The European Parliament adopted a resolution on strategic goals and recommendations for the EU’s maritime transport policy until 2018, in response to the Commission’s communication on the same subject.

The resolution stresses the importance of the maritime transport sector to the European economy, not only as a carrier of passengers, raw materials, goods and energy products but also as the core of a wider cluster of maritime activities such as the naval industry, logistics, research, tourism, fisheries and aquaculture, and education. Members would like to see EU maritime policies being designed within the framework of a ‘single European sea’ henceforth and, consequently, calls on the Commission to develop a European maritime transport policy as part of a common maritime area.

The market: Parliament calls on the Commission to continue to combat abuses of flags of convenience . Member States are urged to encourage the use of their flags and to support their maritime clusters on shore, for example by providing fiscal facilities such as a tonnage tax system for ships as well as fiscal facilities for seafarers and ship owners.

Parliament considers that the maritime sector must in principle be governed by the rules on State aid . It underlines that State aid should be used exclusively to support European maritime sectors that are committed to social standards, the promotion of jobs and the training of personnel in Europe, and to ensure the global competitiveness of European shipping.

Members consider that the Community guidelines on State aid to shipping, which expire in 2011, must be retained and extended. They call on the Commission to submit the promised new rules on State aid for maritime transport in 2010, as well as the guidelines on State aid to sea ports.

The Commission is invited to: (i) to give greater consideration to maritime transport and its land-based structures during the forthcoming revision of the Community guidelines for the development of the trans-European transport network, (ii) encourage short sea shipping.

Social aspects: the resolution stresses the need to provide lifelong learning and retraining for seafarers at all levels, on shore and on board, with a view to strengthening the professional qualifications and skills of the workforce . Members States are urged, within the scope of international conventions, to improve and modernise existing training programmes.

Parliament emphasises the fact that seafarers from third countries must comply with satisfactory training requirements and calls on ship owners and national inspectorates to guarantee and enforce this. It invites the Member States to encourage the use of EU seafarers in their own fleets and to create sufficient facilities to prevent the migration of seafarers outside the Union.

Members underline that the social dimension and the working conditions of EU seafarers are closely linked to the competitiveness of the European fleet. They encourage the exchange of good practices in relation to employment conditions and social standards, as well as an improvement in living conditions on board vessels, particularly through the development of information and communication technologies, better access to healthcare, better safety standards and training.

Environment: the resolution recognises that considerable progress must be made on reducing emissions of sulphur oxides and nitrogen oxides, particulates (PM10) and CO2. It stresses that the sector can contribute to the fight against harmful emissions and climate change. In this regard, public and private investments in research and development will be of particular interest.

Members underline that emissions reductions must be agreed rapidly and implemented with binding force via the International Maritime Organisation (IMO) in order to limit disparities in competitive conditions, but that this must not prevent the Union from taking initiatives aimed at further reductions by the fleets of its Member States, Member States are urged to make more use of the option of designating maritime emission control areas .

Parliament deplores the fact that the Copenhagen Climate Summit did not succeed in reaching any conclusions with regard to reducing emissions from seagoing vessels, but stresses that intensive efforts must continue to agree global measures to bring about such reductions . It invites Member States to make every effort to ensure that the IMO receives a mandate for the next international climate negotiations, with quantifiable reduction targets for maritime transport.

The resolution supports measures that encourage modal shifts towards maritime transport with a view to easing congestion on major roads. It hopes to see the rapid and extensive introduction, within the framework of the Union for the Mediterranean, of ‘motorways of the sea’. It is concerned, however, about a possible shift back from short sea transport to road haulage as a result of the introduction of the 0.1% sulphur limit, envisaged as of 2015, in the sulphur emission control areas in the North Sea and the Baltic Sea. The Commission is invited to submit a relevant impact assessment to Parliament as swiftly as possible and by the end of 2010 at the latest.

Members consider that all modes of transport, including maritime transport, must gradually internalise their external costs. They call on the Commission and the Member States to work on alternative instruments such as the introduction of a levy on bunker fuel or the concept of ‘ green ports ’, where clean vessels are dealt with more quickly and/or pay reduced harbour dues. They stress that, as part of its research and development policy, the Commission must give priority to innovation in the area of renewable technologies for use on vessels, such as solar and wind technologies.

Safety: the resolution welcomes the adoption of the Third Maritime Safety Package, and calls on Member States to implement the package speedily. Parliament supports the change of course in the Paris Memorandum of Understanding (MoU) on Port State Control, which entails replacing regular inspections with risk-based inspections , so that precisely those vessels which display numerous shortcomings are tackled effectively. Members also advocate stringent checks on shipbuilding, including on the quality of steel used and on vessel design and maintenance.

