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    October 2006 - May 2007

    ALDEPolicy Papers

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    Table of Contents

    About ALDE 5

    Competition Policy 7

    Defence Policy 19

    Enlargement Policy 29

    Immigration and Integration Policies 37

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    Members of the Alliance of Liberals and Democrats for Europe

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    About ALDE

    The Alliance of Liberals and Democrats for Europe (ALDE) is a political

    group in the centre of the European Parliament which brings togetherMEPs from 22 countries, representing Liberal and Democratic parties

    across the European Union. These parties share a common vision and

    ambition for Europe that we can achieve more by acting together

    than by each of the Member States acting separately.

    ALDE advocates an open-minded and forward-looking approach to

    European Union politics combining individual liberty, a free and dy-

    namic business culture, economic and social solidarity, a concern for

    the future of our environment and respect and tolerance for cultural,religious and linguistic diversity.

    Our vision for the EU is of a Europe which reaches out to all European

    countries which respect the principles of democracy, rule of law, human

    rights and a market economy.

    We work towards the promotion of sustainable economic growth lead-

    ing to more and better quality jobs, more consumer choice and greateropportunity for business and entrepreneurship.

    We strive for freedom, security and justice for all European citizens, and

    standing up for human rights and combating discrimination in all its

    forms, with the aim to further peace, justice and stability in the world,

    thus alleviating poverty, and cooperating through international insti-

    tutions. We support the reform of the EU institutions to make Europe

    more comprehensible, transparent, responsive and accountable to its

    citizens.

    The European Unions achievements to date are impressive half a

    century of peace, prosperity and stability. Instead of ghting each other,

    Europes nations have learned to harness their collective knowledge

    and experience to a common enterprise and provide opportunity and

    progress for all of Europes citizens.

    Together we can achieve a Europe that is stronger, fairer, greener, more

    open and more prosperous. Together we can free Europes potential.

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    October 2006

    Competition

    Policy

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    Introduction

    This paper was drawn up by the Liberal and Democrat group inthe European Parliament following a number of discussions on

    recent high prole cross-border merger cases in the EU.

    It serves as a guide to Liberal Democrat thinking in this area at

    European level and a statement of principles to guarantee free,

    fair and open competition in Europes Single Market.

    1. Our over-arching objective is to create the highest possible

    level of well-being for the citizens of Europe. We do not see an

    e cient competition policy as a goal in itself but as a tool to

    create an environment where Europeans can exercise greater

    free choice. This freedom is essential for a higher standard of

    living and for an improved quality of life for the individual. It also

    creates a business environment that encourages innovation and

    progress and, simultaneously, improves Europes position in the

    global economic context.

    2. In a globalised world, we need to be competitive to meet

    the new challenges we face. The way we conceive competition

    policy is therefore crucial, since it has an eect on the consumers

    every-day-life. We need to change, to make structure and attitude

    changes, to compete while boosting our internal market, research,

    innovation, social cohesion and competitiveness.

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    Internal Market

    Competition policy is a decisive

    element for a successful European

    economy, which guarantees the

    functioning of the internal market,

    while allowing technological

    innovation to ourish. According

    to the Treaty, a common European

    competition policy is crucial to

    ensure that consumers enjoy the

    benets of Europes open market.Competition policy is about

    maintaining checks and balances

    within an economy.

    We support a strong European

    competition policy that creates

    the proper environment to

    guarantee healthy competitionfrom being undermined by

    anticompetitive practices,

    abuses of dominant position and

    distorted competition.

    Liberals and Democrats will be

    at the vanguard of promoting

    competition policy in responseto recent cases of economic

    protectionism within the internal

    market. We must ensure the

    e ciency of competition policy

    as a prerequisite for the welfare

    of European consumers.

    For this reason we welcomed the

    2004 review of the instruments

    of the EU competition policy

    (antitrust, merger control, control

    of state aid and liberalisation

    measures) and the Commissions

    decision to set out a proactive

    competition policy. We are also

    carefully monitoring the ongoingtechnical consultations launched

    by the Commission (e.g., Article

    82 of the TEC) and the review

    of Competition Authorities

    that might lead to profound

    changes to the way the same

    Commission, Member States,

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    National Competition Authorities

    and Courts will act in future in

    relation to competition policy.

    Moreover, we endorse the need

    for a review of competition

    policy in the light of the great

    technological changes we are

    experiencing which make it

    more di cult, for example, to

    define what we mean by the

    market (e.g., Microsoft case).The

    modernisation of competition law

    and its enforcement is essentialfor ensuring competition in an

    enlarged Europe as well as in a

    global market.

    Nevertheless we recognise

    that many sectors in Europe

    remain fragmented and

    markets segregated (e.g.,transport) characterised by weak

    competition and persistently high

    prices. Likewise, several issues

    that hamper competition remain

    to be tackled (e.g. asymmetric

    information and product

    dierentiation). These obstacles

    weaken the entire Europeaneconomy and the EUs position in

    the international market.

