The Week in Europe 27/05-2/06/02

EU news in brief

EU Fisheries Policy: Commission outlines reform to give the EU fisheries sector a future

Dwindling fish stocks, diminishing catches, too many vessels chasing too few fish, steady job losses and a lack of effective control and sanctions…, the Common Fisheries Policy (CFP) needs fundamental change. Following intense consultations with stakeholders, the European Commission unveiled an ambitious reform package. The Commission proposes to do away with the annual ritual of setting fishing quotas at too high levels. In future, TACs would be fixed within a multi-annual management plan, on the basis of the most recent scientific advice to ensure that enough fish stay in the sea to replenish the stocks. The Commission intends to tackle excess fleet capacity by ending public aid for introducing new fishing vessels. More EU money would be available to help fishermen to find alternative work and for the restructuring of the sector. The Commission also advocates uniform and tougher sanctions across the EU. Controls would be reinforced by setting up a Joint EU Inspection Structure. (For more information about the proposal see MEMO/02/111) The full text of the reform proposals is available on the internet at: http://europa.eu.int/comm/fisheries.

Information about the internet chat with Commissioner Fischler on 17 June 2002 on the reform of the Common Fisheries Policy at:

http://europa.eu.int/comm/chat/fischler2/index_en.htm

[Background paper IP/02/764]

Commission adopts new initiatives to increase its internal efficiency and reallocate resources to core tasks

The Commission adopted a set of proposals for rationalising the day-to-day management of administrative and support services, particularly those that are currently carried out by the Directorate General for Personnel and Administration. In transferring part of the tasks to three Offices, one for the payment of all Commission staff entitlement, the other two for the management of Commission infrastructures in Brussels and Luxembourg, the Commission is seeking to increase the effectiveness of the delivery of these services to the benefit of staff. The new Offices would lead to annual savings on overall operating costs of up to € 16 million annually, roughly 18% of the current cost of providing these services. These efficiency gains could increase further if the other EU institutions agreed to pool their responsibilities in these fields. The adopted proposals will now be discussed with the Commission staff unions before a detailed decision is presented to the Commission for final adoption this autumn.

[Background paper IP/02/766]

European Union will sign a new international treaty on agricultural biodiversity

Commissioner David Byrne has welcomed the decision of the EU's Council of Ministers yesterday that the European Union will sign the International Treaty on Plant Genetic Resources for Food and Agriculture. The Treaty aims to protect the world's most important agricultural plant species in order to safeguard global food security. The Treaty provides for free access to plant genetic resources for research and breeding. Recipients marketing products arising from that access will have to pay back into the system an equitable share of the monetary and other benefits. The text of the Commission's proposal on the signature (COM(2002) 197 final), and the text of the Treaty are available on the Internet at:

http://europa.eu.int/eur-lex/en/com/reg/en_register_151040.html

[Background paper IP/02/765]

eEurope 2005: Taking the EU Information Society to next level

The European Commission has adopted a new Action Plan entitled "eEurope 2005: An information society for all". The new Action Plan aims to provide a favourable environment for private investment and for the creation of new jobs, to boost productivity, to modernise public services and notably education, and last but not least to give everyone the opportunity to participate in the global information society. This is the key message behind this action plan. More information on eEurope can be found at:

http://europa.eu.int/information_society/eeurope/news_library/eeurope2005/index_en.htm

[Background paper IP/02/768]

Air transport insurance after 11 September: the Commission authorises an extra month of emergency state aid

The Commission has agreed that Member States could continue to provide emergency state insurance cover to companies in the air transport industry for a further month, up to 30 June 2002. This will give governments and industry an additional period of time to finalise a stable, cost-effective and fair response to the difficulties the industry has faced in securing sufficient insurance cover since the attacks of 11 September 2001.

