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Theme 4. Horizontal policies of the EU



4.1. Policy|politics| on|concerning| regional development

4.2. Policy|politics| on social development

4.3. Tax policy|politics| of the EU

4.4. Competition policy

4.5. Environmental policy

4.1. Policy|politics| on|concerning| regional development

Policy|politics| on|concerning| regional development (regional policy) is a component of economic policy of countries-members of the European Union, which contains the complex of various legislative, administrative and economic measures which are conducted both central and local authorities and directed on the processes of productive forces distribution directed.

In 1957, when the European Community was established, the Treaty of Rome mentioned the need for "harmonious development", but no specific common policy was set up to that end apart from the removal of customs barriers and the gradual opening-up of markets. In the 1970s, following the first waves of industrial restructuring, the Member States established the European Regional Development Fund (ERDF). However, it was mainly in the 1980s, once countries such as Greece, Portugal and Spain had joined the Community, that the economic need and political will to reduce disparities in development and living standards clearly emerged. Budget resources allocated to European cohesion policy have grown steadily since 1989, and today, economic and social cohesion is enshrined in the Maastricht Treaty, alongside monetary union, as one of the priorities of the European Union.

The main purpose of regional policy|politics| of the EU is|appear| reduction of regional imbalances and prevention of subsequent|consequent| regional disbalances|unbalance| in the EU by distribution of the EU resources in the problem regions.

The aim is not just to transfer financial resources to poorer regions but to give them the assets they need to speed up their development and improve the living standards of their inhabitants. These assets include basic amenities, workforce skills, technological capabilities, an attractive environment for inward investment, etc.

It is worth bearing in mind that, besides affecting the less favoured regions and less privileged population groups, imbalances in development also slow growth throughout the Union as a whole and prevent it from making the most of its economic, technological and human potential.

The main|head| principles of regional policy|politics| of the EU are|appear|:

1. Subsidiarity means that higher|excelsior| public units have a right and obligation to solve only the problems which the lower|subzero| units are not able to solve|settle|.

2. Partnership is|appear| a collaboration between the subjects of different|diverse| levels|Y-level| (the EU, states, region) of territorial administrative units from the moment of decision of purpose before completion of realization of concrete project.

3. Decentralization is a redistribution of plenary powers to the regions with a purpose them the effective use|utillizing| and encouragement|encouragingly| of regional initiatives, optimization of practical decision of questions, exactly|preeminently| at regional level, and also distributing|division| of functions and plenary powers between the different|diverse| levels|Y-level| of management the EU.

4. Programming determines priority|precedency| of investing to not separate projects or actions|act|, but programs which|what| have a deep influence on development of all of region. Strategy of the territorial programming is based on the expressly developed system of aims of, which takes into account interests of societies|community| in relation to|concerning| an assistance|contributory| spatial efficiency and development of national economy.

5. Concentration | means that financial|cost| resources which|what| are given|provide| by the EU must be complemented by certain countries-members|limb| or subjects of territorial, regional development due to local sourcing|source|. Effective realization of principles of concentration in the regional policy|politics| of the European Union|conjunction| has a double goal: 1) strengthening and concentration of present resources for assistance|contributory| to realization of certain goals of regional development; 2) finding out such territorial units which|what| have identical or similar|like| problems (low level of profits|acuests|, large|great| unemployment rate and others like that), that it is important|influentially| for creation|making| of statistical|collation| base|baseline| of the most backward regions.

The basic|main| elements of regional policy|politics| of the European Union|conjunction| are|appear|:

· tax policy|politics| is tax payments|paymant| and privileges which determine the tax system of region and mode|regime| of taxation of entrepreneurial activity;

· fiscal policy is a mechanism of forming and use of state|domainal| financial|cost| resources and their redistribution between regions;

· price policy|politics| is government control of prices|shedrod| and tariffs|rate|, facilities and forms|form| of this adjusting|adjustment|;

· investment policy|politics| is a measure|step| on support of investment activity of being|manages| in a charge subjects, distributing|division| of budgetary|on-budget| capital investments;

· structural|structure| policy |politics| is the system of measures|step| on support and restructuring of enterprises;

· social policy|politics| – decision of terms and requirements to|by| enterprises for making non-economic relations;

· institutional policy|politics| is state|domainal| measures|step| on forming of new|firsttime|, liquidation of old and transformation of existent own, labour, financial|cost|, social and other economic|economical| institutes|institution|.

