Academic Preparation Kit

Table of Contents Foreword

Session Theme

Committee Topics Explanatory Paragraphs Committee on Constitutional Affairs

6-7 8 - 19 20 - 24

Committee on Foreign Affairs I

25 - 31

Committee on Foreign Affairs II

32 - 37

Committee on Agriculture and Rural Affairs

38 - 45

Committee on Economic and Monetary Affairs

45 - 51

Committee on Employment and Social Affairs

52 - 59

Committee on Environment, Public Health and Food Safety I

60 - 65

Committee on Environment, Public Health and Food Safety II

66 - 70

Committee on Internal Market and Consumer Protection

71 - 76

Committee on Industry, Research and Energy

77 - 82

Committee on Civil Liberties, Justice and Home Affairs

83 - 91

Committee on Transport and Tourism

91 - 96

Foreword Dear delegates and participants of Cork ’14, The Chairsteam proudly presents you the Academic Preparation Kit for the 1st International Forum of EYP Ireland in Cork this October. Within this document you will find the Topic Overviews; the Topic Overviews have been prepared by the Chairpersons and are aimed at introducing you to the complexity of the issues that will be debated within each respective committee. The Topic Overviews should be your point of departure for your own research before you arrive at the Forum; within each Topic Overview you will find information relating to the core issues, stakeholders, conflicts and respective legislative backgrounds that govern the topics you will discuss at the Forum. I strongly encourage you all to study the Topic Overviews, conduct your own research, raise your own questions and, ultimately, form your own educated opinions. While Europe is striving to transform its service-oriented economy to a knowledge-oriented one, technology brings a multitude of potential. With the advent of technological innovations, one can only wonder how many applications of it we can integrate not only in communications and information management but also other fields and policy domains. The application of technological innovations in environmental management, ranging from the reengineering of the production process to innovative methods of waste management, is vital for the transformation of the linear economic model of Europe to a circular one. While technological innovations and process management are placed in the center of the Forum’s theme, the Committee Topics of Cork ’14 ponder issues that are currently on the agenda of both national governments and the EU at large. Recent developments in international affairs, monetary supervision, internal affairs and institutional arrangements as well as EU’s trade potential will also be discussed in Cork. Developments, whether positive or negative, create both opportunities and threats for a wide range of stakeholders. The Chairsteam is hereby providing you with a guide to the Topics that will be discussed at Cork and is urging you to inform yourselves even more. I am looking forward to meeting you all in less than a month in Cork. My best,

Dimitris Zacharias President of Cork 2014 - 1st International Forum of EYP Ireland

Session Theme Green Light for Technology and Innovation The session theme “Green Light for Technology & Innovation” enables us to raise awareness and initiate debate concerning the challenges and opportunities provided by the fast paced and ever developing world of technology. It is an accepted fact today that for Europe to grow and prosper into the 21st century it will be necessary to craft a future based on technology and innovation which reduces the footprint which humans leave on the planet. Sensible consumption, responsible production, and innovation across the board will be required so that the adverse effects of climate change can be mitigated and contained and also to create employment, growth and opportunity for the next generation of Europeans. Yet despite this agreement on our destination, as a society we have yet to chart our passage there. The topics of the session aim to help us do just that – the topic overviews herein represent a map of the possible routes open to us. AGRI allows us discuss the ways we might be able to feed a population of 9 billion people by 2050; will we strive to enhance technological possibilities in the production process, or should we encourage we seek to change what we eat so we consume less high impact food and also produce less food waste? ENVI I recognises that many great innovations may already be in existence, and asks how to overcome the challenge of bringing those ideas to the market. IMCO on the other hand ponders the possibility of a new framework to make the sharing economy, which reduces the amount we consume, a more central and accessible part of our lives. ITRE asks how we can reduce waste in the industrial process while ENVI II asks if we can put the waste which will inevitably be produced by our human existence to better, more productive uses. The EU has already taken some steps to encourage better efficiency in industrial production, reduce waste and promote innovation. Europe 2020 is the European Union’s ten-year growth and jobs strategy that was launched in 2010. While its main focus is on encouraging employment, it is also about addressing the shortcomings of the EUs growth model and creating the conditions for a smart, sustainable and inclusive growth. The objectives of the strategy are supported by seven ‘flagship initiatives’ providing a framework through which the EU and national authorities mutually reinforce their efforts in areas supporting the Europe 2020 priorities such as innovation and the digital economy. The Commission has launched the Sustainable Consumption and Production Action Plan so that the European economy can become less resource intensive, while the Entrepreneurship 2020 Action Plan seeks to unleash Europe’s entrepreneurial potential, which a keen eye on green technologies and innovations. Yet despite this existing framework, there is still much more to be done. Our path has not yet been chosen – now it is over to you to decide.

Committee Topics AFCO | Committee on Constutional Affairs

Institutional power play – with the constant struggle of competences within EU institutions and between Member States for the brokering of international agreements, in what way should the Union’s external competences be defined to achieve a single, common and coherent voice in its external affairs? Hans Maes (BE) & Waltter Suominen (FI)

AFET I | Committee on Foreign Affairs I

Emerging enemies - with the Islamic State continuing its Islamisation; instances of mass executions, severe armed conflicts and ethnic cleansing persist. What should the role of the EU be in containing such entities fueled by violence, religious fundamentalism and territorial ambition? Francesco Colin (IT)

AFET II | Committee on Foreign Affairs II

Beyond Crimea - with large Russian minorities in Latvia, Estonia and Lithuania and growing tensions between Russia and the EU following diplomatic antagonism and armed conflicts in Ukraine, how can the EU act preemptively to protect the territorial integrity of the Baltic region? Ronan O’Connor (IE)

AGRI | Committee on Agriculture and Rural Affairs

Growth in unequal terms - with the global population expected to reach 9 billion by 2050 and agriculture already having a vast impact on our planet, how should EU governments work together with farmers, the food industry and the international community to overcome the joint challenges of reducing the impact of agriculture on the environment while increasing efficiency in food production and distribution? Bram Van Meldert (BE)

ECON | Commmittee on Economic and Monetary Affairs

Meta austerity – while market confidence has improved and GDP growth in EU and the Euro area has been forecasted to reach 2.0% and 1.8% respectively in 2015, the ECB has had to introduce negative interest rates and lower lending rates to quell fears of possible price deflation. How should the EU sustain the economic recovery whist preventing negative monetary externalities? Christian Browne (UK)

EMPL | Committee on Employment and Social Affairs

Internity vs. integrity – with internships and traineeships regulated at the EU level and temporary, unregulated and often unpaid internships becoming the route to professional work in domestic job markets, how can the EU ensure higher quality of learning and training, facilitate cross-border exchange and uphold interns’ employment rights? Rosa Douw (NL) & Chris Papadogeorgopoulos (GR)

Committee Topics ENVI I | Committee on Environment, Public Helath and Food Safety I

Eco-innovation partnerships – with the Environmental Technology Verification (ETV) expected to allow new technologies to reach the market more effectively, how can the EU further facilitate the introduction of green technologies to the market through Innovation Partnerships between public and private stakeholders? Laure Steinville (FR)

ENVI II | Committee on Environment, Public Helath and Food Safety II

Europe’s trash or Sweden’s treasure – waste-to-fuel programmes have proven so successful that 50% of Sweden’s household waste is utilised in energy production, a total of 99% is recycled in one way or the other and additional waste is imported from its European neighbours. How should the EU incentivise a wider adoption of such programmes in other Member States and regulate the emerging waste trade market? Timm Brunjes (DE)

IMCO | Committee on Internal Market and Consumer Protection

The battle against Silicon villains - with Germany’s latest reaction to UBER’s penetration of commercial transport in Frankfurt and the application’s wide reach in several Member States’ markets, how can the EU ensure that emerging commercial transportation service providers uphold legal guidelines whilst protecting EU consumers and maintaining market stability? Niall Murphy (IE) & Iman Idriss (FR)

ITRE | Committee on Industry, Research and Trade

From linear to circular – with the European Commission tabling an enabling policy framework for a circular economy in the EU, how can both the EU and its Member States better manage existing resources and realign the production process through the use of existing infrastructure and enabling technologies to ensure industrial sustainability? Ciara Robinson (UK)

LIBE | Committee on Civil Liberties, Justice and Hone Affairs

Digital polyphony - freedom of the press and media pluralism is often cited as a key component for the protection of civil liberties, but in recent years there has been an increase in journalists using the legal defenses to which they are entitled to perform illegal and intrusive surveillance on private citizens. How can the EU continue to protect press freedom without encroaching upon the rights of its citizens? Anna Borrell Mauri (ES)

TRAN | Committee on Transport and Tourism

Port and policy – with 74% of inter-EU and 37% of intra-EU trade executed through the EU’s ports, how can the EU establish legal certainty and a level playing field in its efforts not only to modernise port services but also to attract investment whilst improving the environmental profiles of ports? Karim Ben Hamda (NL)

Explanatory Paragraphs 1. Committee on Constitutional Affairs (AFCO) Institutional power play – with the constant struggle of competences within EU institutions and between Member States for the brokering of international agreements, in what way should the Union’s external competences be defined to achieve a single, common and coherent voice in its external affairs? External affairs can be regarded as one of the EU’s most complex and convoluted aspects. With a wide array of different procedures depending on the existence and nature of EU competence, involving different actors and different legislative requirements, decision makers often struggle to present clear and coherent policies and strategies in the realm of international politics. With the introduction of the Lisbon Treaty in 2009, the framework for the EU’s external affairs was altered. Through the creation of the position of High Representative of the Union for Foreign Affairs and Security Policy, the EU intended to provide itself a coherent external voice that could project a unified image of the Member States regarding foreign policy. However, it has been widely argued that the position itself only carried a vague mandate to mitigate the differing positions of the Member States at a ministerial level in the Council, rather than producing a strong unified voice. Additionally, at a prime-ministerial level, the EU is represented by the President of the European Council, whilst the President of the European Commission plays a role in areas that fall under the Commission’s competence. Next to this three-headed foreign representation hydra, the Member States retain a high degree of national competence in foreign policy decision making. As proven in the past through the situation in Iraq, Libya and Syria, the EU could do well with a strong and coherent voice in its international affairs. Therefore, having three heads leading the debates causes only confusion and further diminishes the EU’s role in the global playing field, when other heads of state wish to negotiate the brokering of an international agreement.

Explanatory Paragraphs 2. Committee on Foreign Affairs (AFET I) Emerging enemies - with the Islamic State continuing its Islamisation; instances of mass executions, severe armed conflicts and ethnic cleansing persist. What should the role of the EU be in containing such entities fueled by violence, religious fundamentalism and territorial ambition? The escalation of conflicts in the Middle East have led to the emergence of regional and transnational entities that are fuelled by religious fundamentalism and pursue religious and political authority in a region that has been defined by continuous social, political and religious turbulence. The Islamic State, a self-proclaimed caliphate comprised of Muslim fundamentalists in both Iraq and Syria, positions itself as the sole Islamic authority for every Muslim in the world and pursues the aim of being the religious and political guide of the neighbouring Muslim-populated countries. The Islamic State is nonetheless the result of an unceasing growth and radicalisation of a religious and terroristic group, whose roots dates back to 1999. This Sunni jihadist institution is also notorious for its refined use of propaganda, which combines copious ruthless visuals and a recall to the Golden Age of Islam -whose original script is said to be corrupted by modern developments. Moreover, the sophisticated warfare tactics and the financial prosperity provided the Islamic State with an unprecedented level of power and influence over other active jihadist groups. The Islamic Stateâ&#x20AC;&#x2122;s violent tactics and its radical propaganda has been internationalised and is cause for great concern for Western counties as the self-proclaimed caliphate is seeking to penetrate the West. With the United States expressing its will to eradicate the Islamic State and stop the instances of unprecedented violence, the West is taking a stance against Islamisation. The escalation of conflict in the Middle East, the instances of mass executions and brutalities have caused great concern; the beheading of a British national by the Islamic State attracted the immediate attention of the British executive, and by extent, that of the EU. Several Member States are now ready for taking concrete action to stop these brutalities, focusing on the termination of financial support, the extensive propaganda and foreign aid. The EU, a vanguard of human rights and a close ally of the United States will be invited to participate in the containment of violence and religious radicalisation; what should the role of the EU be in the efforts of the international community to contain and demilitarise the Islamic State whilst catering for the de-escalation of conflict in the region?

Explanatory Paragraphs 3. Committee on Foreign Affairs II (AFET II) Beyond Crimea - with large Russian minorities in Latvia, Estonia and Lithuania and growing tensions between Russia and the EU following diplomatic antagonism and armed conflicts in Ukraine, how can the EU act preemptively to protect the territorial integrity of the Baltic region? With the status of Crimea still in question, stability for the Eastern bloc lies in its resolution. The complexity of the Crimean conflict lies in the makeup of the Crimean people and those of other Baltic States. As a result of their formation at the breakup of the Soviet bloc, their populations constitute significant ethnic Russian minorities. While the Crimean referendum was widely discredited, with a 59% Russian population it is not unreasonable that Russian separatists in Crimea would seek to secede to Russia. There are echoes of the not so distant conflict in the breakup of Yugoslavia, which still continues to an extent in the form of Kosovo. With diverse cultural minorities an answer other than violence needs to be presented in order to preserve peace in the Baltic region. With Latvia, Estonia and Lithuaniaâ&#x20AC;&#x2122;s populations comprising of large Russian minorities, ethnic conflicts may cause further instability in a region that is defined by tension because of its close proximity to Russia. Fears of territorial conflicts in the Baltic region have been reinforced not only with the Crimean caper but also with the Russo-Georgian conflict of 2008. Conversely, as the EU and the US increase trade sanctions on Russia, the likelihood of tensions easing is low. The Baltic States are keenly aware of the risk of violent protest should tensions with Russia persist. As members of the EU and NATO, which has increased its military presence in the Baltic region, these institutions will need to act to protect the Baltic States from potential conflicts. The likelihood of Russian territorial ambition in the Baltic region may be low but the large Russian minorities in the region and Russiaâ&#x20AC;&#x2122;s aggressive foreign policy constitute concerns; these concerns are to be preemptively addressed by the EU in an effort to secure the Baltic region and prepare itself for such a contingency. The EU is thus faced with two responsibilities. It must stand its ground on annexation of Crimea in order to prevent a reoccurrence in the longterm. Simultaneously another such violent revolt seems all the more likely in the short term while tensions remain high in the Baltic region. How best can the EU learn its lessons from the Crimean conflict and address such potential in the Baltic region?

Explanatory Paragraphs 4. Committee on Agriculture and Rural Development (AGRI) Growth in unequal terms - with the global population expected to reach 9 billion by 2050 and agriculture already having a vast impact on our planet, how should EU governments work together with farmers, the food industry and the international community to overcome the joint challenges of reducing the impact of agriculture on the environment while increasing efficiency in food production and distribution? Throughout history, no human activity has impacted our planet more than agriculture. Agricultural activities use up to 40% of the worldâ&#x20AC;&#x2122;s land surface, account for 70% of water usage and, when taking all effects into account, are responsible for 30% of greenhouse gas emissions, the drivers of climate change. Besides, agriculture is a large polluter affecting eco-systems across the globe and a major driver for the loss of biodiversity. Despite all of this, agriculture is not something humanity needs to do away with. In fact there is nothing mankind is more dependent on for its success; we need to eat. However, if no action is undertaken to reduce the impact of agriculture on the environment, irreparable damage will be done, endangering food security across the globe. The severity of the agricultural puzzle is significantly enhanced by the expected increase in global population up to 9 billion by 2050 and the foreseen increase of overall wealth leading to a consumption shift towards large impact food such as meat, eggs and dairy. The combined effect of these two trends will result in demand for agricultural output roughly doubling by 2050. Eventually, agricultural output will have increased while negative externalities on the environment should be neutralised. From a theoretical perspective this issue is solvable given the large amounts of food waste and available technologies to process it; the problem becomes really complex when taking into account that many different stakeholders have to invest and make efforts for a common cause. The complexity of this issue and the plethora of stakeholders with a vested interest in agricultural innovation may lead to a potential moral hazard. What role can stakeholders from both the demand and supply sides assume, and how can the EU best assist these stakeholders? Which role should the EU play in engaging the wider international community? Which actions can the EU already take regardless of the commitments of other stakeholders in solving this demand-supply predicament in view of unequal growth of population and agricultural supply?

Explanatory Paragraphs 5. Committee on Economic and Monetary Affairs (ECON) Meta austerity â&#x20AC;&#x201C; while market confidence has improved and GDP growth in EU and the Euro area has been forecasted to reach 2.0% and 1.8% respectively in 2015, the ECB has had to introduce negative interest rates and lower lending rates to quell fears of possible price deflation. How should the EU sustain the economic recovery whist preventing negative monetary externalities? Lending and borrowing are essential to ensuring money circulates in any given market. If consumers do not have money to spend, businesses, whether big or small, suffer. This consequently affects jobs as companies cut numbers of staff or simply liquidate completely. Unemployment reduces spending further as newly unemployed do not have money to use for consumption of goods and services in a market. Banks are pivotal in providing loans to help consumers continue spending and thus maintain high levels money circulation within a market. However, with the aftermath of the global recession causing high levels of doubt over the stability of new investments, banks look to ensure that their money slowly accumulates rather than potentially depletes due to a high risk of investment. That risk adversity of lending institutions has led to â&#x20AC;&#x2DC;money parkingâ&#x20AC;&#x2122; at the European Central Bank. This can be helpful for consumers as it means they can increase their savings over time. More importantly it means that less money is being used to consume goods and services in the market. This puts businesses at risk as there is lower demand; lower consumer demand leads to lowering of prices of both goods and services so as for demand to be incereased. Deflation increases the value of the currency but it also increases the likelihood of slow economic growth as new investment opportunities decrease, businesses struggle and unemployment grows. The ECB looks to ensure that banks, and other lending institutions, resume their lending by implementing negative interest rates. Such negative interest rates for lending translate into increasing costs for reserve storing at the ECB. In an effort to support money circulation, the ECB has taken bold monetary moves and is now a strong proponent of vibrant market activity; within that market, lending institutions and banks are prompted to spend more, lend more and assist the economies in bouncing back from the hardship of austerity, unemployment and stagnation. How can the EU sustain its economic recovery and prevent monetary externalities?

Explanatory Paragraphs 6. Committee on Employment and Social Affairs (EMPL) Internity vs. integrity – with internships and traineeships regulated at the EU level and temporary, unregulated and often unpaid internships becoming the route to professional work in domestic job markets, how can the EU ensure higher quality of learning and training, facilitate cross-border exchange and uphold interns’ employment rights? The rise of unemployment among young people has taken a dramatic turn in recent years; there are over 5.5 million people in the EU-28 under the age of 25 who cannot find a job. Therefore, in order to achieve the Europe 2020 headline target to reach a 75% employment rate among women and men aged 20-64 by 2020 it is vital to improve young peoples’ education and facilitate their transition to employment. In this context, traineeships and internships can have a key role in increasing the access of young people to the labour market. Traineeships can bridge the gap between the theoretical knowledge gained in education and the skills and competences needed at a workplace and in this way increase the chances of young people finding employment. And indeed, at the European level, regulations for traineeships and internships have been made, with the European Parliament adopting an own-initiative report in ‘Promoting youth access to the labour market, strengthening trainee, internship and apprenticeship status’, the European Commission’s Communication ‘Towards a job-rich recovery’ and the Council’s recommendation on a ‘Quality Framework for Traineeships’. Nevertheless concerns have been raised over the quality of traineeships and internships. Employers seem to be using traineeships and internships more frequently, as a source of cheap or even free labour, to replace regular employment, thereby exploiting the obstacles to entering the labour market faced by young people. In other words, low wages, low employment protection, poor terms and conditions, lack of high quality learning content, the use of trainees to carry out mundane work, and the substitution of trainees for regular employees. Despite the higher amount of protection trainees and interns have at the EU level, employment regulation at the domestic level varies significantly. Employment policy is a competence that the EU and Member States share, thus providing the latter more leeway to cater policy to domestic needs. How can the EU address the issue of limited rights for trainees and interns and contain bad practices at the early stage of employment?

Explanatory Paragraphs 7. Committee on Environment, Public Health and Food Safety I (ENVI I) Eco-innovation partnerships â&#x20AC;&#x201C; with the Environmental Technology Verification (ETV) expected to allow new technologies to reach the market more effectively, how can the EU further facilitate the introduction of green technologies to the market through Innovation Partnerships between public and private stakeholders? Europe is a world leader in green technologies, accounting for about one third of the global market. However, there are substantial hurdles for eco-efficient technologies to break into the market and allow for a wide adoption, thus unleashing their full potential to a wide user audience. Indeed, investors need to know more precisely the performance and environmental benefits of different technologies so they can confidently finance products that are often new to the market. The advent of new technologies may introduce many benefits that pertain not only to environmental targets but also to price competition in the market; the market is thus a significant channel of introducing innovation and testing its benefits. This issue was partly tackled with the introduction, in April 2013, of the Environmental Technology Verification (ETV). The ETV consists of an independent third party verification of the performance of new environmental technologies entering the market. It targets the following three technological areas: water treatment and monitoring; materials, waste and resources; energy production technologies. However, this system is still partly unknown amongst European entrepreneurs and has to be promoted. Consequently, Small and Medium sized Enterprises (SMEs), representing more than 90% of the European green-technology market, would be further assisted so as for their innovations to attract investorsâ&#x20AC;&#x2122; attention and reach the market. Commonly, SMEs and eco-friendly enterprises, lack funding; this lack emphases the need of the private sector to co-operate with its public counterpart especially in large-scale projects that require technological infrastructure. Innovative environmental technologies are positioned at the core of the Europe 2020 Strategy. They could play a significant role in addressing the environmental challenges Europe is facing nowadays and further contribute positively to the EUâ&#x20AC;&#x2122;s competitiveness and prospective growth. How best can the EU, working with the Member States, engage the private sector and utilise its strengths in order to introduce innovative green technologies to a wider audience?

