Explanatory Memorandum to COM(2007)699 - European electronic communications market authority - Main contents
Please note
This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2007)699 - European electronic communications market authority. |
|---|---|
| source | COM(2007)699  |
| date | 13-11-2007 |
The development of an effective telecommunications single market is a matter of highest political priority in the EU. ICTs, and with it the Telecommunications sector, account for quarter of Europe's total growth. In the age of technological progress, cross-border business activities and growing consumer demand for electronic communications services regardless of geographic location, achieving a true internal market in telecoms becomes essential for Europe's competitiveness. Without a competitive and efficient telecommunications infrastructure, there is little chance to develop pan-European services.
The full opening of national telecoms markets to competition in 1998 served to stimulate investment and innovation by both new entrants and incumbents, and this has yielded very tangible advantages to Europe's citizens in the form of more choice, lower prices, better quality and a growing range of new fixed and mobile services.
These benefits were achieved through an EU regulatory framework designed to meet the three objectives of promoting competition, consolidating the internal market for electronic communications and benefiting consumers and users. The framework comprises five Directives that entered into force in July 2003.
In keeping with the principle of better regulation, the current framework requires the Commission to report regularly on its functioning. The first report, in June 2006 i, set out proposals for changes to the framework and, at the same time, launched a four months public consultation. This extensive and comprehensive review process brought to light a number of important problems that remain to be solved, in particular the lack of consistency in the application of EU rules and the regulatory fragmentation of the internal market. Indeed, despite the significant progress on the harmonisation of regulation in electronic communications, the inconsistent regulatory approaches by 27 national regulatory authorities – which vary significantly in terms of competences, independence and financial and human resources – stand in the way of technological developments and are increasingly felt by businesses as obstacles to the delivery of trans-national or pan-European services. Moreover, Europe's citizens should not have to pay excessive prices because costs for firms operating in several Member States remain artificially high.
To assist in overcoming these obstacles, the Commission is proposing a new independent Authority working in close cooperation with the national regulatory authorities (NRAs) and the Commission. The new Authority, accountable to the European Parliament, will include a board of regulators comprising the heads of the national regulatory authorities of all EU Member States and will replace the European Regulators Group (ERG) i. It will provide expert advice to the Commission, notably to prepare regulatory decisions under the so-called ‘Article 7’ procedure, and to further the internal market by improving consistency in the application of EU rules, and will act as a centre of expertise for electronic communication networks and services at EU level. The new Authority would also take over the functions of the European Network Security Agency (ENISA), thereby overcoming many of the problems that have been identified in the operation of ENISA i.
The present proposal complements two other proposals to amend the Directives composing the current regulatory framework for electronic communications i. The three proposals are accompanied by an Impact Assessment i.
- Existing provisions in the area of the proposal
This Regulation complements the five Directives comprising the EU regulatory package for electronic communications. Proposed changes to the Framework Directive streamline the market analysis procedure but this simplification needs to be complemented by the establishment of a specialised and independent expert body assisting the Commission in assessing the technological complexities of future markets. The proposed changes to the Authorisation Directive set up new procedures for the harmonisation of conditions for rights of use at EU level and for selecting providers of cross-border services, where appropriate. The new Authority will be the vehicle for implementing these procedures. Changes to the Universal Service Directive will facilitate access to and use of e-communications, including emergency services, by disabled users. The Authority will act as a focal point for treating these issues at EU level.
- Consistency with the other policies and objectives of the Union
The objectives of the proposed Regulation are in line with the renewed Lisbon Strategy for promoting growth and jobs through greater competitiveness, with the Commission's associated i2010 initiative and its objective of creating a single European Information Space, and with the Commission's strategy to strengthen the internal market. This proposal aims to improve the functioning of the internal market in electronic communications.
- Consultation of interested parties
Consultation methods, main sectors targeted and general profile of respondents
The Commission services launched a two-phase consultation on the review of the regulatory framework which started at the end of 2005. The publication of a Communication in June 2006 launched the second public consultation, which lasted four months and ended on 27 October 2006. 224 responses were received from a wide range of interested parties, both inside and outside the EU.