    More than ever, we consider

    that a coherent policy has a

    fundamental role to play in

    ensuring competition in the

    European context.

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    Protectionism, Mergers

    and Champions

    As Liberals and Democrats, we

    reject economic protectionism,

    which harms the internal market

    and the e ciency of European

    companies on a global level. Our

    real competitors are not within

    Europe, but in the rest of the

    world. Economic protectionismin favour of national champions

    goes against the very spirit of the

    European Union.

    We should not be afraid of

    European Champions companies

    born often of cross-border mergers

    which are large enough to take oninternational competitors. Such

    companies would not undermine

    competition since they would be

    relevant to the entire European

    market. We understand European

    Champions as companies which,

    driven by competition, produce

    the best economic performances,

    deliver low prices and high quality

    to consumers through economies

    of scale and challenge their global

    competitors.

    The idea of European champions

    raises concerns in relatively

    ine cient economies since they

    will bear the greatest cost of

    economies of scale resulting in

    cutting surplus jobs, downsizingand out-sourcing.

    Such practices are not new but

    part of any business strategy. Most

    people will recognise that Europe

    has not much need for a coal

    mining industry as it is replaced

    by other, cleaner sources ofenergy. Textile manufacturing has

    largely gone to the Far East, whilst

    textile designing has ourished

    in Europe. Ship building is such a

    costly and demand-driven activity

    that bulk commercial vessels are

    now mainly built in Korea while

    more specialised, luxury cruise

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    liners are often built in Finland or

    Italy. Europeans must concentrate

    on producing what they do best

    and buy the rest.

    In response to those who might

    fear that European champions

    could be detrimental to SMEs, we

    believe that they would produce

    positive cascade eects on SMEs

    (such as poles of excellence, orders

    from subcontractors etc.).

    National champions created

    by government intervention

    are ultimately detrimental to

    the domestic economy, and its

    consumers. They are too rigid

    to adapt to market changes,

    considerably more inefficientand therefore unable to rise to the

    challenge of the global market.

    The most recent waves of

    cross-border mergers are the results

    of the long-term eect of market

    integration in Europe, thewidening of the market

    through globalisation thanks

    to technological evolution

    the introduction of the Euro and

    the need for restructuring and

    redeploying vis--vis emerging

    economies.

    The challenge is how to

    manage the transition to a post-

    industrial economy, providing

    incentives, training, flexibilityand opportunities enough for the

    people of Europe not to fear the

    prospect of changes lying ahead.

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    Designed

    byLaraSzpiro

    Liberalisation, State Aid

    and Strategic sectors

    As Liberals and Democrats we

    criticise the unconditional use of

    state aid, especially when leading

    to distortions of competition and

    we support the belief that state

    aids are not the solution to much

    needed structural reforms in the

    EU. We welcome the Commissionsproposal for less but better

    targeted state aid; bearing in

    mind that state intervention must

    be of a temporary and limited

    nature. The added value of any

    given state aid should be clearly

    measurable for the immediate

    beneciaries and have positiveeffects on the economy as a

    whole. We do not welcome state

    aid within the internal market, nor

    do we support the use of state aid

    to protect our companies from

    global competition.

    Some who challenge theeffectiveness of competition

    claim that liberalisation in certain

    sectors has not resulted in lower

    prices for consumers and that in

    some cases liberalization has led

    to signicant increases in prices.

    Liberals and Democrats contend

    that this is due to the lack of

    competition rather than to an

    excess of liberalisation, caused

    by the initial failure to ensurefavourable market conditions.

    In certain cases (e.g., Dutch and

    German privatisation of the energy

    sector) state-owned enterprises,

    which had a monopoly power,

    were privatised without a suitable

    competition policy and adequate

    regulatory mechanisms, resulting

    in a transfer of monopoly power

    from the public to the private

    sector. The rst priority of local

    governments was to cover their

    budget decit failing to ensure

    adequate competition. For

    this reason, we would urge the

    Commission to investigate the

    causes that provoked a rise ofprices after liberalisation in certain

    sectors.

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    National interest in preserving

    strategic sectors is another reason

    often oered by governments

    determined to protect nationalcompanies. Nevertheless, we

    agree with the argument that

    governments claim is driven

    more by the desire to guarantee

    continued national ownership of

    companies, in view of creating

    national champions, rather than

    by concerns for national security.

    We acknowledge that Member

    States as well as the European

    Union wish to retain control over

    some sectors, such as defence

    - though even here Member

    States recognise the advantages

    of common procurement andEuropean champions like EADS.

    Recent discussions have also

    focused on the need of the

    European Union to secure access

    to adequate energy supplies,since Europe is increasingly

    dependent on energy imports

    and potentially vulnerable to

    geopolitical instabilities. This

    is indeed a very real concern,

    but it is through competition,

    innovation and diplomacy that

    the EU should gain independence

    from foreign imports, not throughprotectionism and isolationism.

    Nonetheless, even if we label a

    sector strategic, it should not

    mean that it is exempt from the

    rules of competition altogether.

