Explanatory Memorandum to COM(2006)113-1 - Signature and provisional application of the Agreement between Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the EC, Iceland, Macedonia, Norway, Serbia and Montenegro, Romania and the UN Interim Administration Mission in Kosovo on the Establishment of a European Common Aviation Area (ECAA)

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CONTEXT OF THE PROPOSAL

Grounds for and objectives of the proposal In October 1996, the Council granted the Commission a mandate to negotiate a multilateral agreement with the then candidate countries as well as Iceland and Norway. The reason for such a mandate was to open up markets between Europe and its neighbours, so that a 'European Common Aviation Area' (ECAA) between the Community and third countries follow the same pattern as the internal market itself: - Full market opening in terms of access, capacity and fares and freedom of establishment without nationality clauses (on a reciprocal basis), - Alignment with Community legislation on issues such as safety, security and air traffic management. The negotiations with the then candidate countries were discontinued in 2002, in view of impeding accession. The extension of the mandate to the Balkan region in December 2004 was an important step forward and will help these parties to come closer to the EU in this sector of key economic importance.

General context The text of the multilateral agreement was accepted by Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the European Community, Iceland, the former Yugoslav Republic of Macedonia, Norway, Serbia and Montenegro, Romania and the United Nations Interim Administration Mission in Kosovo during the final round of negotiations on 20 December 2005. The outcome of these negotiations constitutes significant and valuable progress. The level of regulatory convergence is unprecedented, as all 8 Western Balkan partners or 'ECAA partners' have accepted to align their national aviation legislation to the complete aviation acquis of the Community. Harmonised rules in Europe will create a common, free and safe air transport market, which can be a driving force for other sectors and contribute to the development of the whole region, benefiting consumers and industry alike. This a major step forward where air transport will play a key role in putting impetus on the political and economic integration of Europe.

Existing provisions in the area of the proposal Air service agreements between the Member States and the ECAA Partners will be superseded by the Agreement.

Consistency with the other policies and objectives of the Union The ECAA was expressly designed as an open framework accessible for European countries which wish to fully integrate into the European aviation family and to fit into the Neighbourhood Policy of the Community.

3.

CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT


Consultation of interested parties

Consultation methods, main sectors targeted and general profile of respondents Special Committee, Industry Consultative Forum. Sector: air transport. Respondents: Member States, airlines, airports, and their associations.

Summary of responses and how they have been taken into account General support; policy and legislative proposals taken into account when negotiating with the ECAA partners.

4.

Collection and use of expertise


Scientific/expertise domains concerned air transport

Methodology used Assessment Reports on the air transport sector of each Western Balkan partner

Main organisations/experts consulted independent experts of Member States

Summary of advice received and used The existence of potentially serious risks with irreversible consequences has not been mentioned.

Market opening will be linked with regulatory convergence i.e. the ECAA Partners implementing the Community aviation acquis setting very high standards for aviation safety, security, environmental and consumer protection, competition etc.

Means used to make the expert advice publicly available Assessment Reports shared with Member States and stakeholders.

Impact assessment Assistance program for the Western Balkan partners to help them implement the Community aviation acquis. No other options considered as appropriate.

1.

LEGAL ELEMENTS OF THE PROPOSAL



Summary of the proposed action The text has been significantly simplified since it was first negotiated in 1996 with the then ten candidate countries. For instance, competition issues will now be dealt with through the Stabilisation and Association process. A common, 'multilateral main text' forms the basis of the ECAA, which is applicable to all signatories. To this common text are added a series of Protocols accommodating for specific needs of each country joining the ECAA, including the appropriate transitional arrangements. Finally, the Annex to the agreement lists the Community aviation acts that will become applicable within the ECAA.

Legal basis EC Treaty Art. 80 i, 300 i, 300 i

Subsidiarity principle The proposal falls under the exclusive competence of the Community. The subsidiarity principle therefore does not apply.

Proportionality principle The proposal complies with the proportionality principle for the following reason(s).

The ECAA Agreement is a multilateral aviation agreement which will supersede to a large extent bilateral air service agreements between the Member States and the ECAA partners. However, Member States will remain able to introduce safeguard measures where necessary.

The Agreement will be administered by a Joint Committee of the Parties. One or two meeting per year is foreseen.

5.

Choice of instruments


Proposed instruments: international agreement.

The Council is requested to adopt the Decisions on the signature and provisional application, and on the conclusion of the Agreement.

2.

BUDGETARY IMPLICATION



The proposal has no implication for the Community budget.

6.

ADDITIONAL INFORMATION


Simplification

The proposal provides for simplification of legislation.

The several bilateral air service agreements between Member States and the ECAA Partners will be to a large extent substituted by one single Community agreement.

Detailed explanation of the proposal Proposals i for a Council decision on the signature and provisional application of the Multilateral Agreement between the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the Republic of Croatia, the European Community, the Republic of Iceland, the former Yugoslav Republic of Macedonia, the Kingdom of Norway, Serbia and Montenegro, Romania and the United Nations Interim Administration Mission in Kosovo on the Establishment of a European Common Aviation Area (ECAA) and i for a Council decision on the conclusion of the ECAA Agreement.

7.

1. Proposal for a


COUNCIL DECISION

on the signature and provisional application of the Multilateral Agreement between the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the Republic of Croatia, the European Community, the Republic of Iceland, the former Yugoslav Republic of Macedonia, the Kingdom of Norway, Serbia and Montenegro, Romania and the United Nations Interim Administration Mission in Kosovo on the Establishment of a European Common Aviation Area (ECAA)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 80, paragraph 2, in conjunction with Article 300, paragraph 2, first sentence of the first subparagraph thereof, and Article 300, paragraph 4,

Having regard to the proposal from the Commission i,

Whereas:

The Council authorised the Commission to open negotiations with certain European third countries to establish a European Common Aviation Area (ECAA);

The Commission has negotiated on behalf of the Community a Multilateral Agreement with Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Iceland, the former Yugoslav Republic of Macedonia, Norway, Serbia and Montenegro, Romania and the United Nations Interim Administration Mission in Kosovo on the establishment of a European Common Aviation Area in accordance with the mechanisms and directives in the Annex to the Council’s decision authorising the Commission to open the ECAA negotiations;

Subject to its possible conclusion at a later date, the Agreement negotiated by the Commission should be signed and applied provisionally.

HAS DECIDED AS FOLLOWS:

8.

Article 1


1. Subject to its subsequent conclusion at a later date, the President of the Council is hereby authorised to designate the person or persons empowered to sign on behalf of the Community the Multilateral Agreement between the Republic of Albania, Bosnia and Herzegovina, the Republic of Bulgaria, the Republic of Croatia, the European Community, the Republic of Iceland, the former Yugoslav Republic of Macedonia, the Kingdom of Norway, Serbia and Montenegro, Romania and the United Nations Interim Administration Mission in Kosovo on the Establishment of a European Common Aviation Area (ECAA).

2. Pending its entry into force, the Agreement shall be applied provisionally from the date of signature between the Community and any other parties which make the notification provided in Article 29 i of the Agreement, provided that they include at least one Associated Party. The President of the Council is hereby authorised to make such notification on behalf of the Community.

3. The text of the Agreement is annexed to this decision.

9.

Article 2


1. The Community shall be represented in the Joint Committee set up under Article 18 of the Agreement by the Commission assisted by representatives of the Member States.

2. The position to be taken by the Community as regards decisions of the Joint Committee shall be adopted by the Commission.

Done at Brussels,

10.

For the Council


The President