The European Parliament adopted by 654 votes to 10, with 24 abstentions, a legislative resolution on the draft Council decision on the conclusion, on behalf of the Union, of the Common Aviation Area Agreement between the European Union and its Member States, of the one part, and the Republic of Moldova, of the other part.

In line with the recommendation made by the Committee on Transport and Tourism, the European Parliament gave its consent to the conclusion of the Agreement.

The Agreement is part of the European Union's Neighbourhood Policy. It builds on the bilateral air transport agreements between the EU Member States and Moldova and replaces them with the creation of the Common Aviation Area between the European Union and its Eastern Partnership partners. The Agreement was signed on 26 June 2012, subject to its conclusion at a later date.

This comprehensive Agreement covers not only air traffic rights, in order to allow direct flights between any EU airport and Moldova, but also a wide range of air transport issues, such as passenger rights, air traffic management, economic regulation, competition or social aspects.

PURPOSE: the conclusion of the Common Aviation Area Agreement between the European Union and its Member States and Moldova.

PROPOSED ACT: Decision of the Council and of the Representatives of the Governments of the Member States, meeting within the Council.

BACKGROUND: the Commission has negotiated on behalf of the Union and of the Member States a Common Aviation Area Agreement with Moldova.

In accordance with the Decision of the Representatives of the Governments of the Member States of the European Union, meeting within the Council of 7 June 2012, the Agreement was signed on 26 June 2012.

It is necessary to lay down appropriate arrangements for the coordination between and representation of the Union and the Member States in the Joint Committee set up under Article 22 of the Agreement and in the dispute settlement procedures provided in Article 23 of the Agreement, as well as for implementing certain provisions of the Agreement concerning security and safety.

Since the Agreement contains elements of both Union and Member States' competence , in order to ensure close cooperation and unity in international relations, the Decision should be adopted jointly by the Council and the Member States.

The rules envisaged to ensure such close cooperation and unity should include clear guidance for representation "on the spot", inter alia, by confirming the necessity of a joint and common approach. In the context of a mixed agreement, those rules should still fully respect Union procedures also as regards the establishment of the Union position and the representation of the Union within the Joint Committee.

The Agreement should be approved on behalf of the European Union.

IMPACT ASSESSMENT: no impact assessment was undertaken.

LEGAL BASIS: Article 100(2), in conjunction with point (a) of Article 218(6) and the first subparagraph of Article 218(8) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: this proposal aims to approve the Common Aviation Area Agreement between the European Union and its Member States, and Moldova.

Apart from the main points of the Agreement, which are already set out in the Commission’s initial legislative proposal (please see the summary of 27/01/2012) the Agreement contains the following technical points:

· Joint Committee: the Union and the Member States shall be represented in the Joint Committee established pursuant to Article 22 of the Agreement by representatives of the Commission and of the Member States, respectively. The proposal sets out, in each case, the position to be taken by the Union and its Member States in the Joint Committee with regard to matters falling within or outside the exclusive competence of the Union.

· Settlement of disputes : in the case of dispute settlement proceedings pursuant to Agreement, the proposal sets out the position to be taken by the Commission.

· Information to the Commission : Member States shall promptly inform the Commission of any decision to refuse, revoke, suspend or limit the authorisation of an airline of Moldova that they intend to adopt.

BUDGETARY IMPLICATIONS: the proposal has no implications for the EU budget.

PURPOSE: the conclusion of the Common Aviation Area Agreement between the European Union and its Member States and Moldova.

PROPOSED ACT: Decision of the Council and of the Representatives of the Governments of the Member States, meeting within the Council.

BACKGROUND: the Commission has negotiated on behalf of the Union and of the Member States a Common Aviation Area Agreement with Moldova.

In accordance with the Decision of the Representatives of the Governments of the Member States of the European Union, meeting within the Council of 7 June 2012, the Agreement was signed on 26 June 2012.

It is necessary to lay down appropriate arrangements for the coordination between and representation of the Union and the Member States in the Joint Committee set up under Article 22 of the Agreement and in the dispute settlement procedures provided in Article 23 of the Agreement, as well as for implementing certain provisions of the Agreement concerning security and safety.

Since the Agreement contains elements of both Union and Member States' competence , in order to ensure close cooperation and unity in international relations, the Decision should be adopted jointly by the Council and the Member States.

The rules envisaged to ensure such close cooperation and unity should include clear guidance for representation "on the spot", inter alia, by confirming the necessity of a joint and common approach. In the context of a mixed agreement, those rules should still fully respect Union procedures also as regards the establishment of the Union position and the representation of the Union within the Joint Committee.

The Agreement should be approved on behalf of the European Union.

IMPACT ASSESSMENT: no impact assessment was undertaken.

LEGAL BASIS: Article 100(2), in conjunction with point (a) of Article 218(6) and the first subparagraph of Article 218(8) of the Treaty on the Functioning of the European Union (TFEU).

CONTENT: this proposal aims to approve the Common Aviation Area Agreement between the European Union and its Member States, and Moldova.

Apart from the main points of the Agreement, which are already set out in the Commission’s initial legislative proposal (please see the summary of 27/01/2012) the Agreement contains the following technical points:

· Joint Committee: the Union and the Member States shall be represented in the Joint Committee established pursuant to Article 22 of the Agreement by representatives of the Commission and of the Member States, respectively. The proposal sets out, in each case, the position to be taken by the Union and its Member States in the Joint Committee with regard to matters falling within or outside the exclusive competence of the Union.

