The Scottish Government

THE LONG TERM EU POLITICAL OBJECTIVES

Thinking about the EU in the long term, the Government has agreed five long term EU political objectives that provide a framework to align policy and decision making within the EU context with its domestic and international goals. In this way the Government intends to use the EU as a vehicle to deliver its commitments, maximising the effectiveness of its relationships and standing within Europe.

The long term EU objectives identified are fisheries and aquaculture; EU budget review; Justice and Home Affairs; EU energy policy and agriculture.

By ensuring that its actions at EU level are aligned with its overall goals the Government can make significant progress in achieving these goals. For example, an EU energy policy which focuses on renewable energy could provide opportunities for increased investment in research and development into greener technologies in Scotland - thereby creating jobs and allowing Scotland to develop expertise and a competitive edge in this sector.

Fisheries and Aquaculture

Fisheries remains the life-blood of Scotland's rural communities. Scotland retains the lion's share of the UK interests in fisheries. Approximately 70% of key EU quota are held by Scottish Pos, Scottish vessels land two thirds of the total value of UK quota landings and the Scottish fishing zone makes up 60% of UK waters.

There are many criticisms that can be made of the Common Fisheries Policy (CFP); the annual horse-trading for quotas, the inability of the policy to deal with mixed fisheries, measures leading to high discarding etc. Also land locked countries can have greater say than Scotland on EU fisheries management. We recognise that fisheries are complex and difficult to manage, but we believe that the CFP has worked against the interests of Scottish fishermen and led to damage to our key fish stocks and marine environment. We wish to see withdrawal or dismantling of the CFP, replaced with sensible management measures with control returning to national government. Iceland and Norway provide us with examples of how to manage fisheries well.

What the Government will strive to achieve

• In the short run there is urgent action to be taken concerning the Cod Recovery Plan and the implementation of the Conservation Credits Scheme. In the longer run radical reforms in the CFP should be pursued, currently in the context of an agreed (to be agreed, rather) UK line. We will also establish an expert group of fisheries stakeholders, managers and scientists, including expertise beyond the EU, to develop better models of fishery management.

• Securing that Scotland's Fisheries Minister acts as the UK lead minister in meetings of the EU Fisheries Council of Ministers remains an important objective. We must give active support to fish-farmers and strongly back current EU anti-dumping measures. Over the long run we must continue to refine the Strategic Framework for Scottish Aquaculture to ensure the sustainable development and growth of the industry.

EU Budget Review

In the past Scotland has benefited from the EU Budget in terms of Structural Funds, the Common Agricultural Policy (CAP Reform) and R&D spending where European money has contributed to successful Scottish projects.

What the Government will strive to achieve

• We will ensure that Scottish interests are taken into account in the current EU Budget Review, in particular by contributing our ideas on the Reform of the Common Agricultural Policy (CAP), the future of Structural Funds and Research and Development (R&D) spending. Our aim will be to ensure that EU expenditure is rationalised, is rightly focused on the appropriate themes and objectives for a new EU Budget but that Scotland continues to benefit from successfully funded European projects in the future.

Justice and Home Affairs (JHA) Issues

EU JHA legislation has grown considerably over the last decade and has implications for Scotland's distinctive and separate legal system. This growth will increase under the new arrangements for decision making on JHA matters following the signing of the Lisbon Treaty with the extension of the co-decision process (joint Council and European Parliament policy making) and the implications for the UK opt-ins options that were secured during the Treaty negotiations.

What the Government will strive to achieve

• Securing recognition of Scottish interests in JHA matters at both UK and EU levels is therefore a high priority. Actions will include the target of a Scottish Minister or Law Officer attending all JHA Council meetings, and securing the inclusion of Scottish Ministers and officials as necessary in the formulation of the UK negotiating line in JHA issues. There will also be a greater focus and engagement with the European Parliament and MEPs given its extension of powers in this area.

EU Energy Policy

The priorities identified by the Commission's Energy Policy for Europe are generally closely aligned with the Scottish Government's policies for tackling climate change, developing renewable energy, improving energy efficiency, promoting energy research and development, improving security of energy supplies and ensuring equitable energy prices through fair competition in energy markets

What the Government will strive to achieve

• We are taking steps to establish a Scottish European Green Energy Centre (SEGEC) to bring together industry and research bodies from Scotland with those from like minded European countries to develop and deploy the new energy systems and infrastructure required for a low carbon economy.

• We are making an active contribution to the development of EU ambitions in respect of energy policy, especially in relation to renewables and carbon capture and storage.

• We are also promoting sub sea grid connections between Scotland and Ireland and between Scotland, Norway and EU countries so as to allow for the export of renewable energy.

Agriculture

Agriculture is an important sector for the Scottish economy and the Common Agricultural Policy (CAP) (especially the 2003 reforms) has impacted greatly on Scottish farmers. The CAP continues to be an important tool for this industry which is why we are closely monitoring the EU's current reform of the CAP.

What the Government will strive to achieve

• While we recognise the likelihood of significant change to the CAP from 2013 onwards, we are keen to avoid shorter-term changes that would disrupt the Scottish agricultural sector at a time when it is still adapting to the major transition that followed the 2003 reform of the CAP. For example, any move from historic to area based payments must be phased in carefully.
• We are concerned that proposals for greater digressivity could lead to increased administrative effort, with no real benefits; we must ensure that any changes to the rates of compulsory modulation do not adversely affect financing of the SRDP; we are keen to explore the potential opportunities for greater flexibility in Article 69 of EC Regulation 1782/2003 (especially if it can help the environment and vitality of marginal, fragile and remote areas); we want to retain flexibility to continue the Scottish Beef Calf Scheme; we are exploring the possibility of using the health check to help address funding issues arising from the Defra cost and responsibility sharing agenda; and we are giving careful consideration to the implications of abolishing set-aside, including the environmental implications and the consequences for set aside entitlements.
• To consider these matters further a stakeholder group has been established to ensure that Scottish interests are identified at an early stage and fed into the discussions.