There is a link to the European Council’s conclusions [to be adopted] 17 June 2010, but otherwise the European Commission’s central website for the Europe 2020 strategy for jobs and growth is still as dead as the dodo.
While waiting for the Commission, the Council, the European Parliament and the member states to start communicating the Europe 2020 strategy in earnest, we continue looking for elements of the flagship initiative Innovation Union.
We already looked at Innovation Union in the light of the Commission’s communication on the Europe 2020 strategy: COM(2010) 2020 final.
With China about to close the innovation performance gap in ten years, one would expect the European leaders to be shaken as well as stirred into action. The Commission’s Work Programme (CWP) for 2010, and especially the so called Roadmap published by the Impact Assessment Board (IAB) on the initiative Research and Innovation Plan added useful elements to our knowledge.
DG Enterprise and Industry
The home page of the European Commission’s Directorate-General Enterprise and Industry offers two links to the Europe 2020 strategy.
The text link takes us to a page with a general description, which mentions the European Council 26 March 2010. It offers a further link to the central Europe 2020 web page we already gave a preliminary death certificate.
The graphic link of DG Enterprise takes us directly to the central Europe 2020 web page, but naturally the contents remain the same.
Do we fare any better if we look under Innovation policies? Future EU innovation policies catches our eye.
Yes, we do find materials on preceding public consultations held in 2009, but nothing really new or concrete about the European plan for innovation (Innovation Union) being prepared for presentation in the autumn 2010.
The website of commissioner Antonio Tajani does not add anything on EU2020.
DG Enterprise and Industry should start communicating comprehensively on the preparation of the flagship initiative Innovation Union.
DG Research
The home page of DG Research tells us that commissioner Máire Geoghegan-Quinn arranged a webcast for EU citizens about Innovation Union 17 June 2010. She discussed with participants in an open and convincing manner, and she has promised to post answers to frequently asked questions she was unable to reply to during the webcast.
There is also a frequently updated Innovation Union Facebook page and a group with 318 members.
This is a good start, and the use of interactive communication and social media is promising.
Still, the Press centre and the Facebook group offer mainly disparate news “shrapnel”. The next step could be to create well structured thematic pages for Innovation Union and to contribute to turning the central Europe 2020 web page into a constantly updated website.
Ralf Grahn
Showing posts with label industry. Show all posts
Showing posts with label industry. Show all posts
Monday, 28 June 2010
Tuesday, 13 January 2009
EU defence industry and market: Is there a future?
A year ago the Commission assessed the prospects of the defence technological and industrial base (DTIB), a prerequisite for the European Security and Defence Policy (ESDP). Little bang for the buck (or euro), was the finding.
While the defence budget of the United States is “only” twice as large as that of the European Union member states combined, the qualitative differences are much greater. Most of the European defence budgets are swallowed by upkeep of national armies. The USA devotes some 35% of its total budget to investment compared to only about 20% in Europe. The US outspends Europe by six to one in defence research and development (R&D).
Moreover, R&D investment in Europe is fragmented along national lines, leading to duplication and waste of scarce resources.
The common European security interests are fulfilled poorly, but in addition fragmented defence industries and markets face a bleak future.
***
European defence industry
Since defence spending and defence industries are largely in the domain of the member states, the Commission in its Defence package chose a cautious approach to improving the situation.
The main findings as well as the reasons for and policy measures for improvement were laid out in the Communication A strategy for a stronger and more competitive European defence industry (Brussels, 5.12.2007 COM(2007) 764 final) and in two accompanying Staff Working Documents, an impact assessment (SEC(2007) 1596) and an impact assessment summary (SEC(2007) 1597).
The documents are available through the Commission’s DG Industry and Enterprise web page Towards an EU Defence Equipment Policy:
http://ec.europa.eu/enterprise/defence/eu_defence_policy.htm
They form the basis for two proposed Directives and a number of issues seen as maturing only in the middle or the long term.
***
Why Europe?
The security and prosperity of EU citizens is the short answer to why we need the European Union (a better EU, for sure). But most people need concrete examples of policies where the nation states are increasingly ill equipped to deliver the public goods on their own and where the European Union can (or could) offer more.
Climate change, energy, financial supervision and the euro have been in the headlines lately. They all show the need for more Europe, not less. Defence and related industries are among the long line of other policy areas, where the needs for improved European policies are compelling.
The Communication on the European defence industry is worth reading, and it will serve as the starting point for a couple of blog posts on the proposed legislative measures, including defence procurement.
Ralf Grahn
While the defence budget of the United States is “only” twice as large as that of the European Union member states combined, the qualitative differences are much greater. Most of the European defence budgets are swallowed by upkeep of national armies. The USA devotes some 35% of its total budget to investment compared to only about 20% in Europe. The US outspends Europe by six to one in defence research and development (R&D).
Moreover, R&D investment in Europe is fragmented along national lines, leading to duplication and waste of scarce resources.
The common European security interests are fulfilled poorly, but in addition fragmented defence industries and markets face a bleak future.
***
European defence industry
Since defence spending and defence industries are largely in the domain of the member states, the Commission in its Defence package chose a cautious approach to improving the situation.
The main findings as well as the reasons for and policy measures for improvement were laid out in the Communication A strategy for a stronger and more competitive European defence industry (Brussels, 5.12.2007 COM(2007) 764 final) and in two accompanying Staff Working Documents, an impact assessment (SEC(2007) 1596) and an impact assessment summary (SEC(2007) 1597).
