PODIUM #5

ISSUE #5

PODIUM

A POLICY HANDBOOK EDITION MADRID, SEP 2012

CHILD PROTECTION/ DON’T PLAY WITH THE DICTATOR/ ECB REGULATION/ ERASMUS MUNDUS/ EU-US FREE TRADE/ FAMILY POLICY/ HEZBOLLAH/ INTERNATIONAL PRIVATE COOPERATION/ NATURAL DISASTERS/ SCHENGEN FOR ROMANIA AND BULGARIA/ FREE MOVEMENT IN SWITZERLAND/ DISCUSSING GENDER QUOTAS/

yepp Youth of the European People’s Party

Podium is a publication of the Youth of the European People’s Party.

The purpose of this publication is to summarize all the adopted policy documents by the YEPP Council and focus on the most important and innovative proposals of the organization.

Edition: Council Meetings, Madrid September 2012

PODIUM A POLICY HANDBOOK

contributors for this issue

Linda Eichler IRLY, Estonia

Tom Vandenkendelaere JongCD&V, Belgium

Christodoulos Ioannou NEDISY, Cyprus

Federico Potočnik MSI, Slovenia

Maria Kristine Göthner Unge Høyre, Norway

Sorin Moldovan OTPDL, Romania

/CHILD PROTECTION /DON’T PLAY WITH THE DICTATOR /ECB REGULATION /ERASMUS MUNDUS /EU-US FREE TRADE /FAMILY POLICY /HEZBOLLAH /INTERNATIONAL PRIVATE COOPERATION /NATURAL DISASTERS /SCHENGEN FOR ROMANIA AND BULGARIA /FREE MOVEMENT IN SWITZERLAND /DISCUSSING GENDER QUOTAS

presented by Young Fine Gael, Ireland

The Youth of the EPP takes stance on Child Protection Family and Child welfare within the EU is of outright importance to the Commission and to European citizens, as well as to all citizens of the world. This is strongly emphasized by the fact that The Convention on the rights of the Child is the most ratified international convention in history. Sadly, there is evidence to suggest that child protection systems across the EU have chronically failed. This has allowed specific cross-border institutions of religious, sporting and educational fields to abuse their position of authority in society, risking the welfare of children. Additionally, due to current laws on traveling and work within the EU, citizens can often hide their past criminal activity or misbehavior when traveling or working in a different country. Furthermore, it is often the case that Interpol and Europol information does not include criminal activity that occurred in localities which do not disclose such data. Preventative measures are needed to allow for greater transparency so as to protect children and reassure parents for the welfare of their families.

The Youth of the EPP calls on the establishment of a central EUwide vetting agency that will be administered by EUROPOL and will allow for the screening of potential staff that may have access to children, in respect to their human rights We suggest that funding for this agency comes through the Freedom, Security and Justice, and Citizenship budget.

As the Youth of the EPP, we welcome the enshrining into EU law that organizations whose staff has access to children must properly vet any new employees coming from outside their jurisdiction.

Convention on the rights of the Child

presented by KRFU, Norway

Don’t play with the Dictator The Youth of the EPP has always been strongly committed to human rights and to the struggle against their violation. It cannot be positively seen that Belarus has been given the responsibility of hosting the 2014 ice hockey world championship by the International Ice Hockey Federation (IIHF), which will be used to the advantage of the regime, a regime that is known as a gross violator of basic human rights. We believe it is the responsibility of the European community to take action and speak out against such a regime to ensure the human rights of all people.

Several non-governmental organisations working in Belarus have started a joint campaign named “Don’t play with the dictator” (www.minsk2014.no) which seeks to influence the IIHF to suspend the 2014 IIHF World Championships in Belarus.

