NEWS IN BRIEF ISSUE 2014/3 FEBRUARY 2014

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1 ISSUE 2014/3 FEBRUARY 2014 NEWS IN BRIEF Public Procurement MEPs have voted to formally approve an agreement reached between the Parliament and Member States on revisions to the Directive on Public Procurement. European Maritime and Fisheries Fund On the 29 January the European Parliament and the Member States, represented by the Greek President, reached a tentative agreement on the principal outstanding issues for a regulation on the European maritime and fisheries fund Climate and Energy Policy In a plenary vote on 5 February, MEPs adopted a non-binding report on the European Commission s March 2013 Green Paper on the EU s 2030 Framework for Climate and Energy Policies. Animal and Plant Health Agriculture Committee MEPs have adopted their position on two draft Regulations on protective measures against pests on plants, and on rules for the prevention and control of animal diseases. Horizon 2020 in the UK At the official launch of the Horizon 2020 programme in the UK, EU Research Máire Geoghegan-Quinn emphasised the important role UK science and industry will have to play in helping the programme to reach its full potential. ALSO IN THIS ISSUE: EUROPEAN COMMISSION PRESIDENT APPOINTMENT MEPs have set out their views on how the next President of the European Commission should be appointed. European Research Area Chairs The European Commission announced on 10 February that eleven universities and technical institutes in less-developed regions in Europe are to receive up to 2.4 million though the appointment of the first ever European Research Area (ERA) Chairs. Seasonal workers MEPs approved new rules governing the treatment of seasonal workers from non-eu countries. The legislation would not cover the UK. High-technology employment A recent study has shown that the hightechnology sector in EU has remained resilient throughout the economic crisis. Skills mismatches A recent study published by the World Economic Forum, addresses the issue of skills mismatches and shortages in the EU. Worker mobility The European Commission has published a study examining the integration of mobile citizens into six EU cities.

2 2 Public Procurement. MEPs have voted to formally approve an agreement reached between the Parliament and Member States on revisions to the Directive on Public Procurement. The agreement must now also be formally approved by Member States, in time for the Directive to become law in March. Member States would then have two years to transpose its provisions into national law. The Directive is one of the twelve priorities of the Single Market Act I, intended to reap the fuller benefits of the internal market. The revision of the laws for public procurement spending, which commands around 18% of GDP, is intended to accomplish this through several new measures: The "most economically advantageous tender" (MEAT) principle included in the award procedure will allow public authorities to put emphasis on quality, environmental considerations, social aspects or innovation and move beyond simple, lowest-cost criteria. The new Innovation Partnerships will allow public authorities to call for tenders to solve a specific problem without preempting the solution, thereby enabling the authority and the tenderer to work collaboratively on innovative solutions. A standard "European Single Procurement Document" based on selfdeclarations will simplify the bidding procedure and reduce the administrative burden. This measure is also designed to facilitate greater SME participation. The mandatory use of electronic communication in public procurement will increase accessibility, particularly for SMEs, and will bring efficiency gains. There are also two SME-specific measures: the division of contracts into lots is encouraged through the apply or explain principle. And, regarding proof of the financial capacity of the tenderer, the turnover requirements will be limited to a maximum of twice the estimated value of the contract, with some exceptions. Member States will remain free to decide how they want public works or services to be performed either in-house or outsourced to private companies. The approved agreement also excludes water from the scope of the new rules. European Maritime and Fisheries Fund. On the 29 January, the European Parliament and the Member States, represented by the Greek President, reached a tentative agreement on the principal outstanding issues for a regulation on the European maritime and fisheries fund (EMFF), which will replace the existing European fisheries fund. The EMFF is the last of the European Structural and Investment Funds still to be adopted for 2014 to The general objective of the EMFF is to support the implementation of the reformed Common Fisheries Policy and to further develop the EU's integrated maritime policy by financing some of the priorities identified. Agreement was reached on the following points: The budgetary resources and their allocation Conditions for engine renewal Support for temporary cessation of activity Admissibility Compensation conditions in cases of damages due to predators An action plan for Member States with small coastal fishing fleets Following this provisional agreement, further technical meetings to eliminate

