There will not be any EU legislation on the computer-implemented invention. On Wednesday, the European Parliament rejected, by 648 votes to 14 with 18 abstentions, the so-called software patent directive, putting an end to a passionate three year debate.

Before the vote, rapporteur Michel ROCARD (PES, FR) said Parliament was split fifty-fifty on the issue and all political groups decided to reject the text rather than risk a result they could not accept. He added: "There is collective anger throughout the Parliament because of the way the directive was handled by the Commission and the Council," recalling the contested approval of the common position.  He said the vote is a clear invitation to the Commission and the Council to show full respect to the EP in future. He concluded that "this legislation is not mature for adoption."

Commissioner Benita FERRERO-WALDNER reacted to the vote by saying that without the directive, patents on computerised inventions will continue to be granted by national offices and by the European Patent Office, with no harmonisation and thus allowing possible different interpretations of the rules.

During the debate on Tuesday, Commissioner Joaquín ALMUNIA told MEPs: "Should you decide to reject the common position, the Commission will not submit a new proposal." Attention now moves to the proposed directive for a Community patent, currently in discussion in the Council, mentioned by a number of MEPs as the appropriate legislative instrument to address the issue of software patentability.

According to the co-decision rules, today's negative vote means the end of the legislative procedure and the fall of the directive.

The common position, if approved, would have allowed patenting of computer-implemented inventions. This outcome was advocated by big software firms, which argued that patents would encourage research spending and defend European inventions from US competition. On the contrary, the directive was criticised by supporters of "open source" software, mainly smaller companies, who claimed copyright already protects their inventions and were afraid that patenting would raise legal costs.

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In adopting a report with 574 votes in favour 45 against and 44 abstentions in response to the Commission proposal laying down general provisions on the European Regional Development Fund (ERDF), European Social Fund (ESF) and the Cohesion Fund, MEPs key positions are: that 0.41% of Community GDP should be earmarked for cohesion policy; a rejection of any significant modification to the overall architecture of the Commission proposals, including attempts to renationalise all or part of EU regional policy; cohesion policy to be ring-fenced from negotiations on the financial perspective or attempts to make drastic cuts in EU spending.

Specifically on financing, Parliament adopted a paragraph which calls for "a political solution providing for special compensation to be established for those regions or Member States that face substantial financial losses, due to the disparities caused by the implementation of the Commission proposal regarding the allocation of financial resources." Parliament believes that the uncertainty surrounding the financing of structural policies might further undermine citizens' confidence in the European project. The House urges the European Council to take a decision on the financial perspective as early as possible, and in any event before the end of 2005, in order to ensure that an adequate period is allowed to European regions and Member States for the preparation of the new operational programmes.

Eligibility criteria - support for convergence regions

Of interest to some Member States is the inclusion of housing costs as eligible for financing. MEPs are broadly opposed to any attempt to classify expenditure not related to investment, such as housing costs, as eligible for Community co-financing. However, they believe that the costs of renovating social housing aimed at saving energy and protecting the environment should be eligible.

Parliament also takes a clear stance on the potential penalties for company relocations, expressing strong support for the Commission proposal to impose financial penalties on firms which have received EU funding but then decide to relocate. Parliament advocates monitoring systems to quantify the economic and social costs of any relocation so that penalties may be set accordingly. It calls for legal measures to ensure that firms receiving Community funding do not relocate for a "long and predetermined" period.

MEPs oppose any reduction in the ceilings for state aid to convergence regions, including those which are victims of the "statistical effect" (whereby EU average GDP has decreased following enlargement, causing some countries and regions to drop below the eligibility threshold for Objective 1 financing for the EU's poorest regions). Parliament calls for statistical effect regions to have a funding level of 85% of the resources provided to the full convergence regions at the beginning of the funding period, which will reduce to 60% by 2013.

As to transparency and the fight against corruption, MEPs note that the Commission and the Member States have joint responsibility for the Structural Funds. It calls on the Member States to make annual declarations of assurance that EU taxpayers' money has been spent in a regular, legal and transparent manner. MEPs want these declarations to be signed by the finance minister of each Member State. The Commission, should, say MEPs clearly define what it means by "irregularity for reporting purposes by Member States.

