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Environmental liability deal leaves compulsory insurance out of the picture

Published 27 August 2002 - Updated 29 January 2010
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The agreement reached in conciliation between Parliament and Council has left it to the Commission to propose compulsory insurance schemes for companies six years after the directive enters into force.

Disagreements between the Parliament and the Council were ironed out in conciliation committee. The most serious related to the question of whether or not to impose mandatory insurance schemes to companies, as was requested by Parliament.

On another sensitive issue, that of finding ways to treat the damage after it has been made (the so-called remedies), it was agreed that they would only be imposed as a means of last resort.

An innovative feature of the directive is that it allows public interest groups such as NGOs to require public authorities to act or to challenge their decisions before the courts.

Positions: 

Toine Manders MEP (VVD/NL), the Parliament's rapporteur on the directive, expressed his satisfaction about the unexpectedly smooth adoption of this proposal in the conciliation negotiations between Council and Parliament: "My initial goal was to accomplish workable and reasonable legislation with an emphasis on prevention, safeguarding at the same time a level playing field for companies in the EU."

Greenpeace expressed dissatisfaction with the agreement reached in conciliation. In a statement, it said the deal does not give enough edge to the directive and qualified it as weak overall. European insurers association CEA, said they fundamentally opposed compulsory insurance schemes as evaluating the economic cost of damage (such as the disappearance of species of birds) was impossible at present.

Next steps: 

The Parliament and the Council now have six weeks to formally ratify the agreement. Member States will have three years to implement the directive after it is published in the Official Journal.

Background: 

A deal was finally struck on the environmental liability directive after Council and Parliament reached an agreement in conciliation committee. The conciliation committee was convened in January after a Parliament vote in second reading made it obvious that its views differed too widely from that of the Council (see EurActv, 18 December 2003).

Test table:

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