3 3 discrepancies that do not need political deliberation will be held Climate and Energy Policy. In a plenary vote on 5 February, MEPs adopted a non-binding report on the European Commission s March 2013 Green Paper on the EU s 2030 Framework for Climate and Energy Policies. The Green Paper aimed to get a steer on the structure of a future policy framework and 2030 targets for climate and energy goals. The vote passed by 341 votes to 263. Parliament endorses a continuation of the current approach in the EU s 2020 climate & energy framework, with three separate targets set for greenhouse gas (GHG) emission reduction, the proportion of renewables in the EU energy mix, and an energy efficiency goal. For 2030, MEPs support all three targets being legally binding (under the current 2020 framework, the energy efficiency target is only indicative) and each target is implemented through individual national targets. The report would set targets at 40% for emissions, 30% for renewables and 40% for energy savings. This is more ambitious than the 2030 Framework proposals released by the Commission on 22 January which calls for a 40% emissions target, but only an overall 27% renewables target (with no national targets). For now, the Commission proposes no energy efficiency target but is expected to do so following the June 2014 review of the implementation of the EU Energy Efficiency Directive. EU Governments are hoping to adopt an initial position on the targets and general approach for a 2030 climate and energy Framework at their March European Council summit. Animal and Plant Health. Members of the European Parliament s Agriculture and Rural Development Committee have adopted their position on two draft Regulations on protective measures against pests on plants, and on rules for the prevention and control of animal diseases. The positions are expected to be approved by the full Parliament in April. MEPs voted in favour of establishing a list of plants and plant products from certain countries and regions that may be imported into the EU. Countries wishing to export plants to the EU should submit a request to the European Commission, which should decide whether or not to accept it on the basis of various checks, including on-thespot audits by the EU. The new animal health rules clarify the duties of farmers, traders and animal professionals, including veterinarians and pet keepers, to ensure the good health of their animals and prevent the introduction and spread of diseases. MEPs proposed that Member States should pay particular attention to antimicrobial resistance and ensure better access to professional training in animal husbandry and veterinary medicines when designing their national plans for the prevention and control of infectious animal diseases. Animal operators should be subject to animal-health visits by a veterinarian to their premises with the aim of stopping emerging diseases from spreading through the EU market. MEPs state that the European Commission should be empowered to adopt urgent measures to tackle serious diseases such as avian influenza, but that the Parliament and the Member States should have proper scrutiny over such measures and the ability to repeal them if necessary.

4 4 Member States should establish mandatory registration schemes for stray animals by January The Parliament s position also asks the European Commission to table a proposal concerning electronic databases for stray dogs throughout the EU by 31 July MEPs also adopted an amendment concerning electronic identification in sheep. The Parliament s position would give sheep farmers the option of only tagging their sheep once with a manual tag, and with a holding number instead of an individual identification number, until the sheep leaves the holding of birth, at which point the normal rules (double tagging with an electronic tag and an individual ID number) would apply. Horizon 2020 in the UK. At the official launch of the Horizon 2020 programme in the UK, Commissioner for Research, Innovation and Science Máire Geoghegan- Quinn emphasised the important role UK science and industry will have to play in helping the programme to reach its full potential. The Commissioner expressed her conviction to the audience in London that British universities, companies, SMEs and research organisation will continue their active role at the heart of EU research and innovation programmes, and that without the UK s having been in the thick of the negotiation process over the past few years Horizon 2020 might have looked very different indeed. Given past performance, the Commissioner emphasised how well-primed the UK was at present to do well in the programme; being a leader in both of Horizon 2020 s focus areas of top quality fundamental research and its application in innovation According to Geoghegan-Quinn, since 2007 UK institutions have received more than 15% of the total FP7 budget and have hosted 962 European Research Council grantees more than one in five of the total. The Commissioner also noted how the winning of so much European money could help to enhance the international profile of UK universities, as well as attracting top researchers. European Research Area Chairs. The European Commission announced on 10 February that eleven universities and technical institutes in less-developed regions in Europe are to receive up to 2.4 million though the appointment of the first ever European Research Area (ERA) Chairs. This new initiative aims to bridge Europe's innovation divide by attracting top academics to organisations in lessdeveloped in order that they can build capacity and compete with centres of excellence elsewhere in the ERA. The ERA Chairs are awarded to academics deemed to have the capacity to raise standards and attract more high level staff and funding to their institution, and amongst the eleven winners from this round was Falmouth University in the UK. A call leading to the appointment of a further fifteen ERA Chairs will follow the release of the next round of Horizon 2020 calls in December Seasonal workers. In a 5 February plenary vote, MEPs approved new rules governing the treatment of seasonal workers from non- EU countries. The proposed legislation, passed by 498 votes to 56, seeks to end exploitation of seasonal workers. It aims to give seasonal workers the same rights as EU nationals; especially as regards minimum working age, pay, dismissal, working hours, holidays, and health and safety requirements. It should be noted