Parliament calls on national inspectorates and other national authorities to cooperate more closely in exchanging data on vessels and their cargoes, so as to reduce regulatory pressure but increase the effectiveness of inspections. It calls for the rapid introduction of an integrated information management system through the use and improvement of resources already available, especially SafeSeaNet. The Commission is invited to put in place, as soon as possible, an EU-wide cross-border and cross-sectoral surveillance system.

Aware of the danger of piracy on the high seas , notably in the Horn of Africa area and the waters off the coast of Somalia, Parliament calls on all ship owners to cooperate with government initiatives to protect them against piracy, along the lines of the EU’s successful first naval operation, Atalanta.

The resolution stresses that shipping is a global industry and that agreements ought, in preference, to be concluded on a global scale . It calls on Member States to make more effort to ratify and implement quickly IMO conventions which they have signed.

Lastly, Parliament underlines the need to speed up the modernisation and expansion of port infrastructure capacities in anticipation of the expected rise in the volume of goods transported by sea. It points out that this will require huge investments, which will have to comply with transparent and fair financing rules in order to ensure fair competition among European ports. The Commission is invited to ensure that the regulatory framework is coherent in this regard.

The Committee on Transport and Tourism adopted the own-initiative report by Peter van DALEN (ECR, NL) on strategic goals and recommendations for the EU’s maritime transport policy until 2018, in response to the Commission’s communication on the same subject.

The report stresses the importance of the maritime transport sector to the European economy, not only as a carrier of passengers, raw materials, goods and energy products but also as the core of a wider cluster of maritime activities such as the naval industry, logistics, research, tourism, fisheries and aquaculture, and education. Members would like to see EU maritime policies being designed within the framework of a ‘single European sea’ henceforth and, consequently, calls on the Commission to develop a European maritime transport policy as part of a common maritime area.

The market: Members call on the Commission to continue to combat abuses of flags of convenience . Member States are urged to encourage the use of their flags and to support their maritime clusters on shore, for example by providing fiscal facilities such as a tonnage tax system for ships as well as fiscal facilities for seafarers and ship owners.

Parliament’s committee considers that the maritime sector must in principle be governed by the rules on State aid . It underlines that State aid should be used exclusively to support European maritime sectors that are committed to social standards, the promotion of jobs and the training of personnel in Europe, and to ensure the global competitiveness of European shipping.

Members consider that the Community guidelines on State aid to shipping, which expire in 2011, must be retained and extended. They call on the Commission to submit the promised new rules on State aid for maritime transport in 2010, as well as the guidelines on State aid to sea ports.

The Commission is invited to: i) to give greater consideration to maritime transport and its land-based structures during the forthcoming revision of the Community guidelines for the development of the trans-European transport network, ii) encourage short sea shipping.

Social aspects: the report stresses the need to provide lifelong learning and retraining for seafarers at all levels, on shore and on board, with a view to strengthening the professional qualifications and skills of the workforce . Members States are urged, within the scope of international conventions, to improve and modernise existing training programmes.

The committee emphasises the fact that seafarers from third countries must comply with satisfactory training requirements and calls on ship owners and national inspectorates to guarantee and enforce this. It invites the Member States to encourage the use of EU seafarers in their own fleets and to create sufficient facilities to prevent the migration of seafarers outside the Union.

Members underline that the social dimension and the working conditions of EU seafarers are closely linked to the competitiveness of the European fleet. They encourage the exchange of good practices in relation to employment conditions and social standards, as well as an improvement in living conditions on board vessels, particularly through the development of information and communication technologies, better access to healthcare, better safety standards and training.

Environment: the report recognises that considerable progress must be made on reducing emissions of sulphur oxides and nitrogen oxides, particulates (PM10) and CO2, It stresses that the sector can contribute to the fight against harmful emissions and climate change. In this regard, public and private investments in research and development will be of particular interest.

Members underline that emissions reductions must be agreed rapidly and implemented with binding force via the International Maritime Organisation (IMO) in order to limit disparities in competitive conditions, but that this must not prevent the Union from taking initiatives aimed at further reductions by the fleets of its Member States, Member States are urged to make more use of the option of designating maritime emission control areas .

The report deplores the fact that the Copenhagen Climate Summit did not succeed in reaching any conclusions with regard to reducing emissions from seagoing vessels, but stresses that intensive efforts must continue to agree global measures to bring about such reductions . It invites Member States to make every effort to ensure that the IMO receives a mandate for the next international climate negotiations, with quantifiable reduction targets for maritime transport.

