European Union

Plenary sessions : As milk prices have collapsed across the EU and show no signs of recovering any time soon, MEPs will quiz Commissioner Phil Hogan on measures to alleviate pressure on dairy farmers and stabilize their incomes in a debate on Thursday, starting at 8.30. Factors blamed for the crisis include the Russian ban on imports from the EU, the end of milk quotas in 2015 and a drop in global demand.

Source : © European Union, 2016 - EP

Plenary sessions : New initiatives to allow consumers and companies to buy and sell products and services online more easily across the EU were welcomed by most MEPs in a debate with Commission Vice-President for the Digital Single Market, Andrus Ansip, on Wednesday. Parliament will co-decide on equal footing with the EU Council of Ministers on the Digital Single Market legislative proposals.

Source : © European Union, 2016 - EP

Plenary sessions : King Willem-Alexander of the Netherlands addressed Parliament in Brussels in a formal sitting on Wednesday for the first time since his accession to the throne in April 2013. Speaking of identity and solidarity, the King said he belonged to the first generation of Europeans in history to enjoy the good fortune of peace and expressed the hope future generations would have this opportunity too: “It’s all too easy to take peace for granted.“

Source : © European Union, 2016 - EP

Plenary sessions : New initiatives to allow consumers and companies to buy and sell products and services online more easily across the EU were welcomed by most MEPs in a debate with Commission Vice-President for the Digital Single Market, Andrus Ansip, on Wednesday. Parliament will co-decide on equal footing with the EU Council of Ministers on the Digital Single Market legislative proposals.

Source : © European Union, 2016 - EP

Plenary sessions : King Willem-Alexander of the Netherlands addressed Parliament in Brussels in a formal sitting on Wednesday for the first time since his accession to the throne in April 2013. Speaking of identity and solidarity, the King said he belonged to the first generation of Europeans in history to enjoy the good fortune of peace and expressed the hope future generations would have this opportunity too: “It’s all too easy to take peace for granted.“

Source : © European Union, 2016 - EP

The Council of the European Union (ECOFIN): 

-       WELCOMES the Commission Communication "Towards a single EU VAT area - Time to decide" (VAT Action Plan) and TAKES NOTE of the Special Report of the Court of Auditors No. 24: "Tackling intra-Community VAT Fraud: More action needed", as well as of the findings and recommendations set out therein; 

-       RECALLS Council conclusions of 15 May 2012 "On the Future of VAT", where the Council has emphasised that the EU needs a simpler VAT system, which at the same time is more efficient, more robust, fraud-proof and tailored for single market and has pointed out the following principles and legal considerations, which should be taken into account in furtherance of any future action: cost-efficiency, proportionality, unanimity, data protection legislation, compliance with the subsidiarity principle and full respect for the respective competences of the Union and the Member States; 

-       AGREES that the EU VAT system needs to be modernised and improved with these general objectives in mind, while stressing the importance of keeping the EU's business environment competitive; 

-       ACKNOWLEDGES the objectives outlined in the VAT Action Plan, which provide a framework to achieve a Single EU VAT area, and 

-       ADOPTS the following conclusions: 

I.       ON URGENT MEASURES TO FIGHT VAT FRAUD AND TACKLE THE VAT GAP

The Council of the European Union: 

1.      RECALLS the utmost importance of robust legal rules which hamper VAT fraud and AGREES with the Commission and the Court of Auditors that improving administrative cooperation between tax authorities is of significant importance in the fight against VAT fraud, and hence UNDERTAKES to pursue discussion on means of enhancing the scope of administrative cooperation and stepping up efforts to exchange information between tax administrations; 

2.      CONFIRMS that there is a need for further co-operation in a spirit of good understanding among business and tax administrations, as well as between tax administrations of EU Member States; 

3.      UNDERLINES that further initiatives in this area should form an efficient addition to existing rules and instruments and also seek to guarantee high standards of data protection, and fully take into account the principles of sovereignty, subsidiarity and proportionality; 

4.      TAKES NOTE of the Commission's intention to table in 2017 a legislative proposal that will aim at improving the exchange, sharing and analysis of key information and foresee conducting of joint audits; 

5.      ACKNOWLEDGES that improvement of information exchange could result in a clear improvement of efficiency in the fight against VAT fraud, and CALLS upon the Commission to propose ways of addressing  legal obstacles and practical limitations that might exist in the EU and in the Member States that prevent from making a qualitative leap in this area in the EU; 

6.      HIGHLIGHTS that this work should promote co-operation and cover the full range of available means and methods and alignment of procedures, including, inter alia, VIES, Eurofisc, feedback procedures and customs procedure 42, where the challenges both to customs and tax authorities must also be addressed; 

