The Scottish Government

« Previous | Contents |

Listen

INTRODUCTION BY THE MINISTER FOR FINANCE AND PUBLIC SERVICE REFORM

A year on from the publication of our European Strategy, the European Union has come through a period of great change. 2004 was certainly a landmark year. On 1 May 10 new Member States joined the EU in the biggest enlargement in its history, bringing the total number of Member States to 25. We also saw the election of a new European Parliament, a new European Commission taking office and the signing of the new Constitutional Treaty by Member State Governments - although this has yet to be ratified.

After so much change, it will be an important in 2005 to consolidate recent changes and to make an EU of 25 Member States work effectively. It is also a critical time for the UK in Europe as we build up to our Presidency of the EU in the second half of 2005.

As with previous EU Presidencies, I am delighted to be able to provide the Executive's priorities for the Luxembourg Presidency of the EU which runs from January to June 2005.

This paper outlines the key priorities for the next six months across Ministerial portfolios. It brings together statements from my Cabinet colleagues setting out their particular EU policy priorities for the period covered by the Luxembourg Presidency together with key opportunities for engagement in the EU policy process.

I hope that this paper will act as useful guidance to all Scottish Parliament Committees whose remits include an EU dimension.

TOM McCABE

MINISTERIAL PRIORITIES FOR THE LUXEMBOURG PRESIDENCY OF THE EUROPEAN UNION

Prospects for External Relations

The top priorities as stated by the Presidency

EU Constitution

The Treaty establishing a Constitution for Europe was agreed by the European Council on 18 June 2004 and replaces the Treaties which currently underpin the European Union ( EU) and European Communities. The Treaty was signed on 29 October 2004 and must now be ratified within two years by all 25 Member States. Lithuania and Hungary have already ratified.

EU Governance and Better Regulation

Luxembourg will build on the work completed under the Dutch presidency on the Better Regulation agenda under the "Four Presidencies Initiative", established by the Governments of Ireland, the Netherlands, Luxembourg and the UK in January 2004 and now extended to include Austria and Finland. The initiative aims to drive forward regulatory reform in the EU and as a result the Commission has already confirmed that all of the proposals in its 2005 annual work plan will be subject to Extended Impact Assessments. This will also be a key theme of the forthcoming UK Presidency.

External Relations

The aim of the Union's foreign policy is to make the world safer and more prosperous and to ensure greater observance of human rights. A wide range of instruments is employed to achieve these objectives. Through its external activities, the Presidency will be responsible for implementing the European Security Strategy adopted in 2003. One of the primary focuses of this strategy is the priority given to multilateralism.

Enlargement

The European Union will continue to progress enlargement under the Luxembourg Presidency. The membership treaty with Bulgaria and Romania will be finalised with a view to signature in April 2005, followed by accession of both countries in 2007, provided that adequate progress towards implementation of EU law is maintained. Membership negotiations with Croatia will commence on 17 March 2005. Following its membership application, the Former Yugoslav Republic of Macedonia will submit its responses to the questionnaire from the Commission and a Commission opinion can be expected in 2005.

Important issues for the Scottish Executive to be dealt with by the Presidency

EU Constitution

The EU Constitutional Treaty must be ratified by all 25 Member States within 2 years of signature. In the UK a referendum will be held once the UK Parliament has completed its scrutiny of the new Treaty. The provisions for this referendum are contained in the EU Bill giving effect to the Treaty, which was introduced in the UK Parliament on 25 January 2005.

The Bill will give effect to the Treaty through amendment of the 1972 European Communities Act. While the Bill impacts on devolved issues in only a small number of technical areas, the debate in the Scottish Parliament on the Sewel motion necessitated by these areas may range more widely. Alongside consideration of the Bill, Ministers are working to secure agreement with the UK Government about how the Treaty's subsidiarity provisions will work in practice.

EU Governance and Better Regulation

In addition to contributing to the UK efforts, the Scottish Executive has been pressing hard through REGLEG (the Group of Regions with Legislative Powers in the EU) for better EU regulation, and in particular the development of meaningful impact assessments. Although much of the Executive interest in this area rests with the Enterprise portfolio, we also have an interest in ensuring that the Better Regulation agenda serves to control the costs of implementation on public authorities and is not limited to those costs falling on business.

Prospects for Economy and Public Finance

The top priorities as stated by the Presidency

Future Financing (2007-2013)

At the General Affairs Council on 31 ^st January, the Presidency and the Commission again confirmed the importance attached to reaching agreement on the EU Budget for 2007-13 by June - though the budget disciplinarian Member States, including the UK, stressed that the result would be more important than sticking to the timetable.

The Executive supports the UK Government view that the Commission's current proposals to increase the EU budget substantially cannot be justified in terms of value for money for UK taxpayers. The UK position, supported by six other Member States, remains that the EU budget should not exceed 1% of EUGNI (€815bn) - which allows for real growth of 6.5% relative to the current financial perspective.

Taxation - Value Added Tax

The bulk of the proposals in the VAT area aim at completing and modernising the common system of value added tax by simultaneously adapting it to recent economic, technical and political developments and making it easier to operate for both the private and public sectors.

Taxation - Excise Duties

Commission proposals in the area of excise duties seek to codify, complete and modernise existing Community legislation.

Lisbon Agenda

The Lisbon Agenda put in place an overall strategy for the Union aimed at promoting economic growth, fostering competitiveness and job creation, and advancing structural and regulatory reform, while ensuring social cohesion and environmental sustainability as defined by the Göteborg European Council. The mid-term review in 2005 offers a prominent opportunity to take stock of the results achieved so far and to step up efforts at EU and Member State level, and where necessary to take corrective action, to achieve the Lisbon targets.

The Luxembourg and UK Presidencies will pursue further improvements in competitiveness. Reducing burdens on business by legislating better, reviewing and simplifying existing EU legislation and using alternatives to regulation will play an important role in strengthening competitiveness. Other important policies contributing to enhanced competitiveness are innovation and enterprise, research and education.

Important issues for the Scottish Executive to be dealt with by the Presidency

Future Financing (2007-2013)

The Executive would welcome June agreement of the EU Budget for 2007-13, but agrees that the result is more important than sticking to the timetable. It shares the UK view that the Commission's proposals for a 35% increase relative to current budgets cannot be justified in terms of value for money for the UK taxpayer.

Scotland's interests are concerned not only over the size of the total budget, and the implications for other UK public spending, but also in how the budget is divided: Scotland benefits from significant EU receipts at present from both the CAP and the Structural Funds. And how budgets for these individual programmes are then allocated is also of great importance.

Taxation

The Executive would welcome changes that contribute to greater coherence and transparency and lead to greater efficiency in taxation regimes across the EU to reduce administrative costs to cross-border trade.

The Lisbon Strategy

The Scottish Executive welcomes the Luxembourg Presidency's commitment to raising competitiveness. The Presidency will seek to ensure that proposals for legislation will be accompanied by a credible impact assessment and will work with the Commission to ensure the continuing implementation of the Better Regulation Action Plan. Both the ECOFIN and Competitiveness Councils will continue to play an active role, reflecting the importance of improving the regulatory framework to the goals of economic reform and growth.

TOM McCABE

MINISTERIAL PRIORITIES FOR THE LUXEMBOURG PRESIDENCY OF THE EUROPEAN UNION

Prospects for European Structural Funds

The top priorities as stated by the Presidency

The reform of current regional policy regulations for the 2007-13 period

Important issues for the Scottish Executive to be dealt with by the Presidency

Negotiations on the Structural and Cohesion Fund ( SCF) regulation proposals, adopted by the Commission in July 2004 will continue in the Structural Actions Working Group. Progress on the negotiations will be partly governed by the outcome of the wider negotiations on the Financial Perspective in which the UK and other net contributors are pressing for a reduction in the Commission's proposals. The Executive will continue to liaise closely with the UK Government in developing the UK negotiating line. Executive officials will also be involved in Council Working Group meetings.

Implementation issues

None

Prospects for Renewable Energy Policy

The top priorities as stated by the Presidency

The Luxembourg Presidency will devote considerable attention to Energy efficiency, which remains a Union priority. They will attempt to reach political agreement on the Energy Efficiency and Energy Savings Directive, Trans-European Networks Guidelines, and on the Security of Energy Supply Directive. The Presidency will also seek to develop the Energy/Technology/Environment Paper, prepared following Ministerial discussion at the November Energy Council as a contribution to the Spring European Council discussion.

