The Commission presents a report on the mid-term evaluation of the Consumer Programme 2014-2020.

The Programme, with an amount of EUR 188.8 million for the years 2014-2020, was established by Regulation (EU) No 254/2014 of the European Parliament and of the Council. It was adopted to support the implementation of the policy priorities set out in the European Consumer Agenda - Boosting Confidence and Growth.

The programme builds on the actions funded under the previous programme covering the period 2007-2013. It ensures a smooth transition and a continuation of the multiannual measures while taking into account the mid-term evaluation of the previous programme’s successes and areas requiring more attention.

The purpose of the mid-term evaluation of the Consumer Programme 2014-2020 is to review the achievement of the objectives of all its measures and the state of play regarding the implementation of the eligible actions set out in the Programme.

This evaluation, which was carried out between October 2017 and April 2018, analyses the allocation of funds to the beneficiaries, the efficiency of the use of resources and the Programme's European added value, taking into consideration developments in the area of consumer protection and other consumer-relevant EU policies, with a view to a decision on the renewal, modification or suspension of the actions.

The actions financed under the Consumer Programme 2014-2020 show a large degree of continuity with the previous programme. They have however been re-organised under four key objectives:

- Specific Objective I - Safety;

- Specific Objective II - Consumer information and education, and support to consumer organisations;

- Specific Objective III - Rights and redress;

- Specific Objective IV - Enforcement.

Overall findings

In general, the objectives and priorities of the Consumer Programme are assessed as being still fully relevant and should be continued. Additional priorities could be given to sustainable consumption, to activities that contribute to a uniform and high level of consumer protection throughout the EU, including the support of consumer organisations in their role as consumer watchdogs, separately or jointly with the Member States.

The activities implemented under the Programme have been largely effective in consolidating and enhancing product safety through market surveillance in the EU. The different actions within the Consumer Programme 2014-2020 are coherent and work together.

The EU added value of the Consumer Programme 2014–2040 is overall high. Discontinuation of EU level support would risk resulting in continued wide discrepancies in consumer representation, education and information and to negative perceptions of the EU.

Conclusion and way forward

The report concluded that the Consumer Programme is playing a crucial role in underpinning the EU's Consumer Policy and delivering on concrete actions that are to the benefits of European consumers and concerned stakeholders. This report on the mid-term evaluation of the 2014-2020 Consumer Programme confirms its importance in helping to ensure a high and consistent level of consumer protection across the European Union and to empower consumers as key actors of the Single Market.

With consumer issues becoming increasingly cross-border or even of EU-wide nature, the Programme is also showing its added value through financing actions that ensure a coherent and consistent protection of all European consumers. As changes affecting the EU economy intensify, notably in the face of a growing digitalisation of the market place, the next EU programme in the field of consumer policy will have to become increasingly more agile and able to respond to rapid changes. These findings have been taken into consideration in the framework of the preparation of the next multiannual financial framework (MFF) and the future EU funding programmes.

PURPOSE : to establish a “Consumer” Programme for the period 2014-2020.

LEGISLATIVE ACT: Regulation (EU) No 254/2014 of the European Parliament and of the Council on a multiannual consumer programme for the years 2014-20 and repealing Decision No 1926/2006/EC.

CONTENT: within the framework of the new programming period 2014-2020, the European Parliament and the Council established a mulitannual programme pluriannuel entitled “Consumers”.

General objective : the general objective of the Programme is to ensure a high level of consumer protection, to empower consumers and to place the consumer at the heart of the internal market, within the framework of an overall strategy for smart, sustainable and inclusive growth.

The Programme will do so by contributing to:

· protecting the health, safety and the legal and economic interests of consumers;

· promoting their right to information, education and to organise themselves in order to safeguard their interests, and supporting the integration of consumer interests into other policy areas.

The Programme shall complement and monitor the policies of Member States.