    Moreover, strategic sectorsshould be dened as narrowly as

    possible, discriminating between

    priorities within the individual

    sector itself. More should be

    done by the Commission to

    demonstrate that in the long term

    competition policy will not lead to

    the deterioration of sectors that

    might be considered strategic.

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    Summary and

    International Aspects

    We fear that some prerequisites

    to benecial competition have

    not been achieved through

    the European Unions policies,

    jeopardising the realisation of the

    internal market; (e.g., electricity

    and gas market, car market).

    Complex inter-relationships exist

    between competition policy

    and other economic policies.

    Nevertheless, it can be argued

    that competition policy is broad

    and comprehensive in its scope, its

    purpose being to bring European

    policies in harmony and create a

    common level-playing eld within

    the internal market, ultimately

    encouraging consumer welfare

    and growth.

    We highlight the importance of

    competition policy also as a meansto reach other goals, such as social

    welfare, environmental protection

    and development. Concerning

    support for development

    strategies, we believe that, without

    an eective competition policy,

    international anti-competitive

    practices can restrict trade in

    small and developing countries.

    Therefore, as part of the EU eort

    to help developing countries, theUnion should open its markets

    on the basis of fair and clear

    competition rules.

    Moreover we believe that

    the principle of safeguarding

    labour, environmental and social

    standards should be taken into

    account in defining the rules

    of competition. All the hidden

    costs of lowering these standards

    should be accounted for in

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    dening the laws of the market.

    Competition policy must take into

    consideration these principles and

    internationalise them to promoteundistorted competition. In this

    respect we call on Member States

    to mandate the Commission to

    negotiate with third country

    partners the adoption of higher

    social and environmental norms.

    We encourage the Commission in

    its relations with the international

    institutions (e.g., WTO) to seek abroad international convergence

    on these important issues.

    We believe the EU has already the

    tools and the legal framework

    to ensure greater efficiency

    of competition policy. It isnevertheless important that the

    Commission remains vigilant

    in order to guarantee vigorous

    enforcement of competition law

    at home and greater convergence

    abroad.

    Moreover, the real independence of

    National Competition Authorities

    from both industrial lobbyists and

    national governments must bepreserved.

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    October 2006

    Defence

    Policy

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    Introduction

    The events of 1989 changed the EUs perception of Defencematters, just as Sep 2001 changed thinking in the USA. Moreover,

    the geopolitical challenges have evolved considerably since the

    adoption of the European Security Strategy in 2003 (ESS). ALDE

    believes that a revision of the ESS is necessary.

    While we are looking for appropriate ways to ght international

    terrorism, prevent the further proliferation of weapons of mass

    destruction and their means of delivery, manage the crisis stemmingfrom regional conicts and state failure and combat international

    organised crime, the international community has to deal with

    more general challenges - the globalisation of energy dependence,

    the sensitive relations between Western societies and much of the

    Islamic world, demographic developments, migration from poor to

    rich regions, the impact of climate and environment changes and

    the risk of global pandemics - which have become more tangible

    in terms of their practical consequences for the member countriesof the EU.

    There is also renewed discussion on the role of the EU can and

    should play in the world in relation to other major international

    players, including emerging powers such as India and China.

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    European Security and

    Defence Policy

    As for ALDE, the development

    of a genuine European Security

    and Defence Policy is an integral

    part of the Common Security and

    Foreign Policy and an eective

    contribution to the European

    Unions international credibility

    and visibility.

    The EU must be in a position to:

    a) defend itself where necessary

    either jointly with its allies or, if

    necessary, alone;

    b) fullfill the Petersberg tasks

    incorporated in the treaty ofthe European Union in 1997:

    Humanitarian and rescue

    tasks, peacekeeping tasks

    and tasks of combat forces in

    crisis management, including

    peacemaking;

    c) secure peace and stability in

    its geographical neighbourhoodand in other parts of the world if

    agreed by the European Council

    and/or requested by UN Security

    Council after consultation of the

    European Parliament;

    d) carry out civil protection, rescue

    operations and humanitarian

    intervention in Europe, in its

    geographical neighbourhood and

    in the world if such operations

    are necessary. ALDE insists onthe necessity of the creation of a

    European civil protection force in

    order to full these objectives;

    e) develop common guidelines

    and rules of engagement for

    military operations with special

    respect to safeguarding human

    rights, good governance and therule of law.

    ALDE points out that the EU

    cannot limit itself to policing, if

    it is to contribute eectively to

    the re-modelling of a workable

    and peaceful world order. A fully

    edged European army should inthis respect be progressively built

    up.

    ESDP and NATO

    The scale and scope of current

    security threats requires a co-

    operative NATO-EU relationship

    that maximises the assets of both

    organisations and puts an end to

    institutional bickering. A more

    systematic process of consultation

    and coordination is imperative

    to ensure that resources are

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    used effectively and that the

    plans and responses of NATO

    and the EU are better balanced

    and harmonised. A constructiverelationship between NATO and

    EU is a key component of a vibrant

    transatlantic relationship.

