The Week in Europe 03-09/12/01

EU news in brief

Financial services: Commission urges Member States and the European Parliament to deliver on time

The case for an integrated European financial sector is greater than ever, underlines the European Commission in its latest progress report on the Financial Services Action Plan. The launch of euro notes and coins, the economic slowdown, turmoil in financial markets in the aftermath of the tragic events of 11 September and the fight against terrorism require urgent measures to shield financial markets against instability, boost consumer confidence and stimulate growth. The report reviews progress in meeting the targets set out by the European Councils in Lisbon and Stockholm for the integration of EU financial markets by 2005 and of securities markets by 2003. It notes important progress both on the legislative and non-legislative front. The adoption of the anti-money laundering Directive, agreement on the cross-border payments Regulation, adoption of the European Company Statute, political agreement on the distance marketing Directive and the establishment of the committees for securities proposed in the Lamfalussy Wise Men's report are some of the breakthroughs achieved in the last semester. Detailed and regularly updated progress on the Action Plan measures is available on the Internet at:

http://europa.eu.int/comm/internal_market/en/finances/actionplan/index.htm

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EU Commissioner for Trade Pascal Lamy and EU Commissioner for External Relations Chris Patten visited Russia on 5 December to promote greater EU-Russia integration: a future common European economic space and Russia's accession to the WTO

The EU and Russia are genuine strategic partners. The relationship encompasses trade and economic relations, a broad-ranging political dialogue, cooperation on justice and home affairs and security and defence cooperation. EU enlargement will bring the EU and Russia even closer together. The EU is not only Russia's largest market but also its largest trading partner. As the EU enlarges to take new members from Central and Eastern Europe in the near future, the EU could well become the destination of over 50% of Russia's exports. "It is undoubtedly in our mutual interest to nurture the continued growth of bilateral trade relations, to stimulate greater European investment in Russia and to support Russia's WTO accession", EU-Commissioner for Trade, Pascal Lamy said before leaving for Moscow.

Bilateral trade relation's web-site:

http://europa.eu.int/comm/trade/bilateral/russia/russia.htm

EU-Russia relation's web-site:

http://europa.eu.int/comm/external_relations/russia/intro/index.htm

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Round table on food and agriculture in Copenhagen: strategic re-thinking of food production in terms of quality, safety and costs

At a high level round table on 3 December in Copenhagen, David Byrne, EU Commissioner for Health and Consumer Protection, discussed the future of EU food and agriculture policy with leading Danish farming representatives, food producers, retailers, consumer experts and scientists. The debate focused on a strategic re-thinking of food production and food policy in terms of quality, safety and cost. Commissioner Byrne underlined the need for shifts in attitudes of both consumers and producers if the high expectations for food quality and the ambitious objectives of good agricultural policy are to be met. Industry, consumer and agricultural sector representatives welcomed the initiative as timely and of strategic importance. Further information on the Commission's food and agriculture initiative is available at:

http://europa.eu.int/comm/agriculture/foodqual/index_en.htm.

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New report on employment, cohesion and growth

Commissioner Anna Diamantopoulou issued a new report plotting achievements in EU employment and social affairs policy since the start of the Commission's term of office in October 1999. The flagship publication ”Employment, Cohesion, Prosperity" provides a full account of the European Employment Strategy; the Lisbon 'virtuous circle' of economic, employment and social policy; better labour market access for disadvantaged sections of society; mobility and new European labour markets; jobs in the information society; social dialogue; a productive and inclusive society; sustainable social protection; enlargement. Available initially in English, all other ten official language versions will be ready early in the New Year and an on-line text is due to be placed on the Europa site over the coming weeks. Requests for copies of the publication can be e-mailed to empl-info@cec.eu.int.

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Financial Services: Commission welcomes adoption of two new Directives on investment funds (UCITS)

The European Commission has welcomed the adoption by the EU's Council of Finance Ministers on 4 December 2001, of the two Directives on harmonised investment funds (UCITS), one of the top priority actions of the Financial Services Action Plan. Collective investment undertakings (such as unit trusts and SICAVs) constitute a major market sector, with assets of around €3.5 trillion. Adoption of the two Directives will benefit both investors and fund managers. The first Directive removes barriers to cross-border marketing of units of collective investment funds by widening the scope of assets in which they can invest. The second Directive gives management companies a "European passport" to operate throughout the Union and widens the activities which they are allowed to undertake as non-core services. It also aims to set a level playing field with "self-managed investment companies" which have not designated a management company. Last, it introduces the concept of a simplified prospectus which will provide more accessible, comprehensive information to strengthen investor protection.