Important issues for the Scottish Executive to be dealt with by the Presidency

The Executive is working closely with the UK Government to maintain a secure and reliable energy system that is vital to our modern economy. With reference to the Presidency's consideration of the development of the Energy/Technology/Environment paper, the Executive is committed to developing renewable energy in Scotland form a range of sources. To this end we have commissioned research into the potential contribution and subsequent development of marine, biomass and hydrogen technologies. Energy efficiency and the promotion of renewable energy sources feature heavily as priorities in Intelligent Energy for Europe 2003-2006 programme. Energy efficiency is key to the Executive's efforts to reduce carbon emissions. It already has a comprehensive range of energy efficiency measures in place. It has not only increased investment in existing programmes, but made significant investment in new programmes e.g. the £20m public sector energy efficiency scheme. The Executive is funding a national Energy Study mapping energy supply and demand, due to report around Spring 2005. In December 2004, Ministers also announced the development of a new energy efficiency strategy due for completion in the Summer of 2005. The objective of the strategy is to further embed energy efficiency into the fabric of policy development across the Executive to build on current efforts and meet future challenges

Implementation Issues

The Executive remains committed to the promotion and development of renewable energy as a means of tackling the threats posed by global warming, as well as strengthening our economy. Currently around 10% of all electricity generated in Scotland is from renewable sources. The Executive has already granted approvals for projects which, when built, would be sufficient to meet our 2010 target of having 18 per cent of electricity generated from renewable sources. We will continue to work with the renewables industry and academics to ensure the development of new technologies and progress towards delivery of our 40% target in 2020.

Prospects for Enterprise, Research, Employment and Internal Market Policy

Better Regulation

Priorities as stated by the Presidency

To continue the work begun a year ago on Better Regulation. In a preliminary stage, its action will concentrate on the legislative simplification of existing EU law and on impact assessment of legislation in preparation and/or under negotiation. The Presidency will also assess the results of a pilot project on these issues and take account of work in progress at the Commission on developing an integrated impact assessment methodology.

Important issues for the Scottish Executive to be dealt with by the Presidency

The Executive welcomes the Presidency's ambition to continue the work to simplify legislation and reduce the administrative burden on business and is strongly supportive of the UK line on better regulation.

Implementation Issues

None

Lisbon

The March 2005 European Council will have to carry out the mid-term review of the Lisbon process based on a Commission orientation report due out in early February. Luxembourg is keen on the Lisbon strategy, seeing it as a development of ideas they had launched themselves before Lisbon. They will emphasise the need to work on all three pillars (economic, social and environment) and not just the economic. The Luxembourg aim, which they acknowledge will be difficult, is to achieve conclusions and objectives which all can support. They hope National Action Plans, using peer pressure, will generate support in Parliaments and among ordinary citizens.

Important issues for the Scottish Executive to be dealt with by the Presidency

I will lead the Executive's interest in the review, in discussion with the other members of the Closing the Opportunity Gap Cabinet Delivery Group. We are currently developing an Employability Framework that will inform and help support the Closing the Opportunity Gap objectives which relate directly to the national priorities for tackling poverty and exclusion, including getting people back into work, improving the skills and confidence of young people and tackling health inequalities. The Framework will provide an opportunity for Scottish Ministers to drive forward action on the devolved areas of employability in Scotland and to have a closely informed influence on the direction of UK policies and programmes on benefits and Welfare to Work.

In taking forward the mid-term review of the Lisbon Strategy the Scottish Executive would also like the Luxembourg presidency to take into account the contribution that both higher education and vocational education and training has in achieving the Lisbon goal of becoming 'the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion'. Having the 'Labour Market' as one of the five key priorities in the Wim Kok report is broadly supported in Scotland. However, the Kok Report does not make specific mention of the role that VET systems play in this regard.

The development of the European Credit Transfer System for Vocational Education and Training ( ECVET) will go some way to creating transferability in Europe based on competences and learning outcomes. Scotland has already created the Scottish Credit and Qualifications Framework ( SCQF) which simplifies routes of progression within and across education and training sectors and increase the opportunities for credit transfer from different sectors including vocational to higher education. However, Scotland is keen that the development of an European Qualifications Framework ( EQF) should be over-arching and voluntary. It should not dominate the continuing work on credit frameworks at regional or national level throughout Europe. This includes the work being taken forward under the Bologna process to develop an overarching European Qualifications Framework for higher education.

Research

The initial debate on Seventh Framework R&D Priorities.

ETLLD officials have been involved with DTI counterparts in drawing up the UK response to the initial proposals from the Commission on FP7. This is a reserved matter as the Commission deals with policy on FP priorities at a member state level but there are no significant differences between the Scottish and UK positions.

Internal Market for Services Directive

This is a big and complex dossier which will probably be progressed but unlikely to be agreed as a number of Member states are seeking exemptions. There are no peculiarly Scottish aspects and the Executive will continue to work closely with the Department of Trade and Industry ( DTI) to ensure Scottish interests are represented.

JIM WALLACE

MINISTERIAL PRIORITIES FOR THE LUXEMBOURG PRESIDENCY OF THE EUROPEAN UNION

Prospects for Justice and Home Affairs

The top priorities as stated by the Presidency

The Luxembourg Presidency has presented a programme of work in which it makes clear its top priority in JHA will be to take forward work on the implementation of the Hague Programme and in particular preparation of the Hague Action Plan. We can expect an emphasis on the European Borders Agency and the need to establish that by May 2005; and progress on counter-terrorism where Luxembourg will want to work alongside the UK. There are unlikely to be new initiatives from the Luxembourg Presidency on Police and Judicial Co-operation.

The Luxembourg programme confirms that the Presidency will:

• Focus on preparing and advancing work tabled under the Dutch Presidency but in many cases leaving delivery/completion to the UK Presidency;
• Prioritise the counter-terrorism agenda working closely with the UK. The Presidency will aim to ensure that targets set in the Action Plan and various Council Conclusions are met and will press for the completion of measures; and
• Press forward with work towards a common European asylum system ( CEAS).

Important issues for the Executive to be dealt with by the Presidency

The Minister for Justice, where appropriate in conjunction with the Lord Advocate, will work to:

• Ensure that EUJHA legislation is compatible, wherever possible, with the principles of Scots criminal and civil law;
• Link EU initiatives, where appropriate, to the promotion of safer, stronger communities in Scotland;
• Contribute Scottish knowledge and expertise to the EU justice agenda; and
• Communicate the benefits of the JHA agenda to the citizen and encourage stakeholder participation in EU policy development.

Scottish Justice Ministers will aim to attend at least one JHA Council meeting during the Luxembourg Presidency, as was the case during the Dutch Presidency when the Minister for Justice attended the JHA Council on 25 October 2004.

Scottish officials will also attend Working Group meetings in Brussels as part of the UK delegation where the items being discussed are of particular interest to Scotland.

Civil Judicial Co-operation

• There will be further discussions on The Regulation on the Law Applicable to Non-Contractual Obligations (Rome II). We expect these to resume in May when the European Parliament's opinion is available. The regulation will decide which country's law would apply to resolve an international dispute concerning a non-contractual obligation - anything from a negligence action arising from a road traffic accident to defamation, to a claim based on environmental pollution. The most difficult area is likely to be defamation because of the need to balance freedom of expression against protection of reputation in a way which is acceptable across Europe. Discussion of different options within this Group has however so far been alive to these concerns and constructive.
• There will be further discussions on the European Order for Payment Procedures which completed its first reading under the Dutch Presidency. This is a proposal for a simplified procedure for obtaining and enforcing a judgment in uncontested claims and the draft applies to both cross border and internal cases. Whilst the Scottish Executive fully supports this proposal in so far as it relates to cross border cases, it has, along with the other jurisdictions in the United Kingdom, sought to restrict it to cross border cases only, questioning the treaty base and need for the proposal as it presently stands. There are already similar procedures in each of the UK jurisdictions which are simple and bring about speedy judgements in uncontested claims.
• There will be further discussions on the Directive on Certain Aspects of Mediation in Civil and Commercial matters towards a first examination of the text.
• The Commission may present a Green Paper on Rome III on the law applicable to divorce during the Luxembourg Presidency. This is likely to discuss the possibility of common European rules regulating which country's law would apply to a "multinational" divorce. At present, courts in the UK jurisdictions do not apply foreign law in family cases, so this dossier will require to be closely monitored.
• A Green Paper on Wills and Succession may be published during this period and the Executive will be submitting a response. The Paper is expected to look at issues such as mutual recognition of the title of executors to administer estates, and common rules on which country's law should apply to succession in an international case. This is a very complex area which has already been the subject of unsuccessful attempts at worldwide regulation. An EU solution would be difficult to arrive at, but would add value. In so far as the paper also deals with issues of matrimonial property, it may pose problems for UK jurisdictions, which do not have sophisticated "common property" regimes like those on the Continent, but instead focus on divisions of assets at the time of divorce.

