PURPOSE : to establish a new partnership with Greenland and Denmark (which ensures the sovereignty).

LEGISLATIVE ACT: Council Decision 2014/137/EU on relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other.

BACKGROUND: the Joint Declaration of the EU-Greenland- Denmark adopted the common objectives of a new partnership and formed the policy foundation to the Council Decision 2006/526/EC , which set out the cooperation framework between the parties for the period 2007-2013. The partnership established by Council Decision 2006/526/EC expired on 31 December 2013.

The Union needs to build comprehensive partnerships with new actors on the international scene in order to promote a stable and inclusive international order, to pursue common global public goals and to defend core Union interests, as well as to increase knowledge of the Union in third countries and overseas countries and territories (OCTs).

In this context, the partnership pursuant to this Decision should allow for the continuation of strong relations between the Union on the one hand, and Greenland and Denmark on the other, and should respond to global challenges, allowing for the development of a proactive agenda and the pursuit of mutual interests.

CONTENT: the Decision sets the rules relating to relations between the Union on the one hand, and Greenland and Denmark on the other.

The objective of this partnership is to preserve the existing close and lasting links between the Union and Greenland to be maintained while supporting the development needs of Greenland.

It acknowledges in particular the geostrategic position of Greenland in the Arctic Region, the issues of exploration and exploitation of natural resources, including raw materials, and ensures enhanced cooperation and policy dialogue on those issues.

General principles of the partnership : the partnership shall, in particular, define the framework for policy dialogue on issues of common interest for either partner, providing the basis for broad cooperation and dialogue in areas such as:

global issues concerning , inter alia, energy, climate change and environment, natural resources, including raw materials, maritime transport, research and innovation; and Arctic issues .

The partnership should be implemented in coherence with other areas of the Union's external action as well as with other relevant Union policies. To this end, measures financed under this Decision shall be programmed on the basis of the Union's cooperation policies set out, inter alia, in agreements, declarations and action plans, and in accordance with the relevant cooperation strategies . Cooperation activities shall be decided upon in close consultation between the Government of Greenland, the Government of Denmark and the Commission.

Specific objectives and main areas of cooperation : these can be summarised as follows:

1. to support Greenland in addressing its major challenges, in particular, the sustainable diversification of the economy, the need to increase the skills of its labour force, including scientists, and the need to improve its information systems in the field of Information and Communication Technologies, and to cooperate with it to that end;

2. to contribute to the capacity of the administration of Greenland to formulate and implement national policies, in particular, in new areas of mutual interest as identified in the Programming Document for the Sustainable Development.

The implementation of these objectives shall be measured by the indicators defined in the Decision.

The main areas of cooperation of the partnership are notably the following :

education and training, tourism and culture; natural resources, including raw materials energy, climate, environment and biodiversity; Arctic issues; the social sector, mobility of the workforce, social protection systems, food safety and food security issues; and research and innovation in areas such as energy, climate change, disaster resilience, natural resources, including raw materials, and sustainable use of living resources .

Financial envelope : in the line with the Regulation fixing the multiannual financial framework for the period 2014-2020 t he indicative amount for the implementation of this Decision for the period from 2014 to 2020 is EUR 217 800 000 .

Union financial assistance may be given to the following activities :

reforms and projects that are in line with the Programming Document for the Sustainable Development of Greenland (the ‘PDSD’); institutional development, capacity building and integration of environmental and climate change aspects; and technical cooperation programmes.

Union financial assistance shall be provided mainly through budget support .

PDSD : within the framework of the partnership, the Government of Greenland is responsible for the formulation and adoption of sector policies in the main areas of cooperation referred to before. On that basis, the Government of Greenland shall prepare and submit an indicative Programming Document for the Sustainable Development of Greenland (the ‘PDSD’) to provide a coherent framework for the cooperation between the Union and Greenland, that is consistent with the overall purpose and scope, objectives, principles and policies of the Union.

There are provisions to set the framework for the development and implementation of the PDSD, based on consultations and dialogue with civil society, local authorities and other relevant stakeholders.

The PDSD should in addition be adapted to the needs and respond to the specific circumstances of Greenland, including climate change impacts and socio-economic development.

Governance : the Government of Greenland would be responsible for finalising the PDSD which should be approved in accordance with the examination procedure. Specific measures are provided for the adoption of amendments. This procedure also applies to substantial reviews that do not substantially affect the PDSD.

