Council of the European Union Brussels, 27 July 2020 (OR. en) 9945/20 CORDROGUE 47 SAN 260 ENFOPOL 186 RELEX 567 COVER NOTE From:                   Secretary-General of the European Commission, signed by Mr Jordi AYET PUIGARNAU, Director date of receipt:        27 July 2020 To:                     Mr Jeppe TRANHOLM-MIKKELSEN, Secretary-General of the Council of the European Union No. Cion doc.:          COM(2020) 606 final Subject:                COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS EU Agenda and Action Plan on Drugs 2021-2025 Delegations will find attached document COM(2020) 606 final. Encl.: COM(2020) 606 final 9945/20                                                            EN/mdc JAI.B                               EN

EUROPEAN COMMISSION Brussels, 24.7.2020 COM(2020) 606 final COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS EU Agenda and Action Plan on Drugs 2021-2025 EN                                                            EN

I.     Introduction – A renewed impetus to comprehensively tackle the drug situation In line with the new Security Union Strategy 2020-2024, the Commission intends to significantly step up EU action on tackling illicit drugs through a robust new EU Agenda on Drugs. In addition to the impact on individuals in terms of lives lost, deteriorated health and potential unrealised, damage can be seen in terms of decreased quality of life in communities affected by drug problems. When it comes to the drug market, the illicit drug market in the EU is estimated at a minimum retail value of EUR 30 billion per year, 1 representing a major source of income for organised crime groups in the EU. It is important to recognise the considerable economic damage attributable to drug use and more generally, the considerable indirect negative impact the drug market has through links with wider criminal activities, the disruption of the legal economy, violence in communities, damage to the environment, and by acting as a significant driver for corruption that can undermine good governance. 2 All available data indicate that, overall, drug availability within Europe remains high for both natural and synthetic drugs. The European drug market is increasingly characterised by the public having access to a wide variety of high-purity and high-potency drugs that, in real terms, are usually equivalent in price or cheaper than they have been over the past decade. The use of heroin and other opioids still accounts for the largest share of drug- related harms. The Balkan route remains the key corridor for heroin entry into the EU, while the Western Balkans appear to remain an important source of origin for seized herbal cannabis. The cocaine market is the second largest illicit drug market in the EU, after cannabis. The use of containers for cocaine smuggling means that seizures of large volumes of the drug at ports are now common and the cocaine seized at the wholesale level in Europe is of high purity, often above 85%. North Africa appears to be emerging as a more significant transit point for both air and maritime shipments of cocaine and cannabis resin destined for the European and possibly other markets. Furthermore, significant production of cannabis and synthetic drugs takes place within the EU. In terms of new psychoactive substances, even though there has been a slow- down in the number of first detections in Europe, they continue to be shipped mainly from China and India – also the main source of drug precursors predominantly used in the illicit synthetic drug production in the EU. The EU also appears to be increasingly used as a transit area for some drugs such as cocaine destined for other markets, and drugs such as high-potency synthetic opioids are increasingly traded online and dispatched by post. Lastly, in today’s interconnected world, the drugs phenomenon is becoming increasingly global. This led the international community to agree to strengthen its action, reinforce cooperation and accelerate the implementation of joint commitments to address the global drugs situation as part of the 2019 Ministerial 3 Declaration of the UN Commission on Narcotic Drugs (CND). 1 EMCDDA and Europol (2019). EU Drug Markets Report. 2 See footnote 1. 3 UN Commission on Narcotic Drugs, Ministerial declaration on strengthening our actions at the national, regional and international levels to accelerate the implementation of our joint commitments to address and counter the world drug problem. 1