[Background paper IP/02/767]

EU announces formal recognition of Russia as "Market Economy" in major milestone on road to WTO membership

At the EU-Russia summit, European Commission President Romano Prodi took the unprecedented step of announcing that the EU would be granting Russia the formal status and treatment of a fully-fledged "market economy", in recognition of the major reforms it has successfully undertaken in recent years. The EU is the first trading power to bestow this recognition on Russia. Announcing the decision, President Prodi said at the opening of the summit: "I am happy to announce that we will grant Russia the status of a full market economy. What we promise we will keep. As Russia's principal trading partner it is right and proper that we be the first to recognise and reward the considerable efforts undertaken by this country in recent years by treating her as a fully-fledged market economy. This is without doubt an important milestone on the road to Russia's WTO membership, a process where we are very much in the vanguard." For more information on the EU-Russia summit see MEMO/02/109

[Background paper IP/02/775]

Commission kicks off anti-smoking campaign for young people: "Feel free to say no"

31 May - The kick-off of the tobacco free 2002 World Cup and the World No Tobacco Day coincide with the launch of an EU-wide campaign by the European Commission aimed at preventing smoking among young people. Eight out of ten people who smoke start when they are between 12 and 18 years old. "Feel free to say no" is the slogan of the campaign. There is a special website www.feel-free.info about the different aspects of the campaign, events, games etc. The campaign is part of the Commission's broader tobacco control strategy. It targets EU-wide 36.2 million young people between 12 and 18 years. The overall budget of the campaign is €18 million for three years (€6 million per year).

The EU anti-smoking campaign is one element of a much broader tobacco control strategy. Directive 2001/37/EC deals with the manufacture, presentation and sale of tobacco products (see IP/01/702). A Commission proposal on tobacco advertising and sponsorship is currently under discussion in the European Parliament and the Council (see IP/01/767).

[Background paper IP/02/782]

Indicator-based forecast of euro-area GDP for 2nd and 3rd quarter of 2002

The 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, forecasts for the second quarter of 2002 a range of 0.3% to 0.6% for the percentage change of GDP vis-ŕ-vis the previous quarter. Compared to the 7 May 2002 publication, the range has been shifted downwards by 0.1%. This is linked to a spill over effect from the new growth estimates released by Eurostat on 30 May. The contraction in the last quarter of 2001 was sharper than initially estimated (-0.3% vs. -0.2%) and Eurostat's first estimate for the first quarter of this year at 0.2% came in at the lower end of the forecast range suggested by the Commission indicator-based model (0.2% to 0.5%). Furthermore, the situation in retail sector remained subdued in the first months of 2002. For the third quarter of 2002, a significant acceleration is expected and quarter on quarter growth is forecast to be in the range of 0.7% to 1%. Based on available data, the growth acceleration stems mainly from the international environment and the eased monetary conditions which are taking effect. Full document available at:

http://europa.eu.int/comm/economy_finance/indicators/euroareagdp_en.htm

Corporate social responsibility: half of Europe's small and medium-sized enterprises engage in socially beneficial activities, says new Commission report

Half of Europe's small and medium-sized enterprises (SMEs) already engage in socially responsible activities that benefit the local community, such as sponsoring sport, culture, health and welfare, says a new European Commission report published under the "Observatory of European SMEs 2002" (see IP/02/687). This report, the first to give EU-wide comparative data on the social and environmental activities of SMEs, makes an important contribution to a debate that has so far mainly focused on large enterprises. The report's findings will supplement responses to last year's Green Paper on CSR and help shape the forthcoming Communication on the subject expected this summer. The findings of the report are based on a survey of over 7,600 small and medium-sized enterprises in 19 European countries. The full text of the report "European SMEs and social and environmental responsibility" can be downloaded free of charge at:

http://europa.eu.int/comm/enterprise/enterprise_policy/analysis/observatory.htm

[Background paper IP/02/778]

Commission welcomes European Parliament's vote to accept directive on data protection rules for electronic communications sector

The European Parliament voted to accept a compromise on the proposed Directive for the protection of personal data and privacy in the e-communications sector. The compromise was negotiated between the Spanish Presidency, the European Commission and the European Parliament during the past month. Now that the directive is agreed by the Parliament, it will be formally adopted within a few months and will be applied by the end of 2003.

