The Week in Europe 18-24/02/02

04.03.2002 | Euroskop

EU news in brief

Quick and transparent solution for funding the Convention

European Budget Commissioner Michaele Schreyer welcomed the quick solution found for the financing of the Convention on the Future of Europe. This is a "sign of transparency within and good cooperation between the institutions", she declared. Last night an extraordinary meeting of the three institutions paved the way for the financing of the Convention. The European Parliament, the Council and the Commission agreed to provide €4 million for the budget of the Convention. The Convention, created by the European Council in Laeken, is, as has been emphasised by the Council's presidency, a structure 'sui generis'. It was hence necessary to also have recourse to extraordinary procedures to ensure that it has the financial means for working properly. The representatives of the governments of the member states meeting within the Council will decide to create a dedicated fund outside the community budget. The institutions, European Parliament, Council and Commission, decided in an inter-institutional agreement to contribute directly to the Fund with respectively €1 million, €0.4 million, and €2.6 million. The decision establishing the fund aims at guaranteeing maximum transparency and accountability.

Commissioner David Byrne at WHO ministerial in Warsaw - Commitment to turning the tide on the tobacco epidemic

David Byrne, EU Commissioner for Health and Consumer Protection, participated at the WHO Ministerial Conference for a tobacco-free Europe which is taking place in Warsaw organised in collaboration with the Polish Ministry of Health. Nearly all 51 Member States of the WHO's European Region participate, most of them on ministerial level. He presented the most recent legislative activities of the EU and the preparations which the European Commission is making for the next round of negotiations in March for the WHO Framework Convention on Tobacco Control (FCTC). The Commissioner underlined the importance of making a success of these global negotiations on tobacco control which will have a major impact on the health of future generations across the globe. The conference will adopt the "Warsaw Declaration" setting out the support of the European WHO Members for the FCTC and the WHO's action plans for a tobacco-free Europe.

[Background paper IP/02/274]

How far have we got with the EU's social policy agenda?

The social policy agenda is the EU's roadmap for modernising and improving the European social model by investing in people and building an active welfare state. It should contribute to achieving the strategic objective defined at the Lisbon European Council in March 2000. Its purpose is to respond to the common challenges the EU is facing in social policy and to ensure at the same time that full advantage can be taken of the new opportunities. Putting the Lisbon objectives - refined at subsequent European Council meetings into practice by establishing a dynamic and mutually reinforcing interaction between economic, employment and social policy is at the heart of this agenda.

[Background paper IP/02/280]

Commission assesses the implementation of the 2001 Broad Economic Policy Guidelines

The Commission adopted a report with an overall assessment of the implementation of the 2001 Broad Economic Policy Guidelines (BEPGs). The main conclusions of the report are that macroeconomic policies adapted appropriately to the worsening macroeconomic performance in 2001. While the slowdown took its toll on Member States' public finances, structural budget positions did generally not worsen. Further progress was made in promoting the economic growth potential and employment through both the economic reform process and the progressive transition towards a knowledge-based society. However, the structural reform process seems to have lost momentum in 2001. Renewed impetus to structural reform is needed to close the delivery gaps and be on track to achieve the bold and ambitious goals set out for the European economy by the Lisbon strategy. The Commission' s report on the implementation of the 2001 BEPGs and a working document from the Commission's Directorate General for Economic and Financial Affairs with country-specific assessments is available on: http://europa.eu.int/comm/economy_finance/publications/european_economy/implement2001_en.htm

[Background paper IP/02/282]

Food Safety First set of farm-to-table food safety measures take effect

Commissioner David Byrne said 21 February was a "red letter" day for food safety with the entry into force of the first set of comprehensive farm-to-table food safety measures of the key new Regulation on EU food law. They include the start of the operation of the new and reinforced rapid alert system for feed and food risks and new emergency powers for the European Commission to intervene when a feed or food is likely to constitute a serious risk. At the same time a reorganisation of existing regulatory committees into a single Standing Committee on the Food Chain and Animal Health becomes effective, and the key principles on food law and transparency in food law making start applying. The full text of the Regulation on Food law, establishing the European Food Safety Authority (EFSA) and laying down procedures in matters of food safety is available at

http://europa.eu.int/eur-lex/en/dat/2002/l_031/l_03120020201en00010024.pdf

[Background paper IP/02/289]

Commission takes step Towards the Next generation Internet

The European Commission has adopted the Communication entitled "IPv6 Priorities for Action". The Communication calls for a European action plan to accelerate the rollout of Internet Protocol version 6 (Ipv6) - a key technology for the Next Generation Internet. Unless action is taken, space on the current generation of the internet is projected to be exhausted by around 2005. IPv6 will provide a quantum leap in the number of Internet addresses available for the foreseeable future. "IPv6 is a critical technology for enabling the convergence of the Internet with mobile communications, an area where Europe leads the world," said Erkki Liikanen, European Commissioner for Enterprise and the Information Society. "The importance of IPv6 to European competitiveness in general can not be overestimated. Europe needs to match its first-class research with political commitment to make IPv6 happen."

