Explanatory Memorandum to COM(2012)688 - Signature and provisional application of the Aviation Agreement with Israel

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This page contains a limited version of this dossier in the EU Monitor.

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 Government of the State of Israel, of the other part has been negotiated by the Commission as authorised by the Council in April 2008. Air services between the EU and the State of Israel presently operate on the basis of bilateral agreements between individual Member States and the State of Israel. It is part of the EU's external aviation policy to negotiate comprehensive air services agreements with neighbouring countries where the added value and economic benefits of such agreements have been demonstrated. The Agreement aims at: - gradual market opening in terms of access to routes and capacity on a reciprocal basis; - promoting regulatory cooperation and harmonisation of regulations and approaches based on EU legislation in the field of aviation; - promoting air services based on competition among air carriers with minimum government interference and regulation; - non-discrimination and level playing field for economic operators.

|| · General context The negotiating directives set out the general objective of negotiating a comprehensive air transport agreement with the aim of gradually and reciprocally opening market access and ensuring regulatory convergence and effective implementation of EU standards. In accordance with the negotiating directives, a draft Agreement with the Government of the State of Israel was initialled by the two sides on 30 July 2012.

|| · Existing provisions in the area of the proposal The provisions of the Agreement shall prevail over the relevant provisions of the existing bilateral air services agreements between Member States and the State of Israel. However, existing traffic rights which originate from these bilateral agreements and which are not covered under this Agreement can continue to be exercised, provided that there is no discrimination between the Member States and their nationals.

|| · Consistency with the other policies and objectives of the Union The conclusion of a comprehensive air transport agreement with the Government of the State of srae is an important element in the development of the EU external aviation policy and in particular a wider European Common Avition Area, as described in the Commission Communication COM(2005) 79 final "Developing the agenda for the Community's external aviation policy".

2. Consultation of interested parties and impact assessment In line with Art. 218 TFEU the Commission has conducted the negotiations in consultation with a special committee. In addition, it consulted interested parties throughout the process.

|| · Consultation of interested parties

|| Consultation methods, main sectors targeted and general profile of respondents The Commission has consulted with stakeholders, in particular via the Consultative Forum comprising representatives of air carriers, airports, and labour organisations.

|| Summary of responses and how they have been taken into account The stakeholder comments, many of which were made orally in the context of the negotiations, which took over three years and eight negotiation rounds, or numerous EU preparatory meetings, concerned especially an as fast as possible opening of the EU-Israel aviation market (flights from/to the EU to/from Israel) and regulatory convergence. Furthermore, the stakeholders wished to make sure the EU rules on slots are respected in the agreement. All comments from stakeholders were duly taken into consideration in the preparation of the Union's negotiating position. The stakeholders have after the finalisation of the negotiations expressed they are keen to see the agreement signed and implemented.

|| · Collection and use of expertise

|| There was no need for external expertise.

|| · Impact assessment A report prepared for the Commission in 2007 by consultants on the economic impact of the agreement, estimated that the economic benefit of such an agreement would be up to altogether € 96 Mio p.a. in consumer surplus as a result of lower fares. The analysis also showed a positive impact in terms of job creation. A summary of this report was contained in a Communication from the Commission published on 9 November 2007 (COM(2007)691 final). 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 six annexes: Annex I on agreed services and specified routes; Annex II on transitional provisions; Annex III with a list of the states referred to in articles 3, 4 and 8 of the Agreement; Annex IV on rules relating to civil aviation; Annex V on agreed base frequencies on certain routes; and Annex VI on regulatory requirements and standards.

|| · Legal basis Article 100  i, in conjunction with Article 218  i and , first paragraph 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).

|| The provisions of the Agreement will prevail over the relevant provisions of the existing arrangements made by individual Member States. The Agreement creates simultaneously for all Union air carriers equal and uniform conditions for market access, and establishes new arrangements for regulatory co-operation and convergence between the European Union and the State of Israel 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 will be able to operate freely from any point in the European Union to any point in the State of Israel which is currently not the case.

|| The gradual removal of all market access restrictions between the EU and the State of Israel 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 EU and Israeli 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. The subsidiarity principle applies insofar as the proposal does not fall under the exclusive competence of the Union.

|| · 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.

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