The documents are available through the Commission’s DG Industry and Enterprise web page Towards an EU Defence Equipment Policy:
http://ec.europa.eu/enterprise/defence/eu_defence_policy.htm
They form the basis for two proposed Directives and a number of issues seen as maturing only in the middle or the long term.
***
Why Europe?
The security and prosperity of EU citizens is the short answer to why we need the European Union (a better EU, for sure). But most people need concrete examples of policies where the nation states are increasingly ill equipped to deliver the public goods on their own and where the European Union can (or could) offer more.
Climate change, energy, financial supervision and the euro have been in the headlines lately. They all show the need for more Europe, not less. Defence and related industries are among the long line of other policy areas, where the needs for improved European policies are compelling.
The Communication on the European defence industry is worth reading, and it will serve as the starting point for a couple of blog posts on the proposed legislative measures, including defence procurement.
Ralf Grahn
Friday, 26 December 2008
EU Law: Industry
Is industry a cuckoo among the policy areas of the European Community (European Union), laying its eggs in the nests of industrious builders of the internal market and sound competition rules?
Should the European Union have more or less industrial policy?
Take a look at what the current and future treaties say, before taking a dogmatic stand.
***
Article 157 TEC
Article 157 TEC (ex Article 130) is the result of difficult rounds of treaty negotiations between proponents of dirigisme and supporters of undistorted competition.
In addition, the contours of “industry” or “industrial policy” are less than clear, because a number of existing European Community (European Union) policies affect industrial enterprises: the internal market, the competition regime including state aid, research and development etc.
To the extent that we speak about a European level industrial policy, its aim would arguably have to seen in the context of global competition, aiming at adaptation to structural change.
An environment favourable to initiative has as its objective to promote entrepreneurship, a somewhat scarce European commodity.
From the beginning of 2005 small and medium-sized undertakings (enterprises) are defined according to Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ 20.5.2003 L 124/36).
The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.
This environment favourable to initiative (entrepreneurship) and development should be encouraged aiming particularly at the SMEs, which constitute 99 per cent of the businesses in the European Union.
Cooperation between businesses can be encouraged by suitable (European) companies as well as information and partner search.
Innovation, research and technological development are other worthy causes, although covered by their own, more specific treaty provisions.
The Commission can act as a catalyst to consultation and cooperation between member states.
The horizontal nature of “industrial policy” is seen in paragraph 3.
Supporting action can be launched according to the co-decision procedure, after consulting the Economic and Social Committee (ESC).
The last subparagraph serves as a reminder of the delicate balancing acts, which have led to the current Article. Open market member states demanded clear guarantees that the industry Article 157 TEC would not become a back door to “colbertist” dilution of competition or harmonisation of provisions on tax or pay and other employee benefits.
Thus, this title shall not provide a basis for the introduction by the Community of any measure which could lead to a distortion of competition or contains tax provisions or provisions relating to the rights and interests of employed persons.
Here is the current Article 157 of the Treaty establishing the European Community (TEC), as published in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/117–118:
TITLE XVI
INDUSTRY
Article 157 TEC
1. The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community's industry exist.
For that purpose, in accordance with a system of open and competitive markets, their action shall be aimed at:
— speeding up the adjustment of industry to structural changes,
— encouraging an environment favourable to initiative and to the development of undertakings throughout the Community, particularly small and medium-sized undertakings,
— encouraging an environment favourable to cooperation between undertakings,
— fostering better exploitation of the industrial potential of policies of innovation, research and technological development.
2. The Member States shall consult each other in liaison with the Commission and, where necessary, shall coordinate their action. The Commission may take any useful initiative to promote such coordination.
3. The Community shall contribute to the achievement of the objectives set out in paragraph 1 through the policies and activities it pursues under other provisions of this Treaty. The Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee, may decide on specific measures in support of action taken in the Member States to achieve the objectives set out in paragraph 1.
This title shall not provide a basis for the introduction by the Community of any measure which could lead to a distortion of competition or contains tax provisions or provisions relating to the rights and interests of employed persons.
***
Original Lisbon Treaty (ToL)
Although the Treaty of Lisbon is unreadable on its own, it spells out how or if the current treaties are amended.
Sometimes there are no specific amendments, although most of the times one or more of the horizontal amendments apply.
Article 2, point 129 of the Lisbon Treaty amended Article 157 TEC (OJ 17.12.2007 C 306/84):
INDUSTRY
129) Article 157 shall be amended as follows:
(a) at the end of paragraph 2, the following shall be added: ‘, in particular initiatives aiming at the establishment of guidelines and indicators, the organisation of exchange of best practice, and the preparation of the necessary elements for periodic monitoring and evaluation. The European Parliament shall be kept fully informed.’;
(b) in paragraph 3, first subparagraph, the following phrase shall be added at the end of the second sentence: ‘, excluding any harmonisation of the laws and regulations of the Member States’.
***
Renumbering ToL
The Table of equivalences of the original Treaty of Lisbon tells us that Title XVI first became Title XVI in the TFEU (ToL), but renumbered Title XVII Industry in the consolidated version.
Article 157 TEC initially became Article 157 TFEU (ToL) before the renumbering of the treaty made it into Article 173 TFEU in the consolidated version (OJ 17.12.2007 C 306/217).