Parliament’s committee supports measures that encourage modal shifts towards maritime transport with a view to easing congestion on major roads. It hopes to see the rapid and extensive introduction, within the framework of the Union for the Mediterranean, of ‘motorways of the sea’. It is concerned, however, about a possible shift back from short sea transport to road haulage as a result of the introduction of the 0.1% sulphur limit, envisaged as of 2015, in the sulphur emission control areas in the North Sea and the Baltic Sea. The Commission is invited to submit a relevant impact assessment to Parliament as swiftly as possible and by the end of 2010 at the latest.

Members consider that all modes of transport, including maritime transport, must gradually internalise their external costs. They call on the Commission and the Member States to work on alternative instruments such as the introduction of a levy on bunker fuel or the concept of ‘ green ports ’, where clean vessels are dealt with more quickly and/or pay reduced harbour dues. It stresses that, as part of its research and development policy, the Commission must give priority to innovation in the area of renewable technologies for use on vessels, such as solar and wind technologies.

Safety: the report welcomes the adoption of the Third Maritime Safety Package, and calls on Member States to implement the package speedily. It supports the change of course in the Paris Memorandum of Understanding (MoU) on Port State Control, which entails replacing regular inspections with risk-based inspections , so that precisely those vessels which display numerous shortcomings are tackled effectively. Members also advocate stringent checks on shipbuilding, including on the quality of steel used and on vessel design and maintenance.

The committee calls on national inspectorates and other national authorities to cooperate more closely in exchanging data on vessels and their cargoes, so as to reduce regulatory pressure but increase the effectiveness of inspections. It calls for the rapid introduction of an integrated information management system through the use and improvement of resources already available, especially SafeSeaNet. The Commission is invited to put in place, as soon as possible, an EU-wide cross-border and cross-sectoral surveillance system.

Aware of the danger of piracy on the high seas , notably in the Horn of Africa area and the waters off the coast of Somalia, Members call on all ship owners to cooperate with government initiatives to protect them against piracy, along the lines of the EU’s successful first naval operation, Atalanta.

The report stresses that shipping is a global industry and that agreements ought, in preference, to be concluded on a global scale . It calls on Member States to make more effort to ratify and implement quickly IMO conventions which they have signed.

Lastly, Members underline the need to speed up the modernisation and expansion of port infrastructure capacities in anticipation of the expected rise in the volume of goods transported by sea. They point out that this will require huge investments, which will have to comply with transparent and fair financing rules in order to ensure fair competition among European ports. The Commission is invited to ensure that the regulatory framework is coherent in this regard.

The Council adopted the following conclusions on integrated maritime policy:

it welcomes the strong commitment towards integrated maritime governance in Member States and invites them and the Commission to continue to implement a comprehensive strategy for growth, jobs and sustainability for the oceans, seas and European coastal regions, with due respect to subsidiarity and proportionality and on the basis of a continued strong involvement of stakeholders; it recalls that the Marine Strategy Framework Directive (MSFD) has been welcomed by the European Council as the environmental pillar of the EU Integrated Maritime Policy (IMP) and acknowledges the MSFD, with the ecosystem based-approach to the management of human activities as an overarching principle, as a basis on which to develop more successfully all maritime activities within the concepts of sustainability in line with the MSFD. The Council stresses the need to integrate the sustainable use of marine goods and services by present and future generations into decision-making; it welcomes the continued implementation of the EU Strategy for Marine and Maritime Research aimed at providing the knowledge base for the implementation of the IMP, and underlines that efforts should also foster innovation by identifying the economic value of marine goods and services, including ecosystem services, and by developing core ocean technologies and exploring future market potentials in relation to maritime clusters; the Council calls for further dialogue and co-operation in order to improve the governance of the marine space and coastal areas in the Mediterranean area, taking into account its sub-regions, emphasising the need to engage in an early dialogue with Mediterranean neighbours on this item, taking into account the United Nations Convention on the Law of the Sea (UNCLOS). It also encourages S further dialogue in order to strengthen the Black Sea Synergy-based cooperation and its relevance for the IMP; it calls for a further development of the strategic approaches to regional sea basins where there is a demand and a perspective of clear added value, and a sound and speedy implementation of the specific actions under these specific strategies, inter alia by setting up relevant pilot projects, and by including seeking synergies with other EU policy instruments and funding, such as Cohesion Policy, Neighbourhood policy and External Relations, and the regional dimension in the implementation of the MSFD; the Council notes with satisfaction that a number of Member States are proposing to host the European Maritime Day Stakeholder conference from 2011 onwards, and encourages Member States and stakeholders to also organise de-centralised events celebrating the European Maritime Day across Europe.

