The Week in Europe 21-28/01/02

EU news in brief

Go Digital Awareness Campaign 2002

The Go Digital Awareness Campaign 2002 was launched by Enterprise and Information Society Commissioner Erkki Liikanen in Berlin at a conference organised by the German Confederation of Skilled Crafts (ZDH) on January 21st, 2002. The campaign aims to make small and medium-sized enterprises (SMEs) more aware of opportunities in e-business, to refine best policy practice to this end and to help them develop strategies for accessing the e-Economy. SMEs are still lagging behind larger enterprises in Internet use. Although they cannot always trade products and services profitably on-line, the Internet can nonetheless be a very powerful tool for maximising the choice of goods and services that they buy. This in turn can help them sharpen their competitive edge, by securing better quality at lower cost. Further information on the Go Digital Awareness Campaign can be found under the Go Digital web site of the European Commission:

http://europa.eu.int/ISPO/ecommerce/godigital/Welcome.html

[Background paper IP/02/92]

European Food Safety Authority adopted - Council agrees key legislation putting a new European-wide food safety system in place

The Council of Agriculture Ministers has adopted the Regulation setting up the European Food Safety Authority (EFSA) and a new framework for EU food law. The adoption of this key legislation marks a record-time agreement between all Member States in the Council and all political groups in the European Parliament on a major overhaul of the EU food safety system and the way scientific advice feeds into policy making. It completes the first phase of the wide ranging reform of the EU food law launched by the Prodi Commission in its January 2000 White Paper on Food Safety. Commissioner Byrne announced at the Council meeting that this fast-track adoption of the Regulation clears the way for immediate action to get the Authority fully operational at its temporary Brussels' location this year. As a first step the European Commission will launch procedures for selecting and appointing a Management Board and Executive Director. In the meantime the current system for scientific advice will continue to function until the EFSA Scientific Committee and Panels have been set up. For more detail see

http://europa.eu.int/comm/food/fs/efa/index_en.html and Questions and Answers about the European Food Safety Authority at http://europa.eu.int/comm/dgs/health_consumer/library/press/press135_en.pdf

The EFSA will be publishing its own web site at www.efsa.eu.int shortly.

[Background paper IP/02/100]

Data protection: Standard contractual clauses to facilitate personal data transfers to third countries for processing

The European Commission has adopted a Decision setting out standard contractual clauses for the transfer of personal data to processors (subcontractors) established in non-EU countries that are not recognised as offering an adequate level of data protection. The Decision simplifies the process for companies and organisations wishing or needing to transfer personal data for processing in a third country. In particular, the Decision offers companies a straightforward means of complying with their obligation to ensure "adequate protection" for personal data transferred to countries outside the EU. It complements Decision 2001/497/EC (IP/01/851) which laid down standard clauses for the transfer of personal data to controllers.

Further information about this decision and the standard contractual clauses are available on the Europa website:

http://www.europa.eu.int/comm/privacy

[Background paper IP/02/102]

Statement by Enlargement Commissioner Günter Verheugen on Austrian petition against Temelin Nuclear Plant

"I take note of the result of this petition. It confirms that there is a strong opposition in Austria to nuclear energy. It also confirms that an overwhelming majority of the Austrian population does not want to endanger good neighbourly relations with the Czech Republic.

The Commission assumes that in the context of Parliamentary discussions, the results of the Melk process will be acknowledged and that the commitments made will be respected. Meanwhile, the accession negotiations with the Czech Republic will proceed according to plan".

The European Union's contribution to the reconstruction process of Afghanistan

The EU is fully committed to all aspects of the Afghan process: it hosted the Bonn Conference which provided the blueprint for Afghanistan's future; it has participated fully in all military and security aspects; it has been a major donor of humanitarian aid (352 million Euros since September 2001 alone); and it has from the outset repeatedly declared its clear support for the long term reconstruction effort.

[Background paper IP/02/113]

Revitalising the railways: Commission makes proposals to speed up establishment of an integrated railway area

The European Commission has proposed a new package of measures to revitalise the railways by rapidly building an integrated European railway area. The five measures are based on the guidelines set out in the recent White Paper on transport and aim at greater safety, interoperability and opening of the rail freight market. To give strong impetus to this process, the Commission has also proposed establishment of a European Railway Agency to steer the technical work on safety and interoperability.