Other issues raised by the Parliament include support for the outermost regions (Guadeloupe, French Guiana, Martinique, Reunion, the Azores, Madeira and the Canary Islands), special mention of Malta and Cyprus and the abolition of the Commission's arbitrary 150 km limit for defining maritime regions eligible for cross-border co-operation programmes.

Parliament only has the power of assent (i.e. the power to approve or reject the entire Commission proposal without amendment). However, rapporteur Konstantinos HATZIDAKIS (EPP-ED, GR) used Rule 75 (3) of Parliament's Rules of Procedure which allows Parliament to draw up an interim report setting out the House's priorities before a final decision on assent is taken by the Parliament.

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MEPs back the proposed increase in the Cohesion Fund from €18 billion (for the period 2000-2006) to €62.99 billion and call for a balanced distribution between the eligible sectors of the environment and transport infrastructure, coupled with some flexibility in intervention by the Fund. MEPs also stress that the new Financial Perspective must ensure that current policy challenges can be met. Chief among these is the reform of cohesion policy. MEPs believe 0.41% of the EU’s Gross National Product (GNP) is the appropriate level for this purpose. Parliament adopted a report on the new Cohesion Fund 2007-2013 with 580 votes in favour, 45 against and 47 abstentions.

Following the Union’s enlargement on 1 May 2004, the Cohesion Fund applies to the 10 new Member States until the end of 2006, as well as to the three Member States eligible at the end of the 2000-2006 period (Greece, Portugal and Spain). To benefit from the Cohesion Fund, a Member State's per capita Gross National Income (GNI) must be less than 90% of the Community average national income, which is the case for all the new Member States.

Parliament does not call for a transitional mechanism for phasing out aid granted to beneficiary Member States whose per capita gross national income (GNI) is more than 90% of the Community average. However, MEPs consider that "a political solution should be sought for the Union territories that will be excluded in future as a result of enlargement."

Parliament calls for the inclusion in the regulation of an explicit reference in favour of people with disabilities and it wants projects financed by the Cohesion Fund to provide for the removal of barriers and obstacles of every kind.

MEPs also want the Commission to take into account the specific characteristics of outlying Member States and island Member States eligible under the Cohesion Fund, given that they suffer from natural and demographic handicaps.

This report was also drawn up under Rule 75 (3) of the Parliament's Rules of Procedure as currently the Parliament only has assent powers on the Cohesion Fund.

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In adopting a legislative resolution on the European Regional Development Fund (ERDF), by 605 votes in favour, 37 against with 13 abstentions, Parliament decided that VAT costs should not be eligible for financing from the ERDF. On housing costs, MEPs said the costs should also be excluded, except for expenses which relate to renovation of social housing with a view to saving energy and protecting the environment.

The Commission's proposal clearly stated that neither VAT nor housing were eligible for a contribution from the ERDF. Despite several MEPs advocating the inclusion of VAT, the House reached a position supporting the Commission's proposal to exclude VAT.

MEPs enlarged the scope of the regulation, saying it should cover urban and rural areas, areas dependent on fisheries, outlying and island regions, trans-frontier regions, mountain areas and those with serious natural or demographic handicaps.

Mr Fava's report also stresses the importance of reducing the digital divide through the ERDF. It says funding should be made available for promoting access to and efficient use of information and communication technology by smaller firms, by setting up infrastructure in the most remote regions, supporting access to networks, the establishment of public Internet access points, equipment and the development of services and applications, including action plans for very small and craft businesses.

On this regulation, Parliament has codecision powers with the Council. This serves as Parliament's first reading and the Council should now come to a common position during the British Presidency. The budget and the start date for the release of funds depend on an eventual agreement on the EU financial perspective 2007-2013.

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Richard Freedman
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Parliament gave strong backing to a new way of promoting territorial cohesion within the EU in a legislative report adopted with 662 votes in favour, 31 against and 15 abstentions. The new financial instrument enables the setting up of cross-border groupings which will be able to access EU funding and should address the traditional legal and administrative problems encountered in the management of cross-border programmes and projects.

The aim of the proposed regulation is to overcome existing obstacles hindering cross-border co-operation. The regulation allows the creation of cooperative groupings in the EU territory, invested with legal personality. The groupings are to be regulated by a convention agreed between the participating national, regional, local or other public authorities.