The Council invites the Commission to do the following:

to report on the outcomes of the discussion on the Maritime Spatial Planning (MSP) Roadmap and to come forward with initiatives aimed at encouraging the development and use of MSP that is based on an ecosystem approach during early 2010, and which, in the light of increased economic activities at sea, help coordinate and balance sectoral interests to contribute to a sustainable use and development of the European maritime areas; to make proposals regarding governance of marine and maritime research, with a view to improving the use of scientific knowledge by policymakers and ensuring a coordinated and sustained development of marine research infrastructure at EU level; to detail its policy intentions on the IMP during 2010, taking account of these conclusions, inter alia with a renewed focus on sustainable economic growth, employment and innovation in an eco-efficient way for consultation with Member States and stakeholders; to present the necessary proposals for the financing of integrated maritime policy actions within the existing Financial Perspective, with a view to entry into force by 2011; to present a progress report on the implementation of the IMP in good time for the European Council at the end of 2012; to explore the opportunities and synergies that can be achieved by a further development of the integrated approach to maritime affairs.

PURPOSE: to present the main strategic goals for the European maritime transport system up to 2018 and to identify key areas for action where action by the EU will strengthen the competitiveness of the sector while enhancing its environmental performance.

BACKGROUND: for Europe, shipping and all related maritime industries have been one of the key stepping stones to economic growth and prosperity throughout its history. They are essential in helping the European economy and European companies to compete globally and are an important source of revenues and jobs in Europe. Europe plays a major role in today’s shipping world, with European companies owning 41% of the world’s total fleet (in dwt). 80% of world trade is carried by sea whilst short-sea shipping carries 40% of intra-European freight.

With more than 400 million sea passengers passing through European ports each year, maritime transport has also a direct impact on the quality of life of citizens, both as tourists and inhabitants of islands and peripheral regions.

However, at the end of 2008, the impact of the financial crisis on the real economy is also felt in the shipping sector. An appropriate policy approach is needed in order to ensure the continuous performance of the EU maritime transport system and its contribution to the recovery of the world economy.

CONTENT: this communication is set in the broader context of the EU Transport Policy (‘ Keep Europe moving: a transport policy for sustainable mobility ’) and the EU Integrated Maritime Policy (the ‘ Blue Paper ’). It aims at supporting other relevant policies, namely the EU’s energy and environmental policy. It is the result of continuous dialogue with the experts of the Member States, the independent advice of a group of senior shipping professionals and an analytical study examining trends and signals of change in seaborne transport.

The strategic options presented in this Communication for European shipping and for the European maritime transport system, looking ahead to 2018, represent a vision for achieving these goals. The proposed options are built on an integrated approach to maritime policy and based on the core values of sustainable development, economic growth and open markets in fair competition and high environmental and social standards. The benefits set out in this vision should go beyond the frontiers of Europe and extend to the whole maritime world, including the developing countries.

The main issues of this communication are the following:

1) European Shipping in Globalised markets : European flags continue to face acute competition from the registers of third countries. Often, foreign competitors have significant advantages in terms of government support . In the context of the current economic crisis, other factors such as the risks of overcapacity in certain market segments, protectionist trade measures by third countries, volatility in energy markets or loss of know-how due to the scarcity of skilled human resources in Europe could prompt shipping head offices and maritime industries to relocate overseas, undermining the EU’s efforts to ensure quality shipping around the world.

The conclusions of the Commission’s strategic review exercise are as follows:

to achieve and maintain stable and predictable global competitive conditions for shipping and other maritime industries. This will also ensure the resilience of the European maritime transport sector in the face of economic slowdown; to maintain a clear and competitive EU framework for tonnage taxation, income taxation and state aids at EU level; to act in a determined manner to support fair international maritime trade conditions and access to markets; to work together to achieve a level playing field for maritime transport, by observing internationally agreed rules at global level; that the Commission should take the lead role to promote alignment of the substantive competition rules globally; to concentrate on the question of the delicate balance of the international framework governing the rights and responsibilities of nations as flag on which i ntensified globalisation has put more stress.