Implementation rules : the Union aid would be implemented under the common rules of the implementation of the EU external policy programmes and the PIC .

Mid-term review of the PDSD and evaluation of the implementation of this Decision : b y 31 December 2017, the Commission, the Government of Greenland, the Government of Denmark should undertake a mid-term review of the PDSD and its impact on Greenland as a whole. By 30 June 2018, a report should be drawn up by the Commission on the achievement of the objectives and the European added value of this Decision, by means of results and impact indicators on the efficiency of the use of resources, with a view to adopting a decision on the renewal, modification or suspension of the types of measures financed under this Decision.

ENTRY INTO FORCE: 16.03.2014. The Decision applies from 1 January 2014 to 31 December 2020.

The European Parliament adopted by 617 votes to 13, with 14 abstentions - in the framework of a special legislative procedure (Parliament consultation) - a legislative resolution on the draft Council decision on relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other.

Parliament approved the proposed decision subject to the following amendments:

Programming Document : Parliament called on Greenland should prepare and submit a Programming Document for the Sustainable Development of Greenland. That document should be prepared, implemented and assessed on the basis of a transparent and participative approach.

Exploitation of natural resources : any cooperation in the area of exploration, extraction and exploitation of Greenland natural resources, in particular minerals, oil and gas, should observe the highest safety, social and environmental standards and strict environmental management criteria in order to guarantee a sustainable use of resources and preserve the valuable though fragile ecosystem of the Arctic.

Dialogue and implementing actions : enhanced cooperation and policy dialogue on issues of common interest to both parties should include the following: (i) biodiversity; (ii) the participation of the European Union as a permanent observer in the Arctic Council. Parliament also added climate change and research in the mining sector.

Financial assistance in the area of education and training : should Greenland decide to include in the PDSD a request for the Union's financial assistance in the area of education and training, such assistance shall duly take into account the need to contribute to Greenland's efforts to strengthen capacity building in that area and to provide technical support.

Social partners : the PDSD should be based on consultations and dialogue with the Greenlandic civil society, social partners , Parliament, local authorities and other stakeholders and shall draw on lessons learned and best practices, to ensure sufficient ownership of the PDSD.

Delegated acts : Parliament called for the Commission to be empowered to adopt delegated acts to approve the programming documents and financing measures necessary for the implementation of this Decision . Consequently, all the articles concerning the committee procedure have been deleted.

Financial envelope : lastly, Parliament confirmed the continuation of the EU's financial commitment towards Greenland. The indicative amount for the implementation of this Decision for the period from 2014 to 2020 shall therefore be EUR 217.8 million .

The Committee on Development unanimously adopted the report by Ricardo CORTÉS LASTRA (S&D, ES), in the framework of a special legislative procedure (European Parliament consultation), approving subject to amendments, the draft Council decision on relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other.

Programming Document: Greenland should prepare and submit a Programming Document for the Sustainable Development of Greenland (PDSD) on the basis of a transparent and participative approach.

Exploitation of natural resources : any cooperation in the area of exploration, extraction and exploitation of Greenland natural resources, in particular minerals, oil and gas, should observe the highest safety, social and environmental standards and strict environmental management criteria in order to guarantee a sustainable use of resources and preserve the valuable though fragile ecosystem of the Arctic.

Policy dialogue on the objectives and areas of cooperation : broad cooperation and dialogue should exist in the following areas added by Members: (i) biodiversity; (ii) the participation of the European Union as a permanent observer in the Arctic Council. Members also stated the need to increase the skills of its labour force, including in the area of mining and science.

Financial assistance in the area of education and training : should Greenland decide to include in the PDSD a request for the Union's financial assistance in the area of education and training, such assistance shall duly take into account the need to contribute to Greenland's efforts to strengthen capacity building in thatarea and to provide technical support.

Delegated acts : lastly, Members called for the Commission to be empowered to adopt delegated acts to approve the programming documents and financing measures necessary for the implementation of this Decision . Consequently, all the articles concerning the committee procedure have been deleted.

The Council presented a revised draft Council Decision on relations between the European Union on the one hand, and Greenland and Denmark on the other.

Overall, the proposed text remains the same as the initial proposal presented by the Commission.