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VAT: Commission welcomes political agreement on simpler invoicing rules

The European Commission has welcomed the political agreement reached on the Directive to simplify and modernise VAT invoice rules at the 4th December Council of Finance Ministers. The measure will be of significant practical benefit to firms operating within the Internal Market because it will ensure that they have only to deal with a single, simplified set of rules on invoicing valid throughout the EU instead of fifteen different sets of legislation. At the same time, the Directive will require Member States to recognise the validity of electronic invoices and allow cross-border electronic invoicing and electronic storage. The result will be a significant reduction of firms' administrative costs, in particular for medium-sized and small firms and an important boost to electronic commerce, currently hampered by obsolete invoicing rules. The simplified rules should also facilitate tax authorities' efforts to fight fraud. The Council will adopt the proposal formally once the text agreed has been translated into all eleven of the EU's working languages. The Directive will have to be implemented by 1 January 2004.

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Europeans and the international crisis

Majority support for military actions and massive support for humanitarian aid rather than arms, concerted action by the EU and its Member States rather than isolated intervention, support for restoring democracy and the reconstruction of Afghanistan, these are some of the main results of the opinion survey (Eurobarometer Flash) conducted by the Commission of a sample of 15 000 residents of the EU about the international crisis generated by the events of 11 September.

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Poul Nielson re-launches EU-funded project for vulnerable women in Kabul

On a visit to Kabul, Poul Nielson, the European Commissioner for Development and Humanitarian Affairs, has formally re-launched a "Food for Work" project funded by ECHO (the Humanitarian Aid Office of the EU). The project, which is implemented by MEDAIR, one of ECHO's NGO partners in Afghanistan, involves home-based quilt production by vulnerable women.

Commission wants broad mandate for the Future of Europe Convention

The European Commission has adopted a Communication on the future of the European Union. It argues that the European Council in Laeken should adopt a broad mandate for the forthcoming Convention on institutional reform. The key questions which the Convention should tackle are: what should Member States do together in the future Union?; how should democratic legitimacy and effectiveness of the Union be improved? The Commission's paper stresses the importance of the "Community method" for European policy-making. This method, based on the tried and tested balance between the key European Institutions - Commission, Council and Parliament, will be indispensable for achieving better democracy and effectiveness in an enlarged Union.

Statement of European External Relations Commissioner Chris Patten on outcome of Bonn talks on Afghanistan

"I welcome the breakthrough reached this morning at the UN-sponsored talks in Bonn on the future of Afghanistan. I congratulate UN Special Representative Lakhdar Brahimi and his team, as well as the Afghan leaders on achieving this important step towards the stabilisation of Afghanistan. This is an important - and long-awaited - day for the Afghan people. It should lay the foundation for a stable, peaceful and democratic future for the country and will provide the international community with a partner for providing reconstruction assistance. The European Commission is mobilising its Rapid Reaction Mechanism to provide immediate support for the task force led by UNSR Brahimi and for an initial package of support to the interim administration to help it to address the formidable challenges it faces."

The Commission wishes to reduce the volume of Community legislation by at least 25% by January 2005

The European Commission adopted a communication on simplifying and improving the regulatory environment. The document is intended for the Laeken European Council and is designed to send a strong political message to the Community institutions and the Member States about the way Community laws and regulatory instruments are prepared and applied. The Commission is aiming to reduce the volume of Community legislation by at least 25% before the end of its term of office. It has also decided to withdraw a hundred or so pending legislative proposals which it does not regard as being of topical interest.

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Asylum: Commission paper seeks balance between improving security and protecting refugees rights

The European Commission approved a Working Paper which aims to establish a balance between improving internal security in Europe, following the tragic events of 11 September, and protecting the rights of refugees and other values which are essential to European democracies. This Paper has been prepared in response to the Extraordinary Justice and Home Affairs Council Meeting of 20 September. It will provide a basis for discussions among Member States as requested by the JHA Council, but the Commission also considers it a contribution to the wider debate with civil society.

For more information see

http://europa.eu.int/comm/justice_home/index_en.htm

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Single European Sky: Loyola de Palacio denies accusations of privatisation and sell-off of air traffic management

On 10 October 2001, the European Commission adopted a package of measures on air traffic management with a view to implementing the Single European Sky by the end of 2004. The initial reaction of the parties concerned was positive. Although all interested parties, including the social partners, were involved in the discussions on the various aspects of the Single Sky, the French trade unions have interpreted the initiative as a will to liberalise and privatise air traffic management. «Let there be no misunderstanding: the purpose of the Single Sky is not to boost competition or privatise air traffic control. It is particularly regrettable that some trade unionists are tempted to question the Commission's commitment to the safety of air transport. I call on all those making such claims to read the Commission's proposals carefully» said Loyola de Palacio, Vice-President in charge of transport and energy. She added: ”The Single Sky initiative recognises that air traffic control is a service provided in the general economic interest which primarily concerns maintaining the safety of air traffic. It promotes the establishment of a regulatory framework in response to demands from airlines and passengers in order to ensure efficient management of air traffic and to remedy the weaknesses of the current system.”

