lisbon Treaty at the European Council meeting of 16 – 17 October 2008. The following document details issues of potential interest to the committees of the Scottish Parliament grouped according to theme:

• Economics & Enterprise • Energy & Climate Change • Rural Affairs and Environment • Justice & Home Affairs • Social Policy (including Health) • Mediterranean Union

ECONOMICS AND ENTERPRISE Key priorities. The French Finance Minister, Christine Lagarde, outlined the economic priorities of her country’s Presidency during an address to the European Parliament (15 July 2008). She stated that it was likely that the Presidency would be dominated by the global financial situation in general and in particular rising fuel and food prices. A Roadmap on Financial Stability will be launched in the autumn which will seek to encourage greater transparency in the markets, greater responsibility within financial institutions and the development of a system of supervision of trans-European financial groups. Regarding specific legislative developments the Solvency II package (aims to overhaul fundamentally the EU insurance sector, 18 July 2007) would be a priority. She said that she was confident of securing political agreement on the outstanding cross-border issues by the end of 2008. Ms Lagarde also highlighted the Commission’s to reduce VAT on labour-intensive services, such as catering in restaurants. The Finance Minister was more circumspect regarding the issue of reducing VAT on fuel, following the earlier rejection of such measures by Eu Finance Ministers. She said that progress on the issue could only follow common agreement amongst all member states. Ms Lagarde did stress that her country would not question the autonomy of the European Central Bank (ECB), a fear which had arisen following President Sarkozy’s earlier comments on the issue before the European Parliament (10 July 2008). However she did state that it was important to have a robust dialogue with the bank particularly during a period of economic crisis.

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Lisbon Strategy for growth and jobs. Member States will present their new national reform programmes in October 2008. The French will be instrumental in utilising these programmes to co-ordinate the setting of the priorities for the 2008-2010 Lisbon cycle. An assessment of the veracity of the new integrated guidelines will also be undertaken during the French Presidency. The French will also initiate the discussion into the future of the Lisbon Strategy beyond 2010. Much of the work will be undertaken by the group of national Lisbon co-ordinators, working in conjunction with the Commission and the future holders of the Presidency (in particular the Czech Republic and Sweden). Small Business Act (SBA). The French will seek agreement on the SBA, and in particular will focus on access to funding, especially for innovative SMEs, on integrating the internal market to the advantage of SMEs by adopting the idea of the European Private Company and on improving the protection of industrial property rights and promoting entrepreneurship. It will also continue the efforts to facilitate access for SMEs to public markets and to simplify the administrative and legal situation for SMEs. Sustainable industrial policy. The Commission published its Sustainable Consumption and Production package (16 July 2008). The French Presidency intends to use the proposals to push for a low carbon emission economy by promoting low-carbon technologies, defining common norms and standards for environmental performance and by stimulating demand. Budget review. The Commission is expected to publish a white paper on the review of the budget before the end of 2008. The document is expected to outline the current thinking on funding of the CAP and the reform (or abolition) of the British rebate. However, substantive progress on budget revision will have to wait until after the swearing in of the new Commission in Autumn 2009. Better regulation. France intends to continue the ‘Better regulation’ initiative, and will give particular focus to ensuring that Community legislation is more accessible. ENERGY AND CLIMATE CHANGE The energy package. The French have prioritised securing agreement on the third energy/climate change package. The package contains four distinct elements: (1) a framework directive on renewable energy; (2) a directive on the geological storage of carbon dioxide; (3) a decision on the division of effort among the member states; and (4) amending the Emissions Trading Scheme (ETS). Discussion on the package began with the informal energy/environmental ministerial meeting in Paris (3 – 5 July 2008).

