Three Weeks in Europe 17 December 2001 - 6 January 2002

11.01.2002 | Euroskop

Three Weeks in Europe17 December 2001 - 6 January 2002

EU news in brief

EU pushes for big boost to WTO Doha Global Trust Fund for Developing Countries

The European Union will on Monday push for a big increase in the target amount for the Doha Development Agenda Global Trust Fund, which is intended to help developing countries with trade-related technical assistance. At the World Trade Organisation General Council meeting on 19 December in Geneva, the European Commission pressed for a 50 percent increase to the target, to bring it up to €15 million from the current target of just over €10 million. This would allow the WTO to step up its technical assistance support to Developing Countries, following the successful outcome of the WTO's ministerial meeting in Doha, Qatar in November 2001. In advance of the Geneva meeting, EU Trade Commissioner Pascal Lamy said: "We took a very important step in launching a Development Agenda in Doha. Now we need to pull out all the stops to help countries take part effectively in negotiations and to make best use of the Doha outcome. The European Union will be making a substantial contribution to the new Trust Fund, in line with our contributions to existing WTO Trust Funds over the last six years."

[Background paper IP/01/1836]

Loyola de Palacio welcomes the final agreement on working time in road transport: a major breakthrough for "Social Europe"

The Council of Ministers and the European Parliament reached agreement on a proposal for a directive on the working time of lorry drivers which is designed to regulate working time at European level so that the average weekly working time may not exceed 48 hours but can be extended to 60 hours if the average of 48 hours per week is not exceeded during a four-month reference period. The agreement foresees the inclusion of self-employed drivers seven years after the entry into force of the directive. However, two years before this deadline, the European Commission will have to submit a report assessing the impact of the exclusion of self-employed drivers, which will allow a better definition of the conditions of their integration within the scope of the directive, taking into account the particular circumstances in each Member State. Loyola de Palacio, the Vice-President with responsibility for transport and energy, welcomed this agreement which "represents a crucial breakthrough for "Social Europe" in a hitherto excluded sector." She also stressed that "over and above the enforcement of fundamental social rights, this directive will help to improve road safety: we have taken a vital step towards safer and more competitive road transport which should subsequently be followed up by agreement on our other proposals concerning driver training and certificates and harmonised rules governing driving bans for lorries".

[Background paper IP/01/1851]

The euro Changeover Information Network (CIN)

As mandated by the Ecofin Council and the European Council, the Commission has put in place a European network to provide up-to-date information on the changeover to the euro. A Commission team will be organising a constant exchange of information between the principal actors and producing regular reports on the progress of operations. If necessary, it will also prepare draft common positions of the Ministers, which will then be discussed by the Economic and Financial Committee (Treasury Directors and representatives of each country's central banks).

On the basis of the information compiled by the Commission's Changeover Information Network, Commissioner Pedro Solbes and the Directorate-General for Economic and Financial Affairs will be monitoring the changeover to the euro each day starting on 30 December 2001.

[Background paper MEMO/01/447]

EU and US agree on temporary compensation in copyright dispute

The European Union and the United States agreed on a temporary solution of their dispute over music copyright. The dispute was over the way in which smaller bars, shops and restaurants in the US have hitherto played music without paying royalties. This agreement came during a meeting between EU Trade Commissioner Pascal Lamy and his counterpart, US Trade Representative Robert Zoellick. A World Trade Organisation disputes procedure last year found in favour of the EU. 'We have agreed on a process that will result in a US financial contribution to support projects and activities for the benefit of European music creators,' Commissioner Lamy said at a joint press conference with Ambassador Zoellick in Brussels. However, the US is still obliged to bring its legislation into line with its WTO obligations. "This is a good example of how we can manage our problems in a co-operative manner, while keeping in mind our international obligations and commitments.