5 5 however, that in accordance with EU legislation the UK, Ireland and Denmark would not be bound by the Directive. Within the new rules, seasonal workers would also have the right to join a trade union, and will also be given access to social security, pensions, training, and advice on seasonal work offered by employment offices and other public services, except for public housing. Employers and sub-contractors in breach of the rules would face penalties including payment of compensation to the worker concerned. Member States would retain the right to set the maximum length of stay for non-eu seasonal workers. Member States must now reach a position of the proposal and negotiate with the Parliament to reach a joint position before the proposal can become law. Governments will then have two and a half years to transpose the provisions of the proposal into national law. High-technology employment. A recent study by the University of Leuven has shown that the high-technology sector in EU has remained resilient throughout the economic crisis. The analysis, which analyses high-tech employment and wage trends in the European Union between 2000 and 2011, shows that employment has grown on average more than twice as fast in the high-tech sector than in others. This growth typically occurred in regions without existing concentrations of high-tech jobs, and was shown to have a multiplier effect by creating four non-high tech jobs for every one high-tech job created. The UK, however, is shown to have undergone a different trend experiencing employment rises in non-high tech sectors. In the UK the study shows that the level of high-tech employment has remained stationary since 2000 and sits just below the current EU average. The study shows that in 2011 the Czech Republic had the highest concentration of national high-technology employment (at 13.7% of total employment), whereas Germany contributed most to overall EU rate (with 21.9%). The report contains a number of recommendations for policymakers, highlighting the need for supporting lifelong learning, retaining and retraining workers, and changing education systems to education to develop technology skills and innovation. Skills mismatches. A recent study published by the World Economic Forum, incorporating contributions from the European Centre for the Development of Vocational Training (CEDEFOP), has addressed the issue of skills mismatches and shortages in the EU. It shows that, although skills mismatches may have become more prominent in the aftermath of the crisis, they are typically the result of existing structural problems such as uncompetitive wages, unattractive working conditions, poor recruitment policies and/or mismatches between the locations of skills and jobs. The report identifies qualification mismatches as a potentially more serious issue. The report finds this typically evident in the over-qualification of individuals for their jobs; leading to scarring of careers through skill atrophication and lack of fulfillment. The report makes a number of policy recommendations:

6 6 The quality of jobs created, and their impact on those who take them, is as important as the creation of jobs. Attention should be paid to developing the human capital of the low-skilled unemployed through initiatives like workplace learning and retraining. Building links between business, universities and job seekers, for example through clusters, is essential to this. Reducing skills mismatches requires a bridging of the differences between the emphases of higher education and the needs of employers. Additional action is necessary throughout the employment life cycle to continuously develop and deploy skills. There should be a greater onus on employers to offer development and training opportunities, often in conjunction with state support. Worker mobility. The European Commission has published a study examining the integration of mobile citizens into six EU cities deemed to have a welcoming culture Barcelona, Dublin, Hamburg, Lille, Prague and Turin. The report shows that the majority of mobile EU citizens are young and primarily move in order to seek employment. Their arrival helps to plug skills gaps and compensate for aging populations. The study does highlight several challenges for policy makers: Mobile citizens are more likely to be overqualified than nationals (taking up jobs below their qualification) which could imply a wasting of skills; and thereby mitigating the potential benefits of intra- EU mobility. Wage differentials may emerge in some cases between nationals and mobile EU citizens (who most often earn less), although evidence for this is limited. Mobile citizens do not always benefit from the same opportunities in terms of housing and inclusion of children in schools, although they work and pay taxes. Also outlined are best practices identified amongst from the sample cities. These include the efficacy of the cities integration practices, which are deemed a success based on attitude trends towards immigration. European Commission President Appointment. The European Parliament s Constitutional Affairs Committee has adopted a non-binding report setting out its views on the Parliament s role in the election of the new European Commission President. As head of the European Union s executive body, the Commission President plays a major role in determining the Union s policy agenda. The President allocates portfolios to the other 27 Commissioners, gives political guidance to the Commission and represents the institution externally. The next Commission President will officially take office on 1 November 2014, for a period of five years. The Commission President is appointed by the heads of state or government of EU countries, with the approval of the European Parliament. However, the Committee report calls on EU Leaders to respect the provision in the 2009 Treaty of Lisbon for the appointment of the Commission President to take into account the results of the European Parliament elections. The Parliament believes that the new Commission President should be a representative of the EU political family which receives the most votes in the

7 7 elections. MEPs have asked EU Leaders to clarify, before the elections in May, how it will take account of the elections to the European Parliament and will honour the citizens' choice when putting forward a candidate for President of the Commission. Once the candidate has been designated by Leaders, he or she should be asked to present policy guidelines for his or her term of office to the European Parliament. This presentation should be followed by a comprehensive exchange of views, before Parliament proceeds to elect the proposed candidate for the post, says the Committee. A meeting of EU Leaders is scheduled for 27 May, two days after the close of the European election period, to discuss the nomination of the new Commission President. EU-level political parties have started selecting candidates for Commission President. The Socialists and Democrats, currently the second largest group in the Parliament, have designated current Parliament President Martin Schulz as their candidate. The third largest group, the Alliance of Liberals and Democrats, has nominated its current group President Guy Verhofstadt. Following a Europe wide primary, the Greens have nominated current MEPs Ska Keller and José Bové. The largest group, the European People s Party, will select its candidate on 7 March. Further information about the candidates, and the appointment of other Commissioners, will follow in future editions of the Brussels Bulletin.

8 8 UPCOMING EVENTS & MEETINGS February March Competitiveness Council 3 Environment Council European Parliament plenary 4 Transport, Telecommunications and Energy Council 24 Education, Youth, Culture and Sport Council 10 Employment, Social Policy, Health and Consumer Affairs Council 11 Economic and Financial Affairs Council 14 Transport Council 18 General Affairs Council European Council Summit Agriculture and Fisheries Council CONTACT DETAILS The Scottish Parliament EDINBURGH EH99 1SP UK Tel: