The Week in Europe 13/05-29/05/02

EU news in brief

Fischler and Byrne: Final Round Table on Agriculture and Food

Commissioners David Byrne for Health and Consumer Protection and Franz Fischler for Agriculture, Rural Development and Fisheries have concluded a year-long process of strategic dialogue on agriculture and food policy in Europe. At the final Round Table on Agriculture and Food in Brussels, both Commissioners summarised the issues discussed over the past year and, with the assistance of a distinguished panel of international experts, presented a range of ideas that would assist the development of agriculture and food policy in the years ahead. "Developing an integrated approach to quality at all the stages of farming and of food production and a consumer focus on quality were the over-arching themes of our year-long dialogue. The challenge for us is now to turn that into policy, legislation and reality," Byrne and Fischler commented. Clearly the lessons learned from the Round Table process will feed into policy reorientation in the field of agriculture, food policy and in the way stakeholder information and consultation is dealt with. Concretely, suggestions could be considered in the perspective of the Mid-Term Review of the Common Agricultural Policy, the Rural Development Policies and the implementation of the White Paper on Food Safety.

[Background paper IP/02/700]

European Workshop on Economic Consequences of Integrated Pollution Prevention and Control

The different tools and approaches that regulators can use to assess the economic impact of best available techniques (BAT) were discussed in detail at a European workshop on "The Economic Consequences of Integrated Pollution Prevention and Control (IPPC)" in Brussels on 16 May. The introduction of BAT, for reducing industrial pollution in line with the 1996 IPPC Directive, is designed to achieve the greatest possible environmental benefit in the most cost-efficient possible way for industry. Experts reviewed criteria for measuring the impact of BAT on the competitiveness of various industrial sectors, and the tools available to help permitting authorities make appropriate judgements. The workshop was attended by over 150 experts from EU Member States and candidate countries, industry and environmental NGOs.

[Background paper IP/02/729]

European Commission welcomes Arafat announcement of elections and reforms and signature of Law on Independence of the Judiciary

Chris Patten, European Commissioner for External Relations commented in Madrid the signature of the Palestinian Law on the Independence of the Judiciary by President Arafat on 14 May: "This signature constitutes an important step towards reforming the Judiciary in the Palestinian Territories, and the separation of powers. Adoption of this law constitutes one of several contitionalities attached to the EU budgetary support to the Palestinian Authority regarding administrative, financial and judicial reform. I am pleased that this important step has finally been taken. Every effort must be made now to establish a modern, transparent and fully functioning justice system as one of the core elements for a future, viable Palestinian state." Commissioner Patten told the European Parliament yesterday that "the Palestinian Administration that rises from the ashes of the old must be more democratic, more transparent". In this context the European Commission welcomes Palestinian Authority President Arafat's announcement yesterday to the Palestinian Legislative Council of holding elections soon and his pledge to press on with reform efforts.

Website: http://europa.eu.int/comm/external_relations/mepp/index.htm

[Background paper IP/02/725]

Eurostat news releases

April 2002 - Euro-zone annual inflation down to 2.4%; EU15 down to 2.2%

Euro-zone annual inflation fell from 2.5% in March to 2.4% in April 2002, Eurostat reports. A year earlier the rate was 2.9%. EU15 annual inflation fell from 2.3% in March to 2.2% in April 2002. A year earlier the rate was 2.6%. In April highest annual rates were in Ireland (5.0%), the Netherlands (4.2%) and Greece (4.1%); lowest rates were in Germany and Austria (1.6% each) and Belgium (1.7%).

[Background paper STAT/02/58]

Enlargement news

EU research helps preserve a common cultural heritage as EU enlargement approaches

The EU's Enlargement process is well underway, and Europe is preparing to welcome new member countries, but European nations are already united through their shared cultural heritage. On May 16 in Krakow (Poland), and on the occasion of the Fifth European Research Conference on Cultural Heritage, the Commission will present three EU-funded research projects tackling issues such as the conservation of Baroque stucco marble in churches (ENVIART) and the preservation of photographs and paper against light (LiDO). Another project was instrumental in launching the first pan-European network on cultural heritage research issues (ARCCHIP). Participants involved in these projects include researches from Poland, the Czech Republic, Italy, Germany, Great Britain, France and Belgium. EU research can play a key role in mobilising resources, in gathering all relevant stakeholders and successfully integrating Eastern European expertise in R&D programmes to improve the protection of Europe's cultural heritage. For further information please visit

ENVIART PROJECT:

http://www.chemie.uni-hamburg.de/projects/enviart.html

LIDO PROJECT

http://www.lido.fraunhofer.de

ARCCHIP www.itam.cas.cz/~arcchip

[Background paper IP/02/716]

Cinema: Enlargement soon to be a reality. Eight candidate countries admitted to MEDIA programme

The European Commission has adopted a series of decisions to enable eight candidate countries to participate in the Media programme (2001-2005). Beginning this year if possible, or in 2003, cinema professionals in these countries and their audiovisual industries will therefore be able to use the Media programme to develop, distribute and promote their work, and also for training measures. Information on the operation of the Media programme, which has a budget for 2001-2005 of 400 million euro, is available on the following Internet site:

http://europa.eu.int/comm/avpolicy/media/index_en.html

[Background paper IP/02/730]

Regional view of the balance to be achieved in enlargement

"In recent months attitudes towards EU membership in some of the candidate countries have begun to harden. There is a danger that in the run up to accession these attitudes could worsen if the negotiations with the candidate countries generate the perception that they are not entering the EU on fair terms," warns a draft opinion discussed on May 15-16 in the EU's Committee of the Regions.

Discussing the proposed financial framework for enlargement set out by the European Commission in January, it "acknowledges the concerns that have been expressed in some candidate countries that the effect of these proposals will be to maintain funding disequilibriums within the European Union that will benefit richer regions at the expense of poorer".

But the Committee's rapporteur, Lord Hanningfield, nonetheless comes out broadly in favour of the Commission's approach. His report recognises that simply extending current policies in full to the new member states, with no transitional period or phasing-in, "would impose a heavy financial burden on existing members in the current support period". And, he says, transitional periods for full access to EU agricultural and structural funds are "also in the best interests of the candidate countries". The expenditure ceilings agreed in Berlin for the period until 2006 should be adhered to, he argues.

The Hanningfield paper supports the proposal to cushion semi-subsistence farms against the effects of the Single Market, by paying flat rate income support for a transitional period, and welcomes the proposal to simplify the access to funding in view of the high administrative costs of processing a large number of payments for small farms. It agrees with the Commission that capacity for absorption of structural funding needs to be taken into account, and that more funding should be focused on cohesion fund expenditure, in order to boost absorption capacity. And it supports the establishment of transitional arrangements to ensure that no acceding member state has a worse net budgetary position than it had in the year before enlargement. However, the draft insists, "transition periods must go hand in hand with reforms of relevant EU policies".

The draft opinion also pays particular attention to the regional aspect of enlargement. "Enlargement to 25 would mean a widening of regional and territorial disparities unparalleled by any previous enlargement," it says. "A balance must be struck between the needs of the new member states and the needs of existing member states who have not yet achieved convergence with EU standards." So no region in the EU should see its structural funds support suddenly cut, it argues. And Hanningfield calls for any adjustments to the Berlin framework to avoid "disproportionately negative effects on regions either in the existing member states or in the new post-accession member states".

UNICE emphasises conditions in its support for enlargement

The European business federation, UNICE, has long been a strong supporter of enlargement, and continues to be so. But its latest position paper on the subject, unveiled in Brussels on May 6, emphasises clearly that conditions must be met for enlargement to be successful. Particularly, it says, all EU legislation must be adopted, and candidates must have reached a satisfactory level of implementation and enforcement of EU rules by the time of accession.

"This requires sufficient administrative and judicial capacity, an area in which significant deficits still remain in many countries," according to Philippe de Buck, UNICE secretary general. The assessment of the readiness of a candidate country and the subsequent monitoring of commitments is crucial, says UNICE, and has to be transparent and efficient. UNICE is now finalising a series of its own candidate country reports, which will assess, from a business point of view, each of the candidate countries' progress towards accession. They will be released next month.

The UNICE approach is that each candidate country should be allowed to join the EU as soon as it is ready - because there is a cost to delaying enlargement for frontrunners. But those that are not ready should be kept outside until they are: there is a cost in "precipitating accession of those countries which are not fully ready," it says. With the right conditions, EU member states and their companies will benefit from increased trade and an enlarged Single Market, while accession countries will gain from more foreign direct investment, predicts UNICE.

The pharmaceutical dimension of enlargement

"The EU will shortly face the most significant expansion in membership in its history. This will have a massive impact across a number of areas including pharmaceuticals. Although it is difficult to predict the impact of enlargement in this area with any accuracy its impact needs to be taken into account when the Commission considers how to respond to the above recommendations," says the final report of the so-called G-10 group - the high-level group of EU officials, ministers and representatives of industry, patients and health insurance organizations. The G-10 presented its report in Brussels on May 7, with a range of proposals for balancing the interests of all parties in ensuring that innovative medicines are developed in Europe, and are accessible to European citizens.