Explanatory Paragraphs 8. Committee on Environment, Public Health and Food Safety II (ENVI II) Europe’s trash or Sweden’s treasure – waste-to-fuel programmes have proven so successful that 50% of Sweden’s household waste is utilised in energy production, a total of 99% is recycled in one way or the other and additional waste is imported from its European neighbours. How should the EU incentivise a wider adoption of such programmes in other Member States and regulate the emerging waste trade market? Every year, Member States combined produce some 2 billion tons of waste, with the rate rising steadily. In order to contain waste accumulation, the European Parliament and Council of the EU have introduced a hierarchy on waste treatment in their 2008 Directive (Directive 2008/98/EC), aiming to achieve an ecologically sustainable European waste treatment scheme. This hierarchy is comprised of (a) prevention; (b) preparing for re-use; (c) recycling; (d) other recovery, e.g. energy recovery; and (e) disposal. Sweden has become somewhat of a European role model in adapting the hierarchy. Especially in recycling and recovery, Sweden has developed techniques so efficient that have resulted in buying 700 tons of additional waste from Norway, Ireland and Great Britain. A staggering 99% of Sweden’s household waste is recycled in one way or another, with 50% of it utilised in energy production. In 1904 the first Swedish incineration plant was set up in Stockholm and now, 110 years later, the 32 plants have become so efficient, that 3 tons of waste produce as much energy as 1 ton of oil. Sweden is able to heat 810.000 households and supply 250.000 households with electricity just by incineration plants. Although the amount of incinerated and recycled waste in Europe has increased while the amount of landfilled waste has decreased, there is still room for a lot of progress; the landfilling rate in Europe is still up at 34% and again, Sweden is one of the European pioneers with only 4% of the waste being landfilled. Although the general European framework for waste management includes directives and regulations on waste management statistics, landfill and incineration for all Member States, these seem to be far from the same pitch. Therefore it might be time to revise the outdated legislation and work towards a waste treatment that is more environmentally sustainable. Taking into account Sweden’s successful implementation of such programmes, how can the EU incentivise and assist more Member States to take up such schemes and benefit the environment? Moreover, how best can the EU regulate the emerging market of waste trading and ensure that environmental targets are upheld?

Explanatory Paragraphs 9. Committee on Internal Market and Consumer Protection (IMCO) The battle against Silicon villains - with Germany’s latest reaction to UBER’s penetration of commercial transport in Frankfurt and the application’s wide reach in several Member States’ markets, how can the EU ensure that emerging commercial transportation service providers uphold legal guidelines whilst protecting EU consumers and maintaining market stability? The rise of E-commerce is removing geographic and time constraints and empowering consumers through greater innovation and choice. The ‘Sharing Economy’ has become increasingly popular in recent years. From swapping systems, network transportation to private kitchens, sharing information with strangers is on the rise. In the EU context the promotion of innovation is seen as the key to entrepreneurship and enhancing the competitiveness of European firms. This is particularly the case considering the EU2020 strategy which proposes that “the consumption of goods and services should take place in accordance with smart, sustainable and inclusive growth and should also have an impact on job creation, productivity and economic, social and territorial cohesion”. Although Uber, Airbnb, and other online platforms have democratised access to a number of services and facilities, multiple concerns have been raised as to the public safety and limited liability of these practices. In addition, these innovative activities have been contested by professionals offering similar services claiming that a sharing economy opens the door to unfair competition. These new practices challenge EU regulations on a daily basis. Traditional legal boundaries are easily blurred, resulting in legal grey areas and regulatory uncertainty, evidenced by the tension between the need to encourage innovation and the need to protect customers. Member States are at crossroads; on the one hand, innovation in a sharing economy should not be stifled by excessive and outdated regulation and on the other hand, there is a real need to protect the users of these services from fraud, liability and unskilled service providers. This dilemma is far more complex than it seems and the Committee on the Internal Market and Consumer Protection is confronted here with an array of challenging questions.

Explanatory Paragraphs 10. Committee on Industry, Research and Energy (ITRE) From linear to circular – with the European Commission tabling an enabling policy framework for a circular economy in the EU, how can both the EU and its Member States better manage existing resources and realign the production process through the use of existing infrastructure and enabling technologies to ensure industrial sustainability? In recent years it has become apparent that the depletion of finite resources is spiralling out of control. This is intrinsically linked to the destabilisation of the European economy. Increased energy and resource prices have created a more volatile market in a time of recession and uncertainty. Europe’s dependence on other countries to supply natural resources poses social, economic and political threats to the future of Member States. This is demonstrated very clearly in China’s monopoly of Rare Earth Elements (REE) and Russia’s dominance in the gas markets. In the context of growing consumer demand and environmental sustainability, this depletion and dependence clearly highlights a change is long overdue. Traditionally, a linear economy has been the basis for industrial production. A linear economy refers to the extraction, production and use of resources in a way that is nonrenewable. At all levels of production, materials are wasted and carelessly disposed once they are no longer needed. This “take, make and dispose” mentality has to change. Recently, as citizens have become more environmentally aware and forced to reconsider how resources are utilised, the circular economy model has been developed. This views all materials, whether biological or technical, as reusable, renewable or biodegradable. Rather than a focus on recycling products after the final consumer stages, this calls for the reconstruction of the entire production system. From the very beginning, corporations must consider how to design products for disassemble and reuse. The European Commission views this as a win-win situation for all. It is more environmentally friendly, creates new markets, provides an intelligent way of using resources and ultimately, increases economic stability. According to the European Commission, this resource efficiency could boost EU GDP by 1% whilst creating 2 million jobs. The problems therefore lies in a lack of investment, a lack of information, changing consumer habits, redesigning existing infrastructure and the perceived risk associated with change. How can the EU incentivise and work alongside consumers, businesses and governments to implement such a strategic transformation?

Explanatory Paragraphs 11. Committee on Civil Liberties, Justice and Home Affairs (LIBE) Digital polyphony - freedom of the press and media pluralism is often cited as a key component for the protection of civil liberties, but in recent years there has been an increase in journalists using the legal defenses to which they are entitled to perform illegal and intrusive surveillance on private citizens. How can the EU continue to protect press freedom without encroaching upon the rights of its citizens? The preservation of media independence and diversity is vital for a democratic Europe. The freedom and pluralism of the media goes hand in hand with two non-negotiable freedoms, which lie at the heart of any democratic society. Freedom of expression and freedom of the press are essential pillars of democratic systems. The main responsibility for maintaining media freedom and pluralism lies with the Member States. However, the EU also plays an important role, mostly in upholding the fundamental rights of EU citizens in cross-border issues arising in the Single Market. The role media plays in a democratic society requires strong protection, but also carries equal responsibilities. As there is no clear consensus between media practitioners as to what is in the publicâ&#x20AC;&#x2122;s interest to broadcast, this has sometimes led to illegal and intrusive practices which have also targeted private citizens. On the one hand, journalists must be able to work in an environment which allows for free expression and provides them with the assurance that they can work free from pressure, interdictions, harassment, threats or any other kind of harm. On the other hand, journalists have the professional obligation to provide accurate information and must always be responsible and accountable for their output. They have to comply with the law in accordance with the constitutional guarantee of freedom of media. This requires clear legal regulation about the rights of citizens being wrongfully mentioned, or illegally monitored by journalists. Another thing that should be taken into account nowadays is the rise of new technologies, along with the accelerating changes of journalism as a profession, requiring on-going adaptations to the regulatory framework. How can the EU, working closely with the Member States, protect citizensâ&#x20AC;&#x2122; rights without limiting the freedom of the press?

Explanatory Paragraphs 12. Committee on Transport and Tourism (TRAN) Port and policy â&#x20AC;&#x201C; with 74% of inter-EU and 37% of intra-EU trade executed through the EUâ&#x20AC;&#x2122;s ports, how can the EU establish legal certainty and a level playing field in its efforts not only to modernise port services but also to attract investment whilst improving the environmental profiles of ports? For many centuries Europe has depended highly on its ports as a major income through trade and transport. The scale of the usage of ports and their importance may have varied at certain points in history, but there is no denying that they are still of major importance to Europe at present. Nowadays, they are not only relevant because they are merely responsible for shipping goods from point A to B. Ports also contribute directly to employment across the EU with roughly 3 million jobs, inward investment and GDP growth. Considering the economic hardships that the EU has been facing for the past years, ports can be vital in securing economic recovery across the continent. However, Europeâ&#x20AC;&#x2122;s ports are facing challenges in the modern age. Some of these challenges pertain to the integration of ports in trans-European corridors, the amount of red tape that has to be dealt with in the maritime economy, and the health and safety conditions of port workers. Another prominent issue relates to the poor environmental profiles of ports. The maritime sector has faced a lot of criticism concerning the amount of fuel which is used by freight ships and the subsequent emissions rate. Nevertheless, environmental requirements have been set by the International Maritime Organisation (IMO), which is the specialised shipping agency of the UN, in recent years. These regulations have also been incorporated into EU law. The EU has even gone far beyond requirements that have been set by the IMO in order to incorporate the maritime industry in its environmental benchmarks that comprise its longterm strategy on environmental sustainability. The Committee on Transport and Tourism will be dealing with a topic which has many facets and will touch upon a wide array of entwined subjects. How can the EU implement changes in the maritime sector so as to modernise ports and harness the full potential of the maritime economy whilst upgrading the environmental profiles? With increasing inward investment in EU ports, how can the EU ensure that environmental targets are met and benefits of increased trade and transport are exploited?

Committee on Constitutional Affairs

AFCO

I. Key Terms 1. External competences: Article 216 of the Treaty on the Functioning of the European Union (TFEU) entitles the EU to conduct international agreements either when acting on the legal basis provided by a treaty, a legally binding act or when aiming to perform its fundamental objectives. The conclusion of an international agreement by the Union prevents Member States from negotiating bilateral agreements themselves1. 2. Common Foreign and Security Policy (CFSP): EU foreign policy sensu stricto; this framework policy provides the main platform for developing and implementing the political and diplomatic dimension of EU foreign policy.2 3. Common Security and Defence Policy (CSDP): One of the main elements of the CFSP and the platform for policies governing defence and military aspects as well as civil crisis management.3 4. EU ‘external action’: EU foreign policy sensu lato; this category comprises the EU’s external trade policy, development cooperation, economic and financial cooperation with third countries and humanitarian aid. International agreements concluded by the Union also fall under this section. 5. Sovereignty: In principle a state has the privilege to govern its own territory with no interference from other states or actors, however as Member States have relieved part of their sovereignty to the EU the Members of the Union have bound themselves to the collective will in some policy fields. 6. Principle of subsidiarity: This political principle determines that decisions should always be taken as close to the citizens as possible. In a EU context this principle serves as a safeguard for the Member States to retain their national competences.

II. Key Questions 1 The European Union’s External Responsibilities, Europa.eu, accessed 28.09.2014 2Common Foreign and Security Policy of the Union, External Action Service, accessed 28.09.2014, Common Foreign and Security Policy, Europa.Eu, accessed 28.09.2014

3Security and Defence Policy, External Action Service, accessed 28.09.2014

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1. Should there be one leading figure in brokering international agreements on an EU level? 2. To what extent should the sovereignty of Member States be respected in matters of foreign policy, bearing in mind that a strong Member State influence might make a common, coherent and consistent response more difficult to achieve? 3. Have the institutional changes introduced with the Lisbon Treaty for the position of the High Representative and the President of the European Council proved to be functional or have they merely provided a temporary haven in a sea of complexity?

III. Social Relevance Whilst the matter of the EU’s external competences might sound foreign and distant to many, it is in fact constantly present. Through its external competences, the EU interacts with non-Member State countries on a daily basis. For example, it regularly concludes bilateral trade agreements4 with countries outside of the European Economic Area (EEA), which are always mutually beneficial. The EU can also take a stance in current international affairs through the collective of 28 Member States represented by their respective heads of state in the European Council. Through the collective representation, the Union has unique capabilities in projecting the will of its citizens to the extent that single states rarely can, however all of this raw power of representation is constantly diminished through complex institutional bureaucracy that serves no purpose in the longer run. If the representation of the Union was made clearer, not only would the institutions be able to function in a more transparent manner, the overall certainty of Union actions could potentially enable the citizens to in a more direct manner relate to the stances of the Union without the need to analyse vast mountains of paperwork from differing actors.

IV. Stakeholders The High Representative for Foreign Affairs and Security Policy functions as the main representative and coordinator of the CFSP, and chairs the Foreign Affairs Council (FAC), where 28 national ministers of foreign affairs meet under the heading of the Council of Ministers. He/she also leads the European External Action Service (EEAS5), the main diplomatic entity for international representation of the Union. The EEAS manages the EU’s response to international crises and gathers information, whilst supporting the High Representative in his/her tasks. As is often proven in practice, national interest is the predominant motivator for Member States when acting on an EU level. This is especially true for affairs traditionally linked to the power of the 4 An agreement aimed at to facilitate trade between two countries. 5 Whitman R, (2010), “Strengthening the EU’s External Representation: The Role of the European External Action Service”, European Parliament, 2010 - For further reading on the EEAS and its possible future function.

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nation state, such as defense and foreign affairs. This causes Member States to frequently disagree on a shared stance when attempting to take a common approach to an international crisis. Examples thereof are the imposed trade sanctions against Russia. With Member States having different trade and energy dependencies on Russia, the gravity of the proposed sanctions was substantially watered down6. Thus, current EU foreign relations remain largely the prerogative of the Member States, and it seems likely to remain this way. The Heads of State of the Union also represent a clear national perspective in the European Council. Led by its President, this institution has a crucial role in high-level decision-making on both internal external matters, issuing recommendations to the Commission and the Council. The European interest in foreign policy is often represented through the European Commission. The Commission acts as a main negotiator when concluding international agreements on behalf of the EU.

IV. Conflicts Understanding European foreign policy requires analysing its multifaceted nature. When looking at the EU treaties, a clear division becomes apparent between on the one hand the CFSP and the CSDP, and the EU’s ‘external action’ and ‘external dimension of internal policies’ on the other. Both sides are governed through different methods and procedures. The CFSP and the CSDP, frequently seen as ‘traditional foreign policy’, are organised on the basis of the intergovernmental method. In this method, Member States retain a high degree of control over their foreign policy through the dominant position of the European Council and the Council. These procedures are largely outlined in the TEU7. The other two dimensions of European foreign policy are governed through the community method, and involve an institutional equilibrium between the main EU institutions: the Commission, the Parliament, the Council and the European Court of Justice8. This dichotomy presents the EU with a representational problem. In CFSP/CSDP matters, the EU is usually represented by the High Representative on a ministerial level and the President of the European Council at the head of state level. This already presents a tension in itself, as the drafters of the Treaty of Lisbon envisioned the High Representative to become a major player in the EU’s external representation, whilst it is in fact the European Council President who is the EU’s main representative. Moreover, in matters concerning external action and the external dimension of internal policies the EU is mostly represented by the European Commission and its President. This institution strives towards a deepening and widening of the Union far more than institutions representing the Mem6 “EU Leaders Divided Over New Sanctions To Punish Russia For Annexing Crimea”, The Telegraph, 20.03.2014 7 Keukeleire, Stephan & Delreux, Tom, The Foreign Policy of the European Union, Palgrave Macmillan, London, 2014 8 Ibid.

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ber States, which makes the latter extremely hesitant to give up their sovereign competences and overcome the foreign policy dichotomy. However, international agreements increasingly include policy areas from both sides of the bed. For example, trade agreements (Commission competence) increasingly include sections on international security (CFSP matter). This makes for internal competence quarrels between the different institutions9. A telling example of representational tension and overlap was the inter-institutional quarrel over who would have the honour of accepting the 2013 Nobel Peace Prize, which was awarded to the EU. Because the Presidents from the European Council, the European Commission and the European Parliament all thought they were representing the main EU institutions, they agreed on accepting the prize together in the end10.

VI. Facts & Figures

1. Trade policy is an exclusive power of the EU. This means that the EU, and not individual member states, negotiates international trade agreements. The European Commission negotiates with the trading partner on behalf of the whole EU but does so in close cooperation with the Council and European Parliament who ultimately approve the overall agreement.11

VII. Legislative Background Through the entry into force of the Lisbon treaty, the EU acquired an international legal personality, meaning that it is officially able to be both bound into international agreements and also broker them12. How the EU then enters into such agreements is dependent on the nature of the agreement at hand. As states in article 218 TFEU13, the Commission is granted the duty to initiate agreements, after which it presents them to the Council. In cases that fall strictly under the CFSP, the High Representative has the right to draw up the initiative. A mandate is then given to the Commission to initiate negotiations. The European Council can also issue recommendations that provide a framework in which the negotiations are to be conducted. Through the mandate of the Council the Commission then negotiates the agreement in cooperation with the Member States. However, the overall involvement of the Member States is dependent on the competence the agreement falls under. In case of exclusive competence, the Commission is the sole negotiator, 9 Kaczynski, Piotr Maciej, Single voice, single chair? How to re-organise the EU in international negotiations under the Lisbon rules, CEPS Policy Brief, March 2010

10 EU receives the Nobel Peace prize, The Guardian, accessed 30.09.2014 11 â&#x20AC;&#x153;Trade Negotiations Step By Stepâ&#x20AC;?, European Commission, 2013, accessed 28.09.2014 - NB. Functions as a nice introduction with

a step by step approach to European trade policy. 12 International agreements, Europa â&#x20AC;&#x201C; Summaries of EU legislation, accessed 30.09.2014 13 Article 218 TFEU, Eurlex, accessed 28.09.2014

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from time to time with the assistance of Member States. In the category of shared competence, the negotiations are led by both the Commission and national experts. Lastly, since the introduction of the Lisbon Treaty, the consent of the European Parliament is now needed for most agreements so that the Council to conclude them14.

VIII. Keywords External Competences, Institutional overlap, Union Representation, Coherency, Lisbon Treaty, Foreign Policy, National Interest.

14 Procedure For The Adoption Of International Agreements, Europa â&#x20AC;&#x201C; Summaries of EU legislation, accessed 30.09.2014

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Committee on Foreign Affairs I

Emerging enemies - with the Islamic State continuing its Islamisation; instances of mass executions, severe armed conflicts and ethnic cleansing persist. What should the role of the EU be in containing such entities fuelled by violence, religious fundamentalism and territorial ambition? by Francesco Colin (IT)

I. Key Terms 1. Islamisation: whilst its original meaning refers to the process of conversion to Islam, the term is often attributed to a forced reorganisation of society in a radical Islamic socio-political scheme1. 2. War on terror: “It is a global military, political, legal and ideological struggle employed against organisations designated as terrorist and regimes that were accused of having a connection to terrorists or presented as posing a threat to the US and its allies in general”2. 3. Radicalisation: bearing in mind that this concept is rather problematic, since no academia or government accepted a universal definition we can use a ‘working’ definition of violent radicalisation as the ‘socialisation to extremism which manifest itself in terrorism’3.

II. Key Questions 1. What is the Islamic State? a. What are the aims of the Islamic State? b. How does the Islamic State intend to reach its goals? c. What problems does the existence of the Islamic State create? d. How is the Islamic State funded? 2. What are the reactions of the international community? a. Is there a common international stance? b. What is the reaction of the Heads of State of influential countries? c. What is the stance of international organisations regarding the Islamic State? d. How are neighbouring countries reacting to IS actions? 1 Mneimneh H., “The Islamization of the Arab Cutlure”, The Hudson Institute, 18 March 2008 2 “War on Terror Law and Legal Definition”, US Legals 3 Expert Group on Violent Radicalisation, “Radicalisation Problems Leading to Acts of Terrorism”, submitted to the European Commission 15 May 2008

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3. What military and diplomatic actions are legally possible? a. What do the various stakeholders want to do and why? b. Which actions are permitted by International law? c. What is the legal framework in which the EU is moving?

III. Social Relevance The EU is not an outsider to the current Middle Eastern situation4. Beginning with the direct attacks on the EU or to its citizens, the threat to national and citizen’s security is undeniable. Further, the humanitarian crisis of the region, besides having an effect also on the volume of migrants and asylum seekers entering Europe, is de-stabilising the region, reducing the chance of a more peaceful future. Moreover, the conflict is arising in a crucial area also for the production of oil: continuing the tendencies of the Arab Spring, tensions in Iraq could make the price of crude oil soar5 and eventually produce strains on the economy of the EU as it depends heavily on energy imports from that region. Beside the humanitarian aid already donated, whether there should be a direct, military intervention in the area - with or without the EU’s contribution - is not an easy question to answer to. Direct military intervention would produce costs that the EU might not be willing to bear as military spending would take its toll on the respective finances of Member States. Additionally, the intricacies of an armed conflict in the region, which has proven to be a challenging terrain of unchartered territory, call for a strategic military intervention plan that requires international coordination and resources. Lastly, as the region becomes less and less stable and the Islamic State is seeking to recruit Europeans to its militant forces in both Iraq and Syria6, fears of religious clashes in the continent intensify. Whilst the EU is solidifying its engagement strategy to contain violence in the Middle East, it should also cater to the potential of internal conflicts that can be fuelled by religious clashes.

