UK Office of the European Parliament

EP News, September 19th, 2008 (No. 371)

European Parliament session 22- 25 September 2008

• Telecoms - (1st reading of 4 pieces of legislation: Tuesday vote)
• Shipping - (2nd reading of 6 pieces of legislation: Tues debate)
• Hedge Funds - Debate Monday
• Obesity - Debate Wednesday

EU Telecoms reform package

On Tuesday, the European Parliament will adopt its 1st reading on the package of legislation to reform the EU electronic telecommunications market. This covers fixed and mobile telephony, voice over internet, internet and broadband connections, WiFi and mobile TV, cable and digital TV.

West Midlands Conservative MEP Malcolm Harbour is one of the Parliament's rapporteurs. He and North West Labour MEP Arlene McCarthy were the two UK members to speak in the debate on the reforms on 2 September.

Among the key issues addressed in amendments proposed by the European Parliament:

• Customers able to switch providers within 24 hours, while keeping the same number (current UK maximum is two days);
• More information to subscribers on potential service or contract restrictions + a maximum 24 months on length of contracts;
• Setting up a body of European telecoms regulators for better co-operation;
• Achieving effective functional separation in all 27 domestic telecoms markets, as has already taken place in the UK.

The Council of Telecoms ministers meets on 27 November. Unless they agree to all amendments adopted by the European Parliament, the proposals will return for a 2nd reading next year.

Shipping

Tuesday afternoon's top debate deals with the package of maritime safety measures known as 'Erika 3'. Five areas of legislation are up for 2nd reading:

• Port state control, seeking to improve the standard of safety inspections of ships in European ports, including the role of pilots in detecting safety shortcomings;
• Traffic monitoring and a legal framework on places of refuge for ships in distress;
• Investigation of accidents;
• Liability of shipowners regarding damage caused to passengers and their belongings in the event of an accident;
• So-called "classification societies", renamed 'recognised organisations', the bodies which carry out inspections of ships flying the flag of a Member State.

The following UK MEPs spoke in the 1st reading debate on 24 April 2007: Ian Hudghton MEP (SNP, Scotland); Graham Booth MEP (UKIP, South West); Philip Bradbourn MEP (Conservative, West Midlands); Robert Evans MEP (Labour, London).

This is the 2nd reading in the codecision procedure where the European Parliament has equal decision-making powers with the Council of Ministers. Unless the Council agrees to all amendments adopted at 2nd reading, the proposals will go into conciliation procedure with a view to thrashing out a deal between the two institutions.

Hedge Funds

Hedge funds, private equity and transparency of institutional investors are the subjects of Monday afternoon's first debate. It is not until Wednesday afternoon that the European Commission is due to make a statement to MEPs on the crisis on the world's financial markets, so it is very likely that recent developments will dominate the discussion of these two reports on Monday. The reports come from two different parliamentary committees, but both ask the European Commission to table legislation in the area - for these requests to go forward officially, they will need the backing of more than half of the 785 MEPs.

As to the content of the reports, among the recommendations for future legislation: that investment firms should have to comply with capital requirements related to the risks they take; transparency requirements for those who trade on behalf of hedge funds; and a harmonised EU framework for venture capital and private equity. One of the reports also calls for full transparency on senior management remuneration systems and for a ban on asset stripping.

Obesity

Obesity is one of the most frequent subjects to hit the front pages in UK newspapers. There are almost 22 million overweight children across the EU now, and a further 1.3 million predicted to be overweight or obese by 2010. A report up for debate on Wednesday evening contains a resolution suggesting ways forward for tackling the problem. Among the recommendations: restrictions on advertising unhealthy food to children; clearer food labelling; a ban on trans-fats; and provision of healthier food in schools. A proposal tabled by the European Commission for funding to promote fruit consumption in schools is currently making its way through the Parliament's Agriculture Committee and will come to vote in November.

Other legislation

Tuesday morning's key debate concerns two pieces of legislation in the fields of police co-operation and anti-terrorism

Anti-terrorism: MEPs will be voting on a proposal to include three new offences in European law: public provocation to commit terrorist offences; recruitment to terrorism; and terrorist training.

Amendments adopted in the Civil Liberties Committee seek to replace the word public 'provocation' with the more widely-used public 'incitement'. Other amendments insert safeguard clauses throughout the text with a view to guaranteeing fundamental freedoms, such as freedom of expression.

Database exchanges: New legislation on processing and protection of personal data in cases of police and judicial co-operation is due for discussion once again. The original proposal from the European Commission was amended so drastically in the Council of Ministers that MEPs are now being re-consulted on the new proposal.