***
Lisbon Treaty consolidated
Article 173 TFEU
The Title and the Article have been renumbered. The customary (horizontal) replacement of the procedure referred to in Article 251 by the ordinary legislative procedure has been made and the Community has been replaced by the Union. The specific amendments have been inserted.
Article 173 TFEU appears like this in the consolidated version of the Treaty of Lisbon (OJ 9.5.2008 C 115/126):
TITLE XVII
INDUSTRY
Article 173 TFEU
(ex Article 157 TEC)
1. The Union and the Member States shall ensure that the conditions necessary for the competitiveness of the Union's industry exist.
For that purpose, in accordance with a system of open and competitive markets, their action shall be aimed at:
— speeding up the adjustment of industry to structural changes,
— encouraging an environment favourable to initiative and to the development of undertakings throughout the Union, particularly small and medium-sized undertakings,
— encouraging an environment favourable to cooperation between undertakings,
— fostering better exploitation of the industrial potential of policies of innovation, research and technological development.
2. The Member States shall consult each other in liaison with the Commission and, where necessary, shall coordinate their action. The Commission may take any useful initiative to promote such coordination, in particular initiatives aiming at the establishment of guidelines and indicators, the organisation of exchange of best practice, and the preparation of the necessary elements for periodic monitoring and evaluation. The European Parliament shall be kept fully informed.
3. The Union shall contribute to the achievement of the objectives set out in paragraph 1 through the policies and activities it pursues under other provisions of the Treaties. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee, may decide on specific measures in support of action taken in the Member States to achieve the objectives set out in paragraph 1, excluding any harmonisation of the laws and regulations of the Member States.
This Title shall not provide a basis for the introduction by the Union of any measure which could lead to a distortion of competition or contains tax provisions or provisions relating to the rights and interests of employed persons.
***
Main changes
The main amendments are taken over from the Constitutional Treaty, the guidelines and indicators etc. from Article III-279(2).
The first five years of the Lisbon Strategy were a disappointment, but the re-launched Lisbon Strategy for Growth and Jobs offers at least the opportunity of a coherent policy framework for the Commission and the member states.
The powers of the European Community (European Union) are fairly weak, but the open method of coordination (OMC) is ‘institutionalised’ in the Treaty of Lisbon, and in the long run it may contribute to progress in the member states and the European Union at large.
Although supporting activities generally exclude harmonising measures (see below), the Lisbon Treaty adopts the style of the Constitutional Treaty to mention the exclusion of any harmonisation of laws and regulations of member states specifically in each provision. Here the Lisbon Treaty adopts the wording of Constitution Article III-279(3).
***
EU powers in general
The powers of the European Union are attributed or conferred by the member states through the treaties (including their aims). The Treaty of Lisbon makes an effort to present the different categories of competence (as they are modestly called) in a systematic manner.
The taxonomy of EU competence is set out in Article 2 TFEU. The three main or general categories are exclusive competence in 2(1), shared competence in 2(2) as well as supporting, coordinating or supplementing competences in 2(5), although the exact scope and arrangements are laid out in the various treaty provisions as stated in 2(6):
Article 2 TFEU
1. When the Treaties confer on the Union exclusive competence in a specific area, only the Union may legislate and adopt legally binding acts, the Member States being able to do so themselves only if so empowered by the Union or for the implementation of Union acts.
2. When the Treaties confer on the Union a competence shared with the Member States in a specific area, the Union and the Member States may legislate and adopt legally binding acts in that area. The Member States shall exercise their competence to the extent that the Union has not exercised its competence. The Member States shall again exercise their competence to the extent that the Union has decided to cease exercising its competence.
3. The Member States shall coordinate their economic and employment policies within arrangements as determined by this Treaty, which the Union shall have competence to provide.
4. The Union shall have competence, in accordance with the provisions of the Treaty on European Union, to define and implement a common foreign and security policy, including the progressive framing of a common defence policy.
5. In certain areas and under the conditions laid down in the Treaties, the Union shall have competence to carry out actions to support, coordinate or supplement the actions of the Member States, without thereby superseding their competence in these areas.
Legally binding acts of the Union adopted on the basis of the provisions of the Treaties relating to these areas shall not entail harmonisation of Member States' laws or regulations.
6. The scope of and arrangements for exercising the Union's competences shall be determined by the provisions of the Treaties relating to each area.
***
Article 3 TFEU: Exclusive competence
Because industry is at a cross-road of other aims and policies, with more distinct powers, we can mention the customs union and the common commercial policy as well as the competition rules among the areas of exclusive competence.
***
Article 4 TFEU: Shared competence
The internal market (outside the competition regime), as well as the transport and energy sectors are among the competences listed as shared in Article 4 TFEU. The area of research, technological development and space is mentioned specifically in paragraph 3:
Article 4 TFEU
1. The Union shall share competence with the Member States where the Treaties confer on it a competence which does not relate to the areas referred to in Articles 3 and 6.
2. Shared competence between the Union and the Member States applies in the following principal areas:
(a) internal market;
(b) social policy, for the aspects defined in this Treaty;
(c) economic, social and territorial cohesion;
(d) agriculture and fisheries, excluding the conservation of marine biological resources;
(e) environment;
(f) consumer protection;
(g) transport;
(h) trans-European networks;
(i) energy;
(j) area of freedom, security and justice;
(k) common safety concerns in public health matters, for the aspects defined in this Treaty.
3. In the areas of research, technological development and space, the Union shall have competence to carry out activities, in particular to define and implement programmes; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs.
