Detecting a vision
Since early times, Europe has had its say in shipping and in the development of the legal and political regulatory system around it. In various forms and under various flags the maritime interests of Europe have been maintained. Over the last part of the 20th century, however, the age of globalisation in terms of both trade and politics created new challenges of its own. Individually European governments increasingly experienced a weakening of their power and influence on their own destiny as well as on international developments. The forces of globalisation therefore contributed to an ever-closer integration of European countries into the European Union (EU). And increasingly the EU developed a vision of regaining its former influence through the pooling of common interests and forces.

INTERTANKO detected this trend - and the importance of it for the world's tanker industry - a decade ago. From the early 1990s INTERTANKO members and secretariat therefore built up regular contacts with the Brussels institutions, and gradually the Association's presence in Brussels took on a permanent nature. The reasoning behind this was simple: As a group the united Europe is the biggest oil importer by sea in the world. Europe is therefore dependent on tankers. But tanker owners are equally dependent on Europe.

The sinking of Erika - a turning point
The sinking of the product carrier Erika off the coast of North-western France in December 1999 became a turning point in the role of the Europe Union in maritime affairs. Even though the tendency could already be detected after the Braer accident in 1993, the situation became even more apparent for European political decision-makers in the wake of Erika. As individual countries the EU member states encountered increasing problems in protecting their own interests against environmental disasters and in ensuring the highest possible standard throughout the entire responsibility chain in maritime transport. The time had come for a greater and better co-ordinated role for the European Union member states as a group.

As one of the leading economic regions, Europe is the largest oil importing area by sea in the world. This illustrates that tankers are important to Europe, but also that Europe is important for tanker owners.

A complex system
By coincidence the Erika accident took place at a time when the EU's political decision- making system had just undergone major changes. First of all, any matter of importance to the shipping industry would from June 1999 be subject to the so-called ‘co-decision procedures’ in the EU. This procedure, which originates from the entry into force of the Amsterdam-treaty, in short made any EU decision in the field dependent on input and consensus from three more or less equally powerful corners in a Brussels ‘triangle of power’. The European Commission -the EU's executive arm also possessing the right of proposal for new legislation, the Council consisting of EU Member State's governments and the European Parliament with its 626 members (‘MEPs’) directly elected from Member States' local and regional constituencies. To ensure that the voice of the tanker industry will be heard and taken into account in the formulation of European views on shipping and energy matters INTERTANKO therefore needs to interact constructively at varying levels in all three institutions. How to engage and with what message will vary throughout the process, from the birth of the proposal (in the Commission) via the changes to its form and content (in Parliament and Council) to its final decision (the Council) and ultimate implementation (Member States but supervised by the Commission).

INTERTANKO in Brussels
- dealing with the main issues
With the Erika accident a number of issues of great interest and concern to the tanker industry came on the table of the EU decision-makers. What has now become known as the two ‘Erika packages’ therefore came to dominate INTERTANKO's Brussels activities throughout 2001. In fact - 2001 became the year when most of the decisions were finalised.

Erika I An invitation to the industry to sign up for ‘voluntary agreements’ Proposal for an EU Regulation on (regional) phasing out of single hull tankers Proposal for radical amendments in the EU directive on Port State Control Proposal for radical amendments in the EU directive on Licensing of Classification societies	Erika II Proposal for a new EU Directive on Monitoring and Reporting of maritime traffic Proposal for EU Regulation establishing a European Maritime Safety Agency Proposal for a European (regional) third layer of oil pollution compensation (‘COPE’) and a ‘wish-list’ for future changes to the IOPC/CLC system

The decision-making procedures of the EU are complex. This simplified illustration shows, however, that throughout the process three institutions are almost equally important. The Commission proposes legislation to the Council (Member States) and the European Parliament. In accordance with the so called ‘co-decision procedure’ the final legislation is being shaped through a two-step process. On behalf of tanker owners INTERTANKO will interact with the system in different forms at different stages. Some of these possible points of input are listed on the right-hand side of the illustration.

From regional approach to global participation
Beyond doubt the Erika accident came as a wake up call for European Union decision- makers and understandably so. Here was an accident which seemed to highlight many weaknesses in the way the international maritime regulatory system was functioning. Political focus therefore immediately came on issues such as the (slow) functioning of the IMO, the apparent loopholes resulting from some flag states' lack of implementation of existing rules and - not the least on -‘ transparency’. To many, the answers seemed to lie in building up Europe's own defences and in letting the international system represented by the IMO slip into a secondary role.

A central theme in INTERTANKO's discussions with leading EU decision-makers therefore immediately centred round the challenge of convincing Europe that it would stand to gain from pushing its many agenda points at an international as opposed to a regional level. This was also a main theme in discussions held between INTERTANKO's Chairman Lars Carlsson and the European Commission Vice President and Commissioner responsible for maritime safety, Ms. Loyola de Palacio when they met.