7.      LOOKS FORWARD to the other measures referred to in the VAT Action Plan that the Commission will propose to the Council with the objective of improving cooperation between tax administration and customs authorities; 

8.      UNDERLINES that as discussed during an informal meeting of ECOFIN ministers in Amsterdam, automatic exchange of information is one of the ways forward in the fight against fraud; 

9.      CONFIRMS that risk assessment and analysis remains a major area for further improvement in the EU, and INVITES the Commission, after the results of the feasibility study on Transaction Network Analysis have been evaluated by Member States, to present relevant initiatives enabling the Member States, wishing to start this tool on a voluntary basis, to exercise such an option, and at the same time ASKS the Commission to consider the possibilities of an explicit legal basis; 

10.    RECOGNISES that some Member States are more heavily affected by VAT fraud than others and the need to find practical and short-term solutions rapidly, and TAKES NOTE of the position of the Commission regarding a possible temporary derogation for certain Member States to apply the reverse charge mechanism in a wider scope and that the implementation of such derogation would require legislative measures;

11.    CONFIRMS that such derogations should not disproportionally hamper the proper functioning of the internal market; 

12.    UNDERLINES, without prejudice to a definitive VAT system, that the information obtained from a temporary derogation could be useful to decide on the most efficient way of fighting VAT fraud, and LOOKS FORWARD to an in-depth analysis by the Commission on possibilities for a temporary derogation, to be presented at the upcoming June ECOFIN; 

13.    TAKES NOTE of the non-legislative measures whereby the Commission intends to tackle the VAT gap and STRESSES that the Council will examine these non-legislative measures on the basis of the principles of sovereignty, subsidiarity, and proportionality. 

II.      ON SHORT AND MEDIUM-TERM ACTIONS IN VAT AREA AND SMEs 

The Council of the European Union: 

14.    WELCOMES the call by the Commission to reduce VAT compliance burdens for business, particularly for SMEs, both within Member States and across borders, and TAKES NOTE of the Commission's intention to make legislative proposals in  2016 and 2017; 

15.    EMPHASISES that the ultimate objective remains that VAT compliance costs in the single market are brought closer to the levels of those in domestic trade, however, further simplification should not result in an increase of VAT fraud risks or disproportionate rise of the costs of tax administration; 

16.    HIGHLIGHTS the importance of reflecting upon the position of micro-SMEs in the VAT system, in order to promote growth, jobs and real economy in the EU, without causing distortions of competition; 

17.    In the context of the Digital Single Market Strategy, STRESSES the importance of finding an EU-level solution rapidly to eliminate the competitive disadvantage for EU suppliers and UNDERTAKES to review the scope and discuss the possibility of repealing the VAT exemption for final importation of small consignments of goods into the EU by non-EU suppliers, considering also the impact of possible changes on the customs administration; 

18.    RECOGNISES the need to simplify cross-border e-commerce, and the opportunity to extend the "One Stop Shop" for online sales of tangible goods to final consumers and CALLS FOR further analysis and technical work to be undertaken on a common EU-wide simplification measure, including a threshold; 

19.    NOTES that the debate will continue concerning a possible  introduction of legal means allowing for home country checks, including a single audit of cross-border businesses;

20.    In this context, LOOKS FORWARD to receiving the results of the ongoing Commission' study on VAT obstacles to cross-border e-commerce and the legislative proposals by the Commission; 

21.    STRESSES that improvements on the current system could be possible and necessary in the short term. 

III.    ON THE DEFINITIVE VAT SYSTEM (SINGLE EU VAT AREA) 

The Council of the European Union: 

22.    TAKES NOTE of the points made by the Commission in its VAT Action Plan as regards the way forward towards the definitive VAT system and of its intention to present a legislative proposal in 2017 for the definitive VAT system for cross-border trade, as a first step;

23.    NOTES, while working towards the definitive VAT system in the EU, the importance of fully respecting the principles of subsidiarity and proportionality and taking full account of how potential EU-level solutions would best fit with the aspects upon which Member States continue to exercise their competence; 

24.    REITERATES that the principle of “taxation in the Member State of origin of the supply of goods or services”, as envisaged in article 402 of Directive 2006/112/EC on the common system of value added tax, should be replaced by the principle of “taxation in the Member State of destination” for the definitive VAT system for B2B transactions, as stated in the Council conclusions of 15 May 2012; 

25.    WELCOMES the in-depth technical work conducted by the Commission so far, as well as the broadly based dialogue it initiated with Member States to examine in detail the different possible ways how to best implement the destination principle; 

26.    STRESSES nevertheless that the work has to continue to set ground for the political choice to be made with regard to the definitive VAT system; 

27.    TAKES NOTE that taxation with cross-border reverse charge in the Member State of destination could be analysed as an option to the proposed taxation of cross-border supplies for the definitive VAT system; 

28.    UNDERSCORES that the Council will continue to follow up the debate to reach an agreement on the political guidance to the Commission to conduct further analysis that would enable it to carry this work forward and enable the Council to properly evaluate the impact of possible technical solutions and adopt those that suit the common EU objectives best. 