4. In the areas of development cooperation and humanitarian aid, the Union shall have competence to carry out activities and conduct a common policy; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs.
***
Article 6 TFEU: Supporting competence
Article 6 TFEU mentions areas of action at European level, where the Union can support, coordinate or supplement member states’ actions. Industry is mentioned among them:
Article 6
The Union shall have competence to carry out actions to support, coordinate or supplement the actions of the Member States. The areas of such action shall, at European level, be:
(a) protection and improvement of human health;
(b) industry;
(c) culture;
(d) tourism;
(e) education, vocational training, youth and sport;
(f) civil protection;
(g) administrative cooperation.
***
Summary of legislation: Industry
On the Commission’s Scadplus web pages with summaries of legislation, the page Industry offers links to pages on general activities and actions concerning particular sectors of industry:
http://europa.eu/scadplus/leg/en/s25002.htm
The approach is broad enough to include agriculture, fisheries and tourism among sectors of “industry” or at least the links, making the industry concept even more amorphous.
***
Commission activities
Commission activities and news can be approached through the web page Industrial policy of the Directorate-General Enterprise and Industry:
http://ec.europa.eu/enterprise/enterprise_policy/industry/index_en.htm
Taking into account the political and rhetorical importance attributed to small and medium-sized enterprises, there is cause to mention the new European portal for SMEs:
http://ec.europa.eu/enterprise/sme/index_en.htm
The latest Commission decision on the Lisbon Growth and Jobs Strategy (16 December 2008, IP/08/1987) can be found here:
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1987&format=HTML&aged=0&language=EN&guiLanguage=en
The financial turmoil, the economic recession and the national stimulus packages affect both the Stability and Convergence Programmes and the Lisbon National Reform Programmes of the member states.
Ralf Grahn
Should the European Union have more or less industrial policy?
Take a look at what the current and future treaties say, before taking a dogmatic stand.
***
Article 157 TEC
Article 157 TEC (ex Article 130) is the result of difficult rounds of treaty negotiations between proponents of dirigisme and supporters of undistorted competition.
In addition, the contours of “industry” or “industrial policy” are less than clear, because a number of existing European Community (European Union) policies affect industrial enterprises: the internal market, the competition regime including state aid, research and development etc.
To the extent that we speak about a European level industrial policy, its aim would arguably have to seen in the context of global competition, aiming at adaptation to structural change.
An environment favourable to initiative has as its objective to promote entrepreneurship, a somewhat scarce European commodity.
From the beginning of 2005 small and medium-sized undertakings (enterprises) are defined according to Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ 20.5.2003 L 124/36).
The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.
This environment favourable to initiative (entrepreneurship) and development should be encouraged aiming particularly at the SMEs, which constitute 99 per cent of the businesses in the European Union.
Cooperation between businesses can be encouraged by suitable (European) companies as well as information and partner search.
Innovation, research and technological development are other worthy causes, although covered by their own, more specific treaty provisions.
The Commission can act as a catalyst to consultation and cooperation between member states.
The horizontal nature of “industrial policy” is seen in paragraph 3.
Supporting action can be launched according to the co-decision procedure, after consulting the Economic and Social Committee (ESC).
The last subparagraph serves as a reminder of the delicate balancing acts, which have led to the current Article. Open market member states demanded clear guarantees that the industry Article 157 TEC would not become a back door to “colbertist” dilution of competition or harmonisation of provisions on tax or pay and other employee benefits.
Thus, this title shall not provide a basis for the introduction by the Community of any measure which could lead to a distortion of competition or contains tax provisions or provisions relating to the rights and interests of employed persons.
Here is the current Article 157 of the Treaty establishing the European Community (TEC), as published in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/117–118:
TITLE XVI
INDUSTRY
Article 157 TEC
1. The Community and the Member States shall ensure that the conditions necessary for the competitiveness of the Community's industry exist.
For that purpose, in accordance with a system of open and competitive markets, their action shall be aimed at:
— speeding up the adjustment of industry to structural changes,
— encouraging an environment favourable to initiative and to the development of undertakings throughout the Community, particularly small and medium-sized undertakings,
— encouraging an environment favourable to cooperation between undertakings,
— fostering better exploitation of the industrial potential of policies of innovation, research and technological development.
2. The Member States shall consult each other in liaison with the Commission and, where necessary, shall coordinate their action. The Commission may take any useful initiative to promote such coordination.
3. The Community shall contribute to the achievement of the objectives set out in paragraph 1 through the policies and activities it pursues under other provisions of this Treaty. The Council, acting in accordance with the procedure referred to in Article 251 and after consulting the Economic and Social Committee, may decide on specific measures in support of action taken in the Member States to achieve the objectives set out in paragraph 1.
This title shall not provide a basis for the introduction by the Community of any measure which could lead to a distortion of competition or contains tax provisions or provisions relating to the rights and interests of employed persons.
***
Original Lisbon Treaty (ToL)
Although the Treaty of Lisbon is unreadable on its own, it spells out how or if the current treaties are amended.
Sometimes there are no specific amendments, although most of the times one or more of the horizontal amendments apply.
Article 2, point 129 of the Lisbon Treaty amended Article 157 TEC (OJ 17.12.2007 C 306/84):
INDUSTRY
129) Article 157 shall be amended as follows:
(a) at the end of paragraph 2, the following shall be added: ‘, in particular initiatives aiming at the establishment of guidelines and indicators, the organisation of exchange of best practice, and the preparation of the necessary elements for periodic monitoring and evaluation. The European Parliament shall be kept fully informed.’;
(b) in paragraph 3, first subparagraph, the following phrase shall be added at the end of the second sentence: ‘, excluding any harmonisation of the laws and regulations of the Member States’.
