Data Protection Package: finally an agreement!

A great day for European citizens and for the European economy

Following lengthy negotiations, an agreement on the Data Protection Package has been reached in trilogue. The result will be voted on Thursday in the Civil Liberties, Justice and Home Affairs Committee of the European Parliament. Viviane Reding MEP has welcomed the long-overdue agreement and highlighted the new opportunities for European businesses as well as the improved data protection for European citizens.

As a former European Commissioner responsible for Data Protection, Reding launched the Commission's original proposal in January 2012. "Our current Data Protection rules from 1995 date back to the pre-Internet era. It is high time that we update those rules. Since my proposal was unveiled four years ago, a lot of time has been wasted because national ministers have been dragging their feet. Now there is a solution which will be decisive for Europe's digital future and which lays the groundwork for the Digital Single Market. It is about time!", Reding commented.

For Reding, enhanced protection for citizens and new opportunities for European businesses, especially for small and medium-sized enterprises, are inextricably connected.

The European Commission estimates that the introduction of harmonised European rules could save European businesses up to €2.3 billion per year. The rules currently in force in the EU's 28 Member States are fragmented and cause significant additional administrative costs that impede European businesses from reaping the full benefits of the internal market.

Reding continued: "One rule for Europe instead of 28 different national laws, will cut red tape for European businesses. We want to enable our companies to unlock the full potential of the Single Market with its 500 million consumers. They need unhampered access to be able to compete with American companies." As regards small and medium-sized enterprises, Reding stressed the exemptions: "When data-processing is not their core business, SMEs will not be required to have a Data Protection Officer nor will they have to conduct any impact assessments. On top of that, reporting obligations amounting annually to additional costs of €130 million have been abolished."

For European citizens, the agreement means the strengthening of their fundamental right to Data Privacy, enshrined in Article 8 of the EU Charter of Fundamental Rights. This is especially important against the backdrop of the rapid development of digital technologies. Reding added: "The new rules clearly state that personal data belongs to the individual, and not to businesses. Whatever happens to personal data will require the consent of the individual." Henceforth, these rules will apply to all European citizens and no longer only to those citizens who happen to live in a Member State which already has a high national level of data protection.

Finally, Reding pointed out the strong sanction mechanism embedded in the Regulation: "When companies do not abide by the rules, they will face consequences. As we are no longer speaking about fines to the tune of €50,000, but rather €50 million, it will soon be crystal clear, also for non-European companies, that European law is to be taken seriously in Europe", she concluded.

Background

The Data Protection Package consists of the General Data Protection Regulation and the Directive on the protection of individuals with regard to the processing of personal data by competent authorities for the purposes of prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties, and the free movement of such data. Viviane Reding, in her capacity as the then Commissioner for Justice, launched the original proposal in 2012. It is meant to update the European Data Protection rules from 1995. It foresees the unifying of Data Protection rules in the European Union. After the European Parliament voted in favour of the new Regulation by a large majority, the Council of the European Union delayed the negotiation process. The trilogue negotiations between the European Parliament, the European Commission, and the Council could only actually start in the summer of 2015. They have now been completed in record time Under the Luxembourgish Presidency.