Criminal Law

• The Executive is involved in discussions with the Home Office in the negotiations in Brussels on the Framework Decisions on the European Evidence Warrant and on Certain Procedural Rights in Criminal Proceedings. The European Evidence Warrant is an order which would be issued by a judicial authority in one Member State to obtain evidence in another Member State, based on the principle of mutual recognition, and has implications for the way in which mutual legal assistance is provided within the EU. The Framework Decision on Minimum Standards in Criminal Proceedings will also be important as it is likely to have significant implications for Scots Law.
• Agreement is expected on a Council Decision which seeks to make limited improvements to the exchange of information from the criminal records, pending more substantive proposals expected shortly, outlined below.
• The Belgians have recently tabled a draft Framework Decision on the mutual recognition of prohibitions arising from convictions for sexual offences committed against children. This initiative will dovetail with proposals expected from the Commission, in the form of a White Paper, on the future exchange and recognition of information from criminal records, including disqualifications. It is expected that the White Paper will propose the exchange of information electronically and that there will be, as part of the general package in this area, a draft Framework Decision on the mutual recognition of criminal convictions for sentencing.
• We also expect the Commission to publish proposals for Framework Decisions on combating participation in a criminal organisation and penalties for counterfeiting.
• It is believed that the Commission will issue a communication during the first half of 2005 on jurisdictional issues, possibly in the form of a Green Paper.

Police Co-operation

During its Presidency, Luxembourg has indicated that it will work on:

• The EU organised Crime Strategy, with a new Action Plan expected in May.
• Conversion of the Europol Organised Crime Report into a threat assessment; and
• Concluding the Swedish initiative for a Draft Framework Decision ( FD) on simplifying the exchange of information and intelligence between law enforcement authorities in EU Member States. This proposal, which aims to make police co-operation more effective, has broad support from the UK, albeit a number of issues, including disclosure issues, need to be resolved. The UK will work with the Luxembourg Presidency on this initiative so it is in a position to finalise the FD before the UK Presidency. Scotland (through the Justice Department, the Scottish Drug Enforcement and the Crown Office) will continue to contribute to the UK position.

It is also expected that Luxembourg will attempt to take forward the on-going proposal for a Council Decision establishing the European Police College ( CEPOL), the secretariat of which is located in the UK, as a body of the European Union.

Asylum and Immigration

This is a key area in the JHA field with the Luxembourg Presidency focussing on working towards the creation of a common European Asylum system. Although asylum and immigration are reserved there may be implications for Scotland from some of the proposals, e.g. for legal aid, and Executive officials are keeping in close touch with the Home Office on relevant dossiers.

Implementation

Recent measures that have been agreed and are in the process of being implemented in Scotland include:

Best Practice

We are undertaking a number of measures in the order to exchange best practice with other Member States:

CATHY JAMIESON

MINISTERIAL PRIORITIES FOR THE LUXEMBOURG PRESIDENCY OF THE EUROPEAN UNION

Prospects for Education, Training and Youth

The top priorities as stated by the Presidency

Overview

Wim Kok's high-level group report identified education as one of the principal vectors for relaunching the Lisbon Strategy, whose objective is to ensure the EU becomes the most competitive knowledge-based economy by 2010. Against this background, the priorities for the Presidency are the proposal for an Integrated Action Programme in the area of Education and Lifelong Learning and the issue of the integrated learning of a subject and a language. The Presidency has chosen as its motto in this field the phrase let's learn more languages to speak a common tongue. The core ideas of mutual understanding, mobility and plurilingualism will be the common thread through the main conferences held in Luxembourg in the context of the Presidency.

The Presidency will continue work on the new " Youth in Action" Programme for the period 2007-13. Other priorities for the Presidency are to make substantial progress on the new initiative on a European Pact for Youth, to update the Open Coordination Method including the objectives pursued in terms of participation and information for young people and finally to work on the proposed structure of the national reports on participation and information, which are due by the end of 2005.

Detail

The Presidency intends to host a discussion and to adopt Council Conclusions at the February Council on the contribution of education to the achievement of the Lisbon Strategy, with emphasis on aspects that should be taken into consideration at the mid-term review of the Lisbon Strategy in 2005. These discussions will also cover the conclusions to the report of the high-level group chaired by Wim Kok.

The Presidency will devote a great deal of attention to the proposal for an Integrated Action Programme in the area of Education and Lifelong Learning. The Commission published a communication during the Irish Presidency and then concrete proposals on the internal programmes in July 2004, during the Dutch Presidency. The proposed Programme for the period after 2007 simplifies and unifies the existing Comenius, Leonardo, Erasmus and Grundtvig schemes. The general objective is to contribute through lifelong learning to the development of the Community as an advanced knowledge society. In particular, it aims to foster interchange, cooperation and mobility between education and training systems within the Community so that they become a world quality reference. Based on the work accomplished under the Dutch Presidency, the objective will be to move towards concluding the first reading.

The Presidency will lay particular stress on the issue of the integrated learning of a subject and a language.

The Presidency intends to publish Council Conclusions at the May Council based on the Commission working paper, presented in December 2004, on New Indicators on Education and Training. This paper suggests an incremental approach to better quality indicators in the following areas - key competencies, effective investment, ICT, mobility, adult learning, vocational education and training, languages, teachers and trainers, social inclusion and active citizenship. These are designed to promote good practice and to allow for an objective assessment of the progress made towards key Lisbon objectives.

The Presidency will continue to focus on the contribution which education and training can make to the Lisbon agenda under the Open Method of Coordination and to economic reform and social cohesion in particular. Work will begin on the preparation of a report to the 2006 Spring European Council on the implementation of the detailed work programme 2010 for education and training systems agreed at Barcelona in Spring 2002.

The Presidency will continue work on the " Youth in Action" programme for the period 2007-13, the aim of which is to develop cooperation in the field of youth in the European Union. The general objectives of the Programme include promoting young people's active citizenship and developing solidarity among young people. The Presidency intends to host a general orientation debate on the Programme at the Council in May. It is not, however, likely that a Common Position will be reached on the Programme during this Presidency for two reasons. First, amendments will not have been received in time from the European Parliament and, second, as a result of ongoing negotiations on the Financial Perspective.

The Presidency also intends to devote time and energy to the European Pact for Youth. This Pact was proposed by France, Spain, Sweden and Germany at the European Council in November 2004. The Pact suggests that the needs of young people should be emphasised more in employment and education policy. The Pact is intended to give renewed impetus to the diagnosis and approach of the Commission's 2001 White Paper on Youth. The Presidency intends to host an exchange of views and to adopt Conclusions on the Pact at the Council in February.

The Presidency will seek agreement on three draft Council Resolutions on the Youth Open Method of Coordination. These will be a Resolution on Information for young people, a Resolution on Participative Democracy and a Resolution on the Evaluation of the Open Method. The Presidency hopes to adopt all three of these resolutions at the May Council.

Important issues for the Scottish Executive to be dealt with by the Presidency

The EU does not have competence over education, training and youth policies. However, the open method of coordination is an effective tool for cooperation at the EU level in a number of mutually advantageous areas. The Executive will continue to monitor how the recommendations of the Presidency or the Commission impact on, or agree with, existing devolved education, training and youth policies, and current and future priorities in education, training and youth.

The UK broadly supports the new Integrated Lifelong Learning programme 2007-2013. The overall objective of the integrated programme is to contribute, through lifelong learning, to the Lisbon goal for the EU to become an advanced knowledge based society with sustainable economic development, more and better jobs and greater social cohesion. The UK is of the view that these goals are best promoted through the exchange of best practice and co-operation and mobility between education and training systems within the EU; whilst respecting national diversity. The UK also supports the new programme being more decentralised, flexible and less bureaucratic. The Scottish Executive, through the DfES in London, will furthermore seek to ensure increased support for disadvantaged groups and better monitoring and evaluation in the new programme.

The Commission proposal for new indicators in education and training aims, in the longer term, for better quality indicators and benchmarks in education and training to monitor the attainment of the Lisbon goals. The Executive supports an incremental approach to this proposal and has already made an important commitment in 'Ambitious Excellent Schools':

"to benchmark Scotland's performance against international standards, particularly through the work of the OECD, as a basis for bringing about further improvement in performance."

Accordingly, the Executive will pursue Policy Benchmarking Seminars in Scotland House, Brussels, to create common standards with international counterparts to measure performance and combat common challenges. Bilateral agreements with France, Bavaria and France are also important in this regard.

The Executive will continue to promote plurilingualism in schools through our commitment that all students should be entitled to experience learning a modern language from primary school and through the introduction of a national language strategy.

As regards youth, the Executive is committed to encourage the active participation of young people through the development of a national strategy for youth work. Discussions with stakeholders are progressing and broader consultation is anticipated over the next few months.

Implementation issues

There are no implementation issues for the above policies.

