Commission Proposal Research Articles

The EU Whistleblower Directive and its Transposition: Part 1

On 16 December 2019, Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law entered into force (hereinafter: Whistleblower Directive; WBD). Based on a Commission proposal of 23 April 2018 and accompanied by an intensive policy debate, the final version of the Directive represents the most far-reaching piece of European Union legislation in the field of whistleblowing law to date, both in terms of depth and scope of regulation. The Member States of the European Union are now obliged to transpose the Directive’s provisions essentially by 17 December 2021. For most Member States, this will mark the first time they will adopt a comprehensive whistleblowing law. Hence, the transposition of the WBD will bring with it various challenges, but also multiple opportunities to improve the current legal framework and its practical implications, both of which are discussed in this two-part article series. Part 1 of the series will first discuss the Directive’s background and the main regulatory elements, followed by an in-depth analysis of its material and personal scope as well as the general conditions for whistleblower protection.

The European Union Proposal for a Regulation on Cross-Border Crowdfunding Services: A Solemn or Pie-Crust Promise?

In March 2018, the European Commission presented a Proposal for a Regulation on (financial return) crowdfunding service providers (CSPs) with a dual objective: to set up a single, EU-wide authorization regime for CSPs; and to ensure that duly authorized CSPs operate in a safe and sound manner. Over two years later, in July 2020, the Council of the European Union adopted its First Reading Position which reflects the compromise reached in negotiations with the European Parliament and brings about significant changes to the Commission Proposal. This study critically analyzes the objectives, economic rationales, and fundamental principles of the proposed EU Regulation on crowdfunding; highlights its weaknesses and inconsistencies; and offers proposals for refinement and improvement. Crowdfunding, fintech, authorization, supervision, suitability, KIIS, crowdfunding service providers

The EU in Search for Stronger Enforcement Rules: Assessing the Proposed Amendments to Trade Enforcement Regulation 654/2014

Abstract Considering the new focus of the European Union (EU) trade policy on strengthening the enforcement of trade rules, the article presents the proposed amendments to the EU Trade Enforcement Regulation 654/2014. It analyzes the EU Commission proposal and the amendments suggested by the European Parliament Committee on International Trade (INTA), in particular with regard to uncooperative third parties and the provision of immediate countermeasures. The amendments will be assessed in view of their legality under World Trade Organization (WTO), Free Trade Agreement (FTA), and general international law and in view of their political implications for the EU’s multilateralist stance. Finally, the opportunity to amend Regulation 654/2014 to use it for the enforcement of FTA trade and sustainable development chapters will be explored. The analysis shows that the shift towards more effective enforcement should be pursued with due care for respecting existing international legal commitments and with more caution to multilateralism.

The Commission in EU Policy Preparation

AbstractSince the heyday of Jacques Delors, the Commission has been challenged by the rise of the European Council, the empowerment of the European Parliament and the creation of European agencies. However, while many scholars agree about the direction of change, there is disagreement about the extent to which the Commission's position has declined. A number of studies are sceptical, and we join this sceptical line. Our contribution is to focus on the Commission's role as a maker of both legislative and executive rules (implementing and delegated acts). These rules are all decided under complex inter‐institutional procedures. But the Commission possesses the right of initiative in all procedures. We investigate how the Commission can use this first‐mover advantage to influence EU policy. We establish a framework for understanding what strategic options the first‐mover advantage entails and provide a first empirical illustration with a qualitative analysis of ten selected Commission proposals.

Bumpy roads of the posted Europe – Issues of principles of conferral of competences and subsidiarity in the light of the posted workers Directive of the European Parliament and of the Council 2018/957

The aim of the study is to analyze if the subsidiarity principle in the context of the law solutions introduced by the Directive of the European Parliament and of the Council 2018/957 amending Directive 96/71 concerning the posting of employees in the framework of the provision of services should be considered justified and proportionate. The arguments presented will show the opinion that the subsidiarity principle is one of the basic rules for conducting economic policy in the European Union. On this basis it will be investigated whether policy powers should be delegated to the lowest possible level of government, close to the citizens concerned by the policy, unless there are undeniable benefits to running it at a higher level in closer policy coordination. It should be considered if the European Commission proposal pursues a purpose other than the declared one and thus violates the principle of proportionality. It will be proved that smart and clear rules are needed that are adapted to the rapidly growing mobility of EU businesses and citizens, which will prevent the progressive loss of competitiveness of the EU market, while accelerating social convergence and preventing illegal activities affecting intra-EU migrant workers.The issues mentioned above and the conclusions may lead, according to the author, to reflection on the importance of the fact, that the division of competences between Member States and the EU institutions is ultimately a political decision that arises in the context of a conflict of interest and indicate that economic analyzes can only provide arguments for or against policy centralization. Furthermore, it should be noted that the integration is a dynamic process and therefore the results of the analysis regarding the justification for the application of the subsidiarity principle may lead to divergent assessments by the Member States, as the conditions of the functioning of economies are rapidly changing.