[Background paper IP/01/1860]

Employment: New high-level report says EU labour markets must be more fluid

A high-level, independent task force on skills and mobility says in its new report to the Commission that there are still too many obstacles to real labour mobility in the EU. The report, which diagnoses the main problem areas and presents a series of recommendations, calls for more and better basic language training, ICT skills, simpler systems for transferring pensions and social security rights and an overhaul of systems to regulate professions and recognise skills and experience acquired in another member state. Simple lack of information about job options abroad can also be a problem. This independent report, commissioned by Anna Diamantopoulou, will now give the Commission a firm basis to push ahead with its Action Plan for EU-wide labour markets by 2005. The Action Plan is scheduled to be presented to the Barcelona summit of Spring 2002 as part of the Commission's new EU objective of 'managing change'. For more information:

http://europa.eu.int/comm/employment_social/empl&esf/news_en.htm

http://europa.eu.int/comm/dgs/employment_social/key_en.htm

[Background paper IP/01/1868]

Commission prepares its language services for enlargement

The Commission adopted two consultative documents and an action plan on its language-related preparations for enlargement. The aim is to safeguard multi-lingualism by ensuring that costs are kept under control despite the foreseen arrival of up to ten new languages as of 2004. This will be achieved through a series of modernisation measures, including better planning and coordination among services, establishing a permanent dialogue between the language services and their clients, better use of support staff, new technologies and external resources and the reduction of translation work on draft documents. Discussions will now start with Staff Unions on issues related to working conditions of staff.

[Background paper IP/01/1869]

Commission adopts proposals for modifying Staff Regulations and implementing a new appraisal and promotion system for its staff

The European Commission has adopted a set of modifications to the Staff Regulations as well as draft implementing provisions for the new appraisal and promotion system. These texts formalise the decisions adopted by the Commission on the policy substance throughout 2001, on the basis of negotiations with the Staff representatives. The Commission will now submit these proposals to the Interinstitutional Staff Regulations Committee (on which representatives of both staff and the administrations of the EU Institutions sit) for opinion. After having received the opinion, expected in March 2002, it will submit the formal proposal for the modification of the Staff Regulations to the Legislative Authority, and immediately start implementing new appraisal and promotion system.

Shops switch to the euro

Following the warm welcome given to the euro by the European public on 1 January, the changeover operations went smoothly on the first day of business in the Union. The level of business activity on 2 January was normal and a significant number of cash transactions took place in euros in several Member States. Many retailers across the euro area gave change in euros. No major logistical problems were reported. Queues, particularly in banks, were longer than on normal business days but proved manageable, and all customers were served. A large number of people now have euro notes and coins in their pockets, but there is some way to go before the changeover is completed. Many people in small towns and villages have still not replaced their national currency with euros and the practical arrangements for withdrawing national currencies are only just starting. The Commission will continue to monitor the situation closely.

[Background paper IP/02/5]

Cash payments: euro makes further headway

During the second business day of the new year the use of the euro moved ahead according to plan. On average, 40% of transactions were carried out in euros and 97% of ATMs had been converted so as to be able to dispense euros. The general public have attempted to spend their remaining national currency notes and coins and to receive change in euros during these first few days. This is a clear indication that they would like to switch over exclusively to the euro as soon as possible. Queues in banks continue to be longer than usual but the situation in the retail sector returned to normal on 3 January although the big test will come on Saturday. People's enthusiasm for the new currency continues to be the main factor in its success.

[Background paper IP/02/9]

Commission meets Spanish Presidency in Madrid on 8 January

The European Commission will hold its traditional meeting with the incoming Presidency of the European Union in Madrid on Tuesday 8 January 2002.

In addition to plenary meetings between the Commission and the Spanish Government, individual Commissioners will meet Ministers bilaterally to discuss issues for which they are particularly repsonsible.

At the invitation of the Spanish Government, the Commission will attend a concert to mark the beginning of the Presidency at the Auditorio Nacional de Música de Madrid on Monday 7 January.

The Spanish Prime Minister and the President of the Commission will give a press conference at 13.00 on 8 January in the press room of the Spanish Government Spokesman. The Presidency website you can find at www.ue2002.es

Eurostat news

November 2001; Euro-zone unemployment stable at 8.5%; EU15 steady at 7.8%

Euro-zone seasonally-adjusted unemployment2 stood at 8.5% in November 2001 unchanged compared to October. Between November 2000 and November 2001, the unemployment rate has varied between 8.4% and 8.5%.

