[Documents/Docheader.htm]Economic aspects of European Union enlargement: the crucial years ahead
Recommendation 1647 (2004)Doc. 10287
21 September 2004Reply from the Committee of Ministers
adopted at the 895th meeting of the Ministers’ Deputies (15 September 2004)
1. The Committee of Ministers noted with interest Parliamentary Assembly Recommendation 1647 (2004) on the economic aspects of European Union enlargement: the crucial years ahead, which it has transmitted to member states’ governments as well as the European Committee for Social Cohesion (CDCS) and the European Committee on Crime Problems (CDPC). Consequently, the Committee of Ministers has received the appended opinion of the CDPC, which it endorses. It encourages the CDCS to also communicate its opinion as soon as possible.
2. The Committee of Ministers recalls that the Heads of State and Government meeting in Strasbourg in October 1997, identified social cohesion as “one of the foremost needs of the wider Europe”. With its pan-European membership, the Council of Europe has a special role in promoting social cohesion across the whole continent.
3. The Committee of Ministers is aware that a streamlining of policies in the different parts of Europe would contribute to bridge a potential European welfare divide. In this context, it has taken note of the Parliamentary Assembly’s proposal to establish a joint Council of Europe-European Union Working Committee, to devise policy orientations and to encourage the harmonisation of European laws and policies in the social field. It will keep this idea in mind during the current work aiming at improving cooperation and promoting synergies between the two organisations, while being aware that such matters are discussed either bilaterally or on a regional basis in the European Union’s own fora and implemented through specific policies and instruments.
4. The Committee of Ministers is aware that it is vital to avoid the emergence of a “two-speed Europe” and the creation of a dramatic widening wealth gap between countries, as regards income and social protection. In this respect it is of the opinion that the Council of Europe’s revised European Social Charter has a considerable role to play in order to reduce such social and economic disparities and to contribute to the pursuit of reform across the continent.
5. The Committee of Ministers draws the Parliamentary Assembly’s attention to the Council of Europe’s “Revised strategy for social cohesion” which it adopted at its 878th meeting (31 March 2004). This strategy, which should guide the Organisation’s social cohesion work during the next few years, addresses a number of the Parliamentary Assembly questions, notably the need to integrate the social dimension into economic life and to encourage cross-sector dialogue.
6. Finally, the Committee of Ministers has taken note of the Parliamentary Assembly’s proposal to set up a European Forum for Social Dialogue. It will consider this proposal, as well as other proposals made in Recommendation 1647 (2004), in the near future, in the framework of its Rapporteur Group GR-SOC and in relation with its discussions on the 2005 budget and Programme of Activities.
Appendix to the reply
Opinion of the European Committee on Crime Problems (CDPC) on Parliamentary Assembly Recommendation 1647 (2004) on the economic aspects of European Union enlargement: the crucial years ahead
1. The Committee of Ministers, at the 872nd meeting of the Ministers’ Deputies on 12 February 2004, decided to communicate Parliamentary Assembly Recommendation 1647 (2004) on the economic aspects of European Union enlargement: the crucial years ahead to the European Committee on Crime Problems (CDPC) for possible comments by 31 May 2004.
2. The CDPC examined the Committee of Ministers request at its 53rd meeting on 16-19 March 2004.
3. The CDPC noted from the outset that the setting up of a fair, effective and transparent legal system, respectful of the principles of human rights and the rule of law, is a fundamental necessity for the proper development of the market economy. However, organised, sophisticated and transnational criminals challenge and misuse the rules of economic development with the risk of frustrating the mechanisms set up by the international community to counter organised transnational crime.
4. The CDPC stressed that the Council of Europe and, in particular, the CDPC, with its nearly 60 years of experience in the area of the respect of human rights and the rule of law and the promotion of international co-operation in criminal matters has reacted vigorously against the emerging forms of (economic and financial-related) crimes (such as corruption, money laundering, cybercrime, trafficking in human beings).
5. The CDPC noted that the Council of Europe’s reaction has followed a three-fold approach: setting standards, following up the proper implementation by states of these standards and promoting law reforms and training in states through technical assistance.
6. In this context, the CDPC recalled that, as regards the setting of standards, in the last years a series of treaties have been prepared to fight effectively against the new forms of economic and financial crimes. The Convention on laundering, search, seizure and confiscation of the proceeds from crime (CETS No. 141), the Civil and Criminal Law Conventions on Corruption (CETS Nos. 173 and 174), the Second Additional Protocol to the European Convention on mutual assistance in criminal matters (CETS No. 182), the Convention on Cybercrime and its Additional Protocol (CETS Nos. 185 and 189), the Protocol amending the European Convention on the suppression of terrorism (CETS No.190) constitute an arsenal of legal norms which are examples of the firm commitment of the Council of Europe to fight effectively against economic and financial crimes, while promoting the social and economic progress of states. In addition, the CDPC stressed the importance of the on-going revision process of Convention No. 141 which will enable this widely ratified treaty to be an even stronger and updated tool against money laundering.