[Background paper IP/02/783]

Eurostat news releases

Eurostat Yearbook 2002 - Europe from evens angle… A compendium of European statistics

Eurostat publishes the 7th edition of its Yearbook. A veritable digest of statistical information available on Europe, the Eurostat Yearbook provides information which is harmonised and hence comparable between Member States, as well as being designed as a gateway to the more detailed data available in Eurostat's thematic publications. Nearly 200,000 items of data are presented in the form of statistical tables, graphs and maps, accompanied by analytical or methodological comments. The 2002 Yearbook covers the period 1990 to 2000.

[Background paper STAT/02/62]

First estimates for the first quarter of 2002: Euro-zone and EU15 GDP up by 0.2%; +0.1% and +0.2% respectively compared to the first quarter of 2001

Euro-zone and EU15 GDP both grew by 0.2% during the first quarter of 2002, compared to the previous quarter, according to the first estimates out from Eurostat. These results follow a drop of 0.3% in the euro-zone and of 0.2% in the EU15 in the fourth quarter of 2001. Compared to the first quarter of 2001, GDP grew by 0.1% in the euro-zone and by 0.2% in the EU15, after +0.3% and +0.5%, respectively, in the previous quarter.

[Background paper STAT/02/64]

Enlargement news

EU citizens support enlargement but want more information, according to a special Eurobarometer survey

A special Eurobarometer survey carried out in the fifteen Member States of the EU shows that a broad majority of citizens expect benefits from the enlargement process, but want information about it. Citizens also feel favourable towards the European Union and the euro is the most frequent example spontaneously quoted by the respondents when asked to mention positive aspects of the EU. Some 80% of the respondents consider the fight against illegal immigration as a priority for the EU, but only 45% of them consider EU action as effective in this field. Some 16,000 EU citizens aged 15 and over were interviewed between 22 January and 28 February. In addition to the standard report, a national report is published in each Member State. Full texts of reports available at http://europa.eu.int/comm/public_opinion/archives/eb/eb56_3/eb56_3_en.htm

[Background paper IP/02/777]

Tough talk from ten candidates

All EU policies, including the structural and cohesion policy and the agricultural policy, should be "fully extended" to the new member states, according to the ministers of foreign affairs of the ten candidates aiming to complete EU accession negotiations before the end of 2002. They made a joint demand on May 22 for what amounts to more money to fund EU enlargement.

Meeting in Warsaw, the ministers of Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia set out "four major requirements" for the outcome of negotiations on agriculture and financial framework - most relating to the financial terms of accession. But they insisted that "in order to fulfil these requirements, adequate financial resources should be made available by the European Union for enlargement".

If any need for transitional arrangements or phasing-in periods is justified for financing structural and cohesion policy and agriculture, said candidates' ministers, these periods should not go beyond 2006, the end of the EU's current financial perspectives. They also say they want "equal conditions for farmers from current and new Member States...in order to guarantee their competitive position".

In addition, say the candidates, the net financial position of the new Member States after accession, including during the first year of membership, "should improve compared to the last pre-accession year".

The candidates' ministers said in their joint declaration that respecting their demands "is essential not only for the quality of the ten countries' membership in the European Union but also for generating support for the Accession Treaty in referenda". The ministers also reaffirmed their determination to conclude accession negotiations by the end of 2002, so as to become Member States by 1 January 2004 - and they made clear they expect the European Council in Seville in June to confirm this time-table and objective.

Bulgaria and Romania did not take part in the meeting. This is the first meeting at this level of the ten candidates identified by the EU as being likely to conclude negotiations this year and join in 2004.

