European Parliament resolution on the draft general budget of the European Union for the financial year 2003 (C5&nbhy;0300/2002 – 2002/2004(BUD)) and Letter of amendment No 1/2003 (12640/2002-C5-0480/2002) to the draft general budget of the European Union for the financial year 2003 Section III - Commission

P5_TA(2002)0509 A5-0350/2002

The European Parliament,

–   having regard to Article 272 of the EC Treaty and Article 177 of the Euratom Treaty,

–   having regard to Council Decision 2000/597/EC, Euratom, of 29 September 2000 on the system of the European Communities" own resources(1),

–   having regard to the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and the Commission on budgetary discipline and improvement of the budgetary procedure(2),

–   having regard to the new Financial Regulation due to enter into force on 1 January 2003(3),

–   having regard to the preliminary draft general budget for the financial year 2003 (COM(2002) 300),

–   having regard to the draft general budget for the financial year 2003 (C5-0300/2002),

–   having regard to its resolution of 2 July 2002 on the 2003 budget in view of the conciliation procedure before the Council's first reading(4),

–   having regard to its resolution of 2 July 2002 on the implementation profile and transfers as well as supplementary and amending budgets(5),

–   having regard to the maximum rate of increase for non-compulsory expenditure of 3,8% (for 2003 C5-0207/2002),

–   having regard to Letter of amendment No 1/2003 (12640/2002 – C5-0480/2002) to the draft general budget of the European Union for the financial year 2003,

–   having regard to Rule 92 and Annex IV of its Rules of Procedure,

–   having regard to the report of the Committee on Budgets and the opinions of the other committees concerned (A5&nbhy;0350/2002),

A.   whereas the Council's draft budget represents in appropriations for payments 1.01 % of the EU-GNI compared to the 1.08 % of EU-GNI established by the financial perspective and compared to the 1.03 % of EU-GNI proposed in the Commission's preliminary draft budget,

B.   whereas in the draft budget the appropriations for payments amount to EUR 96 991 billion, representing a reduction of EUR 1 215 million (-1,2 %) compared to the PDB, an increase of 1.4 % compared to the 2002 budget, and an increase in compulsory expenditure compared to the 2001 budget of 1.84 % and in non-compulsory expenditure of 2.1 %,

C.   whereas the Commission has presented a proposal to mobilise the flexibility instrument according to point 24 of the IIA of 6 May 1999, for a total amount of EUR 125 million of which EUR 66 million is intended to cover the deficit of heading 5 in the PDB, EUR 32 million for the reform of the Common Fisheries Policy and 27 million to finance the second part of the restructuring of the Community fleet,

D.   whereas, following the floods during the summer of 2002, the Commission has also presented a proposal for a new interinstitutional agreement in order to set up a mechanism to finance the reconstruction of the damage caused by natural disasters in the Member States and the candidate countries where negotiations are underway,

Results of the Conciliation

1.  Underlines that, for the first time before the Council's first reading, the Council and Parliament reached an agreement where the main outcome was to maintain heading 5 below the ceiling fixed by the Financial Perspective, thus rejecting the Commission's request for mobilisation of the flexibility instrument and without jeopardising the preparation of enlargement;

2.  Recalls that in addition to the rigour applied to administrative expenditure, the conditions set up by Parliament were fully obtained, in particular the decision to finance the needs for enlargement by means of frontloading, to extend the early retirement scheme to Parliament, including for political group staff, to widen the scope of the use of the Emergency Reserve for civil crisis management and to start a process in order to find an appropriate involvement of Parliament in CFSP in the future;

Implementation and Budgetary Methods

3.  Welcomes the outcome of initiatives taken within Parliament, in particular the new type of budgetary debate allowing Parliament to express its concern to the Commission on budgetary issues and creating a new institutional dynamic in relation to the new provisions on the legislative programme and stocktaking procedure; underlines the positive results of the new implementation methods involving the specialised committees in a better quantitative and qualitative monitoring of the budget; welcomes the preparatory work on the future activity based budgeting nomenclature;

Payments and Backlog

4.  Underlines that the cut of EUR 1 215 million over the PDB made by the Council in the draft budget, is not in line with the aim to improve the implementation of Community funding as expressed by both arms of the Budgetary Authority in the respective guidelines; notes that the increase remains moderate and fully respects the ceiling of the Financial Perspective;

5.  Endorses the responsibility to make the best use of the European "taxpayer's" money; points, in this respect, at the considerable amounts of unspent expenditure which have been returned to Member States over the last years; is also willing to ensure sound management of the EU budget by providing the Commission with the necessary means;

6.  Recalls the joint declaration of Parliament, Council and Commission of 14 December 2000 as an important objective of the Commission Reform, on the reduction of the outstanding commitments to normal level by December 2003; notes that the Commission in the 2002 Budget procedure has committed itself to present implementation profiles and action plan to put an end to the abnormal outstanding commitments; regrets that despite the progress made by the Commission allowing to reverse the negative trend for outstanding commitments, in particular in external programmes, in September 2002 nonetheless, the total outstanding commitments still amount to EUR 107 billion; increases payment appropriations on the budget lines where the backlog has been reduced over the past year in view of providing the Commission with the necessary means to continue on the positive trend;

7.  Calls on the Commission to submit before Parliament's second reading:

B...A Lines

8.  Is willing to continue the rationalisation of the needs between the operational and administrative expenditure on the basis of an overestimation of the needs for the latter; decides to cut the appropriations of the B...A lines where the implementation at 15 July is lower than 10% and to increase the corresponding operational line by the same amount, and to create a global reserve for the appropriations of the B...A lines where the implementation at July is between 10% and 35%;

Heading 1: Agriculture

9.  Expresses its support for the comprehensive further development of the CAP and calls for a fair, just and sustainable agricultural policy both for the Member States and for the candidate countries; reiterates its call in this context for a shift in the balance of agricultural funding by gradually strengthening rural development such as support to young farmers;

10.  Takes the decision to use part of the margin, left by the Commission under heading 1a) in the PDB and increased by the Council in the DB (under heading 1a), for financing Parliament's priorities and in particular, measures in the field of veterinary animal welfare, public health and genetic resources; asks the Commission to take them on board in the Letter of Amendment; stresses the importance of reconversion from tobacco growing into other crops and activities, and welcomes the proposed additional financing for studies on possibilities of reconversion;

11.  Is critical to the current system of export subsidies for transport of live animals, and to enhance transparency, proposes to change the nomenclatures of the budget lines on export subsidies for B1-210 (beef and veal), B1-2300 (live swine), B1-2311 (poultry) by introducing new budget lines covering the transport of live animals; proposes to reduce the export subsidies for beef and veal in order to reduce transport of live animals;

Heading 2: Structural Funds

12.  Considers that the cut of EUR 525 million in payment appropriations made by the Council in its draft budget is unacceptable, as the Member States should be encouraged to implement the structural funds to their full potential; urges the Member States with significant payment backlogs from previous programming periods, to clear them and to avoid further delays; Stresses the need for more simplification in the procedures;

13.  Recalls the joint statement made by Parliament and the Council to finance the remaining amount of EUR 27 million for the restructuring programme of the Community fleet that used to fish in Moroccan waters in accordance with the IIA provisions;

14.  Takes note of the Letter of amendment No 1/2003 to the PDB presented by the Commission; however, pending Parliament's and the Council's decision on the Reform of the Common Fishery Policy, and in absence of an agreement on the financial requirements for the reform, considers it premature to enter new appropriations in the budget;

Heading 3: Internal Policies

15.  Welcomes that the vote on budgetary amendments reflects the Guidelines with a view to reinforcing the contribution of the EU budget to the migration and asylum policy in line with the conclusions of the Seville European Council by entering additional appropriations to policies of this area such as the European Refugee Fund, measures to improve migration policy including through better cooperation with third countries, and the setting up of programmes to facilitate integration and fight social exclusion;

16.  Stresses the need to facilitate the preparation of enlargement with increased appropriations for pilot projects and preparatory actions in view of developing Community programmes adjusted to the new geographical and economical dimension of the enlarged Union; creates a new pilot project aiming at developing networks between the SMEs of the present and enlarged Union, and those covered by the TACIS, MEDA and CARDS programmes;

17.  Underlines the need to increase the capacity of small and medium-sized enterprises especially craft undertakings and microenterprises, in the evolving economic and geopolitical context of the forthcoming enlargement, and to support measures in the field of vocational training as well as to develop sustainable programmes to improve the level of health and safety and corporate social responsibility;

18.  Notes the efforts made by the Commission to improve the follow-up of pilot projects and preparatory actions; asks the Commission to speed up the start of the process, to establish a specific implementation plan for pilot projects and preparatory actions, and to provide the budgetary authority with quarterly, quantitative and qualitative information regarding implementation;

19.  Emphasises the need to continue to provide budgetary support through pilot projects and preparatory actions for initiatives which are not covered by the main multiannual programmes, in the field of education, youth policy, including e-learning in line with the conclusions of the Lisbon European Council, and minority languages; in this context, creates a new pilot project for experimental measures to promote technological development and to foster cooperation with universities at regional level with the establishment of regions of knowledge;

20.  Welcomes the decision to institute a pilot scheme designated ENEA to promote the mobility and free movement of the elderly at European level in the social, cultural, artistic, educational and sporting spheres; is in favour of further development and implementation of EU social policy through new forms of civil dialogue; urges the Commission to put forward a proposal supporting those organisations taking part in work to develop civil dialogue;

21.  Recalls that the efforts developed by Parliament over the past years aimed to set up an information policy of the Union at the service of the citizens with better value for money and new synergies; in this context, asks for a plan of savings in administrative and human resources, in particular at decentralised level, to be presented by the interinstitutional group on information by 30 April 2003; considers that the reduction made on PRINCE, following the introduction of the euro, does not correspond to the initial aim of the programme which was to provide information on the priorities of the Union to the European citizens; therefore, re-establishes part of the appropriations with a breakdown reflecting the new priorities such as enlargement and the future of the Union; reminds the Commission that it should not undermine the principles underlying the PRINCE programme as agreed in the 1996 budget; welcomes the introduction in the budget of appropriations for facilitating access to documents for the European citizens;

22.  Follows the Council in its decisions to moderate the increase of subsidies to the decentralised agencies; decides to put 50 % of the appropriations in the reserve for those agencies for which a solution on the location and effective operation is pending; welcomes the priorities of budgetary transparency in the new Financial Regulation due to enter into force on 1 January 2003 while underlining the Council's and Commission's inconsistency to request new tasks from the agencies without additional funding; is willing to give more visibility to the cost of the preparation of enlargement within each agency's budget in view of the calculation of the new FP for the enlarged Union;

23.  Welcomes the budget decision to launch a new pilot project meeting the need to invest, within Member States, in Clean Development Mechanisms, as provided for in the Kyoto Protocol; considers that the same measures can be taken in developing countries as part of the 'Environment in the developing countries' action (B7-620);

Heading 4: External Policies

24.  Stresses the impossibility of financing all needs in the context of external policies due to the constraints of heading 4, thus jeopardising the credibility of the EU throughout the world; deplores, in particular, the reductions made on budget 2002 for a number of important programmes and budget articles including the MEDA programme for which the commitments will be reduced by 25% compared to the 2000 financial year; urges the Council and the Commission to take it into consideration when proposing new policies and to cooperate in solving the structural problem of the ceiling of heading 4 in the short and medium-term;

25.  Considers that the need for greater budgetary transparency, the Financial Perspective should be reviewed in order to transfer the pre-accession aid for Cyprus and Malta from heading 4 to heading 7;

26.  Confirms its willingness to support the reconstruction of Afghanistan but recalls that this funding is conditional on maintaining, in global terms, the same level of expenditure related to other EU priorities as defined by the European Parliament; has reduced the assistance for Afghanistan by EUR 63 million compared to the draft budget; is prepared to finance the remaining needs for Afghanistan within the framework of the Interinstitutional Agreement of 6 May 1999; therefore asks the Council to enter into negotiations with the European Parliament in order to mobilise the necessary financial resources;

27.  Recognises that the global HIV/AIDS crisis is a major health, development and security issue affecting all nations and reiterates its determination to find a satisfactory solution to the financing of an appropriate EU contribution to the Global Fund;

28.  Reaffirms its intention to enter a budget heading for the rehabilitation and reconstruction of the territories administered by the Palestinian Authority, in line with the conclusions of its resolution of 12 March 2002 on the 2003 budget guidelines (Section III - Commission)(6);

29.  Emphasises the urgent need to increase EU direct interventions in the fields of basic health and basic education in developing countries, building on the agreement to ensure a minimum 35% allocation to social sector spending; deeply regrets that existing Country Strategy Papers reveal 31% devoted to transport compared to only 10% to all health and education; reiterates that the full implementation and effective operation of agreed targets and indicators to measure performance should be a prerequisite before any consideration of further simplification of the budget;

30.  Has decided to increase the budget lines for NGO´s and Human Rights in order to restore the level of the 2002 budget; is concerned about the delays in implementing the EIDHR micro-projects schemes of 2001 and 2002; recalls that Parliament, on several occasions, has asked for a simplification of the rules for small-scale projects and that it has stressed the importance of the deconcentration process in this respect; therefore asks the Commission for a clarification on the internal audit which is currently being carried out within Europe-aid to assess the capacity of Commission delegations to implement the micro-projects schemes;

31.  Recalls that at the conciliation of 19 July 2002, no agreement on CFSP figures was reached and therefore enters EUR 30 million into chapter B8, corresponding to Budget 2002, as provided for by point 39 of the IIA; welcomes the EUPM in Bosnia Herzegovina as a contribution for stability and security; indicates its positive approach to find the appropriate funding in parallel with an appropriate involvement of Parliament and the Commission in such measures under CFSP as agreed at the July 2002 conciliation; is of the opinion that to this end an interinstitutional agreement between the Council, Parliament and the Commission should be agreed by the second reading of the 2003 budget; moreover, invites the Council to present its workplan detailing the operational expenditure on CFSP and ESDP 2002-2007;

Heading 5: Administrative Expenditure

32.  Welcomes the agreement reached between Parliament and the Council in July 2002 and the common efforts to maintain rigour in the Union's administrative expenditure by maintaining them under the ceiling of heading 5 and by financing the needs by means of frontloading and anticipating expenditure in the 2002 budget; points out that this operation initiates a concrete multiannual approach between two financial years;

33.  Confirms its will to give priority to the preparation of enlargement and in particular to provide the necessary appropriations for human resources and the publication of the acquis communautaire; is of the opinion that the outcome of savings and frontloading should contribute to this goal by way of a transfer to part A of the budget;

34.  Reaffirms its commitment to equal opportunities for the disabled by entering a reference thereto in the remarks to Chapter A-30 (Community subsidies); asks the Commission, in time for the second reading of the 2003 draft budget, to come forward with a feasibility study as to the financial implications of setting up a day and residential care centre for disabled children of European officials;

35.  Urges the Commission to present a proposal for a regulation establishing a pension fund for officials of the institutions and bodies of the European Union; creates the appropriate budgetary structure with a view to giving a positive signal pending the adoption of the decision;

36.  Supports the decision not to apply the weighting factor to the salaries of Commissioners from July 2002 and expects this to remain the position for the foreseeable future; looks forward to a decision of the Commission detailing how payments made since 1998 will be repaid;

Commission Reform

37.  Reminds the Commission that its key project is the reform of its administration and management which is fully supported by Parliament; states that the successful conclusion and implementation of this reform during the mandate of this Commission is an indispensable cornerstone for the success of enlargement and better acceptance of the EU by its citizens; notes that the public does not have a clear picture of what the reform is about and the efforts being made to better serve citizens and to provide value for money; calls on the Commission to submit to Parliament by 15 November 2002:

38.  Reiterates its will to ensure the success of the Commission reform through close follow-up of the use of the appropriations made available in the budget, in particular concerning the additional human resources; is determined to continue the efforts to improve the budget execution aiming to reduce the outstanding commitments according to a strict implementation plan;

39.  Welcomes that the vote on budgetary amendments reflects the guidelines of the study which will be commissioned to set out potential priorities for EU policy-making in the field of foreign affairs for 2002-2007; calls on the Commission to ensure that this study be submitted to Parliament before 30 September 2003;

Heading 7: Pre-accession

40.  Restores the payments reduced by the Council for PHARE, SAPARD and ISPA according to its general strategy on payments which seeks to significantly improve implementation and the will to encourage the preparation of enlargement;

o
o   o

41.  Instructs its President to forward this resolution together with the amendments to the Council, the Commission and the other institutions and bodies concerned.