    ALDE believes that the co-

    operation between the EU and

    NATO should be more political

    and should go beyond the mere

    implementation of the Berlin plus

    arrangements. 19 countries of the

    EU belong to both organisations.

    For ALDE, NATO remains the

    guarantor of common security

    for most countries of the Union

    in the event of an agression by the

    armed forces of a third country.

    NATO is the appropriate forum for

    transatlantic dialogue on security

    issues and the indispensable bond

    to link USA and European Securityinterests. For it to work properly,

    however, EU Member States which

    are NATO Members should play a

    more positive role in NATO.

    ALDE sees ESDP and NATO policy

    as complementary without one

    being subservient to the other.Nevertheless, ALDE considers

    that increasing the eectiveness

    of ESDP will require a profound

    clarication of its nature vis--vis

    the US and its non-EU allies.

    ResearchALDE calls for the establishment

    of a European Security Research

    Programme (ESRP).

    The ESRP should fund research

    activities targeted at thedevelopments of systems and

    products that are useful:

    a) in particular for the protection

    of Member States territory,

    sovereignty, domestic population

    and critical infrastructure against

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    transnational threats.

    b) for EU missions outside the

    Union for peace keeping, conict

    prevention and strengtheninginternational security.

    EU Nuclear deterrence

    Nuclear Weapons proliferation is

    an increasingly worrying aspect

    of weapons development. TheEU should play an active role in

    reviving disarmament talks and in

    seeking respect for the NNPT.

    France and the United Kingdom

    consider their nuclear forces the

    ultimate means of defendingtheir vital interests. In 1995,

    France made the suggestion that

    Europe should give thought to a

    joint deterrent. The UK is currently

    debating the future of its nuclear

    deterrent.

    ALDE believes that consultation

    between France, the UK and the

    other EU Member States should

    be envisaged in order to reach a

    common EU policy.

    Space

    ALDE believes that the EU cannot

    ignore space nor remain out of it.

    The rst basic objective should be

    the stabilisation of the European

    presence in space in order to

    guarantee Europes space capacity

    for the future, consistent with its

    political and economic weight

    and able to full the needs of an

    articulated European Security and

    Defence Policy.

    However ALDE is deeply

    concerned about the prospectof an arms race in space and

    calls for the elaboration of an

    international convention. ALDE

    believes there is an urgent need

    to update the 1967 Outer Space

    Treaty, which calls for the use of

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    benet and in the interests of all

    countries. The US-USSR Incidents

    at Sea Accors (INCSEA) of 1972,

    which has served as a model forcomparable agreements signed

    by more than thirty other seafaring

    nations, might be used as a basis

    for a new treaty for spacefaring

    nations which should also contain

    rules of the road to help prevent

    dangerous military activities

    leading to incidents of conict. It

    would include provisions againstsimulated attacks, the testing and

    deployment of space weapons

    and dangerous manoeuvres in

    space.

    Intelligence

    Developing international and

    cross-agency cooperation has

    become imperative in todays

    security environment.

    The EU should concentrate on

    facilitating direct cooperationamong national agencies. ALDE

    insists on the establishment

    of an European Intelligence

    Communication Network in order to

    facilitate the cooperation between

    the dierent national intelligence

    agencies of the EU Member States.

    An Eurozone for ESDP

    While all Member States are equal

    according to the Treaties, their

    military capabilities, their military

    traditions and their Constitutional

    provisions regarding military

    action, are different. ALDE

    considers that Member States able

    and willing to contribute most to

    ESDP capabilities should have

    the right to do so. However, noMember States should be forced

    against its will to participate in

    specic missions.

    ALDE welcomes the gradual

    establishment of EU battlegroupsand calls for the establishment

    of an Eurozone for ESDP. The

    intergovernmental methodology

    which led to the creation of the

    European currency could be used

    to advance the concept of an

    European army.

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    Parliamentary scrutiny

    ALDE stresses the need to

    strengthen the mechanisms of

    parliamentary oversight of ESDP

    development in general and

    ESDP missions in particular. ALDE

    highlights the need to provide pro-

    active information and conduct

    debates before joint actions in the

    eld of the ESDP are decided so

    that parliaments can voice theiropinion and concerns.

    Future developments

    of ESDP

    ALDE points out that an eective

    ESDP will require further

    modernisation of the Member

    States armed forces. Reorientation

    of spending and investment might

    not su ce, so that increases in

    military spending, both at the

    EU level and by the Member

    States might be considered. Thecompletion of an eective Rapid

    Reaction Task Force is a priority

    as is the further development of

    the European Defence Agency

    (E.D.A.). The EU must develop

    a Defence Identity and pursue

    a comprehensive approach to

    promoting peace and security

    based on: conict prevention,

    cr is is management, and

    postconict institution building.Furthermore, cooperation in

    defence procurement through

    the E.D.A. will be essential to the

    success of ESDP.

    ALDE ins ists that the

    intergovernmental budget of

    the ESDP should be guaranteedby the member states

    and complemented by the

    community budget: this would

    have the advantage of reecting

    more accurately the operating

    methods and the spirit of the

    ESDP (Intergovernmental and

    community action) and would alsohave the advantage of its scrutiny

    by the European Parliament.