IV. Stakeholders There is a variety of entities that are involved in this topic, which engages a vast and diversified series of subjects and interests. First of all, the Islamic State (IS) itself, whose objectives are the absolute leadership over its neighbouring countries, the entire Muslim population and the complete 4Lafuraki B. A., “ISIS, A Serious Threat to the European Union”, Iran Review, 12 July 2014 5 Hume N. and Raval A., “Iraq violence lights fuse oil price spike”, Financial Times, 20 June 2014 6 How Belgium Became a Jihadist-Recruiting Hub, The Wall Street Journal, 28 September, 2014

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reconceptualisation of the Islamic religion in its purest and most traditional form7. The means the IS is using to achieve these abovementioned goals are a combination of actual warfare and fine propaganda aimed at spreading fear among enemies and attracting possible allies and soldiers8. Opposing IS are the dissimilar antagonists of the Islamic State. Firstly, the actions of the Islamic State have been regretted by the Muslim World, which is actively opposing the tactics of the IS9. Moreover, the Arab League is firmly affirming that the terrorist organisation has to be stopped, condemning terrorist acts and expressing its concern particularly about the situation in Iraq10. It has also endorsed a resolution of the U.N. Security Council that asks for the suppression of supports to the Islamic terrorist organisation operating in Iraq and Syria11. The concerns of the U.N. Security Council have been formalised in a resolution12 that among other statements condemns the widespread violation of human rights, urges all States to collaborate to cease the violence in the region underlining regional cooperation. The Western world and the Middle Eastern neighbouring countries represent a big piece of the puzzle as well. The Western world, in a coalition led by the United States, is preparing -and has already commenced, albeit partly- a military plan to eradicate the terrorist group, without considering any ground engagement13. In particular, the United States are willing to promptly defeat the new-born enemy due to the symbolic significance of the beheading of journalists James Foley and Steven Sotloff and to the historic role that the United States have as a world power and guardian of democracy and its principles14. The United Kingdom is also willing to uproot the Islamic State, because of the beheading of a UK humanitarian aid worker -David Haines- and partly because of their special relationship with the United States. The recent British Parliamentary vote in favour of air raids on IS’s troops in Iraq is a vivid example of the firm will to respond to such crimes15. Moreover, the beheading of the French mountain guide Hervé Gourdel has led Mr. Hollande, the President of France, to affirm that this crime will not stop France’s will to fight against terror16. Once again, the EU is also involved in the situation: the two abovementioned episodes and the past terrorist attack on the Jewish Museum in Brussels (made by a jihadist returning from Syria) demonstrate that there are no safe borders, especially when the conflict is so close17. During a NATO summit, the organisation agreed to support, via the use of airstrikes and supplies, 7 Masi A., ”Beheading video sends brutal ‘Message to America’: What Does ISIS Wants?”, International Business Times, 19 August 2014

8 “What is Islamic State?”, BBC News [continuous updates] 9 Cahal M., “Isis ‘is an offence to Islam’, says international coalition of major Islamic scholar”, The Independent, 25 September 2014 10 “Arab League condems ISIS and calls on formation of national unity government in Iraq”, Middle East Monitor 11 “Arab League Vows to Confront ISIS”, NBC News, 7 September 2014 12 Resolution 2170 (2014), U.N. Security Council, 15 August 2014 13 Pengelly M., “Obama repeats no US troops on ground against Isis as Egypt offers support”, The Guardian, 20 September 2014 14 Colum L., “Obama to U.N.: OK, America Will Be World’s Police”, Foreign Policy, 24 September 2014 15 Watt N., “RAF readies for Iraq bombing missions after MPs endorse action against Isis”, The Guardian, 26 September 2014 16 Johnson C. and Willsher K., “French tourist beheading in Algeria by jihadist linked to the Islamic State”, The Guardian, 25 Sep-

tember 2014 17 Stute D., “Opinion: Why ISIS in Iraq is a threat to Europe”, Deutsche Welle, 16 June 2014

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the Iraqi and Syrian forces that are fighting against the IS18. This coalition,19though led by the United States nevertheless involves some Arab states as well - Egypt, Iraq, Jordan and Lebanon amongst others20. Their participation is mainly due to two reasons; firstly, the Islamic State is threatening the inhabitants of such regions, threatening to eliminate every Muslim who is not going to affiliate to its cause21; secondly, the warfare in the region is causing an unprecedented increase in migration flows that is concerning the entire region, creating a significant humanitarian emergency22, 23. Syria and Iraq are crucial actors as well. The first inserts the conflict with the Islamic State in the already problematic context of the Civil War24 - which started back in 2001 -, while the latter is struggling to face the terrorist menace with its US-trained troops. Lastly, Turkey represents another key actor, given the fact that it is the only NATO country in the region and it is a well-known access corridor for foreign fighters. Upon the return of hostages to Turkey, president R.T. Erdoğan vouched his country’s support to the US-led military operations against the Islamic State. Turkey hosts a major US base in the southern town of Incirlik and, as Turkish President Erdoğan asserted25, his government will provide logistic and military support to the operations given the geopolitical significance of Turkey’s involvement in the efforts to contain the IS and its violent tactics.

V. Conflicts The conflicts between the abovementioned stakeholders can be seen in three macro-areas. Conflicts between the Islamic State and the Western world, the concrete conflict between Syria and Iraq’s governments and the self-proclaimed territorial authority of the IS over some of those regions and the conflict between the Islamic State and the Muslim-World. The IS has -among its objectives- the aim of destroying Western culture, which prompts the response of those who are concerned the most, justified by the direct threat posed by the actions of the terrorist organisation26. The United States and the United Kingdom, also due to their historical involvement in the region, are the first that are taking a concrete response. On the other side, the right to intervene as a third party in such conflicts is not always justified by international law, neither as a guardian of human rights, nor due to the direct -yet not concrete- menace to the nations’ integrity. However, the conflict is primarily posing a threat to the integrity of the already unstable govern18 Denver N., “U.S. Forms Anti-ISIS Coalition at NATO Summit”, Time, 5 September 2014 19 Fantz A., “Who is doing what in the coalition battle against ISIS?”, CNN, 17 September 2014 20 Ackerman S., “Middle East countries sign up to Obama’s coalition against ISIS”, The Guardian, 11 September 2014 21 “Iraq: ISIS Abducting, Killing and Expelling Minorities”, The Human Right Watch, 19 July 2014 22 Borger J., “Iraq humanitarian crisis has reached highest level, UN aid officials warn”, The Guardian 23Brumfield B., Levs J. and Tuysuz G., “200,000 flee in biggest displacement of Syrian conflict, monitor says”, CNN, 23 September

2014 24 Landis J., “The Battle between Syria and ISIS’s Rebel Militias”, The Clarion Project, 9 January 2014 25 Turkey ready to aid US air strikes against Isis jihadis in Syria, The Guardian, 23 September 2014 26 Hall M., “Jihadist returning to the UK from Syria are the cause of terror threat level increase”, Express, 10 September 2014

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ments of Syria and Iraq. The actions of the terrorist organisation in these regions are entangling the situation even more; the inflamed situation of the Syrian Civil War dwindles even further as the IS is now taking part in intra-rebels conflicts. In Iraq, the former Shia-dominated government, under the leadership of Nouri Maliki, marginalised Iraq’s Sunni community and created such conditions that favoured extremist Sunni IS emerge27. Iraq’s current government is seeking external help and is ready to play a key role in the elimination of the IS28. As far as the last conflict is concerned we have to distinguish the opposition to the Islamic State by the Islamic community and the Islamic Institutions. For the first actor, the key element of the conflict lies in the superficial identification of the self-proclaimed caliphate with the global Islamic community29, whilst for the second, represented primarily by the Arab League, whose main opposition is represented by the will to preserve the sovereignty of the countries involved30.

VI. Facts & Figures 1. Approximately 81,000 square miles are currently controlled by the Islamic State31

2. The amount of cash and assets of the Islamic States is assessed to be around two billion dollars.32 3. The Syrian government estimated that a total of 2,591 people were killed in Syria in August.33 4. The United Nation refugee agency reported that the number of Syrian refugees is above three million.34 27 “Islamic State: Where key countries stand” (Iraq section), BBC News 28 “Iraq formally asks US to launch air strikes against rebels”, BBC News, 18 June 2014 29 Qasim R., “A Muslim’s Ramadan Message to ISIS: You Don’t Speak For Islam”, The Huffington Post, 23 July 2014 30 “Arab League pledges to tackle Islamic State”, Al Jazeera, 7 September 2014 31 Noack R., “Here’s how the Islamic States compares with real states”, The Washington Post, 12 September 2014 32 Chulov M., “How an arrest in Iraq revealed Isis’s $2bn jihadist network”, The Guardian, 15 June 2014 33 Syrian Network for Human Rights’ (SNHR) report, 1 September 2014 34 “Needs soar as number of Syrian refugees tops 3 million”, UNHCR press release, 29 August 2014

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VII. Legislative Background Which actions are permitted by the International Law? Whereas the conflict between two sovereign States could be regulated by the International Court of Justice (ICJ) -if its Charter had been previously ratified -, the actions of a third-party in a conflict such as the one we are witnessing in these days is regulated by the Fundamental Charter of the United Nations - and by the customary international law, if the case cannot be solved inside the Charter’s framework. In this particular case, the analysis could vary immensely3536. On the one hand, there is evidence for the brutal actions of the Islamic State, often called massive and continuous violations of human rights37; whereas on the other side, there is the coordinated action of the United States and their Arab and European allies, concretely using military force in a foreign country – an act which, if not justified under proper legal basis, could produce relevant consequences. The key elements, as far as international law’s point of view is concerned, are (1) the definition of what or who is the Islamic State, (2) the determination of what concretely the IS has done, and (3) the international law’s regulation behind the justification of any third-part action in the actual scenario. It is also necessary to look for precedent positions taken by relevant actors with the power to do so - resolutions38 adopted by the U.N. Security Council are an example of such positions. What is the legal framework within which the EU is operating? In order to begin the analysis, it is advisable to clearly understand what the EU can do and how its measures are enforced39. The actor that is going to enforce such measures is the European External Action Service (EEAS)40. Nevertheless, the EU can move under the Common Foreign and Security Policy (CFSP) - i.e.: the agreed common policy for foreign, defense and security actions and diplomacy41 - and the decision made by the Foreign Affairs Council, the configuration of the Council of the European Union in which all Member States are represented by their Foreign Affairs Minister, chaired by the High Representative of the Union for Foreign Affairs and Security Policy. The Press Release of the last Foreign Affairs Council42 is a vivid example of a typical decision on such matter by the Consilium. What have Member States already done? Despite the continuously evolving situation, some Member States have already decided which measures to enforce in order to confront the Islamic State. While some Members States have preferred to send humanitarian aid, others have set up air strikes against the IS’s controlled territories in Iraq. Other Member States that are supporting a more active engagement strategy are offering general military support – mostly in the form of weapons, military bases or other military assets provided to the coalition43. A notable example is the extraordinary support that the United Kingdom’s House 35 Kellaman J., “The Use of Force Against ISIS”, jurist.org (University of Pittsburgh School of Law), July 3 2014 36 Weller M., “Islamic State crisis: What force does international law allow?”, BBC News [continuous updates] 37 Naftali B.. “Islamic State’s Action ‘Close to Genocide,’ Says NATO Chief”, the Wall Street Journal, September 15 2014 38 Resolution 2017 (2014), U.N. Security Council, 15 August 2014 39 Factsheet on EU restrictive measures, Council of the European Union - Press Office, 29 April 2014 40 Capabilities, European External Actions Service 41 Its objectives are defined by the article J.1, title V of the Treaty the European Union (1992) 42 Press Release of the Council meeting on Foreign Affairs, Council of the European Union - Press Office, 23 June 2014 43 Freeman C., “Who is in the anti-Islamic State coalition and what they are contributing?”, The Telegraph, 26 September 2014

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of Commons has given to the British military in performing air strikes against the Islamic Stateâ&#x20AC;&#x2122;s territory 524 votes in favour and 43 against).

VIII. Keywords Islamic State; Islamic State of Iraq and Levant; Sunni & Shia Islam; Humanitarian emergency; US coalition; Military intervention; Funding sources; Religion vs. Extremism; Syrian Network for Human Rights (SNHR).

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I. Key Terms 1. Annexation: the forcible acquisition of one state’s territory by another. 2. Euromaidan: a civil uprising which came about as a response to the failure of then Ukrainian President, Viktor Yanukovych, to sign a trade treaty with the EU. The resulting conflict saw clashes with the police but also saw a division amongst the people as ethnic Russians supported greater integration with Russia rather than the EU. This conflict laid the groundwork for the Crimean crisis to come.1 3. Crimean conflict: Subsequent to Euromaidan, Yanukovych was replaced with a pro-EU leader, Petro Poroshenko. Russian ethnic minorities were unhappy with this further Westward leaning and thus set about seeking the separation of Crimea from Ukraine. In the conflict that followed Russia invaded Crimea and supported the pro-Russian rebels militarily. A referendum was held on Crimean reunion with the Russian Federation and was carried by 95% of votes cast. The US and EU have both declared the referendum illegal and will not recognise the result.2 4. Territorial Integrity: a principle of international law that deems any act of a nation to promote the secession of a territory of another state, or any military action to force such a border change, to be illegal.3 5. Diplomatic Antagonism: the use of diplomacy as a means by which to destabilise the relations between states or to force the hand of a state under threat. Russian President Vladimir Putin has suggested he is capable of taking the capitals of the Baltic states in two days, a clear provocative statement towards Russia’s eastern neighbours.4 6. EU-Russian Relations: the Ukrainian conflict is a manifestation of a wider power play between the EU and Russia. Russia seeks to consolidate its Eurasian Partnership while the EU seeks to agree on an Eastern Partnership with the former Soviet states bordering Russia. So far Russia’s efforts have been the more emphatic, with Russian President V. Putin meeting with Yanukovych to encourage him not to sign the treaty with the EU, as well as President Putin’s decisive actions in the annexation of Crimea. All of this is done in the interests of Russian mi1 Outline of historical background to Ukrainian crisis and the prior history with Russia 2 Overview of the Crimean referendum 3 Definition and historical narrative of territorial integrity 4 Threats still coming from the Russian executive

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norities in these countries that form the border between the EU and the Russian Federation.5

II. Key Questions 1. What is the status quo of the relations between Russia and the EU following the Crimean conflict? a. What has the effect of diplomatic sanctions been for both EU and Russia? b. What has been the resposne of the international community to the diplomatic tensions between the EU and Russia? 2. What form should EU intervention in the Baltic states take? a. Is military action justified and if so, to what extent? 3. How best can the interests of ethnic Russian minorities in the Baltic states be respected, while preserving the sovereignty and security of these countries? 4. Given the willingness of Russia to contravene sovereignty in this conflict, what role does diplomacy have in creating a disincentive to a repeat of such actions?

III. Social Relevance As the EU expands eastwards, security becomes a growing concern both internally and externally. Internally, EU citizens question the membership of new countries if their addition increases tensions with Russia, and puts not only these new Member States but also other EU Member States at risk. Externally, the EU is now a major broker on the international stage for both peacekeeping and defense. Itâ&#x20AC;&#x2122;s ability to hold its own with other major powers such as Russia is key to its legitimacy in further negotiations. Further to this, the security of the peoples of the Baltic states is at risk. The rhetoric of the Russian government towards the Baltic states has become similarly aggressive as that previously reserved for Ukraine. Recent reports suggest President Putin has threatened invasion of the Baltic states, claiming their capitals could be claimed in two days. As this causes the Baltic states to look to their borders, Russia has also sought to increase tensions within the Baltic states.6 Russian minorities have been incited as Russia claims they may need to intervene to protect ethnic Russians from xenophobia that the Russians claim they are experiencing. Civil strife would be an unwelcome addition to an already fraught area. This is particularly crucial because it was under the cover of civil conflict that Russia justified the invasion of Crimea. The most significant costs of this conflict are borne by Ukraine and the Baltic states. As winter draws 5 An analysis of what has cost Europe the upper hand to Russia as conflict in Ukraine developed 6 Concerns of Baltic states and its neighbours over Crimean annexation

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near the EU and Russia are locked in negotiation over the price of natural gas sold to these countries.7 This is an example of how diplomatic tensions over the region have led to politicisation of trade in the region. Every negotiation is part of an ongoing power struggle between these two super powers.

III. Stakeholders Baltic States – Three northern European Member States located to the east of the Baltic sea – Lithuania, Latvia, and Estonia. These states all gained independence from the Russian Empire subsequent to World War 1 until they became part of the Soviet Union. They all possess significant Russian minorities which give complexity to this conflict.8 EU – The Baltic states in question are both members of the EU and of NATO, of which the EU is a key strategic actor. Thus, in terms of security, responsibility lies squarely with the EU to protect the Baltic states by treaty. Furthermore the Ukrainian crisis arose from the progressive integration of Ukraine into the European market. Thus in order to defend the right of the EU to continue such relations with states to the east, the EU must take a stand in this conflict. The European Commission, under José Manuel Barrosso’s leadership, maintain control of diplomatic efforts for the EU. Should the conflict escalate the Common Foreign and Security Policy will require EU Member States to coordinate military forces amongst themselves and the NATO members. Russia – Largely concerned by the expansion of the EU eastwards, it is not only a fear of Europe that motivates Russian action in Ukraine. Russia, together with Belarus and Kyrgyzstan, recently launched the Eurasian Economic Union. In recognition of the benefits of free trade Russia has developed this alternative to the EU. Russia was hopeful Ukraine might join the Eurasian Union. Ukraine is a key trading partner of Russia as well as being important in an infrastructural context for the distribution of Russian energy supplies to the EU and Ukraine itself.9 USA – US involvement stems from their commitment to NATO. They have been heavily criticised for their attempts to steer clear of Russian-related disputes. This was most clear when they opposed Georgia’s interest in joining NATO around the time of the Russo-Georgian conflict. The Baltic states are NATO members and thus US involvement is required in order to protect the legitimacy of NATO. North Atlantic Treaty Organisation (NATO): An intergovernmental military alliance based on the principles of mutual defense upon attack from an external party. Due to the membership of the Baltics within this alliance, this causes tensions to be high with the potential for military threat from Russia. Troops have been promised in order to maintain the borders of the Baltics and to establish a credible defense should Russia continue its offensive beyond Crimea. 7 Ukraine prepares for shortages of energy as EU seeks last ditch effort to resolve the dispute 8 A nuanced look at the threat to the Baltic states and others, which factors in the presence of ethnic Russian minorities 9 The Eurasian Economic Union

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United Nations (UN) - The role of the UN is limited while Russia maintains veto power in the UN Security Council which prevents it from taking a stance on the conflict. This power is being called into question as reform is sought in the rules of veto power to make exception for the case where grave humanitarian concerns are presented.

V. Conflicts The difficulty faced by the EU is the unpredictability of Russian actions in the current context. While it is easy to vilify Russian intentions as simply an unjustified incursion by Russian forces, the reality is far more complex. The Russian minorities in Crimea and all of the Baltic states are significant and they do bear significant ties to Russia. Thus they are not so easily dismissed in resolving this conflict. With internal support from Russian minorities the threat of NATO and EU or even US intervention is not enough to deter Russia at present. In Lithuania, Russian minorities continued to settle after the Soviet Occupation due to an upsrge in construction which led to demand for labour. This means that certain industrial towns have majority Russian populations. In Estonia, the impact of Russian â&#x20AC;&#x153;population transferâ&#x20AC;? into Estonian territories has had a long lasting impact, such that 25% of the population is Russian. Tensions have arisen from the requirement for competence in the Estonian language as a precursor to citizenship which Russia sees as inhibiting for many Russians in Estonia. Latvia bears the best relations of the three to its Russian population. All Russian inhabitants were entitled to citizenship in the post-war era as well as right to compensation for Soviet confiscation of property. They are a recognised national minority and are thus represented in the national parliament. In order to account for this the EU and NATO have sought to let the region act independently at present, seeking to negotiate through Eastern partners.10 EU or NATO intervention has the drawback of lacking historical precedent in this conflict which is not to be ignored. The Baltic states have much greater legitimacy in forming their own defensive force, thus forming such a force is less problematic in terms of upsetting what is already a tense region. It is important to consider this when examining the best action for the EU. While intervening could prove decisive in warning off Russian forces or in protecting Baltic borders if conflict does arise, this will undoubtedly come at the cost of numerous lives. The other side of this conflict is the diplomatic undercurrent that set the crisis in motion. Part of the motivation for ensuring the Association Agreement go ahead is to signify that Ukraineâ&#x20AC;&#x2122;s progressive integration into the European market is not up for discussion with Russia. Yet the EU has conceded to delay the implementation of the treaty in order to assuage Russian concerns that it will damage 10 Growing role of Poland within the EU as a broker with our Eastern neighbours

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their market share in the EU and in Ukraine.11 During the hiatus in the implementation of the treaty (which has already been signed) negotiations are nominally on-going to rectify Russian concerns. Are Russian concerns legitimate? Does the EU need to factor in the economic worries of the nearest neighbouring super power?12 Both in terms of security and diplomacy it is clear that the choices the EU faces are ones they have not faced before. The relationship with Russia and the Baltic states is at stake, as the actions in this current crisis will set precedent for the power relations in the peace that it is hoped will be established for years to come.