2) Human resources, seamanship and maritime know-how : some 70% of shipping-related jobs are knowledge-intensive, high-quality jobs on shore. The growing shortage of maritime professionals entails the risk of losing the critical mass of human resources that sustains the competitiveness of the European maritime industries in general. There is a genuine EU interest in emphasizing the attractiveness of the maritime professions. Community actions should aim, in particular, to:

adopt positive measures facilitating lifelong career prospects in the maritime clusters; enhance the image of shipping and careers at sea, improve awareness of job opportunities, facilitate labour mobility in the maritime industries throughout Europe and encourage best practices in promotion and recruitment campaigns; support the work of the International Maritime Organisation (IMO) and the International Labour Organisation (ILO) on the fair treatment of seafarers; promote better use of information and communication technologies (ICT) for improving quality of life at sea; implement simplification measures to reduce the administrative burden on Masters and senior officers on board ships; provide the appropriate framework for the provision of education and training for crews in the form of measures aimed in particular at: (i) ensuring thorough enforcement of international and Community requirements under the International Convention on Standards of Training, Certification and Watch keeping for Seafarers (STCW) by all nations granting seafarers’ certificates of competence; (ii) promoting cooperation between European maritime training institutions ; (iii) establishing ‘ maritime certificates of excellence’ (European maritime postgraduate courses); (iv) introducing, for the education of officers, an ‘Erasmus’- type model for exchanges between the maritime training institutions of the Member States.

With regard to labour conditions , the first priority of the European Union is to ensure the implementation of the ILO 2006 Maritime Labour Convention (MLC) to improve working and living conditions on board ships. The action of the EU and its Member States should aim to move towards rapid ratification of the 2006 MLC by Member States (see CNS/2006/0103 and RSP/2008/2660 ).

3) Quality shipping as a key competitive advantage : by 2018, the world fleet could count some 100 000 vessels in operation (77 500 vessels in 2008). In terms of volume, the increase would be even more spectacular: its total capacity is expected to reach more than 2 100 million dwt in 2018 (up from 1 156 million dwt in 2008). In this context, the Commission insists on:

Improving the environmental performance : the Commission, Member States and the European maritime industry should work together towards the long-term objective of ‘zero-waste, zero emission’ maritime transport . To that end, the main priorities should be to: (i) ensure steady progress towards a coherent and comprehensive approach to reduce greenhouse gas emissions (GHG) from international shipping; (ii) ensure that Member States are able to achieve "good environmental status" by 2020; (iii) strengthen EU legislation regarding port reception facilities for ship-generated waste and cargo residue; (iv) follow up the proposals detailed in the Commission's Communication on an EU strategy for better ship dismantling; (v) reduce sulphur oxides and nitrogen oxides emissions from ships; (vi) re-launch the Commission’s ‘Quality Shipping Campaign’, by means of partnership agreements with the EU maritime administrations, the maritime industries at large and the users of maritime transport services.

Maritime transport safety : in the years to come, the EU and the Member States should: (i) give priority to the enforcement of existing EU and international rules and the speedy implementation of measures introduced with the 3rd Maritime Safety Package; (ii) revise the mandate and the functioning of the European Maritime Safety Agency, in order to further enhance the technical and scientific assistance it can give to the Member States and the Commission; (iii) reinforce international cooperation with EU trading and shipping partners; (iv) take care to ensure the systematic application of the IMO “Guidelines on the treatment of persons rescued at sea"; (v) ensure that, by 2012 at the latest, all Member States are on the "White List" of the Paris Memorandum of Understanding on Port State Control.

Maritime transport security : very serious concerns about acts of terrorism, piracy and armed robbery at sea persist. A further difficulty relates to incidents involving people smuggling, trafficking and stowaways. The challenge is to complete the work already started in e stablishing a comprehensive framework of security measures based on prevention, reaction capacity and resilience . This should lead to a genuine ‘security culture’ becoming an integral part of quality shipping and port operations, while not compromising unnecessarily the performance of shipping and the quality of life of seafarers and passengers. In that regard, the most urgent priority is to protect seafarers, fishermen and passengers on ships sailing off the coast of Somalia, in the Gulf of Aden or in any other region of the world that could become problematic in the future.

Maritime surveillance : looking ahead to 2018, the capacities of the EU’s maritime transport system should be strengthened by putting in place an integrated information management system to enable the identification, monitoring, tracking and reporting of all vessels at sea and on inland waterways to and from European ports and in transit through or in close proximity to EU waters. In a broader context, building on the resources currently available, such as AIS, LRIT, SafeSeaNet or CleanSeaNet, or those that are being developed, such as Galileo and GMES, the EU should promote the creation of a platform to ensure the convergence of sea-, land- and space-based technologies, the integrity of applications and appropriate management and control of information on a "need-to-know" basis.