The origins of EU legislation: agenda-setting, intra-institutional decision-making or interinstitutional negotiations?

This article traces the origins of European legislation during the legislative policy-making process. It identifies three phases where parts of the text of legislative acts can be developed: (1) agenda-setting; (2) intra-institutional decision-making and (3) interinstitutional negotiations, depending on whether the content of the legislation originates respectively in the Commission proposal, the co-legislators’ positions or trilogue negotiations. Using a newly developed text-mining technique which computes in which phase each word of a legislative act originally appears, the article examines the relative importance of each phase and explores how it is affected by interinstitutional conflict. Applying this method to 219 legislative acts adopted between 2012 and 2018, it finds that most EU legislation originates in the agenda-setting phase, and that the new content developed during trilogue negotiations is limited. However, the importance of the agenda-setting phase decreases in cases with high levels of interinstitutional conflict.

LEGAL PROTECTION OF PERSONAL DATA IN THE FUNCTION OF PROTECTION OF HUMAN RIGHTS AND FREEDOMS

The era of globalization and digitalization have become a necessary process for the legal and legal regulation of human rights. This is taken into account by the fact that technological-technological advances have increased fears of human rights violations. This is especially noteworthy in communication tools, the internet and so on. With the intent, protection of personal data and privacy In the international sphere, the EU has made the coding of the protection of personal data through Directive no. 95/96 EC, which entered into force on 24 October 1995, then the ECHR, the European Commission proposal, January 2012, on the reform of the European Data Protection Regulations, which was formulated in the Regulation which came into force on 24 May, 2016 and the General Directive, which entered into force on May 5, 2016. However, according to surveys made with EU citizens, credibility for the protection of personal data from EU institutions and those of member states is below the minimum. The protection of privacy in Kosovo is being done through the legislation and the establishment of the State Agency for the Protection of Personal Data even though Kosovo does not have sufficient technical and material resources for the minimal protection of personal data and privacy in general. This topic addresses the issue of providing information, the confidentiality of the data subject and the security of proceedings and the supervisory authority. Also, the instructions contained in the regulations, the sanctioning of these rights under the penal code necessarily make the approval of the telecommunications law in Kosovo.

One agenda-setter or many? The varying success of policy initiatives by individual Directorates-General of the European Commission 1994–2016

Analyses of strategic agenda-setting in the European Union treat the European Commission as a unitary actor with perfect information. Yet, the constraints for correctly anticipating acceptable policies vary heavily across its individual Directorates-General. Do these internal rifts affect the Commission’s agenda-setting ability? This article tests corresponding expectations on the edit distances between 2237 Commission proposals and the adopted laws across 23 years. The quality of legislative anticipation indeed varies with the responsible Directorate-General. Legislative proposals are more likely to remain unchanged if they face less parliamentary involvement, are less complex, were drafted by an experienced Directorate-General, and were coordinated more seamlessly within the Commission. However, the uncovered variation also calls for more systematic research on the distribution of legislative capacities inside the Commission.

Green Deal-Chances and Risks for the Mineral Raw Materials Industry

Covid-19 hat die Mineralrohstoffwirtschaft stark getroffen. Produktionsrückgänge und Nachfrageeinbrüche prägen das Jahr 2020. Die Verschärfung des EU-Klimaziels (Green Deal) für 2030 von 40 auf 55 % seitens der EU-Kommission stellt die gesamte Europäische Industrie, nicht zuletzt die energieintensive, zusätzlich vor große Herausforderungen. Die Belastungen für einzelne Branchen und den Industriestandort müssen unbedingt bedacht werden, möchte man ein Carbon-Leakage-Szenario vermeiden und Europa trotz ambitionierter Klimapolitik wettbewerbsfähig halten. Das europäische Vorhaben einer Grenzsteuer (Carbon Border Tax Adjustment) und nachhaltige Finanzierungsformen (Sustainable Finance und Taxonomy) werden widersprüchlich diskutiert. Es gilt, nicht nur das Klima, sondern zugleich die Europäische Industrie, Arbeitsplätze sowie das Sozialsystem zu schützen. Die Transformation zu einer nachhaltigen Wirtschaft und Gesellschaft erfordert einen großen Mehrbedarf an mineralischen Rohstoffen und elektrischer Energie. Nur durch eine Stärkung der Wertschöpfungsketten kann eine ausreichende Rohstoffversorgung gewährleistet werden.