(1) OJ L 253, 7.10.2000, p. 42. (2) OJ C 172, 18.6.1999, p. 1. (3) OJ L 248, 16.9.2002. (4) P5_TA(2002)0348. (5) P5_TA(2002)0349. (6) P5_TA(2002)0096. (7) OJ C 304, 24.10.2000, p. 135.

European Parliament resolution on the draft general budget of the European Union for the financial year 2003 (C5&nbhy;0300/2002 – 2002/2005(BUD))

P5_TA(2002)0510 A5-0351/2002

The European Parliament,

–   having regard to Article 272 of the Treaty,

–   having regard to Council Decision 94/728/EC, Euratom of 31 October 1994 on the system of the European Communities' own resources(1),

–   having regard to the Interinstitutional Agreement of 6 May 1999 between the European Parliament, the Council and the Commission on budgetary discipline and improvement of the budgetary procedure(2),

–   having regard to the new Financial Regulation due to enter into force on 1 January 2003(3),

–   having regard to its resolution of 12 March 2002 on the guidelines for the 2003 budgetary procedure(4),

–   having regard to its resolution of 14 May 2002 on the estimates of revenue and expenditure of Parliament for the financial year 2003(5),

–   having regard to the preliminary draft general budget for the financial year 2003 (COM(2002) 300),

–   having regard to the draft general budget for the financial year 2003 (C5&nbhy;0300/2002),

–   having regard to Rule 92 and Annex IV of its Rules of Procedure,

–   having regard to the report of the Committee on Budgets and the opinions of the Committee on Industry, External Trade, Research and Energy and the Committee on Petitions (A5&nbhy;0351/2002),

A.   whereas the ceiling for heading 5 ("Administrative expenditure") for the financial year 2003 is fixed at EUR 5 381 000 000 by the financial perspective in force,

B.   whereas the ceiling for heading 5 was exceeded by EUR 55 million on the basis of the estimates of expenditure for 2003 as submitted by the institutions,

C.   whereas the Council has established a draft budget totalling, for the "other sections", EUR 1 853 737 730, which represents an increase of 3.6% over the 2002 budget allocations, thus reducing the preliminary draft budget in heading 5 by EUR 71 million and leaving a margin of EUR 16.4 million under the ceiling,

General framework

1.  Underlines the fact that pressure on the ceiling for heading 5, due to the constraints of the current financial perspective, will be highest in 2003; therefore, welcomes the fact that Parliament and the Council have agreed on a common approach concerning the broad aspects of heading 5 and that a joint statement was adopted at the conciliation meeting of 19 July 2002 in which both sides undertook to observe the existing ceiling for heading 5, not to use the flexibility instrument for this heading, to endeavour to finance the publication of the "acquis communautaire" and other pressing needs in the Commission by means of a frontloading operation and to transfer EUR 29 million entered in specific reserves for the "acquis" to the Commission;

2.  Reiterates that providing the institutions with the necessary means to prepare for the forthcoming enlargement remains Parliament's key priority for the 2003 budget; is convinced that, due to the given constraints, bringing forward expenditure to the 2002 budget with a view to creating additional leeway in 2003 remains the best option to make appropriations available for the 2003 budgetary priorities; underlines the fact that the Council has committed itself to facilitating all the necessary procedural steps for the frontloading operation, including mopping-up transfers and an intersection supplementary and amending budget, as proposed by Parliament; stresses that all institutions are called on to make a contribution to solving the difficult situation in heading 5, including Parliament itself and the Council, and to show solidarity with the Commission, which has been hit hardest by the constraints imposed by the financial perspective;

3.  Notes that the Council continues to take an across-the board approach to heading 5 and that no options have been examined by that arm of the budgetary authority to solve the specific problems in each institution; points out that the Council's cuts in each section would have an adverse effect not only on the normal functioning of the institution concerned, but also on its capacity to prepare for enlargement, if left unamended; has decided, therefore, to apply a strategy in the "other sections" of re-entering appropriations to cover the most pressing needs in each section and offsetting them by other budgetary measures, thus minimising the budgetary impact on the margin left under the ceiling;

4.  Takes note of the second report of the secretaries-general of the institutions on trends in heading 5 and on potential savings from interinstitutional cooperation, which concludes, inter alia, that institutions will, given current parameters, be able to finance enlargement expenditure below the ceilings for heading 5 ("Administrative expenditure") of the financial perspective and heading 8 ("Enlargement") of the annexed financial framework EU-21 over the period 2004-2006; endorses, in principle, the Council's decision to reflect the potential savings from interinstitutional cooperation in the draft budget for 2003; points out, however, that a more in-depth examination of the scope for interinstitutional cooperation needs to take place; considers that the reports on likely movement in heading 5 are a useful tool for the budgetary authority that provide a multiannual setting for the annual budgetary decisions; requests the secretaries-general of all institutions, therefore, to submit such a report by May of each year;

5.  Welcomes the establishment of the European Communities Personnel Selection Office as an appropriate interinstitutional measure to help institutions prepare for enlargement more efficiently and agrees, therefore, to the "transfer" of posts from the participating institutions; notes that the office will be responsible on behalf of the institutions for preparing and conducting open competitions and for establishing reserve lists of candidates; underlines the fact that it remains the prerogative of each institution to recruit staff according to its own needs and profiles required;

6.  Notes that the European Convention will not have concluded its work by the end of 2002 and agrees, therefore, also with a view to ensuring a fair balance between the institutions, to enter the following amounts in the respective sections for the contributions to cover the Convention's activities until July 2003: EUR 500 000 in the reserve in the Parliament section, EUR 200 000 in the Council section and EUR 750 000 in the Commission section;

7.  Underlines the need to swiftly establish a pension fund for officials of the institutions and the bodies of the European Union;

Section I - European Parliament

8.  Welcomes the decision of its Bureau to make an amount of EUR 42 690 million available in its 2002 Budget for the frontloading operation to help solve the precarious situation in heading 5; considers that this measure is to be seen as a political gesture towards the Commission and the other institutions in the light of the exceptional situation in administrative expenditure; recalls, however, that these appropriations were earmarked for Parliament's property policy and notes that envisaged measures are now postponed from 2002 to 2003; has decided, therefore, to enter an additional amount of EUR 35 million against Article 209 (Provisonal appropriation to cover the institution's property investments) in its 2003 budget;

9.  Underlines the fact that preparing Parliament for the enlargement of the European Union and for welcoming the new Members of Parliament in 2004 is the key priority under its 2003 budget; notes that the Bureau has updated and revised the three-year plan on preparations for enlargement, having been invited to do so by the budgetary authority, and points out that this plan remains an indicative framework for subsequent budgetary procedures, with due regard for the principle of annuality;

10.  Remains convinced that negotiations with 10 candidate countries can be concluded by the end of 2002, as provided for in the Commission's road map, and that new Member States could join the Union by 1 January 2004; points out, therefore, that Parliament's 2003 budget must make provision for this scenario and agrees to leave appropriations for this purpose in Chapter 103 ("Enlargement reserve") pending political and administrative decisions to be taken;

11.  Remains committed to the principle of "controlled full multilingualism" after enlargement and to maintaining equality between languages; notes that the three-year plan no longer proposes a transition to bi-active interpretation by 2009, but instead endorses the use of a mixed system, according to which current interpretation arrangements would be combined with bi-active interpretation; can agree to the use of the mixed system, as this ensures the best possible use of current resources; expects, however, the proposed reforms to remain within acceptable budgetary limits; endorses also the proposal of the Steering Committee on Enlargement to move towards an externalisation rate of 50% for Parliament's translations;

12.  Enters EUR 8 million against Article 250 ("Meetings in general") to welcome up to 147 observers from the candidate countries as of the date when the respective country's accession treaty is signed; notes that, in accordance with the arrangements adopted, observers will be entitled to attend plenary sittings, attend committee and delegation meetings and speak in them, take part in political group activities, be given office facilities, receive the basic flat-rate daily subsistence allowance and be reimbursed for travel expenses actually incurred; notes also that linguistic support can be provided if translators and interpreters have been recruited;

13.  Welcomes the adoption of the special early retirement scheme for 125 officials of the European Parliament, including the staff of the political groups, as a budget-neutral measure to improve productivity; has decided, however, to leave a token entry against Item 1218 ("Special retirement scheme for permanent and temporary staff of the European Parliament") pending further internal administrative decisions; takes the view also that specific early retirement arrangements with a view to enlargement will need to be adopted as has been the case with previous enlargements;

14.  Has decided to transfer EUR 1 million from Chapter 103 ("Enlargement reserve") to Item 2000 ("Rent and annual lease payments") for the rent of the Montoyer 70 building to provide additional office space on a transitional basis until the D4 and D5 buildings projects have been completed, and to transfer EUR 2.8 million to the same item for the rent of the IPE III building in Strasbourg; has also decided to transfer EUR 5.6 million to Article 206 ("Acquisition of immovable property") for the financing of the Atrium II Building in Brussels; notes that the Bureau has taken a decision, in principle, to build two new conference rooms next to the LOW Building in Strasbourg and that an exploratory mandate has been approved; instructs its Bureau to consult the Committee on Budgets before any legally binding decisions are taken; notes, however, that no impact is expected on the 2003 budget from the Strasbourg measures;

15.  Agrees that the recruitment of staff in preparation for enlargement, in addition to the posts made available in the estimates of Parliament, should take place on the basis of auxiliary contracts, as is the case at the Commission; underlines the fact that this is a transitional measure pending ratification of the accession treaties; has decided, however, to leave the appropriations for possible recruitment to fill up to 410 posts (365 for the General Secretariat and 45 for the secretariats of the political groups and non-attached Members) in Chapter 103 ("Enlargement reserve");

16.  Recalls that 114 enlargement-related posts were created in the estimates for the General Secretariat and 65 posts for the secretariats of the political groups and non-attached Members; has decided to make appropriations available also for the following measures in the establishment plan:

17.  Has decided to reduce appropriations against Chapter 11 ("Staff in active employment") by EUR 9.3 million to reflect the new salary adjustment parameters submitted by the Commission and discontinuation of the adjustment method as a result of the revision of the Staff Regulations;

18.  Takes note of the Secretary-General's proposals on improving assistance to Members for their legislative and budgetary responsibilities, which are Parliament's core activities; agrees that human resources in its Administration must be better integrated to improve service to Members and endorses the concept of increasing synergies between DG2 and DG4 in particular; considers also that the problems arising from geographical dispersion remain unresolved; insists, however, that the reform should not lead to new forms of compartmentalisation or add bureaucracy; has decided to amend the remarks against Article 260 ("Limited consultations, studies and surveys, STOA programme") to launch a pilot scheme in the 2003 budget concerning the establishment of budgetary allocations to provide external expertise for parliamentary committees;

19.  Takes the view that, while enhancing the democratic legitimacy and quality of EU law-making jointly with the Council and the Commission in the context of the negotiations of an interinsitutional agreement on better law-making, Parliament's rights are safeguarded, full transparency for all stages of the legislation procedure is guaranteed and the Council conducts all its legislative deliberations in public;

20.  Recalls that its new Rules of Procedure provide for an improved mechanism to reconcile the decisions of the legislative and the budgetary authority; instructs its Bureau and political authorities, by analogy with the new rules, to consult the Committee on Budgets before any decisions with significant budgetary implications are taken;

21.  Has entered EUR 80 000 against Item 3601 ("Cost of meetings and other activities of the European Parliamentary Association"); underlines the fact that the Association should be subject to the same standards of accounting and auditing as the Association of Former Members of the European Parliament and that it should present its estimates of expenditure for the coming year and a balance sheet for the previous year if it requests funding from Parliament's budget in future; considers also that the cost of using Parliament's facilities (for instance rooms and interpretation) should be offset against the grant to the Association;

22.  Notes that the Europe House arrangement has been put into practice for most of its information offices and that progress is being made in instances where this is not yet the case; recalls that the aim of Europe Houses is to improve service to the citizen, facilitate access to information, raise the profile of the European Union as a whole and to reduce duplication of effort and resources; is of the opinion, however, that there is scope for further cooperation between Parliament and Commission services; notes also that it is imperative to bring Parliament closer to the citizens it represents and to improve its outreach, in particular with a view to the next elections;

23.  Takes note of the proposed measures to enhance the transport service for Members at key times; agrees that it is legitimate to provide Members with the necessary facilities to fulfil their parliamentary responsibilities; notes that the proposed measures will have no significant budgetary impact and that the current level of appropriations is sufficient to cover needs; requests its Secretary-General to present a report, when the preliminary draft estimates for 2004 are submitted, on the various options for Members' transport facilities, together with details of the respective budgetary impact;

24.  Agrees to continue making provision for the participation of Members at a conference of parliamentarians from the WTO Member States and for participation at meetings of a WTO Parliamentary Assembly, should such an assembly be established;

25.  Has decided to enter a new item 2831 (Internet broadcasting of plenary sittings and meetings) with a token entry; considers that this is an important political initiative aimed at providing more transparency, improving service to the citizen and bringing Parliament closer to its electorate; takes note of the conclusions of the feasibility study and notes that a political decision needs to be taken; invites its political authorities to examine these options and make the necessary proposals in the context of the 2004 estimates;

Section II - Council

26.  Has decided to delete EUR 18 million against Chapter 103 ("Provisional appropriations: publication of the acquis communautaire") in accordance with the agreement reached with the Council at the conciliation meeting of 19 July 2002 concerning the frontloading operation to bring expenditure forward; agrees, with due regard for the Gentlemen's Agreement, not to reduce the total amount of EUR 430 million for this section;

27.  Takes note of the Council's decision, in view of the pressure on the ceiling for heading 5, to postpone to subsequent years expenditure amounting to EUR 8.5 million for the acquisition of the LEX building, which should provide additional office space to cater for enlargement;

Section IV - Court of Justice

28.  Endorses making appropriations available for some of the Court's priorities requested in its estimates, as they appear justified; points out, however, that the cost of these measures can be offset by a further reduction in staff expenditure without undermining the Court's enlargement preparations:

29.  Has decided to reduce the appropriations made available by Council in the draft budget for the creation of 53 enlargement-related linguistic posts (reducing the period from six to three months), in order to offset the cost of all the above establishment plan measures;

Section V - Court of Auditors

30.  Takes the view that the Court of Auditors, on the basis of the appropriations made available by the Council in the draft budget, would be in no position either to prepare for enlargement, or to guarantee the normal functioning of the institution and its Members; recalls also that the Court has already made a considerable contribution towards easing the pressure in heading 5 by rescheduling its construction project and thus reducing its 2003 estimates by EUR 5 million over the 2002 budget;

31.  Has decided to authorise the following measures:

32.  Has decided to offset the cost of all the above measures by cutting a total of EUR 1.65 million against the following lines: EUR 820 000 against Article 211 ("Computer networks"), EUR 30 000 against Item 2211 ("Replacement of furniture") and EUR 800 000 against Article 270 ("Official Journal"); notes that the Court will be able to bring forward the corresponding expenditure to the 2002 budget;

Section VI - Economic and Social Committee

33.  Welcomes the decision of the Economic and Social Committee to postpone the expenditure on the move to the Belliard complex and on vacating the Ravenstein building from 2003 to the 2004 budget; notes that this measure, involving EUR 5.42 million, reduces pressure on the heading; notes, however, that the expenditure is unavoidable and will have to be covered in the 2004 budget;

34.  Has decided on the following measures;

Section VII - Committee of the Regions

35.  Welcomes the decision of the Committee of the Regions, together with the Economic and Social Committee, to postpone the expenditure on the move to the Belliard complex to the 2004 budget, which, involving EUR 2.59 million, reduces pressure on the 2003 budget; notes in this instance, too, that the expenditure will have to be covered in the 2004 budget;

36.  Has decided on the following measures:

Section VIII (A) - European Ombudsman

37.  Points out that the Ombudsman's budget is too small to make a contribution to the frontloading operation or to be able to bring forward expenditure to offset the cost of the following measures and has therefore decided to enter appropriations for them:

Section VIII (B) - European Data Protection Officer

38.  Notes that the European Data Protection Officer has not been appointed and that this office is not operational yet; has agreed, therefore, to transfer the appropriations entered in the 2002 budget in the frontloading operation; has decided accordingly not to enter any appropriations in the 2003 budget for the time being;

o
o   o

39.  Instructs its President to forward this resolution, together with the amendments, to the Council, the Commission and the other institutions and bodies concerned.