For more information see

http://europa.eu.int/comm/dgs/energy_transport/index_en.html

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Cyprus: Diamantopoulou plans to bring together Greek and Turkish-speaking communities on EU policies for social dialogue, the disabled and equal opportunities

Anna Diamantopoulou plans to bring together Greek and Turkish-speaking communities in Cyprus to present and discuss what the EU does to promote social dialogue between trade unions and employers, rights for disabled people and equal opportunities for women and men. The Commissioner has scheduled meetings to take place on the "Green Line" separating the two communities in order to bring together NGOs and social partners from both sides. In the hope of obtaining a positive response for a constructive and beneficial dialogue and with a view to better preparing such an important event, the Commissioner addresses all invitations and full information material in both the Greek and Turkish languages. Meeting participants will all be able to speak their own language.

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e-Economy: Commission outlines steps to maximise benefits for European enterprises

A Communication on the impact of the e-Economy on European enterprises was presented by the European Commission to the EU's Council of Industry Ministers on 5 December. The Communication advocates systematically integrating the "e-dimension" into policies affecting enterprises. It also proposes to develop a policy agenda in 2002 to maximise the benefits of the e-Economy for European enterprises. In its analytical part, the Communication takes account of the considerable changes that have taken place in the e-Economy since the Lisbon Summit set the ambitious goal of making the EU the world's most "competitive and dynamic knowledge-based economy" within 10 years.

For further information:

http://europa.eu.int/comm/enterprise/ict/index.htm

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Eurostat news releases

Euro-zone unemployment stable at 8.4%; EU15 steady at 7.7%

Euro-zone seasonally-adjusted unemployment stood at 8.4% in October 2001 unchanged compared to September, Eurostat reports on 4 December. It was 8.5% in October 2000. The EU15 unemployment rate was 7.7% in October, unchanged compared to September. It was 7.9% in October 2000. Lowest rates were registered in the Netherlands (2.2% in September), Luxembourg (2.5%), Ireland (3.9%), Austria (4.0%), Portugal (4.3%) and Denmark (4.4%). Spain's 12.9% remained the EU's highest rate.

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Enlargement news

Commission helps to simplify fruit and vegetable trade with Hungary

The Commission has just adopted the first regulation approving inspections in non-member countries to check that fresh fruit and vegetables conform with our marketing standards. "In adopting this decision, the European Union is showing its commitment to facilitating the fruit and vegetable trade with third countries, while guaranteeing protection of the interests of consumers," comments Mr Fischler, the Commissioner for agriculture, rural development and fisheries. From now on, fruit and vegetables originating in Hungary can be imported without routine inspection by the Member States if the products have been checked beforehand in Hungary.

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Turkey: European Commission approves EUR 75 million payment under Structural Adjustment Facility

The European Commission has approved the payment of €75 million under its Structural Adjustment Facility for Turkey. This follows completion of its assessment of Turkey's progress in meeting a series of conditions related to macroeconomic stability, deregulation, and reforms in the social security and agriculture sectors.

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Checking on the checkers - auditors get together

Improving the way that the candidate countries audit the management of EU funds was the focus of a meeting in Cyprus on 26 to 27 November of the European Court of Auditors and the presidents of the supreme audit institutions of the candidate countries. This is one of the major challenges identified in the European Commissions recent regular reports on enlargement - and one of the subjects that remains perpetually controversial across the EU.

The ECA's President, Jan Karlsson, said: "We all have to maximise our efforts to see that adequate and reliable financial control systems will be in place well before the accession date." There have been plenty of reports and recommendations prepared and adopted at earlier meetings of this type, he said. Now "the next step is to fully implement these, within the internal and external audit bodies in the candidates".

EIB backs Cyprus health and Czech motorways

The European Investment Bank, the European Union's long-term financing institution, is providing €50 million to the Republic of Cyprus for the construction and equipment of the new general hospital in Nicosia. This is the first EIB loan in the health sector in a candidate country. The funds are provided under the Bank's current €8.5 billion pre-accession lending facility, which runs up to the year 2003. Pre-accession facility lending is aimed at projects that will support the integration of candidates with the EU. A particular emphasis is being given to environmental protection, as well as communications infrastructure, industrial competitiveness and regional development. Cyprus has so far received €300 million under this facility. The EIB is also lending the Czech Republic €170 million for upgrading some 80 km of the country's motorway network, bringing total EIB lending for this scheme to €400 million. The work is mainly on Pan-European Priority Corridor IV. It brings total EIB lending for projects in the Czech Republic to €2,652 million, of which €820 million were for road and motorways schemes.

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