The major concerns expressed in the public consultation were as follows: i) considerable differences exist in the way the framework is implemented at national level. The fragmentation of the internal market into different regulatory systems hinders investments, which would benefit greatly from common and predictable regulation across the EU. Many parties pointed out that the widely diverging application of rules prevent the full benefits of the internal market from being achieved; ii) the current approach for selecting and authorising operators for certain types of cross-border service is not compatible with the exploitation of economies of scale needed for the development of new services. For genuine cross-Community services in particular, there is a case for establishing a more coordinated system for the authorisation of rights-of-use for frequencies and numbers. The importance of enhancing EU competitiveness and achieving economies of scale for cross-Community services was also pointed out in the response of the ERG to Commissioner Reding; iii) better use should be made of the potential expertise present in the ERG. However, in order to avoid a 'lowest common denominator', approach, institutional reform of the ERG, to allow it to contribute better to consistency and harmonisation, where appropriate, is considered essential.
- Collection and use of expertise
The Commission has drawn upon the results of various studies from external contractors in the preparation of this and the related proposals.
These studies are described in the associated Impact Assessment, and cover both economic modelling and research on stakeholder views.
The studies are available at:
ec.europa.eu/information_society/policy/ecomm
- Impact assessment
The impact assessment examines a range of options to achieve the objective of finding the best regulatory model for delivering a single market in e-communications through consistent and effective regulation while respecting the principles of subsidiarity and proportionality.
The report contains an assessment of the main impacts of three policy options, which consider different institutional arrangements with different balances of powers between national authorities and the EU.
The cost-benefit analysis of the proposed Authority shows that under a conservative scenario, it can be estimated that in the policy areas where the Authority would be active, it has the potential of bringing total economic benefits far exceeding its budgetary costs by a factor of around 10-30 times (i.e. the order of magnitude of the benefits would be around € 250 – 800 million). The benefits can amount to between € 550 and € 1400 million if the more optimistic scenarios for the growth of pan-European markets are realised.
A major source of such benefit is the reduction in the regulatory risk which would be achieved through the contribution of the Authority. Even a marginal reduction in the regulatory risk (of around 10%) across Europe, will be reflected in lower cost of capital for the industry. In addition, the Authority's involvement will speed up the process of assigning frequencies for pan-European services; if implementation of major projects of this type can be brought forward by just one year, the economic benefits can be in the range of several hundred million euros.
The Impact Assessment report is available at:
ec.europa.eu/information_society/policy/ecomm
3. AN INDEPENDENT MECHANISM FOR NATIONAL REGULATORS TO COOPERATE AND TAKE DECISIONS: THE EUROPEAN ELECTRONIC COMMUNICATIONS MARKET AUTHORITY
Although the internal market for e-communications has developed in recent years there are still: i) considerable inconsistencies in the implementation of the European regulatory frame-work at national level leading to a fragmentation of European markets and the deterrence of investment; ii) no efficient mechanisms for the coordination of selecting and authorising services that have an inherent cross-border character such as mobile services and IP based services.
The independent advisory group 'European Regulators Group' (ERG) was set up by the Commission in 2004 as a means of facilitating consultation, coordination and cooperation amongst national regulatory authorities and between these authorities and the Commission. Recently, in the past year, the ERG has provided Opinions to the Commission on Functional Separation and Regulatory Principles of Next Generation Access, and undertaken a number of public consultations on proposed ERG common positions (e.g. wholesale unbundled access, voice over IP and bitstream access). However, all ERG common approaches are factually based on consensus, making such common approaches difficult and slow to achieve. They are indeed impossible to achieve where there are substantial differences of opinion or interest between different regulators. The loose cooperation that results has not allowed its documents to go beyond rather general statements in a number of important and controversial issues.
The present approach within ERG, which in practice usually requires reaching the agreement among all 27 regulators, is further complicated by the presence of a parallel body which operationally overlaps to the ERG – the Independent Regulators Group (IRG). The IRG is made-up of the EU-27 Member States and seven other European countries, and while it influences Community regulatory approaches it has neither any obligation to implement Community Law nor any duty to report to the Commission i. That the current structure is not producing sufficient results, therefore, stems from a sub-optimal organisation not only as regards the speed and efficiency of achieving consistent EU approaches, but also as regards accountability and transparency.