Organised crime groups, of which more than one-third are directly involved in the drug 4 markets , are also very adaptive. During the COVID-19 pandemic, the movement of bulk quantities of drugs between Member States remained largely unaffected despite the 5 restrictions of movement. However, COVID-19 related lock-down measures had a temporary disruptive impact on the global drug market leading to some shortages of and 6 higher prices for some drugs. Social distancing also created disruptions at the distribution level in Europe, and the unstable situation led to increased levels of violence 7 among mid-level suppliers and distributors. In terms of the health aspects of drugs, demand for drug treatment and harm reduction services could continue to increase while continuity of care for people who use drugs has proved to be a challenge in some 8 Member States, due to staff shortages, service disruption and closure. As the situation is changing fast, it will be equally important to identify at an early stage and develop appropriate responses to the potential medium and long term impact of the current pandemic on drug services, drug use and the operations of the drug market. 9 The evaluation of the EU Drugs Strategy 2013-2020 and its two consecutive 10 corresponding Action Plans confirmed that the drugs phenomenon and its challenges need to continue to be tackled at the national, EU, and international level. Amongst the findings, it is notable that security and health aspects stemming from illicit drug markets remain central to addressing the broader and horizontal elements of the drugs 11 phenomenon. We must build on the work done in the past under the EU Drugs Strategy and as reflected by the specialised EU justice and home affairs agencies, especially in terms of coordination and cooperation, active discourse and analysis, strengthened dialogue and cooperation on the international stage, and increased understanding of all aspects of the drugs phenomenon and of the impact of interventions. The EU needs a paradigm-shift in drugs policy. Therefore, this Agenda strengthens the EU approach to drugs and delivers a bold drugs policy agenda to drive concrete and ambitious change. It steps up efforts on all dimensions of drugs policy, in particular on the security side where it is more robust and provides for concrete actions to address previous shortcomings. The EU Agenda on Drugs was developed through a consultative process with Member 12 States and relevant stakeholders. It is informed by the mid-term assessment and final evaluation of the EU Drugs Strategy 2013-2020 and its two consecutive corresponding Action Plans. It addresses the drug situation as described in the EU flagship reports on 13 drugs of 2019 (the annual European Drug Report by the European Monitoring Centre 4 See footnote 1. 5 EMCDDA and Europol, EU Drug Markets – Impact of COVID-19, May 2020. 6 For more, see footnote 5. 7 See footnote 5. 8 For more, see EMCDDA (March 2020). The implications of COVID-19 for people who use drugs (PWUD) and drug service providers. 9 OJ C 402, 29.12.2012, p. 1. 10 OJ C 351, 30.11.2013, p. 1 and OJ C 215, 05.07.2017, p. 21. 11 For the findings of the evaluation, see the Commission Staff Working Document: Evaluation of the EU Drugs Strategy 2013-2020 and EU Action Plan on Drugs 2017-2020, July 2020, SWD(2020) 150. 12 COM(2017) 195. 13 http://www.emcdda.europa.eu/publications-database?f[0]=field_series_type:404 2

14 for Drugs and Drug Addiction (EMCDDA) and the EU Drug Markets Report by the 15 EMCDDA and Europol) and the UNODC’s World Drugs Report . The data referenced throughout the EU Agenda on Drugs is sourced from these reports. It also takes into 16 account the European Guide on health and social responses to drug problems where the technical evidence on what constitutes effective responses to drug use are reviewed. II.     Aims and guiding principles of EU drugs policy Against the background of a serious situation in drug trafficking and in the use of illicit drugs in Europe, the EU Agenda on Drugs takes an evidence-based, integrated, balanced and multidisciplinary approach to the drugs phenomenon at national, EU and international level. The aim of the EU Agenda on Drugs is to protect citizens through better coordinated measures that will: (i) have a substantive and measurable impact on the security and health issues arising from drug use and the operations of the drug market; and, (ii) address both the direct and indirect consequences arising from this problem including links to violence and other forms of serious crime, related health and societal problems, environmental damage, while raising public and policy awareness on these issues. The EU Agenda on Drugs is based on the following guiding principles: a. The founding values of the European Union and fundamental principles of EU law: respect for human dignity, liberty, democracy, equality, solidarity, the rule of law, security and human rights. b. Multidisciplinary approach: to implement the EU Agenda on Drugs, all partners at 17 national level , EU institutions, bodies and agencies (in particular, the continued central 18 role played by the EMCDDA and Europol) , as well as industry and civil society organisations need to further and better cooperate. c. Integration into EU’s external action: the approach and objectives of the EU Agenda on Drugs should be pursued in a coordinated and integrated manner with the EU’s external action. As the threats and security challenges evolve, internal and external security are increasingly interconnected. Protecting EU citizens from drug-related 14 http://www.emcdda.europa.eu/publications/joint-publications/eu-drug-markets-report-2019 15 UNODC, World Drug Report 2020. 16 Health and social responses to drug problems: a European guide, EMCDDA. http://www.emcdda.europa.eu/responses-guide_en 17 Such as law enforcement, customs including customs laboratories, border control, judiciary, prisons and correctional facilities, civil aviation and maritime authorities, postal services, stakeholders involved in research and innovation, social and drug treatment services including healthcare professionals, education and prevention sectors. 18 Other EU agencies and bodies involved in drug issues are e.g., European Border and Coast Guard Agency – Frontex, Maritime Analysis and Operations Centre – Narcotics (MAOC-N), European Union Agency for Criminal Justice Cooperation - Eurojust, and European Union Agency for Law Enforcement Training – CEPOL, the European Union Agency for Fundamental Rights – FRA, European Medicines Agency - EMA, European Centre for Disease Prevention and Control – ECDC. 3