The Commission had proposed to call these new groupings "European grouping of cross-border cooperation (EGCC)". However, Parliament insisted on the name "European grouping of territorial cohesion (EGTC)" and says they should support European territorial co-operation in three areas: cross-border, inter-regional or trans-national.

Some €14.3 billion had been initially allocated by the Commission for this proposal on cross-border co-operation for 2007-2013. As with the other Structural Funds, the final amounts will depend on the eventual agreement on the overall EU budget for 2007-2013.

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Richard Freedman
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Foreign troops in Iraq should be replaced by a UN peace-keeping force, the European Parliament said in a resolution adopted on Wednesday by 345 votes in favour, 109 against and 167 abstentions. The EU should promote a new Security Council resolution to this end. MEPs also advocated the setting up of an independent Commission, consisting of UN, EU and Iraqi experts, to investigate past human rights crimes.

MEPs stressed the need to look forward, but did express their concern over the deteriorating security situation and their sadness at the thousands of civilians and 1700 foreign troops who have died since the beginning of the invasion. They hoped that "the lessons learned from the Iraq war will lead to more multilateral, democratic and results-oriented conflict management worldwide in the future". MEPs recognised that the fall of the "repressive" regime of Saddam Hussein had paved the way towards a peaceful, secure and democratic future for the Iraqi people. But in view of the present insecure situation, the international community, MEPs felt, "has a moral and political duty to respond". A new UN resolution should provide for the possibility that countries not taking part in the war participate in the training of Iraqi armed forces and police.

EU assistance should remedy the shortcomings of the past and bring about a better understanding of Iraqi society. The future political institutions of Iraq should reflect the will of the Iraqi people and preserve the country's unity in a federal state. Democratisation, the rights of minorities and of women, and the rule of law were still seen as matters of concern by MEPs, although they also signalled a number hopeful developments, such as the fact that the government comprises members of the Sunni minority and that the Transitional National Assembly consists of 31% women. The EU should make a serious commitment to aid the general elections slated for December, by financing electoral assistance and sending observers. It should also offer its assistance in the drafting of a new constitution. Iraq's neighbouring countries could also play an important role in the process of pacification, preserving Iraq's unity and building the democratic process, MEPs said.

Parliament said that EU reconstruction aid should be aimed at providing basic services such as primary healthcare, education, clean drinking water and proper sanitation and work actively with the Iraqi authorities in the fight against terrorism. It expressed its surprise that reconstruction funds are partly administered by the World Bank and not entirely by the UN. Furthermore, the Iraqis should have full control over their oil production.

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The European Parliament in general supports the Commission's proposals concerning the European Social Fund (ESF) for 2007 to 2013 but Members want to strengthen some aspects like social inclusion, non-discrimination and gender equality. They want trans-national cooperation to be promoted as well as innovative actions. The ESF should support information and awareness-raising measures targeting the public with the aim of fighting discrimination and promoting equal treatment. In general the Member States should inform the population and the relevant stakeholders about activities eligible for financing by the ESF.

The draft ESF regulation for 2007 to 2013 provides a focussed framework for ESF interventions throughout the EU. It lays down specific provisions concerning the type of activities which may be financed by the ESF. The Commission's proposal says ESF actions may differ depending on whether they relate to the 'Convergence' or the 'Regional Competitiveness and Employment' objective. In the convergence objective more action especially to expand and improve investment in human capital, and action aimed at developing institutional capacity and the efficiency of public administrations, should be eligible for funding. Under both objectives, the ESF will provide support with a view to anticipating and managing economic and social change. Parliament wants to extend the action planned under the convergence objective to all cohesion countries (all new member states, Portugal, Greece and Spain).

The ESF is the major financial instrument of European social policy. It contributes to the economic and social cohesion objective set out in article 158 of the EC Treaty, by supporting policies and priorities aimed to achieve progress towards full employment, improve quality and productivity at work, and promote social inclusion and cohesion, in line with the guidelines and recommendations under the European Employment Strategy.

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Constanze Beckerhoff
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Respecting human rights, including women’s rights, is a sine qua non for membership of the European Union. Human rights, including women’s rights, should be right at the top of the agenda for the negotiations with Turkey, say MEPs in a own-initiative report drafted by Emine BOZKURT (PES, NL), adopted by 573 votes to 19, with 32 abstentions.