Priority directions of regional policy|politics| of the EU are|appear|:

· assistance|contributory| to structural|structure| re-construction and development of the depressed regions (this purpose concerns those regions only, where level|Y-level| of GDP per capita during|for| three years|Hecht| was below 75% than in average |AV|in the EU);

· granting of financial|cost| resources to the regions, where industrial stagnation takes place;

· fight against the continuous unemployment and supporting of employment initiatives;

· adaptation|accomodation| of businessmen, industrial workers to|by| the system changes|changing|;

· financing of agricultural|farin| territories development and acceleration of structural|structure| re-construction of agriculture;

· giving help to the North countries with extremely|completely| low|subzero| closeness of population.

As a general rule, European assistance should complement that of the Member States, not replace it. The Community share of financing varies from 25% to 85% of the total cost, depending on circumstances. Naturally, it is highest in the Member States and regions whose public sector is unable to shoulder the financial burden of development alone. Whenever possible, public-sector assistance (both national and European) is also supplemented by private-sector finance.

The Structural Funds and Cohesion Fund provide grants, while the European Investment Bank supplies loans for development projects. The Cohesion Fund puts up direct financial assistance for large transport - and environment-related infrastructure projects. The Structural Funds, on the other hand, tend to finance programmes which provide a wide range of measures to promote development in a given area. These development programmes are drawn up by the Member States and, whenever possible, in collaboration with the regional and local authorities and the relevant social and economic partners.

For self preparation: financial resources distribution on regional development in recent years; European Regional Growth Fund; Structural Funds, Cohesion Fund.

4.2. Policy|politics| on social development

Policy on social development (social policy) is one of the horizontal policies of the EU, which in accordance with the Treaty on European Community foundation (article 136), is directed on the increasing of employment level, improvement of living and working conditions, providing proper social defence, dialog maintenance between employers and employees, management of human capital for employment level increasing and fight against social injustice. The EU supports and complements activity of countries-members in the field of improvement of terms of labour, informing and consultations of workers, in relation to social questions, to market of labour, smoothing of rights for men and women, development in the questions of employment for these aims achievement (article 137 of the Treaty on European Community foundation).

Social policy is carried out in four basic directions:

1) social grouping in the EU;

2) common employment policy;

3) policy on education, professional training and young people affairs;

4) common measures on living and working conditions improvement.

While fully recognising that the main political responsibility in these areas rests with the national, regional or even local authorities, the EU wants to can play a valuable role in promoting cooperation or even joint action, given that most of the problems faced are common to all the Member States.

Social security systems in the EU countries are not all based on the same model. They reflect a history, traditions, social advances and a cultural heritage that are specific to each country and which cannot be changed. Any harmonisation of existing systems is therefore out of the question.

The Social Charter contains the following provision: "According to the arrangements applying in each country, every worker of the European Community shall have a right to adequate social protection and shall, whatever his status or whatever the size of the undertaking in which he is employed, enjoy an adequate level of social security benefits; persons who have been unable either to enter or re-enter the labour market and have no means of subsistence must be able to receive sufficient resources and social assistance in keeping with their particular situation".

On 23 April 1998, the Commission published a report on social protection in Europe (1997), in which it analyses recent trends in Member States' social protection systems and reviews the various measures adopted by Member States to control expenditure and increase efficiency.

The fight against social exclusion features in the Amsterdam Treaty, in conjunction with the possibility of appropriate measures being adopted on a qualified majority basis. With this new development in mind, the Commission is considering re-launching the dialogue on social exclusion with the Member States, the social partners and representatives of civil society (NGOs, foundations, etc.).

