Explanatory Memorandum to COM(2010)303 - Signature and provisional application of the Euro Mediterranean Aviation Agreement with Jordan

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1. Context of the proposal

Grounds for and objectives of the proposal The Euro Mediterranean Aviation Agreement between the European Union and its Member States, of the one part, and the Hashemite Kingdom of Jordan, of the other part has been negotiated under a mandate received from the Council in November 2007. Air services between the EU and Jordan presently operate on the basis of bilateral agreements between individual Member States and Jordan. It is part of the EU neighbourhood policy to replace this network of bilateral agreements through the establishment of a Common Euro Mediterranean Aviation Area between the EU and its Mediterranean partners. The Agreement aims at: - gradual market opening in terms of access to routes and capacity on a reciprocal basis; - non-discrimination and level playing field for economic operators based on the principles of the EU Treaties; - Alignment of the Jordan aviation legislation with EU legislation on issues such as safety, security and air traffic management. The Agreement mentions the possibility to extend the Agreement in order to create with all the other Mediterranean Partners a Common Euro Mediterranean Aviation Area.

General context The negotiating mandate set the objective of establishing a Common Euro Mediterranean Aviation Area between the EU and Jordan. This would extend the rules and provisions of the single market for air transport in the EU to a large extent to Jordan in which European and Jordanian airlines would be able to provide air services without any restriction. Based on the negotiating directives of the mandate, a draft Agreement with Jordan was initialled by the two sides on 17 March 2010.

Existing provisions in the area of the proposal The provisions of the Agreement supersede the existing bilateral air services agreements between Member States and Jordan.

Consistency with the other policies and objectives of the Union The conclusion of an Euro Mediterranean aviation agreement with Jordan has been a priority for the EU and is an important element in the development of the European Neighbourhood Policy, as identified in Commission Communication COM (2005) 79 final "Developing the agenda for the Community's external aviation policy" and the Communication COM (2008) 596 final "Common Aviation Area with the Neighbouring Countries by 2010 – Progress report".

2. Consultation of interested parties and impact assessment

Consultation of interested parties

Consultation methods, main sectors targeted and general profile of respondents Throughout the negotiating process, the Commission has consulted with stakeholders, in particular via regular meetings of the Special Committee and the Consultative Forum comprising representatives of air carriers, airports, and labour organisations.

Summary of responses and how they have been taken into account All comments from stakeholders were duly taken into consideration in the preparation of the Union's negotiating position.

Collection and use of expertise

There was no need for external expertise.

Impact assessment The Agreement ensures the gradual establishment of a Euro Mediterranean Aviation Area with Jordan. A report prepared for the Commission in 2007 by consultants, estimated that an Euro Mediterranean Aviation Agreement with Jordan would generate 54,000 extra passengers and consumer benefits of up to 30 million € in the first effective year of market opening. The report has been made available to Member States and stakeholders via the CIRCA database. The Agreement establishes a Joint Committee which will be responsible for reviewing the implementation of the Agreement and its effects.

1.

Legal elements of the proposal



Summary of the proposed action The Agreement consists of the main body including the main principles, and three annexes: Annex 1 on traffic rights, Annex 2 on transitional provisions and Annex 3 including the EU aviation legislation to be taken over by Jordan.

Legal basis Article 207 (5), in conjunction with Article 218 paragraphs (2), (5) and  i of the Treaty on the Functioning of the European Union

Subsidiarity principle The subsidiarity principle applies insofar as the proposal does not fall under the exclusive competence of the Union.

The objectives of the proposal cannot be sufficiently achieved by the Member States for the following reason(s).

By establishing a Euro Mediterranean Aviation Area, the Agreement will extend EU legislation in the field of aviation to Jordan. In particular, Jordan will take over EU legislation in important fields such as safety, security and air traffic management. The Agreement will replace the existing arrangements made by individual Member States. The Agreement creates simultaneously for all Union air carriers uniform conditions for market access, and establishes new arrangements for regulatory co-operation between the European Union and Jordan in fields essential for the safe, secure, and efficient operation of air services. These arrangements can only be achieved at Union level because they involve a number of areas of exclusive Union competence.

Union action will better achieve the objectives of the proposal for the following reason(s).

The Agreement allows for the simultaneous extension of its terms to the 27 Member States, applying the same rules without discrimination and benefiting all Union air carriers regardless of their nationality. These carriers can now operate freely from any point in the European Union to any point in Jordan which is currently not the case.

Removal of all market access restrictions between the EU and Jordan will not only attract new entrants to the market and create opportunities to operate to underserved airports, but will also facilitate consolidation between EU air carriers.

The Agreement secures for all EU air carriers access to commercial opportunities, such as the possibility to freely establish prices. One further objective of the mandate is to create a level playing field between all European and Jordanian air carriers, and this requires strong regulatory co-operation which can only be delivered at Union level.

The proposal therefore complies with the subsidiarity principle.

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

A Joint Committee will be established to discuss matters related to the implementation of the Agreement. The Joint Committee will foster expert-level exchanges on new legislative or regulatory initiatives or developments and consider potential areas for further development of the Agreement. The Joint Committee will be composed of representatives of the Commission and the Member States.

Furthermore, Member States will continue to carry out the traditional administrative tasks they execute in the context of international air transport, but under common rules applied uniformly.

Choice of instruments

Proposed instruments: international agreement

Other means would not be adequate for the following reason(s). External aviation relations can only be given effect through international agreements.

2.

Budgetary implication



The proposal has no implication for the Union budget.