Content of actions by objective : the Regulation outlines the scope of the action by specific objective. These objectives would be the following:

· Objective 1 — Safety to consolidate and enhance product safety through effective market surveillance throughout the Union;

· Objective 2 — Consumer information and education and support to consumer organisations , including taking into account the specific needs of vulnerable consumers ;

· Objective 3 — Rights and redress through smart regulatory action and improving access to simple, efficient, expedient and low-cost redress (including alternative dispute resolution);

· Objective 4 — Enforcement by strengthening cooperation between national enforcement bodies and by supporting consumers with advice.

The realisation of each of these objectives shall be measured by means of the indicator outlined in the Regulation (Annex II). The scope of the actions themselves is outlined in Annex I of the Regulation.

Financial envelope : the financial envelope for the implementation of the Programme shall be EUR 188 829 000 from 2014 to 2020.

Grants : the Regulation provides guidance on the type of organisations or authorities that can receive EU aid, in particular, consumer orgnisations active at the EU-level as described in the Regulation as well as international organisations that promote principles and policies compatible with the objectives of the Programme (notably non-profit-making organisations). Equally eligible for grants under the Programme are Union-wide bodies for the development of codes of conduct, best practices and guidelines for price comparison, product quality and sustainability .

Ceilings for some grants : the Regulation fixes a maximum ceiling for some grants and clarifies the scope of particular actions such as exceptional utility .

It otherwise caps at 12% t he amount allocated to cover the expenses pertaining to preparatory, monitoring, control, audit and evaluation activities as well as technical and administrative assistance within the Programme.

Methods of implementation : the Commission shall be responsible for implementing the Programme by annual work programmes in the form of implementing acts adopted in accordance with the advisory procedure. The annual work programmes will cover the actions to be undertaken, including indicative allocation of financial resources and the time schedule of the planned calls for tenders and calls for proposals.

Participation of third countries : the programme is open to the participation of third countries subject to the terms outlined in the Regulation.

Consistency and complementarity with other policies : the Commission shall, in cooperation with the Member States, ensure overall consistency and complementarity between the Programme and other relevant policies, instruments and actions of the Union.

Evaluation and dissemination : the Commission should produce, by 30 September 2017, an evaluation report reviewing the achievement of the objectives of all the measures (at the level of results and impacts) and the state of play regarding the implementation of the eligible actions.

For the purposes of taking into account the situation whereby the evaluation report concludes that the specific actions set out in Annex I have not been implemented by 31 December 2016 and cannot be implemented by the end of the Programme, the Commission shall be empowered to adopt delegated acts to amend Annex I by removing the specific actions concerned . If necessary, and no later than 31 December 2017, the Commission should present a legislative proposal or adopt a delegated act according to the methods set out in the Regulation.

Annexes : Annex I of the Regulation outlines the types of actions eligible for the implementation of the Programme; an Annex II lists the indicators intended to measure the effectiveness of the implementation of the actions.

Repeal : Decision No 1926/2006/EC is repealed with effect from 1 January 2014.

ENTRY INTO FORCE: 21.03.2014. The Regulation shall apply from 1 January 2014 .

DELEGATED ACTS: the Commission may adopt delegated acts as regards the adaptation of indicators (Annex II) as well as those concerning the amendment of Annex I by the deletion of certain actions in line with the results of an evaluation report produced by the Commission. The European Parliament or the Council may raise objections in regard to a delegated act within two months of notification of that act (this period may be extended by two months). If the European Parliament or the Council make objections, the delegated act will not enter into force.

The European Parliament adopted by 630 votes to 42, with 12 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council on a “Consumer” Programme 2014-2020.

Parliament adopted its position in first reading following the ordinary legislative procedure. The amendments adopted in plenary are the result of an agreement between Parliament and Council. They amend the proposal as follows:

General objective : the general objective of the Programme is to ensure a high level of consumer protection, to empower consumers and to place the consumer at the heart of the internal market, within the framework of an overall strategy for smart, sustainable and inclusive growth.

The Programme will do so by contributing to:

protecting the health, safety and the legal and economic interests of consumers, promoting their right to information, education and to organise themselves in order to safeguard their interests, and supporting the integration of consumer interests into other policy areas.

Budget : the financial envelope for the implementation of the Programme for the period from 1 January 2014 to 31 December 2020 shall be EUR 188 829 000 .

The resolution proposes to set a ceiling of 12% of the total amount allocated to cover the expenses pertaining to preparatory, monitoring, control, audit and evaluation activities and for technical and administrative assistance.

Content of eligible actions, by objective : amendments have been made to the main objectives of the programme:

Objective II : Consumer information and education, and support to consumer organisations : The actions should seek to: (i) build and improve access to the evidence base for policy-making in areas affecting consumers, for designing smart and targeted regulations and for detecting any market malfunctioning or changes in consumers' needs, providing a basis for the development of consumer policy, for the identification of the areas most problematic for consumers and for the integration of consumer interests into other Union policies; (ii) support through f inancing of Union-level consumer organisations and through capacity building for consumer organisations at Union, national and regional level; (iii) enhance the transparency of consumer markets and consumer information, ensuring consumers have comparable, reliable and easily accessible data ; (iv) enhance consumer education as a life-long process with a particular focus on vulnerable consumers. Objective III: Rights and redress : the aim here is to facilitate access to dispute resolution mechanisms for consumers, in particular to alternative dispute resolution schemes, including through a Union-wide online system and the networking of national alternative dispute resolution entities, paying specific attention to adequate measures for vulnerable consumers' needs and rights .

Grants : additional clarifications have been made to define the categories of potential beneficiaries eligible for grants. Grants should be awarded:

to national authorities of the Member State holding the Presidency of Council configurations, other than that of Foreign Affairs or to bodies designated by that Member State for the organisation of Presidency events concerning consumer policy of the Union; for action to Member States' authorities responsible for consumer affairs and to corresponding authorities of third countries to authorities notified to the Commission, or to non-profit-making bodies expressly designated by those authorities for that purpose; for action to a body designated by a Member State or a third country which is a non-profit-making body selected through a transparent procedure or a public body . The designated body shall be part of a Union network.

Ceilings of certain grants : amendments have been made to the ceilings of some grants as well as clarifications on the scope of actions considered as of exceptional utility .

Adoption of the annual report : in order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission in respect of the adoption of annual work programmes. Given that the Programme does not set out criteria for the safety of products but aims at providing financial support to tools for the implementation of product safety policy, and given the relatively small amount concerned, it is appropriate that the advisory procedure apply .

Delegated acts : the power to adopt acts should be delegated to the Commission in respect of the adaptation of the indicators set out in Annex II in order to take into account changes in the legislative framework in the area of consumer protection, and in respect of amending Annex I by removing specific actions concerned in order to take into account the results of an evaluation report by the Commission.

Evaluation and dissemination : the Commission should by 30 September 2017 review the achievement of the objectives of all the measures (at the level of results and impacts), the state of play regarding the implementation of the eligible actions. The report should be submitted to the European Parliament and the Council.

For the purposes of taking into account the situation whereby the evaluation report concludes that the specific actions set out in Annex I have not been implemented by 31 December 2016 and cannot be implemented by the end of the Programme, including when those specific actions are no longer relevant for the achievement of the objectives, the Commission shall be empowered to adopt delegated acts to amend Annex I by removing the specific actions concerned . By 31 December 2017, if appropriate, the Commission shall submit a legislative proposal or, subject to the conditions laid down in the proposal, adopt a delegated act.

The Committee on the Internal Market and Consumer Protection adopted the report by Robert ROCHEFORT (ADLE, FR) on the proposal for a regulation of the European Parliament and of the Council on a “Consumer” Programme 2014-2020.

The committee recommends that the position of the European Parliament adopted in first reading, following the ordinary legislative procedure, should amend the Commission proposal as follows:

Commission proposal : Members feel that the Programme should support the ambitions of Europe 2020 by integrating concerns on the digital environment, more sustainable patterns of consumption, by taking into account the specific situation of vulnerable consumers and the needs of an ageing population.

They suggest also that the text should refer to the Commission Communication of 22 May 2012 entitled 'A European Consumer Agenda - Boosting confidence and growth' which sets out a strategic framework for Union consumer policy in the years to come.

Budget: the report states that the financial envelope specified in the legislative proposal constitutes only an indication to the legislative authority and cannot be fixed until agreement is reached on the proposal for a regulation laying down the MFF for the years 2014-2020. Members stress, however, that the proposed total budget of the consumer programme 2014-2020, amounting to EUR 197 million (at current prices) is modest , whilst EUR 20.65 million for administrative expenditure is high.

The report proposes to set a ceiling of 10.5% of the total amount allocated to cover the expenses pertaining to preparatory, monitoring, control, audit and evaluation activities and for technical and administrative assistance. It also emphasises that the co-legislators should give political guidance regarding the breakdown of spending among the specific objectives

Content of eligible actions, by objective :

Objective 1 - Safety: actions must aim, amongst other things, at: i) improvement of product traceability and enhancing access to information concerning dangerous products; (ii) improving access to the evidence base for policy-making in areas affecting consumers; (iii) ensure that this base is used for designing new regulations and for detecting any market malfunctioning or changes in consumers’ needs.

This objective will be measured in particular through the activity and effectiveness of the EU rapid alert system for dangerous consumer products (RAPEX).

Objective 2: Members consider that the importance of support for consumer organisations is such that it forms an objective in itself, and they propose to clarify the distinction between this objective and the consumer information and education objectives.

Eligible actions must aim, amongst other things, at: (i) capacity building for consumer organisations at Union, national and regional level; (ii) providing consumers with comparable, reliable and easily accessible data including for cross-border cases, to help them compare not only prices, but also quality and sustainability of goods and services; (iii) enhancing consumer and business education as a life-long process, with a particular focus on vulnerable consumers .

Objective 3 – Rights and redress: it is necessary to develop and reinforce consumer rights in particular through smart regulatory action and improving access to simple, efficient, expedient, and low-cost individual and, where appropriate, collective redress.

In view of the age of the Consumer Protection Network (CPC), Members feel that qualitative information should be added to make the criteria more precise. Furthermore, it is proposed to measure, in particular through the level of information flow and the effectiveness of cooperation within the CPC Network , how well known it is and how its public profile changes.

Eligible actions should aim to: (i) support the Regulation on alternative dispute resolution ('ADR') as well as the creation of an electronic, Union-wide platform; (ii) facilitating access to individual and, where appropriate, collective dispute resolution mechanisms; (iii) monitoring of the functioning and the effectiveness of dispute resolution mechanisms for consumers.

Objective 4 - Enforcement: Members suggest that this should be pursued through financial contributions for joint actions and signature of partnership agreements with public or non-profit bodies constituting Union networks, which provide information and assistance to consumers.

High-quality consumer information and participation is a cross-sectoral priority and shall be expressly provided for in all sectoral objectives and actions financed under the Programme.

Implementation of the Programme : given that the adoption of annual work programmes engenders policy choices to clarify and then add to the priorities and actions to be carried out, including the allocation of financial resources, laid down in the basic legislative act, Members propose the delegation of power to the Commission for the adoption of the annual work programmes as well as for adding to the list of actions in Annex I.

The Council reached an agreement on a partial general approach concerning the EU's consumer programme for the 2014-2020 period.

The European Parliament is expected to vote on its first-reading opinion at a plenary session further into this year.

The new programme will be the successor to the 2007-2013 programme in the field of consumer policy. It aims to ensure a high level of consumer protection, to empower consumers and to place the consumer at the heart of the internal market.

The programme will contribute:

to the protection of the health, safety, legal and economic interests of consumers, to the promotion of their right to information, education, to organise themselves to safeguard their interests. It will complement national consumer policies of the member states.

The Commission proposed to allocate EUR 175 million to the consumer programme for the period 2014-2020. The final financial envelope for the implementation of the programme will be decided in the context of the overall EU budget for the next cycle of financial perspectives.

The Council took note of presentations by the Commission on the following subjects:

Consumer Programme for the period 2014-2020: last November the Commission submitted a proposal for a draft regulation on a consumer programme for 2014-2020. The new consumer programme, with a proposed budget of EUR 175 million, will replace the 2007-2013 programme in the field of consumer policy.