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The French are optimistic that agreement can be secured and intend the four themes to form the basis of the EU position at the Poznań Conference on climate change, scheduled for December 2008, and the later UN Conference on climate change to take place in Copenhagen in 2009. The French are also particularly keen to develop the financial incentives necessary to allow developing countries to adopt low emission technologies. The French Energy Minister, Jean-Louis Borloo, discussed the French priorities with members of the European Parliament (16 July 2007). In response to a series of questions he stated that the French Government will seek to identify energy-intensive sectors that that might qualify for exemption from the Emission Trading Scheme by October 2008. The purpose of such exemptions will be to ensure that these sectors are able to compete in a global market where competitors are not subject to such restrictions. It should also avoid industries leaving the EU for countries with more lax regulation. He also stated that revenues obtained from the auctioning of emissions permits under the ETS should be channelled into improving energy efficiency in the buildings, transport and energy sectors. The Minister also sought to clarify the confusion that surrounded the recent statement from the Energy Council (3 – 4 July 2008) regarding biofuels in transport. The Commission’s original stipulation was for 10% of the EU’s transport fuels should come from renewable resources by 2010, which had been widely interpreted as biofuels. However, following the linkage between biofuels and food price increases, the French Minister has stated that the stipulation does not insist upon biofuels, but rather any renewable resource. Energy security. The liberalisation of the electricity and gas markets (‘energy unbundling’) will be steered to (near) conclusion by the French Presidency, although final sign off is likely to take place during the Czech Presidency. This will be a significant test for the French, since the European Parliament has voted for full unbundling of the electricity markets (17 June 2008) but rejected this proposal for the gas market, favouring retention of the supply and transmission grid by energy companies (8 July 2008). France (along with Germany and others) has thus far been a strong critic of energy unbundling. As part of the promotion of security, the French intend to prioritise energy efficiency. The continued rolling out of proposals under the EcoDesign Directive is likely to lead to legislation to address such issues as electrical appliances on standby and inefficient light bulbs. The Energy Performance of Buildings Directive will also be progressed. Both directives are likely to be concluded during the Czech Presidency. A number of bi-lateral discussions with energy producing, consuming and transit countries will take place during the French Presidency (Russia, Ukraine, China and India). Rising fuel costs. The French, together with the Commission, have committed to examine the feasibility and the impact of measures aimed at limiting the effects of

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the surge in oil/gas prices. A report is to be submitted to the Heads of Government Council, 16 – 17 October 2008. Other energy issues. The French, Czech and Swedish Presidencies will pursue work on the implementation of the Strategic Energy Technologies (SET) Action Plan, (endorsed by the Heads of State and Government in March 2008). The plan will aim to improve cooperation between research, competitiveness, environment and energy policies across the EU. RURAL AFFAIRS AND ENVIRONMENT Agriculture. The French Presidency’s priority is to ensure the conditions for political agreement on the Common Agricultural Policy (CAP) ‘Health Check’ in November 2008. The first substantive discussions began under the Slovenian Presidency with the French adding impetus to the issue at the informal minister meeting scheduled for 21 – 23 September 2008 in Annecy, France. The future of the CAP post-2013 will also be on the agenda for the informal meeting. The debate around the CAP will also feed into the discussions on the future financial perspectives scheduled for 2009/10. The key proposals of the Health Check are: (1) abolition of 10% set-aside rule for arable farmers; (2) phasing out milk quotas; (3) revision of the cross compliance rules; diverting greater funds from direct aid to rural development; (4) abolition of further intervention mechanisms; (5) abolition of energy crop premium; (6) (near) full decoupling of farm support. General Food Policy. The French intend to progress two particular issues: 1. The distribution of fruit and vegetables in schools. The Commission

launched a proposed regulation on 8 July 2008 supporting the establishment of a scheme for the free distribution of fruit and vegetables in schools. The French hope to secure agreement on the proposal by December 2008. A round table meeting on obesity will take place in Beauvais, France on 22 October 2008.

2. Reform of the European aid programme for the most deprived. A proposal on this issue will be submitted by the Commission in autumn 2008. The current Community legislation promoting aid for the most deprived is based on the existence of Community intervention stocks. In view of the marked reduction in these stocks, the French are promoting a fundamental revision, within the framework of the CAP.

In addition, the Commission will publish a green paper on the quality of agricultural products in autumn 2008. The document will address all quality-related issues and will include a section on official quality symbols.

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Animal health, food safety and plant protection. The French intend to secure a second reading agreement on the Pesticides directive (following discussion at the Summer 2008 Council). A conference on pesticides will take place in November 2008. The French Ecology Minister, Nathalie Kosciusko-Morizet, has also stated that she would like to kick-start discussions on the stalled Soil Thematic Strategy. The French also hope to secure second reading agreement on the maximum limits for residues of veterinary medicinal products, following the first reading in the Parliament (17 June 2008). France hopes to progress the animal by-products regulation, allowing for adoption during the Czech Presidency. Food safety and security issues are to be addressed at a major conference scheduled for 8 – 9 September in Angers, France. The Animal Health Action Plan is likely to be tabled in September 2008, and the French are keen for the December Agriculture Council (17 – 19 December 2008) to drawn Conclusions. However, the General Animal Health Law which will seek to consolidate extant legislation and streamline current practice is unlikely to emerge this side of the formation of the new Commission in Autumn 2009. Forests. The Commission intends to publish two communications covering (1) sustainable management of forests (September 2008); and (2) deforestation (October 2008). Both communications will be instrumental in developing the EU position for the upcoming UN Forum on Forests (April 2009).