***
Renumbering ToL
The Table of equivalences of the original Treaty of Lisbon tells us that Title XVI first became Title XVI in the TFEU (ToL), but renumbered Title XVII Industry in the consolidated version.
Article 157 TEC initially became Article 157 TFEU (ToL) before the renumbering of the treaty made it into Article 173 TFEU in the consolidated version (OJ 17.12.2007 C 306/217).
***
Lisbon Treaty consolidated
Article 173 TFEU
The Title and the Article have been renumbered. The customary (horizontal) replacement of the procedure referred to in Article 251 by the ordinary legislative procedure has been made and the Community has been replaced by the Union. The specific amendments have been inserted.
Article 173 TFEU appears like this in the consolidated version of the Treaty of Lisbon (OJ 9.5.2008 C 115/126):
TITLE XVII
INDUSTRY
Article 173 TFEU
(ex Article 157 TEC)
1. The Union and the Member States shall ensure that the conditions necessary for the competitiveness of the Union's industry exist.
For that purpose, in accordance with a system of open and competitive markets, their action shall be aimed at:
— speeding up the adjustment of industry to structural changes,
— encouraging an environment favourable to initiative and to the development of undertakings throughout the Union, particularly small and medium-sized undertakings,
— encouraging an environment favourable to cooperation between undertakings,
— fostering better exploitation of the industrial potential of policies of innovation, research and technological development.
2. The Member States shall consult each other in liaison with the Commission and, where necessary, shall coordinate their action. The Commission may take any useful initiative to promote such coordination, in particular initiatives aiming at the establishment of guidelines and indicators, the organisation of exchange of best practice, and the preparation of the necessary elements for periodic monitoring and evaluation. The European Parliament shall be kept fully informed.
3. The Union shall contribute to the achievement of the objectives set out in paragraph 1 through the policies and activities it pursues under other provisions of the Treaties. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee, may decide on specific measures in support of action taken in the Member States to achieve the objectives set out in paragraph 1, excluding any harmonisation of the laws and regulations of the Member States.
This Title shall not provide a basis for the introduction by the Union of any measure which could lead to a distortion of competition or contains tax provisions or provisions relating to the rights and interests of employed persons.
***
Main changes
The main amendments are taken over from the Constitutional Treaty, the guidelines and indicators etc. from Article III-279(2).
The first five years of the Lisbon Strategy were a disappointment, but the re-launched Lisbon Strategy for Growth and Jobs offers at least the opportunity of a coherent policy framework for the Commission and the member states.
The powers of the European Community (European Union) are fairly weak, but the open method of coordination (OMC) is ‘institutionalised’ in the Treaty of Lisbon, and in the long run it may contribute to progress in the member states and the European Union at large.
Although supporting activities generally exclude harmonising measures (see below), the Lisbon Treaty adopts the style of the Constitutional Treaty to mention the exclusion of any harmonisation of laws and regulations of member states specifically in each provision. Here the Lisbon Treaty adopts the wording of Constitution Article III-279(3).
***
EU powers in general
The powers of the European Union are attributed or conferred by the member states through the treaties (including their aims). The Treaty of Lisbon makes an effort to present the different categories of competence (as they are modestly called) in a systematic manner.
The taxonomy of EU competence is set out in Article 2 TFEU. The three main or general categories are exclusive competence in 2(1), shared competence in 2(2) as well as supporting, coordinating or supplementing competences in 2(5), although the exact scope and arrangements are laid out in the various treaty provisions as stated in 2(6):
Article 2 TFEU
1. When the Treaties confer on the Union exclusive competence in a specific area, only the Union may legislate and adopt legally binding acts, the Member States being able to do so themselves only if so empowered by the Union or for the implementation of Union acts.
2. When the Treaties confer on the Union a competence shared with the Member States in a specific area, the Union and the Member States may legislate and adopt legally binding acts in that area. The Member States shall exercise their competence to the extent that the Union has not exercised its competence. The Member States shall again exercise their competence to the extent that the Union has decided to cease exercising its competence.
3. The Member States shall coordinate their economic and employment policies within arrangements as determined by this Treaty, which the Union shall have competence to provide.
4. The Union shall have competence, in accordance with the provisions of the Treaty on European Union, to define and implement a common foreign and security policy, including the progressive framing of a common defence policy.
5. In certain areas and under the conditions laid down in the Treaties, the Union shall have competence to carry out actions to support, coordinate or supplement the actions of the Member States, without thereby superseding their competence in these areas.
Legally binding acts of the Union adopted on the basis of the provisions of the Treaties relating to these areas shall not entail harmonisation of Member States' laws or regulations.
6. The scope of and arrangements for exercising the Union's competences shall be determined by the provisions of the Treaties relating to each area.
***
Article 3 TFEU: Exclusive competence
Because industry is at a cross-road of other aims and policies, with more distinct powers, we can mention the customs union and the common commercial policy as well as the competition rules among the areas of exclusive competence.
***
Article 4 TFEU: Shared competence
The internal market (outside the competition regime), as well as the transport and energy sectors are among the competences listed as shared in Article 4 TFEU. The area of research, technological development and space is mentioned specifically in paragraph 3:
Article 4 TFEU
1. The Union shall share competence with the Member States where the Treaties confer on it a competence which does not relate to the areas referred to in Articles 3 and 6.