EU energy security : m aritime transport is key to Europe's energy security and therefore is an important instrument of the European energy policy. It is to be seen as part of the EU strategy of diversification of routes and of energy sources. 90 % of oil is transported by sea, while there is an increasing trend towards transport of natural gas in a liquefied form by tankers (LNG). Many other energy products are transported by sea as well. As emphasized notably in the Second Strategic Energy Review , LNG facilities are essential for increasing flexibility in gas supplies in the internal energy market, thus enabling solidarity in crisis.

4) Working together on the international scene : the European Union has a longstanding commitment to open and fair competition in shipping and also to quality shipping. The Commission and the Member States are well placed to push for change in order to achieve a comprehensive international regulatory framework for shipping, suited to face the challenges of the 21st century: concerted action at European level is crucial in several fora, for example concerning: governance (UNCLOS), international trade (WTO and bilateral maritime transport dialogues and agreements, UNCITRAL), safety, security and environmental protection (IMO), labour (ILO) or customs (WCO). EU international cooperation efforts should lead to the establishment of a mechanism to ensure actual enforcement of internationally agreed rules by all flag and coastal states in the world .

5) Short-sea shipping : maritime transport in the EU-27 is predicted to grow from 3.8 billion tonnes in 2006 to some 5.3 billion tonnes in 2018. Passenger traffic, including ferries and cruise ships, will also grow. Territorial continuity, regional cohesion and quality standards for sea passengers will have to be ensured. In that regard, the main priorities should be to:

establish a true ‘European maritime transport space without barriers’; implement the measures announced in the Communication on a European Ports Policy ; ensure the right conditions for attracting investment flows to the port sector; generalise fast-track procedures that cut the overall lead time significantly; issue guidelines on the application of relevant Community environmental legislation to port development; reinforce the EU strategy for ensuring the full deployment of Motorways of the Sea projects; support EU funding programmes such as the Trans-European Network Transport projects, Marco Polo, etc; facilitate better connection of islands and long-distance intra-EU passenger transport; examine economic instruments (such as taxes, charges or emission trading schemes) for "getting the prices right" encouraging users to make use of short sea shipping alternatives addressing road congestion problems; address the issue of passenger rights for users of ferry and cruise services in Europe.

6) Europe, the world leader in maritime research and innovation : the European maritime industries should capitalise on the significant RTD efforts carried out under successive EU Research Framework Programmes and other activities: (i) come up with new ship designs and equipment to improve safety and environmental performance; (ii) technological development and advanced logistics conceptions which maximise the efficiency of the overall transport chain by means of short sea shipping and inland waterway transport are also required for achieving sustainable mobility; (iii) adequate ICT inspection and monitoring tools, also related to surveillance; (iv) the deployment of ‘e-Maritime’ services at European and global levels.

The Commission's intention is to pursue constructive dialogue with all stakeholders concerned in view of undertaking action for the practical implementation of the measures identified in this strategic review.

PURPOSE: to present the main strategic goals for the European maritime transport system up to 2018 and to identify key areas for action where action by the EU will strengthen the competitiveness of the sector while enhancing its environmental performance.

BACKGROUND: for Europe, shipping and all related maritime industries have been one of the key stepping stones to economic growth and prosperity throughout its history. They are essential in helping the European economy and European companies to compete globally and are an important source of revenues and jobs in Europe. Europe plays a major role in today’s shipping world, with European companies owning 41% of the world’s total fleet (in dwt). 80% of world trade is carried by sea whilst short-sea shipping carries 40% of intra-European freight.

With more than 400 million sea passengers passing through European ports each year, maritime transport has also a direct impact on the quality of life of citizens, both as tourists and inhabitants of islands and peripheral regions.

However, at the end of 2008, the impact of the financial crisis on the real economy is also felt in the shipping sector. An appropriate policy approach is needed in order to ensure the continuous performance of the EU maritime transport system and its contribution to the recovery of the world economy.

CONTENT: this communication is set in the broader context of the EU Transport Policy (‘ Keep Europe moving: a transport policy for sustainable mobility ’) and the EU Integrated Maritime Policy (the ‘ Blue Paper ’). It aims at supporting other relevant policies, namely the EU’s energy and environmental policy. It is the result of continuous dialogue with the experts of the Member States, the independent advice of a group of senior shipping professionals and an analytical study examining trends and signals of change in seaborne transport.