The Commission presented a summary of the sixth edition of the scoreboard "Making markets work for consumers", which was published last October.

Started in 2008, the Consumer Market Scoreboard is the Commission’s main tool for identifying potentially underperforming sectors in the single market.

The majority of the scoreboard data is supplied by a survey of 51 consumer markets, accounting for more than 60% of the household budget (housing, education and most medical products and services are not covered).

PURPOSE: to establish a Consumer Programme for the period 2014-2020.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

BACKGROUND: it has become more and more apparent that consumer policy is one area which can make a telling contribution to meeting the Europe 2020 objectives. In Europe there are 500 million consumers and consumer expenditure amounts to 56% of EU GDP. The more consumers are able to make informed decisions, the greater the impact they can have on strengthening the Single Market and stimulating growth.

However, empowerment is not only a question of consumer rights but of building an overall environment that enables consumers to make use of those rights and benefit from them.

The Communication 'A budget for Europe 2020' of 29 June 2011 allocated funds to the Consumer Programme for the period 2014-2020, and this proposal aims at establishing a Consumer Programme for the period 2014-2020, as a successor to the 2007-2013 Programme of Community Action in the field of consumer policy.

The new Consumer Programme will support the general objective of future consumer policy placing the empowered consumer at the centre of the Single Market.

The actions under the new Programme are grouped in the following four categories:

· to consolidate and enhance product Safety through effective market surveillance throughout the EU;

· to improve consumers' education, information and awareness of their rights, to develop the evidence base for consumer policy and to provide support to consumer organisations;

· to consolidate consumer rights in particular through regulatory action and improving access to redress including alternative dispute resolution;

· to support enforcement of consumer rights by strengthening cooperation between national enforcement bodies and by supporting consumers with advice.

IMPACT ASSESSMENT : the impact assessment considered four options:

· Option 0 corresponds to the absolute minimum actions to be financed resulting from the legal obligations imposed by the Treaty and the existing EU acquis in the field of consumer protection.

· Option 1 corresponds to the baseline scenario . Under this option, the majority of actions conducted under the 2007-2013 Programme are pursued, with some adaptation. Some actions are substantially reduced or no longer implemented because they are no longer relevant, while some new actions are launched with a limited level of ambition (for instance on redress). It corresponds to a budget equal to or lower than the one provided under the current Programme.

· Option 2 corresponds to a more ambitious approach in line with Commission priorities (Europe 2020, Single Market Act) and the on-going reflection on the future of consumer policy. The budget under this option is around EUR 25 millions annually.

· Option 3 would require a budget increase compared to the current Programme for some additional actions such as the development of a public consumer product safety Database, and in matters of redress: setting up a fund to support the financing of cross-border redress actions.

The impact assessment has concluded that option 2 is the best option from a cost/benefit point of view.

LEGAL BASIS: Article 169 TFUE.

CONTENT : the aim of the Consumer Programme is to contribute to protecting the health, safety and economic interests of consumers, as well as to promote their right to information, education and to organise themselves in order to safeguard their interests. The Programme will complement, support and monitor the policies of Member States.

The actions will support the following four specific objectives:

Objective 1 - safety : to consolidate and enhance product safety through effective market surveillance throughout the Union. This objective will be measured in particular through the activity of the EU rapid alert system for dangerous consumer products (RAPEX).

Objective 2 - information and education : to improve consumers' education, information and awareness of their rights, to develop the evidence base for consumer policy and to provide support to consumer organisations.

Objective 3 - rights and redress : to consolidate consumer rights in particular through regulatory action and improving access to redress including alternative dispute resolution. This objective will be measured in particular through the recourse to alternative dispute resolution to solve cross-border disputes and through the activity of a Unionwide on-line dispute resolution system.

Objective 4 - enforcement : to support enforcement of consumer rights by strengthening cooperation between national enforcement bodies and by supporting consumers with advice. This objective will be measured in particular through the level of information flow and cooperation within the Consumer Protection Cooperation Network and the activity of the European Consumer Centres.