Latvia eases language law rules for election candidates

On 9 May the Latvian Parliament finally adopted amendments to election laws that will remove the state language requirements until now imposed on candidates for parliament. From now on Latvian language proficiency will no longer be a prerequisite for a person to become a member of the Parliament or local government. Latvia says this shows its "continued commitment to the high democratic standards that characterise the transatlantic community of nations". The vote has been welcomed by the High Commissioner on National Minorities of the Organisation for Security and Cooperation in Europe, the Council of Europe Secretary General, and the US Committee on NATO (which said "the Latvian parliament has made all citizens equal in the political life of their society").

Prodi spells out the role of the Convention

The EU has to adapt its decision-making methods and its goals if it is to be a success after enlargement, insisted European Commission President Romano Prodi in a message delivered on Europe Day. A half-century has been taken using the current "Community method", he said, but "the method was designed for a Community of six nations: it needs streamlining if it is to continue efficiently serving a Union of 27 member states." At the same time, he said, "our enlarging family of nations needs to agree together what common goals we want to pursue in future, what common policies we will need to achieve them and who should be responsible for doing what." That is why, he went on, a Convention was set up this year. Its discussions will lead, in 2004, to an inter-governmental conference "that must deliver a new Union Treaty - one that answers the big questions clearly, in terms the citizens of Europe can understand".

Managing business change for enlargement

A new report from McKinsey & Company ("Business consequences of EU enlargement: major change or non-event?") assesses how enlargement will influence different sectors in the European economy. For the candidate countries, it says efficiency improvements will be essential in the sectors most directly affected by enlargement - those that face regulatory change or liberalisation, and pressure for restructuring, and which will lose subsidies. In telecommunications, for instance, fixed-line incumbents should focus on managing the national regulatory agenda so that liberalisation is balanced in relation to interconnection tariffs and customer access to competitors, while cutting overheads to improve their competitive position. But mobile operators should become more cost-efficient (average revenues are still below EU levels, and decreasing) while developing clear growth strategies. At the same time, "the EU should ensure the impartiality of the various national regulatory authorities," it says.

Enlargement in EP: Debates on 2003 budgets

The European Parliament will be debating the budgets at its plenary session in Strasbourg this week. On May 14, the European Commission presented the EU preliminary draft general budget for 2003 - just short of Euro 100 billion, up 1.4% on 2002, including almost Euro 2 billion in pre-accession aid for the candidate countries. And the same day the Parliament discussed the report from MEP Per Stenmarck on the estimates of revenue and expenditure of Parliament for 2003. The Parliament's budgets committee - for whom Stenmarck is the rapporteur on this issue - stressed the need to take fully into account the costs of enlargement for the Parliament. The Parliament's estimated total expenditure for the year are put at just over Euro 1 billion, and Euro 32.3 million concerns enlargement-related costs, including provision for 114 posts for the candidate countries. There is also to be a reserve of some 51m on the understanding that if the first of the new countries are to join in January 2004, there will be a need to bring forward enlargement-related expenditure to 2003. Stenmarck's position reinforces the line taken by his political group, the EPP-ED, that Parliament must be ready for the seamless integration of the accession countries into the EU.

Taking a positive view of migration

Rita Suessmuth, member - and past President - of the German Bundestag, tackled head-on the EU fears about migration from and via eastern Europe when she spoke at a meeting on labour, employment and social policies in the EU enlargement process, organised in Brussels on 29 April by the World Bank, the Bertelsmann Foundation and the European Policy Centre. Governments need to acknowledge public fears and to manage them (even when they were generated from "non-proven" figures), she said, by linking migration policy with reform of the labour market and social systems. In her view, the EU would remain a migration destination for the whole world, and migration therefore needed to be properly and openly discussed. Although each member state deals differently with migration, there needed to be EU rules, she urged: integration takes place at the local level, but there is a need for a migration framework at the EU level. But instead of focusing on the burdens of migrants, there should be more attention paid to what they bring in terms of cultural enrichment and economic contribution - particularly in light of declining EU birth rates and shortages of qualified people. Migrants could bridge this gap, and refugee communities often contained highly skilled and experienced people. German experience had shown that when there had been frank and open discussion as to the value of migrant workers, the public had responded in a more understanding and tolerant way, she said. Migration needed to be viewed in a more differentiated manner, as not all migrants were unskilled workers from rural areas.

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