Women's rights and gender equality are embedded in the Community's basic principles and in much legislation which Turkey has to accept if it is to join the EU. MEPs emphasise that Turkey's progress in the field of legislation now needs to be implemented in practice.

The report emphasises the key role of civil society in pushing for the recent legislative reforms. MEPs believe that the whole political class, religious communities and the media must be involved if democratic change is to be achieved.

Among other concerns is the involvement of Turkish women in politics, which remains weak - only 4.4% of members of parliament are women and around 1% of representatives at local level. Parliament suggests that the political parties should review their party structures and adopt adequate strategies to reach a better balance of women and men in elected assemblies, including positive measures such as quotas

Violence against women is another issue raised in the report. MEPs call on the Turkish Government to take action to protect women at risk, such as providing easily accessible healthcare and legal support and protection. According to local NGOs, in 1995 almost all women living in slum areas of Ankara had experienced domestic violence, while of 1,259 women interviewed between 1990 and 1996, 88% claimed to be living in a violent environment.

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Lena Kraft
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With the average wage differential between men and women in the EU at 16 percent, the European Parliament is calling for measures to promote equal opportunities for men and women. Parliament has adopted a first reading co-decision report from Angelika NIEBLER (EPP-ED, DE) on a European Commission proposal to recast the directive on equal opportunities and equal treatment of men and women in matters of employment and work. The revised directive would simplify, clarify and modernise Community law by merging seven existing directives and incorporating case-law of the European Court of Justice into legislation.

The European Parliament supports the goal of recasting the directive, but also seeks to make some substantial changes and improvements. MEPs want to clarify that parental leave is an individual right of each parent. They wish to ensure that any less favourable treatment of a woman who is pregnant or on maternity leave should also be considered as discrimination. And MEPs require Member States to ensure that the social partners promote flexible working arrangements with the aim of facilitating the reconciliation of work and private life.

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Lena Kraft
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The European Parliament urged changes to Commission plans to reform the system of financial aid to fishermen. MEPs accept the principle behind the plans - to conserve fishing resources - but believe the reform's socio-economic impact must be looked at too. This is the thrust of a report by David CASA (EPP-ED, MT), which was adopted on Wednesday.

Under the Commission proposal, the European Fisheries Fund (EFF) will replace the current Financial Instrument for Fisheries Guidance (FIFG). The EFF, which will cover the period 2007-2013, will allocate a total of €4,963 million over that period for the 25 current Members States plus Bulgaria and Romania. The EFF will deal with five areas: adjusting the Community fishing fleet; fish-farming, processing and marketing; measures of common interest; sustainable development of coastal fishing areas; technical assistance.

The rapporteur presented a package of amendments which focuses on the following issues: the permanent withdrawal of vessels from fishing, the financing of fishing equipment and investment in aquaculture.

On the withdrawal of boats from fishing, the Commission proposal would only allow subsidies for scrapping vessels or re-assigning them to non-profit making purposes. MEPs want to widen the scope of this policy. They say public subsidies should be given for the scrapping of vessels or re-assigning them to non-fishing activities, or for creating joint ventures or for exports for non-fishing purposes. And MEPs want the Fund to be allowed to make lump-sum payments to crews of the vessels concerned.

On the financing of fishing equipment, MEPs would put special emphasis on smaller and older boats. They say funding should be "for fleet renewal aimed at the replacement of vessels with an overall length of less than 12 metres" and on replacing "vessels older than 20 years which are not operating safely" The Commission proposal makes no mention at all of "fleet renewal" or vessels "eligible for replacement".

On aquaculture, Parliament wants EFF investments to cover all parts of the production chain, including the construction of new installations and the expansion and modernisation of existing installations and mussels dredgers, especially to increase production of species with good market prospects, provided they are technically and financially viable and do not generate excess production capacity

On the sustainable development of coastal fishing areas, MEPs disagree with the Commission, which wants the fund to invest only in communities with more than 100,000 inhabitants.
Lastly, in a bid to help young fishermen, MEPs suggest paying individual premiums to individuals under 35 who can prove they have worked as fishermen for at least five years (or have undergone equivalent training) and who are becoming owners or part-owners of a second-hand fishing vessel for the first time.