To facilitate the economic and social integration of elderly persons and the disabled, the Community has also launched the TIDE initiative, which is designed to promote the creation of an internal market for rehabilitation technologies in Europe.

As regards disabled people, the HELIOS II (1993-97) Community action programme came to an end on 31 December 1996. On the basis of its communication on equality of opportunity for people with disabilities, in which attention is drawn to the insufficiency of policies aimed at accommodating people to their disabilities with resultant marginalisation from society (the approach advocated entails identifying and removing the barriers to the full integration of disabled people in society, particularly as regards their active participation on the labour market), the Commission is preparing a new policy in favour of people with disabilities, geared more to equality of opportunity and cooperation with the relevant Communities.

The Commission also promotes schemes designed to reinforce policies for the integration of migrants who are nationals of third countries residing legally on EU territory. To give a new impetus to the overall strategy at EU level, the Commission adopted a communication on racism, xenophobia and anti-Semitism. Moreover, 1997 was designated as "European Year Against Racism". This has led to the establishment of the European Monitoring Centre on Racism and Xenophobia, whose task is to study the extent and development of these phenomena, to analyse the causes and to disseminate examples of good practice. On the basis of the results of the European Year Against Racism (1997) and new Treaty provisions against discrimination, the Commission has adopted an action plan aimed at establishing a partnership among all the players involved in the fight against racism in the European Union (Member States, NGOs, social partners, local authorities, media, etc.).

The Amsterdam Treaty contains a general provision aimed at combating discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation, whereby secondary legislation may be adopted unanimously (new Article 6a).

In 2006 Council of the EU made a decision on|concerning| creation|making| of the special Fund of adaptation|accomodation| to|by| the changes|changing| caused|call| by globalization. A fund was created to help the citizens of countries-members|limb| of the EU, which|what| have lose their job as a result of globalization, structural|structure| changes|changing| in world trade and their negative influence on the economy of region or industry|branch|. In 2007 European Commission (EC) accepted|take| five-year strategy (2007-2012) on health and safety|crashworthiness| providing|ADM| in workplaces for the EU citizens. New|firsttime| strategy of the EU must result quarter reduction |abbreviation|of work accidents amount|quantity| to 2012.

Also in 2007 the new|firsttime| program of grouping policy|politics| on the nearest|next| years (2007-2013) was published. For|after| these years the EU is planned to give approximately 347 bln. euro on the program realization. The main priorities|precedency| are|call| investments to the science and technology sphere|technicology|, development of information and computer technologies|technicology|, small|mini| and middle|AV| enterprises, and also general|common| and professional training|teaching|.

In 2010 the strategy of the EU further development «Europe 2020. Strategy of smart, stable and inclusive growth|height|» was accepted. According to the Strategy, one of the EU main directions is overall development, which includes: high level|Y-level| of employment, increasing|rise| level|Y-level| of investments into education|formation| and in-plant training, fight against poverty and modernization of labour-market, training of personnel and improvement of the social defence system|protection|, social unity promotion|raise|).

EC has implemented two basic|main| initiatives, called to accelerate progress from these priority directions: 1) «New|firsttime| skills and new|firsttime| workplaces|job|» assumes modernization of labour-markets and enhancement of people by their life-long skills improvement, to improve|bootstrap| the labour market with help of labour force mobility; 2) «European platform|stillage| on fight against poverty» means providing|ADM| social and territorial solidarity, providing|ADM| of working places for population, which lives in the conditions of poverty and social isolation|insulant|.

For self preparation: the European Social Fund

4.3. Tax policy|politics| of the EU

The tax policy of the EU is a totality of different forms and types of taxes (obligatory payments which are tightened official authorities), methods of their collection, distributing and use. The tax policy is the major element of the tax system.