PETER PEACOCK

MINISTERIAL PRIORITIES FOR THE LUXEMBOURG PRESIDENCY OF THE EUROPEAN UNION

Prospects for Health Policy

Top priorities as stated by the Presidency

The Luxembourg Presidency will focus on the new Health Strategy (once adopted by the Commission) and to developments in health care, in particular:

• The International Health Regulations (in collaboration and consultation with others outwith the Community, including the UN and WHO);
• HIV/ AIDS

Important issues for the Executive to be dealt with by the Presidency

The most important issues to the Executive that will be dealt with by the Presidency are:

International Health Regulations

In the UK, the requirements of the International Health Regulations ( IHR) are reflected in Port Health regulations made under public health legislation. Because of their focus on only three diseases, the IHR are limited in their utility, and lack the flexibility to respond to current public health threats, such as SARS and Avian Flu. A process has therefore been in train for some time to modernise the regulations and make them fit for 21 ^st century purposes. The English Department of Health have been leading the UK response, to which the Scottish Executive has contributed.

Health Strategy

The Health Strategy is of importance to all member states. The Scottish Executive will contribute to the UK's participation in the development of the Strategy, which is led by the English Department of Health.

Obesity

The Scottish Executive is committed to improving health and tackling health inequalities. Obesity is a particular concern. Obesity has been shown to be more common in the UK than most European countries, and Scottish children and adults are more likely to be obese than their counterparts in England. The Executive's policies on food and nutrition and physical activity form the basis of our approach to tackling the rise in obesity and Scotland's burden of preventable disease. This combined multi-sectoral approach has been endorsed by the World Health Organisation and is in line with its global strategy on diet, physical activity and health.

The Executive acknowledges that there is a need for more rigorous evidence on what are the most effective interventions for obesity at a population level. Scotland's policies for healthy living are based on good evidence as part of a holistic approach to the health of individuals and populations in our society. Our policies consider not just interventions based on the individual, but also consideration of the environment which individuals and communities experience around them and how far they encourage and support healthy living, including the prevention and control of obesity. Our preventative approach is underpinned by national dietary targets and physical activity targets as well as targets for reducing preventable ill health and for health inequalities. All of these are monitored.

HIV/ AIDS

Though international relations, including health issues and the provision of overseas aid are reserved, the Executive fully supports the efforts of the UK government to contribute to the global prevention effort.

Tobacco

The Executive notes that the Commission will not be bringing forward any legislation on either tobacco or on alcohol/alcohol abuse during the Luxembourg Presidency. The Executive will be bringing forward legislation to ban smoking in public places during this time.

Avian influenza

The Executive contributes to UK wide groups working in this area, such as the Interdepartmental Group on Infectious Diseases

Vitamins, Minerals and Food additives

The Executive contributes to work in this area, which is led by the UK wide Food Standards Agency.

Paediatric Medicines

The licensing of medicines is reserved, but the Executive supports the position of the Medicines and Healthcare products Regulatory Agency ( MHRA), the UK medicines regulatory authority, which welcomes the EU legislation and will work with stakeholders in order to achieve the best outcomes for children, carers and health professionals. In the meantime, the MHRA is taking some steps to encourage research in the development of medicines for use in children and to improve the information available on such use.

Implementation issues

There are no current implementation issues for Health.

ANDY KERR

MINISTERIAL PRIORITIES FOR THE LUXEMBOURG PRESIDENCY OF THE EUROPEAN UNION

Prospects for the Environment Policy Area

Top priorities as stated by the Presidency

During the course of its Presidency, Luxembourg will focus on 5 priority topics. Some of these will be priorities also for Scotland, as below.

(i) 2005 Spring Council / Review of the EU Sustainable Development Strategy

(ii) Groundwater Directive;

(iii) LIFE + ;

(iv) INSPIRE.; and

(v) Pollutant Release and transfer Register ( PRTR)

In addition, the Presidency hopes to conclude work on directives concerning the management of bathing water quality and on the sulphur content of marine fuels. Further progress will be made on the proposed Regulations on REACH (Registration, Evaluation and Authorisation of Chemicals) and on establishing EU mid- and longer-term climate change strategies and targets.

The Luxembourg and UK Presidencies have together published an Operational Programme for 2005. In the Programme the specific environment topics mentioned above are set in a broader strategic context based in the 6th Environment Action Programme and the seven Thematic Strategies that are expected to emerge for consideration, probably during the UK Presidency. That broader approach includes also the Environment Technologies Action Plan and the Aarhus Convention commitments and proposals on environmental governance.

Important issues for the Executive to be dealt with by the Presidency

These include some presidency initiatives together with other agendas that the Executive is pursuing throughout the preparation and negotiation processes.

2005 Spring Council / Review of the EU Sustainable Development Strategy

Sustainable Development is a commitment for the Scottish Executive which overarches all other policies. The Scottish approach is therefore well attuned to the similar cross-cutting approach found also at UK and EU levels. The Executive aims to hold a public consultation over the summer 2005 on development of the Scottish strategy.

The current EU sustainable development strategy was adopted by the Gothenburg European Council in 2001. It highlights four priorities:

• combating climate change,
• sustainable transport,
• addressing threats to public health and
• managing natural resources more responsibly - and outlines a few objectives, targets and actions in relation to each.

The EUSD Strategy is currently being revised following a consultation exercise by the Commission in 2004, to which the UK Government contributed along lines developed with the Devolved Administrations.

The 20 December 2004 Environment Council adopted Council conclusions inviting the Commission to bring forward for the 2005 European Spring Council a comprehensive stock-take of progress since Gothenburg; an analysis of the key findings of the consultation exercise and policy options for a revised EU strategy, with a view to the latter's being adopted later in 2005 (in practice, under the UK Presidency).

The economic dimension of the SD strategy at EU level is found in the broad Lisbon agenda - environment as an economic opportunity, 2000 to 2010. In Scotland we are looking to promote policies focused more on sustainable consumption and production.

The EUSDS is supported by the 6th Environmental Action Programme, which shares its four environmental issues for improvement, bulleted above. Among the measures proposed by the 6th EAP to address these are the seven Thematic Strategies, covering:

• air quality,
• soil protection,
• pesticide use,
• the marine environment,
• waste prevention and recycling,
• sustainable use of natural resources, and
• the urban environment.

Commission communications, and possibly proposals for legislation, on those topics should begin to emerge towards the end of the Luxembourg tenure but discussion is likely to commence under UK's presidency. Some of those strategies will be important for Scotland, especially where future action really needs to be related to the circumstances and needs of specific regions. Strategies on soil, marine and natural resources could be in that category.

Groundwater Directive

Scotland's interests in this dossier lies in the crucial need to reflect the diverse nature of different groundwaters across the EU, not least because Scotland takes only 5% of its drinking water from groundwater sources.

During negotiations over the Water Framework Directive in 2000, agreement was reached over the objectives for groundwater protection, but not over how they should be addressed in terms of detailed measures. (The UK wanted a risk-based approach; some other Member States wanted a "one size fits all" approach). The Commission published, in September 2003, a proposal for a new groundwater "daughter" directive intended to provide these measures.

This proposal will replace the existing Groundwater Directive (80/68/ EEC). The proposal covers the right areas, and generally omits common standards, but has needed a fair amount of work to develop it into a practicable measure.

The UK has had a strong input into the discussions and generally supported the Dutch Presidency's drafting which offers, on the whole, a practical and risk-based approach to groundwater protection. Germany has argued for more prescriptive measures (notably EU-wide groundwater standards). The European Parliament's Environment Committee has commenced consideration with a view to a First Reading in March. There will be pressure from the rapporteur and some MEPs for common standards for groundwater.

Financial Instrument for the Environment ( LIFE Plus)

LIFE funding is important to Scotland because of past successes in attracting substantial investment. The Executive wishes to ensure that new proposals maintain or improve that opportunity as far as possible.

The Commission has proposed a new model ( LIFE Plus), replacing the existing ' LIFE Environment' and ' LIFE Nature' funds for the period 2007-2013. It is proposed that most future EU environmental funding would be rearranged under newly redefined mainstream budgets. The consideration of projects from 25 Member States by the Commission would move to the Commission's consideration and agreement of MS programmes. The new mainstream funds would concentrate upon underpinning development and implementation of Community environment policy and legislation. Hence it would support sustainable development in general and the 6th Environmental Action Programme objectives of:-

• combating climate change
• halting the decline of biodiversity
• improving the quality of life and
• ensuring the sustainable use and management of natural resources.

A small proportion could go towards dissemination and awareness-raising on environmental issues. The 'innovation' priority of the current LIFE Environment fund could go to an EU Competitiveness and Innovation programmes. Funding for Natura 2000 and biodiversity more generally may still continue to be funded but with some rearrangement of funding within the structure, perhaps from the current Rural fund.

This proposal amounts to a major redirection of EU mainstream resources and is hence closely linked to the outcomes of the Financial Perspectives for the EU for the period 2007-2013. The work is at an early stage. A public consultation on the EU proposal initiated by DEFRA is currently running in Scotland also.