challenges therefore requires coherence and close cooperation, where appropriate, between the objectives of the EU Agenda on Drugs and the EU’s external action. The EU’s external action in the field of drugs should be based on the complementary and mutually reinforcing principles of shared responsibility, multilateralism and coordinated 19 global responses. d. Science led, evidence-based responses and fostering innovation: efforts are needed in research to identify priorities, achieve synergies and coordination and disseminate findings effectively. Efforts should be intensified to develop, adopt and use new technologies to better monitor, analyse and respond to trends and threats in the illegal drug markets and to increase preparedness to respond to rapid changes. The EU Agenda on Drugs provides the political and strategic framework to effectively and comprehensively address drug-related security and public health challenges through the deployment of all relevant instruments at local, national, EU and international level. It should also enable the EU to speak with one voice when promoting the evidence- based, integrated, balanced and multidisciplinary approach of the EU Agenda on Drugs. This is of particular relevance when seeking to strengthen dialogue and cooperation with third countries, regions and international organisations, as well as in multilateral fora. The EU Agenda on Drugs sets out eight strategic priorities of EU drugs policy for the five years to come, under three main strands. Firstly, the EU Agenda on Drugs provides a comprehensive set of enhanced security measures focused on all aspects of illicit trafficking of drugs from organised crime groups to external border management, and illicit distribution and production in the EU. Secondly, prevention and awareness raising of the adverse effects of drugs is addressed, including their link to violent and other forms of criminality. Thirdly, addressing drug-related harms is of equal importance. We must ensure that those in need of help have access to effective treatment and that a robust risk and harm reduction framework is in place to reduce the negative consequences of drug use to both people who use drugs and their families and communities. Within the new EU Agenda on Drugs, specific recognition is given to supporting a balanced and comprehensive approach to addressing the issue of drug use in the prison setting; in an area that, due to its specific context, requires a strategic, structured and coordinated approach. The EU Agenda on Drugs is accompanied by an Action Plan on Drugs in Annex 1, covering concrete operational steps and activities, which aim to facilitate the implementation of the eight strategic priorities. III.      Strategic priorities A) ENHANCED SECURITY - DISRUPTING THE DRUG MARKETS 1. Disrupt and dismantle major high-risk drug-related organised crime groups operating in, originating in or targeting the EU Member States and address links with other security threats 19 The EU also reiterates its long-standing commitment to the approach outlined in the 2016 Outcome Document of the Special Session of the UN General Assembly on the World Drug Problem https://undocs.org/A/RES/S-30/1. 4

Drug markets are cross-border in nature and the identified drug-related organised crime groups often have a poly-criminal nature. In the EU, more than one third of these are directly involved in the drug markets, of which approximately two thirds have links with 20 wider criminal activities including corruption and money laundering, which enable their activities. Illicit drug trafficking also has links to other serious criminal areas, for 21 example, trafficking in human beings, migrant smuggling and trafficking of firearms, as well as the trade in falsified, counterfeit, substandard and unauthorised medicines. Possible links with terrorist financing/terrorism have been identified in a limited number of cases. Therefore, large scale operations in terms of volume of drugs or profits, as well as those that are smaller scale but particularly harmful due to the potency of drugs they operate in, such as synthetic opioids, should be a priority target at EU level. This should be prioritised in synergy with the EU policy cycle for organised and serious international 22 crime (EMPACT) that identifies, prioritises and addresses threats on a commodity- based approach. Furthermore, both top-level and established mid-level targets important for sustaining the operational continuity of organised crime groups should be a priority in order to disrupt their command structure. All actors in the chain experienced enough to provide continuity of criminal operations should be targeted. Secondly, focus should be given to following, freezing and confiscating the huge criminal profits from drug trafficking and related offences in order to take away the capacity of organised crime groups to engage in future crimes and to infiltrate the legal economy. To effectively fight drug trafficking, we must ensure that illegal profits do not go back into the drug supply chain and do not enable criminal behaviours such as corruption and violence, or other forms of serious and organised crime, such as trafficking in human beings or even terrorism. Furthermore, measures to limit the criminal use of instruments that enable the drug trade, such as equipment in drug laboratories for the purposes of drug production, firearms, falsified documents, and encryption technology should also be considered. Finally, the use of seized and confiscated instrumentalities and the proceeds from the offences related to drugs could be used in support of drug supply and drug demand reduction measures. Thirdly, existing collaboration should be enhanced and structured cooperation sought with drug source and transit countries, regions, and relevant regional organisations including through further targeted support and cooperation programmes that systematically involve relevant EU agencies, especially Europol and EMCDDA, as regards drug-related crime prevention and law enforcement cooperation, as well as through addressing links with other forms of organised crime. It is important to reinforce Europol and EMCDDA with the relevant resources needed to be able to support Member States drug related operational actions. In this context, EMPACT operational actions will 20 Corruption in the framework of the drugs business has a double significance. Organised crime groups use corruption as a means to facilitate drugs smuggling and the huge revenues derived from the illicit drugs fuels the overall corruption capacity of organised groups in the legal economy. 21 Drugs and trafficking in human beings may be interlinked in three broad, sometimes overlapping, ways: when drug trafficking and trafficking in human beings are conducted by the same organised crime groups; when trafficked individuals are coerced into playing a role in the drug trade; when drugs play a part in the human-trafficking process, facilitating and maintaining the exploitation of vulnerable individuals. See COM(2018) 777; Implementation of the Eurojust Action Plan against Trafficking in Human Beings 2012-2016 Final evaluation report, Eurojust 2017. 22 https://www.europol.europa.eu/empact. 5