The description of the indicators is provided in Annex II , and the Commission will be empowered to adopt delegated acts to modify the indicators.

Eligible actions : the proposal sets out the selected areas for actions which are of three kinds:

Actions corresponding to legal obligations imposed by the Treaty and the existing EU acquis in the field of consumer protection on the EU and Member States. This involves financing the maintenance and proper functioning of the RAPEX Network, of the CPC Network of enforcement authorities and of the cosmetics databases.

Actions which are not or could not be undertaken at national level because of their EU-level character:

· assisting consumers on cross-border issues by co-financing the operation of the Network of European Consumer Centres (ECCs) and by supporting the development of a Union-wide on-line dispute resolution system dealing also with cross-border cases;

· developing cooperation with international partners to deal with the impact of the globalisation of the production chain on product safety;

· supporting the production of EU-level comparable consumer markets data for benchmarking between Member States and input into EU-level policy-making;

· ensuring EU-level representation of consumer interests by financially supporting EU-level consumer organisations.

Actions complementing and enhancing the efficiency of measures undertaken at national level:

· coordination and co-financing of joint actions in the field of product safety and of consumer rights enforcement;

· supporting awareness-raising campaigns on consumer issues with Member States and other stakeholders and working with intermediaries to contribute to the provisions of clear, transparent and reliable information to consumers;

· supporting the training of national consumer organisations, which would be much more costly at national level without economy of scale;

· providing a platform for exchange and sharing of good practices in the field of consumer education.

A more detailed description of the content that those actions may have is included in Annex I.

Participation of third countries in the Programme : participation in the Programme shall be open to the participation of:

· the countries of the European Free Trade Associations participating in the European Economic Area;

· third countries, in particular acceding and candidate countries as well as potential candidates, and countries to which the European Neighbourhood Policy applies.

Types of intervention and maximum level of co-financing : financial contributions by the Union may take the form of either grants or public procurement. The proposal describes in detail the types of intervention in relation to eligible actions. Grants for the functioning of consumer organisations at Union level may be awarded to European consumer organisations, which comply with certain conditions set out in the proposal as well as grants for eligible actions.

Financial framework and co-financing : the financial envelope for the implementation of the Programme shall be EUR 197,000,000 from 2014 to 2020. The rate of co-financing depends on the type of action being financed, Grants for functioning range from 50% to 95% of eligible costs in certain cases. Grants for action range from 50% to 70% of eligible costs.

Administrative and technical assistance : the financial allocation for the Programme may also cover expenses pertaining to preparatory, monitoring, control, audit and evaluation activities which are required for the management of the programme and the achievement of its objectives; in particular, studies, meetings of experts, information and communication actions, including corporate communication of the political priorities of the Union, expenses linked to IT networks focusing on information processing and exchange, together with all other technical and administrative assistance expenses incurred by the Commission for the management of the Programme.

Methods of implementation : the Commission shall implement the Programme. In order to ensure uniform conditions for the implementation of this Regulation, implementing powers will be conferred on the Commission in respect of the adoption of annual work programmes. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.

Consistency and complementarity with other policies: the Commission shall, in cooperation with the Member States, ensure overall consistency and complementarity between the Programme and other relevant Union policies, instruments and actions.

Evaluation and dissemination of results : standard clauses for monitoring, control, dissemination and anti-fraud measures are inserted in the proposal.

Report: no later then mid-2018, an evaluation report shall be established by the Commission on the achievement of the objectives of all the measures (at the level of results and impacts), the efficiency of the use of resources and its European added value, in view of a decision on the renewal, modification or suspension of the measures.

Repeal: Decision No 1926/2006/EC of the European Parliament and of the Council is repealed from 1 January 2014.

BUDGETARY IMPLICATIONS: the financial appropriations for implementing the Programme over the period from 1 January 2014 to 31 December 2020 will amount to EUR 197 millions in current prices.

DELEGATED ACTS: in order to amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU is delegated to the Commission in respect of the adaptation of the indicators set out in Annex II. The Commission, when preparing and drawing up delegated acts, should ensure simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and Council.