This event would support and legitimize a regime that violates human rights and therefore it cannot have our endorsement. YEPP supports the campaign “Don’t play with the dictator” (www.minsk2014.no) which asks the International Ice Hockey Federation (IIHF) to suspend its plans to hold the 2014 IIHF World Championship in Belarus.

presented by Giovani per la Liberta, Italy

The Erasmus Mundus project in North Africa Erasmus is the education program of the European Union that enables students and staff from various countries to study or work abroad every year, thus exchanging valuable research and training. It has particularly enhanced language and social skills and has allowed for its participants to immerse themselves in new cultures and understanding. We of the Youth of the EPP believe that the Erasmus experiences empower students with additional credentials and knowhow to enter the labour markets. Its annual budget of 450 million euros has given the opportunity to 2.2 million students and more than 4000 higher education institutions to take part since it was first introduced in 1987. YEPP has particularly stressed for Erasmus to provide the platform for cooperation between the two shores of the Mediterranean.

The Youth of the European People’s Party finds it crucial that the EU enlarges the Erasmus project to allow for countries in North Africa to take part, considering that they need assistance in civil reconstruction since their former rulers have been overturned.

We call upon the EU Commission to increase the number of exchanges from countries involved in the “Arab Spring�, particularly between teachers and staff, so as to assist in the process of democratization that they are going through.

Erasmus Mundus projects particularly aimed at promoting European Higher Education in North Africa should be increased, especially in subjects such as doctorates, architecture, environment and sustainability.

presented by Young Fine Gael, Ireland

The provision of an ECB Eurozone-wide banking regulator The primary source of the European banking crises was the failure to regulate the banking sector to safeguard against systemic risk factors. Moreover, Eurozone banks have relied heavily on the liquidity provided by the European Central Bank as a substitute for the loss of access to private wholesale funders.

The Youth of the EPP believes that the European Central Bank should set up an independent unit for banking supervision with clear separation from its monetary policy duties, such as setting interest rates and the supervision of the regulatory and financial framework of financial institutions in the Eurozone. This could be achieved through the granting of broad regulatory powers to the ECB over all Eurozone banks to eliminate interference by politicians in banking supervision.

ECB could use the former national regulators as "ECB national offices", delegating powers to perform audits on smaller banks, and implement ‘stress tests’ to assess the banks’ minimal risks weighted capital adequacy ratios (according to the Basel III requirements).

Therefore, we firmly believe that it would be necessary to delegate supervisory powers on a national level, as there are an estimated 6,000 lenders currently operating in the Eurozone, of which only twenty would need super-national supervision based on their impact on the national currency. The smaller lenders could have supervision undertaken by ECB-delegated independent national regulators. This set-up would run alongside existing national regulators, rather than replacing them allowing for better independent auditing and regulation.

We call on the European Central Bank to set up an independent unit for banking supervision with clear separation from its monetary policy duties, such as setting interest rates, and the supervision of the regulatory and financial framework of the activities of banks and financial institutions in the Eurozone We feel it is crucial that broad regulatory powers are established within the ECB over all Eurozone banks, to eliminate interference by politicians in banking supervision.

presented by Giovani per la Liberta, Italy

In support of the Regions and Member States struck by Natural Disasters Natural disasters have struck the European Union member states more than ever in the past decade. Remembering the 2010 floods in the Czech Republic, Croatia, Poland or Slovakia, the forest fires in Spain and Portugal in 2003 or in Greece in 2007, or the damaging earthquake in Northern Italy in May 2012, the Youth of the EPP applauds the availability of the EU Solidarity Fund. This fund complements the public efforts of the beneficiary state and intends to finance measures alleviating non-insurable damage in principle. That being said, it was found that the Solidarity Fund granting process suffers from administrative difficulties, having negative consequences for the states in need of funds. Not only is there a disproportionate number of applications due to vague criteria definitions, also can the Commission not act upon its own initiative. Finally, the approval of grant proposals by the European Parliament and Council delays the allocation, exactly at times where a swift allocation is needed. The Youth of the EPP strives therefore for a more rapid allocation procedure.

