REPORT on the proposal for a Council decision amending Decision 2002/546/EC as regards its period of application

16.11.2011 - (COM(2011)0443 – C7‑0233/2011 – 2011/0192(CNS)) - *

Committee on Regional Development
Rapporteur: Danuta Maria Hübner
(Simplified procedure – Rule 46(1) of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council decision amending Decision 2002/546/EC as regards its period of application

(COM(2011)0443 – C7‑0233/2011 – 2011/0192(CNS))

(Special legislative procedure – consultation)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2011)0443),

–   having regard to Article 349 of the Treaty on the Functioning of the European Union, pursuant to which the Council consulted Parliament (C7‑0233/2011),

–   having regard to Rules 55 and 46(1) of its Rules of Procedure,

–   having regard to the report of the Committee on Regional Development (A7-0381/2011),

1.  Approves the Commission proposal;

2.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

3.  Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament;

4.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

EXPLANATORY STATEMENT

The Treaty on the Functioning of the European Union (TFEU), does not in principle allow any difference between the taxation of local products of the Canary Islands and the taxation of products from Spain or other Member States.

Council Decision 2002/546/EC of 20 June 2002[1], adopted on the basis of Article 299(2) of the EC Treaty, authorises Spain, up to 31 December 2011, to apply exemptions from or reductions in the tax known as AIEM to a list of products produced locally in the Canary Islands. Decision 2002/546/EC sets out the reasons for adopting specific measures, designed to strengthen local industry by making it more competitive.

The global economic crisis of 2009, with its impact in the reduction of travelling, had severe consequences on the economy of Canary Islands, highly dependent on the revenues from tourism. Hence, unemployment rose from a rate oscillating between 10,4% and 12%, for the 2001-2007 period, to 26,2% in 2009.

On 16 November 2010, Spain submitted a request to the European Commission to extend the period of application of Decision 2002/546/EC for two years, so that its expiry date coincides with the one of the Guidelines on National Regional Aid for 2007-2013. The Commission has assessed it in light of the scale of the handicaps affecting the Canary Islands. It has come to the conclusion that it is justified to grant the request on the basis of the available elements.

As a consequence, there is a proposal for a Council Decision amending Decision 2002/546/EC as regards its period of application, allowing the extension of the period of application until 31 December 2013.

CONCLUSION

Following the provisions or article 46 of the Rules of Procedure, the Chair proposes to adopt this resolution without amendments.

• [1]               OJ L 179, 9.7.2002, p.22-27

PROCEDURE

Title	Amendment of Decision 2002/546/EC as regards its period of application
References	COM(2011)0443 – C7-0233/2011 – 2011/0192(CNS)
Date of consulting Parliament	1.9.2011
Committee responsible        Date announced in plenary	REGI 13.9.2011
Committee(s) asked for opinion(s)        Date announced in plenary	ECON 13.9.2011
Not delivering opinions        Date of decision	ECON 13.9.2011
Rapporteur(s)        Date appointed	Danuta Maria Hübner 6.10.2011
Simplified procedure - date of decision	14.11.2011
Discussed in committee	14.11.2011
Date adopted	14.11.2011
Date tabled	16.11.2011