JHA on combating corruption in the private sector - Main contents

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dossier	COM(2007)328 - Based on Article 9 of the Council Framework Decision 2003/568/JHA on combating corruption in the private sector.
document	COM(2007)328
date	June 18, 2007

Annex to this Report.

3. NEXT STEPS FOR THE FRAMEWORK DECISION

The Commission takes this opportunity to draw attention to two issues which will need to be addressed in the coming years:

- 'Reformattage'

As indicated by the Commission in its Communication "On the Implications of the Court's Judgement of 13 September 2005" (Case C-176/03 Commission v Council) (COM(2005) 583 final/2 Brussels 24.11.2005), the Council Framework Decision on Combating Corruption in the Private Sector is one of the instruments which is affected by this judgement. The judgement would indicate that the legal base of the Council Framework Decision requires amendment. The implications for the Council Framework Decision, and the approach to be adopted, will be addressed at a future date.

- Review of Article 2 by Council, as provided by Article 2(5)

By virtue of Article 2 (4), Member States' Declarations made under Article 2 (3), are due to expire on 21 July 2010. By that date, the Council is required by Article 2 (5) to review Article 2 "with a view to considering whether it shall be possible to renew Declarations made under paragraph 3." Four Member States (AT, DE, IT, PL) have made Declarations.

4. CONCLUSIONS

It should be noted that, by their nature, framework decisions[12] are binding upon the Member States as to the results to be achieved, but it is a matter for the national authorities to choose the form and method of implementation. Framework decisions do not entail direct effect. As the Commission has no authority under the Third Pillar to initiate an infringement procedure against a Member State, the nature and purpose of this report is limited to a factual evaluation of the transposition measures taken by 23 Member States (effectively twenty for the reasons given earlier).

Summary table showing extent of transposition by 20 Member States

I = no/insufficient information N = not transposed P = partly transposed T = fully transposed

MS | Article 1 | Article 2 | Article 3 | Article 4 | Article 5 | Article 6 | Article 7 (1) |

AT | I (LP) I (BofD) | P | T | P | N | N | I |

BE | T (LP) T (BofD) | T | T | I | P | I | P |

DE | 1 (LP) I (BofD) | P | T | T | P | P | T |

DK | T (LP) I (BofD) | P | T | T | P | T | T |

EE | T (LP) T (BofD) | P | T | T | P | P | I |

FI | T (LP) I (BofD) | P | T | T | P | P | I |

FR | I (LP) T (BofD) | P | I | P | P | I | I |

HU | T (LP) I (BofD) | P | T | P | I | P | P |

IE | T (LP) T (BofD) | P | T | T | P | P | P |

IT | I (LP) I (BofD) | P | T | T | N | N | P |

LT | T (LP) T (BofD) | P | T | T | T | T | I |

LU | I (LP) I (BofD) | P | T | T | T | P | P |

LV | I (LP) I (BofD) | P | T | P | P | P | P |

NL | I (LP) T (BofD) | P | T | T | T | T | P |

PL | T (LP) T (BofD) | P | T | T | T | T | P |

PT | T (LP) T (BofD) | P | T | P | P | P | P |

SE | I (LP) I (BofD) | P | T | T | P | P | P |

SK | I (LP) I (BofD) | P | T | P | N | N | P |

SI | T (LP) I (BofD) | P | T | P | T | T | P |

UK | T (LP) I (BofD) | T | T (England, Wales & NI) I (Scotland) | P | P | P | T |

Total transpositions | 10 (LP) 8 (BofD) | 2 | 18 | 11 | 5 | 5 | 3 |

(LP) = Legal Person BofD = Breach of Duty

Concluding Remarks

It is a source of concern to the Commission that transposition of this Council Framework Decision is still at an early stage among Member States. The Commission reminds Member States of the importance they have attached to the fight against private sector corruption[13]. Furthermore, the Commission notes that this importance is also reflected in the Council of Europe Criminal Law Convention against Corruption 1999, and in the UN Convention against Corruption 2003. Strong, comprehensive legislation at national level is the foundation for effective protection of the private sector against this economic threat.

The Commission invites all Member States to consider this Report and to take the opportunity to provide all further relevant information to the Commission and Council Secretariat, in order to complete the fulfilment of their obligations under Article 9, Framework Decision. In addition, the Commission encourages those Member States which have signalled that they are preparing relevant legislation, to enact these national measures as soon as possible and to provide the texts to the Council Secretariat and to the Commission for analysis. This call is particularly made to Greece and Spain, which indicated in 2005 that they were preparing draft legislation, but have not provided any further information. Finally, the Commission notes with concern that 2 Member States have not replied to date (CY, MT), contrary to Article 9, and urges them to furnish the full details of their transposition without further delay.

The annexed staff working paper provides a more detailed analysis of the Member States' national measures, on which the Commission's analysis is based.

[1] 2524th Meeting of the Council of the European Union (Agriculture and Fisheries) held in Brussels on 22 July 2003

[2] OJ L 192, 31.7.2003, p. 54

[3] Throughout this Report, the term "Member States" will be taken to refer to the EU-25; Romania and Bulgaria will be invited to contribute to any subsequent Report which may be prepared

[4] OJ C 316, 27.11.1995, p. 3

[5] OJ C 195, 25.6.1997, p. 1.

[6] Joint Action of 22 December 1998 adopted by the Council on the basis of Article K.3 of the Treaty on European Union, on corruption in the private sector (98/742/JHA) OJ L 358, 31.12.1998, p. 2-4.

[7] Criminal Law Convention against Corruption (ETS No. 173 Strasbourg 27.1.1999) http://conventions.coe.int/Treaty

[8] The exceptions are Austria, France, Germany, Greece, Italy and Spain.

[9] Belgium, Czech Republic, Poland – Articles 7, 8; United Kingdom – Article 7; Hungary – Article 8.

[10] Initiative of the Kingdom of Denmark with a view to the adoption of Council Framework Decision on combating corruption in the private sector (2002/C 184/04).

[11] COM(2001) 771, 13.12.2001, point 1.2.2

[12] Article 34 (2)(b), Treaty on European Union

[13] (paragraph (9) of the Framework Decision Preamble)