It is therefore with satisfaction that INTERTANKO can summarise the events of the year by noting a considerable shift in the European Union's approaches to these matter. Through sincere dialogue with the industry, amongst the European institutions and not the least between European Union spokeswomen and men, generally acceptable international solutions have emerged on a number of issues which at the beginning of the year threatened to turn the world's maritime regulatory system regional.

The making of new EU legislation is in many ways a negotiating process. Many institutions - and therefore individuals - are involved. This picture shows Mr. Fotis Karamitsos (left), Director of Maritime Transport in the Commission and Mr. Thomas Geib, the permanent representative of Germany responsible for maritime transport discussing maritime safety issues at a workshop organised by INTERTANKO.

In more detail the following achievements are worthy of attention:

• The concept of a voluntary agreement with the industry in order to achieve, amongst other things, restrictions in the carriage of oil in older tankers has been abandoned and the focus of attention turned to an international focus on quality rather than age
• The initiative on earlier (than MARPOL) phase-out of single hull tankers in Europe has been turned into an internationally agreed revision of MARPOL 13G, thereby also bringing US and international rules on these aspects more in line
• The initial Commission proposal to set up a European third layer of oil spill compensation has moved over to the drafting of an internationally agreed voluntary third layer to be annexed to the International Oil Pollution Conventions
• The almost unanimously supported (by EU Member states and Parliament) Commission initiative to make mandatory the retrofitting of ‘black boxes’ (VDRs) on cargo vessels in Europe has now resulted in a compromise where such rules will be implemented in Europe from 2008 at the latest, but initiatives have at the same time been taken in order to leave the IMO time to consider international rules and - not least - to decide on the specific terms and conditions to be applied for such devices
• The proposed text for the so-called 'weather ban' - which would seriously interfere with the ship master's rights and obligations as established through international law and practice over centuries - appears to be taking on an acceptable form

In conclusion one can say that over the year the EU has moved considerably from a regional and IMO-sceptical stance to that of seeing itself as catalyst of a more active and efficient international system but established through IMO cooperation.

Environment at the forefront
Another feature of the year has been an ever-increasing EU focus on the maritime environment as part of a bigger picture. Realising the importance of challenges arising from such issues as regional and local Sox and Nox pollution, volatile organic compounds (VOC) evaporation from cargo tanks and cargo operation as well as the post-Kyoto climate change discussions INTERTANKO has worked actively in order for the European Union to address these issues in a coherent and global manner. INTERTANKO therefore welcomes the European Commission's initiative to produce a policy strategy on maritime air pollution which takes both regional and international aspects into consideration and where all practicable solutions will be studied. INTERTANKO will continue its work for this policy to be based on ratification (by EU Member states) of the MARPOL Convention's Annex VI.

Commission Vice President Loyola de Palacio is the EU Commissioner responsible for both energy and transport and as such has with great influence on the tanker industry. Ever since Ms. de Palacio took up office in the autumn of 1999, INTERTANKO has enjoyed a fruitful and constructive working relationship with the Vice President and her staff. In the wake of the Erika accident INTERTANKO's Chairmen have had several meetings with the Commissioner.

The Commission has for some time been developing a horizontal (across all industry sectors) draft EU directive on liability for restoration of environmental damage. INTERTANKO has followed this work closely and has underlined that there exist already sound international conventions covering liability for environmental damage caused by shipping. It is encouraging that the Commission has decided to exclude shipping from this directive leaving the issue for international conventions to solve.

Finally, INTERTANKO has been pleased to note that one of its long-standing priorities - the need for coastal states to take an active part in setting up adequately equipped places of refuge - will be required for EU Member States as part of the Erika II follow-up. INTERTANKO is represented in Brussels through ADS Insight, where our main contact is Ketil Djønne.

The European Parliament (EP) has gained increasing influence over the last couple of years. In this context the work of the EP Committee of Transport is of particular importance for tanker owners. In order to facilitate a dialogue between prominent members of the Committee and the tanker industry, INTERTANKO, in co-operation with influential EP Erika-spokesman, MEP Mark Watts, organised a joint workshop in the European Parliament in December. From left to right: Belgian MEP and spokesman for the monitoring and reporting proposal, Mr. Dirk Sterckx, Dutch MEP and co-ordinator for the Green parties in the Committee, Mr. Theo Bouwman, Greek MEP and Chairman of the Transport Committee Mr. Konstantinos Hatzidakis, UK MEP and spokesman for the port state control directive (and co-chairman of the work shop) Mr. Mark Watts, INTERTANKO (and co-chairman of the workshop), Mr. Lars Carlsson, Chairman, Assistant Director of INTERTANKO Mr. Kristian Fuglesang and Managing Director of INTERTANKO, Dr. Peter Swift. INTERTANKO believes that dialogues, such as these, promote better policies.