How can the European Commission help Europe’s defence industry? By making the most out of what it is already doing

ABSTRACT The European Commission's proposal for the €13 bn European Defence Fund (EDF) to incentivise collaborative defence research and capability development projects with EU funding was an ambitious statement of policy intent to drive forward European defence cooperation. However, the summer 2020 EU budget negotiations left it with only about 60% of that amount over the 2021-2027 period. This debate contribution argues that despite this curtailment in resource and ambition, the European Commission can still maximise the EDF's impact to benefit European defence industry by ensuring that the various defence industrial policy activities it is already leading are achieving their full potential, incentivising EU governments to acquire and use the capabilities developed through the Fund, and maintaining coherence amongst existing research projects, capability development projects, and joint capability requirements.

Distance From Freestanding Emergency Departments to Nearby Emergency Care

The number of freestanding emergency departments (EDs) has increased rapidly in the United States, and there is concern that such entities are located near existing EDs rather than in areas lacking emergency care. In 2018, the Medicare Payment Advisory Commission recommended a reduction in Medicare reimbursement rates to freestanding EDs located within 6 miles of the nearest hospital-based ED. We aim to assess the potential effect of this proposal. Using the 2016 National Emergency Department Inventory-USA database, we identified the locations and visit volumes of all US freestanding EDs. Using QGIS, we mapped the distances from all freestanding EDs to both the nearest hospital-based ED and to the nearest ED (either hospital-based or freestanding ED). We collected location information for all 5,375 EDs open in 2016. Of these EDs, 609 (11%) were freestanding. Few freestanding EDs (1.4%) were located in rural areas and only 11% were located in areas with a median household income of less than $43,000. Overall, 460 freestanding EDs (76%) were within 6 miles of the nearest hospital-based ED, and these had 5.3 million total patient visits, whereas those greater than 6 miles away had 2.6 million visits. We found that most freestanding EDs (76%) are within 6 miles of the nearest hospital-based ED, and most visits (67%) to freestanding EDs are to those within that proximity, indicating that many freestanding EDs would be affected by this Medicare Payment Advisory Commission proposal, if implemented.

Assessment of the European Commission's proposals for financing the EU budget in 2021–20271

Abstract A major problem in all European Union (EU) budgetary negotiations is the approach of Member States in net return terms (the fair-return approach). EU members compare their contributions to the EU budget with transfers that they receive from the budget. Net payers tend to reduce the size of the budget to contribute less. Brexit has aggravated the problem of the size of revenue (due to the United Kingdom's position as a big net payer). Also, new expenditure needs have arisen (for protecting external borders and climate, innovation, etc.). To address those needs, in 2018, the Commission submitted three proposals to supplement the current resources to finance the EU budget after the expiry of the principles of the Multiannual Financial Framework (MFF) for 2014–2020 at the end of 2020. The article aims to indicate whether the Commission's proposals are good instruments for the financing of the EU budget. The assessment relies on selected criteria based on theory. It also takes account of the feasibility of the proposals. The main conclusion is that none of the proposals meets well theoretical criteria of “genuine” EU revenue. Also, for practical reasons, it will be difficult for the Member States to come to an agreement on new budgetary resources. All proposals would be relatively costly for Poland.

Comment on the Competition Commission's Proposal to Accept Commitments Proposed by the Hong Kong Seaport Alliance

On 12 August 2020, the Hong Kong Competition Commission invited the public to comment on its proposal to accept commitments proposed by the Hong Kong Seaport Alliance (Ref. no.: EC/03AY). This short piece recommends the Commission to require the four concerned parties to commit to terminating their commercial and financial coordination partially or entirely.

How Much Farm Succession is Needed to Ensure Resilience of Farming Systems?

SummaryFarm succession is a key policy concern of the EU's Common Agricultural Policy and the European Commission's proposals for the future. This article uses the agent‐based model AgriPoliS to study the effects of the availability of potential successors in two agricultural regions, one in Belgium (Flanders) and one in eastern Germany (the Altmark). The analysis provides no indication that considerably fewer successors would threaten the ability of the farming systems to ensure an adequate provision of private and public goods. Most farm closures occur due to the low efficiency of some farms which hinders the ability of famers to cover true long‐term opportunity costs, i.e. the possibility of earning a higher income outside agriculture. In both study regions, a lack of successors leads to adaptations which create new opportunities for other farms and, in Flanders, to higher economic prosperity at the regional level. The adaptations differ between regions due to existing farm structures, labour demands and costs, institutional frameworks, and the ability to exploit economies of scale. The results of the simulations challenge the notion central to many CAP policies – that more farm succession is better for European agriculture. These findings call for a contextualised reconsideration of agricultural policies which support structural change and regional growth – not hinder it.