also need to be strengthened. Beyond promoting and supporting international law enforcement and drug observatories’ cooperation, measures under this priority will continuously seek to address root causes and main drivers of organised crime and enhance the resilience of local communities. Priority areas to address: 1.1. Targeting high-risk organised crime groups active across the EU and cross-border drug markets, and disrupting criminal business models especially those that foster collaboration between different organised crime groups. 1.2. Proceeds and instrumentalities of organised crime groups involved in the drug markets, and social reuse of confiscated assets. 1.3. International cooperation with third countries or regions and involvement of relevant EU agencies. 2. Increase detection of illicit wholesale trafficking of drugs and drug precursors at EU points of entry and exit The drug markets in the EU need to be viewed from both global and regional 23 perspectives. There are specific challenges associated with different regions that make certain points of entry by sea, land or air into and out of the EU a high priority in terms of illicit wholesale trafficking of drugs and of precursors, which include new and not controlled or monitored precursor chemicals. Particular attention should be paid to 24 ‘designer-precursors’ as these chemicals are currently predominantly used in the illicit synthetic drug production in the EU and pose particular challenges for the law enforcement authorities. The entry and exit points (hubs) used for drug trafficking in containers or cargo may cause disruptions of EU trade, fuel corruption and undermine good governance. Furthermore, the EU’s external borders (maritime, land and air) have inherent vulnerabilities that can be exploited in the context of the drug trade. In particular, the maritime and aviation domains surrounding the EU’s borders are strategically important for monitoring in terms of abuse by drug traffickers. More than 70% of the EU external borders are maritime. Hence, major known ports, airports and land entry and exit points in the EU used as hubs for wholesale drug trafficking should be put on a high priority list for actions targeting drug trafficking. Measures should include enhanced customs risk analysis of containers and cargo, profiling, intelligence sharing and effective cooperation across and between relevant EU agencies and law enforcement, customs and border control of Member States and relevant agencies of partner countries. Improved exchange of information and closer cooperation between custom and police authorities has been identified as critical in the fight against drug smuggling. Attention should also be paid to further developing and 23 Developments in drug production in Latin America and Afghanistan have a clear impact on the EU drug market. China (and to a lesser extent India) is important as a source country for drug precursors and new psychoactive substances. In some neighbouring countries, such as Morocco, Turkey and the Western Balkans, there are organised crime groups that are closely linked to ethnically-based groups residing in the EU, which is changing the dynamics of drug supply. Africa is important because of its growing role as a trafficking and transit area. See footnote 1. 24 Designer-precursors are close chemical relatives of a scheduled drug precursor that are purpose-made to circumvent controls by the authorities. 6