7. As regards the monitoring of commitments, the CDPC underlined that two mechanisms have been set up by the Council of Europe in this area: the Group of States against corruption (GRECO) and MONEYVAL.
8. The CDPC recalled that the aim of the GRECO is to improve its members' capacity to fight corruption by monitoring the compliance of states with their undertakings in this field. GRECO is responsible, in particular, for monitoring observance of the Guiding Principles for the Fight against Corruption and implementation of the international legal instruments adopted in pursuit of the Programme of Action against Corruption (PAC). So far three such instruments have been adopted, the Criminal Law Convention on corruption (CETS No.173), the Civil Law Convention on corruption (CETS No. 174), and Recommendation Rec(2000)10 on codes of conduct for public officials, adopted on 11 May 2000.
9. Moreover, the CDPC underlined that it has long recognised the threat to economic development in its member states posed by money laundering. In particular, it pointed out that the Council of Europe has for many years raised the awareness of member states that organised crime relies on money laundering to provide its cash flow, and to allow it to invest in the legitimate economy, thereby consolidating its economic power, as well as its potential for seriously distorting market economies. Thus, the Council of Europe has placed a high priority on ensuring that all anti-money laundering international standards are rigorously enforced, through its MONEYVAL mechanism. MONEYVAL, following the practices and procedures of the Financial Action Task Force (FATF), is responsible for mutual evaluation in all Council of Europe countries that are not members of the FATF. 26 Council of Europe member states (including all the European Union accession and applicant states) undergo thorough evaluation under this process. Monaco, as an applicant country for Council of Europe membership, is also subject to its procedures.
The evaluations cover not only the effectiveness of enforcement of the Convention on Laundering, Search, Seizure and Confiscation of the Proceeds from Crime (CETS No. 141) but all other relevant international standards including the 40 FATF Recommendations and the European Community Directives 91/308 and 2001/97. The performance of the financial sector in anti-money laundering prevention is a crucial part of these assessments.
10. The CDPC recalled that the importance to the Council of Europe of MONEYVAL's work in this area of economic crime was underlined by the Committee of Ministers' decision in September 2003 to extend its mandate until December 2007 to enable it to undertake a third round of evaluations. The CDPC noted that MONEYVAL is now actively collaborating with the IMF and the World Bank. It has reached an agreement with them that MONEYVAL reports will be used by the IMF and World Bank as the anti-money laundering (and countering the financing of terrorism) components of their own wider financial sector assessments in MONEYVAL countries. MONEYVAL's work is also closely followed by many international observers concerned with macro-economic issues including the European Commission and the European Bank for Reconstruction and Development.
11. In this context, the CDPC, while recalling the reply adopted by the Committee of Ministers on 17 September 2003 at the 852nd meeting of the Ministers’ Deputies to Parliamentary Assembly Recommendation 1584 (2002), invited the Committee of Ministers to ensure that MONEYVAL is properly resourced (both in terms of human and financial resources) for this work.
12. Finally, the CDPC noted that the Council of Europe has put great emphasis in providing technical assistance to member states in the law reform field related to economic and organised crime, through a variety of technical assistance programmes and activities such as the Octopus Programme against Corruption and Organised Crime in Europe, the Programme against Corruption and Organised Crime in South-East Europe, the LARA project on Criminal Law Reform against Trafficking in Human Beings in South-East Europe and the MOLI projects against money laundering in Russia and Ukraine. It is worth mentioning that in March 2004, the Council of Europe launched two major regional projects in this field in South-East Europe, namely the Project on Strengthening Police Capacities against Serious Crime, funded jointly with the European Commission under the CARDS regional programme, and the PACO Impact Project on Implementation of Anti-Corruption Plans.
13. In conclusion, and in the light of the above, the CDPC welcomes Parliamentary Assembly Recommendation 1647 (2004) and assures the Committee of Ministers that, with the necessary human and financial resources, it will continue to contribute, together with other Council of Europe bodies, to ensure full support for the Council of Europe’s anti-corruption and anti-money laundering measures, including through full adherence to the principles set out in the relevant international legal instruments of the Council of Europe, which the CDPC has largely contributed to develop.