2. Shared competence between the Union and the Member States applies in the following principal areas:
(a) internal market;
(b) social policy, for the aspects defined in this Treaty;
(c) economic, social and territorial cohesion;
(d) agriculture and fisheries, excluding the conservation of marine biological resources;
(e) environment;
(f) consumer protection;
(g) transport;
(h) trans-European networks;
(i) energy;
(j) area of freedom, security and justice;
(k) common safety concerns in public health matters, for the aspects defined in this Treaty.
3. In the areas of research, technological development and space, the Union shall have competence to carry out activities, in particular to define and implement programmes; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs.
4. In the areas of development cooperation and humanitarian aid, the Union shall have competence to carry out activities and conduct a common policy; however, the exercise of that competence shall not result in Member States being prevented from exercising theirs.
***
Article 6 TFEU: Supporting competence
Article 6 TFEU mentions areas of action at European level, where the Union can support, coordinate or supplement member states’ actions. Industry is mentioned among them:
Article 6
The Union shall have competence to carry out actions to support, coordinate or supplement the actions of the Member States. The areas of such action shall, at European level, be:
(a) protection and improvement of human health;
(b) industry;
(c) culture;
(d) tourism;
(e) education, vocational training, youth and sport;
(f) civil protection;
(g) administrative cooperation.
***
Summary of legislation: Industry
On the Commission’s Scadplus web pages with summaries of legislation, the page Industry offers links to pages on general activities and actions concerning particular sectors of industry:
http://europa.eu/scadplus/leg/en/s25002.htm
The approach is broad enough to include agriculture, fisheries and tourism among sectors of “industry” or at least the links, making the industry concept even more amorphous.
***
Commission activities
Commission activities and news can be approached through the web page Industrial policy of the Directorate-General Enterprise and Industry:
http://ec.europa.eu/enterprise/enterprise_policy/industry/index_en.htm
Taking into account the political and rhetorical importance attributed to small and medium-sized enterprises, there is cause to mention the new European portal for SMEs:
http://ec.europa.eu/enterprise/sme/index_en.htm
The latest Commission decision on the Lisbon Growth and Jobs Strategy (16 December 2008, IP/08/1987) can be found here:
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1987&format=HTML&aged=0&language=EN&guiLanguage=en
The financial turmoil, the economic recession and the national stimulus packages affect both the Stability and Convergence Programmes and the Lisbon National Reform Programmes of the member states.
Ralf Grahn
Thursday, 31 January 2008
EU Treaty of Lisbon: European Defence Agency
Reform Treaty or codifying exercise? The Lisbon Treaty provisions on the European Defence Agency (EDA) are unquestionably new, but the Agency has already been established and it is operational. Thus, the amended Treaty on European Union (TEU) clarifies existing practice at the Treaty level (and gives the EDA a firmer legal base than a somewhat atypical joint action).
The fragmented nature of European defence and military capabilities offers huge potential benefits through concerted action, if the opportunities are seized. These are early days; only time will tell how successfully the member states of the European Union (EU) will manage to streamline their operations and enhance their capabilities in the military field.
The EDA is a strategic corner stone of the common security and defence policy (CSDP), with its efforts to bring more value for money: improved security at a reasonable cost.
***
The intergovernmental conference (IGC 2007) agreed on new and readable CSDP Articles, like the one on the European Defence Agency, Article 28d TEU of the Treaty of Lisbon (OJ 17.12.2007 C 306/35 and 36).
50) The following new Articles 28 B to 28 E shall be inserted:
-----
Article 28d
1. The European Defence Agency referred to in Article 28 A(3), subject to the authority of the Council, shall have as its task to:
(a) contribute to identifying the Member States' military capability objectives and evaluating observance of the capability commitments given by the Member States;
(b) promote harmonisation of operational needs and adoption of effective, compatible procurement methods;
(c) propose multilateral projects to fulfil the objectives in terms of military capabilities, ensure coordination of the programmes implemented by the Member States and management of specific cooperation programmes;
(d) support defence technology research, and coordinate and plan joint research activities and the study of technical solutions meeting future operational needs;
(e) contribute to identifying and, if necessary, implementing any useful measure for strengthening the industrial and technological base of the defence sector and for improving the effectiveness of military expenditure.
2. The European Defence Agency shall be open to all Member States wishing to be part of it. The Council, acting by a qualified majority, shall adopt a decision defining the Agency's statute, seat and operational rules. That decision should take account of the level of effective participation in the Agency's activities. Specific groups shall be set up within the Agency bringing together Member States engaged in joint projects. The Agency shall carry out its tasks in liaison with the Commission where necessary.
***
Because Article 28d TEU is new and therefore already consolidated and lacks antecedents in the existing Treaties, we go to the draft Treaty establishing a Constitution for Europe, where the Convention proposed the following Article III-212 (OJ 18.7.2003 C 169/69):
Article III-212
1. The European Armaments, Research and Military Capabilities Agency, subject to the authority of the Council of Ministers, shall have as its task to:
(a) contribute to identifying the Member States' military capability objectives and evaluating observance of the capability commitments given by the Member States;
(b) promote harmonisation of operational needs and adoption of effective, compatible procurement methods;
(c) propose multilateral projects to fulfil the objectives in terms of military capabilities, ensure coordination of the programmes implemented by the Member States and management of specific cooperation programmes;
(d) support defence technology research, and coordinate and plan joint research activities and the study of technical solutions meeting future operational needs;
(e) contribute to identifying and, if necessary, implementing any useful measure for strengthening the industrial and technological base of the defence sector and for improving the effectiveness of military expenditure.