IV.    ON VAT RATES 

The Council of the European Union: 

29.    TAKES NOTE of the directions of action proposed in the Commission Action Plan on VAT with regard to the VAT rate system and its intention to make a legislative proposal in 2017, proposing a reform to give more freedom to Member States in setting up rates and proposing two options; 

30.    RECALLS the conclusions of the European Council of 17-18 March 2016 which welcomed "the intention of the Commission to include proposals for increased flexibility for Member States with respect to reduced rates of VAT, which would provide the option to Member States of VAT zero rating‎ for sanitary products";

31.    WELCOMES the intention of the Commission to present a proposal for increased flexibility for Member States, so that they could benefit from the existing reduced and zero rates in other Member States, INVITES the Commission to include an impact assessment, and STRESSES that a sufficient level of harmonisation in the EU remains required and the adopted solution has to be carefully balanced to avoid distortion of competition, rise in business costs and negative impact on the functioning of the single market; 

32.    INVITES the Commission to present a legislative proposal which integrates provisions concerning VAT rates for e-publications in the context of Digital Single Market initiatives by the end of 2016 and include an impact assessment; 

33.    CALLS UPON the Commission, in line with the March 2016 European Council conclusions, to present to the Council a legislative proposal foreseeing an option to Member States of VAT reduced or zero rating for women's sanitary products at the earliest opportunity. 

Plenary sessions : President Schulz paid tribute to Marco Pannella, who died on 19 May. He remembered Mr Pannella, a long-serving Italian MEP with whom he worked for many years, as a passionate defender of human rights, pacifism and pluralism, a staunch opponent of the death penalty, an advocate of prisoners’ rights, LGBT rights, and an early proponent of equality between men and women.

Source : © European Union, 2016 - EP

Plenary sessions : President Schulz paid tribute to Marco Pannella, who died on 19 May. He remembered Mr Pannella, a long-serving Italian MEP with whom he worked for many years, as a passionate defender of human rights, pacifism and pluralism, a staunch opponent of the death penalty, an advocate of prisoners’ rights, LGBT rights, and an early proponent of equality between men and women.

Source : © European Union, 2016 - EP

On 30 May, SEDE will exchange views with Rear Admiral Waldemar Gluszko, Deputy Director General of the EU Military Staff at the European External Action Service on the Clearing House Mechanism. This Mechanism offers the possibility for the EU to coordinate the provision of military equipment, services and other assets and capabilities coming from Member States, Third States and International Organisations in order to enhance partner countries’ ability to manage crises by themselves.
Further information
Draft agenda and meeting documents
Source : © European Union, 2016 - EP

Source : © European Union, 2016 - EP

OPINION on the proposal for a Regulation of the European Parliament and of the Council amending Regulation No 562/2006 (EC) as regards the reinforcement of checks against relevant databases at external borders
Committee on Foreign Affairs
Marielle de Sarnez

Source : © European Union, 2016 - EP

REPORT containing a motion for a non-legislative resolution on the draft Council decision on the conclusion, on behalf of the Union, of the Framework Agreement on Partnership and Cooperation between the European Union and its Member States, of the one part, and the Republic of the Philippines, of the other part
Committee on Foreign Affairs
Elmar Brok

Source : © European Union, 2016 - EP

RECOMMENDATION on the draft Council decision on the conclusion, on behalf of the Union, of the Framework Agreement on Partnership and Cooperation between the European Union and its Member States, of the one part, and the Republic of the Philippines, of the other part
Committee on Foreign Affairs
Elmar Brok

Source : © European Union, 2016 - EP

REPORT on Peace Support Operations – EU engagement with the UN and the African Union
Committee on Foreign Affairs
Geoffrey Van Orden

Source : © European Union, 2016 - EP

REPORT on space capabilities for European security and defence
Committee on Foreign Affairs
Bogdan Andrzej Zdrojewski

Source : © European Union, 2016 - EP

RECOMMENDATION on the draft Council decision on the conclusion, on behalf of the European Union and its Member States, of the Protocol to the Framework Agreement on Partnership and Cooperation between the European Union and its Member States, of the one part, and the Republic of the Philippines, of the other part, to take account of the accession of the Republic of Croatia to the European Union
Committee on Foreign Affairs
Elmar Brok

Source : © European Union, 2016 - EP

On 25 May 2016, the EU agreed new rules on medical devices and in vitro diagnostic medical devices. 

