The Week in Europe 14-20/01/02

24.01.2002 | Euroskop

EU news in brief

Enlargement and upgrading food controls are the challenges ahead - David Byrne at Green Week 2002

David Byrne, European Commissioner for Health and Consumer Protection, participated in the opening of the 9th East-West Agricultural Forum at Green Week in Berlin. He emphasised in his opening speech the prime importance the EU is attaching to food safety and reiterated the Commission's approach to take consumer interests into account in all policies. The next months will see the start of the operation of the European Food Safety Authority. Further challenges lie in ensuring the tough EU food safety legislation is transposed and implemented in the accession countries and in upgrading the EU control systems.

[Background paper IP/02/52]

National currencies have practically disappeared from circulation

On average, more than nine out of ten cash payments are made in euros. Close on three quarters of vending machines have been converted to the euro. Less than two weeks after the launch of the euro, very little national currency remains in circulation.

On Saturday the proportion of cash payments in euros averaged almost 92% (in volume terms). It is over 90% in virtually all the participating countries. The changeover to the euro is practically complete (with 95% or more of payments being made in euros) in five countries (Germany, the Netherlands, Ireland, Finland and Luxembourg). In all the participating countries very little national currency remains in circulation. The challenge of introducing the euro rapidly has been met thanks to the enthusiastic welcome given by the European public to their new currency, the very rapid conversion of cash machines and the fact that shopkeepers have abided by their undertaking to give change in euros.

Just under three quarters of vending machines have been adapted to the euro. The figure is above the average in six countries (the Netherlands, Ireland, Italy, Greece, Austria and Luxembourg).

A number of attempts to pass off poor-quality reproductions of euro notes (photocopies, prints of scanned notes, cut-out notes, etc.) are reported daily in virtually all the participating countries. No "serious" forgery of euro notes or coins has come to light.

Queues are not out of the ordinary in shops. Cash transport companies are now concentrating on collecting the old national currencies. Activity at bank counters has returned to normal in most participating countries.

The euro has eased itself smoothly into economic life.

Commission Employment report: "Employment may suffer in 2002 but employment policy must continue"

The Commission published Employment in Europe 2001- Autumn Update. Based upon the Commission's Autumn Forecasts (November 2001), the report describes the employment implications of the recent economic slowdown and the September 11 terrorist attack. It provides a detailed analysis of sectoral employment trends in the European Union. It discusses the Union's resilience to macroeconomic shocks, its capacity to adapt to change, and the role of confidence for employment performance.

As stressed by Commissioner Anna Diamantopoulou, "Employment policy is not a fair-weather strategy. Re-establishing confidence, making new European labour markets work and insuring all employees have the skills and tools to adapt successfully to change will help Europe to tackle the economic slowdown, and its impact on employment".

The full text of the report is available under "Key Documents" on the website of the European Commission, DG Employment and Social Affairs:

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

[Background paper IP/02/64]

Barcelona: time to deliver on reforms for growth, jobs and sustainability

The European Commission adopted its Spring Report for the Barcelona European Council entitled "The Lisbon Strategy Making Change Happen". It is now almost two years since the Lisbon European Council set the bold and ambitious ten-year goal of making the European Union the world's most dynamic, competitive, sustainable knowledge-based economy, enjoying full employment and strengthened economic and social cohesion. Since then, the European Council has made its Spring meetings the focal point for debate on economic, social and environmental policy issues. The European Council in Barcelona will review progress to date and agree the key priority areas for attention over the coming year.

[Background paper IP/02/68]

EU backs launch of Geneva-based office to help African, Caribbean and Pacific countries boost World Trade Organisation presence

EU Trade Commissioner Pascal Lamy inaugurated in Geneva a brand-new office to improve the representation of the interests of the 77 African, Caribbean and Pacific (ACP) countries' at the World Trade Organisation. The office, financed by an EU grant of €1.45 million, will help ACP countries co-ordinate their views and strengthen their position in WTO negotiations. It will also deliver technical assistance to individual ACP country representations in Geneva. Looking forward to the inauguration, Commissioner Lamy said: 'This is the most important programme any donor has set up to strengthen the presence of developing countries at the WTO in Geneva. Development issues must be at the heart of multilateral trade negotiations and we have to help ACP countries to put their views forward. In Doha, we promised to provide substantial trade-related technical assistance. Today we take a big step in this direction. Watch this space, as there is more to come.'

[Background paper IP/02/70]

More Europe - speech by Romano Prodi at the European Parliament

In his speech Mr Prodi welcomed the success of the euro launch and presented Commissions priorities for 2002, which comprise: employment - need for an active employment policy removing the obstacles that still prevent people from taking up employment or which make it difficult for them to keep their jobs; reform, and completing the internal market - interconnection of national markets and to speed up the integration of financial markets, to finish the reform that is under way; and education, training, and research - more heavily investing in these areas.

[Full speech SPEECH/02/7]

New indicator-based forecast for euro area GDP for fourth quarter of 2001 and first quarter of 2002

A new indicator-based model for quarterly GDP growth for the euro area, developed by the Directorate General for Economic and Financial Affairs of the European Commission, predicts for the fourth quarter of 2001 a range of 0.3% to 0.1% for the percentage change of GDP vis-ŕ-vis the previous quarter. This follows a 0.1% increase of the euro area GDP in the third quarter 2001 according to Eurostat's latest update published on 10 January. For the first quarter of 2002, quarter on quarter growth is forecast to be in the range of 0.1% to 0.4 %. It would imply that the trough of the recent slowdown is situated in the last quarter of 2001, but also that activity will only moderately accelerate at beginning of this year.