2. The Agency shall be open to all Member States wishing to be part of it. The Council of Ministers, acting by qualified majority, shall adopt a European decision defining the Agency's
statute, seat and operational rules. That decision should take account of the level of effective participation in the Agency's activities. Specific groups shall be set up within the Agency bringing together Member States engaged in joint projects. The Agency shall carry out its tasks in liaison with the Commission where necessary.
***
The IGC 2004 agreed on the following text in Article III-311 of the Treaty establishing a Constitution for Europe (OJ 16.12.2004 C 310/139 and 140):
Article III-311
1. The Agency in the field of defence capabilities development, research, acquisition and armaments (European Defence Agency), established by Article I-41(3) and subject to the authority of the Council, shall have as its task to:
(a) contribute to identifying the Member States' military capability objectives and evaluating observance of the capability commitments given by the Member States;
(b) promote harmonisation of operational needs and adoption of effective, compatible procurement methods;
(c) propose multilateral projects to fulfil the objectives in terms of military capabilities, ensure coordination of the programmes implemented by the Member States and management of specific cooperation programmes;
(d) support defence technology research, and coordinate and plan joint research activities and the study of technical solutions meeting future operational needs;
(e) contribute to identifying and, if necessary, implementing any useful measure for strengthening the industrial and technological base of the defence sector and for improving the effectiveness of military expenditure.
2. The European Defence Agency shall be open to all Member States wishing to be part of it. The Council, acting by a qualified majority, shall adopt a European decision defining the Agency's statute, seat and operational rules. That decision should take account of the level of effective participation in the Agency's activities. Specific groups shall be set up within the Agency bringing together Member States engaged in joint projects. The Agency shall carry out its tasks in liaison with the Commission where necessary.
***
We can see that the IGC 2004 gave the Agency a snappier name, the European Defence Agency, but left the rest of the Convention’s text untouched.
The IGC 2007 streamlined the language of the initial phrase by deleting ‘in the field of defence capabilities development, research, acquisition and armaments’ already covered by the reference to Article 28a(3) TEU.
A few basic remarks on the European Defence Agency (EDA) in the Lisbon Treaty:
The EDA is intergovernmental: the member states participate and the Agency is subject to the authority of the Council.
The EDA carries out its tasks in liaison with the Commission, (only) where it is necessary, for instance in questions concerning industrial policy or (general) public procurement.
Participation is voluntary for the member states (‘wishing to be part of it’).
Qualified majority voting is used for the Council decision on the statute, seat and operational rules of the EDA.
Concrete projects are forged between restricted groups of member states.
Potentially, the tasks entrusted to the EDA could bring the member states considerably more value for money in the military field.
Although Articles 28a(3) and 28d TEU are new, they actually represent a codifying exercise, which creates a Treaty base for an Agency already created and operating.
***
After the Convention and before the signing of the Constitutional Treaty, the member states agreed on a joint action pursuant to Article 14 TEU:
Council joint action 2004/551/CFSP of 12 July 2004 on the establishment of the European Defence Agency (OJ 17.7.2004 L 245/17).
The EDA is based in Brussels and the initial provisions on its establishment (Article 1) are in conformity with the comments above. The mission of the EDA is presented in Article 2:
Article 2
Mission
1. The mission of the Agency is to support the Council and the Member States in their effort to improve the EU’s defence capabilities in the field of crisis management and to sustain the ESDP as it stands now and develops in the future.
2. The Agency’s mission shall be without prejudice to the competences of Member States in defence matters.
***
The EDA has legal personality (Article 6). The Agency’s main revenue comes from member states’ contributions based on the applicable gross national income (GNI) scale, according to Article 8(1)(b).
Information about EDA and its activities, including the EDA Work Programme 2008, is available at the Agency’s web site.
Ralf Grahn
Source:
European Defence Agency: EDA Work Programme 2008 (and other information);
http://www.eda.europa.eu/
The fragmented nature of European defence and military capabilities offers huge potential benefits through concerted action, if the opportunities are seized. These are early days; only time will tell how successfully the member states of the European Union (EU) will manage to streamline their operations and enhance their capabilities in the military field.
The EDA is a strategic corner stone of the common security and defence policy (CSDP), with its efforts to bring more value for money: improved security at a reasonable cost.
***
The intergovernmental conference (IGC 2007) agreed on new and readable CSDP Articles, like the one on the European Defence Agency, Article 28d TEU of the Treaty of Lisbon (OJ 17.12.2007 C 306/35 and 36).
50) The following new Articles 28 B to 28 E shall be inserted:
-----
Article 28d
1. The European Defence Agency referred to in Article 28 A(3), subject to the authority of the Council, shall have as its task to:
(a) contribute to identifying the Member States' military capability objectives and evaluating observance of the capability commitments given by the Member States;
(b) promote harmonisation of operational needs and adoption of effective, compatible procurement methods;
(c) propose multilateral projects to fulfil the objectives in terms of military capabilities, ensure coordination of the programmes implemented by the Member States and management of specific cooperation programmes;
(d) support defence technology research, and coordinate and plan joint research activities and the study of technical solutions meeting future operational needs;
(e) contribute to identifying and, if necessary, implementing any useful measure for strengthening the industrial and technological base of the defence sector and for improving the effectiveness of military expenditure.