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    May 2007

    European

    Union

    enlargement

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    A solution is needed

    to the constitutional

    problem

    The ALDE Group maintains

    that finding a solution to the

    constitutional crisis remains the

    key objective for the European

    Union as only this can provide the

    European Union with the political

    self-condence to move ahead.

    As regards the question of

    enlargement and future

    accessions, the current TEUarticle 49 must remain the base

    for the Unions approach, as long-

    term membership prospects

    give neighbouring countries

    a sense of direction and hope.

    The transformative force of

    European Union soft-power can

    only be maintained if the Union

    itself remains open for potential

    new members. One of the most

    important criteria of enlargementis referring to common values and

    common pursuance on a road of

    progress in a sphere of political

    integration.

    However, it is important to recall

    that while the European Union

    must remain open for possiblenew members, the recruitments

    of new member states should not

    become its prime objective nor

    should the objective of integration

    be to get more and more member

    states.

    Honour political

    responsibilities

    The European Union has

    responsibilities that must be met

    in good faith, in line with the

    existing Treaty obligations and

    established criteria. The Union

    and its institutions, in particular

    the Commission, have developed

    considerable expertise in assisting

    candidate countries to prepare

    for membership of the Union.

    Both the Copenhagen criteria

    E

    uropeanCommission

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    and this process should be

    codied and included in a revised

    Constitutional Treaty the Union so

    urgently needs.

    The European Union is already in

    the early negotiating stage with

    Croatia and approaching the

    negotiations with Macedonia;

    the ALDE Group looks forward to

    the successful conclusion of these

    negotiations.

    We strongly support Turkeys

    modernisation along European

    lines, and are critically and

    constructively engaged in

    the present negotiations with

    Turkey, whose outcome cannot

    be foreseen. It is crucial, however,to underline the importance

    of progress in development of

    democracy, respect of human

    rights and rights of minorities.

    The ALDE group points out that the

    further the enlargement goes on,

    the greater the need to safeguard

    and promote the recognition ofregional and linguistic minorities,

    as a larger Union will comprise

    more states with a considerable

    internal heterogeneity.

    As regards the other countries in

    the Western Balkans, the ALDE

    Group underlines that much stillneed to be done before their

    concrete membership process

    can be started. The ALDE Group

    supports the Stabilisation and

    Association process but underlines

    that the implementation of this

    whole policy should be more

    energetic than what is the casetoday.

    Political stability must be

    achieved and state structures

    that function satisfactorily must

    be in place before the accession

    to the European Union. At this

    stage, no date for accession canbe established, but it could be

    useful to establish benchmarks

    in the process.

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    Articial timetables should be

    avoided, and countries should

    accede only when ready and fully

    prepared.

    A timetable that allows

    for reection

    The European Union must refrain

    from declaring a formal pauseor moratorium on enlargement.

    However, the time available

    during the current negotiation

    phase can and should be used to

    give the Union a Constitutional

    Framework and implement the

    necessary political and economic

    reforms needed to increase trustand confidence of its citizens

    and fulfil the EUs economic

    potential.

    The message to potential

    candidate states must be to

    be patient and continue with

    necessary internal reformsbecause the European Union has

    not shut the door on them.

    In assessing potential members of

    the EU, the Copenhagen criteria

    should be our guide. They include

    consideration of absorption

    capacity.

    Content of the

    Neighbourhood Policy

    In order to further assist these and

    other neighbouring countries,

    like Ukraine and Moldova, which

    regard membership of or closer

    structural co-operation with

    the European Union as their

    ultimate objective, the emerging

    Neighbourhood Policy must be

    ambitious and comprehensive in

    content. Free trade and exible

    participation in EU policies and

    programmes will guarantee thattransformation based on soft-

    power can continue.

    The Unions objective must be to

    expand the area of stability and

    prosperity beyond its borders

    E

    uropeanCommission

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    through structured co-operation,

    notably on issues like economic

    co-operation, mutual opening of

    markets, communications and theprotection of the environment.

    Attention must also be paid to

    border management, police

    co-operation and respect for

    fundamental rights and to gradual

    visa facilitation that extends

    freedom of movement which, in

    turns, guarantees the spread of

    economic prosperity.

    One possibility could be to

    explore the possibility of creating

    an associate membership. Such

    a category may be suitable

    for neighbouring countries

    unwilling or unable to becomefull members. A specic category

    might be explored for existing

    member states which choose to

    reduce their commitment.

    The ALDE Group supports eorts to

    create a close co-operation based

    on cmmon vales with a democraticRussia. This co-operation has met

    obstacles that are not caused

    by the European Union. While

    Russias future ultimately lies in

    the hands of her own citizens, the

    EUs policy towards Russia must

    be coherent and measured, as a

    true partnership must consist of

    more than simply economic co-

    operation. Democratic values and

    respect for fundamental humanrights should be the cornerstones

    of a EU-Russia partnership.