Maritime issues. Following the adoption of the ‘blue book’ on the management of the EU’s maritime resources, the French intend to highlight four areas for action: (1) reinforcement of maritime governance, particularly through the consolidation of national high-level focal points; (2) the development of a maritime surveillance network; the protection of the marine environment; and (4) marine/maritime research. Fisheries. The French Presidency, together with the Commission, intends to undertake a ‘Health Check’ of the Common Fisheries Policy (CFP), with a view to considering the procedures for managing fishing quotas. The September 2008 informal meeting of fisheries ministers will focus on this topic. The French also intend to organise a conference of scientists and fishermen to improve dialogue and to propose fresh working methods between scientists and the fishing sector. The French will examine the management of deepwater species at the October 2008 Fisheries Council. The Presidency will continue to progress the outstanding fisheries management issues (regulation on technical measures, reform of the Community fisheries monitoring framework, revision of the cod recovery plan, formulation of a plan for West of Scotland herring), with agreement expected by December 2008, or during the Czech Presidency. The French are hopeful that the Cod Recovery Plan will be signed off during the 24 – 25 November 2008 Fisheries Council Meeting, while agreement on the West of Scotland Herring issue is expected during the end-of-year fisheries negotiations (17 – 19 December 2008). The

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French will also place special emphasis on the sustainable development of aquaculture. The French Presidency managed to broker agreement at the Fisheries Council meeting of 15 July 2008 on the issue of support for fishermen facing difficulties over rising fuel costs. The measures include allowing governments to raise the aid cap for fishing enterprises to €100k over a 3-year period, up from the current €30k. Actions to reduce fishing fleet overcapacity and fuel dependency and raise the sale value of fish were also approved. It is possible that the French will re-visit this issue in the autumn 2008. JUSTICE & HOME AFFAIRS The French had expected that all outstanding JHA dossiers would fall with the enactment of the Lisbon Treaty (or require significant amendment to comply with the new Treaty requirements). Consequently they had to focused on finishing dossiers inherited from the Slovenian Presidency rather than launching new. The late negative Irish vote will not effect this approach. Immigration. The principal justice issue to be progressed during the French Presidency will be immigration and asylum. To that end the French will launch a Pact on Immigration and Asylum at the Heads of Government Council scheduled for 15 October 2008. Drugs. The French will be responsible for bringing to completion the new action plan for drugs to cover the years 2009 – 2012. The French will also champion the creation of an Anti Drugs Co-ordination Centre (CECLAD-M) to be based in the western Mediterranean area. Judicial/Police co-operation. The French will be responsible for securing the adoption of the Decision integrating the main provisions of the Prüm Treaty, which will facilitate the sharing of information, e.g. DNA files, finger prints, vehicle registrations etc. The French will also seek the adoption of a framework decision on the creation of a European information system on criminal records (ECRIS), enabling them to be linked together. To counterbalance this the French will aim for the early adoption of the new Framework Decision on data protection. The French will also oversee the final integration of the European Police Office (Europol) within the EU legal system. The French Presidency will also finalise the Framework Decision on judgements in absentia, mostly completed under the Slovenian Presidency. If time permits, the French may reignite negotiations on the stalled Framework Decision on the European Supervision Order (which was substantially redrafted in December 2007). Family law. The French are optimistic that they can secure adoption of the regulation on maintenance obligations and applicable law in divorce. However,

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since the Lisbon Treaty is unlikely to come in on 1 January 2009, there is less urgency to secure progress before the end of the year. The Czech republic has given a commitment to taking action if the French are unable to steer the dossiers to completion. Future justice issues. The French will also begin discussion on the successor to the Hague Programme (which expires in 2010). This work will be taken forward by both the Czech and Swedish Presidencies. It is expected that the French will place greater emphasis on disaster management and civil protection. The French are also likely to promote the development of the Commission’s Monitoring and Information Centre into a formal management co-ordination centre Other issues. The French Presidency staged a conference on training for judges and legal professionals (21 -22 July 2008), and aims to launch training courses on various aspects of European law (e.g. terrorism, the care of minors, access to the law, mediation, alternative penal sanctions) in September 2008. The French will also seek to adopt a Community Programme to protect children when they are using the internet. The French Presidency will also begin the review of the regulation on jurisdiction, recognition and enforcement of judgements in civil and commercial matters (known as the Brussels I Regulation). SOCIAL POLICY (including HEALTH) The French are particularly keen to enhance European social solidarity. The principal instrument to this end, ‘The Renewed Social Agenda’ (2 July 2008), is a suite of measures covering workers rights, anti-discrimination poverty & social exclusion and cross-border health issues. A European forum on services of general economic interest will take place 29 -30 October 2008. Workers’ rights. The European Works Councils Directive results from the failure of national governments to transpose an earlier (1994) directive with a similar purpose. The directive will compel companies with 1000+ workers of which at least 150 are based in a second EU Member State to establish councils. Although there is general support for such proposals amongst trade unions, there is some concern in the business community about the likely increase in bureaucracy. A conference on workers’ rights will take place 11 – 12 September 2008 focusing on issues of trans-national mobility and ‘flexicurity’. Anti-discrimination. The Commission would like to extend anti-discrimination measures ‘beyond the workplace’. The provisions will cover areas such as education, recognition of marital or family status, adoption and reproductive rights. Churches and other religious organisations will not be affected by the new legislation. The package also includes a report on Europe’s Roma community a