The new proposal contains however a series of new provisions which may be summarised as follows:

Programming : it is stated that the Programming Document for the Sustainable Development (PDSD) should be based on consultations and dialogue with civil society , local authorities and other stakeholders and should draw on lessons learned and best practices, to ensure sufficient ownership of the PDSD. It should be adapted to the needs and respond to the specific circumstances of Greenland, including climate change impacts and socio-economic development. It should be the subject of an exchange of views between the Government of Greenland, the Government of Denmark and the Commission.

The Government of Greenland should be responsible for finalising the PDSD . Upon finalisation, the European Commission shall appraise the PDSD.

Scope of financing : within the framework of the sector policies established by the Government of Greenland, financial support may be given to the following activities:

reforms and projects that are in line with the PDSD; institutional development, capacity building and integration of environmental and climate change aspects; technical cooperation programmes.

N.B. as in the initial proposal, the Union's financial assistance shall be provided mainly through budget support.

Implementing rules : common rules and procedures for the implementation of the Union's instruments for external action should apply to the implementation of this Decision as appropriate.

Procurement rules : the rules on nationality and origin for public procurement, grant and other award procedures of the Common Implementation Regulation, applicable to the Development Cooperation Instrument (DCI), should apply.

Mid-term Review of the PDSD and evaluation of the implementation of this Decision : by 31 December 2017, the European Commission, the Government of Greenland and the Government of Denmark should undertake a mid-term review of the PDSD and its' impact on Greenland as a whole. No later than mid-2018, a report shall be established by the Commission on the achievement of the objectives and the European added value of this Decision, by means of results and impact indicators on the efficiency of the use of resources, in view of a decision on the renewal, modification or suspension of the types of measures financed under this Decision.

Decision procedure : the revised proposal details the procedure to be followed as regards the adoption of the decisions relating to the implementation of assistance. The new proposal no longer includes provisions as regards the delegation of powers to the Commission, as was the case in the initial proposal. The Decision should be adopted in accordance with Regulation No 182/2011 laying down the rules and general principles concerning the mechanisms of control by Member States of the Commission’s exercise of implementing powers. Taking into account the nature of those implementing acts, in particular their policy orientation nature or their financial implications, the examination procedure should in principle be used for their adoption, except for technical implementing measures of a small financial scale.

The Council presented a revised draft Council Decision on relations between the European Union on the one hand, and Greenland and Denmark on the other.

Overall, the proposed text remains the same as the initial proposal presented by the Commission.

The new proposal contains however a series of new provisions which may be summarised as follows:

Programming : it is stated that the Programming Document for the Sustainable Development (PDSD) should be based on consultations and dialogue with civil society , local authorities and other stakeholders and should draw on lessons learned and best practices, to ensure sufficient ownership of the PDSD. It should be adapted to the needs and respond to the specific circumstances of Greenland, including climate change impacts and socio-economic development. It should be the subject of an exchange of views between the Government of Greenland, the Government of Denmark and the Commission.

The Government of Greenland should be responsible for finalising the PDSD . Upon finalisation, the European Commission shall appraise the PDSD.

Scope of financing : within the framework of the sector policies established by the Government of Greenland, financial support may be given to the following activities:

reforms and projects that are in line with the PDSD; institutional development, capacity building and integration of environmental and climate change aspects; technical cooperation programmes.

N.B. as in the initial proposal, the Union's financial assistance shall be provided mainly through budget support.

Implementing rules : common rules and procedures for the implementation of the Union's instruments for external action should apply to the implementation of this Decision as appropriate.

Procurement rules : the rules on nationality and origin for public procurement, grant and other award procedures of the Common Implementation Regulation, applicable to the Development Cooperation Instrument (DCI), should apply.

Mid-term Review of the PDSD and evaluation of the implementation of this Decision : by 31 December 2017, the European Commission, the Government of Greenland and the Government of Denmark should undertake a mid-term review of the PDSD and its' impact on Greenland as a whole. No later than mid-2018, a report shall be established by the Commission on the achievement of the objectives and the European added value of this Decision, by means of results and impact indicators on the efficiency of the use of resources, in view of a decision on the renewal, modification or suspension of the types of measures financed under this Decision.

Decision procedure : the revised proposal details the procedure to be followed as regards the adoption of the decisions relating to the implementation of assistance. The new proposal no longer includes provisions as regards the delegation of powers to the Commission, as was the case in the initial proposal. The Decision should be adopted in accordance with Regulation No 182/2011 laying down the rules and general principles concerning the mechanisms of control by Member States of the Commission’s exercise of implementing powers. Taking into account the nature of those implementing acts, in particular their policy orientation nature or their financial implications, the examination procedure should in principle be used for their adoption, except for technical implementing measures of a small financial scale.