The tax policy|politics| is one of economic|economical| policy directions|politics|, containing the complex of aims and measures|step| of the state|what| and intergovernmental (integration) institutions|formation|, directed|ducted| on the effective functioning of the tax system in accordance with|according to| the social and economic aims of society. A tax policy|politics| has different|diverse| functions, the main which|what| are fiscal, regulative and stimulant.

Tax policy|politics| forming and realization is necessary for:

1) achievement of financial|cost| independence of the EU from national treasuries|treasure-house|;

2) forming of common market, common economic|economical| and political space which requires abolition of foreign trade tax duties;

3) overcoming of differences in social and economic position|rule| and development of the EU countries-members|limb|, which requires the coordinated fiscal policy|politics| realization, directed|ducted| on the helping the less developed countries and regions, on stimulation of certain|definite| spheres and industries|branch| of national economies;

4) holding of common coordinated|common| customs policy to|in regard to| the third|third-| countries (not members|limb| of the EU);

5) forming of tax policy|politics| of the EU, which|what| provides fiscal neutrality and tax harmonization.

Fiscal neutrality is related|ties| to the ratio of domestic production and import|imp.| of the EU countries-members|limb|. The task|tsk| of the EU is to achieve equal taxation of internal|inlying| goods and goods imported from the countries-members|limb| of the EU. It was carried out by replacement of the combined|joint| multi-stage taxes (what do not guarantee such neutrality) by the new|firsttime| circulating|convertible| tax – value-added tax (VAT). The structures of VAT were harmonized in all countries-members|limb| of the EU.

Tax harmonization consists in simplification of structure of taxes, replacement of the multi-stage system of taxes by the unique|single| norm|standard| of taxes; harmonisation of tax rates in the EU; harmonization policy realization according to the certain|definite| categories of taxes, namely: non-direct and direct taxes.

4.4. Competition policy |politics|

Competition policy of the EU isone of the horizontal common policies of the EU countries, which is realized on the basis of the EU institutions within the limits of their jurisdictions, includes the antimonopoly policy and directed on supporting and stimulation of competition in all of spheres and sectors of economy (and in the whole public life). The competition policy is an exclusive power of the EU and is examined as a central area of cooperation in the context of common internal market creation (has a goal to liquidate all barriers between national markets and promote integration). The competition policy is co-ordinated by the special Commission on Competition.

The competition policy|politics| assumes making legislative, infrastructural and other conditions |first and foremost|for free market competition and prevention of their curvature. The antimonopoly policy as a part of competition policy|politics| is as a system of measures|step| on prevention, limitation|limination| and stopping of monopolistic activity of economic|economical| agents on goods and financial|cost| markets. The competition policy|politics| is directed|ducted| on the active discover of the spheres, where competition mechanisms can be weak for prevention of these phenomena|phenomen|. In that time the antimonopoly policy|adjustment| reacts on a situation which|what| was already folded|is| at the market, when there is a fact of monopolistic tendencies and/or their negative effects.

The main objective of competition policy of the EU is providing free competition between companies by creation of effective mechanism of supranational control after restrictive business practice, flexible and successive overstate governing. The proper institutional principles are created for this purpose.

EU Competition Policy aims to guarantee an undistorted Single Market. The Treaty of Rome recognized that a common competition policy was essential if the consumer was to enjoy the benefits of European economic liberalisation.

The rules apply to all companies operating in the Single Market, irrespective of their ownership. While Member States have their own bodies to enforce national competition laws, the European Commission investigates breaches of the competition rules. The Commission has significant powers including imposing fines, forcing changes in merger Treaties and blocking state aid. Decisions can always be challenged in the European Court of Justice.

EU competition policy covers the following situations:

4.5. Environmental policy

A common environmental policy of the EU is the ecological program of the EU, directed on stable development which takes into account modern necessities, not risking possibilities of development for next generations. The ecological policy of the EU develops on such directions:

1. Creation|making| and support of organizational and economic|economical| mechanisms of environment saving

2. Defence|protection| of eco-laws:

· right of judicial|judical| defence from the actions|act| of ecological|ecofriendly| violators|penetrator|, right to deny|contest| in the court of action|act| governments, procedural rights (access to|by| information, right on participating in making a decision from the environment saving);

· right of judicial|judical| defence at a direct|immediate| damnification to the plaintiff|libelant| and right for application of positions|rule| of restrictive legal norms|standard|;

· right on favourable|auspicious| environment or right on information about an environment.