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further commitment to the strengthening of the integration of a gender issue ‘mainstreaming’ in all EU policies. The French are also considering the prospect for legislative proposals in September 2008 to cover ‘leave’ arrangement (including paternal, adoption and filial leave) Cross-border health directive. The (controversial) directive (2 July 2008) was much delayed and is now unlikely to complete its legislative journey this side of the European Parliamentary elections. The directive aims to clarify the right of patients to seek health care in other member states with the costs reimbursed by the patient’s national health care provider. The Directive will be discussed in the Council Health Working Group in September 2008 when Member States will make their positions clear. France aims to complete as much of the clarification of the legal position as it can, with the Czech Republic likely to focus on entitlements, reimbursement, etc. and co-operation issues. In a related matter, a Recommendation on the cross-border interoperability of electronic health records will be issued in the Autumn, with the aim of facilitating patient mobility. Other social issues (not in the Social Agenda Package) Alzheimer Disease. The French Presidency intends to launch an action plan to address the needs of Alzheimer’s sufferers. There are to be three strands to the plan: health, solidarity and research. The French intend to foster the sharing of good practice and health care initiatives. France is also likely to promote the disease as one of the topics for funding under the European research budgets. A major conference on the issue has been scheduled for 30 - 31 October 2008. A Communication on ageing will also be issued in the autumn. Health Communications. During the French Presidency a number of communications are expected to emerge covering: (1) health inequalities; (2) telemedicine and innovative IT tools for chronic disease management; (3) health care-associated infections. A Green Paper is also expected on the EU health care workforce that will consider the challenges posed by an ageing Community, mobility issues and technological change. Equality. The French Presidency intends to stage a number of conferences on equality issues. A summit on equal opportunities will be held in Paris 29 - 30 September 2008. A conference and a meeting of Ministers will also take place on the subject of professional equality between men and women on 13 - 14 November 2008. The French intend to support the Commission initiatives to amend Directive 92/85 of 19 October 1992 on maternity leave, Directive 96/34 of 3 June 1996 on

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parental leave, and Directive 86/613 on equal treatment between men and women engaged in an activity, including agriculture, in a self employed capacity. The Presidency will also support initiatives aimed at promoting full recognition of the rights of women in Europe. Education. A number of educational/training initiatives will be driven forward during the French Presidency. There will be a greater focus on the French language, with more emphasis on business in French in all Council meetings. There will greater prominence given to language diversity. The French will also be responsible for the final decision on the ‘Erasmus Mundus’ programme for 2009-2013, which fosters student/teacher exchange. A conference will be staged on training for young people as a way of improving career mobility (November 2008). A conference will also take place on addressing the problem of children leaving school with no qualifications (September 2008). The French Presidency will launch activities aimed at defining a ‘vision for 2020’ for the European research area. In this context, ministerial debates will be held on the main challenges confronting European research, e.g. energy and climate change, food and agronomy, health and ageing, and the information society. MEDITERRANEAN UNION The Union was launched on 13 July 2008 in Paris, and marked with a joint declaration. The Union consists of all 27 EU members, the 12 Mediterranean Countries currently members of the EU’s Barcelona Process and the four Balkan countries bordering the sea. It is intended that summits of all the partners will take place every two years. The key objective of the new body is to establish a Mediterranean free trade area by 2010. Other objectives include the ‘de-pollution’ of the Mediterranean Sea, land and sea motorways, a civil protection network, a plan to boost the use of solar energy in southern countries, a Euromed University and a programme to encourage the development of small and medium-sized businesses. Water access may be added in years to come. The summit’s final declaration stated that the Mediterranean Union, ‘will be independent from the EU enlargement policy, accession negotiations and the pre-accession process’, thereby mitigating Turkey’s concerns regarding relegation to a lower tier than full EU membership. European and Mediterranean foreign ministers will meet again in November 2008 to progress the matter.