Hazardous substances

Although partly reserved (product standards, etc), this topic is significant for Scottish industry and environment.

The Presidency hopes to take stock of the Regulation of REACH (Registration, Evaluation and Authorisation of Chemicals), possibly with a policy debate during the June Environment Council, based on a questionnaire prepared beforehand. This proposal was adopted by the Commission in October 2003 and is a substantial legislative reform, requiring Member States and the European Parliament to tackle economic and environmental concerns in tandem. It is still in the 1st reading stage, with quite a lot of work already envisaged within the European Parliament at committee level, starting with a stakeholder conference between the committee on the environment, public health and food safety, the committee on industry, research and energy, and the committee on internal market and consumer protection on the 19th January. A first reading position by the Parliament is not expected until the latter half of this Presidency.

Bathing Waters

Political agreement on the proposed Revision of the Bathing Water Directive was initially reached at the June 2004 Environment Council, subject to further jurist/linguist work. Due to delays in translation, a Common Position was finally agreed at the December 2004 Environment Council. The Common Position will now head back to the European Parliament, for a second reading. Final agreement may be reached, but it might be for the UK Presidency to wrap this one up.

This is an important Directive for Scotland because the proposed new standards equate to guideline standards of the present Directive, which means that only 65% of Scottish bathing waters would pass this new minimum standard. The Scottish Executive has worked hard with DEFRA and with MEPs to ensure that the agreed Common Position includes the provision for discounting and management flexibility.

Climate Change

The Executive is committed to tackling climate change and to making an equitable contribution to the UK Kyoto target which, in turn, contributes to the EU Kyoto target. We are working with UK Government to consider EU strategies to advance the climate change agenda.

The Kyoto Protocol enters into force on 16 February 2005. The Environment Council on 10 March will focus on preparing for the Spring Council, particularly on climate change. The Presidency is keen to establish EU mid- and longer-term climate change strategies and targets, and for the Community to start considering what should be done post-Kyoto (i.e. from 2012 onwards). Preparations for the Spring Council will be aided by the expected Commission costs/benefits paper on targets.

Pollutant Release and Transfer Register ( PRTR)

The objective of the proposed Regulation for a European Pollutant Release and Transfer Register ( PRTR) is to enhance public access to environmental information through the establishment of a coherent, integrated Europe-wide PRTR. This should contribute to the reduction and prevention of pollution, deliver data to policy makers and facilitate public participation in environmental decision making.

The comprehensive PRTR was preceded by the introduction of the European Pollutant Emission Register ( EPER) under the IPPC Directive in 1996. The UN- ECE Protocol on PRTR was then signed in May 2003. In order to enable ratification of the PRTR Protocol, and ensure a co-ordinated and consistent way forward, the EPER will be replaced with the PRTR proposal.

EPER already implements many of the key elements of the PRTR Protocol such as harmonised reporting rules, public accessibility by electronic means, broad coverage of sources and polluting substances. The obligations of the PRTR Protocol extend beyond the scope of EPER mainly in terms of facilities included, substances to report (from 50 to 90), coverage of releases from diffuse sources, public participation and periodicity of reporting. It is important to note that under EPER the requirement to report rested with Member States but under PRTR the burden is fully on industry to report to competent authorities. However, industry will already have been reporting to the Environment Agencies Pollution Inventories, which are more comprehensive, for 3 years before PRTR comes into effect.

The first reporting year for PRTR is 2007 and Member States have 15 months to collate information. For future years they will be required to report 12 months after the end of the reporting year.

SEPA has developed a Scottish Pollutant Release Inventory ( SPRI) and is expanding its coverage of substances and industrial activities from EPER requirements to all those required under PRTR. SEPA is also going beyond the requirements of the PRTR to align SPRI with the Pollution Inventory for England and Wales.

INSPIRE (Infrastructure for Spatial Information in Europe)

The proposal for a directive would aim to improve the availability of geographical information for environmental policy making and is a priority of the Luxembourg Presidency.

The proposal would require Member States to put geographical information on a publicly accessible electronic network and, eventually, to harmonise it. The Commission wants INSPIRE to provide relevant geographic information for the making, implementation, monitoring and evaluation of environmental policy. It would cover administrative boundaries, road networks, hydrography, population, diseases, species, land cover, habitats. It could be broadened to other policy areas to ensure the continuing integration of environmental concerns into other policy areas. It would collect what information is already available on the environment and aim to make it more accessible.

Prospects for the Food and Agriculture Policy Area

Top Priorities as stated by the Presidency

The overarching aim of the Luxembourg Presidency is to continue to work towards "a European model of agriculture which is competitive, sustainable and multifunctional, including less favoured areas". Within this framework, the priority areas are listed as agreement on a new Rural Development Regulation, reform of the sugar sector, agreement on CAP financing and progress on the organic farming Regulation. Modifications to the wine and fruit & vegetables regimes will be considered. Improving animal health and welfare is also on the agenda.

Important issues for the Executive to be dealt with by the Presidency

Rural Development

The current rural development programming period comes to a close at the end of 2006 and a new Rural Development Regulation ( RDR) will be needed from 1 January 2007. The Commission has published its initial proposals for a new regulation and consideration of these began under the Dutch Presidency. Discussions will continue under the Luxembourg Presidency. Luxembourg hopes to conclude agreement on the RDR by June 2005, however the timing of an agreement and budget for rural development will depend on when and how the financial perspective negotiations are concluded.

The main objectives of the proposed new RDR are to promote (i) competitiveness and restructuring, (ii) environmental improvements and (iii) diversification.

Key issues for Scotland will be:

• The future distribution of EU funds between Member States. Currently the UK, and therefore Scotland, receives a very small allocation and is pressing for a more equitable distribution of the available funding;
• Adequate flexibility to use funds to meet national priorities. The new RDR will be the outlet for the modulated funding diverted from direct (Pillar 1) payments to farmers and will provide the platform for the development of Land Management Contracts in Scotland as envisaged in AForward Strategy for Scottish Agriculture. It is important that we are not unduly constrained in the way we use this funding if Scotland is to derive maximum benefit;
• Future support for less favoured areas. Currently 85% of Scotland's agricultural land is classified as less favoured area ( LFA) and farmers receive additional financial support as a result. The Commission has proposed a review of the eligibility criteria for LFA designation within Member States which may have implications for Scotland. Further details on designation criteria are expected from the Commission in February 2005 and we will be looking closely at these in consultation with the LFA Stakeholder Group that has been set up;
• Future support for forestry especially in relation to new planting of agricultural land.

The Commission is also working on the EU Rural Development Strategy which will give focus to national and regional programmes. This will be negotiated within the UK Presidency. A parallel proposal on financing of agriculture, which creates the single fund for rural development, will also be progressed during the Luxembourg or UK Presidency.

CAP reform

Discussion on changes to the sugar regime will probably run on into the UK Presidency and will continue to be controversial but of limited interest in Scotland. The Commission is likely to propose a substantial cut in support price for sugar and further reform in 2008. More significant for Scotland may be consideration of the Common Market Organisation in fruit and vegetables which will be pertinent to Scottish growers. There is no proposal yet but any which emerges will need to be carefully scrutinised.

Animal health and welfare

Current indications are that a number of proposals will come forward on animal health and welfare and related matters during 2005. We expect the Luxembourg Presidency to give priority to a Commission proposal updating animal health provisions relating to avian influenza and for this to continue into the UK Presidency. The Commission is also expected to propose during the Luxembourg Presidency a revision of the current legislation on the prevention and control of certain diseases in aquaculture species. A proposal is also expected on welfare standards for broiler hens (meat chickens) in the spring which means that the focus of the negotiations is likely to be during the UK Presidency. The proposals will tighten welfare provisions on density and the cage environment for units of over 200 birds.

Beef Marketing Issues

During 2005 the UK Government and Scottish Executive will be pressing hard to achieve a lifting of the 1996 EU controls restricting UK beef exports so that we can export beef born after August 1996 freely in Europe. Key milestones in the process will be the recognition of the UK as a BSE medium risk status country and implementation of the UK decision to replace the over thirty month rule with the EU system of testing all over-thirty month animals for BSE, as is in operation throughout the rest of Europe. Of critical importance will be a visit of the Food and Veterinary Office in June which will assess whether the UK's cattle traceability and epidemiological systems now fully comply with EU requirements. In parallel with this timetable, we will discuss with the Commission the shape and duration of an OTMS successor scheme to dispose of cattle born before August 1996 (which will remain excluded from the food chain).

Organic Food and Farming

Commission proposals to improve the regulation of organic produce are awaited. These are likely to be based, at least in part, on the European Action Plan for Organic Food and Farming with the intention of achieving greater clarity and further harmonisation of organic standards.

Implementation Issues

The main implementation issue for the Executive will continue to be completion of preparations for payment of the new Single Farm Payment Scheme and related issues such as the National Reserve and the beef national envelope.