The Commission has evaluated the different options for organising the required tasks, including whether the Commission would be able to pursue these tasks itself. Harmonising at a central level would require a specialist expertise of each of the 27 national markets. In practice, only a body emanating from the national regulators would have the detailed local knowledge necessary to achieving success on these issues. Moreover, the NRAs are in many cases already substantial bodies in their own right; it is inconceivable therefore that the Commission could have the scale of resources and expertise needed to replace the national regulators.
The option of an enhanced ERG, with voting rights in order to take majority decisions, has also been examined. Notwithstanding the difficulties of implementing a commonly acceptable system of votes, such a body would not be in a position to issue decisions that were binding on its members. Under the current Treaty, such a role can only be undertaken by the Commission. Moreover, there are serious institutional constraints on the extension of the ERG to achieve the level of competence needed to carry out such an enhanced role. Any extension of the ERG would require a significant enhancement of its existing resources to allow it to carry out its work as the current system of rotating presidencies of the ERG has reached its limits (establishment of an executive director, reinforcement of its secretariat, formal rules of procedure for taking decisions, etc). The resources for such an enhancement of the ERG's role cannot be drawn from outside resources as the Commission must be sure that its opinions and advice are transparent, accountable and independent. For example, an enhanced ERG could not be a legitimate advisory body to the Commission if it was based on resources provided to it through the IRG. In fact, the ERG can only enhance its advisory role to the Commission in the way needed if it becomes a Community body, subject to the same rules of administration and budget that apply to all community bodies (staff regulation, financial regulation, reporting requirements to Parliament, etc.).
The Commission has therefore concluded that the tasks required could be best fulfilled by a separate entity which is independent and outside the Commission and which reinforces the powers of the NRAs by taking over the functions of the ERG and giving them a robust and transparent foundation in Community law. This body would provide opinions and advice to the Commission regarding a range of substantive decisions of European interest, albeit that it would also take individual decisions on the administration of the European telephone numbering space.
The proposed tasks would complement, and not duplicate, at European level the regulatory tasks performed by the national regulators. The Authority will provide the means for establishing an effective partnership between the Commission and the National Regulators on issues where European consistency is needed such as: market definitions, analysis and remedies; harmonisation of radio spectrum usage; definition of trans-national markets; quality of service. At the same time it will provide a cost effective platform for addressing pan-European issues that reach beyond those that are within the purview even of an enhanced ERG, such as network and information security; implementation of the 112 emergency call number; administration of the European Telephony Numbering Space.
The proposed Authority would form the cornerstone of a robust and unitary framework within which national regulators will be able to cooperate in way that is consistent with the principles defined by the Commission in the draft inter-institutional agreement on the operating framework for the European regulatory agencies i.
The Authority would complement at European level the regulatory tasks performed at national level by the regulatory authorities by:
- Providing a framework for national regulators to cooperate. It is proposed to improve the handling of cross-border aspects of e-communications market regulation and network integrity. The Authority will provide procedures for cooperation between national regulators, in particular as regards the exchange of information, provision of advice and technical support. The Authority would have powers to mediate and resolve cross-border disputes between NRAs. This framework will also promote cooperation between EU national regulators and third countries.
- Regulatory oversight of market definition, analysis and the implementation of remedies. The Authority would in general have an advisory role vis-à-vis the Commission as regards market regulation issues and could issue non-binding guidelines to promote good practices among the national regulators. Draft measures of NRAs would be subject to opinions as concern their potential impact on single market and compatibility with Community law, where necessary proposals for modifications would be included in the opinion. These opinions will be delivered to the Commission on a fast-track basis on the basis of a simple majority vote amongst its members.
- Definition of trans-national markets: the Authority provides for an efficient and proportional mechanism to respond to growing cross-border markets stemming from rising mobility, increased penetration of internet-based services (e.g. VoIP), satellite-based services and convergence between fixed and mobile services. The Authority will also be responsible for monitoring the development of roaming services, both voice and data.
- Advice on radio frequency harmonisation : the Authority would increase the speed and effectiveness of radio spectrum policy through on-going analysis and reporting, the identification of the potential and means for development of new services, maintenance of a register of spectrum use across the EU, advice on common procedures for granting authorisations, technical support in the selection of applications for spectrum licences, advice on withdrawal of rights of use in the case of failure to conform to licence conditions.