    In order to support the democratic

    forces in Belarus and to promote

    democracy, rule of law and market

    economy, the European Union

    should initiate a Plan for Freedom,

    which should be more focussed

    than a Neighbourhood Action

    Plan, for instance on economic and

    administrative help for necessary

    reforms on a wide scale.

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    The European Union must make

    full use of international and

    European co-operation fora, like

    the Council of Europe and theOSCE.

    An enlarged Union

    should insist on its core

    values

    Enlargement should be

    accompanied by a deepening

    of the Unions democratic

    structure and the role of the

    European Parliament and

    national parliaments, as well as

    an increased focus on securing

    the Unions core values, the four

    fundamental freedoms - free

    movement of goods, labour,

    services and capital.

    Increased exibility will be needed

    in an expanding European Union.

    This will take two forms, bothof which will contribute to a

    deepening of the Unions federal

    characteristics while safeguarding

    the democratic structure and the

    role of the European Parliament

    and national parliaments;

    1. A multi-speed approach

    enhanced cooperation in which

    a group of Member States decides

    to move ahead faster than otherstowards common objectives

    and within the context of EU

    institutions, but with the aim to

    secure full participation of all

    members later on. Such initial

    diversication can be a positive

    engine of integration as both the

    Schengen system and the eurozone

    demonstrate. Schengen startedas a strictly intergovernmental

    treaty amongst a limited number

    of states, and was subsequently

    incorporated in the EU-treaty.

    New member states have from

    the start been keen on fully

    participating in the system. As far

    the single currency is concerned,a more coherent approach to

    structural reform on behalf of

    the Eurogroup will dynamise the

    European economy.

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    2. A new form of dierentiation

    would be crated if a group of

    member states both willing and

    capable of sustaining closerintegration would form inside

    the Union a federate core with its

    own institutions. The core must

    be open for the other EU member

    states to join later.

    Spend BetterThe nancial perspectives agreed

    for the period 2007-2013 allows

    insucient support for the external

    actions of the Union. Funding for

    the Neighbourhood Policy and for

    Pre-Accession Assistance will not

    be su cient, as the total amountavailable for these two instruments

    amounts to only 3% of total EU

    spending over this period.

    A persistent and serious eort must

    be made to increase this amount

    in the review of the financial

    system in 2008-2009 and fully

    explain how nancial assistance to

    neighbouring countries constitutes

    a wise investment with pay-os

    including greater political stability

    and security and opportunities in

    emerging markets.

    As fewer funds are now

    available, we must increase the

    added-value of EU assistance

    and complement spendingon traditional infrastructure

    projects with increased focus on

    democracy development and

    institutional capacity building. The

    inuence gained by the European

    Parliament through the adoption

    of new financial instruments

    for external action will assist in

    reaching this objective.

    The Common Foreign and

    Security Policy (CFSP) must be

    strengthened but at the same

    time be more open to democratic

    control.

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    May 2007

    Immigration

    and integration

    policies of theEuropean Union

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    Managing

    economic migration

    ALDE recognises that the reality of

    ageing and demographic changes

    will necessitate rethinking

    immigration policies, as at current

    migration ows, the decline in the

    EU working age population will

    entail a fall of about 20 million

    employed people between 2010

    and 2030.

    One of the answers could be

    more sustained economic

    immigration ows while taking

    fully into account the reception

    capacities of the Member States,

    so as to meet the needs of the EU

    labour market in order to ensure

    Europes prosperity and the Lisbon

    employment targets.

    While recognising that economic

    immigration is necessary,

    substantial discussion of what

    kind of workers are needed

    remains. There is certainly a

    demand for highly skilled workers,manual labour and seasonal

    labour depending on the specic

    needs and characteristics of the

    national labour market. However,

    ALDE believes that at EU level

    there is a clear need to harmonise

    the conditions and criteria for

    the entry of economic migrants,

    leaving the dening of specicneeds for economic migrants as

    a Member State competence, with

    annual needs made public in an

    EU-wide database.

    While the EU foresees opening its

    borders to third-country workers,ALDE believes that the priority

    should be the lifting of remaining

    internal barriers to the free

    movement of workers from the

    new Member States. ALDE calls

    for a phasing out of transitional

    arrangements as soon as possible

    considering that freedom of

    movement has to also be applied

    to the employment market. ALDE

    believes that it is a necessary step

    for strengthening a sense of EU

    citizenship.

    E

    uropeanCo

    mmission

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    On the condition that clear

    information is available in both

    the countries of origin and transit,

    legal migration channels couldbe of added value ghting illegal

    migration. The setting up of an

    EU Green Card system (combined

    residence and work permit)

    should be foreseen, possibly with

    the use of short term Green cards

    for seasonal labour.

    In addition, a multiple entry

    system should be foreseen in

    order to benet loyal seasonal

    workers and to avoid pushing

    economic immigrants into

    an illegal situation once their

    seasonal work has ended so as to

    allow them to come back to the

    EU. It is necessary to work towards

    the creation of a legal migration

    system for other categories of

    economic migrants staying for

    longer periods, while for example

    anticipating the possibility of

    family reunication.