The strategic options presented in this Communication for European shipping and for the European maritime transport system, looking ahead to 2018, represent a vision for achieving these goals. The proposed options are built on an integrated approach to maritime policy and based on the core values of sustainable development, economic growth and open markets in fair competition and high environmental and social standards. The benefits set out in this vision should go beyond the frontiers of Europe and extend to the whole maritime world, including the developing countries.

The main issues of this communication are the following:

1) European Shipping in Globalised markets : European flags continue to face acute competition from the registers of third countries. Often, foreign competitors have significant advantages in terms of government support . In the context of the current economic crisis, other factors such as the risks of overcapacity in certain market segments, protectionist trade measures by third countries, volatility in energy markets or loss of know-how due to the scarcity of skilled human resources in Europe could prompt shipping head offices and maritime industries to relocate overseas, undermining the EU’s efforts to ensure quality shipping around the world.

The conclusions of the Commission’s strategic review exercise are as follows:

to achieve and maintain stable and predictable global competitive conditions for shipping and other maritime industries. This will also ensure the resilience of the European maritime transport sector in the face of economic slowdown; to maintain a clear and competitive EU framework for tonnage taxation, income taxation and state aids at EU level; to act in a determined manner to support fair international maritime trade conditions and access to markets; to work together to achieve a level playing field for maritime transport, by observing internationally agreed rules at global level; that the Commission should take the lead role to promote alignment of the substantive competition rules globally; to concentrate on the question of the delicate balance of the international framework governing the rights and responsibilities of nations as flag on which i ntensified globalisation has put more stress.

2) Human resources, seamanship and maritime know-how : some 70% of shipping-related jobs are knowledge-intensive, high-quality jobs on shore. The growing shortage of maritime professionals entails the risk of losing the critical mass of human resources that sustains the competitiveness of the European maritime industries in general. There is a genuine EU interest in emphasizing the attractiveness of the maritime professions. Community actions should aim, in particular, to:

adopt positive measures facilitating lifelong career prospects in the maritime clusters; enhance the image of shipping and careers at sea, improve awareness of job opportunities, facilitate labour mobility in the maritime industries throughout Europe and encourage best practices in promotion and recruitment campaigns; support the work of the International Maritime Organisation (IMO) and the International Labour Organisation (ILO) on the fair treatment of seafarers; promote better use of information and communication technologies (ICT) for improving quality of life at sea; implement simplification measures to reduce the administrative burden on Masters and senior officers on board ships; provide the appropriate framework for the provision of education and training for crews in the form of measures aimed in particular at: (i) ensuring thorough enforcement of international and Community requirements under the International Convention on Standards of Training, Certification and Watch keeping for Seafarers (STCW) by all nations granting seafarers’ certificates of competence; (ii) promoting cooperation between European maritime training institutions ; (iii) establishing ‘ maritime certificates of excellence’ (European maritime postgraduate courses); (iv) introducing, for the education of officers, an ‘Erasmus’- type model for exchanges between the maritime training institutions of the Member States.

With regard to labour conditions , the first priority of the European Union is to ensure the implementation of the ILO 2006 Maritime Labour Convention (MLC) to improve working and living conditions on board ships. The action of the EU and its Member States should aim to move towards rapid ratification of the 2006 MLC by Member States (see CNS/2006/0103 and RSP/2008/2660 ).

3) Quality shipping as a key competitive advantage : by 2018, the world fleet could count some 100 000 vessels in operation (77 500 vessels in 2008). In terms of volume, the increase would be even more spectacular: its total capacity is expected to reach more than 2 100 million dwt in 2018 (up from 1 156 million dwt in 2008). In this context, the Commission insists on:

Improving the environmental performance : the Commission, Member States and the European maritime industry should work together towards the long-term objective of ‘zero-waste, zero emission’ maritime transport . To that end, the main priorities should be to: (i) ensure steady progress towards a coherent and comprehensive approach to reduce greenhouse gas emissions (GHG) from international shipping; (ii) ensure that Member States are able to achieve "good environmental status" by 2020; (iii) strengthen EU legislation regarding port reception facilities for ship-generated waste and cargo residue; (iv) follow up the proposals detailed in the Commission's Communication on an EU strategy for better ship dismantling; (v) reduce sulphur oxides and nitrogen oxides emissions from ships; (vi) re-launch the Commission’s ‘Quality Shipping Campaign’, by means of partnership agreements with the EU maritime administrations, the maritime industries at large and the users of maritime transport services.