The Netherlands presidency of the Council and representatives of the European Parliament reached a political agreement. It is still subject to the approval by the Council's Permanent Representatives Committee and of the Parliament's ENVI committee.

The agreed two draft regulations are expected to achieve a twofold aim: making sure that medical devices and in vitro diagnostic medical devices are safe while allowing patients to benefit of innovative health care solutions in a timely manner.

Medical devices and in vitro diagnostic medical devices cover a wide range of products, from sticking plasters to hip replacements, and from pregnancy tests to HIV tests. 

"This agreement matters to all citizens: sooner or later all of us enter into contact with medical devices to diagnose, prevent, treat or alleviate diseases. The deal reached will improve patients' health and it will help to enhance the quality of life of disabled persons. It will also ensure a level playing field for the 25 000 medical devices manufacturers in the EU, many of which are SMEs and which employ more than half a million persons", said Edith Schippers, Minister of Health of the Netherlands and President of the Council.

Strengthening the system 

The agreement reached seeks to ensure the safety of medical devices by two means: by strengthening the rules on placing devices on the market and tightening surveillance once they are available. 

The agreement will further tighten the rules for the independent bodies that are responsible for assessing medical devices before they can be placed on the market. The new rules will strengthen the surveillance of these so-called notified bodies by national authorities. They will also give these bodies the right and duty to carry out unannounced factory inspections. Notified bodies will have to ensure that they have available qualified personnel.

The draft regulations establish explicit provisions on manufacturers' responsibilities for the follow-up of the quality, performance and safety of devices placed on the market. This will allow manufacturers to act swiftly when concerns arise and help them to improve their devices continuously on the basis of actual data. Manufacturers and other economic operators will have clear responsibilities, for instance on liability, but also on registering complaints on devices. The draft regulations also improve the availability of clinical data on devices. The protection of patients participating in clinical investigations will also be strengthened.

 Strengthened rules for high risk devices

 Certain high risk devices, such as implants, may undergo an additional check by experts before they are placed on the market. Expert panels and laboratories will play a key role in supporting the legislative system, to provide expertise and guidance on clinical aspects to notified bodies, competent authorities and to manufacturers. 

The new EU rules also explicitly cover certain devices without a medical purpose but with similar characteristics as medical devices. This concerns for instance  fillers and coloured contact lenses for cosmetic purposes.

More transparency for patients and increased traceability

A central database will be set up to create an improved system for all relevant information. It will cover economic operators, notified bodies, market surveillance, vigilance, clinical investigations and certificates. In addition, it will provide patients, healthcare professionals and the public with comprehensive information on products available in the EU. This will enable them to make better informed decisions. Patients who are implanted with a device will be given key information on the product, including any precautions which might need to be taken.

Devices will have a unique identification number to provide for traceability throughout the supply chain to the end-user or patient.  

Next steps 

The Council's Permanent Representatives Committee will be invited to endorse the agreement probably mid-June 2016. Once the Parliament's ENVI committee has also confirmed that it can accept the compromise the Council will be invited to confirm the agreement. Following the revision of the texts by the lawyer-linguists the two regulations will have to be formally adopted by the Council and the Parliament. The new rules will apply three years after publication as regards medical devices and five years after publication as regards in vitro diagnostic medical devices. 

Plenary sessions : In recent years currencies such as Bitcoin have emerged that are not issued by banks but exist in the digital world only, relying on public and shared databases to have balances and transactions verified. The EU should set up a task force to monitor developments in this area and prepare to step in with regulations if necessary, according to a report to be debated by MEPs on 25 May and voted on the following day. We spoke to report authorJakob von Weizsäcker, a German member of the S&D group.

Source : © European Union, 2016 - EP

Plenary sessions : In recent years currencies such as Bitcoin have emerged that are not issued by banks but exist in the digital world only, relying on public and shared databases to have balances and transactions verified. The EU should set up a task force to monitor developments in this area and prepare to step in with regulations if necessary, according to a report to be debated by MEPs on 25 May and voted on the following day. We spoke to report authorJakob von Weizsäcker, a German member of the S&D group.

Source : © European Union, 2016 - EP