Environment was only formally incorporated into the EU policy portfolio in 1985 through the Single European Act. The broad objective for action at the Community level was to preserve, protect and improve the quality of the environment. This extended from promoting more rational utilisation of natural resources to measures contributing to the protection of human health.

The "polluter pays" principle was enshrined in the policy from the outset, along with the ideas that preventive action was preferable and that environmental damage should be rectified at source wherever possible. Furthermore, the concept of "subsidiarity" was born - EU level action should be taken only to the extent that the objectives could be better attained than at the level of Member States. Later additions included the pursuit of sustainable development and, with the influence of new Scandinavian Member States, the idea that more stringent national protective measures could be taken, provided other trade principles were respected.

In addition to the adoption of common rules in key policy areas, cooperation projects are funded through a financial instrument for the environment (LIFE).

Research and technological development in the environment is also a key theme under the R&D Framework Programme. Specific initiatives in the energy sector are funded through the "SAVE" and "ALTENER" initiatives.

Closer institutional collaboration takes place through the European environmental information & observation network, and the European Environment Agency was created in 1990 with its seat in Copenhagen.

Over a relatively short period, environment has emerged as one of the most important and heavily loaded areas of EU activity. The policy area in which the principle of subsidiarity was developed has seen rapid expansion of activities at the EU level.

Policy Areas

Trans-boundary effects of pollution have already led to the development of common standards at the EU level for drinking water and urban waste water. These measures set out a framework which is then implemented through national laws in the Member States. Similar arrangements are in place to protect against pollution of ground water and the marine environment by dangerous chemicals including agricultural fertilisers.

Binding limits for the levels of sulphur dioxide, lead, nitrogen dioxide, asbestos and other suspended particles in the air are already in force. Measures have also been agreed to limit emissions of pollutants from municipal waste incinerators and other forms of industrial complexes. The protection of the ozone layer (under the Montreal Protocol) and curbs on green house gas emissions (in the follow-up to the Kyoto summit) are examples of broader international Treaties negotiated by the Community.

At the outset, EU policy focused on developing a common classification system for dangerous substances. More recently, biotechnology has emerged as a key area of concern for the future. An EU regime for agreeing experimental and commercial releases of genetically modified organisms into the environment has been in place since the early 1990s and is currently being reviewed.

The EU has been at the forefront of world-wide efforts to supervise and closely control shipments of dangerous waste material. Within the EU, general rules already exist on landfill and incineration of rubbish and specific sectoral arrangements are in force for disposal of oils, waste from the paper industry and agricultural sludge.

A key priority for many years has been to ensure that the environmental impact of major public and private sector projects is properly assessed. Within the single market, common rules are also in place for eco-labelling of products. The Commission has been working to take environmental factors more fully into account in all its policies: agriculture, fisheries, transport and energy will be particularly important over the coming years.

Among the important results of the Kyoto climate change summit in December 1998 was the Community-level commitment to reduce emissions of a basket of 6 greenhouse gases by 8%. EU Environment Ministers have already agreed how this should be split among the Member States ("burden sharing") by cooperation rather than legislation. Furthermore, specific sectoral negotiations have taken place with the European car manufacturers' Community to agree future limits on exhaust emissions.