[Background paper IP/02/118]

Information and communication technologies crucial to business logistics, says Commission survey

Information and Communication Technologies (ICTs) are bringing about a real revolution in business-to-business (B2B) relations. Although less apparent in business-to-consumer (B2C) transactions, their impact on enterprises is substantial. So says a survey, published by the European Commission, about the impact of ICTs on the logistics of businesses across Europe. Based on replies from a sample of 180 companies in February-September 2001, the survey cites lower stocks, faster delivery times, changes in job profiles and a shift from competition to co-operation among enterprises as some of the most tangible effects of ICTs on B2B relations. For big companies, most ICT headaches are to do with managing large and complex networks and telematics systems. Small and medium-sized companies (SMEs) master smaller, more flexible electronic platforms and applications relatively easily, but sometimes lack appropriate finance to go digital in logistics. For further information: http://europa.eu.int/comm/enterprise/services/business_services/index.htm

[Background paper IP/02/121]

Commission adopts blueprint to help put information and communication technologies at service of world's poor

Information and Communication Technologies (ICTs) offer both challenges and promises for social and economic development and this is nowhere more apparent than in the world's poorest countries. This is the message of the Communication on "Information and Communication Technologies in Development: The role of ICTs in EC development policy" adopted by the European Commission. The Communication states that the EU will support and use ICTs not as a priority sector, but rather as a tool to achieve the objectives within the focal areas and crosscutting themes of the new EC development policy.

[Background paper IP/02/116]

Barcelona European Council: Commission launches proposal for comprehensive biotechnology policy

The European Commission adopted a major policy initiative for the development of life sciences and biotechnology in Europe. This is one of the main building blocks of the Commission's contribution to the Barcelona European Council in March 2002. This strategy paper includes an action plan with recommendations for Member States, local authorities, industry and other stakeholders. It aims to help Europe master the frontier technologies that could make a major contribution to the goal, set at the March 2000 Lisbon European Council, of becoming the world's most competitive, knowledge-based and sustainable economy within a decade. The strategy's co-operative and consistent approach to fostering sustainable development is designed to address the complex ethical and societal concerns and support the broad public debate. For further information: http://europa.eu.int/comm/biotechnology/introduction_en.html

[Background paper IP/02/122]

Making the polluter pay: Commission adopts liability scheme to prevent and repair environmental damage

The European Commission adopted a proposal for a Directive on environmental liability which aims both to prevent and restore environmental damage. The pollution of water, damage to biodiversity and land contamination which causes serious harm to human health would all be covered by this Directive. Operators of certain risky or potentially risky activities who cause environmental damage would be held responsible for restoring the damage caused, or made to pay for the restoration. All operators causing damage to biodiversity, by fault or negligence, would equally have an obligation to restore the damage.

[Background paper IP/02/127]

European Commission announces next steps in implementing new senior staff policy

The Commission set out the way in which its Reform policies relating to appointments of senior staff will be implemented over the coming months. In particular, this decision will implement the Commission's 1999 commitment that A1 and A2 officials will be subject to mobility after 5 years and will not stay longer than 7 years in the same post. The implementation of this mobility rule for all staff - starting at the top - is part of the wider Reform agenda designed to promote merit and fresh thinking, and to allow staff to build their careers upon broad experience. Since the beginning of the Prodi Commission's mandate in 1999, the majority of the Commission's most senior officials have already made job moves as part of this policy. These steps will affect the remaining 15 Directors-General (DGs) and Deputy Directors-General (DDGs) who are now eligible for mobility. The staff changes which will take place in the coming months will be based on the principles for appointments that were set out in 1999: namely that merit is the primary factor, and that every effort should be made to respect the need for a balance of nationalities and for a better balance of qualified women and men in the most senior posts in the Commission. The Commission has also decided to appoint Catherine Day to the post of Director-General for the environment, which was published in July 2001.

[Background paper IP/02/124]

Barcelona: Commission calls for more and better action to reach EU job targets by 2010

The Commission has decided on a report and proposals to increase participation in EU labour markets. The report says that the EU must create 20 million new jobs of which 11-12 million for women and 5 million for older workers if it is to hit the Lisbon and Stockholm targets for employment by 2010. It also highlights the necessary policy responses to achieve this: more public funds for training workers, a focused review of tax/benefit systems, more work on combating gender pay gaps and looking again at how to reduce school drop-out rates. The report, designed to be a joint Council and Commission effort, will now go forward to the Barcelona summit.

[Background paper IP/02/134]

Frits Bolkestein urges decisive action on completing Internal Market

European Internal Market Commissioner Frits Bolkestein told the EU's Economic and Social Committee on 25 January that current economic uncertainty made it even more essential to take decisive action to release the full potential of the Internal Market. Only then can Europe become the most competitive economy in the world by 2010. "There is a difference between saying we will do something and actually doing it. The Barcelona European Council in March is an opportunity for our political leaders to reconfirm their reform credentials and to inject a renewed sense of urgency." Mr Bolkestein welcomed progress on telecommunications, e-commerce, the European Company Statute and the Financial Services Action Plan. However, faster action was needed on liberalising energy markets, the Community Patent, the Takeovers Directive and on public procurement. Europe also needed to tackle rigidities in the services market and tax obstacles to cross border activity.