Prospects for the Fisheries Policy Area

Framework of priorities for the Luxembourg Presidency

The work of the Luxembourg Presidency will be guided by the priorities and strategies outlined in the three-year joint Presidency programme, which began under the Irish Presidency in January 2004 and covers all EU Presidencies until the end of the Finnish Presidency in December 2006.

The joint Presidency programme focuses on:

Of these high-level priorities, it is the new financial framework and the continuing modernisation of fisheries policies that are most likely to shape and drive the Council's fisheries business during the Luxembourg Presidency.

These are both reflected in the Luxembourg and United Kingdom Presidencies' joint operational programme for 2006: this programme specifies preparations for the new financial framework of the EU in the fisheries policy area through the Presidencies' every effort to reach an agreement on the new European Fisheries Fund ( EFF). The programme also specifies the modernisation of fisheries policies through further reforms of the Common Fisheries Policy ( CFP), including efforts to make progress on various recovery plans, stock management plans, environmentally friendly technical conservation measures and fisheries agreements with third countries. Other fisheries policy reforms will be pursued through the two Presidencies' joint efforts to simplify fisheries legislation and to improve fisheries control and inspection, including the establishment of a Community Fisheries Control Agency ( CFCA), and through the active contribution of Regional Advisory Councils.

The three year presidency programme includes a focus on the EU's global role, and the Luxembourg Presidency's own statements also note the new responsibilities arising from an increasing importance of the EU as a global player. This focus on global responsibilities may mean that the Luxembourg Presidency will introduce unforeseen business in the fisheries policy area in order to supplement the EU's response to the December 26 Indian Ocean tsunami, not least because the EU operates several fisheries partnership agreements in the Indian Ocean.

As is normal, the Luxembourg Presidency will also inherit responsibility for progressing all of the incomplete business of portfolios left over from the preceding (Netherlands) Presidency including, in the area of fisheries policy and in addition to those issues already noted, specific proposals for a regulation protecting the coral reefs around the Azores and Madeira and the introduction of changes to the catch documentation scheme for Dissostichus sp. (Antarctic Toothfish, or Chilean Sea Bass).

During the Luxembourg Presidency, much of the work in the fisheries policy area will continue to be handled by arrangement with the outgoing Netherlands Presidency.

The top priorities as stated by the Presidency

Luxembourg has provided a statement of its own Presidency priorities and a separate statement of the major issues to be dealt with during its Presidency. These additionally focus the Presidency's high level work on the completion of the internal market and the stability and growth pact, neither of which are likely to add focus to the fisheries policy area.

In fisheries itself, the Luxembourg Presidency's own statements concentrate on the development of sustainable fishing through conservation measures, on the establishment of the CFCA and on seeking agreement for EFF.

Important issues for the Scottish Executive to be dealt with by the Presidency

The most important issues for the Scottish Executive that have been identified as priorities to be dealt with by the Luxembourg Presidency are the establishment of CFCA, further progress towards agreement on EFF and simplification of the CFP rules. The first two are continuations of work on portfolios established under earlier Presidencies; prospects for both portfolios have previously been reported to the Committee.

The Commission's proposal for the establishment of CFCA was debated in Council last October. A wide range of comments on the Commission's proposal were made: the United Kingdom argued, in sum, that the agency should be cost-neutral, and that it should only co-ordinate, not direct, the fisheries control efforts of individual Member States. It is not clear that the Commission's current proposal would meet these requirements. Adoption of an agreed regulation is scheduled for March 2005, but these concerns, and a wide range of others, were expressed by many Member States in Council, which suggests that substantial work at the official level is still required to progress the establishment of CFCA, and that it is unlikely to be agreed under the Luxembourg Presidency.

The Commission's proposal for EFF was also debated by Council last October. Significant progress had been made in working groups, but the full agreement will now require broader, budget-based discussions. A further policy debate, together with a related presentation to Council by the Commission - concerning a major portfolio focused on support measures for the implementation of the CFPnot covered under the proposal for EFF - is scheduled for Council in April 2005, with a further state of play report to Council by the Commission scheduled for June 2005 on EFF. Technical discussion of both these portfolios will very probably continue into the United Kingdom's Presidency.

The Commission has not yet tabled its proposal for a simplification of the CFP rules, and much progress cannot be expected until after the relevant policy debate in Council, scheduled for April 2005. Previous communications from the Commission on this subject, and the various work undertaken by the earlier Spanish, Danish, Greek, Italian, Irish and Dutch Presidencies all suggest that the Commission's proposal will focus on data collection requirements, the numerous regulations for technical conservation measures and the promotion of environmentally friendly fishing methods.

Other issues of importance for the Scottish Executive to be dealt with by the Luxembourg Presidency include a review of the basic regulation for deep water fisheries, which is scheduled for the end of June 2005, and the overdue report from European Commission, Council and Parliament into access to biologically sensitive fishing areas (including the ' Shetland Box'), which is now scheduled for discussion in June 2005.

Currently unscheduled developments on issues of importance for the Scottish Executive include the establishment of an effort management system for Northern Shelf Monkfish, the establishment of administrative sanctions for the 120mm North Sea demersal fisheries, continuing negotiations with the Russian Federation over management of the Rockall Haddock fishery, continuing negotiations with Norway over long term management of the joint North Sea stocks (including in 2005, cod and monkfish), continuing negotiations with all the relevant Coastal States over the blue whiting and atlanto-scandian herring fisheries, and further development in the North East Atlantic Fisheries Commission of agreed effort reduction for the international deep water fisheries.

It is anticipated that many of these important issues will be handled during the Luxembourg Presidency, but only bilaterally with the Commission, or with other interested Member states, or at the technical expert level, or at the level of official working groups. They will not all require the full attention of Ministers in Council during the Luxembourg Presidency.

Detailed draft agendas

The draft agendas for meetings of the Agriculture and Fisheries Council are normally subject to substantial revision, but the full business of Council under the Luxembourg Presidency, as it is currently envisaged for the fisheries policy area, is described below.

Fisheries business is scheduled to be conducted in three meetings of the Council: 14 March (in Brussels), 26 April and 20-21 June (in Luxembourg):

Presentations by the Commission:

Policy Debates by Council on:

Adoption of Council regulations on:

Agreement of Council Conclusions on:

ROSS FINNIE

MINISTERIAL PRIORITIES FOR THE LUXEMBOURG PRESIDENCY OF THE EUROPEAN UNION

Prospects for the Communities Policy Area

The top priorities as stated by the Presidency

Progressing the Lisbon Agenda of Social, Economic and Environment Reform, and the Mid-Term Review of the Social Policy Agenda.

Important issues for the Scottish Executive to be dealt with by the Presidency

The top priorities for the Executive will be:

These priorities will be particularly important for their contribution to our Closing the Opportunity Gap approach to tackling poverty and deprivation in Scotland.

Mid Term Review of the Social Policy Agenda

EU Councils since 2000 have agreed " to make a decisive impact on the eradication of poverty and social exclusion by 2010." The EU Social Policy Agenda 2000-2010 is currently undergoing a mid term review, and new legislative proposals and initiatives for the period 2006-2010 will be presented to the Spring European Council in Brussels, 22-23 March 2005, for adoption.

Priorities for 2006-2010 are likely to centre on increasing labour participation, skills training, increased mobility of persons between member states, and anti-discrimination. These priorities are well aligned with our new Closing the Opportunity Gap and Equality priorities, and are likely to reinforce the conclusions of the mid-term review of the Lisbon agenda.

Mid-Term Review of the Lisbon Agenda

The Lisbon European Council set out its agenda based on the ambition of making the EU "the most dynamic and competitive knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, and respect for the environment by 2010". The mid-term review of the Lisbon Agenda is due under the Luxembourg Presidency.

Informed by the Kok report prepared by a high level expert group, a European Parliament report on progress is expected in early February, and conclusions will be presented at the Spring Council in March.

The Deputy First Minister & Minister for Enterprise and Lifelong Learning will lead the Executive's interest in the review, in discussion with the other members of the Closing the Opportunity Gap Cabinet Delivery Group, which I chair. The Executive supports the UK position on employment as the best route out of poverty, and we will monitor the outcomes of the discussions for their relevance to the Closing the Opportunity Gap objective of increasing the chances of sustained employment for vulnerable and disadvantaged groups, and for the Employability Framework that we are currently developing.

Progress

The Presidency hopes to achieve agreement on a text for PROGRESS, a community programme for employment and social strategy, at the June Council. This is likely to replace existing programmes for funding action at European level on five themes:

1. Employment- supporting the implementation of the European Employment Strategy;
2. Social protection and inclusion- supporting the open method of coordination in this field;
3. Working conditions- supporting the improvement of the working environment and conditions, including health and safety at work;
4. Antidiscrimination and diversity- supporting implementation of the principle of non-discrimination and promoting mainstreaming in EU policies;
5. Gender equality- supporting implementation of the principle and promoting mainstreaming in EU policies.