(1) OJ L 293, 12.11.1994, p. 9. (2) OJ C 172, 18.6.1999, p. 1. (3) OJ L 248, 16.9.2002. (4) P5_TA(2002)0097. (5) P5_TA(2002)0225.

European Parliament legislative resolution on the Council common position with a view to adopting a European Parliament and Council regulation on rail transport statistics (8652/2/2002 – C5&nbhy;0311/2002 – 2001/0048(COD))

P5_TA(2002)0511 A5-0337/2002

(Codecision procedure: second reading)

The European Parliament,

–   having regard to the Council common position (8652/2/2002 – C5&nbhy;0311/2002),

–   having regard to its position at first reading(1) on the Commission proposal to Parliament and the Council (COM(2000) 798(2)),

–   having regard to Article 251(2) of the EC Treaty,

–   having regard to Rule 78 of its Rules of Procedure,

–   having regard to the recommendation for second reading of the Committee on Regional Policy, Transport and Tourism (A5&nbhy;0337/2002),

1.  Approves the common position;

2.  Notes that the act is adopted in accordance with the common position;

3.  Instructs its President to sign the act with the President of the Council pursuant to Article 254(1) of the EC Treaty;

4.  Instructs its Secretary-General duly to sign the act and, in agreement with the Secretary-General of the Council, to have it published in the Official Journal of the European Communities;

5.  Instructs its President to forward its position to the Council and Commission.

(1) OJ C 72 E, 21.3.2002, p. 58. (2) OJ C 180 E, 26.6.2001, p. 94.

European Parliament legislative resolution on the common position adopted by the Council with a view to adopting a European Parliament and Council Decision on adopting a Community programme to improve the operation of taxation systems in the internal market (Fiscalis programme 2003-2007) (10612/2/2002 – C5&nbhy;0383/2002 – 2002/0015(COD))

P5_TA(2002)0512 A5-0320/2002

(Codecision procedure: second reading)

The European Parliament,

–   having regard to the Council common position (10612/2/2002 – C5&nbhy;0383/2002)(1),

–   having regard to its position at first reading(2) on the Commission proposal to Parliament and the Council (COM(2002) 10(3)),

–   having regard to Article 251(2) of the EC Treaty,

–   having regard to Rule 78 of its Rules of Procedure,

–   having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs (A5&nbhy;0320/2002),

1.  Approves the common position;

2.  Notes that the act is adopted in accordance with the common position;

3.  Instructs its President to sign the act with the President of the Council pursuant to Article 254(1) of the EC Treaty;

4.  Instructs its Secretary-General duly to sign the act and, in agreement with the Secretary-General of the Council, to have it published in the Official Journal of the European Communities;

5.  Instructs its President to forward its position to the Council and Commission.

(1) OJ C 228 E, 25.9.2002, p. 34. (2) P5_TA(2002)0310. (3) OJ C 103 E, 30.4.2002, p. 361.

European Parliament legislative resolution on the Council common position with a view to adopting a European Parliament and Council directive on insider dealing and market manipulation (market abuse) (9359/6/2002 – C5&nbhy;0384/2002 – 2001/0118(COD))

P5_TA(2002)0513 A5-0343/2002

(Codecision procedure: second reading)

The European Parliament,

–   having regard to the Council common position (9359/6/2002 – C5&nbhy;0384/2002)(1),

–   having regard to its position at first reading(2) on the Commission proposal to Parliament and the Council (COM(2001) 281(3)),

–   having regard to Article 251(2) of the EC Treaty,

–   having regard to Rule 80 of its Rules of Procedure,

–   having regard to the recommendation for second reading of the Committee on Economic and Monetary Affairs (A5-0343/2002),

1.  Amends the common position as follows;

2.  Instructs its President to forward its position to the Council and Commission.

Position of the European Parliament adopted at second reading on 24 October 2002 with a view to the adoption of European Parliament and Council Directive 2002/…/EC on insider dealing and market manipulation (market abuse)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 95 thereof,

Having regard to the proposal from the Commission(4),

Having regard to the Opinion of the Economic and Social Committee(5),

Having regard to the opinion of the European Central Bank(6),

Acting in accordance with the procedure laid down in Article 251(7),

Whereas:

(1)  A genuine Single Market for financial services is crucial for economic growth and job creation in the Community.

(2)  An integrated and efficient financial market requires market integrity. The smooth functioning of securities markets and public confidence in markets are prerequisites for economic growth and wealth. Market abuse harms the integrity of financial markets and public confidence in securities and derivatives.

(3)  The Commission Communication of 11 May 1999 entitled "Implementing the framework for financial markets: action plan" identifies a series of actions that are needed in order to complete the single market for financial services. The Lisbon European Council of April 2000 called for the implementation of that action plan by 2005. The action plan stresses the need to draw up a Directive against market manipulation.

(4)  At its meeting on 17 July 2000, the Council set up the Committee of Wise Men on the Regulation of European Securities Markets. In its final report, the Committee of Wise Men proposed the introduction of new legislative techniques based on a four&nbhy;level approach, namely framework principles, implementing measures, cooperation and enforcement. Level 1, the Directive, should confine itself to broad general "framework" principles while Level 2 should contain technical implementing measures to be adopted by the Commission with the assistance of a committee.

(5)  The Resolution adopted by the Stockholm European Council of March 2001 endorsed the final report of the Committee of Wise Men and the proposed four&nbhy;level approach to make the regulatory process for Community securities legislation more efficient and transparent.

(6)  The Resolution of the European Parliament of 5 February 2002 on the implementation of financial services legislation also endorsed the Committee of Wise Men's report, on the basis of the solemn declaration made before Parliament the same day by the Commission and the letter of 2 October 2001 addressed by the Internal Market Commissioner to the chairman of Parliament's Committee on Economic and Monetary Affairs with regard to the safeguards for the European Parliament's role in this process.

(7)  The measures necessary for the implementation of this Directive should be adopted in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission(8).

(8)  According to the Stockholm European Council, Level 2 implementing measures should be used more frequently to ensure that technical provisions can be kept up to date with market and supervisory developments, and deadlines should be set for all stages of Level 2 work.

(9)  The European Parliament should be given a period of three months from the first transmission of draft implementing measures to allow it to examine them and to give its opinion. However, in urgent and duly justified cases, this period may be shortened. If, within that period, a resolution is passed by the European Parliament, the Commission should re&nbhy;examine the draft measures.

(10)  New financial and technical developments enhance the incentives, means and opportunities for market abuse: through new products, new technologies, increasing cross-border activities and the Internet.

(11)  The existing Community legal framework to protect market integrity is incomplete. Legal requirements vary from one Member State to another, leaving economic actors often uncertain over concepts, definitions and enforcement. In some Member States there is no legislation addressing the issues of price manipulation and the dissemination of misleading information.

(12)  Market abuse consists of insider dealing and market manipulation. The objective of legislation against insider dealing is the same as that of legislation against market manipulation: to ensure the integrity of Community financial markets and to enhance investor confidence in those markets. It is therefore advisable to adopt combined rules to combat both insider dealing and market manipulation. A single Directive will ensure throughout the Community the same framework for allocation of responsibilities, enforcement and cooperation.

(13)  Given the changes in financial markets and in Community legislation since the adoption of Council Directive 89/592/EEC of 13 November 1989 coordinating regulations on insider dealing (9), that Directive should now be replaced, to ensure consistency with legislation against market manipulation. A new Directive is also needed to avoid loopholes in Community legislation which could be used for wrongful conduct and which would undermine public confidence and therefore prejudice the smooth functioning of the markets.

(14)  This Directive meets the concerns expressed by the Member States following the terrorist attacks on 11 September 2001 as regards the fight against financing terrorist activities.

(15)  Insider dealing and market manipulation prevent full and proper market transparency, which is a prerequisite for trading for all economic actors in integrated financial markets.

(16)  Inside information is any information of a precise nature which has not been made public, relating, directly or indirectly, to one or more issuers of financial instruments or to one or more financial instruments. Information which could have a significant effect on the evolution and forming of the prices of a regulated market as such could be considered as information which indirectly relates to one or more issuers of financial instruments or to one or more related derivative financial instruments.

(17)  As regards insider dealing, account should be taken of cases where inside information originates not from a profession or function but from criminal activities, the preparation or execution of which could have a significant effect on the prices of one or more financial instruments or on price formation in the regulated market as such.

(18)  Use of inside information can consist in the acquisition or disposal of financial instruments by a person who knows, or ought to have known, that the information possessed is inside information. In this respect, the competent authorities should consider what a normal and reasonable person would know or should have known in the circumstances. Moreover, the mere fact that market-makers, bodies authorised to act as counterparties, or persons authorised to execute orders on behalf of third parties with inside information confine themselves, in the first two cases, to pursuing their legitimate business of buying or selling financial instruments or, in the last case, to carrying out an order dutifully, should not in itself be deemed to constitute use of such inside information.

(19)  Member States should tackle the practice known as "front running", including "front running" in commodity derivatives, where it constitutes market abuse under the definitions contained in this Directive.

(20)  A person who enters into transactions or issues orders to trade which are constitutive of market manipulation may be able to establish that his reasons for entering into such transactions or issuing orders to trade were legitimate and that the transactions and orders to trade were in conformity with accepted practice on the regulated market concerned. A sanction could still be imposed if the competent authority established that there was another, illegitimate, reason behind these transactions or orders to trade.

(21)  The competent authority may issue guidance on matters covered by this Directive, e.g. definition of inside information in relation to derivatives on commodities or implementation of the definition of accepted market practices relating to the definition of market manipulation. This guidance should be in conformity with the provisions of the Directive and the implementing measures adopted in accordance with the comitology procedure.

(22)  Member States should be able to choose the most appropriate way to regulate persons producing or disseminating research concerning financial instruments or issuers of financial instruments or persons producing or disseminating other information recommending or suggesting investment strategy, including appropriate mechanisms for self-regulation, which should be notified to the Commission.

(23)  Posting of inside information by issuers on their internet sites should be in accordance with the rules on transfer of personal data to third countries as laid down in Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the movement of such data(10).

(24)  Prompt and fair disclosure of information to the public enhances market integrity, whereas selective disclosure by issuers can lead to a loss of investor confidence in the integrity of financial markets. Professional economic actors should contribute to market integrity by various means. Such measures could include, for instance, the creation of "grey lists", the application of "window trading" to sensitive categories of personnel, the application of internal codes of conduct and the establishment of "Chinese walls". Such preventive measures may contribute to combating market abuse only if they are enforced with determination and are dutifully controlled. Adequate enforcement control would imply for instance the designation of compliance officers within the bodies concerned and periodic checks conducted by independent auditors.

(25)  Modern communication methods make it possible for financial market professionals and private investors to have more equal access to financial information, but also increase the risk of the spread of false or misleading information.

(26)  Greater transparency of transactions conducted by persons discharging managerial responsibilities within issuers and, where applicable, persons closely associated with them, constitutes a preventive measure against market abuse. The publication of those transactions on at least an individual basis can also be a highly valuable source of information to investors.

(27)  Market operators should contribute to the prevention of market abuse and adopt structural provisions aimed at preventing and detecting market manipulation practices. Such provisions may include requirements concerning transparency of transactions concluded, total disclosure of price-regularisation agreements, a fair system of order pairing, introduction of an effective atypical-order detection scheme, sufficiently robust financial instrument reference price-fixing schemes and clarity of rules on the suspension of transactions.

(28)  This Directive should be interpreted, and implemented by Member States, in a manner consistent with the requirements for effective regulation in order to protect the interests of holders of transferable securities carrying voting rights in a company (or which may carry such rights as a consequence of the exercise of rights or conversion) when the company is subject to a public take-over bid or other proposed change of control. In particular, this Directive does not in any way prevent a Member State from putting or having in place such measures as it sees fit for these purposes.

(29)  Having access to inside information relating to another company and using it in the context of a public take-over bid for the purpose of gaining control of that company or proposing a merger with that company should not in itself be deemed to constitute insider dealing.

(30)  Since the acquisition or disposal of financial instruments necessarily involves a prior decision to acquire or dispose taken by the person who undertakes one or other of these operations, the carrying out of this acquisition or disposal should not be deemed in itself to constitute the use of inside information.

(31)  Research and estimates developed from publicly available data should not be regarded as inside information and, therefore, any transaction carried out on the basis of such research or estimates should not be deemed in itself to constitute insider dealing within the meaning of this Directive.

(32)  Member States and the European System of Central Banks, national central banks or any other officially designated body, or any person acting on their behalf, should not be restricted in carrying out monetary, exchange-rate or public debt management policy.

(33)  Stabilisation of financial instruments or trading in own shares in buy&nbhy;back programmes can be legitimate, in certain circumstances, for economic reasons and should not, therefore, in themselves be regarded as market abuse. Common standards should be developed to provide practical guidance.

(34)  The widening scope of financial markets, the rapid change and the range of new products and developments require a wide application of this Directive to financial instruments and techniques involved, in order to guarantee the integrity of Community financial markets.

(35)  Establishing a level playing field in Community financial markets requires wide geographical application of the provisions covered by this Directive. As regards derivative instruments not admitted to trading but falling within the scope of this Directive, each Member State should be competent to sanction actions carried out on its territory or abroad which concern underlying financial instruments admitted to trading on a regulated market situated or operating within its territory or for which a request for admission to trading on such a regulated market has been made. Each Member State should also be competent to sanction actions carried out on its territory which concern underlying financial instruments admitted to trading on a regulated market in a Member State or for which a request for admission to trading on such a market has been made.

(36)  A variety of competent authorities in Member States, having different responsibilities, may create confusion among economic actors. A single competent authority should be designated in each Member State to assume at least final responsibility for supervising compliance with the provisions adopted pursuant to this Directive, as well as international collaboration. Such an authority should be of an administrative nature so as to guarantee that it is independent from economic actors and to avoid conflicts of interest. In accordance with national law, Member States should ensure appropriate financing of the competent authority. That authority should have adequate arrangements for consultation concerning possible changes in national legislation such as a consultative committee composed of representatives of issuers, financial services providers and consumers, so as to be fully informed of their views and concerns.

(37)  A common minimum set of effective tools and powers for the competent authority of each Member State will guarantee supervisory effectiveness. Market undertakings and all economic actors should also contribute at their level to market integrity. In this sense, the designation of a single competent authority for market abuse does not exclude collaboration links or delegation under the responsibility of the competent authority, between that authority and market undertakings with a view to guaranteeing efficient supervision of compliance with the provisions adopted pursuant to this Directive.

(38)  In order to ensure that a Community framework against market abuse is sufficient, any infringement of the prohibitions or requirements laid down pursuant to this Directive will have to be promptly detected and sanctioned. To this end, sanctions should be sufficiently dissuasive and proportionate to the gravity of the infringement and to the gains realised and should be consistently applied.

(39)  Member States should remain alert, in determining the administrative measures and sanctions, to the need to ensure a degree of uniformity of regulation from one Member State to another.

(40)  Increasing cross&nbhy;border activities requires improved cooperation and a comprehensive set of provisions for the exchange of information between national competent authorities. The organisation of supervision and of investigatory powers in each Member State should not hinder cooperation between the competent national authorities.

(41)  Since the objective of the proposed action, namely to prevent market abuse in the form of insider dealing and market manipulation, cannot be sufficiently achieved by the Member States and can therefore, by reason of the scale and effects of the measures, be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective.

(42)  Technical guidance and implementing measures for the rules laid down in this Directive may from time to time be necessary to take account of new developments on financial markets. The Commission should accordingly be empowered to adopt implementing measures, provided that these do not modify the essential elements of this Directive and the Commission acts according to the principles set out in this Directive, after consulting the European Securities Committee established by Commission Decision 2001/528/EC(11).

(43)  In exercising its implementing powers in accordance with this Directive, the Commission should respect the following principles:

(44)  This Directive respects the fundamental rights and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union and in particular by Article 11 thereof and Article 10 of the European Convention for the Protection of Human Rights and Fundamental Freedoms. In this regard, this Directive does not in any way prevent Member States from applying their constitutional rules relating to freedom of the press and freedom of expression in the media,

HAVE ADOPTED THIS DIRECTIVE:

Article 1

The definitions of market manipulation shall be adapted so as to ensure that new patterns of activity that in practice constitute market manipulation can be included.

In order to take account of developments on financial markets and to ensure uniform application of this Directive in the Community, the Commission, acting in accordance with the procedure laid down in Article 17(2), shall adopt implementing measures concerning points 1, 2 and 3 of this Article.

Article 2

1.  Member States shall prohibit any person referred to in the second subparagraph who possesses inside information from using that information by acquiring or disposing of, or by trying to acquire or dispose of, for his own account or for the account of a third party, either directly or indirectly, financial instruments to which that information relates.

2.  Where the person referred to in paragraph 1 is a legal person, the prohibition laid down in that paragraph shall also apply to the natural persons who take part in the decision to carry out the transaction for the account of the legal person concerned.

3.  This Article shall not apply to transactions conducted in the discharge of an obligation that has become due to acquire or dispose of financial instruments where that obligation results from an agreement concluded before the person concerned possessed inside information.

Article 3

Article 4

Member States shall ensure that Articles 2 and 3 also apply to any person other than those persons referred to in those Articles who possesses inside information while that person knows, or ought to have known, that it is inside information.

Article 5

Member States shall prohibit any person from engaging in market manipulation.

Article 6

1.  Member States shall ensure that issuers of financial instruments inform the public as soon as possible of inside information which directly concerns the said issuers.

Without prejudice to any measures taken to comply with the provisions of the first subparagraph, Member States shall ensure that issuers, for an appropriate period, post on their internet sites all inside information that they are required to disclose publicly.

2.  An issuer may under his own responsibility delay the public disclosure of inside information, as referred to in paragraph 1, such as not to prejudice his legitimate interests provided that such omission would not be likely to mislead the public and provided that the issuer is able to ensure the confidentiality of that information. Member States may require that an issuer shall without delay inform the competent authority of the decision to delay the public disclosure of inside information.

3.  Member States shall require that, whenever an issuer, or a person acting on his behalf or for his account, discloses any inside information to any third party in the normal exercise of his employment, profession or duties, as referred to in Article 3(a), he must make complete and effective public disclosure of that information, simultaneously in the case of an intentional disclosure and promptly in the case of a non-intentional disclosure.

The provisions of the first subparagraph shall not apply if the person receiving the information owes a duty of confidentiality, regardless of whether such duty is based on a law, on regulations, on articles of association or on a contract.

Member States shall require that issuers, or persons acting on their behalf or for their account, draw up a list of those persons working for them, under a contract of employment or otherwise, who have access to inside information. Issuers and persons acting on their behalf or for their account shall regularly update this list and transmit it to the competent authority whenever the latter requests it.

4.  Persons discharging managerial responsibilities within an issuer of financial instruments and, where applicable, persons closely associated with them, shall, at least, notify to the competent authority the existence of transactions conducted on their own account relating to shares of the said issuer, or to derivatives or other financial instruments linked to them. Member States shall ensure that public access to information concerning such transactions, on at least an individual basis, is readily available as soon as possible.

5.  Member States shall ensure that there is appropriate regulation in place to ensure that persons who produce or disseminate research concerning financial instruments or issuers of financial instruments and persons who produce or disseminate other information recommending or suggesting investment strategy, intended for distribution channels or for the public, take reasonable care to ensure that such information is fairly presented and disclose their interests or indicate conflicts of interest concerning the financial instruments to which that information relates. Details of such regulation shall be notified to the Commission.

6.  Member States shall ensure that market operators adopt structural provisions aimed at preventing and detecting market manipulation practices.

7.  With a view to ensuring compliance with paragraphs 1 to 4, the competent authority may take all necessary measures to ensure that the public is correctly informed.

8.  Public institutions disseminating statistics liable to have a significant effect on financial markets shall disseminate them in a fair and transparent way.

9.  Member States shall require that any person professionally arranging transactions in financial instruments who reasonably suspects that a transaction might constitute insider dealing or market manipulation shall notify the competent authority without delay.

10.  In order to take account of technical developments on financial markets and to ensure uniform application of this Directive, the Commission shall adopt, in accordance with the procedure referred to in Article 17(2), implementing measures concerning:

Article 7

This Directive shall not apply to transactions carried out in pursuit of monetary, exchange-rate or public debt-management policy by a Member State, by the European System of Central Banks, by a national central bank or by any other officially designated body, or by any person acting on their behalf. Member States may extend this exemption to their federated States or similar local authorities in respect of the management of their public debt.

Article 8

The prohibitions provided for in this Directive shall not apply to trading in own shares in "buy&nbhy;back" programmes or to the stabilisation of a financial instrument provided such trading is carried out in accordance with implementing measures adopted in accordance with the procedure laid down in Article 17(2).

Article 9

This Directive shall apply to any financial instrument admitted to trading on a regulated market in at least one Member State, or for which a request for admission to trading on such a market has been made, irrespective of whether or not the transaction itself actually takes place on that market.

Articles 2, 3 and 4 shall also apply to any financial instrument not admitted to trading on a regulated market in a Member State, but whose value depends on a financial instrument as referred to in the first paragraph of this Article.

Article 6(1) to (3) shall not apply to issuers who have not requested or approved admission of their financial instruments to trading on a regulated market in a Member State.

Article 10

Article 11

Without prejudice to the competences of the judicial authorities, each Member State shall designate a single administrative authority competent to ensure that the provisions adopted pursuant to this Directive are applied.

Member States shall establish effective consultative arrangements and procedures with market participants concerning possible changes in national legislation. These arrangements may include consultative committees within each competent authority, the membership of which should reflect as far as possible the diversity of market participants, be they issuers, providers of financial services or consumers.

Article 12

1.  The competent authority shall be given all supervisory and investigatory powers that are necessary for the exercise of its functions. It shall exercise such powers:

2.  Without prejudice to Article 6(7), the powers referred to in paragraph 1 of this Article shall be exercised in conformity with national law and shall include at least the right to:

3.  This Article shall be without prejudice to national legal provisions on professional secrecy.

Article 13

The obligation of professional secrecy shall apply to all persons who work or who have worked for the competent authority or for any authority or market undertaking to whom the competent authority has delegated its powers, including auditors and experts instructed by the competent authority. Information covered by professional secrecy may not be disclosed to any other person or authority except by virtue of provisions laid down by law.

Article 14

1.  Without prejudice to the right of Member States to impose criminal sanctions, Member States shall ensure, in conformity with their national law, that the appropriate administrative measures can be taken or administrative sanctions be imposed against the persons responsible where the provisions adopted in the implementation of this Directive have not been complied with. Member States shall ensure that these measures are effective, proportionate and dissuasive.

2.  In accordance with the procedure laid down in Article 17(2), the Commission shall, for information, draw up a list of the administrative measures and sanctions referred to in paragraph 1.

3.  Member States shall determine the sanctions to be applied for failure to cooperate in an investigation covered by Article 12.

4.  Member States shall provide that the competent authority may disclose to the public every measure or sanction that will be imposed for infringement of the provisions adopted in the implementation of this Directive, unless such disclosure would seriously jeopardise the financial markets or cause disproportionate damage to the parties involved.

Article 15

Member States shall ensure that an appeal may be brought before a court against the decisions taken by the competent authority.

Article 16

1.  Competent authorities shall cooperate with each other whenever necessary for the purpose of carrying out their duties, making use of their powers whether set out in this Directive or in national law. Competent authorities shall render assistance to competent authorities of other Member States. In particular, they shall exchange information and cooperate in investigation activities.

2.  Competent authorities shall, on request, immediately supply any information required for the purpose referred to in paragraph 1. Where necessary, the competent authorities receiving any such request shall immediately take the necessary measures in order to gather the required information. If the requested competent authority is not able to supply the required information immediately, it shall notify the requesting competent authority of the reasons. Information thus supplied shall be covered by the obligation of professional secrecy to which the persons employed or formerly employed by the competent authorities receiving the information are subject.

In any such case, they shall notify the requesting competent authority accordingly, providing as detailed information as possible on those proceedings or the judgment.

Without prejudice to Article 226 of the Treaty, a competent authority whose request for information is not acted upon within a reasonable time or whose request for information is rejected may bring that non-compliance to the attention of the Committee of European Securities Regulators, where discussion will take place in order to reach a rapid and effective solution.

Without prejudice to the obligations to which they are subject in judicial proceedings under criminal law, the competent authorities which receive information pursuant to paragraph 1 may use it only for the exercise of their functions within the scope of this Directive and in the context of administrative or judicial proceedings specifically related to the exercise of those functions. However, where the competent authority communicating information consents thereto, the authority receiving the information may use it for other purposes or forward it to other States' competent authorities.

3.  Where a competent authority is convinced that acts contrary to the provisions of this Directive are being, or have been, carried out on the territory of another Member State or that acts are affecting financial instruments traded on a regulated market situated in another Member State, it shall give notice of that fact in as specific a manner as possible to the competent authority of the other Member State. The competent authority of the other Member State shall take appropriate action. It shall inform the notifying competent authority of the outcome and, so far as possible, of significant interim developments. This paragraph shall not prejudice the competences of the competent authority that has forwarded the information. The competent authorities of the various Member States that are competent for the purposes of Article 10 shall consult each other on the proposed follow&nbhy;up to their action.

4.  A competent authority of one Member State may request that an investigation be carried out by the competent authority of another Member State, on the latter's territory.

It may further request that members of its own personnel be allowed to accompany the personnel of the competent authority of that other Member State during the course of the investigation.

The investigation shall, however, be subject throughout to the overall control of the Member State on whose territory it is conducted.

The competent authorities may refuse to act on a request for an investigation to be conducted as provided for in the first subparagraph, or on a request for its personnel to be accompanied by personnel of the competent authority of another Member State as provided for in the second subparagraph, where such an investigation might adversely affect the sovereignty, security or public policy of the State addressed, or where judicial proceedings have already been initiated in respect of the same actions and against the same persons before the authorities of the State addressed or where a final judgment has already been delivered in relation to such persons for the same actions in the State addressed. In such case, they shall notify the requesting competent authority accordingly, providing information, as detailed as possible, on those proceedings or judgment.

Without prejudice to the provisions of Article 226 of the Treaty, a competent authority whose application to open an inquiry or whose request for authorisation for its officials to accompany those of the other Member State's competent authority is not acted upon within a reasonable time or is rejected may bring that non-compliance to the attention of the Committee of European Securities Regulators, where discussion will take place in order to reach a rapid and effective solution.

5.  In accordance with the procedure laid down in Article 17(2), the Commission shall adopt implementing measures on the procedures for exchange of information and cross-border investigations as referred to in this Article.

Article 17

1.  The Commission shall be assisted by the European Securities Committee instituted by Decision 2001/528/EC (hereinafter referred to as the "Committee").

2.  Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof, provided that the implementing measures adopted according to this procedure do not modify the essential provisions of this Directive.

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three months.

3.  The Committee shall adopt its rules of procedure.

4.  Without prejudice to the implementing measures already adopted, on the expiry of a four–year period following the entry into force of this Directive, the application of its provisions requiring the adoption of technical rules and decisions in accordance with paragraph 2 shall be suspended. On a proposal from the Commission, the European Parliament and the Council may renew the provisions concerned in accordance with the procedure laid down in Article 251 of the Treaty and, to that end, they shall review them prior to the expiry of the period referred to above.

Article 18

Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive not later than [...] (13). They shall forthwith inform the Commission thereof.

When Member States adopt those measures, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

Article 19

Article 11 shall not prejudge the possibility for a Member State to make separate legal and administrative arrangements for overseas European territories for whose external relations that Member State is responsible.

Article 20

Directive 89/592/EEC and Articles 68(1) and 81(1) of Directive 2001/34/EC of the European Parliament and of the Council of 28 May 2001 on the admission of securities to official stock exchange listing and on information to be published on those securities (14) shall be repealed with effect from the date of entry into force of this Directive.

Article 21

This Directive shall enter into force on the day of its publication in the Official Journal of the European Communities.

Article 22

This Directive is addressed to the Member States.

Done at ,

For the Parliament For the Council

The President The President

(1) OJ C 228 E, 25.9.2002, p. 19. (2) P5_TA(2002)0113. (3) OJ C 240 E, 28.8.2001, p. 265. (4) OJ C 240 E, 28.8.2001, p. 265. (5) OJ C 80, 3.4.2002, p. 61. (6) OJ C 24, 26.1.2002, p. 8. (7) Position of the European Parliament of 14 March 2002, Council Common Position of 19 July 2002 (OJ C 228 E, 25.9.2002, p. 19) and Position of the European Parliament of 24 October 2002. (8) OJ L 184, 17.7.1999, p. 23. (9) OJ L 334, 18.11.1989, p. 30. (10) OJ L 281, 23.11.1995, p. 31. (11) OJ L 191, 13.7.2001, p. 45. (12) OJ L 141, 11.6.1993, p. 27. Directive as last amended by European Parliament and Council Directive 2000/64/EC (OJ L 290, 17.11.2000, p. 27). (13) * Eighteen months after the entry into force of this Directive. (14) OJ L 184, 6.7.2001, p. 1.