    The damaging eects of the brain

    drain must be avoided, fostering

    instead brain circulation. It

    should be considered to allowthird country nationals to have a

    short term Green card or multiple

    entries that would allow them

    to travel between the Union

    and their countries of origin as

    well as to favour the exchange

    of experiences and know-how.

    This would help facilitate an

    exchange of persons and shouldbe introduced in cooperation with

    initiatives in the eld of economy

    and education. ALDE notes

    that a pragmatic view on the

    phenomenon of brain circulation

    is essential in order to align

    policies and public statements

    with reality.

    In the absence of an EU common

    immigration policy, Member

    States have dierent approaches

    to the problem of hundreds of

    thousands of illegal immigrants

    working illegally and without

    any social protection. En masse

    regularisation of illegal immigrants

    is not an adequate response since

    such a measure does not resolve

    the actual underlying problems.

    E

    uropeanCommission

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    Any comprehensive approach to

    immigration must take account of

    the push factors that lead people

    to leave their countries in the rstplace, necessitating clear plans

    for development and investment

    in the countries of origin and

    transit, notably by facilitating the

    money transfers of migrants to

    their countries of origin or putting

    in place trade and agriculturalpolicies that promote economic

    opportunities, as well as for the

    development of democracy, the

    Rule of Law, human rights and

    fundamental freedoms.

    ALDE therefore believes that a

    partnership approach with the

    countries of origin and transit

    is needed to ensure that they

    play an active part in helping

    to manage the migration ows,

    prevent illegal immigration by

    informing potential migrants of

    the risks incurred in the case of

    illegal immigration and set up

    eective information campaigns

    on the possibilities for entering

    and/or working legally in the EUMember States.

    I m m i g r a t i o n a n d

    responsibility sharing

    It is important to recognise thatincreased migration ows should

    be seen as a global phenomenon

    with numerous causes and eects

    that require which a balanced,

    global and coherent approach.

    In view of the disproportionate

    number of immigrants faced by

    some Member States and thedemands it subsequently puts

    on these Member States, ALDE

    believes that there should be a

    sharing of responsibilities and

    burdens at EU level.

    The Refugee fund, as well as the

    Integration fund are alreadyin place but the Union should

    consider further steps to ensure

    solidarity between the Member

    States, so as to provide a more

    efficient support of Member

    States actions.

    E

    uropeanCommission

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    As the geographical location

    of Member States in relation

    to migrants travel routes is a

    signicant factor, ALDE believes

    this is another argument for

    responsibility sharing at the EU

    level. The Dublin II convention

    includes a set of criteria for

    determining the Member State

    responsible for examining each

    asylum application, principallygiving responsibility to the rst

    Member State through which

    the asylum seeker entered the

    European Union. As a rst step

    responsibility sharing could take

    the form of nancial compensation

    and technical assistance to the

    most aected Member States.

    If the Dublin II regulation were

    to be revised, a legally binding

    burden sharing mechanism at

    EU level should be agreed to

    ensure that Member States do

    in fact assume a fair share of the

    burden.

    The EU return directive, dealingwith the return of illegally staying

    third-country nationals, is currently

    being negotiated between

    Council and Parliament. ALDE

    recognises that it is legitimate

    for states to return people based

    on the precondition that fair and

    e cient asylum systems, whichproperly consider whether an

    asylum seeker would be at risk

    of persecution if returned, are

    in place. Therefore an EU return

    policy is necessary to complete

    the creation and functioning of

    a Common European Asylum

    system.

    ALDE believes that it is necessary to

    continue negotiating readmission

    agreements with third countries

    as part of the Unions wider

    migration management strategy,

    which is based on cooperation

    with countries of origin with a viewto developing a real partnership

    on migration issues. Readmission

    constitutes the last resort and

    voluntary return is to be preferred

    to forced return.

    E

    uropeanCommission

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    Fighting

    illegal migration

    ALDE stresses that any measures

    to combat illegal migration

    and to step up external border

    controls, also if in cooperation

    with third countries, must be

    compatible with the safeguards

    and the fundamental rights of

    the individual laid down in the

    Charter of Fundamental Rights

    of the European Union and the

    European Convention for the

    Protection of Human Rights and

    Fundamental Freedoms, notably

    the right to asylum and the right

    of non-refoulement.

    With the borderless Schengen

    area, the task of securing the

    external borders of the Union has

    become increasingly important,

    so as to ght the tra cking of

    human beings. The development

    of the FRONTEX agency is one

    such concrete step, where the

    Union is seeking to support thoseMember States that are charged

    with securing the EU external

    border. It is therefore essential

    that FRONTEX, which has only

    been established very recently,

    receives the budgetary means

    that will ensure it gets the sta

    and equipment necessary to

    accomplish its mission.

    ALDE believes that before

    discussing the turning of

    FRONTEX into a fully-fledged

    European Border Corps, it remains

    essential to ensure that its primary

    coordinating and supporting roleis fully accomplished.