Maritime transport safety : in the years to come, the EU and the Member States should: (i) give priority to the enforcement of existing EU and international rules and the speedy implementation of measures introduced with the 3rd Maritime Safety Package; (ii) revise the mandate and the functioning of the European Maritime Safety Agency, in order to further enhance the technical and scientific assistance it can give to the Member States and the Commission; (iii) reinforce international cooperation with EU trading and shipping partners; (iv) take care to ensure the systematic application of the IMO “Guidelines on the treatment of persons rescued at sea"; (v) ensure that, by 2012 at the latest, all Member States are on the "White List" of the Paris Memorandum of Understanding on Port State Control.

Maritime transport security : very serious concerns about acts of terrorism, piracy and armed robbery at sea persist. A further difficulty relates to incidents involving people smuggling, trafficking and stowaways. The challenge is to complete the work already started in e stablishing a comprehensive framework of security measures based on prevention, reaction capacity and resilience . This should lead to a genuine ‘security culture’ becoming an integral part of quality shipping and port operations, while not compromising unnecessarily the performance of shipping and the quality of life of seafarers and passengers. In that regard, the most urgent priority is to protect seafarers, fishermen and passengers on ships sailing off the coast of Somalia, in the Gulf of Aden or in any other region of the world that could become problematic in the future.

Maritime surveillance : looking ahead to 2018, the capacities of the EU’s maritime transport system should be strengthened by putting in place an integrated information management system to enable the identification, monitoring, tracking and reporting of all vessels at sea and on inland waterways to and from European ports and in transit through or in close proximity to EU waters. In a broader context, building on the resources currently available, such as AIS, LRIT, SafeSeaNet or CleanSeaNet, or those that are being developed, such as Galileo and GMES, the EU should promote the creation of a platform to ensure the convergence of sea-, land- and space-based technologies, the integrity of applications and appropriate management and control of information on a "need-to-know" basis.

EU energy security : m aritime transport is key to Europe's energy security and therefore is an important instrument of the European energy policy. It is to be seen as part of the EU strategy of diversification of routes and of energy sources. 90 % of oil is transported by sea, while there is an increasing trend towards transport of natural gas in a liquefied form by tankers (LNG). Many other energy products are transported by sea as well. As emphasized notably in the Second Strategic Energy Review , LNG facilities are essential for increasing flexibility in gas supplies in the internal energy market, thus enabling solidarity in crisis.

4) Working together on the international scene : the European Union has a longstanding commitment to open and fair competition in shipping and also to quality shipping. The Commission and the Member States are well placed to push for change in order to achieve a comprehensive international regulatory framework for shipping, suited to face the challenges of the 21st century: concerted action at European level is crucial in several fora, for example concerning: governance (UNCLOS), international trade (WTO and bilateral maritime transport dialogues and agreements, UNCITRAL), safety, security and environmental protection (IMO), labour (ILO) or customs (WCO). EU international cooperation efforts should lead to the establishment of a mechanism to ensure actual enforcement of internationally agreed rules by all flag and coastal states in the world .

5) Short-sea shipping : maritime transport in the EU-27 is predicted to grow from 3.8 billion tonnes in 2006 to some 5.3 billion tonnes in 2018. Passenger traffic, including ferries and cruise ships, will also grow. Territorial continuity, regional cohesion and quality standards for sea passengers will have to be ensured. In that regard, the main priorities should be to:

establish a true ‘European maritime transport space without barriers’; implement the measures announced in the Communication on a European Ports Policy ; ensure the right conditions for attracting investment flows to the port sector; generalise fast-track procedures that cut the overall lead time significantly; issue guidelines on the application of relevant Community environmental legislation to port development; reinforce the EU strategy for ensuring the full deployment of Motorways of the Sea projects; support EU funding programmes such as the Trans-European Network Transport projects, Marco Polo, etc; facilitate better connection of islands and long-distance intra-EU passenger transport; examine economic instruments (such as taxes, charges or emission trading schemes) for "getting the prices right" encouraging users to make use of short sea shipping alternatives addressing road congestion problems; address the issue of passenger rights for users of ferry and cruise services in Europe.

6) Europe, the world leader in maritime research and innovation : the European maritime industries should capitalise on the significant RTD efforts carried out under successive EU Research Framework Programmes and other activities: (i) come up with new ship designs and equipment to improve safety and environmental performance; (ii) technological development and advanced logistics conceptions which maximise the efficiency of the overall transport chain by means of short sea shipping and inland waterway transport are also required for achieving sustainable mobility; (iii) adequate ICT inspection and monitoring tools, also related to surveillance; (iv) the deployment of ‘e-Maritime’ services at European and global levels.

The Commission's intention is to pursue constructive dialogue with all stakeholders concerned in view of undertaking action for the practical implementation of the measures identified in this strategic review.