The Executive welcomes the proposals, and will seek to ensure that Scotland maximises its benefit from the programmes, which are intended to run from January 2007 to December 2013.

Gender and Equality

The Commission intend to propose the establishment of a European Gender Institute, to serve as a technical support to the European Institutions and the Member States for developing gender equality policies, providing objective, reliable and comparable information and data, as well as methodological tools to ensure better monitoring of the implementation of existing policies. The Executive welcomes the positive contribution this institute should make to mainstreaming gender equality across the Member States.

A revised proposal will be put forward on Implementation of the Principle of Equal Opportunities and Equal Treatment of Men and Women in Matters of Employment and Occupation. The Executive agrees with the UK government's support of this proposal, which aims to clarify existing legislation and bring texts together while maintaining the legal meaning, and looks forward to a Committee report in April.

Preparations for the UK Presidency

Though not involving the current Presidency, the Executive will be busy preparing for events to be held by the UK under its Presidency from July to December 2005.

We are working with the UK Government, local authorities and a range of inclusion stakeholders on preparations to host a Round Table on Inclusion, and meetings of the EU Employment and Social Protection Committees in Glasgow and Edinburgh. These events begin on the annual United Nations International Day for the Eradication of Poverty, 17 ^th October 2005, and will bring together European ministers, government officials, elected representatives, non-governmental organisations, and people in poverty together to share best practice in social inclusion and employment policies, in addition to feeding into the UK National Action Plan on Social Inclusion 2006. The events will also offer the Executive an important opportunity to share its Closing the Opportunity Gap approach to tackling poverty and disadvantage with an international audience.

MALCOLM CHISHOLM

MINISTERIAL PRIORITIES FOR THE LUXEMBOURG PRESIDENCY OF THE EUROPEAN UNION

Prospects for Cultural Policy Area

The top priorities as stated by the Presidency

The Luxembourg Presidency will as a priority, continue the development of plans for 2 funding programmes, Culture 2007 and Media 2007, proposals for which emerged during the Dutch Presidency. Media 2007 will replace the current Media Plus programme, which funds film and media. The Commission wishes this new programme to target the media industry through training as well as promotion and distribution of works. Culture 2007 is the successor to Culture 2000; it will continue the theme of supporting projects involving partnerships between EU Member States.

Regarding the European Capital of Culture ( ECOC) programme, the Presidency recognises the need for the current proposal to be agreed as soon as possible. This proposal focuses on the role of the selection panel, the selection procedure and monitoring of progress once cities are designated as Capital of Culture. The Presidency will also consider a proposal to triple the EU funding for each ECOC to €1.5million/city in the Culture 2007 proposal.

Other priority initiatives flowing from the culture work plan agreed during the Dutch Presidency include:

In addition, the Presidency will take forward negotiations in relation to the UNESCO Draft Convention on the Protection of Cultural Diversity and Artistic Expression.

Education, Youth and Culture Councils will take place under the Luxembourg Presidency on 21 February and 23-24 May.

Ministers from several Member States have proposed the creation of a Cultural Charter for Europe. On 26-27 June there will be an informal meeting of Culture Ministers in Luxembourg, at which this proposal is likely to be discussed.

Important issues for the Scottish Executive to be dealt with by the Presidency

In terms of the Culture 2007 proposals, the Executive welcomes in principle the intentions of the Commission to ensure that EU work in the culture arena makes a fuller impact through strategic projects which are more effective and longer-lasting. We note that continuing negotiations on the programme proposals will examine the scope for some flexibility on project size to help accommodate smaller operators. We acknowledge this opportunity; our interest is in ensuring that organisations in Scotland are able to benefit from the new programme.

We welcome the opportunities presented by the Media 2007 programme for Scottish filmmakers to develop their work through co-production, training, and access to European audiences.

Given its own economic priorities, the Executive has a clear interest in discussions centring on the role of culture and creativity in achieving the Lisbon objective target, which aims, by 2010, to make Europe the most competitive knowledge economy.

Implementation Issues

In principle, we are in favour of initiatives which can assist in the international mobility of collections - to afford people in the UK access to international collections and to enable our own museums and galleries to showcase their fine collections overseas. Scottish institutions regularly stage excellent shows of work, compiled with loans from across the world. This is achieved within existing arrangements. However, we await with interest the report of the Department for Culture, Media and Sport's Working Group on International Mobility of Collections, on which Scotland is represented, which will be presented to the Education, Youth and Culture Council at its meeting on 23-24 May 2005.

We remain supportive of moves to increase mobility of artists. Indeed our Co-operation Agreements with European partners (eg. the Region of Tuscany) seek to promote bilateral exchanges between our cultural bodies and to identify opportunities for the exchange of skills, knowledge and expertise between organisations and between practitioners.

Development of the screen industries in Scotland is a Partnership Agreement commitment. We also have a stated commitment to creating the conditions that allow creativity to flourish in Scotland and to ensuring that our cultural sector is a key driver in achieving this, and will be happy to share our development experiences with European partners.

Prospects for Tourism Policy Area

Tourism is not currently within the competence of the EU (although it does feature to a degree in the Constitution), but the EU has a small Tourism Unit within DG Enterprise. Its Communication on Tourism recognises the economic importance of tourism to Europe, and the importance of its sustainable development. The EU Tourism Unit organises an annual European Tourism Forum, which my officials attend in order to keep abreast of tourism developments in other member states.

PATRICIA FERGUSON

MINISTERIAL PRIORITIES FOR THE LUXEMBOURG PRESIDENCY OF THE EUROPEAN UNION

Prospects for Telecommunications

The top priorities as stated by the Presidency

In 2005, efforts will be intensified to ensure that e-communications serve as a key driver of European competitiveness. These include ensuring the effective implementation of the regulatory framework for communication networks/services and considering a possible follow-up to the current e-Europe Action Plan, which runs until the end of 2005. In addition, agreement will be sought with the European Parliament on the Safer Internet Plus and eContent Plus programmes ( e.g. dealing with SPAM and unsolicited e-mails) and consideration will be given to a proposal to amend the Directive on Universal Services.

Important issues for the Scottish Executive to be dealt with by the Presidency

It is expected that there will be discussions (potentially presented to the Luxembourg Telecoms Council in June - and adopted during the UK Presidency in Dec 2005) about proposals for the 2006-2010 e-Europe Action Plan. This plan will set out the aspirations and next steps to build an Information Society. It will build on current EU policy which focuses on the stimulation of secure online services, applications and content based on widely available broadband infrastructure.

Telecoms regulation is reserved to the UK Government. It is highly unlikely that the forthcoming amendment proposal concerning the Directive on universal services will initiate a requirement for basic broadband services to be provided across member states. Nonetheless, the Executive will wish to keep abreast of regulatory developments to understand how these might ultimately affect telecoms and broadband provision in Scotland.

Implementation Issues

Scotland is contributing to the aspirations outlined in the current e-Europe action plan. Affordable broadband access is currently available to over 92% of the Scottish population and will reach around 97-98% by July. In order to respond to the needs of the remaining population - who are not expected to receive broadband access commercially - the Scottish Executive has been taking forward (and is close to completing) a procurement exercise which will deliver broadband to every Scottish community by the end of 2005. This project has been cleared as compatible state aid by the European Commission. We are also looking beyond 2005 too, by continuing efforts to encourage take-up of broadband services and through commissioning research to understand the development of 'next generation' broadband services in Scotland.

Prospects for Transport

The top priorities as stated by the Presidency

The Presidency's particular priorities are likely to be the:

• Eurovignette Directive;
• Rail Passengers' Rights Directive;
• Market Access to Port Services Directive; and
• 'Marco Polo II' Programme.

Important issues for the Scottish Executive to be dealt with by the Presidency

Eurovignette Directive

This Directive would revise the 1999 regulation which currently permits only either a time based or distance based charge for lorries on the motorway network of any Member State. Agreement on the interoperability of Member State systems is important for implementation of the UK's plans to introduce Lorry Road User Charging ( LRUC) effectively and within a realistic timescale (currently targeted to be introduced in 2008). LRUC is in fact a tax and its implementation is reserved for Westminster however the haulage industry in Scotland is keenly interested in LRUC and its possible effects here. We are therefore keeping in touch with Customs and Excise (who have the implementation lead in the UK). In terms of developing LRUC technology, there may also be an overlap with the Executive's policies on road user charging. The UK Government supports the principle of amending the Directive to become consistent with an EC White Paper issued in 2001 and with DfT plans; at this stage we see no reason why the Executive's view should vary from that of DfT's although we will need to keep closely in touch with developments since there a few emerging concerns that the cost neutral principle of the initiative which is intended to apply to the haulage industry as a whole may not be the case for peripheral parts of the UK such as some parts of Scotland and Northern Ireland.