The European Commission in the suggestions|sentence| to|by| the Sixth program of actions|act| on environment of the EU (in 2001-2010) defined ecological|ecofriendly| aims and actions|act| for their achievement for the followings|downstream| 10 years:|Hecht|

· reduction of extras on 8% from 2008 to|by| 2012 and from 20 to 40% to 2020, implementing structural|structure| changes|changing|, especially|in particular case| in power and transport|cargo-carrying| industries|branch|;

· formation of the network|net| "Nature| 2000" for the distraction of threats to the survival|survivable| of many kinds|appearance| and their natural habitats in Europe through|from| the system of sector plans of actions|act| in relation to|concerning| a bio variety;

· revision of system of risks control, related|ties| to the chemical|chinagraph| elements, strategy on risks reduction from pesticides, defence|protection| of quality of water in the Union|conjunction|, reduction of noise and thematical strategy for air quality|aer|;

· stable|high-stability| use of natural resources through|from| increasing of re-cycling of garbage and prevention of contamination.

On the modern stage (beginning from 2003 for a present tense) ecological|ecofriendly| activity of the EU is carried out on the basis of ecological|ecofriendly| jurisdiction|conusance|, foreseen Treaty|contract| about European Union|conjunction|. Ecological|ecofriendly| activity is related|ties| to other directions of activity of the EU. Perfection|triming| of the legal governing of environment saving is conducted in the EU. The acts, which make the legal base|baseline| of collection and analyzing of ecological|ecofriendly| information, monitoring of environment, ecological|ecofriendly| certification|sertification|, estimation|appraisal| of influence on environment and the mechanism of financing of ecological|ecofriendly| measures were renewed.|reduction-oxidation|.....|

The EU gradually grows into a «ecological|ecofriendly| union|conjunction|». Countries-members|limb| of the EU have the obligation to integrate the task|tsk| of environment saving and directives|instruction| of the EU to their national legal acts in appropriate sphere.

European Agency on Environment Saving and European network on ecological information and supervisions (EMEIN) solve the problems of environment saving at the level of the EU. The purpose of these organizations is providing the EU, countries-participants and countries-not members with reliable information, and also realization of measures on defence of environment, proper informing of public.

The common environmental policy|politics| of the EU is based on the followings|downstream| principles:

· preventive principle;

· principles of use of preventive measures|step|;

· principle «politer must pay» for indemnification|compensation| of harm|diseconomy| an environment.

The EU environmental work|wrk| is characterized be integrated|intergrable| preventive approach which|what| takes into account human activity and its consequences |all in all|. The pro-active policy|politics| of the voluntary prevention is reflected in the Directive|instruction| on evaluation|evaluating| of influence of certain|definite| state|domainal| and private projects to|concerning| environment and natural resources, which|what| take into account an obligation|commitment| in accordance with|according to| international Convention of "Espoo|" on evaluation|evaluating| of influence on environment in a transnational context.

Prevention also is|appear| the purpose of Regulation on "Eco-audit|", which|what| allows|permit| the voluntarily participating of companies|Co.| of industrial sector in the chart of eco-management and audit|. This chart is based on three elements:

· development|elaboration| and realization the mentioned companies|Co.| of ecological|ecofriendly| policies, programs and control the system for places|seat| production;

· systematic, objective and periodic evaluation|evaluating| of efficiency of these programs and systems independent controllers;|

· annual informing of public in the form of companies|Co.| presentation, which|what| take part in the system "ecological|ecofriendly| declarations". The logotype of the EU must improve|bootstrap| the image of organizations which|what| take the care of reduction of their influence on an environment, taking part in a chart.

The general|common| direction of environmental policy|politics| of the EU is in the last program of actions|act| "Environment 2010: our future, our choice", which |her| is concentrated on 4 main areas|domain|: change|changing| of climate, nature and bio variety, environment and health saving, and also natural resources and waste products.

The Lisbon Treaty gives|return| priority|precedency| to the EU for the purpose of steady development providing|ADM| in Europe on the basis of high level|Y-level| of environment saving. It makes "assistance|contributory| of making measures at an international level for the decision of regional or world ecological|ecofriendly| problems and, in particular|including|, to the fight against the change|changing| of climate" one of aims of ecological|ecofriendly| policy”|politics|. The energy policy|politics| of the EU must be conducted "taking into account the necessity of maintenance|safety| and improvement of environment".





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