[Background paper IP/02/284]

Business start-ups: still room to simplify procedures

Despite some streamlining, the sheer difficulty of the procedures required to start a new business is still discouraging Europe's would-be entrepreneurs, says a new Commission benchmarking study on start-up procedures. Areas where there is still room for improvement include the time it takes to set up a private limited company, minimum capital requirements, and online registration tools. The March 2000 Lisbon European Council singled out benchmarking the time and costs involved in setting up a company, as an example of how Member States can work together to enhance Europe's competitiveness. Based on evidence from Member State experts, the benchmarking study presents some striking results, to be discussed at the informal meeting of industry ministers in Aranjuez (Madrid) on 23 February 2002. A detailed summary of the report and further information are available at:

http://europa.eu.int/comm/enterprise/entrepreneurship/support_measures/start-ups/index.htm

[Background paper IP/02/286]

Commission launches consultation on benchmarking e-Business policies for SMEs

The Commission has launched a wide-ranging consultation on benchmarking of national and regional e-business policies in support of SMEs. This consultation should help both to sharpen the focus of e-business policy making on the real needs of small and medium-sized enterprises (SMEs) across Europe, and to define yardsticks against which success can be measured. For further information please log on at:

http://europa.eu.int/comm/enterprise/ict/policy/benchmarking.htm

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

[Background paper IP/02/287]

Commission welcomes falling telephone prices

The European Commission welcomed falling prices in the cost of calls made between telephone networks in the Community, and adopted - at the initiative of Erkki Liikanen, European Commission responsible for Enterprise and Information Society - a Recommendation that phases out benchmarks for interconnection charges between network operators. Welcoming the adoption of the measure, Information Society Commissioner Erkki Liikanen stated, "Interconnection charges for call termination on fixed telecommunications networks have reduced considerably in the EU since the Commission issued its first benchmark prices in 1998. The Recommendation was updated in 1999 and 2000, and as a result, prices for call termination prices to fixed networks in the EU are amongst the most competitive in the world. In the light of falling prices, the Commission has decided that it is no longer necessary to update the 'best current practice' prices for call termination to fixed networks. These benchmark prices served to stimulate competition when the market was first liberalised in 1998, but now it is for the national regulatory authorities in the Member States to enforce the rules."

[Background paper IP/02/301]

Responsible management of GMOs: Commission proposes EU implementation of Cartagena Protocol on Biosafety

The European Commission has decided to propose a Regulation on the cross-border movements of Genetically Modified Organisms (GMOs). The aim is to establish safeguards at international level for transfer, handling and use of GMOs. The Commission believes that these measures are essential for protection of biodiversity at international level, with special focus on developing countries. The proposal will implement into EU legislation the provisions of the United Nations' Cartagena Protocol on Biosafety. The EU played a leading role in the conclusion of this Protocol and rapid ratification will provide an important political signal that its commitment to the Protocol remains strong. In parallel, the Commission is preparing a Proposal for a Council decision on the conclusion of the Biosafety Protocol, which aims at ensuring the ratification of the Protocol by the EU.

[Background paper IP/02/299]

Enlargement news

Outcome of the Agriculture Council of February 2002

Enlargement and agriculture

Commissioner Fischler presented the Commission's proposals on enlargement and agriculture to the farm ministers. He underlined that the Commission's approach had many advantages: "It is compatible with the Berlin financial ceiling and compatible with the acquis, it does not prejudge further developments of the CAP, it respects the roadmap timetable, it is good for restructuring of agriculture in new member states. Short, it is a balanced and fair package."

He explained that a rapid introduction of direct payments would lead to negative impact on restructuring. "High levels of direct payments would undermine the effects of rural development programmes in early years. Excessive cash injections could create significant income disparities and social distortions in rural areas."

In this context, he stressed the importance of the rural development package brought forward by the Commission. "For 2006, we have set aside around € 1800 million from the EAGGF, guarantee section. Additional funding would come from EAGGF orientation section in Objective 1 areas. An EU co-financing rate of 80% should ensure that the new members can match this money with national funds. We propose the use of SAPARD structures, including SAPARD agencies for programme administration."

Fischler rejected the idea not to grant direct payments at all. "We have well-founded arguments to grant 25% of direct payments in 2004. The price gap between EU and candidate countries for most products and countries has narrowed since the Agenda 2000 proposals. The direct payments of the 1992 reform have lost some of their compensatory character and are increasingly related to income support objectives. There is a clear need for income stabilisation in new member states at a safety net level to cushion effects of restructuring on commercial farms. And the phasing-in provides a basis for framework of good agricultural practice and cross-compliance."