European Parliament legislative resolution on the proposal for a European Parliament and Council regulation establishing common rules on compensation and assistance to air passengers in the event of denied boarding and of cancellation or long delay of flights (COM(2001) 784 – C5&nbhy;0700/2001 – 2001/0305(COD))

P5_TA(2002)0514 A5-0298/2002

(Codecision procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2001) 784(1)),

–   having regard to Article 251(2) and Article 80(2) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C5&nbhy;0700/2001),

–   having regard to Rule 67 of its Rules of Procedure,

–   having regard to the report of the Committee on Regional Policy, Transport and Tourism and the opinion of the Committee on the Environment, Public Health and Consumer Policy (A5&nbhy;0298/2002),

1.  Approves the Commission proposal as amended;

2.  Asks to be consulted again should the Commission intend to amend the proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council and Commission.

Position of the European Parliament adopted at first reading on 24 October 2002with a view to the adoption of European Parliament and Council Regulation (EC) No …./2002 establishing common rules on compensation and assistance to air passengers in the event of denied boarding and of cancellation or long delay of flights

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 80 (2) thereof,

Having regard to the proposal from the Commission(2),

Having regard to the opinion of the Economic and Social Committee(3),

Having regard to the opinion of the Committee of the Regions(4),

Acting in accordance with the procedure referred to in Article 251 of the Treaty(5),

Whereas:

(1)  Action by the Community in the field of air transport should aim, among other things, at ensuring a high level of protection for passengers; moreover full account should be taken of the requirements of consumer protection.

(2)  Denied boarding and cancellation or long delay of flights cause serious trouble and inconvenience to passengers.

(3)  The Community should set common minimum standards of protection both to strengthen the rights of passengers and to ensure that air carriers operate under harmonised conditions in a liberalised market.

(4)  While Council Regulation (EEC) No 295/91 of 4 February 1991 establishing common rules for a denied boarding compensation system in scheduled air transport(6) created basic protection for passengers, the number of passengers denied boarding against their will remains unacceptably high. This can best be reduced by requiring air carriers to call for volunteers to surrender their reservations, in exchange for benefits, and by deterring carriers from denying passengers boarding against their will through a requirement to pay compensation at a dissuasive level.

(5)  Passengers denied boarding against their will should be able either to cancel their journeys, with reimbursement of their tickets, or to continue them under satisfactory conditions, and should be adequately cared for while awaiting a later flight.

(6)  Volunteers should also be able to cancel their journeys or continue them under satisfactory conditions, since they face difficulties of travel similar to those experienced by passengers denied boarding.

(7)  The trouble and inconvenience to passengers caused by cancellation of flights should also be reduced, except when cancellation occurs due to force majeure and is therefore beyond the responsibility of an air carrier or that of its subcontracting agent. This can best be achieved by requiring air carriers, before the scheduled time of departure, to contact the passengers affected and agree with them the conditions under which they volunteer to surrender their reservations.

(8)  Passengers whose flights are cancelled and who do not volunteer to surrender their reservations should be able either to obtain reimbursement of their tickets or to continue their journeys under satisfactory conditions, and should be adequately cared for while awaiting a later flight.

(9)  Similarly, passengers whose flights are delayed for a specified time should be able to cancel their journeys or to continue them under satisfactory conditions.

(10)  Since the distinction between scheduled and non-scheduled air services is weakening, protection should apply to passengers not only on scheduled but also on non-scheduled flights, including those contained in holidays and tours.

(11)  Package travel customers enjoy already a high level of protection through Council Directive 90/314/EEC of 13 June 1990 on package holiday and package tours(7), which holds tour operators responsible for the proper performance of the package, including air transport. The provisions of this Regulation should therefore not apply to package travel customers.

(12)  Since paperless tickets are becoming common, this Regulation should cover all forms of tickets to ensure comprehensive protection of passengers.

(13)  Passengers should be fully informed of their rights in the event of denied boarding and of cancellation or long delay of flights, so that they can effectively exercise their rights. Where a flight has been overbooked, the available places shall be allocated under a transparent procedure according to uniform criteria.

(14)  Passengers travelling on all modes of transport should be treated equally and distortion of competition should be avoided among different modes of transport. Similar rules should be enacted for rail, ferry, bus and coach transportation.

(15)  The Member States should lay down rules on penalties applicable to infringements of the provisions of this Regulation and ensure that they are implemented. Those penalties must be effective, proportionate and dissuasive.

(16)  Regulation (EEC) No 295/91 should accordingly be repealed,

HAVE ADOPTED THIS REGULATION:

Article 1

Subject matter

Article 2

Definitions

Article 3

Scope

1.  This Regulation applies to passengers departing from an airport located in the territory of a Member State to which the Treaty applies, and to passengers having a contract with a Community carrier or a tour operator departing from an airport located in a third country to one situated in the territory of a Member State to which the Treaty applies, unless they benefit from compensation and assistance in that third country, when they:

2.  This Regulation does not apply to passengers travelling free of charge or at a reduced fare not available directly or indirectly to the public or to air passengers on package tours. However, passengers having tickets issued under a Frequent Flyer Programme or other commercial programme by an air carrier or tour operator are covered by this Regulation.

3.  This Regulation applies to any air carrier or tour operator with which a passenger referred to in paragraph 1 and the second sentence of paragraph 2 has a contract. The responsibilities and obligations set out therein also apply, however, to the operating air carrier, both in the case of code sharing and where it is logistically impossible for the tour operator to meet the obligations laid down. The tour operator, or in the case of code sharing, the marketing carrier shall have full rights of recourse against the operating carrier whenever denied boarding, cancellation or delay to the flight are the latter's responsibility.

4.  The provisions of this Regulation shall not affect the rights of passengers under Directive 90/314/EEC.

Article 4

Rules laid down by the air carrier or tour operator

An air carrier or tour operator shall, in accordance with this Regulation, lay down the rules which it will follow when passengers are denied boarding, including those on priorities for passenger embarkation, and shall make them available to the public. They shall form part of the contract or conditions of carriage of the carrier or tour operator.

Article 5

Obligations towards passengers in case of denied boarding

1.  When a body with responsibility as laid down in Article 3(3) reasonably expects to deny boarding on a flight, it shall first identify any passenger still awaiting check-in for the flight concerned at the time check-in closes and then call for volunteers to surrender their confirmed reservations in exchange for benefits.

2.  Volunteers shall be assisted in accordance with Article 8, such assistance being additional to the benefits mentioned in paragraph 1. If an insufficient number of volunteers comes forward to allow the remaining passengers with confirmed reservations to be accommodated on the flight, the air carrier or tour operator responsible, as laid down in Article 3(3), may then deny boarding to passengers against their will, in accordance with the rules laid down by the air carrier or tour operator pursuant to Article 4.

3.  If boarding is denied to passengers the body with responsibility as laid down in Article 3(3) shall immediately compensate volunteers and non-volunteers in accordance with Article 7 and assist them in accordance with Articles 8 and 9.

4.  If an air carrier or tour operator places a passenger in a class higher than that for which the ticket was purchased, it may not request any supplement or payment. If an air carrier or tour operator places a passenger in a class lower than that for which the ticket was purchased, it shall reimburse the difference.

5.  Where a flight has been overbooked, the available places shall be allocated under a transparent procedure according to uniform criteria.

Article 6

Boarding of disabled and other passengers with special needs

An air carrier or tour operator shall not deny boarding to a disabled passenger and any accompanying person or certified assistance dog, to a passenger whose mobility is otherwise reduced, to an unaccompanied child, or to passengers travelling with small children.

Article 7

Right to compensation

1.  In the case of denied boarding passengers shall receive compensation amounting to:

In determining the relevant distance, the basis shall be the last destination at which the denial of boarding will delay the passenger's arrival after the scheduled time.

Every three years the Commission may adjust the amount of compensation in line with any rise in the cost of living.

2.  When passengers accept re-routing to their final destination on an alternative flight pursuant to Article 8, the arrival time of which does not exceed the scheduled arrival time of the flight originally booked by more than two hours for flights of less than 1 000 kilometres, by more than three hours for flights of between 1 000 and 3 500 kilometres, or by more than four hours for flights of over 3 500 kilometres, an air carrier or tour operator may reduce the compensation provided for in paragraph 1 by 50%. For distances over 1 000 kilometres, if the arrival time of the alternative flight does not exceed the scheduled arrival time by more than one hour, there will be no right to compensation.

3.  The compensation referred to in paragraph 1 shall be paid in cash or, with the signed agreement of the passenger, by bank orders, bank cheques, in travel vouchers and/or other services.

4.  The distances given in paragraphs 1 and 2 shall be measured by the great circle track method (great circle route).

Article 8

Right to assistance

1.  In the case of denied boarding passengers shall be offered the choice between:

The passengers shall also be offered free of charge a telephone call and/or telex or fax message and/or e-mail to the point of final destination and to the point of departure.

2.  When, in the case where a town, city or region is served by several airports, an air carrier or tour operator offers a passenger a flight to an alternative airport to that for which the booking was made, the carrier or tour operator shall bear the cost of travelling from that alternative airport either to that for which the booking was made or to another close-by destination, agreed with the passenger.

Article 9

Right to care while awaiting a later flight

c)   free transport or reimbursement of expenses for the journey from the airport to the hotel and back again.

Article 10

Cancellation

1.  In the case of cancellation of a flight, the following provisions apply except when the body with responsibility as laid down in Article 3(3) can prove that it was done solely because of force majeure and is therefore beyond its responsibility.

2.  When, less than 48 hours before the scheduled time of departure, the body with responsibility as laid down in Article 3(3) cancels or reasonably expects to cancel a flight, it shall make every effort to contact the passengers affected in order to explain to them any possible alternatives and to agree with them the conditions under which they accept to surrender their confirmed reservations. At the very least the passengers shall be offered a choice between:

3.  Those passengers with whom the body with responsibility as laid down in Article 3(3) does not reach an agreement in accordance with paragraph 2 of this Article and which present themselves for check-in in accordance with Article 3(1), shall be offered the compensation and assistance offered in the case of denied boarding, as specified in Articles 7, 8 and 9.

Article 11

Delay

1.  When the body with responsibility as laid down in Article 3(3) reasonably expects a flight to be delayed beyond its scheduled time of departure for one hour in the case of flights of less than 1 000 kilometres, for two hours in the case of flights of between 1000 and 3 500 kilometres or for four hours in the case of flights of over 3 500 kilometres, passengers shall be offered the assistance offered in the case of denied boarding as specified in Article 9, except in the case of force majeure .

In any event, that assistance shall be offered within the periods set out in the first subparagraph with respect to each distance bracket. This assistance shall be offered immediately to passengers with reduced mobility, as referred to in Article 2(m), and those accompanying them.

2.   Assistance may not apply in situations involving political unrest or long strikes in essential services or other circumstances beyond the air carrier's control. Moreover, assistance should only be provided where local conditions allow for such assistance to be delivered and under the condition that doing so would not further delay departure.

Article 12

Further compensation

1.  This Regulation shall apply without prejudice to a passenger's subsequent application to the courts having jurisdiction, with a view to further compensation.

2.  This provision does not apply to volunteers as defined in Article 2 (k) who have accepted compensation under the conditions set out in Article 5(1) and (2) and in accordance with Articles 7, 8 and 9.

Article 13

Compensation from a third party

1.  In cases where an air carrier or tour operator pays compensation or meets the other obligations incumbent on it under this Regulation, no provision of this Regulation may be interpreted as restricting its right to seek compensation from a third party in accordance with the law applicable.

2.  Member States shall ensure that any claim for compensation under the principle that the agency responsible should pay can be made and enforced against any third party, i.e. even State or other authorities with sovereign powers, by the air carrier or tour operator.

Article 14

Obligation to inform passengers of their rights

1.  The legal entity responsible for check-in of passengers shall ensure that a clearly legible notice containing the following text is displayed at the check-in area in a manner clearly visible to passengers: "If you are denied boarding or if your flight is cancelled or delayed for at least two hours, ask at the check-in counter or boarding gate for the text stating your rights, particularly with regard to compensation and assistance".

2.  An air carrier or tour operator denying boarding or cancelling a flight shall provide each passenger affected with a written notice setting out the rules for compensation and assistance in line with the provisions of this Regulation. It shall also provide each passenger affected by a delay of at least two hours with an equivalent notice. The contact details of the national competent authority as stipulated in Article 19 shall also be given to the passenger in written form.

Article 15

Ranking of user-friendliness

From 1 January 2004 a monthly ranking concerning the quality of services offered by airlines as regards user-friendliness and customer satisfaction shall be published on the basis of the criteria of frequency of denied boarding, loss of luggage, delays, passengers' complaints and an assessment of the quality of the information and services.

Article 16

Exclusion of waiver

1.  Obligations vis-à-vis passengers pursuant to this Regulation may not be limited or waived, notably by a derogation or restrictive clause in the contract of carriage.

2.  If, nevertheless, such a derogation or restrictive clause is applied in respect of a passenger, and the latter has accepted compensation which is inferior to that provided for in this Regulation, the passenger shall still be entitled to take the necessary legal action in the competent courts in order to obtain additional compensation.

Article 17

Penalties

Member States shall lay down the rules on penalties applicable to infringements of this Regulation and shall take all necessary measures to ensure that they are implemented. The penalties provided for must be effective, proportionate and dissuasive. The Member States shall notify those provisions to the Commission by 1 January 2004 at the latest and shall notify it without delay of any subsequent amendment affecting them.

Article 18

Enforcement

Each Member State shall designate the body responsible for the enforcement of this Regulation and shall make this public. The body shall be responsible for enforcement of the Regulation as regards airports situated on the territory of the Member State and flights from a third country to an airport situated on that territory. It shall be responsible, among other things, for the investigation of complaints concerning compliance with this Regulation and for taking the necessary measures to ensure that the rights of passengers are respected.

Article 19

Complaints

Without prejudice to Article 12, a passenger may complain to any body designated by a Member State about a possible infringement of this Regulation at any airport located in the territory of a Member State [to which the Treaty applies?] or concerning any flight from a third country to an airport located in that territory. If not responsible, the body shall communicate the complaint to the body responsible for enforcement in the case in question. The body responsible shall investigate the complaint and take any necessary measures to ensure that the rights of the passenger are respected.

Article 20

Report

Pursuant to Article 18 the Commission shall report to the European Parliament and the Council no later than five years after the entry into force of the Regulation on the overall operation and results of this Regulation, in particular the incidence of denied boarding and of cancellation of flights. The report shall be accompanied where necessary by legislative proposals.

Article 21

Repeal

Regulation (EEC) No 295/91 is repealed.

Article 22

Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States

Done at ,

For the European Parliament For the Council

The President The President

(1) OJ C 103 E, 30.4.2002, p. 225. (2) OJ C 103 E, 30.4.2002, p. 225. (3) OJ C …, …, p. … (4) OJ C …, …, p. … (5) Position of the European Parliament of 24 October 2002. (6) OJ L 36, 8.2.1991, p. 5. (7) OJ L 158, 23.6.1990, p. 59. (8) OJ L 240, 24.8.1992, p. 8.

European Parliament legislative resolution on the proposal for a European Parliament and Council decision amending Decision No 1254/96/EC laying down a series of guidelines for trans-European energy networks (COM(2001) 775 – C5&nbhy;0111/2002 – 2001/0311(COD))

P5_TA(2002)0515 A5-0324/2002

(Codecision procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2001) 775(1)),

–   having regard to Article 251(2) and Article 156 of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C5&nbhy;0111/2002),

–   having regard to Rule 67 of its Rules of Procedure,

–   having regard to the report of the Committee on Industry, External Trade, Research and Energy and the opinion of the Committee on Economic and Monetary Affairs (A5&nbhy;0324/2002),

1.  Approves the Commission proposal as amended;

2.  Asks to be consulted again should the Commission intend to amend the proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council and Commission.

Position of the European Parliament adopted at first reading on 24 October 2002 with a view to the adoption of European Parliament and Council Decision No .../2002/EC amending Decision No 1254/96/EC laying down a series of guidelines for trans&nbhy;European energy networks

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community and in particular the first paragraph of Article 156 thereof,

Having regard to the proposal from the Commission(2),

Having regard to the opinion of the Economic and Social Committee(3),

Having regard to the opinion of the Committee of the Regions(4),

Acting in accordance with the procedure laid down in Article 251 of the Treaty(5),

Whereas:

(1)  Since the adoption of European Parliament and Council Decision No 1254/96/EC of 5 June 1996 laying down a series of guidelines for trans-European energy networks(6), the need has arisen to incorporate new priorities, to highlight the projects which are particularly important, to update the list of projects, and to adapt the procedure used for identifying projects.

(2)  The new priorities stem from the creation of a more open and competitive internal energy market, as a result of the implementation of Directive 96/92/EC of the European Parliament and of the Council of 19 December 1996 concerning common rules for the internal market in electricity(7) and of Directive 98/30/EC of the European Parliament and the Council of 22 June 1998 concerning common rules for the internal market in natural gas(8). They follow the conclusions of the Stockholm European Council of March 2001 concerning the development of the infrastuctures needed for the operation of the energy market. A special effort should be undertaken to achieve the objective of making greater use of renewable energy sources as a contribution to furthering a sustainable development policy.

(3)  As a rule the construction and maintenance of energy infrastructure should be subject to market principles. This is also in line with the Commission proposals for the completion of the internal market in energy and the common rules on competition law which aim at the creation of a more open and competitive internal energy market.

(4)  The creation of a competitive and integrated internal energy market can be achieved much more cost-effectively by revising current competition policy legislation than it can by merely increasing infrastructure capacity, since competition is often hindered not by bottlenecks, but by a lack of contestability in the markets or by oligopolistic concentration.

(5)  Energy infrastructure should be constructed and maintained so as to enable the internal energy market to operate efficiently, without detracting from strategic and universal service criteria.

(6)   The priorities also stem from the growing importance of the trans&nbhy;European energy networks for diversifying the Community's gas supplies, incorporating the candidate countries' energy networks, and ensuring the coordinated operation of the electricity grids in Europe and the Mediterranean and Black Sea basins.

(7)  The need for an efficient integration of the candidate countries' energy networks will make it necessary for the Commission to present a proposal amending Decision No 1254/96/EC in due time before the accession of the first new Member States.

(8)  Among the projects relating to trans-European energy networks, it is necessary to highlight the priority projects, which are very important for the operation of the internal energy market or the security of energy supply. The development stage of priority projects on the energy networks should therefore also be able to qualify for higher financial aid without this leading to any increase in the Community funds set aside for energy networks in the 2003-2006 financial perspective. This aid is for priority projects on the energy networks carried out in individual undertakings, which are necessary in the interests of the European economy but unprofitable in business terms and which do not distort competition between undertakings.

(9)  It is necessary to adapt the procedure for identifying projects relating to trans-European energy networks in order to ensure the harmonious application of Council Regulation (EC) No 2236/95 of 18 September 1995 laying down general rules for the granting of Community financial aid in the field of trans-European networks. The Commission will submit a report to the European Parliament and the Council listing and describing the measures on the energy networks which are likely, in the event of an increase in Community financial aid from 10% to 20%, to lead to more rapid completion of the relevant priority projects(9).

(10)  The increase in Community financial aid from 10% to 20% refers only to the developing phase of priority projects(10). Community financial aid for the construction phase should remain very exceptional and should require a special justification.

(11)   The procedure for identifying projects relating to trans&nbhy;European energy networks should be adapted by means of action at two levels: a first level identifying a restricted number of thematically defined projects of common interest, and a second level describing projects in detail, referred to as specifications.

(12)  Since the project specifications determine the use of significant amounts of public funds, the legislator should, for reasons of supervision and transparency, exercise decision-making competence over the said specifications within the framework of the guidelines and criteria laid down in this Decision.

(13)   The provisions of Decision No 1254/96/EC concerning the committee procedure should be adopted to take account of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission(11).

(14)   The identification of projects of common interest, their specifications and priority projects should be without prejudice to the results of the environmental impact assessment of the projects and of the plans or programmes.

(15)   The time-limit within which the Commission has to draw up the periodical report on the implementation of the guidelines under Decision No 1254/96/EC should be extended since, in pursuance of Regulation (EC) No 2236/95, it submits an annual report which contains information on the progress of projects, and in particular that of priority projects.

(16)   Decision No 1254/96/EC should therefore be amended accordingly,

HAVE ADOPTED THIS DECISION:

Article 1

Decision No 1254/96/EC is amended as follows:

(1)  In Article 3, the first and second indents are replaced by the following:

(  2) Article 4 is replaced by the following:

Article 4

Priorities

(3)  Article 6 is amended as follows:

2.  The projects of common interest shall be as set out in Annex II.

3.  Any modification which changes the description of a project as it appears in Annex II or the indicative specifications contained in Annex III shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.

(b)  Paragraph 4 is deleted.

(c)  Paragraph 8 is replaced by the following:

8.  The evaluation of the economic viability referred to in the third indent of paragraph 1 shall be based upon a cost-benefit analysis which shall take account of all costs and benefits, including those in the medium and/or long term, in connection with environmental aspects, security of supply and the contribution to economic and social cohesion. Such an evaluation is a precondition for projects to be identified as projects of common interest.

(4)  A new Article 6a is inserted as follows:

Article 6a

Priority axes of European interest

1.  Priority shall be given to network developments which are compatible with sustainable development and which meet the following criteria:

The list of priority axes which meet these criteria shall be as set out in Annex I. All modifications to that Annex shall be decided upon in accordance with the procedure laid down in Article 251 of the Treaty.

2.  Projects of common interest identified in accordance with this Decision which are situated on the priority axes shall be declared "priority projects of European interest".

3.  The Member States concerned and the Commission shall endeavour, each within its own sphere of competence, to further the carrying-out of priority projects of European interest in particular as far as cross-border projects are concerned.

(5)  Article 7 shall be replaced by the following:

Article 7

When projects are considered, an effort shall be made to take into account the effects on competition. Private financing or financing by the economic operators concerned shall be encouraged. Any competitive distortion between the operators on the market shall be avoided as much as possible.

(6)  Articles 8, 9 and 10 are replaced by the following:

Article 8

Restrictions

1.  This Decision shall be without prejudice to any financial commitment by a Member State or the Community.

2.  This Decision shall be without prejudice to the results of the environmental impact assessment of projects and of the plans or programmes which define the future authorisation framework for such projects. The results of the environmental impact assessments shall be taken into consideration.

Article 9

Committee

1.  The Commission shall be assisted by a Committee, to be called the TEN&nbhy;Energy Committee composed of representatives of the Member States and chaired by the representative of the Commission.

2.  Where reference is made to this paragraph, the regulatory procedure laid down in Article 5 of Decision 1999/468/EC shall apply, in compliance with Articles 7 and 8 thereof.

3.  The period provided for in Article 5(6) of Decision 1999/468/EC shall be three months.

Article 10

Report

Every four years the Commission shall draw up a report on the implementation of this Decision, which it shall submit to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions.

Every two years Member States shall draw up a report on the implementation and progress made in carrying out priority projects of European interest which concern cross-border connections as mentioned in Annex III, projects (a), (b) and (f). This report shall be submitted to the European Parliament, the Council, the Economic and Social Committee and the Committee of Regions.

(7)  After Article 10, the following Article shall be inserted:

Article 10a

Candidate countries

The Commission shall present a proposal amending this Decision no later than 3 months before the accession of new Member States.

(8)  The Annex is replaced by the text set out in the Annex to this Decision.

Article 2

This Decision shall enter into force on the third day following that of its publication in the Official Journal of the European Communities.

Article 3

This Decision is addressed to the Member States.

Done at ,

For the European Parliament For the Council

The President The President

Annex

"ANNEX I

TRANS-EUROPEAN ENERGY NETWORKS

Priority projects of European interest situated on the following priority axes as defined in Article 6a(2)

ELECTRICITY NETWORKS

France – Belgium – Netherlands – Germany: electricity networks reinforcements in order to resolve the frequent problems of congestion through the Benelux.

EL.2.  Borders of Italy with France, Austria and Switzerland: increasing electricity interconnection capacities.

EL.3.  France – Spain – Portugal : increasing electricity interconnection capacities between these countries and for the Iberian peninsula.

EL.4.  Greece – Balkan countries – UCTE System: development of electricity infrastructure to connect Greece to the UCTE System.

EL.5.  United Kingdom – continental Europe and Northern Europe establishing/increasing electricity interconnection capacities and the possible integration of offshore wind energy in the North Sea.

EL.6.  Ireland – Northern Ireland – United Kingdom establishing/increasing electricity interconnection capacities and the possible integration of offshore wind energy.

EL.7.  Denmark – Germany: increasing electricity interconnection capacity.

GAS NETWORKS

NG.1.  United Kingdom – Netherlands – Germany – Russia: gas pipelines connecting the main sources of gas in Europe, improving the interoperability of the networks, and increasing the security of supply.

NG.2.  Algeria – Spain – France: construction of a new gas pipeline from Algeria to Spain and France, and increasing network capacities in Spain and France.

NG.3.  Caspian Sea countries – Middle East – European Union: new gas pipeline networks to the European Union from new sources, including the Greece-Turkey and Italy-Greece gas pipelines.

NG.4.  LNG terminals in France, Spain, Portugal, and Italy: diversifying sources of supply and entry points.

NG.5.  Underground storage in Spain, Portugal, and Greece: increasing capacity in Spain and construction of the first facilities in Portugal and Greece.

ANNEX II

TRANS-EUROPEAN ENERGY NETWORKS

Projects of common interest

ELECTRICITY NETWORKS

(a)  Developing electricity networks in island, isolated, peripheral and ultraperipheral regions while promoting the diversification of energy sources and the use of renewable energies, and connection of the electricity networks of those regions, if appropriate.

(b)  Developing electricity connections between the Member States where this is needed for the functioning of the internal market and in order to ensure the reliability and dependability of the operation of electricity networks.

(c)  Developing electricity connections within the Member States where this is needed in order to take advantage of the connections between the Member States, for the functioning of the internal electricity market or the connection of renewable energy sources.

(d)  Developing electricity connections with third countries, and more particularly with the accession candidate countries, thus contributing towards interoperability, the operational reliability and dependability of the electricity grids or the supply of electricity to the European Community.

(m)  Actions for improving the functioning of the interconnected electricity networks within the internal market and, in particular, identifying the bottlenecks and missing links, developing solutions in order to deal with congestion and adapting the methods of forecasting and of operating electricity networks.

GAS NETWORKS

(e)  Introducing natural gas into new regions, mainly island, isolated, peripheral and ultraperipheral regions and developing gas networks in these regions.

(f)  Developing gas connections in order to meet the needs of the internal market or strengthen the security of supply, including connection of separate gas networks.

(g)  Developing capacities for receiving liquefied natural gas (LNG) and for storage of natural gas, needed in order to meet demand, control gas supply systems, and diversify sources and supply routes.

(h)  Developing gas transport capacity (gas supply pipelines) needed in order to meet demand and diversify supplies from internal and external sources, as well as supply routes.

(n)  Actions for improving the funtioning of the interconnected gas networks within the internal market and, in particular, identifying the bottlenecks and missing links, developing solutions in order to deal with congestion and adapting methods of forecasting and of operating gas networks.

ANNEX III

TRANS-EUROPEAN ENERGY NETWORKS

pecifications of projects of common interest(12)

ELECTRICITY NETWORKS

Projet (a) Developing electricity networks in island, isolated, peripheral and ultraperipheral regions while promoting the diversification of energy sources and enhancing the use of renewable energies, and connection of the electricity networks of those regions, if appropriate.

Specifications:

Project (b) Developing electricity connections between in the Member States needed for the functioning of the internal market and in order to ensure the reliability and dependability of the operation of electricity networks.

Specifications:

Project (c) Developing electrical connections within the Member States where this is needed in order to take advantage of the connections between the Member States, the functioning of the internal market or the connection of renewable energy sources

Specifications:

Project (d) Developing electricity connections with the non&nbhy;Member States, and more particularly with the countries candidates for accession, thus contributing towards interoperability, the operational reliability and dependability of the electricity grids or the supply of electricity within the European Community.

Specifications:

Project (m) Actions improving the functioning of the interconnected electricity networks within the internal market and, in particular, identifying the bottlenecks and missing links, developing solutions in order to deal with congestion and adapting the methods of forecasting and of operating electricity networks.

Specifications:

NATURAL GAS NETWORKS

Project (e) Introducing natural gas into new regions, mainly island, isolated, peripheral and ultraperipheral regions and developing gas networks in these regions.

Specifications:

Project (f) Developing gas connections in order to meet the needs of the internal market or strengthening of the security of supply, including connection of separate gas networks

Specifications:

Project (g) Developing capacities for receiving liquefied natural gas (LNG) and for storage of natural gas, needed in order to meet demand and control gas supply systems, and diversify sources and supply routes.

Specifications:

Project (h) Developing gas transport capacity (gas supply pipelines) needed in order to meet demand and diversify supplies from internal and external sources, as well as supply routes.

Specifications:

Project (n) Actions improving the functioning of the interconnected gas networks within the internal market and, in particular, identifying the bottlenecks and missing links, developing solutions in order to deal with congestion and adapting methods of forecasting and of operating gas networks.

Specifications:

(1) OJ C 151 E, 25.6.2002, p. 207. (2) OJ C 151 E, 25.6.2002, p 207. (3) OJ C […], […], p. […]. (4) OJ C […], […], p. […]. (5) Position of the European Parliament of 24 October 2002. (6) OJ L 161, 29.6.1996, p. 147. Decision as last amended by Decision No 1741/1999/EC (OJ L 207, 6.8.1999, p. 1). (7) OJ L 27, 30.1.1997, p. 20. (8) OJ L 204, 21.7.1998, p. 1. (9) OJ L 228, 23.9.1995, p. 1. Regulation as amended by European Parliament and Council Regulation (EC) No 1655/1999 (OJ L 197, 29.7.1999, p. 1). (10) Amended proposal for a European Parliament and Council Regulation amending Council Regulation (EC) No 2236/95 laying down general rules for the granting of Community financial aid in the field of trans-European networks (COM(2002) 134), see opinion of the industry committee of 21 May 2002. (11) OJ L 184, 17.7.1999, p. 23. (12) * This list has been established on the basis of projects communicated to the Commission by the Member States and the operators concerned.