Proposal for a Rail Passengers' Rights Directive

The Executive share the UK Government's support in principle of this proposal and accept that proportionate and well targeted regulation of international passengers' rights may well deliver benefits to users. However, the Executive would wish for more detailed analysis of the costs and benefits. The Executive has concerns over the cost implications that would be placed upon the ScotRail franchise by acceptance of the open ended liability being proposed for train operators for an hour delay or more and adds further complexity to what is already a complicated financial performance penalty regime between track and train operators dependant upon who is responsible for the delay.

We will work together with UK Government on these proposals and make representations. Proposals that add significantly to the net costs of the industry will result in reduced services or higher fares and freight charges. This is not to the benefit of consumers. Before finalising its position, the UK Government will also take into account the conclusions of the rail review including the proposals for devolution of further responsibilities for rail functions to Scottish Ministers.

Proposed EC Directive on Market Access to Port Services

The European Commission proposals for a Directive on Market Access to Ports Services would create a formal framework to allow competition in providing services in ports. The lead in negotiations on the Directive is reserved, but the Executive has been closely involved with the Department of Transport (DfT) in shaping the UK position. A conciliated settlement for the first Directive on Market Access to Port Services was rejected by the European Parliament in 2003. The UK Government position was that the conciliated settlement represented a fair compromise adequately reflecting the diversity of EC port operations. It served to formalise the market led commercial operation of the UK ports sector and had the potential to make a significant contribution to the Lisbon agenda for economic reform.

The Executive policy position supports the principles that underpin the proposed new Directive of providing a formal framework to allow competition in ports in ports services but we share DfT's views on the shortcomings on the new Directive as presently drafted. We also support the long overdue measures to improve the financial transparency in port operations and the commitment to deliver on definitive guidance on state aids for ports and port services. The key issues remain those raised last time round and the extent to which the problems that the new Directive seeks to address exist in Scotland and whether the proposed solutions are proportionate. We would wish to be satisfied that the New Directive will not have a negative impact on the competitive position of Scottish ports which are on the periphery of EU markets and lead to a loss of investment in and additional costs for our major ports such as Forth Ports and Clydeport in their efforts to compete in the port services market. We will also wish to be satisfied that that the new Directive will have no adverse implications for oil, coal and other single user terminals such as Sullom Voe and Hunterston. The new Directive would appear to retain the position negotiated last time round in relation to public service obligations and the tendering of lifeline ferry services.

The initial UK position will be to raise a number of serious concerns over the content of the Directive as currently drafted with its one size fits all approach that will not that will not deliver the sought after reforms and could be economically damaging to the ports industry in this country.

Marco Polo II

The Marco Polo I programme was adopted in 2003 and will run until 2006. The aim of this programme is to reduce road congestion and to improve the environmental performance of the international freight transport system within the EU by transferring freight from road to rail and water. This programme has a budget of €33m per year spread across the whole EU.

The Commission has subsequently presented a proposal to establish a second, significantly expanded Marco Polo II programme for the period 2007 to 2013. The proposed budget of €123m per year is approximately 4 times the size of the current Marco Polo budget but is still likely to be over subscribed. It is proposed that Marco Polo II will particularly encourage the development of Motorways of the Sea and Traffic Avoidance Action which is aimed at reducing freight traffic by improving the efficiency of the production and logistics sector.

Marco Polo I was the successor to PACT which ran from 1997 to 2002 and provided €500,000 support towards the cost of the Rosyth-Zeebrugge ferry feasibility study. The Marco Polo programmes focus on EU wide benefits of the transfer of freight from road to rail and water transport between Member States. It is therefore complementary to the freight grant schemes currently operated by the Executive and underscores the PA commitment to encouraging the transfer of freight from road to rail and water. There are no particular Scottish implications relating to the proposal.

Aviation

Aviation is a reserved matter and not a priority for the Luxembourg Presidency. However, there are a couple of important issues for the Executive:

Allocation of Airport Slots

The Presidency hopes to have an orientation debate on the Allocation of Airport Slots at the Transport Council in June 2005. There is no indication when the Commission might come forward with a formal proposal.

EU/ US Open Aviation Area

Progress on negotiations on an EU/ US Open Aviation Area will continue to be the major issue in aviation. Both the April and June 2005 Councils are expected to consider progress reports from the Commission, but it is unlikely that an agreement will be reached until much later in 2005 or 2006. The purpose of this Air Transport Agreement is to achieve an agreement between the EC and the US, creating a Transatlantic Open Aviation Area ( OAA). Negotiations have been in abeyance following rejection by the US side of the EU proposals aimed at improving the deal rejected by the June Transport Council. The UK Government wants to ensure that any agreement leads to genuine liberalisation in the market for North Atlantic air services, thus meeting the needs of EU consumers and airlines. Securing improved access for EU airlines to the US domestic market is a key policy aim for the UK Government.

Other Issues

Aviation

" JAR- OPS" or " EU- OPS"

In December 2004, the Transport Council adopted a partial political agreement on a draft Regulation harmonising technical requirements and administrative procedures (amending Regulation 3922/91 known as " JAR- OPS" or " EU- OPS") for the operation of aircraft engaged in commercial air transportation. The Regulation aims to enhance aviation safety and harmonise working conditions for crew members, thus promoting a level playing field in EU commercial air transportation. The Luxembourg Presidency hopes to make good progress on the proposal. The Dutch reached a partial Political Agreement on the articles and technical annexes (cabin crew and flight time) but the Transport Council will also need to sign off amendments to the other parts. Thereafter, full Political Agreement can be reached but this may be for the UK Presidency later in 2005.

Air Traffic Controller Licences

The Luxembourg Presidency hopes to work with the EP to secure a second reading deal on the proposed legislation for a system of Air Traffic Controller Licences agreed by the Transport Council in December 2004. At that time, the Council agreed a general approach on a draft Directive on the creation of a Community Air Traffic Controller Licence. The Directive will aim to increase safety standards while also improving the mobility of controllers within the Community. The introduction of common licence is a means of recognising the specific role that air traffic controllers play in the safe provision of air traffic control. The establishment of harmonised competence standards throughout the EU will reduce inconsistencies in this area and contribute to a more efficient interface between their service providers.

Rights for Passengers with Reduced Mobility

The Luxembourg Presidency also hopes to make progress on a mini package of Passenger Rights including rights for Passengers with Reduced Mobility ( PRMs) and on the Identification of Air Carrier. The former would make clearer the responsibilities of airlines and airports for wheelchair bound passengers between check-in and boarding, and the latter would require the publication of the actual air carrier on charter flights etc and give passengers certain rights if these were changed. The Luxembourg Presidency hopes to reach agreement on this mini package at the Transport Council in June 2005.

Land Transport

Drivers' Hours Rules

This is a reserved issue. Regulation ( EEC) 3820/85 sets maximum limits on driving time and minimum requirements for breaks and rest periods for most HGV drivers and about half the bus and coach drivers operating in the UK. The need for enforcement arises from the requirements for most drivers to use a tachograph to record their daily activities.

The main changes are to the core provisions on driving and rest times. Other enforcement elements include clarification on extra-territorial jurisdiction for drivers' hours offences which would allow drivers and operators to be prosecuted for offences committed abroad. There is also a requirement that operators should be liable for drivers' hours infringements committed by their drivers.

Political agreement on this proposal was reached at the Transport Council last June. The UK view is that overall it achieves an acceptable balance between improving road safety and working conditions for drivers and the economic needs of the transport industry and its customers. It is also compatible with the working time Directive. There are no particular Scottish implications.

Drivers Hours Enforcement

This is a reserved issue. This proposal would replace Directive 88/599/ EEC on standard checking procedures for drivers' hours. The aims of the proposal are to increase the quantity and quality of enforcement checks, encourage greater co-operation between enforcement authorities and harmonise certain sanctions.

Regulation ( EEC) 3820/85 sets the EU drivers' hours rules - which apply to most HGV and some bus and coach drivers. The rules are enforced by checks of tachograph records either at the roadside or at company premises. Companies using vehicles fitted with tachographs are required to keep their drivers' record sheets for at least one year.

The proposal would increase the level of drivers' hours enforcement checks from the current 1% of days worked to 2% in 2009 and 3% in 2011. These increases now reflect the expected coming into service of digital tachographs and, on the assumption that these dates are met, are acceptable in principle.

Political agreement on this proposal was reached at the Transport Council on 11 June 2004. This included the changes for which the UK had been pressing - notably, the exclusion from scope of the Road Transport Working Time Directive 2002/15/ EC and slightly later dates for the increased enforcement levels - 2009 and 2011 for the increase from 1% to, respectively, 2% and 3%. There are no particular Scottish implications.

NICOL STEPHEN

« Previous | Contents |