For the Youth of the EPP, the European Council should approve the possibility to pay advances as specified in the 2005 Proposal for an Amended Solidarity Fund with an Enlarged Scope. In case of major disasters, the EU Commission would provide an advance promptly, helping the immediate reconstruction. If the application for the Solidarity Fund is not accepted, the applying State will repay the EU Commission.

We find it important that the EU Commission would increase and strengthen the communication with Member States after a natural disaster. The EU Commission should help the national authorities providing the tools for a more accurate and rapid quantification of the damages.

Crucially, we believe that the EU institutions should devolve a part of the fund to the prevention of disasters, in order to avoid future victims and damages and in order to reduce costs.

presented by Junge Union, Germany

Putting Hezbollah on the EU list of terrorist organizations The Youth of the EPP condemns the terrorist actions undertaken by Hezbollah, which is, in our eyes, a fundamentalist organization. Indications lead no doubt to the fact that Hezbollah maintains cooperative relations with the totalitarian regimes in Syria and Iran. It also has a destabilizing influence in the crisis-ridden Middle East, especially in Lebanon. In that regard, the Youth of the EPP refers to the European Council’s Common position establishing a list of terrorists and terrorist groups that allows the EU to freeze funds and financial assets and shows itself in favour of putting Hezbollah on that list.

The Youth of the EPP calls on the EU member states to put Hezbollah on the EU list of “terrorists and terrorist groups” in order to permit effective sanctions against its financial structure.

presented by CDJA, The Netherlands

Public Private International Cooperation Each year, the EU Member States spend more than 45 billion Euro on international cooperation, whereas the UE Commission has a budget of 9 billion Euro until 2013.

This makes the European Union the biggest group of donors on international cooperation in the world. A call for harmonisation of member-state cooperation programmes was agreed upon in 2007. The recession in the EU nonetheless constrains the EU Member States to tighten their national budgets. As a result, the OECD engagement to commit 0.7% of the budget to development cooperation could come under pressure. That being said, through public-private partnerships, business instruments and economic diplomacy, it is possible to make a profit for poverty reduction as well as for the private sector. Private-sector investments moreover increase the opportunities for economic growth for developing countries, as they help to diversify the economy and improve the investment climate due to agglomeration eects. The Youth of the EPP therefore favours a closer cooperation between public and private actors in international cooperation.

The Youth of the EPP calls on the European Commission and the Member States to recognize that, beside the European institutions, EU Member States (national governments) and NGOs, also the private sector does matter in international cooperation policy.

For us, it is important that the private sector is involved as much as possible in international cooperation policymaking, e.g. through the use of public-private partnerships. That being said, they should take caution not to return to past policies of tied aid.

Next to that, the Youth of the EPP calls on the European Commission and the EU Member States to maximize the legal and administrative support of NGOs in their international cooperation policy.

presented by the YEPP Board

Reforming Family Policy Family is central in YEPP’s vision of a better Europe. In 2012 Europe’s reality includes a reverse population pyramid and sandwich generation caring for both parents and children concurrently. Aside from that, the EU sees high immigration and related childbirth, as well as an increase in births outside marriage and divorce rates up to 50% in the EU27. The failure to include new family structures in policy leaves a growing number of children and parents without equal financial and legal support.

Policy responses are required to address these changing realities and ensure that family values remain central. As family policy is a member state competence, reforms must balance respect for cultural differences and individuals’ rights to privacy and autonomy while assuming political responsibility for the citizens’ personal economic responsibility as well as the demographic and economic welfare of populations.

We as the Youth of the EPP therefore call on a supportive legal framework as well as financial support established with the aim to allow a flexible work-care life balance, neutralising through policies the negative impact of disruptions of careers due to family responsibilities. In our view, this could be achieved by supporting flexibility in rules, attitudes and use of technology in workplaces and elsewhere, as well as maternity and paternity leave. Our vision of this core topic in the future of Europe focuses on enabling young people to have families at the same time as contributing to the work force, two sometimes conflicting objectives of vital importance: to enable demographic and economic growth.

presented by ONNED, Greece NNGG, Spain

Towards an EU-US Free Trade Agreement The two largest trading powers in the world, the European Union and United States of America, are facing strong competition from China and other emerging economies of the East. During the US-EU 2009 Summit, political leaders from both sides expressed their intention towards resisting protectionist measures and barriers in their bilateral trade. Unfortunately, the current Doha Development Round agenda has made no progress towards fulfilling its objectives for the past four years according to the 2012 World Trade Organization report. Taking into consideration that 44% of the World GDP is represented by transatlantic economy and that 27% of the World Exports and 35% of the imports are represented by the EU-US transactions, it is clear to YEPP that the EU and the US should go forward with adopting trade liberalization measures.

In times of crisis EU and US are facing, YEPP strongly believes that the European Commission and the US Ministry of Trade and Industry should join forces towards launching a transatlantic trade agreement.

YEPP calls upon an agreement which will address to the key issues of eliminating tariffs and NTBs on imports and exports of goods between the two sides, minimizing shipping costs, stimulating a healthy competition, freeing up investments between the EU and the US.

presented by OTPDL, Romania MGERB, Bulgaria

In Support of Romania and Bulgaria’s accession to the Schengen area Bulgaria and Romania's bid to join the Schengen Area was approved but later again rejected because of some of the EU member states government’s concerns regarding corruption, fighting against organized crime and illegal immigration in these countries. It is the reading of the Youth of the EPP that Romania and Bulgaria had nonetheless already fully complied with the provisions of the Schengen area, as stated by all evaluation reports.

More importantly, it is our conviction that the addition of Romania and Bulgaria to the Schengen Area is a vital part of the integration process in the European Union.

Currently the internal borders of the EU are in contradiction with the principle of freedom of movement of goods and persons, which results in affected commercial exchanges between Member States. Enlargement of the Schengen Area will create new business opportunities that are crucial in time of economic crisis, mostly for small enterprises, which are the core of the European economy.

The Youth of the EPP underlines that both Romania and Bulgaria, had fully complied with the provisions of the Schengen area, as stated by all evaluation reports. Also, we repeat that domestic political issues should not affect the accession of Romania and Bulgaria into the Schengen Area.

We call on the EU Member States to take an objective and constructive approach about the enlargement of the Schengen area, based on identical and clear rules, by not allowing double standards and other additional criteria (for example the Co-operation and Verification Mechanism).

presented by IRLY, Estonia ONNED, Greece JCVP, Switzerland

Free movement in Switzerland Swiss authorities decided to recall a safeguard clause that as of 1 May 2012, set quantitative limitations on the residence permits to nationals of ten post-communist countries. As Switzerland has signed the Free Movement of Persons Agreement that guarantees all EU citizens equal rights on the Swiss labour market, this recall makes their decision an unlawful act against citizens from Central and Eastern EU Member States. Article 10 of the 1999 Agreement, does not allow for any differentiation on the basis of nationality when ceilings for residence permits or quotas are to be established, therefore YEPP believes that this decision by the Swiss should be assessed as discriminatory measure.

Since the 2004 enlargement of the EU, Eastern and Central Europeans have had to face several barriers during their progress towards real equality: delays on opening up the job market, immigrant-related discriminating campaigns, as seen in the Netherlands, Belgium and Denmark, and now Switzerland’s decision to recall the safeguard clause. Therefore, YEPP calls on all the Members States to unconditionally condemn such acts in order to prevent strengthening of extremism and far-right movements that can jeopardise the EU as a whole.

We, as the Youth of the European People’s Party, call on the Swiss Government to recall the decision to limit residence permits granted to citizens of 8 Members States (Poland, Lithuania, Latvia, Estonia, Slovenia, Slovakia, the Czech Republic and Hungary) based on national differentiation We also call on the member states of EU to use all their power to fight against discriminating actions in order to prevent strengthening of extremism and far-right movements that can jeopardise the EU as a whole. Recent examples of immigrantrelated discriminating campaigns, as seen in the Netherlands and Denmark, should always be condemned by both National and EU Institutions.

written by Maria Kristine Göthner Unge Høyre, Norway

Topic: Women’s Quotas.

Facts: Yes. Lots. On both sides.

Debate: High temperature.

Conclusion: Tricky. Needs further debate.

The debate among the Youth of the EPP during their most recent Council Meeting held in Madrid, September 27-30 was very interesting, to say the least. The debate was particularly relevant and timely as the EU Commissioner for Justice and Home affairs, Viviane Reding, is to put forward a proposal later this fall aimed at introducing legal gender quotas. The motion would give sanctions and fines to state-owned or publiclylisted companies whose supervisory boards are composed of less than 40 percent women by 2020.

The arguments in favor and against quotas are many. Both sides share the view that more women are needed in

boardrooms. The debate is how we get there.

Today, the female representation in corporate supervisory boards in the EU is on average 12 percent. In 2010, women accounted for less than 3% of company chairs, and about 34% of large companies in the EU do not even have one woman on their boards1.

There is also not one EU member state with an average of 40 percent representation, and statistics arguably show that the development towards equal representation will take time. These statistics confirm that gender equality is a problem in the EU.

One of the arguments in favor of quotas is based on the current statistics.

The numbers are low and development is slow. In some member countries, there are even fewer women in boardrooms now, than in 2005. 2

The question is whether a change will occur by itself as long as the companies are male dominated and when the recruitment of new board-members is organised within the men’s network. And if it is not in the male leaders’ own interests to give up their board seats, why would women get more opportunities in the future without the external policy regulation? 3

On the other side, gender equality should be measured by offering men and women equal opportunities and rights.

It should not be a struggle for statistics and percentage levels. The numbers could possibly look better, but power and decision-making inside the boardrooms is not possible to regulate.

The aim of the law is to get more women inside boardrooms, but would it be any point if their role were nothing more than to be a part of statistics?

Norway, for example, introduced quotas in 2003, and one could argue against quotas for two reasons after observing the development. Firstly, the Norwegian case showed that quotas only really helped women who already were board-members.

Secondly, it could be felt that gender quotas undermine the legitimacy of the women who are elected to boards. This might even have a spillover effect on women elected without regulation, as they can be

1

expected to also gain less authority, leading their colleagues to doubt their competences.

On the other side, it can equally be argued that the legitimacy is not undermined since men are elected to boards frequently as a result of their connections and network. Not necessarily by their talents. Here, a case for their authority and doubts about their competences can thus be made also.

Interestingly, another debate has been whether companies are damaged by introducing gender quotas. The Credit Suisse Institute study: “Does Gender Improve Performance?” states that over the past six years, companies with at least some female board representation outperformed those with no women on the board, in terms of share price performance. The Norwegian example has shown that on the same day that the law was approved by the parliament, companies

that had less than 10 percent women, decreased their stock value by an average of 17 percent5.

The above-stated arguments only hint at the most divergent positions that the Youth of the EPP share. During its Madrid Council Meeting, the Youth of the EPP decided not to take a stance in the debate yet.

It is nonetheless expected that the upcoming winter months will spark the thinking among European youngsters on the topic.

And that, for sure, brings forth our ideas of justice, equality and government regulation.

European Commission working paper, The gender Balance in Business Leadership, 2011.

EWL Report on Progress, Gaps and Good Practice.

3 Reference: World Development Report 2012, Gender Quotas and Female Leadership by Pande, Rohini and Ford.

4 John Chr. Langli: Kjønnskvoterte styrer, parktisk økonomi og finans, Vol 27, 4-2011. Universitetsforlaget 5 The Quarterly Journal of Economics (2012) 127(1):137-197 ”The Changing of the Boards: The Impact on Firm Valuation of Mandated Female Boa 2

Debate: To be continued!

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PODIUM A POLICY HANDBOOK