The EU15 unemployment rate was 7.8% in November, unchanged compared to October. It was 7.9% in November 2000.

Lowest rates were registered in the Netherlands (2.2% in October), Luxembourg (2.5%), Austria (4.0%), Ireland (4.1%), Portugal (4.2%), and Denmark (4.4% in October). Spains 13.0% remained the EUs highest rate.

In the last twelve months, the most important relative falls were recorded in the Netherlands (2.9% in October 2000 to 2.2% in October 2001), Denmark (4.8% in October 2000 to 4.4% in October 2001), Sweden (5.4% to 5.0%) and Italy (10.0% in October 2000 to 9.3% in October 2001). Austria (3.6% to 4.0%), Ireland (3.9% to 4.1%) and Portugal (4.0% to 4.2%) recorded the most important increases over the past year.

In November 2001, the unemployment rate of the under-25s was 16.9% in the euro-zone and 15.7% in the EU15. This compared to 16.4% and 15.6% respectively a year earlier. In November 2001, it ranged from 5.1% in the Netherlands (in October) to 25.0% in Spain and 27.4% in Italy (in October).

[Background paper STAT/1/02]

Flash estimate - December 2001; Euro-zone inflation estimated at 2.0%

Euro-zone annual inflation is expected to be 2.0 % in December, down from 2.1% in November, according to a flash estimate by Eurostat.

The euro-zone inflation is measured by the Monetary Union Index of Consumer Prices (MUICP). To compute the MUICP flash estimates, Eurostat uses early price information relating to the reference month from Member States for which data are available, as well as early information about energy prices. The estimation procedure uses regression and time series modelling to combine historical information with information on recent price developments into a total index for the euro-zone. No detailed breakdown is available. The estimation model is flexible with respect to available data but requires some information about price developments in the reference month. In fact, early information accounts for more than 50% of the weight for the MUICP. Further information can be found in Eurostat news release N° 113/2001, 5 November 2001.

Enlargement news

Spanish Presidency views on enlargement

The Spanish Presidency of the EU - which starts on January 1 - will make enlargement one of its key priorities said Spanish foreign minister Josep Piqué, announcing his government's plans in Brussels on December 17. He recognised that "difficulties exist" in the "qualitative change" the process would bring to the EU, but insisted the project, now "in its decisive phase", provided "opportunities for all". "We will do everything we can so that negotiations can be closed with as many candidates as possible" under the Danish Presidency in the second half of 2002. He also envisaged special attention to Bulgaria and Romania, and efforts "to give Turkey a perspective for accession". But the principal task of the Presidency will be to obtain common positions among the member states on the three big chapters: agriculture, regional policy and budgetary matters and finance (which together represent 80% of EU spending, he pointed out). He said that despite possible "complications" from the fact that elections would be taking place during 2002 in several member states, "I'm sure we can reach agreements... We fully assume our responsibility".

Fontaine urges the case for candidates

In her remarks to the European Council in Laeken, European Parliament President Nicole Fontaine made two specific pleas for the candidate countries. She passed on the wish "that the presidents of the national parliaments of several applicant countries have expressed to me" for adequate representation in the discussions on the future of Europe - and particularly for representation in the Bureau of the Convention to be established. "Any step taken to demonstrate that the applicant countries are fully involved in this major reform process, which will affect them just as much as it does us, can only help to consolidate public support for membership of the Union, support which, in some countries, is weakening as the wait prior to accession drags on", she said.

The Parliament President also urged special attention to Bulgaria and Romania: "The Commission, followed by the General Affairs Council, has sent out a clear signal by stating that at least ten countries will be in a position to join the Union before 2004 and thus take part in the next European elections. May I draw your attention, however, to the adverse impact that such a statement might have on public opinion in Romania and Bulgaria, left on the sidelines without a fixed date for accession to the Union? I hope that they will be given an opportunity to catch up. Should it ultimately emerge that the countries in question do not meet the accession criteria, our responsibility would be to lay down with them a clear timetable demonstrating that they are already part of the European family", she argued.