extending anti-corruption measures in relation to these hubs and to detecting any displacement effects resulting from effective interventions. Secondly, it is important to monitor maritime, land and air borders for illicit crossings in the context of the drug trade. Within this scope, situational awareness activities of all EU external borders should be reinforced including within Frontex in cooperation with Member States. Priority should be given to air and maritime borders due to inherent vulnerabilities, limited monitoring, as well as strategic importance of the general 25 aviation space, as well as the Atlantic Ocean and the Mediterranean Sea. During the COVID-19 pandemic, maritime shipping continued relatively unimpeded and trafficking opportunities remained available to organised crime groups involved in the wholesale 26 transportation of drugs to Europe. Activities such as those conducted by the Maritime Analysis and Operation Centre - Narcotics (MAOC-N) should be strengthened and expanded; e.g. monitoring of vessels and aircrafts of interest carrying illicit drugs at high seas and air space surrounding the known abused EU maritime borders and airspace with the goal to intercept them before or when they reach their first EU port of entry. In this context, the general aviation space also poses a risk to the EU’s security and is increasingly abused by drug traffickers, while remaining under-monitored. International cooperation in the area of maritime and air traffic will remain key to improved intelligence and real-time action capability of Member States and EU agencies tasked with border security. Priority areas to address: 2.1. Smuggling of drugs in and out of the EU by using established trade channels (legal channels). 2.2. Illicit or undeclared crossing of the EU borders. 3. Increase effective monitoring of logistical and digital channels exploited for medium and small-volume drug distribution and increase seizures of illicit substances smuggled through these channels in close cooperation with the private sector The drug market is increasingly digitally enabled. Both the surface web and darknet markets are used for online drug sales, as are social media and mobile communication apps. The use of these technologies has made the distribution of drugs, new psychoactive substances, precursors and equipment needed for drug production significantly easier and created new challenges for law enforcement and public health. The trafficking of drugs using post and express services affects all Member States, and a number of countries are 27 seeing considerable increases in letters and parcels containing drugs. The specific routing of postal items can vary widely, including direct routes from source to destination or via EU transit hubs and non-EU locations. These postal items can either originate from within the EU or across the EU external borders. 25 Aviation includes scheduled air transport, including passenger and cargo flights operating on regularly scheduled routes, and general aviation, which includes all other commercial and private civil flights. 26 See footnote 5. 27 For more, see footnote 1. 7

Consequently, there is a need for an improved and coordinated monitoring and analysis of the threats posed by the accessibility of drugs via social media platforms, apps, 28 internet/darknet market places , as well as the use of online payments (including cryptocurrencies) and encrypted digital communication. In this context, engagement with the private sector should be enhanced. Secondly, stricter monitoring of shipments containing illicit substances is needed in close cooperation with postal and express services. The role of new technologies and artificial intelligence can be examined in improving controls and procedures including risk 29 assessment of postal items , with the possibility of fully implementing advanced electronic data on all items that come from key source countries (international and EU). Thirdly, cross-border rail transport connections and fluvial channels and the general aviation space can be exploited as possible drug trafficking channels and are currently insufficiently monitored by law enforcement. More awareness is needed to reinforce monitoring and targeted risk-based investigations of smaller sea harbours and fluvial ports, small/local airfields, and train stations. Priority areas to address: 3.1. Digitally enabled drug markets. 3.2. Postal and express services. 3.3. Cross-EU rail and fluvial channels and the general aviation space. 4. Dismantle drug production and processing, prevent the diversion and trafficking of drug precursors for illicit drug production, and eradicate illegal cultivation Drug production results in health and safety risks as well as environmental damage. Preventing the production of drugs in Europe and in partner countries will contribute significantly to reducing the supply and availability of drugs on the domestic EU market and for export. The role of the EU as a significant production area for synthetic drugs and cannabis also results in damage to the environment through the dumping of chemical waste and creating risks both to those involved and to the communities where production is located. Tonnes of chemical waste created during synthetic drug production are disposed of in illegal dumping sites every year. For example, it is estimated that 30 producing 1 kg of amphetamine creates between 20 and 30 kg of waste. The production of some precursors from alternative chemicals also produces a significant amount of waste, even before the synthetic drug production process takes place. That being so, further efforts of law enforcement authorities are needed to detect and dismantle illicit synthetic drug laboratories as well as stop exports of drugs produced in 28 For example, it is estimated that about two thirds of the offers on darknet markets are drug-related, with the remainder related to a range of other illicit goods and services. More on digitally enabled drug markets see footnote 1. 29 Postal item: an item addressed in the final form in which it is to be carried by a postal service provider. In addition to items of correspondence, such items also include for instance books, catalogues, newspapers, periodicals and postal parcels containing merchandise with or without commercial value. 30 See footnote 1, p. 162-3. 8