- Decision powers on numbering administration and advice on number portability. The Authority would be charged with the administration and development of the European Telephony Numbering Space (ETNS), i.e. numbers using a single EU-wide prefix (3883) that can be assigned to organisations wishing to establish one-stop, pan-European call-centres. In addition, the Authority would work with NRAs and Member States on European aspects of numbering and number portability, inter alia by reporting on the development of the European Emergency Number 112, the identification of numbering ranges for cross-border services, the identification of the potential and means for development of new services, and providing advice on common procedures for granting authorisations.
- Network and information security . The Authority will subsume the tasks of the existing European Network and Information Security Agency). In so doing it will reinforce the coherence between obligations to ensure network integrity that today fall on NRAs and the responsibility to create a culture of network and information security that is today the remit of ENISA.
- General informational and advisory functions . The Authority would have a role to provide an annual report on the development of the electronics communications sector (offer and penetration of new services, development of competition, review of national regulatory situation, remedies applied, information on appeals procedures, etc.). In addition it would monitor and report on interoperability and e-accessibility in Europe, with the ability to issue recommendations on measures to be taken at national level to better meet, in particular, the needs of disabled or elderly citizens.
Legal elements of the proposal
- Legal basis
Article 95 EC
- Subsidiarity principle
The objective of the proposed action cannot be sufficiently achieved by Member States alone.
- In the present regulatory framework, the authorisation of services is handled at Member State level and considerable discretion is given to the 27 NRAs, with a limited oversight and coordination role for the Commission. This means that the internal market is still a patchwork of 27 different regulatory systems. This hinders the development of cross-border services and operators are confronted with different or diverging operating conditions in similar circumstances. In practice, several regulatory issues dealt with by national regulators are common across the EU (e.g. regulatory treatment of new services, aspects of regulatory accounting, numbering issues, the functioning of equipment and services for disabled users travelling in the EU, etc.) i. For these areas, in order to promote economies of scale and a competitive internal market, it is of pivotal importance to develop a common EU practice and expertise to further consistency and, where appropriate, harmonisation. This requirement can be effectively and efficiently addressed only by improving the current institutional model and the balance between the responsibilities assigned to Member States, NRAs, and the Commission. This can be achieved only by action at Community level.
- The development of cross-border service provision within the Community is one of the objectives of the Review, as provided for by the Authorisation Directive i. The extensive public consultation highlighted the urgent need to make it easier for operators to offer cross-Community services, by removing some of the important obstacles inherent in the current approach i. There are a number of cross-border services that cannot be regulated in a consistent way or addressed with a view to achieving economies of scale by the action of individual Member States.
By improving the consistency of regulation in the internal market and reducing the costs of firms operating across multiple countries, action at Community level would be clearly beneficial by reason of its scale and would produce positive effects compared to action taken at the level of Member States. The objectives of the proposed action can thus be better achieved at Community level.
- Proportionality principle
The proposal complies with the proportionality principle as the Authority will have an advisory role in helping the Commission to implement policy in the field of electronic communications.
- The creation of the Authority will integrate the cooperation among NRAs (currently within the ERG) within the Community system. There is clearly a need to improve the arrangements so that certain tasks currently carried out by the ERG – which is essentially a consultative forum of national regulators without the institutional capability to arrive at common decisions – are performed by a single specialised body at EU level, acting within the Community's institutional structure. In performing its tasks the Authority will provide the Commission with technical expertise and help in preparing regulatory decisions to further the internal market, which will be enhanced by the proposed incorporation of the work of ENISA on network and information security.
- The Authority's Board of Regulators will comprise the heads of the NRAs and will work in the Community interest. The proposed system will allow the Commission to benefit from the joint expertise of the national regulators – which have a closer knowledge of national markets and circumstances – and reinforce cooperation between the Commission and the national regulators. The system complements the powers of NRAs for the implementation of the regulatory framework at national level.
- Rights of use for frequencies and numbers used for the provision of cross-Community services will continue to be granted at national level, under a commonly agreed approach, to be applied only to certain services with cross-Community characteristics (e.g. satellite services). Cross-Community services would also continue to be authorised at national level, under a commonly agreed approach. However, the granting of rights of use for frequencies and numbers for the provision of nationally-based services are not concerned by this proposal and will remain under the responsibility of the NRAs.
This means that while improving coordination in some key areas with a Community dimension, the role of the Authority will not go beyond what is necessary to achieve the objective sought.