[Background paper MEMO/02/31]

Foreign ministers confirm their adherence to the road-map

During the meeting in Cáceres on February 8-9, Commission President Romano Prodi insisted that the carefully balanced package of Commission proposals was the right way forward, and the only way forward. Commissioner Verheugen underlined the need for flexibility on both sides - among member states and candidate countries - in approving the package. President of the Council Josep Piqué noted that while there had been "extremely wide-ranging, intense and lively" talks, the ministers for foreign affairs of the 15 EU member states were "completely committed to the objective of completing the enlargement negotiations by the end of 2002". At the end of the meeting, Commissioner Verheugen said it had been "a successful day for enlargement", and noted broad support for the Commission's approach.

During the meeting, the Greek, Portuguese, Finnish, Belgian, Luxembourg and Irish delegations and the Spanish Presidency all supported the Commission position. But concerns were expressed by the foreign ministers of both Germany and the UK over the potential cost of the Commission's proposals, particularly in relation to agriculture. The Netherlands delegation went further, and linked the possibility of direct agricultural payments to future member states to the need for agreement on the broad outlines of the future Common Agricultural Policy. Sweden, Austria and France urged financial prudence, and France suggested the Commission proposals left little margin for negotiation.

The Presidency reconfirmed that the negotiating process over the coming months would respect the EU acquis and the financial perspective approved in Berlin. Piqué said it was the Spanish Presidency's intention to do everything necessary to enable the following Presidency, Denmark, to close all the outstanding chapters in December 2002.

Building real bridges to accession

New road and rail bridges and junctions, cleaner water supplies, and healthier waste disposal are some of the tangible improvements to life in the candidate countries that are resulting from the European Union's pre-accession assistance in the last year. More than € 1.1 billion has been provided for transport and environment projects in 2001 under the EU's so-called ISPA programme: the Instrument for Structural Policies for Pre-Accession.

94 projects, altogether worth € 2.3 billion, are being launched in the ten candidate countries in central and Eastern Europe. Most of the projects focus on the modernisation of urban and municipal water supply, waste water systems, and road, motorway and rail rehabilitation and construction. In the Czech Republic, ISPA is putting € 12.8 million into the modernisation of five wastewater treatment plants, improvement of municipal sewerage collection and raising the quality of drinking water in North Bohemia - which will also have a significant cross-border impact on the Elbe river basin.

Over 2000 and 2001, the European Commission has approved 169 ISPA projects, worth € 6.1 billion, of which the EU is financing two-thirds. Overall, between 2000 and 2006, ISPA will fund projects in ten candidate countries for a total of € 7,280 million.

Poland's deputy Prime Minister attacks Commission proposals

Poland's agriculture minister and deputy Prime Minister Jaroslaw Kalinowski criticised the European Commission's approach to the negotiations on agriculture when he came to Brussels on February 11. He said commercial farmers in Poland would be unfairly treated. In his view, the underlying problem for market-orientated farms in Poland is a lack of capital - which direct aids could help provide. He also objected to the Commission's proposals on how candidates should be treated after 2006 (particularly in respect of the phase-in of direct payments to farmers through to 2013). He claimed the EU was undermining the enlargement process by prejudging what would happen under the 2007-2013 financial perspectives - which have yet to be agreed, and on which Poland wishes to have its voice heard. To pre-empt this was tantamount to "deciding on our future without us", he said.

More agreements on candidates' participation in EU programmes

The EU Council of Ministers has given its agreement for some of the candidates to take part in EU programmes with less complex administrative procedures. At the Ecofin Council on February 12, they backed new plans for the Czech Republic, Estonia, Latvia, and Slovakia to benefit from the programmes - which cover subjects such as education, justice and home affairs, media, education, and environment - through a simple European Commission decision. The new system is already in place for Hungary and Slovenia, and will be extended to other candidates during the year. Estonia and Slovakia were also admitted to the EU's Fiscalis programme, which aims to combat value added tax fraud. Ministers also gave their assent to the setting up of a new joint consultative committee between the EU's Economic and Social Committee and Estonia. And they adopted negotiating directives for the EU to seek new mutual concessions on trade in agricultural products with Cyprus and Malta.

"Long-term gain for short-term pain" in candidates' trade with EU

Compliance with EU regulations will enable easier access for producers in central and eastern Europe to EU markets in the long run, even though there may well be costs of adjustment in the short and medium run, according to a new study from WIIW Research, "Trade Structures, Quality Differentiation and Technical Barriers in CEE-EU Trade". The study quantifies the incidence of different types of technical barriers to trade on industrial trade structures between seven Hungary, Poland, Czech Republic, Slovakia, Slovenia, Bulgaria, and Romania and the European Union. The issue will become increasingly important as these candidates for EU membership become subject to the same single market arrangements that regulate access of EU members to each other's markets, the study points out.