· Settlement of disputes : in the case of dispute settlement proceedings pursuant to Agreement, the proposal sets out the position to be taken by the Commission.

· Information to the Commission : Member States shall promptly inform the Commission of any decision to refuse, revoke, suspend or limit the authorisation of an airline of Moldova that they intend to adopt.

BUDGETARY IMPLICATIONS: the proposal has no implications for the EU budget.

PURPOSE: conclusion of the Common Aviation Area Agreement between the European Union and its Member States, of the one part, and the Republic of Moldova, of the other part.

PROPOSED ACT: Council Decision.

BACKGROUND: Air services between the EU and the Republic of Moldova presently operate on the basis of bilateral agreements between individual Member States and the Republic of Moldova. It is part of the EU's external aviation policy to negotiate comprehensive air services agreements with neighbouring countries where the added value and economic benefits of such agreements have been demonstrated.

The Common Aviation Area Agreement between the European Union and its Member States, of the one part, and the Republic of Moldova, of the other part has been negotiated by the Commission as authorised by the Council in June 2011.

The negotiating directives set out the general objective of negotiating a comprehensive air transport agreement with the aim of gradually and reciprocally opening market access and ensuring regulatory convergence and effective implementation of EU standards. In accordance with the negotiating directives, a draft Agreement with the Republic of Moldova was initialled by the two sides on 26 October 2011 .

The conclusion of a comprehensive air transport agreement with the Republic of Moldova is an important element in the development of the EU external aviation policy and in particular a wider European Common Aviation Area, as described in the Commission Communication " Developing the agenda for the Community's external aviation policy ".

IMPACT ASSESSMENT: a report prepared for the Commission in 2011 by consultants, estimated that the economic benefit of such an agreement is estimated at around € 17 million per year (mainly due to lower air fares, increased air travel and the associated economic activity). The analysis also showed that air fares on popular routes are likely to drop significantly as a result of increased competition. The Agreement would also help improve "doing business" issues for EU carriers.

LEGAL BASIS: Article 100 (2), in conjunction with Article 218 (6)(a) and (8) of the Treaty on the Functioning of the European Union.

CONTENT: the Agreement consists of the main body including the main principles, and two annexes: Annex I on route schedule, traffic rights and operational flexibility, and Annex II on bilateral air services agreements. The Agreement aims at:

gradual market opening in terms of access to routes and capacity on a reciprocal basis; promoting regulatory cooperation and harmonisation of regulations and approaches based on EU legislation in the field of aviation; promoting air services based on competition among air carriers with minimum government interference and regulation; non-discrimination and level playing field for economic operators.

A Joint Committee will be established to discuss matters related to the implementation of the Agreement. The Joint Committee will monitor safety aspects related to the Agreement, foster expert-level exchanges on new legislative or regulatory initiatives or developments and consider potential areas for further development of the Agreement. The Joint Committee will be composed of representatives of the Commission and the Member States.

BUDGETARY IMPLICATION: this proposal has no impact on the EU's budget.

PURPOSE: conclusion of the Common Aviation Area Agreement between the European Union and its Member States, of the one part, and the Republic of Moldova, of the other part.

PROPOSED ACT: Council Decision.

BACKGROUND: Air services between the EU and the Republic of Moldova presently operate on the basis of bilateral agreements between individual Member States and the Republic of Moldova. It is part of the EU's external aviation policy to negotiate comprehensive air services agreements with neighbouring countries where the added value and economic benefits of such agreements have been demonstrated.

The Common Aviation Area Agreement between the European Union and its Member States, of the one part, and the Republic of Moldova, of the other part has been negotiated by the Commission as authorised by the Council in June 2011.

The negotiating directives set out the general objective of negotiating a comprehensive air transport agreement with the aim of gradually and reciprocally opening market access and ensuring regulatory convergence and effective implementation of EU standards. In accordance with the negotiating directives, a draft Agreement with the Republic of Moldova was initialled by the two sides on 26 October 2011 .

The conclusion of a comprehensive air transport agreement with the Republic of Moldova is an important element in the development of the EU external aviation policy and in particular a wider European Common Aviation Area, as described in the Commission Communication " Developing the agenda for the Community's external aviation policy ".

IMPACT ASSESSMENT: a report prepared for the Commission in 2011 by consultants, estimated that the economic benefit of such an agreement is estimated at around € 17 million per year (mainly due to lower air fares, increased air travel and the associated economic activity). The analysis also showed that air fares on popular routes are likely to drop significantly as a result of increased competition. The Agreement would also help improve "doing business" issues for EU carriers.

LEGAL BASIS: Article 100 (2), in conjunction with Article 218 (6)(a) and (8) of the Treaty on the Functioning of the European Union.

CONTENT: the Agreement consists of the main body including the main principles, and two annexes: Annex I on route schedule, traffic rights and operational flexibility, and Annex II on bilateral air services agreements. The Agreement aims at:

gradual market opening in terms of access to routes and capacity on a reciprocal basis; promoting regulatory cooperation and harmonisation of regulations and approaches based on EU legislation in the field of aviation; promoting air services based on competition among air carriers with minimum government interference and regulation; non-discrimination and level playing field for economic operators.

A Joint Committee will be established to discuss matters related to the implementation of the Agreement. The Joint Committee will monitor safety aspects related to the Agreement, foster expert-level exchanges on new legislative or regulatory initiatives or developments and consider potential areas for further development of the Agreement. The Joint Committee will be composed of representatives of the Commission and the Member States.

BUDGETARY IMPLICATION: this proposal has no impact on the EU's budget.