Due to the fact that the proposed instrument will apply directly within the Community by virtue of its status as a Regulation, the financial and administrative burden falling upon the Community, national governments, and economic operators will be minimised and be proportionate to the objective of the proposal.
- Choice of instruments
Proposed instruments: Regulation of the European Parliament and the Council.
A Regulation having direct application is the appropriate instrument for creating an Authority of the type proposed.
Contents
- BUDGETARY IMPLICATION
- DETAILED EXPLANATION
- 2. CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT
- Summary of responses and how they have been taken into account
- 3. AN INDEPENDENT MECHANISM FOR NATIONAL REGULATORS TO COOPERATE AND TAKE DECISIONS: THE EUROPEAN ELECTRONIC COMMUNICATIONS MARKET AUTHORITY
- 3.1. The experience of ERG needs to develop into a formal cooperation structure
- 3.2. Main tasks of the new Authority
- 5. ADDITIONAL INFORMATION
- OF THE PROPOSAL
- Chapter II: Tasks of the Authority relating to strengthening the internal market
- Chapter III: Complementary tasks of the Authority
- Chapter IV: Organisation of the Authority
It is estimated that the Authority will expand up to a permanent staff of 134 FTE once fully established. This includes taking over the tasks and resources of ENISA in 2011. The annual budget is estimated at € 10 million in the first year, rising to € 28 million from year 3 onwards. In addition to the Community contribution, the Authority may collect fees and charges for some services. Income received by the Authority for the services provided will contribute to financing its activity i.
Against these costs should be set the savings achieved by incorporating ENISA into the proposed Authority. The current annual budget of ENISA is around € 8 million.
- Simplification
The proposal forms part of a new system to make the existing regulatory process simpler and more efficient for both administrations and market players. The Authority will improve the decision-making process and facilitate cooperation between the Commission and the NRAs, on the basis of common objectives and procedures. The establishment of the Authority will be accompanied by a relaxation of the present system of automatic notification under ‘Article 7’ procedure, which will pave the way for a substantial reduction in the procedural burden on the industry, the NRAs and the Commission, where the Commission will intervene in serious cases only. The Authority will have an important role to play in assessing the technical complexities of such cases, and in ensuring solutions and consistent outcomes in the internal market.
The current system for granting rights of use for frequencies or numbers, with different legal and procedural requirements in every Member State where services are offered, can be extremely complex and burdensome for undertakings wishing to provide services on a cross-Community basis. Meeting requirements that are different in every Member State (for example, the duration of the rights-of-use and the conditions attached) complicates the planning of, investment in and ultimately the deployment of services with a European footprint. Such a wide variation in the procedures to obtain rights-of-use discourages market entry and impedes the functioning of the internal market. This argues in favour of a more coordinated approach to selecting undertakings for the issuance of national rights-of-use for frequencies and numbers.
The proposal is included in the Commission's rolling programme for up-dating and simplification of the acquis communautaire .
- Review/revision/sunset clause
The proposal includes a review clause.
- European Economic Area (EEA)
The proposed act concerns an EEA matter and should therefore extend to the EEA.
Chapter I (Subject-matter, scope, definitions and tasks)
Articles 1 and 2: provide the scope of application of the regulation, which is to improve the functioning of the internal market for electronic communications by establishing a European Electronic Communications Market Authority, and establish it.
Article 3: specifies its functions such as delivering opinions on its own initiative or at the request of the Commission, and assist the Commission in providing technical advice, undertaking studies, collecting information and reports, etc.
Article 4: provides the matters addressed by the Authority to foster the harmonised application of the regulatory framework.
Article 5: regulates the consultation of the Authority in relation to the definition and analysis of national markets and remedies. The Authority will be required to give an opinion within a specified timeframe in cases where the Commission expressed 'serious doubts' about a draft measure notified under Article 7 of the Framework Directive.
Article 6: where an NRA failed to analyse a market within the required timeframe, the Commission could ask the Authority to provide advice and assistance in relation to that specific national market.
Article 7: the Authority will undertake the analysis of trans-national markets following identification of a trans-national market by the Commission, in accordance with the provisions of Article 15 i of the Framework Directive.