VI. Facts & Figures 1. The Baltic states consist of Lithuania, Latvia, and Estonia. 2. Ukraine, Lithuania and Estonia are set to form a joint military force to serve as a peacekeeping force as well as a potential NATO base. 3. NATO has agreed to increase its presence in the Baltics, with Estonia serving as a key base due to its developed military infrastructure.13 4. Percentage of Russians in populations of Baltic states: Latvia - 26% Estonia - 24% Lithuania - 6% 5. Russia has a history of significant use of its veto power in territorial and statehood disputes. Poland has again broached a French proposal to recognise an exception to veto power in times of grave humanitarian concern.14

VII. Legislative Background The EU-Ukraine Association Agreement 2014 is an agreement that is at the heart of the Ukrainian crisis. The failure of Viktor Yanukovych to sign this agreement sparked the Euromaidan protests. The EU has given way to Russian requests by agreeing to delay the implementation of this agreement in full until 2015 in order that they might seek to negotiate on the impact this will have on the Russian economy due to the loss in competitiveness.15 CFSP - The overarching policy on Security for the EU. The mandate and overall goals of the EU are set out by the European Council, yet most decisions are subject to unanimity (with the exception of 11 Outline of events in delay of implementation of EU-Ukraine Association agreement 12 This article outlines a non-Western perspective which lays blame for the Ukrainian conflict squarely at the feet of Western

powers ignorance of realist consequences in their relations with Russia 13 An interview with NATO chief, Anders Fogh Rasmussen, on NATOâ&#x20AC;&#x2122;s plans for the Baltics 14 Background to the history of UNSC reform and the current implications 15An excerpt from the Association Agreement

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certain military operations which can be achieved by qualified majority).16 CSDP - Common Security and Defense Policy was an amendment to the EU founding treaties brought in under Lisbon. It confers NATO-like responsibilities for mutual defense on Member States (with the exception of traditionally neutral countries). It also contains a specific mandate for military involvement of Member States for the purpose of post-conflict stabilisation.17 The Partnership and Cooperation Agreement entered into with Russia sought to prevent such an occurrence as this due to strength of trade ties and cooperation. This spanned from encouragement of trade and investment to promotion of consolidation of democracy and human rights protections. The current crisis has led to a collapse of such cooperation.18 EU trade sanctions on Russia - The Council of the EU initiated a host of sanctions, involving a cutting of diplomatic ties as well as economics sanctions. Trade of energy, military, or technological goods is prohibited, while the trade of financial goods is subject to a limit of 90-day maturity.19

VIII. Keywords EU-Russia relations, diplomatic aggression, territorial integrity, Baltic states, Crimean conflict, trade sanctions, NATO presence in the Baltics

16 An outline of the CFSP 17 An outline of the CSDP 18 Summary of the principles of the PCA with Russia 19 Summary of sanctions implemented by Council of EU against Russia

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I. Key Terms 1. Climate change: a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods.1 2. Greenhouse gas (GHG): Any gas that absorbs and emits infrared radiation emitted by clouds, the atmosphere and the Earth’s surface in the atmosphere, thereby causing the greenhouse effect which causes climate change. The primary greenhouse gases are CO2, N2O, CH4, SF6, HFCs and PFCs.2 3. Food security: A situation in which “all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life”. The concept includes three pillars: food availability, food access and food use3. 4. Food industry: The complex global network of individuals, businesses and organisations concerned with processing, preparing, preserving, distributing and serving foods and beverages. 5. Yield gap: The difference between crop yields observed at any location and the crops’ potential yield at the same location given the agricultural practices and technologies.4 6. Diet gap: The human-edible crop calories that do not end up in the food system. The diet gap is caused by human-edible crops used as animal feed, essentially resulting in human food with a substantial loss of caloric efficiency, and food waste5. 7. Common Agricultural Policy (CAP): the set of legislation and practices adopted by the EU to provide a common, unified policy on agriculture. The CAP is based upon two pillars – the first funds production support via direct payments and price support while the second funds rural development measures.6

1 The United Nations Framework Convention on Climate Change, 21 March 1994 2 Environmental statistics section on the official website of the United Nations Statistics Division 3 Official website of the World Health Organisation 4 J. A. Foley et al., Nature 478, 337–342 (2011) 5 P. C. West et al., Science 345, 325-328 (2014) 6 Official website of the DG Agriculture and Rural Development

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II. Key Questions 1. Why are there still so many malnourished people today and how does climate change endanger food security? a. How should the EU support producers in enhancing productivity whilst diminishing the impact of their activities on the environment? b. How can the demand for foods with high environmental impact be moderated and the supply and consumption of more diverse plant-based foods increased? c. How can the EU further enhance the resilience of its agricultural produce against the effects of climate change? 2. What steps can the EU take to decrease food waste along its food supply chain and by consumers? 3. What role should the EU play in cooperating with non-European actors to enhance food security and decrease the negative externalities of agriculture on the environment?

III. Social Relevance Throughout history food security has been one of the greatest concerns for humanity as nourishment is essential for the survival and success of any community. This is reflected in the considerable impact that agriculture, as the primary supplier of food, has on our planet and the pivotal role of the CAP, which takes up 40%7 of the total EU budget, in the EU. During the last few decades, technological innovations and the efforts of the international community have enabled an impressive decrease in hunger around the world. However, today there are still 850 million people8, both in the developed and developing world, that suffer from being undernourished. If no action is taken to reduce the impact of agriculture on the environment, irreparable damage will be done and this number is set to rise. Agricultural activities already use up to 40% of the worldâ&#x20AC;&#x2122;s land surface, account for 70% of water usage and, when taking all effects into account, are responsible for 30% of greenhouse gas emissions. Besides, agriculture is a large polluter affecting eco-systems across the globe and a major driver for the loss of the planetâ&#x20AC;&#x2122;s biodiversity9. Given the unique interdependence between agriculture and the environment, these negative externalities threaten to create a vicious cycle in which climate change negatively affects agricultural productivity, demanding more intensive agricultural practices which in themselves further exacerbate climate change and its consequences. The severity of the agricultural puzzle is further augmented by the expected increase in the global 7 Key Graphs & Figures published by the European Commission 8 The State of Food Insecurity in the World 2012, FAO (2012) 9 P. Smith and P. J. Gregory, Proceedings of the Nutrition Society (2013), 72, 21-28

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population by up to 9 billion by 205010 and the forecasted increase in overall wealth leading to a consumption shift towards large impact food such as meat, eggs and dairy. The combined effect of these two trends will result in demand for agricultural output roughly doubling by 205011. Ideally, agricultural output will increase while negative externalities on the environment should be neutralised. This is only possible when everyone contributes. One thing is certain; no one will remain unaffected by this issue. It determines what we will get on our plates during the next decades, if anything at all, and what price we will need to pay for it. Suggested Links for Further Reading • TED talk on “the other inconvenient truth” • Article on feeding 9 billion • Article introducing the future food challenges • EU fact sheet on the link between agriculture and climate change • Article on the doubling of food demand • Paper by P. Smith on climate change and sustainable food production

IV. Stakeholders A first important group of stakeholders are farmers whose operations will be affected by climate change. They need to change drastically in order to increase production whilst reducing the effect of their activities on the environment. They, however, are far from a homogenous group and depending on what they produce, in which part of the world they operate and at which scale, different farmers might have different interests. It is certain that the transition will come at high cost for some, whilst creating opportunities for others. Many farmers belong to a farming association, e.g. the World Farmers’ Organisation, Copa-Cogeca, and many national and produce-specific associations, that represents their interests. A second group consists of the complex network that makes up the food industry, partly represented by FoodDrinkEurope and the International Feed Industry Federation, and will have a crucial role in creating food security. The same remark holds as for farmers; it is a highly heterogeneous group with different interests depending on location, scale and activity. The general public is a third important group as its stakes in future food availability, prices and the effects of climate change are tremendous. Besides, as consumers the general public has a large active role to play in ensuring food security and environmental sustainability of the food system. The diet choices made, especially the portion 10 State of world population 2011, UNFPA (2011) 11 D. Tilman et al., Proceedings of the National Academy of Sciences, 108, 20260-20264 (2011)

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of meat, eggs and dairy consumed, as well as the stances taken towards technological innovations, such as genetic modification, will play a crucial role. In the EU it is the European Commission who has the right to initiate new legislation and monitors compliance with existing policies in this policy field. The individual Member States in turn are responsible for the implementation of the common policies. However, as this is also a global issue, non-European governments play an important role and international cooperation will be crucial. In this sense the United Nations, and especially its Food and Agriculture Organisation, are relevant stakeholders as they organise research, public campaigns, and international cooperation and coordination on the issue at hand. Besides all this there is a large group of Non-Governmental Organisations striving for environmental protection and other interest groups, think tanks and academic institutions that have a voice in the debate and will play a role in the instigation and implementation of policy.

V. Conflicts A first conflict is between the choice for food security and the recognition of both food security and environmental sustainability as two sides of the same coin. Part of this is ensuring resilience of agricultural produce against the effects of climate change. Today, there is a broad consensus supporting the latter leading to the challenge of feeding more people with less environmental impact. From this consensus the mostly accepted conclusion is drawn that future increases in food supply need to be met without increasing the agricultural area. The debate over how to address this global food challenge has, however, become polarised. On the one hand there is the production view that focuses on closing the yield gap by enhancing production efficiency in the food industry mostly through the implementation of better technologies. Within the production view there is dispute between proponents of large-scale conventional agriculture12 and proponents of local and organic farms13. Meanwhile there is a movement proclaiming that aquaculture is the solution14. On the other hand there is the consumption view15, focusing on closing the diet gap, which requires changes to the dietary drivers that determine food production and demand restraint. The former focuses on lowering the consumption of high impact food such as meat, eggs and dairy, and the latter on the overconsumption by many Western households. There is also a view that assumes reducing food waste16 all along the food system as pivotal. Finally there is a socio-economic view17 that requires changes in how the food system is governed. 12 http://www.theguardian.com/uk/2007/apr/18/foodanddrink.food 13S. Small, Food Thank by the numbers: Family Farming, 2014 14 J.K. Bourne, How to farm a better fish, National Geographic, 15 K. Ravilious, Cutting meat consumption could feed 9 billion, 2013 16 http://www.tristramstuart.co.uk/foodwastefacts.html 17 http://www.humanium.org/en/fundamental-rights/food/crisis-explained/

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It assumes unequal relationships between and among consumers and producers across and within countries as the cause of the issue at hand. It argues that hunger (and obesity) is fundamentally an issue of income distribution rather than of food shortages per se and that environmental production issues are caused by over- as well as under-application of agricultural inputs. Traditionally the production view has prevailed and it still does in the existing policy focus. However, among experts it is more and more accepted that food security is a multifaceted challenge; the solution to which will involve all of the aforementioned aspects. Suggested Links for Further Reading • Article on the scope for climate smart agriculture • Article about the paper ‘How much land-based greenhouse gas mitigation can be achieved without compromising food security and environmental goals?’ • TED talk by Tristram Stuart on food waste • Paper by T. Garnett on the problems, perspectives and solutions for food sustainability • Article by Godfray on the challenge of feeding 9 billion

VI. Facts & Figures 1. Whilst aggregate agricultural emissions are projected to increase by about 13% during the next decades, agriculture is believed to have the potential to mitigate close to 100% of its direct emissions.18 2. The 16 foods that account for the most calories consumed worldwide, plus cotton, occupy 95% of the irrigated agricultural land in the world, while consuming 92% of irrigation water and 70%of the fertilizer.19 3. Approximately 30 to 50% of food production is wasted.20 4. Reducing food waste just in the US, India and China could feed an additional 400 million people. 5. Improving crop yield to 50% of the potential yield (including large potential in Eastern Europe) could feed 850 million more. And, if the crops now used to feed livestock were used to feed people directly, enough calories would be freed for 4 billion people.21 6. Western Europe accounts for 11% of the global diet gap.22 18 P. Smith and P. J. Gregory, Proceedings of the Nutrition Society (2013), 72, 21-28 19 P. C. West et al., Science 345, 325-328 (2014) 20 Ibid. 21 Ibid. 22 Ibid.

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7. Coupling demand-side measures with sustainable intensification could, at maximum, cut away half of all global emissions at the 2011 level, even without any actions in transport, industry or other sectors.23 8. About half of the nutrient inputs on farmland are in excess, with large imbalances across regions and crops. Furthermore, efficiency gains are possible by altering the timing, placement, and type of fertilizer 24

Suggested Links for Further Reading • Article by P.C. West, Leverage points for improving global food security and the environment

VII. Legislative Background The EU is very well aware of the risks posed by climate change and the crucial link between agriculture and the environment. Article 6 of the Treaty of Amsterdam25 requires that all EU policies be in line with environmental goals. Especially since the most recent reform, preserving the environment and dealing with climate change is an essential aspect of the Common Agricultural Policy (CAP). Besides, the CAP contains several measures for enhancing agricultural productivity and ensuring food security in the EU26. Also, in 2009 the European Commission presented a White Paper laying out a European framework for action to improve the resilience of agricultural produce against the effects of climate change. The White Paper was complemented by the report “Adapting to climate change: the challenge for European agriculture and rural areas”. Beyond that, a European Commission staff working document “The role of European agriculture in climate change mitigation” has been published. The role of agriculture in the fight against climate change is dealt differently within the EU’s climate policy. Non-CO2 emissions from agriculture are treated in the Effort Sharing Decision. In its pro-

posed Policy Framework for Climate and Energy 2020 to 2030 the European Commission identifies the possibility that agricultural emissions might be treated as an explicit third pillar, separate from both the ETS and non-ETS sectors. Horizon 2020, the EU Framework Program for Research and Innovation, includes research plans focused on the issue at hand such, as the European Innovation Partnership for Agricultural Productivity and Sustainability. Besides, the Joint Programming Initiative Agriculture, Food Security, and Climate Change involves 21 European countries and aims to address the challenge of providing sufficient food through 23 P. Smith et al., Global Change Biology, 19, 2285-2302 (2013) 24 P. C. West et al., Science 345, 325-328 (2014) 25 http://www1.umn.edu/humanrts/instree/EUAmsterdam-treaty.pdf 26 Introduction to todays CAP

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sustainable agriculture in the context of climate change. Suggested Links for Further Reading • Report on the adaptation of the CAP to climate change • Overview of the EU’s actions concerning agriculture and climate change • Overview of the EU’s policies concerning agriculture and the environment (see also menu right hand side) • Synthesis report for the European Parliament on technology options for sustainably feeding 10 billion people • Agriculture and Forestry in Horizon 2020 • Joint Programming Initiative Agriculture, Food Security, and Climate Change

VII. Keywords Food law, joint challenges of climate change and food security, climate smart agriculture, agriculture and climate change, feeding 9 billion, agricultural productivity, climate friendly agriculture, etc.

This topic is sponsored by Origin Green

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Meta-austerity – while market confidence has improved and GDP growth in EU and the Euro area has been forecasted to reach 2.0% and 1.8% respectively in 2015, the ECB has had to introduce negative interest rates and lower lending rates to quell fears of possible price deflation. How should the EU sustain the economic recovery whist preventing negative monetary externalities? by Christian Browne (UK)

I. Key Terms 1) Central Banks: national banks which provide financial services for governments and are responsible for monetary policy, the issuing of currency, and can also act as a lender of last resort to distressed banks.1 2) European Central Bank (ECB): the central bank of the Eurozone established in the Maastricht Treaty with the main aims of price stability (keeping inflation low) and financial market stability. The Executive Board which consists of the president, Mario Draghi, and five other members controls the day-to-day operations of the bank.2 3) Eurozone: the 18 Member States which have adopted the Euro as their currency. A governor from each nation’s national bank sits on the Governing Council of the ECB and defines monetary policy for the euro and sets interest rates along with the Executive Board, this group is known as the Eurosystem. 3 4) European System of Central Banks (ESCB): consists of all 28 Member States’ national central banks which work together under the aims established in the Maastricht Treaty primarily being the stability and prosperity of European economies. One governor from each national central bank sits on the General Council of the ECB to deliberate future Eurozone matters such as succession of new members.4 5) Austerity: A set of policies introduced by government which focus on bring the government budget into balance – the focus is usually on cutting expenditure and increasing revenue.5 6) Deflation: the continual decline of the general level of prices across a long period of time. It is associated with decreased spending and increased unemployment due to a lack of demand in the market. The Great Depression in 1929 is an example of the effects of deflation.6 7) Inflation: the rate of increase in prices of goods and services. Inflation rates are calculated by equating currently how much more you would need to spend to buy the same amounts 1 Bank for International Settlements (2003), ‘The Role of Central Bank Money in Payment Systems’ pp 1-5 2 The European Union’s official description of the functioning and objectives of the ECB 3 The European Central Bank’s official description of the functioning and objectives of the Eurosystem 4 The Maastricht Treaty (1992) 5 The Economist (2013), ‘Stimulus vs. Austerity’ 6 BBC World Service (2008), ‘What is deflation?’

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of goods and services as you would before. Inflation is one of the factors which influence the level of interest rates set by commercial and central banks.7 8) Monetary Policy: the macroeconomic policy which involves setting of interest rates and the management of the money supply. For the Eurosystem, monetary policy is set out by the ECB.8 9) Fiscal Policy: policy set out by government in an effort to influence the functioning of an economy through tax and spending levels. The European Council drafts directives for EU Member States but does not have the competency to directly control fiscal policy.9 Rules surrounding fiscal policy were created in the Stability and Growth Pact and the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (TSCG or ‘Fiscal Compact’) – rules which the European Commission has the power to enforce. 10) Nominal Price: the value of goods and services including inflation. Nominal prices are those which you currently pay to buy products.10 11) Real Price: the value of goods and services excluding inflation. Real Prices are used to determine the impact of inflation on prices and how much more consumers are paying for the same good presently compared with the past. 12) Liquidation: the process of shutting down and selling remaining assets in an aim to recover debts.11 13) Interest Rates: the extra amount a borrower pays on top of a loan or the amount a saver earns when they deposit money at a bank. 14) Negative Interest Rates: the amount savers pay to deposit their money at a bank. The use of negative interest rates is rare and is used to deter banks from saving and instead use their money to invest and lend.12 15) Monetary Externalities: that which arises from changes in markets such as inflation and deflation. These can be caused by both unexpected changes in markets and also monetary policy itself. 16) Sovereign Bonds: a government bond which is issued in another currency usually one from a safer economy, they usually hold interest. Sovereign bonds are seen as safer loans as they are issued directly by governments rather than commercial banks. Releasing too many sovereign bonds can lead to sovereign debt.

7BBC (2012), ‘Inflation Explained’ 8The Bank of England’s official definition of monetary policy 9East Tennessee State University, ‘Fiscal vs. Monetary Policy’ 10Baumohl. B (2004), ‘The Secrets of Economic Indicators’, A Beginner’s Guide: Understanding the Lingo, pp 6- 8. 11 The United Kingdom government’s guide to liquidating a company 12The Guardian (2014), ‘What Are Negative Interest Rates?’

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II. Key Questions 1) What is austerity? a. What are the causes? b. What are the effects on consumers? 2) What are negative interest rates? a. Why are they being implemented by the ECB? b. What are the benefits for consumers? 3) What is price deflation? a. What are the causes? b. What are the positives and negatives for consumers? 4) How does investment prevent deflation? a. How is the ECB encouraging investment?

III. Social Relevance Consumers are able to spend primarily because of wages or welfare. Employment allows consumers to earn a wage and subsequently spend as well as save. It is important for businesses that consumers continue to spend as it means that they are able to sell more of their goods and services as demand stays constant. If consumers are unable to spend, for example due to unemployment or welfare cuts, businesses suffer as demand for their products decreases. Austerity has meant that unemployment has risen13 and welfare has been cut, this has decreased demand across the market as consumers can no longer afford to spend as much as they used to be able to. If a business is unable to sell more than their costs-to-run then they have no choice but to liquidate. This causes more unemployment and further decreases the amount of spending power consumers have. If demand decreases frequently over a long period of time, the average level of prices decreases and this leads to deflation. Deflation brings both positives and negatives to consumers. In the short term, prices of goods will decrease and wages will not align with deflation right away, this means that consumers will be able to buy more than before with the same amount of money. However, as wages align and companies reduce in size to accommodate for decreased demand, the consumer will be negatively affected by increasing unemployment and wage reductions. Furthermore, the real value of consumersâ&#x20AC;&#x2122; debts will increase as consumers will have to pay back more (in real terms) than before and with unem13 Hudson. P (2013), â&#x20AC;&#x2DC;How Unemployment Rates Affect The Economyâ&#x20AC;&#x2122;, Elite Daily

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ployment and wage cuts their ability to pay back loans will be constrained. Governments’ debt will also be deflated and this will mean that because the real value of their debt will increase they will have to spend more revenue on their debt than before, this means they will have to cut public funding further which exacerbates the effects of deflation.14 To combat deflation, it is essential that businesses have the money to keep running and keep people employed to ensure that they can earn a wage and spend in the market; investment from banks is essential in this. In a perfect situation, investment benefits both businesses and banks as those companies which prosper can afford to pay back loans with interest. However, like in 2007, if an investment does not pay off then banks can lose large amounts of money as companies are not able to pay back their loans. After the Recession, banks have been apprehensive about lending to businesses and consumers as there is a risk they will not be able to pay back their debts. This apprehension has meant that economies are unable to recover as demand stays low due to unemployment remaining high. However, increasing investment and decreasing saving will cause inflation in the market. This means that prices will rise though the real value of debts will decrease.15 This would primarily only be a positive effect for richer consumers and governments as they can still continue to spend even in times of inflation. However, poorer consumers will have to accommodate a rise in prices and if a consumer is unemployed this can be very problematic. Furthermore, interest rates on loans will increase as banks adjust for inflation, this will make it harder for consumers to take out loans if they are not in a position where they can afford to pay higher interest rates. Inflation may also cause problems for consumers working in publically funded jobs such as healthcare and state education; inflation will mean that wages will have to increase and if a government is not able to increase expenditure then they may be forced to reduce public workforce sizes.