Full document available on:

http://europa.eu.int/comm/economy_finance/indicators_en.htm

European Parliaments opinion on the 6th environmental action programme

The European Parliament adopted its opinion on the 6th environmental action programme on 17 January. Strict timetables and objectives were rejected, however, certain proposed amendments were accepted. These changes declare that: the thematic strategies should be ready for implementation by 2003 at the latest (the Commission had proposed five years) and their adoption should be subject to co-decision; environmentally negative subsidies should be recorded and proposals for "progressively eliminating the more negative subsidies" made; environmental taxation should be promoted, preferably at community level; greenhouse gas emissions should be reduced from 1990 levels by 1 per cent a year until 2020; measures should be taken to combat environmental crime.

For the action plan see

http://europa.eu.int/comm/environment/newprg/index.htm

Election of the President of the European Parliament

After three rounds of votes, Pat Cox was elected President of the European Parliament on 15 January. In his political statement he said: We are on the brink of the most important event in recent European history, the enlargement of the European Union. The successful completion of enlargement negotiations is the overarching political priority. Reuniting Europe brings together a divided Europe to share common values and economic prosperity.

The European Parliament has a duty to reconnect Europe to its citizens. It must operate with transparency, efficiency and accountability. The next Intergovernmental Conference must simplify and streamline the Treaties.

The European Parliament is the only forum in Europe where European laws are made in public. The European Parliaments increased legislative responsibilities require a thorough reform of its working methods. See also: Candidate's site

Election of the President of the Court of Auditors

Juan Manuel Fabra Vallés (Spanish member of the Court) was elected 9th President of the Court of Auditors by the 15 members of the Court on 16 January, 2002. His term of office, beginning on 16 January 2002 and ending on 15 January 2005, is renewable. For Court of Auditors site see http://www.eca.eu.int/

[Background paper ECA/02/01]

Progress on ratification of Nice Treaty

There has been progress over recent months in ratifying the Nice Treaty - on which progress with EU enlargement remains dependent. Of the 15 member states, six have now ratified (Denmark, Luxembourg, France, Spain, the Netherlands, Austria), four plan to ratify very soon, perhaps in January 2002 (Germany, Portugal, Finland and Sweden), three have ratification procedures underway (Belgium, Italy, the UK), and two are special cases: in Greece a draft law is to be presented in February 2002, and in Ireland, where there was a "no" in the referendum in March 2001, another referendum is expected in autumn 2002.

Enlargement news

Candidates progress on enterprise hampered by finance access problems

Access to finance is still a problem for small businesses in candidate countries, the European Commission has recognised. This is the area in enterprise policy in which further progress is mostly widely needed, especially to create sound financial systems or to introduce innovative financial schemes based on private funding, according to a new Commission study, "Candidate Countries 'Best' Report", issued on January 11.

The 'Best' procedure supports EU member states in exchanging best practices to improve their performance, and it is now being opened to the candidate countries. This report looks at about 200 entrepreneurship and competitiveness-promoting measures taken by the candidate countries' authorities, business communities and other bodies such as universities, research and technology centres, and regional development agencies. It notes that enterprise policy is only a recent priority for most candidate countries, but it says that there has nonetheless been some striking progress. The candidate countries are starting to meet EU enterprise policy goals in areas such as reducing the time it takes to register a company, education and training for entrepreneurship and cultivating business clusters, the Commission observes.

Candidates are cutting unnecessary administrative burdens: in Malta it takes just one working day to register a company. They are also educating young people for entrepreneurship, where most candidate countries have taken innovative initiatives such as creating "model" companies in secondary schools or universities. In Hungary last year, 10, 000 students were involved in such training initiatives, in co-operation with local enterprises. Business co-operation is being enhanced by support for the development of industrial clusters, for example in Slovenia's transport and tool-making sectors, particularly in the region around Koper harbour. Business support networks are well developed almost everywhere in candidate countries, especially in Poland where 153 regional offices provide services for enterprises, or in Turkey where almost 75,000 SMEs can share workshop and/or laboratory facilities in 313 industrial zones for small businesses all over the country.

"Fostering competitiveness and building an entrepreneurial environment are key priorities in the Commission's strategy for enlargement," said Enterprise and Information Society Commissioner Erkki Liikanen. "The Commission is strongly committed to ensuring that the March 2000 Lisbon European Council's targets will be achieved in the enlarged Union". The Commission plans to step up dialogue with candidate countries in this field.

Economic and social committee's ambitious plans on enlargement

The EU's Economic and Social Committee has announced an ambitious programme of involvement in enlargement for 2002. It says it will integrate enlargement into the full range of its work, by involving representatives of organised civil society in the candidate countries more closely, and will step up its contribution to developing organised civil society and establishing consultative structures in the candidate countries. ESC opinions are currently being prepared on the future of the Common Agricultural Policy and economic and social cohesion.

The work of the ESC's joint consultative committees established with the economic and social organisations of (up to now) Bulgaria, Hungary, Poland, Romania, Slovakia, Slovenia and Turkey will focus on these two issues. Two further consultative committees, with the Czech Republic and Estonia, are to be set up in 2002. The Committee also plans to intensify co-operation with those applicant countries which do not have a joint consultative committee, either by means of opinions (Latvia, Lithuania) or local meetings.

Hearings with civil society organisations not represented on the JCCs are planned, to maximise transparency in the accession negotiations and to improve understanding of EU policies. The Committee is drawing up an own-initiative opinion on the economic and social consequences of enlargement in the applicant countries, and organisations from the candidate countries will also be involved in its preparation of the opinion. The Committee will also draw up an own-initiative opinion on the pre-accession funds (Phare, ISPA and SAPARD). And the EU/European Economic Area (EEA) consultative committee will discuss enlargement and the future of the EEA at its annual meeting, to be held in Iceland in June 2002.