Article 8: concerns the Authority's tasks in the field of numbering which include the administration and development of ETNS, the management of harmonised numbering ranges (e.g. handling the requests for reservation of 116 numbers, pursuant to Commission Decision 2007/116/EC), and delivering an opinion, on request, on obligations regarding the porting of numbers.
Article 9: the Authority will assist the Commission by carrying out an annual review of measures taken at national level to increase the awareness of the single European emergency number 112. On request of the Commission, it will issue an opinion on technical issues related to the implementation of 112.
Article 10: the Authority will assist the Commission on issues relating to technical and economic aspects regarding radio frequencies used for the provision of electronic communications services.
Article 11: the Authority will assist in the identification of the services with cross-Community which would benefit from a common selection procedure. For a service to qualify as a cross-Community service, it will need to fulfil certain conditions. For example, there should be demand for the services in more than one Member State and the services concerned, by the nature of the characteristics, crosses national borders and as such are susceptible to EU or regional rather than national regulation.
Article 12: sets out the provisions for the identification of undertakings for right of use to be used for the provision of cross-Community services. The Authority will carry out the selection procedure and deliver an opinion proposing the undertaking(s) to which rights of use could be granted.
Article 13: the Authority will play a role on the withdrawal of rights of use issued following a common selection procedure.
Article 14: the Authority will contribute to the development of a culture of network and information security by carrying out certain activities previously undertaken by ENISA.
Article 15: lists the cases where the Authority can act on its own initiative.
Articles 16 and 17: the Authority will collect the administrative charges for some of the services provided to offset the costs of administration. In case of a common selection procedure, it will also collect administrative charges and usage fees for rights-of-use of radio frequencies on behalf of Member States, which it will then redistribute to the Member States.
Article 18: on request from a NRA, the Authority will issue recommendations to the NRAs as the measures to be taken by the NRAs in case of cross-border issues.
Articles 19 to 21: the Authority will play a role in the dissemination and exchange of information between the Member States, the NRAs and the Commission. It could be involved in studying technical development within the Community. It will publish an annual report on developments in the electronic communications sector, in which it will identify remaining barriers to completion of the single market. It will play a role in the collection of information as in the management and publication of the frequencies information registry (the Annex sets out the information to be included in the registry) and of the mobile roaming database.
Article 22: the Authority will assist the Commission on e-Accessibility issues and publish an annual report on measures to be taken to improve accessibility of electronic communications networks and equipment by disabled end-users.
Article 24: the organisational structure of the Authority will include six bodies: an Administrative Board, a Board of Regulators, a Director, a Chief Network Security Officer, a Permanent Stakeholders' Group, and a Board of Appeal.
Articles 25 and 26: The Administrative Board will be responsible for the appointment of the Director and Chief Network Security Officer, adoption of the Authority's annual work programme and budget, the approval of the general report on the Authority's activities, and the adoption of the financial rules applicable to the Authority. The Authority will regularly give an account of its activities to the European Parliament.
Articles 27 and 28: the Board of Regulators will comprise one member per Member State who would be the Head of the independent national regulatory authority with responsibility for the day-to-day application of the regulatory framework in the Member State, and the Director. The Commission may participate, but without a right to vote, in Board meetings. The Board of Regulators will be responsible for technical decision-making of the Authority in areas such as the identification of potential rights holders, the opinions under Article 7 cases, etc. Opinions and decisions should be taken by simple majority.
Articles 29 and 30: the Director, will be fully responsible for tasks assigned to the Authority and be the Authority's legal representative. The Director will also be responsible for the preparation and implementation of the budget, the preparation of the draft work programme, and for personnel matters i.
Article 31: The Chief Network Security Officer will be responsible for the coordination of the Authority's tasks and the preparation of an annual work programme in the area of network and information security. He/she will report to the Director and be supported by a Permanent Stakeholders' Group (Article 32).
Articles 33 and 34: set out the Board of Appeal to ensure that parties affected by decisions of the Authority in the field of numbering enjoy the necessary remedies.
Articles 36–53 cover standard operational and administrative matters, including, budget, access to documents and transparency, legal status of the Authority, staff, participation of third countries, etc.
Article 55: concerns the Commission's evaluation of the results of the Authority in relation to its mandate and objective, to be issued after five years from the effective start of operation of the Authority. The report and any accompanying proposal will be transmitted to the Council and the European Parliament.