How the European parliament views the candidates

The European Parliament's foreign affairs committee's report on accession negotiations and the candidates included a brief series of individual country reports. Among the highlights:

The Czech Republic is reminded "that an efficient and effective civil service is an important prerequisite for both the political criteria and the implementation and enforcement of the acquis", and is urged to continue wide-ranging reform of the public administration and to adopt a civil service law. For other countries see

http://europa.eu.int/comm/enlargement/docs/newsletter/weekly_280502.htm

Danish Presidency warns of urgency on accession negotiations

Denmark, which is due to take up the Presidency and manage the close of enlargement negotiations in the second half of 2002, is already emitting public signals of concern that a slow-down this year could delay enlargement for years. Completing negotiations with the first candidate countries is one of the incoming Presidency's top priorities, but Danish prime minister Anders Fogh Rasmussen has identified three immediate obstacles: agreeing the financing package for the new Member States, resolving the division of Cyprus, and obtaining Irish endorsement of the Nice Treaty. Rasmussen suggested that delaying enlargement this year could give rise to calls from some member states for concluding the new Treaty negotiations, or even agreeing the new financial perspectives for 2007-2013, or the reform of the Common Agricultural Policy, before admitting any new members. He claimed that delay now could mean delay for as much as six years.

Elections creating new waves for EU enlargement

Edmund Stoiber, the Bavarian Minister-President, who might well replace Gerhard Schroeder in the Federal Chancellery after the German general election in September, has recently said in public that he would want to see the Benes decrees repealed before the Czech Republic was admitted to the EU, and that he found it difficult to foresee a European Union that included Turkey as a member. And the new political majority in the Netherlands is showing some hesitancy over enlargement. Leading Christian Democrats, who are expected to lead a new coalition government, have been insisting on the need for a tough EU position. Maxime Verhagen, who could become the Dutch foreign minister, has stated his opposition to a large-scale early enlargement, and has warned that the new government might refuse any enlargement in 2004.

Solana sees enlargement and post-enlargement priorities

"The European Union is an attractive pole of stability, democracy and prosperity", said Javier Solana, Secretary General of the Council and High Representative for Foreign and Security Policy, speaking on "Europe's place in the world" at the Danish Institute of International Affairs in Copenhagen on 23 May. "We have maximised our status as a 'net exporter of stability' by acknowledging legitimate aspirations to join our Union; while emphasising that this is dependent on a commitment to our common values. Consequently, enlargement will ensure that Europe is bound together by these basic values, both internally and in its relations with the rest of the world. For the first time in our history we can look forward to the unification and stabilisation of our continent not on the basis of conquest, nor on the basis of an armed balance of power, but on the voluntary acceptance of and commitment to a set of values that inspires our civilisation," he said. But he stressed that the number one priority for an effective foreign policy would be to devote attention to "our neighbours, to the east and to the south of the enlarged EU. Our security, and partly our prosperity, will increasingly depend on stability at our borders," he said.

US farm policy "a threat to EU enlargement"

"The new US farm policy poses a threat to the efforts within the European Union to reform the Common Agriculture Policy, and thereby also to the Eastern enlargement," according to Swedish Liberal Democrat Karl Erik Olsson MEP. Speaking at the opening of a European Parliament hearing on "Integration of New Members into the CAP - Effects on Agriculture in East and West", Olsson said: "The new US farm policy, which increases agricultural support, comes at an unfortunate and sensitive time. It can throw a spanner in the works of a successful EU enlargement. An appropriate agricultural policy within the EU is needed in an enlarged EU. The increased level of support will raise trade barriers and give all those who don't want to reform the CAP a trump card. Instead of expecting candidate countries to fully adapt to the CAP - which is anyway about to become out-dated - we should try to find a middle way."

EU grant for OECD work with candidates

The European Union is planning to provide euro 80,000 to the Organisation for Economic Co-operation and Development, among other things to boost competitiveness in the candidate countries. The grant is intended "to support actions which create a peer pressure with a view to implementing sound enterprise policies that support competitiveness in candidate countries and Stability Pact countries; and to complement the multilateral and bilateral dialogue with national administrations of candidate countries and Stability Pact countries that is organised at EU level, with a regional dialogue focused on the exchange of experience between representatives of public authorities, the private sector, bilateral donors and international financial institutions".

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