Strengthening the Market Position of Farmers by Simplifying the Law

The Commission proposal for the upcoming CAP does not propose any correction of the Producer Organisation rules. This PO-rules should enable farmers to strengthen their position on the market, but the current rules are unclear and to complex. The European legislator is aware of the need to correct the current rules without suggestions for improvement. A decision of the Court of Justice in the Endive case in 2017 offers the fundamentals for better rules based on the principle of the precedence of PO- rules over competition law. In this article a proposal for improvement of het regulation is explained in more detail.

The Digital Service Tax in Italy: Main Characteristics and Practical Issues

In this article, the authors analyse the Italian digital services tax, which took effect on 1 January 2020, comparing it with the European Commission proposal.

The EU return system under the Pact on Migration and Asylum: A case of tipped interinstitutional balance?

AbstractThe article holistically discusses the alleged new EU return system which the Pact on Migration and Asylum heralds. Absent any impact assessment accompanying the key draft legislative measures and any implementation report regarding the existing legislative instruments following the 2015 refugee‐protection crisis, it provides both a substantial and a formal assessment of the proposed reform. A substantial analysis reveals that the two main objectives of the EU return system, namely effectiveness and human rights compliance, are pitted against each other to the detriment of human rights compliance and that effectiveness is questionably narrowed to return rate. Looking at the key components of the return system under the Pact and taking into account past interinstitutional negotiations in the field, it shows that the draft proposals are not conducive to fulfilling these objectives. From a formal standpoint, the article questions the weight of the Commission's proposals on the future outcome of the current negotiations based on their lack of legitimacy.

Why Cannot Direct Payments Be Capped in Slovakia? A Political Economy Perspective

Annually the Common Agricultural Policy (CAP) provides support to the farming sector amounting to more than EUR 50 billion in the EU, of which direct payments (DPs) take around 70%. DPs are often argued to be granted unfairly to large farms. In this paper we analyse implications and the political economy of DP capping in Slovakia in the context of the ongoing negations about the future CAP reform. The simulation results for Slovakia show that if the 2018 Commission proposal was approved it would lead to losses of EUR 190.1 million (68% of total DPs) to large farms when labour costs are not subtracted. These losses would decrease to only EUR 12.2 million (4.4% of total DPs) when the labour costs are subtracted. Further, the results show that potentially affected large farms in Slovakia show lower performance and lower compliance with the agricultural policy objectives than farms unaffected by the DP capping. Similar to the past CAP reforms, the position of Slovakia against DP capping is expected to be maintained also in future, which could be explained by three main factors: the productivity argument, the political economy argument linked to the lobby pressure from large farms and low economic distortions caused by DPs.

SHIFTING TO A EUROPEAN CREDIT MODULE SYSTEM IN UZBEKISTAN, IMPACT AND PERSPECTIVES TO VOCATIONAL EDUCATION

By 2010, the EU plans to become the most competitive and dynamic knowledge-based economic area in the world; an area in which social cohesion is also guaranteed. In the field of education policy, this objective is accompanied by a broad programme, within the framework of the Bologna process, for the creation of a European Higher Education Area (EHEA), and in the field of vocational training, the so-called Copenhagen process. To achieve a single European Higher Education Area by 2010, the Commission's proposal for a European Qualifications Framework (EQF) offers the possibility of increasing mobility within the higher education sector, particularly at European level, and of increasing mobility or permeability between training sectors. Because of this, we will set out here the properties and interdependencies of these instruments and shifting credit module system in Uzbekistan.

Sustainable development goals in the research and innovation policy of the European Union

Leading the world towards the Sustainable Development Goals (SDGs) is an ambition of the European Union (EU) and an important objective of the European Commission's proposal for Horizon Europe: the EU framework programme for Research and Innovation (R&I) 2021–2027. The new orientation of the framework programme requires a new sustainability-oriented thematic agenda and a new approach to governance. Following the perspective of transition management, the paper argues that i) the success of EU R&I policy in its pursuit of SDGs will depend on the reflexivity of its governance, and ii) that foresight can build reflexivity into the governance of EU R&I policy. The paper provides insights in the shaping of Horizon Europe through the BOHEMIA project, a major foresight exercise that supported the preparation of the Commission proposal. The BOHEMIA project aimed at strengthening reflexivity in the policy preparation process and provided advice on both governance and potential thematic orientations for Horizon Europe. Its influence on the proposal and the extent, to which future oriented-reflexivity will characterize the implementation of Horizon Europe, can be seen as precursors of the prospects of the policy to contribute to sustainability transitions in Europe and the world.