    ALDE considers it a priority to

    quickly put in place the RABIT

    (RApid Border Intervention

    Teams), an instrument which

    is closely linked to FRONTEX

    and which aims to reinforce thesolidarity between Member States

    in case of a massive influx of

    illegal immigration at the Unions

    external borders. Having regard to

    their Constitution, eectively each

    Member State is to ensure the

    presence of a reserve of qualied

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    personnel with special training

    to be temporarily available for

    FRONTEX to assist the border

    guards of other Member Statesfacing a sudden and massive inux

    of illegal immigrants at the Unions

    external border so as to permit

    the creation of genuine European

    rapid border intervention teams.

    Border checks and action to

    combat illegal immigration can

    be only one aspect of the EUspolicy towards non-EU countries.

    An active country of origin and

    transit development policy must

    be established with a view to

    minimising the damaging eects

    of emigration. ALDE believes

    that an EU Marshall plan should

    be considered, where nancial

    support and trade agreements are

    linked to democracy, human rights

    development and migration so as

    to oer an alternative to people

    leaving their country of origin.

    Integration

    and EU Citizenship

    ALDE believes that a coherent

    European immigration policy

    must be accompanied by an

    ambitious integration policy. While

    acknowledging that currently an

    integration policy at EU level is

    currently subject to the principle

    of subsidiarity, migrants shouldbe oered the same basic rights

    in all Member States. However,

    ensuring basic rights does not

    guarantee a good integration

    process. National, regional and

    local authorities play an important

    role and should assume their

    responsibility, depending on the

    local circumstances. United indiversity, there is no such thing

    as one full edged integration

    policy on a European level, as

    Member States apply dierent

    integration models depending

    on local circumstances.

    ALDE believes that integration

    should be considered as a two-way

    process that presupposes both

    the immigrants willingness to, and

    responsibility in, integrating into

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    their host society and EU citizens

    willingness to accept and include

    immigrants.

    The integration into the labour

    market, the right to education

    and training, access to social and

    health-care services as well as

    immigrants participation in social,

    cultural and political life should

    be promoted, and constructive

    intercultural dialogue and

    thoughtful public discourse be

    developed.

    Employment of immigrants

    remains one of the keys to

    successful integration. Improving

    the employment prospects

    of immigrants and reducing

    the employment gap which

    exists between the immigrant

    population and the host countrys

    population is a key part of

    integration policies. This should

    be achieved by specic languagecourses and introduction

    programmes in civic traditions

    of the host country to ensure

    that the immigrants understand,

    respect and benet from common

    European and national values.

    Ensuring the promotion of

    fundamental rights, non-discrimination and equal

    opportunities for all are key

    integration issues, which

    ALDE will pursue, thus seeking

    to eliminate the social and

    economic barriers that migrants

    may face in our societies.

    The EU directive on long-term

    residents - third-country nationals

    that have been legally resident

    for an uninterrupted period of

    ve years - provides that long-

    term residents will enjoy equal

    treatment to nationals in a number

    of areas of socio-economic life.

    Voting rights are, however, not

    regulated, but as part of a betterintegration into society ALDE

    encourages the Member States

    to grant the right to vote in local

    and municipal elections to third

    country nationals and stateless

    persons permanently residing in

    the EU for more than ve years.

    E

    uropeanCommission

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    Group of the Alliance of Liberals and Democrats

    for Europe

    Brussels address:

    European ParliamentRue Wiertz

    B-1047 Brussels

    tel: + 32 2 284 21 11

    fax: + 32 2 230 24 85

    Strasbourg address:Parlement Europen

    Alle de Printemps

    B.P 1024

    F-67070 Strasbourg

    tel: + 33 3 88 17 40 01

    fax: + 33 3 88 17 69 29

    e-mail: [email protected]

    www.alde.eu/ www.adle.eu

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    LaraSzpiro

    Our over-arching objective is to create the

    highest possible level of well-being for thecitizens of Europe. We do not see an e cient

    competition policy as a goal in itself butas a tool to create an environment whereEuropeans can exercise greater free choice.

    This freedom is essential for a higher standard

    of living and for an improved quality of life

    for the individual. It also creates a business

    environment that encourages innovation

    and progress and, simultaneously, improves

    Europes position in the global economiccontext.

    excerpt from Competition policy

    ALDE points out that an effective ESDP

    will require further modernisation of the

    Member States armed forces. Reorientation

    of spending and investment might not su ce,

    so that increases in military spending, both atthe EU level and by the Member States might

    be considered. The completion of an eective

    Rapid Reaction Task Force is a priority as is the

    further development of the European Defence

    Agency (E.D.A.).

    excerpt from Defence policy

    Enlargement should be accompanied by a

    deepening of the Unions democratic structure

    and the role of the European Parliament and

    national parliaments, as well as an increased

    focus on securing the Unions core values, thefour fundamental freedoms - free movement

    of goods, labour, services and capital.

    excerpt from Enlargement policy