2. The European Defence Agency shall be open to all Member States wishing to be part of it. The Council, acting by a qualified majority, shall adopt a decision defining the Agency's statute, seat and operational rules. That decision should take account of the level of effective participation in the Agency's activities. Specific groups shall be set up within the Agency bringing together Member States engaged in joint projects. The Agency shall carry out its tasks in liaison with the Commission where necessary.
***
Because Article 28d TEU is new and therefore already consolidated and lacks antecedents in the existing Treaties, we go to the draft Treaty establishing a Constitution for Europe, where the Convention proposed the following Article III-212 (OJ 18.7.2003 C 169/69):
Article III-212
1. The European Armaments, Research and Military Capabilities Agency, subject to the authority of the Council of Ministers, shall have as its task to:
(a) contribute to identifying the Member States' military capability objectives and evaluating observance of the capability commitments given by the Member States;
(b) promote harmonisation of operational needs and adoption of effective, compatible procurement methods;
(c) propose multilateral projects to fulfil the objectives in terms of military capabilities, ensure coordination of the programmes implemented by the Member States and management of specific cooperation programmes;
(d) support defence technology research, and coordinate and plan joint research activities and the study of technical solutions meeting future operational needs;
(e) contribute to identifying and, if necessary, implementing any useful measure for strengthening the industrial and technological base of the defence sector and for improving the effectiveness of military expenditure.
2. The Agency shall be open to all Member States wishing to be part of it. The Council of Ministers, acting by qualified majority, shall adopt a European decision defining the Agency's
statute, seat and operational rules. That decision should take account of the level of effective participation in the Agency's activities. Specific groups shall be set up within the Agency bringing together Member States engaged in joint projects. The Agency shall carry out its tasks in liaison with the Commission where necessary.
***
The IGC 2004 agreed on the following text in Article III-311 of the Treaty establishing a Constitution for Europe (OJ 16.12.2004 C 310/139 and 140):
Article III-311
1. The Agency in the field of defence capabilities development, research, acquisition and armaments (European Defence Agency), established by Article I-41(3) and subject to the authority of the Council, shall have as its task to:
(a) contribute to identifying the Member States' military capability objectives and evaluating observance of the capability commitments given by the Member States;
(b) promote harmonisation of operational needs and adoption of effective, compatible procurement methods;
(c) propose multilateral projects to fulfil the objectives in terms of military capabilities, ensure coordination of the programmes implemented by the Member States and management of specific cooperation programmes;
(d) support defence technology research, and coordinate and plan joint research activities and the study of technical solutions meeting future operational needs;
(e) contribute to identifying and, if necessary, implementing any useful measure for strengthening the industrial and technological base of the defence sector and for improving the effectiveness of military expenditure.
2. The European Defence Agency shall be open to all Member States wishing to be part of it. The Council, acting by a qualified majority, shall adopt a European decision defining the Agency's statute, seat and operational rules. That decision should take account of the level of effective participation in the Agency's activities. Specific groups shall be set up within the Agency bringing together Member States engaged in joint projects. The Agency shall carry out its tasks in liaison with the Commission where necessary.
***
We can see that the IGC 2004 gave the Agency a snappier name, the European Defence Agency, but left the rest of the Convention’s text untouched.
The IGC 2007 streamlined the language of the initial phrase by deleting ‘in the field of defence capabilities development, research, acquisition and armaments’ already covered by the reference to Article 28a(3) TEU.
A few basic remarks on the European Defence Agency (EDA) in the Lisbon Treaty:
The EDA is intergovernmental: the member states participate and the Agency is subject to the authority of the Council.
The EDA carries out its tasks in liaison with the Commission, (only) where it is necessary, for instance in questions concerning industrial policy or (general) public procurement.
Participation is voluntary for the member states (‘wishing to be part of it’).
Qualified majority voting is used for the Council decision on the statute, seat and operational rules of the EDA.
Concrete projects are forged between restricted groups of member states.
Potentially, the tasks entrusted to the EDA could bring the member states considerably more value for money in the military field.
Although Articles 28a(3) and 28d TEU are new, they actually represent a codifying exercise, which creates a Treaty base for an Agency already created and operating.
***
After the Convention and before the signing of the Constitutional Treaty, the member states agreed on a joint action pursuant to Article 14 TEU:
Council joint action 2004/551/CFSP of 12 July 2004 on the establishment of the European Defence Agency (OJ 17.7.2004 L 245/17).
The EDA is based in Brussels and the initial provisions on its establishment (Article 1) are in conformity with the comments above. The mission of the EDA is presented in Article 2:
Article 2
Mission
1. The mission of the Agency is to support the Council and the Member States in their effort to improve the EU’s defence capabilities in the field of crisis management and to sustain the ESDP as it stands now and develops in the future.
2. The Agency’s mission shall be without prejudice to the competences of Member States in defence matters.
***
The EDA has legal personality (Article 6). The Agency’s main revenue comes from member states’ contributions based on the applicable gross national income (GNI) scale, according to Article 8(1)(b).
Information about EDA and its activities, including the EDA Work Programme 2008, is available at the Agency’s web site.
Ralf Grahn
Source:
European Defence Agency: EDA Work Programme 2008 (and other information);
http://www.eda.europa.eu/
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