The European Parliament is consulted on both pieces of legislation, but the final say rests with the Council of Ministers.

VAT - insurance & financial services

MEPs look set to back an update of the rules regarding the VAT treatment of financial services and insurance, with some proposals for changes. The aim is to ensure legal certainty in a sector which has changed dramatically since the current rules were drawn up over 30 years ago. Most financial services are exempt from VAT, but the legislation setting out how this exemption works in detail dates from 1977 and is out of date.

Several amendments adopted in the Economic Committee aim to clarify the scope of VAT exemptions, for example by including all derivatives. However, as is usual with taxation matters, the European Parliament's position is not binding, and the final decision requires unanimity among the 27 Member States in the Council of Ministers.

UK MEPs

Tropical Timber Agreement

South East Greens MEP Caroline Lucas will lead Tuesday evening's debate on the International Tropical Timber Agreement of 2006. Her report raises procedural issues around the European Parliament's involvement in ratifying agreements like this. However, the debate is likely to focus on broader issues of deforestation, illegal logging, biodiversity and climate change.

OTHER ISSUES

• Patient mobility: The European Commission's new proposal on patient access to health care in other EU countries will be discussed on Thursday morning. London MEP John Bowis (Conservative) has been appointed European Parliament rapporteur on the proposed directive, which means that he will steer the discussions through the European Parliament over the coming months in the hope of concluding the 1st reading before next June's European elections.

• Media pluralism: A report on media pluralism, due for discussion on Monday, raises concerns about concentration of media ownership and recommends that EU competition law should be more closely linked with media law to avoid jeopardising media diversity. Online media was also discussed in the report. MEPs are calling for an open discussion on all issues relating to blogs and suggest protection of copyright for online media, so that third parties mention the source when using online content (Vote Thursday).

• Copyright online: An oral question will be put to the European Commission in an attempt to obtain legal clarity on the management of on-line copyrights. The European Parliament last debated this subject on 12 March 2007; Diana Wallis MEP (Lib Dem, Yorks & Humber) was the only UK MEP to take part.

• 2009 European Year of Innovation: The European Commission is suggesting that 2009 be designated European Year of Creativity and Innovation. Monday evening sees the first debate on the legal basis for setting up the Year and a chance for MEPs to shape the priorities for action marking the Year. As in previous years, activities would include promotional campaigns and events at European, national, regional and local level. No extra funding is being earmarked, however, and activities will be financed out of existing funding streams. 2008 is the Year of Intercultural Dialogue.

• Community radio: Community radio stations are the subject of a report and resolution from the Culture Committee. Two UK examples are held up as examples in the report: Angel Radio, based in Havant, Hampshire; and a football fans' community radio from London (but the report does not name the team!)

• Teacher education: A report making recommendations for improving the quality of teacher education is due for adoption on Thursday. The report, drawn up by the Culture & Education Committee, followed a study by London's Institute of Education on the content and quality of teacher education across the EU.

• Student mobility: The Bologna Process, which was launched in 1999, is an intergovernmental initiative which aims to create a European Higher Education Area by 2010. The basic idea is to make it easier for students to choose from a wide range of high-quality courses and for the courses they choose to be widely-recognised across the EU. A resolution due for adoption on Thursday makes recommendations for easing the passage towards achieving those objectives.

• Farming in mountainous areas: A report focusing on agriculture in mountainous areas is set for adoption on Tuesday. The resolution adopted in the Agriculture Committee recommends support for traditional regional products from mountain regions and for special assistance from EU funds for mountain areas.

• EU-India summit: The next EU-India summit will take place on 29 September in Marseille. Top of the agenda will be climate change, energy and the world food situation. Wednesday morning's debate gives MEPs the opportunity to feed in their views ahead of the summit.

• Ecumenical Patriarch Bartholomew I: On Wednesday at 11am (UK time), the European Parliament will be addressed by the spiritual leader of Orthodox Christians worldwide, Ecumenical Patriarch Bartholomew I. His presence in the European Parliament is one of a series of similar visits by faith leaders as part of the Year of Intercultural Dialogue 2008.

Full information can be found in "The Briefing": www.europarl.europa.eu/news/expert/tous_les_briefing/default/default_en.htm

Committee meetings

• Vehicle emissions - Environment Committee adopts 1st reading of proposed Regulation (Thursday);
• Solvency II - Economic Committee discuss 1st reading amendments to proposed Directive (Monday);
• Sakharov Prize for freedom of expression - Foreign Affairs Cttee decide shortlist of 3 (Monday);
• Discussion of amendments to CAP "Health Check" - Agriculture Cttee (Tuesday).

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