[Full speech SPEECH/02/21]

Eurostat news

December 2001; Euro-zone annual inflation stable at 2.1%; EU15 up to 2.0%

Euro-zone annual inflation remained stable at 2.1% between November and December. A year earlier the rate was 2.6%. EU15 annual inflation rose from 1.8% in November to 2.0% in December. A year earlier the rate was 2.3%. EEA annual inflation was up to 2.0% in December.

[Background paper STAT/02/9]

Insurance and pension funds in Europe; A growing and still restructuring insurance market; Development of supplementary pension funds

In 1999, the EU insurance sector included 3903 enterprises with a total turnover (measured by gross premiums written) of 760 billion euro. Compared to 1996, the number of insurance companies decreased by 8.4%, while the total turnover rose by one third (33.7%), illustrating a strong increase in the EU average production per enterprise. The trend towards consolidation shows differences between insurance business sectors: while the number of non-life insurance enterprises decreased by 15.3%, the number of life insurance enterprises remained stable (+0.6%) thanks to a growing life insurance market.

This fourth comprehensive report on the insurance sector published by Eurostat includes for the second time statistics on autonomous pension funds.

[Background paper STAT/02/11]

Social protection in Europe in 1999; Expenditure on social protection remained stable at 27.6% of GDP

Expenditure on social protection accounted for 27.6% of GDP in the EU in 1999, the same ratio as in 1998. After increasing in the early 1990s, from 25.5% in 1990 to 28.8% in 1993, expenditure on social protection as a percentage of GDP then fell to 27.6% in 1998.

Expenditure on the 'old age' and 'survivors' functions ranked first among social benefits in most of the Member States in 1999, with a weight of 46.0% in average throughout the EU. Expenditure on 'sickness, health care and disability' came second (34.9%), followed by expenditure on 'family/children' benefits (8.5%), 'unemployment' (6.8%) and 'housing and social exclusion' (3.8%). As for the funding of social protection, social contributions fell as a component of total receipts in the EU during the 1990s, with the figure dropping from 67.1% in 1990 to 60.6% in 1999. This reduction was offset by a rise in tax-funded general government contributions: up from 28.8% in 1990 to 35.7% in 1999.

[Background paper STAT/02/12]

Enlargement news

Enlargement on the Barcelona agenda

EU enlargement figures prominently in the European Commissions preparatory papers for the Barcelona summit on March 15-16, which will focus largely on assessing progress and prospects for the so-called Lisbon strategy (agreed by EU leaders at their summit in March 2000) to boost EU growth, competitiveness and jobs. The Commission said this week: "The Lisbon strategy provides an additional way for candidate countries to adopt and implement key economic, social and environmental objectives."

"But", the Commission continued, "it is not an additional condition for entry. The eEurope Plus initiative launched by candidate countries at the Göteborg European Council is a good example of this. They have put in place a framework to speed up their transition to a knowledge economy". The Commission added: "It could be helpful if other similar initiatives were developed across the candidate countries."

"The process of enlargement also presents challenges for the strategy itself, just as it does for economic and social cohesion", said the Commission. "It will certainly be a further factor for growth, investment and job creation across the Union in the second half of the decade, but it will also put many of the quantitative Lisbon targets under strain. It will involve a two-way learning process." This process has already started, with the participation of candidate countries in all EU programmes, the Commission said. "This is helping those countries, sometimes with the support of pre-accession aid, to familiarise themselves with the objectives and way of working within the Lisbon strategy. Moreover, pre-accession funding may help them in adopting, implementing and enforcing those elements of the acquis communautaire which form part of the Lisbon strategy."

Budget studies of the consequences of enlargement

The European Commission has just published some of the research it has commissioned over recent years on the budgetary impact of enlargement. The studies, covering Germany, Austria, Italy and Denmark, generally suggest a positive overall impact from enlargement. The studies operate from slightly differing assumptions about the precise number and accession date of new members, and they identify a number of possible downside risks. But their conclusions coincide in suggesting that enlargement will, on balance, be good for the member states in question. They can be consulted in full on

http://europa.eu.int/comm/budget/financing/enlargement_en.htm

New parliament president looks to enlargement

Pat Cox, the new President of the European Parliament, said in his acceptance speech on January 15: "We are on the brink of the most important event in recent European history, the enlargement of the European Union."

Speaking in his native Irish, he said he was convinced that "…cultural pluralism and cultural diversity are the sine qua non of the Europe to which I am committed and which we seek to build." (…) "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. We are building something by way of common values and future economic and social prosperity and we are doing work of historic dimensions." The new President pointed to the importance he attaches to the relations with the Commission on enlargement, noting that he had established a very good working relationship with Commissioner Verheugen.

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