European Parliament legislative resolution on the proposal for a Council regulation concerning the export and import of dangerous chemicals (COM(2001) 803 – C5&nbhy;0320/2002 – 2002/0026(CNS))

P5_TA(2002)0516 A5-0291/2002

(Consultation procedure - codecision procedure: first reading 2002/0026(COD))

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2001) 803(1)),

–   having been consulted by the Council pursuant to Article 133 of the EC Treaty (C5&nbhy;0320/2002),

–   having regard to Council letters of 23 May 2002 and 4 July 2002 on the proposed change of the legal basis and its procedural implications,

–   having regard to Rule 67 of its Rules of Procedure,

–   having regard to the opinion of the Committee on Legal Affairs and the Internal Market on the proposed legal basis,

–   having regard to the report of the Committee on the Environment, Public Health and Consumer Policy (A5&nbhy;0291/2002),

1.  Approves the Commission proposal as amended;

2.  Calls on the Council and the Commission to consider this position as its first reading under the codecision procedure pursuant to the amended legal basis;

3.  Instructs its President to forward its position to the Council and Commission.

Position of the European Parliament adopted at first reading on 24 October 2002 with a view to the adoption of European Parliament and Council Regulation (EC) No .../2002 concerning the export and import of dangerous chemicals

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 175(1) thereof,

Having regard to the proposal from the Commission(2),

Having regard to the opinion of the Economic and Social Committee(3),

Having regard to the opinion of the Committee of the Regions(4),

Acting in accordance with the procedure laid down in Article 251 of the Treaty(5),

Whereas,

(1)  Council Regulation (EEC) No 2455/92 of 23 July 1992 concerning the export and import of certain dangerous chemicals(6) establishes inter alia a common system of notification and information for exports to third countries of chemicals which are banned or severely restricted in the Community on account of their effects on human health and the environment. The Regulation applies on a mandatory basis the international "prior informed consent" (PIC) procedure under the non-binding provisions of the London Guidelines for the Exchange of Information on Chemicals in International Trade (London Guidelines) of the United Nations Environment Programme (UNEP), as amended in 1989, and under the International Code of Conduct on the Distribution and Use of Pesticides, as amended in 1990, of the Food and Agriculture Organisation (FAO).

(2)  On 10 September 1998, the Community signed the Rotterdam Convention on the prior informed consent procedure for certain hazardous chemicals and pesticides in international trade (the PIC Convention). At the same time, a Resolution on interim arrangements laid down in the Final Act of the Diplomatic Conference was adopted, setting up an interim PIC procedure based on the Convention text.

(3)  It is appropriate that the Community should act to implement the rules of the Convention, including, until such time as it enters into force, the interim PIC procedure, without in any way weakening the level of protection afforded to the environment and the general public of importing countries under Regulation (EEC) No 2455/92.

(4)  With the same objective in mind, it is also necessary and appropriate to go further than the provisions of the Convention in certain respects. Article 15(4) of the Convention allows Parties the right to take action that is more stringently protective of human health and the environment than that called for in the Convention, provided that such action is consistent with the provisions of the Convention and is in accordance with international law.

(5)  As regards the participation of the Community in the Convention, it is essential to have a single contact point for Community interaction with the Secretariat and other Parties to the Convention as well as with other countries. The Commission should act as this contact point.

(6)  Exports of dangerous chemicals that are banned or severely restricted within the Community should continue to be subject to a common export notification procedure. Accordingly, dangerous chemicals, whether in the form of a substance by itself or in a preparation, which have been banned or severely restricted by the Community as plant protection products, as other forms of pesticides, or as industrial chemicals for use by professional users or by the public, should be subject to similar export notification rules to those applicable to such chemicals when they are banned or severely restricted within one or more of the use categories laid down in the Convention,namely as pesticides or chemicals for industrial use. In addition, chemicals subject to the international PIC procedure should also be subject to the same rules. This export notification procedure should apply to Community exports to all third countries, whether or not they are Parties to the Convention or participate in its provisions. Member States should be permitted to charge administrative fees, in order to cover their costs in carrying out this procedure.

(7)  Exporters and importers should be obliged to provide information about the quantities of chemicals in international trade covered by this Regulation in order that the impact and effectiveness of the arrangements laid down therein can be monitored and assessed.

(8)  Notifications to the Secretariat of the Convention of Community or Member State regulatory actions banning or severely restricting chemicals, with a view to their inclusion in the international PIC procedure, should be submitted by the Commission and should relate to those cases meeting the criteria laid down in the Convention in this regard. Additional information to support such notifications should be sought where necessary.

(9)  In cases where Community or Member State regulatory actions do not qualify for notification because they do not meet the criteria, information about the actions should nevertheless be conveyed to the Convention Secretariat and other Parties to the Convention in the interests of information exchange.

(10)  It is also necessary to ensure that the Community takes decisions with regard to the import into the Community of chemicals that are subject to the international PIC procedure. These decisions should be based on applicable Community legislation and take into account bans or severe restrictions by Member States. Where justified, modifications of Community legislation should be prepared.

(11)  Arrangements are needed to ensure that Member States and exporters are aware of the decisions of importing countries as regards chemicals that are subject to the international PIC procedure, and that exporters comply with these decisions. Furthermore, in order to prevent undesired exports, for example because of failures by importing countries to provide such import decisions or to react to export notifications, no chemicals banned or severely restricted within the Community that meet the Convention criteria or that are covered under the international PIC procedure should be exported without the explicit consent of the importing country concerned, whether or not that country is a party to the Convention.

(12)  It is also important that all exported chemicals have an adequate shelf-life so that they may be used effectively and safely. In particular as regards pesticides, and especially those exported to developing countries, it is essential that information about appropriate storage conditions is provided and that suitable packaging and sizes of containers are used to avoid creating obsolete stocks.

(13)  Articles containing chemicals are not within the scope of the Convention. Nevertheless, it seems appropriate that articles containing chemicals that could be released under conditions of use or disposal and that are banned or severely restricted in the Community within one or more of the use categories laid down in the Convention or are subject to the international PIC procedure should also be subject to the export notification rules. Furthermore, certain chemicals and articles containing specific chemicals falling outside the scope of the Convention but giving rise to particular concern should not be exported at all. Decisions as to which chemicals should be subject to such a strict control should be decided by the Council by a qualified majority.

(14)  In accordance with the Convention, information on transit movements of chemicals subject to the international PIC procedure should be provided to Parties to the Convention requesting such information.

(15)  Community rules on packaging and labelling and other safety information should apply to all dangerous chemicals when intended for export to all other countries unless these provisions would conflict with any specific requirements of those countries taking into account relevant international standards.

(16)  In order to ensure effective control and enforcement of the rules, the Member States should designate authorities such as customs authorities that shall have the responsibility of controlling imports and exports of chemicals covered by this Regulation. The Commission and the Member States have a key role to play and should act in a targeted and co-ordinated way. Member States should provide for appropriate sanctions in the event of infringements.

(17)  Information exchange, shared responsibility and co-operative efforts between the Community and its Member States and third countries should be promoted with a view to ensuring a sound management of chemicals, whether or not those third countries are Parties to the Convention. In particular, technical assistance to developing countries and countries with economies in transition should be provided directly by the Commission and the Member States, or indirectly via support for projects by non-governmental organisations (NGOs), especially assistance seeking to enable those countries to implement the Convention.

(18)  There should be regular monitoring of the operation of the procedures if they are to be effective. To this end, Member States should regularly submit reports to the Commission, which will in turn regularly report to the European Parliament and the Council.

(19)  Since the measures necessary for the implementation of this Regulation are measures of general scope within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission,(7) they should be adopted by use of the advisory procedure provided for in Article 3 or the regulatory procedure provided for in Article 5 of that Decision, as appropriate.

(20)  In the light of the above, Regulation (EEC) No 2455/92 should be repealed and replaced,

HAVE ADOPTED THIS REGULATION:

Article 1

Objectives

1.  The objectives of this Regulation are:

They shall be achieved by facilitating information exchange about the characteristics of such chemicals, by providing for a decision-making process within the Community on their import and export and by disseminating decisions to Parties and other countries as appropriate.

2.  The objective of this Regulation is also to ensure that the provisions of Council Directive 67/548/EEC of 27 June 1967 on the approximation of laws, regulations and administrative provisions relating to the classification, packaging and labelling of dangerous substances(8), and Directive 1999/45/EC of the European Parliament and the Council of 31 May 1999 concerning the approximation of the laws, regulations and administrative provisions of the Member States relating to the classification, packaging and labelling of dangerous preparations(9) regarding the classification, packaging and labelling of chemicals dangerous to man or the environment when they are placed on the market in the European Community shall also apply to all such chemicals when they are exported from the Member States to other parties or other countries, unless these provisions would conflict with any specific requirements of those parties or other countries.

Article 2

Scope

1.  This Regulation applies to:

2.  This Regulation shall not apply to:

Article 3

Definitions

Article 4

Designated National Authorities

Each Member State shall designate the authority or authorities, hereinafter referred to as the "Designated National Authority" or "Designated National Authorities", to act for the performance of the administrative functions required by this Regulation.

It shall inform the Commission of such designation at the latest three months after the entry into force of this Regulation.

Article 5

Participation of the Community in the Convention

The participation of the Community in the Convention shall be a joint responsibility of the Commission and the Member States in particular for technical assistance, information exchange and matters relating to dispute settlement, participation in subsidiary bodies and voting.

As far as the participation of the Community in the Convention is concerned, for the administrative functions of the Convention with reference to the PIC procedure and the export notification, the Commission shall act as a common designated authority on behalf of all the Designated National Authorities in close co-operation and consultation with the Designated National Authorities of the Member States.

In particular, it shall be responsible for the transmission of Community export notifications to parties and other countries pursuant to Article 7, the submission to the Secretariat of notifications of relevant final regulatory actions pursuant to Article 10, the transmission of information about other final regulatory actions not qualifying for PIC notification in accordance with Article 11, as well as for receiving information from the Secretariat more generally. The Commission shall also provide the Secretariat with Community import responses for chemicals subject to the PIC procedure pursuant to Article 12.

In addition, the Commission shall co-ordinate the Community input on all technical issues related to the Convention, the preparation of the Conference of the Parties, the Chemical Review Committee and other subsidiary bodies. A network of Member State rapporteurs shall be established, as appropriate, to deal with the preparation of technical documents such as Decision Guidance Documents.

The Commission and the Member States shall take the necessary initiatives to ensure appropriate representation of the Community in the different bodies implementing the Convention.

Article 6

Chemicals subject to export notification, qualifying for PIC notification,

1.  and subject to the PIC procedure 1. The chemicals covered by the provisions of this Regulation relating to export notification, PIC notification and the PIC procedure respectively shall be as listed in Annex I.

2.  Chemicals in Annex I shall be assignable to one or more of three groups of chemicals, set out respectively as Parts 1, 2 and 3 of that Annex.

The chemicals listed in Part 1 shall be subject to export notification as laid down in Article 7, with detailed information on the identity of the substance, on the use category and/or sub-category subject to restriction, the type of restriction and, where appropriate, additional information, in particular on exemptions to requirements for export notification.

The chemicals listed in Part 2 shall, in addition to being subject to the export notification procedure under Article 7, qualify for the PIC notification procedure laid down in Article 10, with detailed information on the identity of the substance and on the use category.

The chemicals listed in Part 3 shall be subject to the PIC procedure with the use category and, where appropriate, additional information, in particular on any requirements for export notification.

3.  The lists shall be made available to the public by electronic means.

Article 7

Export Notifications forwarded to Parties and other countries

1.  When an exporter is due to export a chemical listed in Part 1 of Annex I from the Community to a party or other country for the first time following the date as of which it becomes subject to the provisions of this Regulation, the exporter shall notify the Designated National Authority of the Member State in which he is established, no later than 30 days before the export of the chemical is due to take place. Thereafter the exporter shall notify the first export of the chemical each calendar year to the Designated National Authority 15 days before the export of the chemical takes place. The notification shall comply with the requirements set out in Annex III.

The Designated National Authority shall check compliance of the information with Annex III and promptly forward the notification received from the exporter to the Commission.

The Commission shall take the necessary measures to ensure that the appropriate authorities of the importing party or other country receive notification at least 15 days prior to the first intended export of the chemical and thereafter before the first export of the chemical in any subsequent calendar year. This shall apply regardless of the expected use of the chemical in the importing party or other country.

Each export notification shall be registered in a database at the Commission and an updated list of the chemicals concerned and the importing Parties and other countries for each calendar year shall be kept available to the public, and distributed to the Designated National Authorities of the Member States as appropriate.

2.  If the Commission does not receive from the importing party or other country an acknowledgement of receipt of the first export notification made after the chemical is included in Part 1 of Annex I within 30 days of the dispatch of the notification, it shall submit a second notification. The Commission shall make reasonable efforts to ensure that the appropriate authority in the importing party or other country receives the second notification.

3.  A new export notification according to paragraph 1 shall be given for exports which take place subsequent to changes to Community legislation concerning the marketing, use or labelling of substances in question or whenever the composition of the preparation in question changes so that the labelling of such preparation is altered. The new notification shall comply with the requirements set out in Annex III and shall indicate that it is a revision of a previous notification.

4.  Where the export of a chemical relates to an emergency situation in which any delay may endanger public health or the environment in the importing party or other country, the provisions referred to above may be waived wholly or partly at the discretion of the Designated National Authority of the exporting Member State, in consultation with the Commission.

5.  The obligations set out in paragraphs 1, 2 and 3 shall cease when:

That rule shall not apply where the importing country being party to the Convention explicitly requires continued export notification by exporting Parties, for example through its import decision or otherwise.

6.  The Commission, the relevant Designated National Authorities of the Member States and the exporters shall provide importing Parties and other countries with available additional information on the exported chemicals, when requested.

7.  Member States may establish systems obliging the exporter to pay an administrative fee for each export notification made, corresponding to their costs in carrying out the procedures associated with the provisions of this Article.

Article 8

Export Notifications received from Parties and other countries

1.  Export notifications received by the Commission from the Designated National Authority of a party or another country concerning the export to the Community of a chemical the manufacture, use, handling, consumption, transport and/or sale of which is subject to prohibition or severe restriction under that party's or other country's legislation shall be made available by electronic means through the database maintained by the Commission.

The Commission shall acknowledge receipt of the first export notification received for each chemical from each party or other country.

The Designated National Authority of the Member State receiving that import shall receive a copy of any notification received together with all available information. Other Member States shall be entitled to receive copies on request.

2.  Should the Designated National Authorities of the Member States receive any export notifications either directly or indirectly from the Designated National Authorities of Parties or relevant authorities of other countries, they shall forthwith forward these notifications to the Commission together with all available information.

Article 9

Information on trade in chemicals

1.  Each exporter of a chemical listed in Annex I shall, during the first quarter each year, inform the Designated National Authority of its Member State on the quantity of the chemical (as a substance and as contained in preparations) shipped to each party or other country during the preceding year. This information shall be given together with a list of the names and addresses of each importer to which shipment took place during the same time period.

Each importer within the Community shall provide the same information for the quantities imported into Community.

2.  Upon request from the Commission or the Designated National Authority, the exporter or importer shall provide any additional information related to chemicals that is necessary to implement this Regulation.

3.  Each Member State shall provide the Commission with aggregated information in accordance with Annex IV each year. The Commission shall summarise this information at Community level and shall make the non-confidential information publicly available on its database/internet.