PURPOSE: to establish a new partnership with Greenland and Denmark (which has sovereignty over Greenland).

PROPOSED ACT: Council Decision.

BACKGROUND: prior to 1982, Greenland was considered as a part of the European Union (EU) through Denmark, allowing for EU vessels to fish in Greenlandic waters. In 1982, Greenland withdrew from the EU, and became associated as an Overseas Country and Territory (OCT) through the Greenland Treaty . The treaty emphasised the need to maintain the close relations between the EU and Greenland, notably the development needs of Greenland and fishing rights of the EU.

A fisheries agreement was signed on 13 March 1984. Following the Mid-Term Review of the Fourth Fisheries Protocol, the European Council (2003) concluded that an arrangement should take into account the importance of fisheries and the structural development problems in Greenland. The Joint Declaration between the EU, Greenland and Denmark, defined the common objectives of a new partnership and was the political basis for the Council Decision 2006/526/EC, which defined the framework for cooperation between the parties for the period 2007-2013. The partnership defined in Council Decision 2006/526/EC expires on 31 December 2013 .

Without prejudice to the existing EU/Greenland Fisheries Partnership Agreement, the increased geo-strategic importance of Greenland, and the importance of the Arctic region for the EU and its climate induced increased accessibility, as well as the structural weaknesses of Greenland, justifies a new instrument in order to respond to these developments.

IMPACT ASSESSMENT: in the context of the Impact Assessment undertaken for the purpose of this new partnership, three options were considered:

Option 1 : no partnership with Greenland; Option 2 : maintaining the status quo; Option 3 : a revised partnership that takes account of the geo-strategic importance of Greenland in the context of global issues, such as global warming, natural resources, including raw materials, and the emerging international awareness towards Greenland, while allowing for the EU to fully project its interests and policies abroad.

This proposal builds on the third option.

LEGAL BASIS: Article 203 of the Treaty for the Functioning of the European Union. Articles 198-204 of the Treaty on the Functioning of the European Union (TFEU) apply to Greenland, subject to the specific provisions set out in the Protocol on special arrangements for Greenland annexed to the TFEU (Protocol No 34).

CONTENT: the partnership between the European Union, Greenland and Denmark shall facilitate consultations and policy dialogue on the objectives and areas of cooperation established through this Decision. In particular, the partnership shall define the framework for policy dialogue on issues of common interest for either partner, providing the basis for broad cooperation and dialogue in areas such as:

global issues such as energy, climate change and environment, natural resources, including raw materials and excluding fisheries products, maritime transport, research and innovation. Arctic issues , within areas of interest to the European Union.

The specific objectives of the partnership are:

to assist Greenland in addressing its major challenges in particular the sustainable diversification of the economy, the need to increase the skills of its labour force, including scientists, and the need to improve the Greenlandic information systems in the field of Information and Communication Technologies;

to reinforce the capacity of the Greenlandic administration to better formulate and implement national policies in particular in new areas of mutual interest as identified in the proposal

Other areas of cooperation under the partnership would include:

education and training, tourism and culture; natural resources1, including raw materials; energy, climate, environment and biodiversity international cooperation on Arctic issues, such as Arctic Council, maritime transport and exploitation of natural resources; the social sector; mobility of workforce; social protection systems; food safety and food security issues; research and innovation in areas such as energy, climate change, disaster resilience, natural resources, including raw materials, and sustainable use of living resources.

The new partnership will also attempt to address the issue of structural weaknesses of the Greenlandic economy by providing the appropriate framework for the formulation and implementation of policies by the competent authorities that would lead to the diversification of the economy.

Financial contribution :

In spite of the fact that there is a Danish annual support to Greenland which amounts to approximately EUR 450 million, Denmark does not support any singular strategy, but the Greenlandic system in its entirety. The EU support will be given to national strategies , initiated, adopted and implemented by the Government of Greenland, and would permit broader dialogue of strategic interest to both parties.

Concerning the financing decision the aid modality would primarily be budget support , which will imply a regular dialogue about the focal sector(s) chosen in the context of the strategies agreed upon for the period.

BUDGETARY IMPLICATION: in the Commission's communication on the Future Financial framework for the European Union, under Heading 4 ('Global Europe') the line "others" includes an amount of EUR 217.8 million for the post-2013 partnership with Greenland.