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Nikos Salliarelis
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MEPs say the battle against poverty in the world is a matter for everyone. They welcome the UK Presidency’s commitment to prioritise development and the fight against poverty with a special focus on Africa. They also note the critical role that civil society organisations have to play and welcome the initiative of the worldwide alliance ‘The Global Call to Action against Poverty’ which brings together more than 600 NGOs from around the world.

Parliament welcomes the G8 commitment to debt cancellation forf Highly Indebted Poor Countries, but they warn that "debt relief is no panacea in the fight against poverty." Other measures are also needed, such as improving the quality and efficiency of aid, the fight against corruption and greater transparency.

MEPs support the increase in EU aid spending approved by the Council on 16-17 June. However, they call for better use of existing aid, notably through the reorganisation of priorities to focus on the Millennium Development Goals. They say the EU and its Member States should devote at least 20 per cent of their aid to health and education projects.

The EU should also ensure that its internal policies are compatible with its international commitments. For example, during negotiations at the WTO, it should, along with other industrialised countries, give developing countries better access to its markets - whether for agriculture, industry or services - and set a timetable for the abolition of agricultural export subsidies.

Finally, to improve the visibility of the EU's development aid activity, MEPs want the Union to fund a number of particular causes, such as vaccination of children and the fight against malaria, in partnership with the relevant organisations.

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Armelle Douaud
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Parliament adopted the legislative resolution.

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Parliament gave its assent to the accession of the EC to the regulation.

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Armelle Douaud
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The European Parliament has adopted today two reports by Johannes BLOKLAND (IND/DEM, NL) on pollutant release and transfer register. The first one is about the UN-ECE protocol on pollutant release and transfer register (United Nations Economic Commission for Europe) and has been adopted without any amendment as this international agreement cannot be amended by the EP. This Protocol is the first legally binding multilateral agreement, beyond the borders of the EU, on pollutant release and transfer registers.

The second Blokland report was also adopted, with a number of compromise amendments agreed between the representatives of the European Parliament and the Council with a view to a first reading conclusion of this regulation. The amendments add technical precision and strengthen free access to information.

This new regulation incorporates the relevant parts of the protocol into European law. In order to ratify the UN-ECE Pollutant Release and Transfer Register (PRTR) Protocol, the existing more limited European Register has to be replaced by a comprehensive European PRTR, including reporting on more pollutants, more activities, releases to land, releases from diffuse sources and off-site transfers. The overall objective is to enhance public access to environmental information through the establishment of a coherent, integrated, European-wide PRTR, thereby also contributing to the prevention and reduction of pollution, delivering data for policy makers and facilitating public participation in environmental decision making.

The "comitology" procedure is throwing up another conflict between MEPs and the European Commission. This time the dispute is over whether to scrap restrictions imposed two years ago on the use of decaBDE, a brominated flame-retardant used chiefly to ensure that electric and electronic devices, such as televisions and computers, do not burst into flames. The Commission wants to lift the restrictions but on Wednesday, MEPs adopted a resolution opposing this plan.

In another resolution of 12 April on dangerous substances, Parliament had already criticised the Commission for its abuse of the comitology procedure. This is a procedure by which the power to take decisions on mainly technical matters is delegated to the European Commission, which is assisted for this purpose by a whole range of committees of national representatives. Parliament, however, has a right of scrutiny and has one month in which to make its opinion known.

The plenary believe the Commission has clearly exceeded its implementing powers and they are calling on the Council to oppose the proposal. They dispute the scientific basis of the Commission's proposal and believe the restrictions should stay in place. A scientific advisory committee of the Commission itself also takes this view. Brominated flame-retardants can have toxic effects on health and the environment. Some of them, penta- and octaBDE (*), were in fact completely banned two years ago. Parliament fought up to the conciliation stage to win a ban on octaBDE and restrictions on decaBDE, pending - for the latter - more precise risk assessments. The assessments carried out do not convince MEPs and they note that less toxic substitute products exist.

(*) Pentabromodiphenyl ether, octabromodiphenyl ether, decabromodiphenyl ether, etc., depending on the number of bromine atoms present in the chemical structure of the molecule.

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The report was adopted without amendment.

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Jean-Yves Loog
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