IV. Stakeholders The European Central Bank is currently battling the apprehension of commercial banks to lend and invest. Commercial banks are learning from their mistakes of 2007, namely avoiding risky investments. This has caused commercial banks to park money at the ECB to gain interest on what they leave. However, this saving has meant that investment has decreased and economic growth is stumbling with economic activity in the EU being 2.7% below that of 2008. Negative interest rates, which have been reduced further from -0.1% to -0.2%16, at the ECB are intended to penalise commercial banks for saving at the central banks. The ECB intend that these negative interest rates will deter banks from saving and instead prompt them to start lending to consumers and invest in new projects. This will mean that consumers will be able to access more loans to use to spend in the market keeping aggregate demand high; this 14The Economist (2014), ‘Should We Worry About Deflation?’ 15 Economist (2011), ‘The Inflation Option’ 16 The Guardian (2014), ‘ECB in surprise rate cut move to help boost flagging eurozone’

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stable demand will secure jobs and reduce the risks of deflation.

V. Conflicts The main conflict facing the ECB is whether to make stringent monetary policy and guide the market to what they want to see and inherit the externality of inflation or let the market continue to operate on its own and possibly allow for deflation to occur. The ECB has made 400bn euros available to lend to banks at a low interest rate of 0.05% provided that they then use this money to lend to businesses and households. 17 This will increase inflation, for what they forecast to be 1.1% in 2015 and 1.6% in 2016, but will potentially cost the consumer as loans taken out by consumers before the ECB provided commercial banks with loans at these interest rates will be ones at higher interest rates. Increasing inflation will mean that it will become more difficult for some consumers to pay back these loans and balance a rise in prices. However, the ECB cannot avoid the possibility of banks investing in high risk investments and potentially losing large amounts of money. By allowing banks to lend more using low interest loans from the ECB, banks will potentially be less cautious regarding which investments they choose. The only way to avoid this is to allow the market to continue and hope that Member States can help stimulate growth through taxation and government expenditure. Though, in doing this the risk of deflation does not evaporate and the ECB cannot make monetary policy which counteracts deflation and does not cause inflation.

VI. Facts & Figures 1) The Eurozone economies grew by 0.3% at the end of 2013 up from 0.1% at the beginning of the year.18 2) There was zero economic growth in the Eurozone economy during the second quarter of 2014. 3) Unemployment in the EU was 6.2% in January 2008 and is currently 10.2%.19 4) Only 82bn of the 400bn euros the ECB has allocated to low interest loans has been taken by commercial banks.20 5) Inflation in the Eurozone rose by 0.1% more than forecasted to 0.4% in August 2014.21

17 http://www.theguardian.com/business/2014/sep/04/european-central-bank-money-quantitative-easing 18 BBC (2013), ‘Eurozone GDP Growth Gathers Speed’ 19 Eurostat 20The Guardian, 2014 ‘Eurozone Banks Give ECB’s Lending Programme a Lukewarm Reception’ 21 The Guardian (2014), ‘Eurozone Inflation Higher Than Estimated’

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VII. Legislative Background The ECB, as outlined in the Maastricht Treaty, is responsible for the monetary policy of the Eurozone and therefore accountable for economic developments stemming from interest rates and the issuing of euros. Since 2008, the role of the ECB has somewhat changed; it has been pushed to the forefront of European economics as the 2007 Recession led to Eurozone crises and a call for action from the ECB. As stated in the Maastricht Treaty, the ECB does not have the competency to directly control economic policy of Member States. This means that taxation rates and allocation of government expenditure is not in their control. The ECB must act independently of EU institutions and help develop European economies through the allocation of loans and changing of interest rates. Since 2008, the ECB has made more money available to Eurozone members who have suffered from economic crises in an attempt to prevent markets from collapsing and causing more Eurozone economies to collapse. By March 2008, the ECB had cut interest rates and they have continued to do so in an effort to make loans more available and practical for countries which are not in a position to pay back at high interest rates.22 By 2009, with interest rates slashed they set up a bond buying programme, which aimed to help economies stabilise in the short term. This was followed by loan packages to the Greek government in 2010 with cooperation from the EU and the Greek government to ensure that measures were put in place to help secure their economy. Further to this, the ECB had terminated its bond programme and now turned to remedying bad banking practices such as buildup of collateral. Stricter rules on loan packages and tightening of the Stability and Growth Pact saw the ECB attempt to prevent more crises, however, with Ireland requiring financial support at the end of 2010 more loans packages were given in cooperation with the IMF. Increased lending to banks and support for nation’s economies such as Portugal and Spain continued through 2011 and 2012. In an effort to ‘save the euro’ the ECB promised that it would buy an unlimited number of sovereign bonds to prevent economies with the euro from collapsing and subsequently dragging the value of the euro down. By 2013, the ECB started to look to the future and were given additional support by the EU through the creation of the single advisory mechanism which saw more attention drawn to future stability. Since then the ECB has had less need to give loan packages to nations and instead has turned its attention to the future and the role of commercial banks in economic recovery and growth. In 2014, the ECB has implemented two key policies, negative interest rates on saving and low interest loans to commercial banks. As the ECB has no competency in controlling how these banks run they have implemented these motions to attempt to prompt banks to start lending once again. But there is contention within the EU as countries such as Germany believe that these policies are not within the ECB’s competencies. Germany’s constitutional court ruled that the ECB must not ‘pursue its own economic policy’ and schemes such as the bond-buying programme means that the ECB determines more than it 22 European Central Bank’s timeline of actions since the financial crisis

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is supposed to since buying sovereign bonds directly effects a Member States fiscal policy and this is beyond the remit of the ECB. On the other hand, buying bonds allows the ECB to increase the money supply which allows prices to rise and can thus be a highly effective way to fend of deflation – similar policies have already been used by the Central Bank of England and the Federal Reserve in the USA. The implementation of negative interest rates clearly implies that the ECB are trying to control the markets in some way which could be construed as an ‘economic policy’ which the ECB is limited to not having.23 Though even with objections from certain member states, there are still questions over the effectiveness of ECB policies with only 82bn euros being taken from the 400bn euros made available to commercial banks. Mario Draghi has said that interest rate levels are at ‘rock-bottom levels’ and cannot decrease further, though in the past month the interest rates were cut once again to 0.05%.

VIII. Keywords Supply & Demand, unemployment, interest rates, austerity, European Central Bank, commercial banks, deflation, inflation, liquidation, central bank, Eurozone, real prices, nominal prices.

23 The Telegraph (2014), ‘German court warns there are ‘important reasons to assume’ ECB bond-buying is illegal’

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by Rosa Douw (NL) & Chris Papadogeorgopoulos (GR)

I. Key Terms 1. Apprenticeships: they are strongly regulated and based on employment contracts. Apprenticeships are always a component of a formal education programme and lead to an accredited qualification or certificate which, in turn, qualifies a person to work in a specific occupation1. 2. Traineeships & Internships: there is a great discrepancy across the EU when it comes to a common and clear definition of traineeships. However, across Member States the common defining characteristics of legal frameworks relating to traineeships are: (i) the general educational purpose; (ii) the practical element of learning; and (iii) the temporary character of the traineeship2. Note that the terms internships and traineeships are often used interchangeably and will be used accordingly hereinafter. 3. Small and Medium-Sized Enterprises (SMEs): Enterprises with small market share, less than 250 employees, and a turnover of less than €50 million annually. There are 3 types of SMEs: Micro-enterprises have less than 10 employees and an annual turnover of maximum €2 million; Small-enterprises have between 10-49 employees and an annual turnover of maximum €10 million; Medium-sized enterprises have between 50-249 employees3. 4. Multinational Corporations (MNCs): They are, in essence, corporations that have their facilities and other assets in at least one country other than its home country. Such corporations have offices in different countries and they usually have designated headquarters where they co-ordinate global management4. 5. Youth unemployment rate: the percentage of unemployed people in the age group 15 to 24 years old compared to the total labour force (both the employed and unemployed, but not the economically inactive people) in that age group5. 6. Employment Protection Legislation (EPL): consists of all rules and procedures that define the limits to the faculty of firms to hire and fire workers in private employment relationships. Its features are enshrined not only in law but also in collective and individual labour con1 “Study on a Comprehensive Overview on Traineeship Arrangements in Member States”, Rep. no. VC/2011/0176, European Commission, May 2012, pp.50-53

2 ibid, p.4 3 “What is an SME”, European Commission, n.d. 4 “Multinational Corporation - MNC”, Investopedia, n.d. 5 “Glossary: Youth Unemployment”, Eurostat, August 2014.

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tracts6.

II. Key Questions 1. What are the decision-making processes in place regarding employment policy in the EU? a. How much influence does EU have over Member States’ employment policies? b. Should the EU have more influence in Member States’ job markets? 2. Have there been any beneficial regulations regarding traineeships and internships at both the EU and national levels and what lessons can be drawn therefrom? 3. Where should the focus lie in strengthening and supporting traineeships and internships across Europe? a. Should the focus solely be on regulating employers’ practices? b. Should incorporating and promoting traineeships in education, including traineeships abroad, also be considered? 4. How can the EU effectively integrate non-state stakeholders in the formulation and implementation of employment policy?

III. Social Relevance Traineeships can provide useful skills and benefits to aspiring young professionals. One of the main benefits is the opportunity of trainees to develop a more in-depth understanding of, and get a valuable insight into, the work environment. Relevant tasks, high learning content and mentoring may also prove useful when it comes to professional development and career orientation in the labour market. Finally, the development of a range of practical skills, including time management, adaptability, team-work, interpersonal, communication as well as specific technical skills in their field should not be neglected. With youth unemployment rates in Member States reaching staggering percentages, traineeships and internships may be valuable transition belts from education to employment. Traineeships can also be a very effective entering point into the professional labour force. In effect, having experienced a traineeship or internship is very often considered a requirement by employers when hiring permanent staff. Given the current unemployment rate for people under 25 (see figure below), traineeships and internships might play a key role in bringing this figure down, as it is a more practical way of learning and educating, and can be a bridging feature in the transition of youngsters from education to work.

6 “Employment Protection Legislation”, European Commission, n.d.

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Seasonally adjusted EU-28 and EA-17 youth unemployment rates7 From this, one could argue that traineeships and internships can supply for more motivated people in the labour market that in the end will provide a better economically beneficial workforce.

IV. Stakeholders MNCs, SMEs, and business start-ups have an important role in providing high quality traineeships and internships to young people (15-24 years old) thus facilitating their transition from education to employment. Corporations are keen on recruiting competent interns and trainees8. Young people are introduced to the job market and are provided with practical employment experience and on-the-job training. Due to limited protection legislation however, several corporations are said to have substituted permanent positions with internships and traineeships, which produce less labour overhead costs and legal liabilities9. Young people, who are often but not limited to university students, look for an opportunity to enter the job market and acquire practical experience. With past work experience becoming a prerequisite even for entry-level employment opportunities, young people are becoming more prone to accepting internship and/or traineeship opportunities that offer them limited on-the-job training and 7 “Youth Unemployment Rates”, Eurostat, July 2014. 8 “Study on a Comprehensive Overview on Traineeship Arrangements in Member States”, Rep. no. VC/2011/0176, European Com-

mission, May 2012, pp.112-113 9 Tanya de Grunwald, “How to make the most of an unpaid internship”, The Guardian, September 2011

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minimal, sometimes nonexistent, remuneration10. Both the EU and Member States individually have a vested interest in the provision of high quality traineeships across Europe; The European Commission plays a key role in forming and implementing EU employment policies. Its functions include the (1) coordinating and monitoring of Member States’ policies, (2) promoting best practices in fields like employment, poverty, social exclusion and pensions, and (3) developing laws and monitoring their implementation in areas including rights at work and coordination of social security schemes11. The Directorate-General for Employment, Social Affairs and Inclusion (DG EMPL), is the designated division through which the aforementioned functions of the European Commission are carried out. The European Parliament12 and the Council of the European Union13 recognise the issues associated with traineeships and are entrusted with promoting good employment practices among Member States. The two aforementioned institutions alongside the European Commission promote further coordination of employment policies among Member States in an effort to harmonise standards and transcend domestic successes across domestic employment environments. National public authorities are also important in the complex stakeholder environment of employment policy. With legislative competence in the domain of employment being a special one, the EU is responsible for ensuring the coordination of employment policies, defining the broad direction and guidelines, to be followed by Member States14. The latter are imperative in formulating policies that cater policy to the needs of their respective national employment environments. Non-Governmental Organisations (NGOs), interest groups, national employment associations and European associations are also important in the policy-making process, regardless of the policy cycle stage at which they represent their respective interests. Suggested Links for Further Reading • Further information on DG EMPL • The European Parliament’s role in employment policy

V. Conflicts There are three main conflicts associated with this topic. First and foremost, with market experience being highly regarded by employers, young people seek to acquire work experience through internship and traineeship opportunities. While enterprises stand to benefit from offering traineeships, they often offer unfavourable terms and conditions; low protection, limited training and low, if any, 10 “Inferno for Interns”, The Economist, April 2011 11 “Policies and Activities”, European Commission, n.d. 12 “Employment Policy”, European Parliament, n.d. 13 “Council configurations”, Council of the European Union, n.d. 14 “FAQ on the EU competences and the European Commission powers”, European Commission, n.d.

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remuneration to name a few15. Such practices, despite their cost-cutting benefits to corporations, have adverse impacts on the experience of young professionals. Secondly, stricter legislation may also produce negative effects. It can be argued that the accessibility to internships may decrease with stricter rules governing such employment opportunities. Should corporations be faced with higher costs for offering traineeships, such opportunities may be limited. Enterprises may find it more economical to hire more experienced professionals instead of bearing the increasing costs of trainees. Such an eventuality would diminish the amount of internship opportunities offered by enterprises and further restrain young people from becoming employed. With this consideration in mind however, it should be clear that legislation should not be lenient but rather strategically targeted to incentivise enterprises to continue offering such opportunities whilst ensuring that young professionals’ rights are upheld. Thirdly, employment policy falls under a special competence between the EU and the Member States; the EU provides arrangements within which Member States must coordinate policy16. At the EU level, traineeships are firmly regulated. At the national level, some Member States more than others, have taken actions to protect trainees’ and interns’ rights and enhance their learning experience. However the issue of unregulated and often unpaid traineeships persists. If the aim is for all Member States to provide a certain quality of traineeships, how can the EU deal with such discrepancies among national employment legislations?

VI. Facts & Figures 1. There is a great diversity of traineeships, including: a. Traineeships which form optional or compulsory part of academic and/or vocational curricula, b. Traineeships in the open market, c. Traineeships as part of active labour market policies (ALMPs), d. Traineeships which form part of mandatory professional training, e. Transnational traineeships17. 2. Plurality regarding legislation framework between: a. Traineeships which form optional or compulsory part of academic and/or vocational curricula, 15 “Study on a Comprehensive Overview on Traineeship Arrangements in Member States”, Rep. no. VC/2011/0176, European Commission, May 2012, pp.116-120 16 “FAQ on the EU competences and the European Commission powers”, European Commission, n.d. 17 “Study on a Comprehensive Overview on Traineeship Arrangements in Member States”, Rep. no. VC/2011/0176, European Commission, May 2012, p.3

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b. Traineeships in the open market. 3. When it comes to financial compensation for traineeships: a. Almost five out of ten (46%) respondents say that it was unclear from the advertisement how much the traineeship was paid18, b. Almost six out of ten (59%) respondents did not receive any financial compensation during their last traineeship19. 4. Only six out of ten (62%) respondents with traineeship experience had their most recent traineeship based on a written traineeship agreement or contract with the host organisation or company20. 5. Traineeships in a foreign country are still a rarity: a. Just one in ten respondents with a traineeship have had a traineeship abroad21, b. While the majority of those who had not had a traineeship abroad say they were not interested or did not consider it (53%) and a quarter said that they did not have enough financial resources for it (24%), c. One in five said that they did not do a traineeship abroad due to lack of information (19%).22 Suggested Links for Further Reading • Further facts and figures regarding “The Experience of Traineeships in the EU” • For more information on traineeships’ diversity refer to pp. 4-5 and 29-39

VII. Legislative Background “Europe is characterised by a great variety of education and training systems, welfare and employment regimes, and school-to-work transition mechanisms, all of which have a direct impact on youth labour markets. Consequently, it is not surprising that there is an equally great diversity in the legislative frameworks which apply to the various forms of traineeships examined”23. Employment policy, as highlighted above, falls under a special competence shared between the EU and Member States; the EU provides arrangements within which Member States must coordinate

18 “The Experience of Traineeships in the EU”, Flash Eurobarometer 378, European Commission, November 2013 19 ibid 20 ibid 21 ibid 22 ibid 23 “Study on a Comprehensive Overview on Traineeship Arrangements in Member States”, Rep. no. VC/2011/0176, European Commission, May 2012, p.41

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their respective employment policies24. This gives certain space for Member States to cater policy according to domestic needs. The examples of national legislations and initiatives are numerous (see suggested links for further reading for comprehensive resources); a notable example is found in Finland. The policy’s main priorities include the active promotion of international mobility, which is seen as a critical element of the educational curriculum and youth employability. To this end, different actors promote such mobility, including the Centre for International Mobility (CIMO), an independent agency established in 1991. The number of higher education students undertaking transnational traineeships has increased constantly since 2000 with a remarkable increase in the last couple of years25. Turning to the EU level, one of the Europe’s 2020 headline targets is employment, and in particular aiming to reach 75% employment rate of women and men aged 20-64 by 202026. In achieving that goal, a smooth transition of young people from education to the labour market is crucial. Indeed, EU is well aware of that; the headline targets lay the foundations of structural reforms which the Member States have to carry out. In addition to the Europe 2020 headline targets, the Youth on the Move initiative, which builds on the success of Erasmus and Leonardo da Vinci, aims to improve young people’s chances of finding a job by helping students and trainees gain experience in other countries, and improving the quality and attractiveness of education and training in Europe27. Apart from the abovementioned programme, in 2010 the European Parliament has adopted a resolution on promoting youth access to the labour market, strengthening trainee, internship and apprenticeship status28. A major element therein is the Youth Guarantee29, aiming to ensure that young people do not remain unemployed for more than four months. In December 2012, the European Commission proposed the Youth Employment Package, a series of measures to help Member States specifically tackle youth unemployment and social exclusion30. Traineeships are a key element of the package and in particular of the Youth Guarantee, adopted by the Council of the EU in April 2013. In the wake of this package, the European Commission proposed a Quality Framework for Traineeships in December 2013; it will call on Member States to ensure that national law respects the principles set out in the guidelines, and to adapt their legislation where necessary. Suggested Links for Further Reading • This study provides a comprehensive overview on traineeship arrangements in Member Sta24 “FAQ on the EU competences and the European Commission powers”, European Commission, n.d. 25 “Study on a Comprehensive Overview on Traineeship Arrangements in Member States”, Rep. no. VC/2011/0176, European Commission, May 2012, p.66

26 “Europe 2020 targets”, European Commission, n.d. 27 “Youth on the Move, a Europe 2020 Initiative”, European Commission, n.d. 28 “Promoting youth access to the labour market, strengthening trainee, internship and apprenticeship status”, European Parlia-

ment, June 2010 29 “Youth guarantee”, European Commission, n.d. 30 “Youth employment: Commission proposes package of measures”, European Commission, December 2012

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tes, particularly refer to pp. 41-50, 56-67 and 82-87 • Further information regarding the “Youth on the Move” initiative • Promoting youth access to the labour market, strengthening trainee, internship and apprenticeship status • Background on the “Youth Guarantee” • European Commission’s communication “Towards a job-rich recovery” including “Quality Framework for Traineeships” working document

VII. Keywords Plurality of regulatory frameworks for traineeships, diversity of traineeships, supply of traineeships, traineeships abroad, transparent recruitment processes, employment protection, trainees’ terms and conditions, quality framework for traineeships.

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I. Key Terms 1. Eco-technologies: defined in this context as ‘all technologies (products, processes and services) whose use is less harmful on the environment, when compared with alternatives’1. 2. Eco-innovation: the actual development of eco-technologies. 3. Environmental Technology Verification (ETV)2: consists of an independent third party verification of the performance of new environmental technologies entering the market. 4. Public-private partnerships (PPPs): in most cases, PPPs refer to arrangements, typically medium to long term, between the public and private sectors whereby some of the services that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/ or public services3. 5. European Innovation Partnerships (EIPs)4: “EIPs are a new approach to EU research and innovation, focusing on societal benefits and a rapid modernisation of the associated sectors and markets”. EIPs are challenge-driven, focusing on societal benefits and a rapid modernisation of the associated sectors and markets. 6. Small and Medium sized Enterprises (SMEs): ‘enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding 50 million euro, and/or an annual balance sheet total not exceeding 43 million euro.’5 7. Horizon 2020: ‘EU’s biggest Research and Innovation programme ever with nearly €80 billion of funding available over 7 years (2014 to 2020), promising more breakthroughs, discoveries and world-firsts by taking great ideas from the lab to the market’6. Suggested Links for Further Reading • “What is ETV?”, the ETA Denmark is elaborating on the purpose of the ETV in an informative video, 2014 1 “Environmental technology for sustainable development”, European Commission, 2002, 122 final 2 EU Environmental Technology Verification pilot programme, European Commission, 2014 3 “http://europa.eu/legislation_summaries/internal_market/businesses/public_procurement/l22012_en.htm 4 EIPs website, European Commission, April 2014 5 Extract of Article 2 of the Annex of Recommendation, European Commission, 2003 6 “What is Horizon 2020?”, European Commission, 2013

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• A general overview of Horizon 2020 in a short video produced by the Innovation Union programme • Infographic ‘Eco-innovation in a nutshell’, European Agency for Competitiveness and Innovation, 2013

II. Key Questions 1. Why, considering the global awareness of environmental issues and in spite of initiatives such as the ETV, are investors still reluctant to invest in green technologies? a. Does the problem come from private investors being incapable of bearing the cost of such technologies? b. Is it because the ETV does not function efficiently? 2. How could the EU facilitate PPPs between the private sector - especially SMEs - and public institutions in order to allow more scope for large-scale projects? 3. Is the EU, through different pieces of legislation forming Horizon 2020, stimulating innovation; a. between private and public stakeholders? b. for eco-orientated enterprises - especially SMEs? c. in all regions of the EU?

III. Social Relevance The need for sustainability and eco-technologies has become vital in recent years, because of the global awareness of environmental issues and following scandals due to the use of products which generate excessive levels of pollution. Most EU citizens are aware of these challenges and try to adapt to such changes. However, they often question the utility of their actions when other large-scale projects are allowed to continue despite their negative impact on the environment. A top down approach is needed, with public authorities and enterprises leading the way. Thus, citizens would care enough to become eco-consumers and the market will have to adapt to the demand for green-technologies, creating a virtuous circle of supply and economic growth. Furthermore, the green-technology market is expected to create millions of jobs in the coming years. It is important to stress that green jobs are not just hi-tech jobs for the educated elite. For sure scientists, researchers and engineers are needed to develop cutting-edge technologies that will save

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energy and resources. However, such innovative solutions will need to be practically applied across a range of sectors like energy supply, construction and transport in both the public sector and its private counterpart. Such a prospect would aid the economic recovery after the 2008 financial crisis.

IV. Stakeholders The European Commission has a central role in most European issues, being the executive power of the EU, and especially this one since the European Commission is responsible for the bulk of the legislation of Europe 2020. Firstly, the European Investment Bank (EIB) and the European Investment Fund (EIF)’s roles are to implement each financial instrument facility on behalf of and in partnership with the European Commission. On one hand, the EIB provides loans to larger companies, or guarantees the loans of banks lending to them, and is responsible for the Risk-Sharing Finance Facility (RSFF)7 programme. On the other hand the EIF offers guarantees to banks lending to SMEs and -at a later stageinvest in venture capital funds providing start-ups and fast-growing firms. The EIF further manages the Competitiveness and Innovation Framework Programme (CIP)8. Secondly, the Executive Agency for SMEs (EASME), set-up by the European Commission, aims to manage on its behalf several EU programmes such as the programme for the Competitiveness of Enterprises and SMEs, a part of Horizon 2020 and the Eco-innovation initiative. They provide support to their beneficiaries, ensure that the programmes mentioned beforehand deliver results and deliver to the European Commission valuable input for its policy tasks. In a nutshell, the European Commission has the ultimate objective of helping to “create a more competitive and resource-efficient European economy based on knowledge and innovation”. SMEs and eco-friendly enterprises, which represent more than 90% of the European green-technology market, are at the core of the European Institute for innovation and technology (EIT) ’s strategy aiming to enhance PPPs9. In a market, suppliers have to follow the demand. Thus, European civil society occupies a key-position as potential consumers. They should indeed cooperate with enterprises to market test their products and services to decide whether investors should fund eco-innovative technologies10. In addition, Member States have a role to play as facilitators of networks of innovation actors, notably through PPPs. They have to ensure the promotion of such programmes and particularly the ETV in order to reach as many enterprises as possible.

7 RSFF explained, European Commission, 2007 8 CIP, Decision 1639/2006/EC of European Parliament and Council of the EU, February 2013 9 “Europe needs more entrepreneurship”, EIT, 2014 10 Concept of market-testing at a small scale, http://www.cbsnews.com/news/conducting-effective-test-marketing/

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V. Conflicts The unsuccessful introduction of many available environmental technologies onto the market was either due to the fact that the green-technologies remain very expensive for investors or because existing infrastructure, production and consumption systems can be an obstacle to commercialisation11. Consequently, the R&D and innovation processes are particularly important for eco-innovation. Many government initiatives have been introduced to help firms bring new environmental technologies to the market however the most prominent markets wherein such environmental innovations are introduced are limited to promising energy and transport related technologies. Moreover, with the recent introduction of the ETV in Europe, which makes its impact hardly measurable at the moment12, some investors already criticise this scheme because it does not take the testing phase into account (similar to the Canadian ETV model)13. As such, an applicant will be free to choose the test centre to prove the reliability of his product. Furthermore, the ETV application process takes a minimum of six months and the application costs about €20, 00014, making this process long and expensive - especially for SMEs having a limited budget. Innovative eco-oriented SMEs require particular financial support, especially in the start-up phase or after diversifying into new markets. Recent legislation under Horizon 2020 allows funds to such enterprises but there is not enough focus on the green-technology sector to carry out large-scale projects. Furthermore, the support provided in the innovation process has some imperfections: private and public investments tend to focus on R&D whereas the innovation chain is much longer and involves the production process and the system of delivery and implantation. It has to be recognised that there are benefits for companies who improve their environmental performance through innovation but these need to be better managed to be more efficient. Lastly, a strong regional imbalance persists within the EU. Countries that invest most in research and innovation such as Sweden, Denmark, Germany and Finland are performing well above the other Member States, such as Latvia, Bulgaria and Romania. This gap has further widened over the last 2 years15.

VI. Facts & Figures 1. Europe accounts for about one third of the global green-technology market and are its eco-industries are growing by around 5% a year16. 2. Under the ETAP, Europe’s eco-industries have seen an estimated turnover of €227 billion, 11 OECD report on green entrepreneurship, eco-innovation and SMEs, April 2013 (page 29 to 32) 12http://ec.europa.eu/environment/ecoap/about-eco-innovation/policies-matters/denmark/environmental-technology-verifica-

tion-an-emerging-discipline_en.htm 13 Canadian ETV model process overview 14 Guide for ETV proposers, European Commission, September 2014 (See: ‘What about costs and funding?’) 15 http://ec.europa.eu/news/business/140305_en.htm 16 http://www.eea.europa.eu/themes/technology

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that is to say 2% of the EU’s gross domestic product, and directly employs 3.4 million people17. 3. At least 60% of the overall Horizon 2020 budget will promote sustainable development. One of the headline targets of Europe 2020 is for expenditure on R&D to reach 3% of the EU’s GDP18, as part of the Innovation Union initiative set up by the European Commission. €80 billion will be allocated to fund R&D activities19 20. 4. SMEs account for 98% of Europe’s businesses and 70% of our private sector workforce. They further represent more than 90% of the EU’s green-technology market. €100 billion invested under the European Structural and Investment funds (ESIF) is going to be directed at research and innovation, mostly to SMEs and developing green and efficient energy21. 5. Although innovation has improved in most regions – 155 out of 190 -, regional imbalance still persists in the EU22. 6. According to recent polls and despite the economic crisis, 95% of EU citizens say that protecting the environment is a priority and think more can be done. In the same poll, 75% of respondents believe that safeguarding the environment can create economic growth23.

VII. Legislative Background Horizon 2020’s flagship programme is the Innovation Union, a set of 34 commitments24, aiming to improve conditions and access to finance for research and innovation, to ensure the creation of growth and jobs. Among these commitments the 18th consists of setting up of an Eco-innovation Action Plan (EcoAP), adopted by the European Commission in 2011 - however not yet fully implemented - a comprehensive set of 7 actions to improve and accelerate the market’s uptake of eco-innovation. The ETV pilot programme was executed under the EcoAP. The support provided to SMEs is characterised by the action of the EIB and EIF as part of Commitment 7 as well as the 2014 Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) programme, guaranteeing easier access to finance with a budget of €2.3 billion. Horizon 2020, through the Innovation Investment Package25, further takes into account the need 17 European Voice report on green technologies, September 2013 (see page 1) 18 http://epp.eurostat.ec.europa.eu/portal/page/portal/science_technology_innovation/introduction 19 Horizon 2020 budget and targets 20 Statistics on the ETAP, European Commission, July 2014 21 Statistics on SMEs, EIB, 2013 22 European regions compared in their innovation performances, press release of the European Commission, March 2014 (see figu-

re 6: Regional innovation performance groups) 23 Eurobarometer survey on the environment, press release of the European Commission, September 2014 24 ‘State of the Innovation Union, Taking stock 2010-2014’, European Commission, 2014 25 ‘Partnerships between Industries and Member States’, European Commission

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of PPPs by unlocking more than €6 billion to launch eight contractual PPPs, half of them being eco-industry orientated. Moreover, one of Horizon 2020’s breakthroughs is the European Innovation Partnerships (EIPs)26. EIPs are not new to the EU but this version aims to bring together public and private actors of the EU while integrating and coordinating the existing initiatives and instruments. Efficiency is indeed the key to EIPs: they focus on social benefits by a rapid modernisation of markets and a better communication between Member States and companies. The imbalance between regional clusters aims to be tackled with €100 billion unlocked by the European Structural and Investment Fund, going into developing research and innovation in the regions27. Suggested Links for Further Reading • Press release on Innovation Union, European Commission, October 2010 • More information on the contractual PPPs, Press release of the European Commission, December 2013Objectives and methodology of the EcoAP, European Commission, 2014 • Frequently Asked Questions on the ETV pilot programme, 2014 • The official COSME website • Report of the Independent Expert Group on EIPs as a Tool for Systemic Change, European Commission, 2014

VII. Keywords Horizon 2020, Innovation Union Initiative, European Innovation Partnerships, Environmental Technology Verification, Eco-innovation Action Plan, COSME programme

This topic is sponsored by The Department of Environment, Community and Local Government

26 More information on EIPs, European Commission 27 ‘Regional imbalances in the EU’, European Commission, August 2014

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Europe’s trash or Sweden’s treasure – waste-to-fuel programmes have proven so successful that 50% of Sweden’s household waste is utilised in energy production, a total of 99% is recovered in one way or the other and additional waste is imported from its European neighbours. How should the EU incentivise a wider adoption of such programmes in other Member States and regulate the emerging waste trade market? by Timm Brünjes (DE)

I. Key Terms 1. Waste: any substance or object which the holder discards or intends or is required to discard1. 2. Waste management: the collection, transport, recovery and disposal of waste, including the

supervision of such operations and the after-care of disposal sites, and including actions taken as a dealer or broker2. 3. Waste-To-Energy (WtE): the process of generating energy in the form of electricity and/or heat

from the incineration of waste. It is a hygienic method of treating waste, reducing its volume by about 90%3. 4. Municipal Solid Waste (MSW)—more commonly known as trash or garbage—consists of

everyday items we use and then throw away, such as product packaging, grass clippings, furniture, clothing, bottles, food scraps, newspapers, appliances, paint, and batteries. This comes from households, schools, hospitals businesses, etc.4. 5. Global waste trade: the international trade of waste between countries for further treatment,

disposal, or recycling. The international market for waste trade is mainly dominated by the trade of e-waste between Europe, Ghana and China5

II. Key Questions 1. What waste management strategies has the EU proposed and adopted? a. How have the Member States implemented such strategies thus far? 2. Have Waste-to-Energy programmes been successful in Europe? a. How has Sweden set an example for the implementation of Waste-to-Energy

programmes in Europe? 3. What is the status quo of the global waste trade? 4. How has the European waste management developed since the introduction of the Directive

2008/98/EC? 1 Directive 2008/98/EC of the European Parliament and of the Council, EUR-Lex, Article 3 Nr.9, Definitions, 2008 2 Directive 2008/98/EC of the European Parliament and of the Council, EUR-Lex, Article 3 Nr. 9, Definitions, 2008 3 What is Waste-to-Energy, Confederation of European Waste-to-Energy Plants, 2011 4 Municipal Solid Waste, Environmental Protection Agency, 2014 5 Young, Leslie, The Global Trade in Electronic Waste, PBS

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a. What reasons are there for the different levels of compliance amongst Member States? b. What measures has the EU undertaken in order to monitor the development of waste

management? c. What are the commitments that the Member States are urged to uphold? 5. What has been the development regarding waste management in the international community? a. Are there successful examples which either the EU or Member States individually can

draw lessons from?

III. Social Relevance Every European citizen produces almost 500kg of household waste every year.6 With over 500 million inhabitants7 that number really becomes a significant one. Waste management seems so easy when a garbage truck drives by every week and picks up what has been chucked on the side of the road. After the waste is out of the initiatorâ&#x20AC;&#x2DC;s sight there are three ways for it to go; it is either recycled and comes back to him eventually, it is incinerated and will be processed into energy, or it is landfilled. The first two options sound relatively sensible, since the waste somehow vanishes from the face of the earth. Most of that waste will not decompose and hence stay right where it is. One might think that there is enough space on our earth to prevent the waste from landing in your backyard at some point but examples across Member States have proven the opposite. It is therefore safe to say that waste management affects all of us. Not only does it begin with the separation of waste in our houses but it is necessary to revise the outdated legislation and work towards a waste treatment that is more environmentally sustainable. Although the landfilling rate in Europe has dropped from 60% to 34% in the past two decades8, there is still room for improvement.

IV. Stakeholders The most obvious stakeholder in the waste industry would be us, the civil society. The waste industry emerged following the onset of industrialisation, when in the mid-1800s calls for a public waste management grew stronger, especially spurred by increasingly devastating cholera outbreaks. With vast improvements in waste management over time such diseases have completely disappeared and the civil interest now limits itself to wanting to keep the waste away from peoplesâ&#x20AC;&#x2122; houses. How that is to be achieved is mainly outlined by the European Parliament and the Council of the EU in their Directive 2008/98/EC on waste. The directive establishes a legal framework for the handling of waste in the EU but leaves the implementation and realisation to the respective governments of the Member States unlike a regulation would. Since the international community is on the verge of creating a vast market in waste trade, further steps must be taken by the official institutions in order to reach a stricter regulation for it. So far, in most Member States waste management is 6 Kommunales Abfallaufkommen in den LĂ¤ndern der EU-28 im Jahr 2012, Statista, 2012 7 Living in the EU, European Union, Eurostat, 2014 8 Municipal waste treatment EU27 kg per capita 1995 - 2012, Eurostat, 2012

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organised partly publicly and partly privately. Unlike public disposal facilities, the private ones are profitmaking businesses. Often they are opposed to the interests of environmentalists who critisise the emissions caused by incineration plants and other waste disposal facilities. In addition they are confronted with tough EU legislation, which forces them to recycle more, and increasing landfilling charges.

V. Conflicts The main conflict arises due to the aforementioned tough EU legislation on recycling and landfilling charges. Local authorities and businesses are driven to choose the cheaper option of exporting their waste to China and other buyers, rather than seeking to fulfill their requirements by recycling the waste themselves. This has led to an increase by 250% in European plastic waste exports between 2000 and 2008, most of which was sent to China (87%). Ironically, some Member states, e.g. Germany, are among both the highest exporters of waste, as well as the top importers, which means that whilst having the capacity and infrastructure to deal with the waste within their own borders, it is shipped outside their borders. Those authorities and businesses that do strive to handle the waste without exporting any of it to developing countries in Asia or Africa are faced with opposition from environmentalists who condemn the levels of emission that their incineration plants cause and the negative impact the have on their immediate, even not-so-immediate, environment. Sweden, however, have made vast improvements in the development of their incineration plants, reaching 99.9% non-toxic smoke from their plants.9 Lastly it is critical to decide whether to keep the waste trading market a relatively free one or intervene and regulate it. The rationale of such an intervention and regulation does not only pertain to upholding market standards but also environmental ones. The EU has made a step towards the regulation of the market with its Regulation (EC) No 1013/2006 on shipments of waste10 in order to gain more control over waste shipments, extending the agreements of the Basel Convention.11 Yet many traders manage to elude these laws by shipping electrical waste to developing countries under the pretext of “used goods” or “charitable donations“.

VI. Facts & Figures 1. The rate of landfill of municipal waste in Europe has decreased by over 30% in the past two

decades.12 2. The UK have the highest rate of landfill of household waste in the EU.13

9 The Swedish Recycling Revolution, Sweden.se, 2014 10 Regulation (EC) No 1013/2006 of the European Parliament and of the Council of 14 June 2006 on shipments of waste, EUR-Lex,

2006 11 Basel Convention, EUR-Lex, 1997 12 Municipal waste treatment EU27 kg per capita 1995 - 2012, Eurostat, 2012 13 UK ‚landfill dustbin of Europe‘, BBC News, 2007

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3. 1% of Swedenâ&#x20AC;&#x2122;s household waste is being landfilled.14 4. Between 2000 and 2008, European exports of plastic waste increased by 250%15 5. As much as 47% of waste destined for export, including e-waste, in 2006 was illegal.16 6. In 2011 a total of more than 6 million tonnes of waste was shipped from EU Member States.17 7. Most of the hazardous waste that is shipped within Europe is shipped to Germany.18 8. The overall shipment of hazardous waste within Europe has slightly decreased in the past few

years.19 9. In 2012, 2,270,000 tonnes of household waste was burnt in Sweden, and was turned into energy.20 10. The 32 plants in Sweden today produce heat for 810,000 households and electricity for 250,000

private houses.21

VII. Legislative Background Based on Articles 191 and 192 of the Treaty on the Functioning of the European Union22 (formerly 174 and 175 of the Treaty establishing the European Community), the European Parliament and the Council of the EU have adopted the Directive 2008/98/EC on waste in November 2008. Its subject matter is to prevent or reduce the adverse impacts of the generation and management of waste, to reduce overall impacts of resource use and to improve the efficiency of such use. A so called waste hierarchy suggests a priority order in waste prevention and management legislation and policy to the Member States. It is comprised of (a) prevention; (b) preparing for reuse; (c) recycling; (d) other recovery, e.g. energy recovery; and (e) disposal.23 Furthermore the Member States are required to establish waste management plans containing waste collection schemes, information on type, quantity and source of waste generated within certain territories and a number of other criteria.24 Lastly the Member States shall also inform the European Commission on the process of implementation of the directive every three years to ensure sensible reporting and reviewing.25 As directives are far less binding than regulations and the implementation of their contents is left to the Member States, the outcome varies significantly across Europe. The notable example of Swedenâ&#x20AC;&#x2122;s effective waste management practices that utilise approximately 100% of its waste, other examples 14 The Swedish Recycling Revolution, Sweden.se, 2014 15 China leads the waste recycling league, The Guardian, 2013 16 Where does e-waste end up?, Greenpeace, 2009 17 Shipment of hazardous waste from EU Member States (1 000 tonnes) 2001 to 2010, Eurostat, 2011 18 Map hazardous waste shipments between EU Member States, Eurostat, 2010 19 EU-27 treatment of hazardous waste shipped out of EU Member States to other EU Member States or out of the EU 2001 to 2010,

Eurostat, 2011 20 The Swedish Recycling Revolution, Sweden.se, 2014 21 The Swedish Recycling Revolution, Sweden.se, 2014 22 Treaty on the Functioning of the European Union, EUR-Lex, 2007 23 Directive 2008/98/EC of the European Parliament and of the Council, EUR-Lex, Article 4, Waste Hierarchy, 2008 24 Directive 2008/98/EC of the European Parliament and of the Council, EUR-Lex, (1), 2008 25 Directive 2008/98/EC of the European Parliament and of the Council, EUR-Lex, Article 11, Re-use and Recycling, 2008

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of Member Statesâ&#x20AC;&#x2122; waste management practices are far from successful and do not show promising potential such as those demonstrated by Sweden.

VIII. Keywords global waste trade, waste-to-energy, Swedish recycling revolution, waste treatment in Europe, waste management, recycling, waste recovery, waste incineration, illegal waste trade, Europe waste exports.

This topic is sponsored by The Department of Environment, Community and Local Government

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I. Key Terms 1. The shared economy: represents the sector of the economy where consumers pay for temporary access rights to a product, rather than buying the product on a permanent basis. Thus people ‘share’ what they own, upon receipt of the advertised price1. 2. Business to consumer (B2C) model: is a phrase used to describe businesses which sell their products permanently and directly to consumers2. 3. Consumer to Consumer (C2C) model: is one where a consumer sells or rents directly to another, without going through a business or intermediary3. 4. Peer-to-peer platform: is a website, application or other facility which allows one person to sell or rent a product directly to a buyer, without the need for a middle man4. 5. Incumbents: this term refers to businesses or workers who already operate in a market. 6. Uber: is a ridesharing application which allows people to pay for lift from one destination to another without having to go with a traditional taxi driver5. 7. Airbnb: is a platform which allows people to rent out their space for accommodation or other purposes6.

II. Key Questions 1. Why has the shared economy recently come to prominence in Europe? a. What allows collaborative consumption to thrive? b. What obstacles does the sector face in its development? 1 Business Innovation Observatory – The Sharing Economy - Accessibility Based Business Models for Peer-to-Peer Markets, European Union, 2013.

2 Business to business, Investopedia. 3 Consumer-to-Consumer Electronic Commerce: A Distinct Research Stream , Kiku Jones and Lori N. K. Leonard, 2009. 4 About, Social Innovator website 5 What Uber and school choice have in common, Wall Street Journal, September 2013 6 About, Airbnb website

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2. What actions have been taken to date by the Member States and the European Commission? a. Why do incumbents feel threatened by C2C business models? b. What could the gains be to European society and the European economy from having a thriving shared economy? 3. Given the current situation facing the industry, what action should be now taken by the European Commission? a. Should the European Commission and the Member States seek to protect incumbent companies and workers? b. Should the authorities seek to allow the industry to thrive, free from the regulations which apply to traditional B2C models? c. Is a new regulatory framework needed for the shared economy?

III. Social Relevance Consumers are flocking to the shared economy for a plethora of reasons. Following the financial crisis, consumer trust in the corporate world has fallen, and citizens are seeking alternative sources for their needs and wants7. In addition, with unemployment having risen, and taxes levied on citizens along with it, the purchasing power of consumers has dropped – therefore people are in need of ways to earn or save money, which is why consumers are currently more receptive to peer-to-peer business models centred on consumer needs both as a potential supplier and buyer. Furthermore, the required technology for hosting an online peer-to-peer market has, in recent years, become available at a more reasonable cost – social media, for example, allow people to see if what they are renting comes from somebody with whom they have a mutual friend, giving them more confidence in the service8. As a result, the potential of the shared economy is significant, with annual growth exceeding 25%9. It seems as if today, the conditions for growth of the shared economy are in place like never before. From an employment perspective, this offers both a challenge and an opportunity. Some incumbent companies will face stiff competition which could lead to reductions in the numbers of employees or even business closures. Thus, the consequences of the arrival of Uber on established taxi drivers could be severe, and this also applies to other industries. However, the sharing economy also fosters micro-enterprise, which in itself generates employment opportunities – many people work for Uber 7 Business Innovation Observatory – The Sharing Economy - Accessibility Based Business Models for Peer-to-Peer Markets, European Union, 2013.

8 All eyes on the sharing economy, The Economist, 2013 9 Business Innovation Observatory – The Sharing Economy - Accessibility Based Business Models for Peer-to-Peer Markets, European Union, 2013.

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itself, while their drivers can supplement their income by offering their services outside of their normal working hours. Shared economy enterprises can have a massive social impact as well. The emphasis moves from ownership to usage; why buy a car you’ll only use from time to time when you can just rent one, at a reasonable price from somebody with high reviews online, when you’ll actually need it? Could the shared economy lead to people buying less and renting more and what consequences will this have on society and the wider economy? Suggested Links for Further Reading • All eyes on the sharing economy, The Economist, 2013 • Business Innovation Observatory – The Sharing Economy - Accessibility Based Business Models for Peer-to-Peer Markets, European Union, 2013.

IV. Stakeholders The relevant startups and companies are of course important stakeholders in this debate – two of the most prominent are Uber and Airbnb, though there are many others. An organisation which seeks to promote the shared economy is the European Sharing Economy Coalition – who was launched at a public hearing in the European Economic and Social Committee (EESC) – one of the advisory bodies of the European Commission – on 25 September 201310. Member States and in some instances local councils and authorities, are also key players in the market since they are often the ones who enforce regulations. This adds a level of complexity to the situation, since shared economy enterprises have to face multiple sets of regulations when they wish to operate in the EU. An example of this kind of challenge was encountered in Barcelona, where Airbnb was fined for breaching regional property rental rules11. The European Commission is responsible for regulating the EU’s internal market and for the implementation of Europe 2020 – a strategy which seeks to promote growth, innovation and the digital economy in the EU, while also making consumption more sustainable. This gives it a key role in potentially creating a regulatory framework for collaborative enterprises though it has not. There are also agencies funded by the European Commission which could aid collaboration and innovation in the sector – such as Social Innovation Europe12, funded by the DG Enterprise and Industry, whose goal is to connect policy makers, entrepreneurs, academics and third sector workers with other innovators from across Europe. Suggested Links for Further Reading 10 About, European Sharing Economy Coalition 11 Sharing Economy Faces Patchwork of Guidelines in European Countries, The New York Times, 2014 12 About, Social Innovation Europe website.

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• Sharing Economy Faces Patchwork of Guidelines in European Countries, The New York Times, 2014 • About, European Sharing Economy Coalition.

V. Conflicts Companies deploying a peer-to-peer platform face several obstacles in their environment that are specifically associated with the sharing economy model. The biggest challenge from a client’s perspective is the lack of trust in online activities and transactions. Companies in the sharing economy are therefore trying to come up with measures to boost confidence like peer-to-peer rating systems and ID checks. However many doubt if this will be sufficient and are requesting that the same regulations which apply to incumbent industries should also apply to the sharing economy13. On the other hand, due to the differences which exist between C2C and B2C models, it may be necessary to create a new regulatory framework for C2C models. For example, many USA cities ban rentals of less than 30 days in properties that have not been licensed and inspected14. Some Airbnb renters have been served with eviction notices by landlords for renting their apartments in violation of their leases15. In Amsterdam, city officials point out that anyone letting a room or apartment is required to have a permit and to obey other rules. They have used Airbnb’s website to track down illegal rentals. Landlords are clamping down on tenants who sublet their properties in violation of the terms of their leases16. Furthermore, it will be a challenge for policy makers to draw the line between peer-to-peer sharing and conventional commercial activities. For instance, is an individual that is sharing 10 cars through an online platform still a peer, or rather a rental company based on sole proprietorship? It is essential that policy makers provide clarity on this matter. Start-ups that want to make investments in building a platform and creating a community need to know whether their market will still be existent in a year from now, or whether regulation will make competition with for instance the conventional industry impossible17 . There are also questions around insurance and legal liability – if you let somebody else use your car for a fee and they have an accident, who is liable – the company who insures you, the person who has rented out the car or the person driving the car at the time? Tax collectors are asking whether all the income from sharing schemes is being declared – many people can make a considerable profit from their ventures in the shared economy – should this be taxed and if so, how can the authorities make sure that it is declared?18 Suggested Links for Further Reading 13Business Innovation Observatory – The Sharing Economy - Accessibility Based Business Models for Peer-to-Peer Markets, European Union, 2013. 14 All eyes on the sharing economy, The Economist, 2013 15 Ibid. 16 Ibid. 17 Business Innovation Observatory – The Sharing Economy - Accessibility Based Business Models for Peer-to-Peer Markets, European Union, 2013. 18 All eyes on the sharing economy, The Economist, 2013

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• Airbnb and the unstoppable rise of the share economy, Forbes, 2013

VI. Facts & Figures 1. In 2013, an estimated USD 3.5 billion of revenue will flow through the sharing economy directly into people’s wallets. This number does not include the revenues that are generated by companies facilitating these flows19. 2. Some analysts have estimated the size of the shared economy at USD 110 billion20. 3. Berlin and Hamburg have banned Uber because “The services [Uber provides] violate multiple rules for transporting people that serve to protect customers.”21 4. Avis Budget Group paid $500 million for Zipcar, a car sharing service, despite the fact that the pioneering rent-by-the-hour start-up generated a profit of only $4.7 million over the past year.22

VII. Legislative Background While legislation specific to the shared economy has been mainly noticeable in its absence, there are a number of broader, thematic directives and roadmaps which indicate a willingness on the part of the European Commission to embrace the ‘Smart Economy’. Europe 2020 is the EU’s ten-year growth and jobs strategy that was launched in 2010. While its main focus is on encouraging employment, it is also about addressing the shortcomings of the EU’s growth model and creating the conditions for a smart, sustainable and inclusive growth. The objectives of the strategy are supported by seven ‘flagship initiatives’ providing a framework through which the EU and national authorities mutually reinforce their efforts in areas supporting the Europe 2020 priorities such as innovation and the digital economy23. The shared economy also concerns sustainability – if people are borrowing more, the amount of goods physically produced is lessened and our use of the earth’s resources becomes less intensive. On this front the European Commission has launched the Sustainable Consumption and Production Action Plan24 and the Resource Efficiency Roadmap 25 both of which aim to transform the EU’s economy towards sustainable consumption and production.

19 Airbnb and the unstoppable rise of the share economy, Forbes, 2013 20 MIT Sloan grad on the “sharing economy,” the next big trend in social commerce, MIT Sloan, 2011. 21 Berlin and Hamburg ban for taxi app Uber, Outlaw, 2014. 22 Airbnb and the unstoppable rise of the share economy, Forbes, 2013. 23 Europe 2020 in a nutshell, The European Commission, 2014 24 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee

and the Committee of the Regions on the Sustainable Consumption and Production and Sustainable Industrial Policy, The European Commission, 2008 25 Ibid.

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The Entrepreneurship 2020 Action plan26 “is a blueprint for decisive action to unleash Europe’s entrepreneurial potential, to remove existing obstacles and to revolutionise the culture of entrepreneurship in Europe” – which aims to provide outreach, support and an environment where entrepreneurship can flourish. The Digital Agenda for Europe, which is an initiative of the Europe 2020 Strategy, has seven pillars, of which the creation of a digital single market, the turning of research ideas into marketable products and services and increasing web users trust and security online are all relevant to enhancing the prospects of the shared economy in Europe27. With specific reference to the shared economy, the European Economic and Social Committee produced an opinion in January 201428 which called on the European Commission to “address the issue of collaborative or participatory consumption in its work programme.” They make a number of recommendations as to how this can be done. However, in the absence of a tailored policy framework, policy makers might inappropriately apply conventional industry standards and legislation. Although peer-to-peer companies facilitate the provision of similar products and services as is being done in traditional markets, the manner of delivery is highly different. Companies tend to have a stronger bargaining position than consumers, due to their substantial resources. A large portion of legislation is aimed at protecting the weaker party, the consumer, from a company’s position of power29. Suggested Links for Further Reading • Europe 2020 in a nutshell, The European Commission, 2014 • Collaborative or participatory consumption: a sustainable model for the 21st century, European Economic and Social Committee, 2013

VIII. Keywords The shared economy, Collaborative consumption, peer-to-peer business model, Airbnb, incumbent industries, Uber, Europe 2020, Entrepreneurship 2020 action plan, Digital Agenda for Europe, Sustainable Consumption and Production Action Plan, Business-to-business (B2B), consumer to consumer (C2C).

26 Entrepreneurship 2020 Action Plan, The European Commission DG Enterprise and Industry, 2014 27 Pillar III: Trust and Security – The European Digital Agenda, The European Commission 28 Collaborative or participatory consumption: a sustainable model for the 21st century, European Economic and Social Committee, 2013

29 Business Innovation Observatory – The Sharing Economy - Accessibility Based Business Models for Peer-to-Peer Markets, Euro-

pean Union, 2013.

Committee on Industry, Research & Energy

ITRE

I. Key Terms 1. Linear economy1: traditional economic model for industrial production where materials are extracted, produced and disposed. It requires the input of new resources and outputs waste. 2. Circular economy2: An industrial economy that is restorative with zero waste of materials due to a focus on renewable, reusable and biodegradable products. The term encompasses two types of continuously circulating nutrients; biological and technical. 3. Biological Nutrients3: nutrients designed to reenter the biosphere safely through decomposition.

4. Technical Nutrients4: non-degradable materials designed to circulate at high quality without entering the biosphere.

1 “Rethinking Progress: The Circular Economy”, TedTalks, 2014 2 Ibid. 3 Ibid. 4 “Rethinking Progress: The Circular Economy”, TedTalks, 2014

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5. Resource Productivity5: A quantitative indicator proposed by the European Commission that relates GDP to raw material consumption.

II. Key Questions 1. What does the transition process from a linear to a circular economy encompass? a. What are the issues associated with the management of existing resources and infrastructure? b. How can enabling technologies increase the benefits of efficient resource management? 2. How can the EU better incentivise businesses and consumers to transition to a circular economy? 3. How can businesses be facilitated in the transition from a linear to a circular economic model by: a. the EU? b. Member States’ governments? c. local governments? 4. How useful is the Communication “Towards a Circular Economy”6? a. Is the proposed indicator appropriate? b. To what extent should recycling be the EU’s primary focus?

III. Social Relevance Many natural resources are becoming increasingly scarce. Considering the exploding population and the increasing demand for resources from developing economies, the World Bank has described the global consumer demand as a “potential time bomb.”7 European society relies on natural resources in almost every aspect of daily life. This mismatch between supply and demand makes for more volatile markets as prices rise and extraction becomes more difficult. Ultimately, businesses pay more, consumers pay more and finite materials lessen. Environmentally, the extraction, use and disposal of these materials is often environmentally damaging with increased pollution and rising sea levels amongst other negative environmental impacts. 5 Communication, “Towards A Circular Economy”, European Commission, 2014 6 Ibid. 7 Mounting on Pressure, World Economic Forum, 2014

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As economic dependence for resources collides with bilateral and unilateral political negotiations, it becomes hard for the EU to uphold its commitments and meets its environmental targets. Without doubt, the future and use of natural resources impacts European citizens in significant ways. This could however be rectified. The circular model could replace the linear model. This requires a systemic transformation with regards to resource efficiency in industrial production. A circular model would arguably make for a more competitive, efficient and environmentally friendly Europe. The question is: what role do citizens have in facilitating the change from a linear to a circular model?

IV. Stakeholders Institutions of the European Union In the EU, the environment is a shared competence where both Member States and the EU can legislate. The European Commission recently issued the Communication paper, “Towards a Circular Economy” demonstrating its support for the concept. The European Commission, the European Parliament and the Council of the EU are tasked with producing legislation or recommendations that target consumers, Member States and businesses. Civil Society/Consumers The habits and demands of consumers determine the production of commodities. Most consumers will buy the products they can afford whilst some are more environmentally aware and spend more to bear the costs of environmental degradation. Since this affects the type of products and their consumption, citizens’ receptiveness of the application of the new economic model proposed by the European Commission is a determinant of successful government policy. Private Sector Many big corporations including Phillips and Vodafone8 have shown support for a circular economy. Yet, there is a disparity of understanding and practice amongst European businesses. For the transition to be successful, it requires participation at all levels of production. Whilst businesses representing their own interests must work with government, they must also cooperate amongst themselves. BusinessEurope, a social partner that represents businesses from 35 European countries and other industry associations are representatives of private interests in the legislative process. Furthermore, Small and Medium Enterprises (SMEs), the backbone of the European economy, are considered crucial to an effective circular economy. Research and Interest Groups Various Non-Governmental Organisations (NGOs), think tanks and educational institutions have 8 “How it works; up close case examples of circular products”, World Economic Forum, 2014

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had a role in researching and implementing a circular economic model. Examples include Friends of the Earth, the Ellen McArthur foundation and the World Economic Forum. However, their aims do not coincide and there is a split in focus between the economics or environmental elements of the concept. They are all however important in inspiring change by working with all levels of government, supporting companies and raising consumer awareness. Member States Whilst Germany9, the UK10 and other Member States have taken active steps towards a circular economy, other Member States still lack the know-how and sentiment to do so. Future decisions made are highly dependent upon the countries’ abilities to work with the EU, businesses and local governments to develop effective policies.

V. Conflicts The biggest conflict lies in how the relevant actors can make such a systemic change. The European Commission’s communication “Towards a Circular Economy”, focused primarily on recycling and waste management. Organisations including the European Aluminium Association11 viewed this as a practical and valuable step forward. Proponents of environmentally friendly production processes however argue it does not account for the full consumption of resources including carbon and water. The European Environmental Bureau12 also stated it does not sufficiently emphasise design to disassemble or waste prevention, crucial concepts in a circular economy. Recycling alone is expensive and only produces lower quality materials that still require virgin resources. BusinessEurope13 added its own criticism stating that the European Commission’s target-based approach does not consider the complexity of resource use, production and consumption. Most of the issues mentioned originate from the complexity of the entire economic system and the in-depth research needed to analyse data. For example, BusinessEurope asserts that the indicator for Resource Productivity is not sufficient as it measures the quantity of resources consumed, not the efficiency during the production cycle. Furthermore, since a circular economy relies upon innovation, it requires a thorough technological understanding. Considering the levels of development and various industrial sectors, some Member States are not as committed or do not have the resources to achieve set targets. It is uncertain whether European legislation or national legislation will be most effective and how this can be applied on local levels. Additionally, not all Member States appreciate the economic growth associated with a circular economy. The concept is often separated from competitive markets needed to reboot the European economy. 9 “Questions and answers on the Commission Communication “Towards a Circular Economy””, Europa, 2014 10 Ibid. 11 “EU tables ‘circular economy’ package with zero-landfill goal”, EurActive, 2014 12 Ibid. 13 Ibid.

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Ultimately, there is a lack of understanding amongst consumers and businesses. The circular economy remains a new concept and requires a change of habit from the above; more specifically, the change to renting and returning materials rather than buying and disposing of them. This is coupled with a lack of incentive. The higher cost of environmentally friendly production limits investors’ willingness to engage and thus restricts businesses with motivation, which, in turn, reduces the likelihood of more radical legislation being produced.

VI. Facts & Figures 1. Citizens believe a more efficient resource use would have a positive effect on the quality of life in their country (86%), on economic growth (80%), as well as on employment opportunities (78%).14 2. Commodity prices overall increased by nearly 150% from 2002 to 2010.15 3. Around 3 billion people are expected to join the ranks of the middle class by 2025. This represents the largest and fastest rise in disposable incomes.16 4. Shifting towards circularity could add $1 trillion to the global economy by 2025 and create 100,000 new jobs within the next five years.17 5. The construction and use of buildings in the EU account for about half of all our extracted materials and energy consumption and about a third of our water consumption. The sector also generates about one third of all waste.18

VII. Legislative Background The 7th Environmental Action Plan (2014-2020) outlines a clear list of targets for the EU including turning the EU into a resource-efficient, green and competitive low-carbon economy. The 2011 Roadmap to a Resource Efficient Europe further highlighted the barriers in place, the need for accurate resource use indicators and a radical transformation. Communication, “Towards a Circular Economy”: In July 2014, the European Commission proposed the establishment of an EU framework that combines smart regulation, market-based instruments, incentives, information exchange, and support for voluntary approaches. It focused on research, unlocking investment, supporting business and consumers and modernising waste policy. The package included some legally binding targets most of which are aimed at increasing recycling and reducing landfill. At the forefront was a political target to increase resource productivity by 30 % 14 Public Opinion on Resource Use, Eurobarometer, 2012 15 “Mounting on Pressure”, World Economic Forum, 2014 16 Ibid. 17 “10 things you need to know about the circular economy”, The Guardian Environment Network, 2014 18 “Sustainable Buildings Communication”, European Commission, 2014

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by 2030. The European Commission stated it would create 580,000 new jobs while reducing demand for costly and scarce resources. It also proposed the Resource Productivity indicator and aimed to improve cooperation between the European Commission and Member States to ensure more effective implementation of the targets in the proposal. The Communication on Resource Efficiency in Buildings issued in July discussed the construction and use of buildings and how environmental impacts can be reduced through better design, energy efficient products, careful manufacturing, use of existing materials, waste-to-fuel and renovation. Horizon 2020 is a Research and Innovation Programme with €80 billion available from 2014 to 2020. This will provide opportunities for business and innovation projects that support a circular economy. The Green Action Plan for SMEs developed in 2014, aims to improve research and increase financial assistance for SMEs in order to improve their sustainability and resource efficiency. It promotes entrepreneurship, eco-innovation, knowledge sharing, public-private partnerships and various forms of education in the hope of transitioning SMEs towards more circulatory production cycles. Suggested Links for Further Reading: • Europa website for Green SMEs • Europa website for material regarding a circular economy Business or Organisations: • United Kingdom organisation for resource efficiency • “Towards a Circular Economy” Report, World Economic Forum • Ellen MacArthur Foundation outlining a Circular Economy Videos and Interactive Material: • Circular Economy Interactive Diagram by the Ellen MacArthur Foundation • Ted Talk on the Circular Economy

VIII. Keywords Circular economy, renewable energy, sustainability, competitive markets, green technology, recycling, product design, depleting resources.

Committee on Civil Liberities, Justice & Committee Home Affairs on Foreign Affairs

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I. Key Terms 1. Freedom of information: an internationally recognised basic human right that could be explained as the freedom of expression in any medium1. 2. Freedom of media: the ability of the media to function freely. While such freedom mostly implies the absence of interference from public authorities (“independent media”), its preservation may be sought through constitutional or other legal protections2. 3. Media pluralism: the variety of the opinions represented in the media3. 4. Media literacy: the ability to access, analyse, explore and increase the understanding of the media.4 5. Media transparency: the process of the production of the news and publications and how the information is conveyed5. 6. Public interest test: the public interest test favours disclosure where a qualified exemption applies. In such cases, the information may be withheld only if the public authority considers that the public interest in withholding the information is greater than the public interest in disclosing it6. 7. Press Freedom Index: an annual publication of Reporters Without Borders examining the level of freedom of information in 180 countries.7 8. Privacy: the ability of an individual or group to seclude themselves, or information about themselves, and thereby express themselves selectively8. 1 Columbia Encyclopedia. 2 Encyclopedia Britannica and Wikipedia. 3 Council of Europe website: Commissioner for Human Rights.”Media Pluralism and Human Rights” 4 European Commission’s recomendation on “Media Literacy in the Digital Environment” in 2007 5 Wikipedia . 6 BBC Website: “Freedom of Information: Glossary of terms”. Read more about it in: MORRISON, David E. “The Public Interest, the Media and Privacy” 7 Press Freedom Index 2014 8 Stanford Encyclopedia of Philoshopy.

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II. Key Questions 1. How could the projects and measures implemented by the European Commission and the organizations on the freedom of information be fully implemented? a. What can Member States do in order to implement it? b. How could this be achieved in a European level? c. What role could Organisations play in this matter? 2. What could Member States do on a legal and socio-cultural level in order to reach fully independent media? 3. How could the EU, especially the European Commission, take a more active role in implementing existing measures in the field of independent media9? 4. How can a common definition for the concept “public interest” be achieved? 5. Can a balance between freedom of press and the right of privacy be achieved? If so, how?

III. Social Relevance The preservation of the independence and diversity of the media is vital to the common vision of a democratic Europe. The freedom and pluralism of the media goes hand in hand with two nonnegotiable freedoms, which lie at the heart of any democratic society: freedom of expression and freedom of the press. These, however, are inevitably restricted by other important values, including the right to privacy: the control individuals exercise over their sensitive personal information. One person’s desire for information can be an invasion of privacy to another. In July 2011, extensive media coverage in the United Kingdom of ‘‘the rise of the super-injunction state10’’ and the legal protection increasingly afforded to the privacy of celebrities was superseded by stories of illegal press intrusion into the private lives of individuals. The News International phone-hacking scandal, for example, highlighted issues that go beyond the original claim of the News of the World and its proprietor that these were the isolated actions of a single rogue reporter11 12 . These issues stretch to the numerous forms of technological surveillance, as well as acts of bribery and ‘‘blagging’’13, undertaken by many at that newspaper and in the rest of the European press, 9 Some of the already existing measures in this field can be seen in the “DG Enlargement. Guidelines for EU support to media freedom and media integrity in enlargement countries, 2014 – 2020” 10 Super-injunctions in English law refer to a type of injunction that prevent publication of the thing that is in issue and also prevents the reporting of the fact that the injunction exists at all. Read more about Super-injunctions 11 DAWES, Simon. (2014)“Press Freedom, Privacy and The Public Sphere” in Journalism Studies, 15. 12 UK’s phone hacking scandal 13 Blagging: Knowingly or recklessly obtaining or disclosing personal data or information without the consent of the

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as well as the activities of News International’s multimedia and international interests. It demonstrated the widespread practice of journalists illegally procuring personal information for the purpose of publishing stories that are more revelatory of the private lives of people in the public eye than they are conducive to political or economic debate. Attention has understandably turned to the regulatory frameworks that guide journalists’ behaviour, and, in particular, to the notion of public interest and the balance between press freedom and the individual’s right to privacy in the self-regulatory framework of the press14. Simultaneously, special emphasis should be put in the EU’s General Data Protection Regulation15, which aims to rebalance the relationship between the individual and the Internet. The recent debate around this regulation reflects growing tensions between freedom of expression and privacy as increasing numbers of people complain that their online reputation is being corroded by outdated, inaccurate or malicious information that cannot be removed16. Suggested Links for Further Reading • European Commission website: Digital Agenda for Europe. Content & Media. Media policies • European University Institute Working Papers: “Private Regulation, Freedom of Expression and Journalism: Towards a European Approach?” • Press release of the European Commission for a comprehensive reform of data protection rules to increase users’ control of their data and to cut costs for businesses

IV. Stakeholders Journalists, reporters and editors, of course, play a crucial role in this issue. They must be able to work in an environment which allows for free expression and provides them with the assurance that they can work free from pressure, interdictions, harassment, threats or any other kind of harm. They also have the professional obligation to provide accurate information and must always be responsible and accountable for their output. The publishing sector17 is of major importance to the EU and its citizens. It has a key economic role data controller. English Data Protection Act 1998. Read more about blagging 14 Examining press regulation across Europe, a distinction can be drawn between status-based and activity-based definitions of journalists. While the first one is associated with a strong professional association based on membership, an activity-based self-regulatory regime is developed where no mandatory membership to professional associations exist. European University Institute Working Papers: “Private Regulation, Freedom of Expression and Journalism: Towards a European Approach?” 15 Proposal for a Regulation of the European Parliament and of the Council on the protection of individuals with regard to the processing of personal data and on the free movement of such data (General Data Protection Regulation) 16 This refers to the so-called “Right to be forgotten”, that will help people better manage data protection risks online. People will be able to delete their data if there are no legitimate grounds for retaining it. European Commission Press Release 17 The publishing sector covers areas such as book publishing, journals and periodical publishing, newspapers and

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to play and is vital to the development and preservation of culture, information, education and democracy at large. The main responsibility for maintaining media freedom and pluralism lies with the Member States. However, the EU also plays an important role, mostly in upholding the fundamental rights of EU citizens in cross-border issues, which arise in the Single Market. The European Commission selected four projects aimed at providing practical solutions and guidance to journalists in Europe in order to enhance and defend media freedom. Some of these projects are being led by the following: The High Level Group on Media Freedom and Pluralism18 is a fully independent group established to ensure free and pluralistic media environment is sustained in the European countries. Invited by the European Commission, the group recommended numerous steps for the EU to take in order to enhance the level of media freedom, media independence, pluralism, independence of the journalists, the role of the regulatory authorities. The Centre for Media Pluralism and Media Freedom19 is a project co-financed by the EU. This initiative is a further step in the European Commission’s on-going effort to improve the protection of media pluralism and media freedom in Europe and to establish what actions need to be taken at European or national levels to foster these objectives. The Centre carries out specific activities regarding research, debate, training and dissemination of results and outcomes. The Center for Media and Communication Studies20 (CMCS) is the leading center of research on media, communication, and information policy in Central and Eastern Europe. CMCS research and activities address media and communication policy, social media and free expression, civil society and participation, fundamental communication and informational rights, and the complexities of media and communication in transition. The International Press Institute21 is a global network of editors, media executives and leading journalists dedicated to the furtherance and safeguarding of press freedom, the protection of freedom of opinion and expression, the promotion of the free flow of news and information, and the improvement of the practices of journalism. Suggested Links for Further Reading • Reports by the International Press Institute: • “Defamation law in the EU and its effect on Press Freedom” • “Provisional results of perceptions survey on EU Defamation laws and their effect on magazine publishing, software publishing and mailing list and directory publishing. There are different stages of the publishing process that involve creation and design, distribution and retail or production. 18 The High Level Group on Media Freedom and Pluralism was established in October 2011 to draw up a report for the Commission with recommendations for the respect, protection, support and promotion of pluralism and freedom of the media in Europe 19 Centre for Media Pluralism and Media Freedom website 20 Center for Media and Communication Studies website 21 International Press Institute

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Press Freedom” • “International Standards on Freedom of Expression and the Protection of reputation” • Centre for Media Pluralism and Media Freedom map of Status of Journalists • Final Report of the High Level Group on Media Freedom and Pluralism

V. Conflicts The role media plays in a democratic society requires strong protection, but also carries equal responsibilities. As there is no clear consensus between media practitioners as to what is in the public’s interest to broadcast, this has sometimes lead to illegal and intrusive performances on citizens’ private lives. There are problems with approaching the recent scandals in terms of privacy and press freedom. A problem with the rhetoric of press freedom is that it often serves more the private interests of media proprietors than it does the public interest, harming both the independence of journalists and the right of the public to know. Concomitantly, although it also has the potential to negatively affect the public’s right to privacy, the individualisation of that right and its reduction to a material or moral interest rather than anything more fundamental, has meant that privacy rhetoric is also called upon to serve private rather than public interests. The issue of regulation is problematic, however, not least because of technological convergence and the internet, and economic convergence and multinational ownership. The media are regulated differently from one country to another, even though publications can be available internationally. And even within Member States, each medium has its own regulatory framework. The digital age has brought huge transformations in the availability of information, but also it has also massively increased the data gathered about individuals’ activities for commercial and political purposes. The rise of new technologies, along with the accelerating changes of journalism as a profession, requires on-going adaptations to the regulatory framework. The press is, of course, no longer the principal purveyor of news and information. The Internet offers abundant opportunities for the dissemination of news and opinions, including the publication of intimate, private facts. Social media, blogs, and other online sites are accessible to all. Indeed, the fragility of privacy online has led some to conclude that it is no longer capable of legal protection22.

22 WACKS, Raymond. Privacy and Media Freedom. Oxford University Press, 2013.

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VI. Facts & Figures 1. Freedom of the Press worldwide (2014) 23:

2. Media Freedom across the EU24:

3. Defamation and specific legal provisions protecting politicians from insult or criticism in Europe in 201325:

23 Freedom of the Press Worldwide in 2014 24 Time to step up: The EU and freedom of expression. Report, December 2013. Page 7 25 Time to step up: The EU and freedom of expression. Report, December 2013. Page 9.

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4. The global ranking on protection of access to information, positions Portugal on the 65th place, France on the 73rd, Denmark on the 79th, Greece on the 91st and Austria on the 93rd.26 5. EU Member State removal requests by reason from 2010 to 201327:

6. Percent change in Media Sustainability Index 2001-201428:

VII. Legislative Background The European Unionâ&#x20AC;&#x2122;s commitment to respect freedom and pluralism of the media, as well as the right to information and freedom of expression is enshrined in Article 11 of the Charter of Fundamental Rights, similar to the provision of Article 10 of theÂ European Convention for the Protection 26 Time to step up: The EU and freedom of expression. Report, December 2013 27 Ibid. 28 Media sustainability Index 2014: The Development of Sustainable Independent Media in Europe and Eurasia

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of Human Rights and Fundamental Freedoms29. In very extreme cases, the EU can make use of Article 7 of the Treaty on European Union30 (TEU), which allows the Council, acting by qualified majority, to decide to suspend certain rights of a member state found in serious and persistent breach of EU values enshrined in the Treaty. Therefore, this would be a legal basis empowering the EU to act for the protection of fundamental rights and freedoms of the media at a national level. The relationship between media pluralism and media freedom with existing competences and areas of action of the EU allow for actions in the protection of fundamental rights in this area of the law. Despite the strictly circumscribed nature of EU competences, the EU has been engaged in a broad range of activities on regards to media freedom and pluralism. First of all, former European Commissioner Neelie Kroes and the governments of some Member States have engaged in an intensive dialogue concerning legal and regulatory actions. The right to be forgotten, article 17 of the Data Protection Regulation31, has been developed by the EU justice commissioner’s office primarily in response to complaints about the way social media such as Facebook, retain and handle information. Under EU law, personal data can only be gathered legally under strict conditions, for a legitimate purpose. Furthermore, persons or organisations which collect and manage personal information must protect it from misuse and must respect certain rights of the data owners which are guaranteed by EU law. The major reform of the EU legal framework on the protection of personal data proposed on 2012 will therefore strengthen individual rights and tackle the challenges of globalisation and new technologies. Suggested Links for Further Reading • European Commission website: Freedom of expression and media 29 Article 10 of the European Convention for the Protection of Human Rights and Fundamental Freedoms – Freedom of expression: 1. Everyone has the right to freedom of expression. This right shall include freedom to hold opinions and to receive and impart information and ideas without interference by public authority and regardless of frontiers. This article shall not prevent States from requiring the licensing of broadcasting, television or cinema enterprises. 2. The exercise of these freedoms, since it carries with it duties and responsibilities, may be subject to such formalities, conditions, restrictions or penalties as are prescribed by law and are necessary in a democratic society, in the interests of national security, territorial integrity or public safety, for the prevention of disorder or crime, for the protection of health or morals, for the protection of the reputation or rights of others, for preventing the disclosure of information received in confidence, or for maintaining the authority and impartiality of the judiciary. 30 Article 7 of the TEU: On a reasoned proposal by one third of the Member States, by the European Parliament or by the European Commission, the Council, acting by a majority of four fifths of its members after obtaining the consent of the European Parliament, may determine that there is a clear risk of a serious breach by a Member State of the values referred to in Article 2. Before making such a determination, the Council shall hear the Member State in question and may address recommendations to it, acting in accordance with the same procedure. 31 Article 17 provides the data subject’s right to be forgotten and to erasure. It further elaborates and specifies the right of erasure provided for in Article 12(b) of Directive 95/46/EC and provides the conditions of the right to be forgotten, including the obligation of the controller which has made the personal data public to inform third parties on the data subject’s request to erase any links to, or copy or replication of that personal data. It also integrates the right to have the processing restricted in certain cases, avoiding the ambiguous terminology “blocking”.

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• Guidelines for EU support to media freedom and media integrity in enlargement countries, 2014 – 2020 • Pilot Projects for Media Freedom • Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data • Freedom of Expression, the Media and Journalists: Case-law of the European Court of Human Rights

VIII. Keywords: media freedom, media pluralism, privacy

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Committee on Transport & Tourism

I. Key Terms 1. Port: a town or city with a harbour or access to navigable water where ships load or unload.1 1. Corridor: a geographic area between two points, linking multiple centres, and moving people and freight. This definition includes both the transportation infrastructure (e.g., roads, rails and stations) and the new and existing development that surrounds that infrastructure.2 2. Hinterland: the term applied to the land behind a coastal line or shoreline. More specifically it refers to the inland region behind ports. The area from which products are delivered to a port for shipping elsewhere is that port’s hinterland.3 3. Trans-European Transport Network (TEN-T): The TEN-T policy supports the completion of 30 Priority Projects, representing high European added value, as well as projects of common interest and traffic management systems that will play a key role in facilitating the mobility of goods and passengers within the EU.4

II. Key Questions 1. How important are ports for European trade? a. What benefits does trade through ports bring to the European economy? b. How can the EU harness the potential of ports not only for trade but also for economic development and job growth? 2. In what way can the EU attract more investment for its ports? a. What type of inward investment should the EU be aiming for and how should these investment opportunities stimulate job growth? 3. Should there be a greater focus on the environmental profiles of ports? a. If so in what way should they be promoted taking into account the incurring costs and 1 http://www.merriam-webster.com/dictionary/port 2 http://www.hhh.umn.edu/img/assets/8460/CBPTRBpaperFinalr2.pdf 3 http://www.britannica.com/EBchecked/topic/266517/hinterland 4 http://ec.europa.eu/transport/infrastructure/tentec/tentec-portal/site/en/abouttent.htm

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limited compliance? 4. What viable measures should be taken to improve the environmental profile of ports? 5. Who are the potential investors in upgrading and further developing European ports? a. What kind of consequences will their investment have on European ports, their environmental profiles and inter-European trade?

III. Social Relevance Ports play an incredibly important role in the EU’s economy, both in external trade as well as internal market exchanges. They also provide a great service to other industrial sectors and are important generators for employment across the continent.5 At the EU level, the extent of the employment effects of port activity (direct, indirect, induced and related activities) represents million of jobs6 and a significant contribution to economic growth (GDP). One of the most important steps the EU has taken to realise its full potential when it comes to transport is the Trans-European Transport Network (TEN-T), which strives towards the smooth functioning of the internal market and the strengthening of economic and social cohesion. The TEN-T means to achieve this by e.g. ensuring a high quality infrastructure and optimising the use of existing capacities.7 However, due to the economic crisis in 2008 the total weight of goods handled in maritime ports, 3.9 billion tons, dropped the following year by 12%. Since the first quarter of 2010 there had been steady growth for two years until this growth started to stagnate in the second quarter of 2012. With consecutive year-on-year decreases in the three last quarters of 2012, the overall port activity in the EU was slightly lower in 2012 than the level recorded 7 years earlier, in 2005.8 European ports face common challenges, which in future will be dependent on substantial private and public investments. Also it is necessary that there will be flexibility when it comes to the adaptation of infrastructure to changing demands, notably the increasing size of vessels. Furthermore, ports also need to comply with new environmental legal requirements such as the obligation to provide waste reception facilities, LNG refuelling stations and shore side electricity. It is of paramount importance for EU ports to be able to combine potential investment and upholding and improving environmental standards. This is emphasised by Siim Kallas, former European Commission Vice-President and Director of DG MOVE (Directorate General for Mobility and Tourism), who stated: “Alternative fuels are key to improving the security of energy supply, reducing the impact of transport on the environment and boosting EU competitiveness,”9 5 Importance of ports for economic recovery and jobs, European Commission, 2012 6 Employment trends in all sectors related to the sea or using sea resources, ECOTEC Research & Consulting ,Dr Tina Weber and

Anne-Mari Nevala, 2006, page 5 7 EU guidelines for the development of the Trans-European Transport Network 8 Country level - Gross weight of goods handled in all ports, by direction, 04-09-2014 9 New EU rules to pave way for LNG Bunkering Infrastructure

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IV. Stakeholders On a global scale the International Maritime Organisation (IMO) is the global standard-setting authority for the safety, security and environmental performance of international shipping. As a specialised agency of the United Nations, its main role is to create a regulatory framework for the shipping industry that is fair and effective, universally adopted and universally implemented.The institution that is responsible for the EU Member States to comply with standards set by the IMO is the European Commission, the executive agency of the EU. They also have the responsibility of proposing EU legislation on the matter of ports. TEN-T is an example of an EC initiative. The Innovation and Networks Executive Agency (INEA): INEA is the executive agency of TEN-T since January 1st 2014 and it is therefore INEA’s objective to manage the technical as well as the financial implementation of TEN-T.10 Furthermore, you also have the European Sea Ports Organisation (ESPO): ESPO represents the port authorities, port associations and port administrations of the seaports of the Member States of the EU and Norway. ESPO has also observer members in several neighbouring countries to the EU. ESPO state that it is their mission to influence public policy when it comes to the European port sector.11

V. Conflicts One of the major conflicts concerning ports is the lack of development of ports and the insufficient integration of ports in wider logistic chains, which therefore are remaining uneven at a European level.12 Bearing this in mind, it can be seen as a serious problem when you take into account that there are other ports lagging behind when it comes to efficient use of available facilities, reliability in the handling of freight and passengers services and contribution to sustainable transport effort. The disparities of performance between different European ports affect the distribution of cargo flows and on the organisation of logistic chains across Europe. Another issue that is worth mentioning is that it is also important for the EU to be able to stay competitive on the global market. European ports have been having to compete with neighbouring third countries. The EU is facing particular competition from North African ports, which have recently been garnering a lot of investment. The EU has stricter environmental standards than many other ports across the world. This could play a part in the decisions of potential investors, seeing as this will have an influence on the costs that will have to be payed by investors. Nevertheless, Member States have recently also been successful when it comes to investment. An example of this is the growth and expansion of the port of Piraeus, which has become the world’s 10 INEA Homepage 11 ESPO’s mission statement 12 Measures to enhance the efficiency and quality of port services in the EU, 2013, page 3

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fastest growing container port at the moment due to involvement of China Ocean Shipping Company (COSCO).13 It is however not sure how e.g. Chinese involvement will affect the European market in the long term.

VI. Facts & Figures 1. Emissions from the global shipping industry amount to around 1 billion tonnes a year, accounting for 3% of the world’s total greenhouse gas (GHG) emissions and 4% of the EU’s total emissions.14 2. 329 ports of common interest have been identified in the EU legislation, including 104 ports of strategic interest, so called core ports.15

VII. Legislative Background In March 2014, as part of the European Ports Policy, the European Commission appointed “European Coordinators “ to integrate EU ports into trans-European corridors, in order to try and optimise connections. Each corridor was assigned their own coordinator.16 This is only a small part of the actions that have already been implemented by the European Commission via the European Ports Policy. Furthermore, the European Commission has also set out plans to reduce customs formalities in the maritime sector through Blue Belt. This will ensure the reduction of red tape, the cutting of delays in ports and make the sector more competitive. The competitiveness increases due to the fact that exporters will lose less time and therefore less money and pollute less when they choose to send goods across Europe by short sea shipping17. Also, new EU rules have been adopted for the creation of alternative refuelling points across the continent with common standards for their design and use, including a common plug for recharging electric vehicles. Member States must set and make public their targets and present their national policy frameworks by end-2016. Furthermore the European Parliament and the Council finally agreed in March 2014 to include provisions which require all core ports to provide LNG refuelling points and shore side electricity (unless not economically viable) by 2025, in the Clean Power Transport Directive18,

13 Chinese Investment in the Port of Piraeus, Greece: The Relevance for the EU and the Netherlands, Clingendael, page 34 14 Reducing Emissions from the Shipping Sector 15 Ports: an Engine for Growth. Where were headed one year on, European Commission, 2014 16 Ports: an Engine for Growth, European Commission, 2014 17 Blue Belt, a Single Transport Area for shipping, European Commission, 2013 18 Clean Power for transport: A European alternative fuels strategy, European Commision, 2014

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VIII. Keywords: European ports policy, IMO, Commission on Transport, Competitiveness European ports, LNG, COSCO, Largest European ports, Rotterdam, Antwerp, Piraeus, INEA, ESPO, Blue Belt

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