Article 10

Participation in the notification of banned or severely restricted chemicals

1.  under the Convention1. Unless it has already done so prior to the entry into force of this Regulation, the Commission shall notify the Secretariat in writing of the chemicals that qualify for PIC notification.

2.  As and when further chemicals qualify for PIC notification and are added to Part 2 of Annex I, the Commission shall notify the Secretariat. The notification shall be submitted as soon as possible after adoption of the relevant final Community regulatory action banning or severely restricting the chemical, and no later than ninety days after the date on which the final regulatory action has to be applied.

It shall provide all relevant information as required in Annex II.

3.  In determining priorities for notifications, the Commission shall take into account whether the chemical is already listed in Part 3 of Annex I, to what extent the information requirements laid down in Annex II can be met, and the severity of the risks presented by the chemical, in particular for developing countries.

When a chemical qualifies for PIC notification, but the information is insufficient to meet the requirements of Annex II, identified exporters and/or importers shall, upon request by the Commission, provide all relevant information available to them, including that from other national or international chemical control programmes.

4.  The Commission shall notify the Secretariat in writing when a final regulatory action notified under paragraphs 1 or 2 is modified as soon as possible after adoption of the new final regulatory action, and no later than 60 days after the date on which the new final regulatory action has to be applied.

It shall provide all relevant information that was not available at the time when the initial notification was made under paragraphs 1 or 2 respectively.

5.  Upon request from any party or from the Secretariat, the Commission shall provide additional information on the chemical or on the regulatory action, as far as practicable. The Member States shall, upon request, assist the Commission as necessary in compiling the information.

6.  The Commission shall forward forthwith to the Member States information that it receives from the Secretariat regarding chemicals notified as banned or severely restricted by other Parties.

The Commission shall evaluate, in close co-operation with the Member States, the need to propose measures at Community level in order to prevent any unacceptable risks for human health and the environment within the Community.

7.  In cases where a Member State takes national regulatory action in accordance with the relevant EC legislation to ban or severely restrict a chemical, it shall provide the Commission with relevant information. The Commission shall make this information available to the Member States.

Article 11

Information to be transmitted to the Secretariat about banned or severely restricted chemicals not qualifying for PIC notification

When a chemical is listed only in Part 1 of Annex I or following a request by a Member State pursuant to Article 10(7), second subparagraph, second indent, the Commission shall provide the Secretariat with information about the relevant regulatory actions, so that this information can be disseminated to other Parties to the Convention as appropriate.

Article 12

Obligations in relation to imports of chemicals

1.  The Commission shall forward forthwith to the Member States Decision Guidance Documents which it receives from the Secretariat. The Commission shall take an import decision, in the form of a final or interim import response on behalf of the Community, concerning the future importation into the Community of the chemical concerned: it shall do so in accordance with existing Community legislation and the procedure referred to in Article 24(2). It shall then communicate the decision to the Secretariat as soon as possible, and no later than nine months after the date of dispatch of the Decision Guidance Document by the Secretariat.

If any chemical is subject to additional or modified restrictions under Community legislation, the Commission shall revise the import decision in accordance with the same procedure and communicate it to the Secretariat.

In the case of a chemical that is banned or severely restricted by legislation in one or more Member States, the Commission shall, at the written request of the Member State(s) concerned, take that information into account in its import decision.

2.  An import decision under paragraph 1 shall relate to the category or categories specified for the chemical in the Decision Guidance Document.

3.  When communicating the import decision to the Secretariat, the Commission shall provide a description of the legislative or administrative measure upon which it is based.

4.  Each Designated National Authority within the Community shall make the import decisions under paragraph 1 available to those concerned within its competence, in accordance with its legislative or administrative measures.

5.  Where appropriate, the Commission shall evaluate, in close co-operation with the Member States, the need to propose measures at Community level in order to prevent any unacceptable risks for human health and the environment within the Community, taking into account the information contained in the Decision Guidance Document.

Article 13

Obligations in relation to exports of chemicals other than export notification requirements

1.  The Commission shall forward forthwith to the Member States and European industry associations, information which it receives, whether in the form of circulars or otherwise, from the Secretariat regarding chemicals subject to the PIC procedure and the decisions of importing Parties regarding import conditions on these chemicals. It shall also forward forthwith to the Member States information on any cases of failure to transmit a response. The Commission shall keep all information regarding import decisions available in its database, which will be publicly available on the internet, and provide anyone with the information upon request.

2.  For each chemical listed in Annex I the Commission shall assign a classification in the European Community's Combined Nomenclature. These classifications shall be revised as necessary in the light of any changes effected by the World Customs Organisation to the Harmonised System nomenclature for the chemicals concerned.

3.  Each Member State shall communicate the responses forwarded by the Commission under paragraph 1 to those concerned within its jurisdiction.

4.  Exporters shall comply with decisions in each import response no later than six months after the Secretariat has first informed the Commission of such response under paragraph 1.

5.  The Commission and the Member States shall advise and assist importing Parties, upon request and as appropriate, to obtain further information to help them to make a response to the Secretariat concerning importation of a given chemical.

6.  No chemicals listed in Parts 2 or 3 of Annex I shall be exported unless:

7.  No chemical shall be exported later than six months before the expiry date, when such a date exists or can be inferred from the production date, unless the intrinsic properties of the chemical render this impracticable. In particular, in the case of pesticides exporters shall ensure that the size and packaging of pesticide containers is optimised so as to minimise the risks of creating obsolete stocks.

8.  When exporting pesticides, exporters shall ensure that the label contains specific information about storage conditions and storage stability under the climatic conditions of the importing party or other country. In addition, they shall ensure that the exported pesticides comply with the purity specification established by Community legislation.

Article 14

Controls on export of certain chemicals and articles containing chemicals

1.  Articles containing chemicals listed in Parts 2 or 3 of Annex I in unreacted form shall be subject to the export notification procedure laid down in Article 7.

2.  Chemicals and articles the use of which is prohibited in the Community for the protection of human health or the environment, as listed in Annex V, shall not be exported.

Article 15

Information on transit movements

1.  Parties to the Convention requiring information on transit movements of chemicals subject to the PIC procedure together with the information required for each party to the Convention having expressed such need through the Secretariat shall be as listed in Annex VI.

2.  When a chemical listed in Part 3 of Annex I is transported through the territory of a party to the Convention listed in Annex VI, the exporter shall, as far as practicable, provide the Designated National Authority of the Member State in which he is established with the information required by the party to the Convention in accordance with Annex VI 30 days before the first transit takes place and 8 days before each subsequent transit movement.

3.  The Designated National Authority of the Member State shall forward to the Commission the information received from the exporter under paragraph 2 together with any available additional information.

4.  The Commission shall forward the information received under paragraph 3 to the Designated National Authorities of Parties to the Convention which requested such information, together with any available additional information, 15 days before first transit movement and prior to any subsequent transit movement.

Article 16

Information to accompany exported chemicals

1.  Chemicals that are intended for export shall be subject to the measures on packaging and labelling established in, or pursuant to, Directive 67/548/EEC, Directive 1999/45/EC, Directive 91/414/EEC and Directive 98/8/EC, or any other specific Community legislation. This obligation shall be without prejudice to any specific requirements of the importing party or other country taking into account relevant international standards.

2.  Where appropriate, the expiry date and the production date of chemicals referred to in paragraph 1 or listed in Annex I shall be indicated on the label, and if necessary such expiry dates shall be given for different climate zones.

3.  A safety data sheet in accordance with Commission Directive 91/155/EEC of 5 March 1991 defining and laying down the detailed arrangements for the system of specific information relating to dangerous preparations in implementation of Article 10 of Council Directive 88/379/EEC(22) shall accompany chemicals referred to in paragraph 1, when exported. The exporter shall send such a safety data sheet to each importer.

4.  The information on the label and on the safety data sheet shall as far as practicable be given in the official language(s), or in one or more of the principal languages, of the country of destination or of the area of intended use.

Article 17

Obligations of the authorities of the Member States for controlling import and export

Each Member State shall designate authorities such as customs authorities that shall have the responsibility of controlling the import and export of chemicals listed in Annex I.

The Commission and the Member States shall act in a targeted and co-ordinated way in controlling compliance of exporters with this Regulation.

Each Member State shall, in its regular reports on the operation of procedures pursuant to Article 21(1), include details of the activities of its authorities in this regard.

Article 18

Penalties

Member States shall determine the penalties applicable to infringements of the provisions of this Regulation and take all necessary measures to ensure correct implementation of these provisions. The penalties must be effective, proportional and dissuasive. Member States shall notify these measures to the Commission not later than twelve months after the adoption of this Regulation and shall also notify any further modifications as soon as possible after their adoption.

Article 19

Information exchange

1.  The Commission and the Member States shall, as appropriate, facilitate the provision of scientific, technical, economic and legal information concerning chemicals subject to this Regulation, including toxicological, ecotoxicological and safety information.

2.  The Commission and the Member States shall protect any confidential information received from another party or another country as mutually agreed.

3.  As regards the transmission of information under this Regulation, and without prejudice to Council Directive 90/313/EEC of 7 June 1990 on the freedom of access to information on the environment(23), the following shall not be regarded as confidential:

A compilation of these activities shall be prepared regularly by the Commission on the basis of the contributions of Member States.

Article 20

Technical assistance

The Commission and the Designated National Authorities of the Member States shall, taking into account in particular the needs of developing countries and countries with economies in transition, co-operate in promoting technical assistance, including training, for the development of the infrastructure, the capacity and the expertise necessary to manage chemicals properly throughout their life cycle.

In particular, and with a view to enabling these countries to implement the Convention, technical assistance shall be promoted by providing technical information on chemicals, by promoting the exchange of experts, by giving support for the establishment or maintenance of Designated National Authorities, by providing technical expertise for the identification of hazardous pesticides formulations and for the preparation of notifications to the Secretariat.

The Commission and the Member States should actively participate in the Information Network on capacity building set up by the Intergovernmental Forum on Chemical Safety, by providing information on the projects they are supporting or financing to improve the management of chemicals in developing countries and countries with economies in transition.

The Commission and the Member States shall also consider giving support to Non-Governmental Organisations.

Article 21

Monitoring and Reporting

1.  Member States shall regularly forward to the Commission information on the operation of the procedures provided for in this Regulation, including the customs controls, infringements, penalties, and remedial action.

2.  The Commission shall regularly compile a report on the performance of the functions provided for in this Regulation for which it is responsible and shall integrate it in a synthesis report compiling the information provided by the Member States under paragraph 1. A summary of the report, which will be published on the internet, shall be forwarded to the European Parliament and the Council.

3.  As regards the information supplied pursuant to paragraphs 1 and 2, the Member States and the Commission shall comply with relevant obligations to protect the confidentiality of data and ownership.

Article 22

Updating Annexes

1.  The list of chemicals in Annex I shall be reviewed by the Commission at least every year, on the basis of developments under Community legislation and under the Convention.

2.  In determining whether a final regulatory action under Community legislation constitutes a ban or a severe restriction, the effect of the action shall be assessed at the level of the sub-categories within the categories "pesticides" and "industrial chemicals". If the regulatory action bans or severely restricts a chemical in any one of the sub-categories it shall be included in Part 1 of Annex I.

In determining whether a final regulatory action under Community legislation constitutes a ban or a severe restriction such that the chemical concerned qualifies for PIC notification under Article 10, the effect of the action shall be assessed at the level of the categories "pesticides" and "industrial chemicals". If the regulatory action bans or severely restricts the use of a chemical within either of the categories it shall also be included in Part 2 of Annex I.

3.  The Commission shall take a decision to include chemicals in Annex I, or to modify their entry where appropriate, without undue delay.

4.  Inclusion of a chemical in Parts 1 or 2 of Annex I pursuant to paragraph 2 following regulatory action under Community legislation shall be decided in accordance with the procedure referred to in Article 24(3).

5.  All other amendments to Annex I, including modifications to existing entries, and amendments to Annexes II, III, IV and VI, shall be adopted by the procedure referred to in Article 24(2).

Article 23

Technical notes for guidance

The Commission, in accordance with the procedure referred to in Article 24(2), shall draw up technical notes for guidance to facilitate the day-to-day application of this Regulation.

These technical notes shall be published in the "C" series of the Official Journal of the European Communities.

Article 24

Committee

1.  The Commission shall be assisted by the committee established by Article 29 of Directive 67/548/EEC.

2.  Where reference is made to this paragraph, Articles 3 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

3.  Where reference is made to this paragraph, Articles 5 and 7 of Decision 1999/468/EC shall apply, having regard to the provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision 1999/468/EC shall be set at three months.

Article 25

Repeal

Regulation (EEC) No 2455/92 is hereby repealed.

Article 26

Entry into force

This Regulation shall enter into force on [1 January 2003].

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at ,

For the European Parliament For the Council

The President The President

ANNEX I

PART 1: LIST OF CHEMICALS SUBJECT TO EXPORT NOTIFICATION PROCEDURE

(Article 7)

It should be noted that where chemicals listed in this part of the Annex are subject to the PIC procedure, the export notification obligations set out in paragraphs 1 to 3 of Article 7 shall not apply provided that the conditions laid down in subparagraphs (b) and (c) of paragraph 5 of the same Article have been fulfilled. Such chemicals, which are identified by the symbol # in the list below, are listed again in Part 3 of this Annex for ease of reference.

It should also be noted that where the chemicals listed in this part of the Annex qualify for PIC notification because of the nature of the Community's final regulatory action, these chemicals are also listed in Part 2 of this Annex. Such chemicals are identified by the symbol + in the list below.

________________________________________________________________________________________________________________

* Sub- Category: p(1) – pesticide in the group of plant protection products, p(2) – other pesticide including biocides. i(1) - industrial chemical for professional use and i(2) – industrial chemical for public use

** Use limitation: sr - severe restriction, b – ban (for the sub-category or sub-categories concerned) according to Community legislation

CAS = Chemical Abstracts Service

# Chemical subject or partially subject to the PIC procedure

+ Chemical qualifying for PIC notification

1 Except motor fuels subject to Directive 98/70/EC of the European Parliament and of the Council (OJ L 350, 28.12.1998, p. 58).

________________________________________________________________________________________________________________

PART 2: LIST OF CHEMICALS QUALIFYING FOR PIC NOTIFICATION

(Article 10)

This list comprises chemicals qualifying for PIC notification. It generally does not include chemicals that are already subject to the PIC procedure, which are listed in Part 3 of this Annex.

* Category: p – pesticide s. i - industrial chemical

** Use limitation: sr - severe restriction, b – ban (for the category or categories concerned)

CAS = Chemical Abstracts Service

# Chemical subject or partially subject to the international PIC procedure

PART 3: LIST OF CHEMICALS SUBJECT TO THE PIC PROCEDURE UNDER THE ROTTERDAM CONVENTION

(Articles 12 and 13)

(The categories shown are those referred to in the Convention)

* These substances are subject to an export ban in accordance with the provisions of Article 14(2) and Annex V.

ANNEX II

NOTIFICATION OF A BANNED OR SEVERELY RESTRICTED CHEMICAL TO THE SECRETARIAT OF THE CONVENTION

Information requirements for notifications pursuant to Article 10.

Notifications shall include:

1.   properties, identification and uses

2.   final regulatory action

a)   information specific to the final regulatory action:

b)   category or categories where the final regulatory action has been taken, and for each category:

c)   an indication, to the extent possible, of the likely relevance of the final regulatory action to other States and regions;

d)   other relevant information that may cover: