The Week in Europe 14-20/10/02

EU news in brief

Research: Commission highlights the new challenges for Food and Agriculture

The changing attitude of European society to research in food and agriculture demands that researchers pay more attention to the concerns of the public and other stakeholders. The annual Euragri conference, entitled "Science for Society, Science with Society" and sponsored by the European Commission, addressed European consumers' concerns and proposed new goals, roles and rules to respond better and quicker to the needs of society. Research Commissioner Philippe Busquin presented EU initiatives in this area, and called for a European platform on plant science to be formed on the basis of a network of national research programmes. Within the forthcoming 6th EU Research Framework Programme (FP6 2003-2006), €685 million have been earmarked for food quality and safety. Report on 15 years of EU-funded GMO safety research:

http://europa.eu.int/comm/research/quality-of-life/gmo/index.html

[Background paper IP/02/1474]

Costs suffered by airlines following the attacks in the United States on 11 September 2001: The Commission authorises EUR 1.4 million proposed by Austria by way of compensation

The Commission authorised part of the scheme for compensating the losses of Austrian airlines as a result of the closure of certain parts of air space from 11 to 14 September 2001, involving an amount of €1.419 million. However, it expressed doubts about the measures concerning compensation for the flights on 15 September and for all flights in areas not closed to traffic. The Commission's decision is fully in line with its 10 October communication on the repercussions of the terrorist attacks in the USA on the air transport industry, in which it had accepted that some types of aid, including aid for insurance and costs resulting from the partial closure of air space intended to compensate for damage caused by natural calamities or other extraordinary events (in the words of the EU Treaty) could be granted to the air transport industry by way of exception. The Commission nonetheless placed a number of conditions on the authorisation of emergency aid. The Austrian scheme meets these conditions in part, which means that the Commission can authorise €1.419 million. For the full text of communication see

http://europa.eu.int/comm/transport/themes/air/english/air_safety.htm.

[Background paper IP/02/1490]

The Commission adopts its Communication on Structural Indicators

The European Commission has adopted a Communication on Structural Indicators. This Communication proposes a set of indicators to be used in the Spring Report for the Spring 2003 European Council. The Spring Report will assess progress made towards the strategic goal agreed at Lisbon, which is to transform the European Union into "the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion." The use of indicators and benchmarks is an integral part of monitoring progress in the follow-up to the Lisbon European Council's objectives, expanded at Gothenburg and refined at Stockholm and Barcelona.

[Background paper MEMO/02/215]

Protection of citizens in the event of a terrorist attack: Commission announces large-scale European simulation exercise (EURATOX 2002)

The first European Community Civil Protection exercise is scheduled to take place on 27 - 28 October 2002 in France (Var) at the camp of Canjuers. Euratox 2002 will be a simulation exercise involving radiological and chemical fall-out resulting from a terrorist attack. Margot Wallström, Commissioner for the Environment and Civil Protection Coordination, and the French Minister of the Interior, Nicolas Sarkozy will be on-site and will hold a press conference late morning on Monday 28 October. The Euratox file is available on- line at the following address: http://www.interieur.gouv.fr/rubriques/c/c5_defense_secu_civil/

[Background paper IP/02/1498]

The Commission proposes compensation to all crime victims in the EU

The Commission proposed that all victims of crime and terrorism in the EU should be able to receive compensation for the injuries and losses they have sustained. The proposed directive sets a minimum standard for the award of such compensation. It also introduces a system of cooperation between national authorities, to assist victims when applying for compensation in cross-border situations.

[Background paper IP/02/1506]

Eurostat news releases

September 2002 Euro-zone annual inflation stable at 2.1%; EU15 stable at 1.9%

Euro-zone annual inflation was 2.1% in September 2002, the same as in August. A year earlier the rate was 2.2%. EU15 annual inflation was 1.9% in September 2002, the same as in August. A year earlier the rate was 2.1%. EEA annualinflation was 1.9% in September 2002.

[Background paper STAT/02/123]

Enlargement news

Irish referendum seals fate of enlargement

Irish voters backed the Nice Treaty in their second referendum on Saturday, 19 October - and brought relief to the candidate countries and to the EU. The 62.89% vote in favour allows the Irish government to at last ratify the Treaty, which will bring in the internal changes needed for an enlarged EU to function effectively. European Commission President Romano Prodi said: "We are closer to our goal, but not there yet." The positive Irish vote, and the work that had gone into winning it, constituted "a substantial contribution to the historic mission of enlargement", he said, and "We can now get on with finalising preparations".

Danish prime minister Anders Fogh Rasmussen - who, as current President of the European Council, is responsible for driving the enlargement process forward at two upcoming EU summits, said the result was "very satisfactory", and that "The Irish people have taken an important decision, not only for Ireland, but for the EU as a whole, and not least for the enlargement."

Javier Solana, EU High Representative for the Common Foreign and Security Policy, said he was "delighted" by the decision of the Irish people, which he sees as an expression of "a firm belief in a new Europe, united by common values and a common purpose".

European Parliament President Pat Cox said the result "demonstrates that the only people in the EU to have been consulted have, after a period of reflection, given the clearest possible signal that Europe's rendezvous with history cannot be further delayed or postponed".

The chairman of the Socialist Group in the European Parliament, Enrique Baron, welcomed the outcome of the Irish referendum as a good day for Europe and an important step forward to the further unification of the continent

For the European Liberal Democrats, Graham Watson MEP welcomed the results: "The Irish people have removed one of the last remaining hurdles to enlargement of the European Union," he said.

And German Chancellor Gerhard Schroeder said: "I welcome the positive result of the Irish referendum on the Nice Treaty. The people of Ireland were aware of their great responsibility."

Negotiations aim to narrow the target down

The special accession negotiating session held in Brussels on 18 October involved only four candidates, and yielded the closure of only one chapter - competition with Malta. But the EU Presidency said it had still "come a long way" towards meeting its goal of closing all the non-financial chapters before the final intensive phase of negotiations is due to start after the Brussels summit this week.

Hungary also negotiated on competition, and - in the words of its negotiator, Endre Juhasz - many elements of the EU common position on competition were acceptable, the question had been "conceptually clarified", and "the scope of the problems is shrinking". Agreement still has to be reached with the EU on promised Hungarian state aid provisions between now and 2011 for some 48 companies that generate more than 40% of Hungary's exports and up to 10% of Hungary's employment: "They must be given equitable conditions," he insisted. The Presidency said after the meeting that "very constructive views" had been put on the table, giving grounds for optimism.

Poland negotiated only on the veterinary and phytosanitary part of the agriculture chapter. Its negotiator, Jan Truszczynski, said "very substantive progress" had been made. Agreements were reached that allow more time to reach full EU standards for more than 100 milk processing establishments and the dairy farms which supply them, more than 300 meat and poultry processing establishments, and 40 fish-processing establishments. This will allow them to stay viable while they adapt to EU rules, says Poland. The only issue now needing agreement in this part of the agriculture chapter relates to how many milk processing plants would be allowed to continue producing milk for domestic use alongside production that meets EU standards.

But for Poland too, the competition chapter is still to be closed, with the debate focusing on the details of Poland's steel restructuring plan and on fiscal treatment of investors in Poland's special economic zones before 2001. Poland's negotiator nevertheless said that despite recent turbulence in European affairs, it is "still more likely than unlikely that solutions can be found".

EU reserves on the Czech steel restructuring plan and Spanish reserves on the Slovak aid regime for the car industry prevented negotiations with these two candidates on the competition chapter, but the Presidency put these two issues on the agenda of the 21 October General Affairs and External Relations Council, and says it hopes to close them quickly in further negotiating sessions.

Estonia revisited the environment chapter (which had already been closed) to agree the insertion of a provision taking account of new EU acquis on limitation of emissions of pollutants

Looking ahead to the Brussels summit, the Presidency suggested that wide agreement had been reached on the European Commission approach to budgets, and on the methodology of calculation, although agreement is still absent on the overall figure. Similarly, on direct payments for candidate country farmers, no member state fundamentally contests the principle of income support, even if some are continuing to link final agreement on this concession to other aspects of EU policy. The problems might be difficult politically, says the Presidency, but the texts and draft instruments will be on the table in Brussels, and progress will be a question of political will among the member states. The Presidency is "still optimistic" on reaching a solution on the financial package.

Safeguards in face of Dutch elections

The stepping down of the government in the Netherlands last week is bound to throw further attention onto the nature of the safeguard clauses the European Commission has proposed for the first two years after the next enlargement. Although the collapse of the Dutch government was not directly related to enlargement, pressures to seek greater reassurances about the readiness of the acceding countries was certainly part of the background.

New elections will be held within the statutory three months under Dutch law, but key decisions by EU leaders will now have to be made in what is a pre-electoral period in the Netherlands. Certainly this will be the case at the Brussels summit this week, when member states have to decide whether to back the Commission's recommendation that ten candidates should be able to complete negotiations this year. And if no new government is yet in place by the Copenhagen summit in December, the finalisation of the negotiations with the candidates will have to be conducted in the same circumstances.

Because questions have been raised in recent days by senior political figures in the Netherlands over the state of preparation of Poland, Slovakia, Lithuania and Latvia, there is likely to be even more of an incentive for member states to clarify the nature of the monitoring of acceding countries' compliance with the EU acquis in the run-up to, and immediately after, their joining.

The Commission's 9 October recommendations were accompanied by a number of cautions: notably, preparations of the ten countries for membership will continue and will be strictly monitored by the Commission, it insisted. In order to analyse progress, the Commission will regularly monitor the candidates and report to the Council of Ministers. Six months before the envisaged date of accession the Commission will produce a comprehensive monitoring report for the Council and the European Parliament. And after enlargement, the Commission will ensure proper implementation of EU law in the new member states with the same methods and rigour as in present member states.

"To ensure a smooth phasing in of an unprecedented number of new Member States in EU policies" the Commission recommends a two-year safeguard clause for the Internal Market (including food safety) and in the area of justice and home affairs, allowing flexible reaction to possible problems associated with the initial period of membership. The Commission will reorganise its own departments to allow reinforced monitoring and post-accession support for the new member states, together with continued pre-accession aid for countries that will follow the first wave.

The EU decisions on the financial conditions for enlargement will also have to be made in this pre-electoral period, and the absence of a majority government in the Netherlands will tend to complicate those discussions too. Caretaker Prime Minister Jan Peter Balkenende is to seek backing from the Dutch parliament for a clear stance on the enlargement discussions in a debate on 23 October, even though his fragmented coalition now no longer commands a majority there.

The European Commission has declined to comment formally on the Dutch situation.

Member states and candidates review justice and home affairs

The EU Justice and Home Affairs Council in Luxembourg on 14 and 15 October not only held a joint session with ministers from the candidate countries - during which it looked at Schengen and the enlargement, mutual recognition of judicial decisions in criminal matters, and joint action on the protection of commercial drivers against violent assaults - but also reached conclusions on a number of matters directly related to enlargement and the candidate countries.

One Council declaration noted that the negotiations with the candidates "have made considerable progress, in particular in the field of justice and home affairs", and insisted that "upon accession, those candidate states will become bound by the protocol on asylum for nationals of member states of the European Union" - because of "the level of protection of fundamental rights and freedoms by the candidate states". In the meantime, as from the day of signature of accession treaties, member states will deal with applications for asylum lodged by nationals of those candidates on the basis of the presumption that they are ”manifestly unfounded", on the basis that candidate states with which an accession treaty is being negotiated are safe countries of origin for all legal and practical purposes in relation to asylum matters, as from the date of signature of the accession treaty.

Another joint declaration by all 28 countries reaffirmed their shared commitment to providing citizens with a high level of safety by developing common action to prevent and to combat crime, organised or otherwise, and particularly to protect all exposed groups in society. It highlighted the risks to vehicles engaged in export trade - "an easy target for property crime in the eyes of many criminal organisations owing to the high-value goods which they often carry and the low level of manning and protection which they usually enjoy". And because commercial drivers involved in export trade form an exposed group, and trade and transport between the countries of Europe "is of the highest importance in securing the economic and political development in the region", the declaration expressed determination to ensure that measures are taken so that commercial drivers engaged in export trade do not fall victims of organised crime. The measures will include improved security on sections of road and parking sites generally, and especially in identified problem areas, with a stepped-up presence and visibility of law enforcement officials.

There was discussion between member states and candidate countries on the introduction of guidelines for the process that will lead to the implementation and application of the full Schengen acquis in the new member states. Candidates reported the state of play in their preparations for implementing their Schengen Action Plans as well as specific questions to be dealt with in the guidelines. The guidelines will include a general description of the evaluation procedure for new member states, including information on the order of events of the Schengen evaluations, as well as practical and procedural aspects of the evaluation. There was general support for the initiative and it was agreed that the guidelines would be approved in the JHA Council on 28-29 November 2002 and subsequently handed over to the candidates.

There was also discussion of how to ease implementation of the EU acquis on Justice and Home Efforts underway to make the candidates' judicial systems function more smoothly. In particular, the debate focused on how the candidates would apply the principle of mutual recognition of decisions in criminal matters. Although accession negotiations have been provisionally closed with many candidates, it was felt important to keep focusing on all the candidates' implementation of the JHA acquis. "The candidate countries should continue the reforming of their legal systems and their judicial systems in order to implement and apply not only the EU acquis on Justice and Home Affairs as already adopted but also the new legislation on Justice and Home Affairs, which is to be adopted in the period from now until the accession date," the Council agreed.

The Council also approved the possibility for candidates to be considered for participation in all programmes concerning the plan for the management of the external borders of member states of the European Union.

"Benes decrees no obstacle to Czech accession"

The Czechoslovak Presidential decrees - commonly known as the "Benes decrees" - do not represent any obstacles to the Czech Republic's accession to the EU, according to an internal study conducted by the European Commission. These legislative acts, concerning criminal liability and property rights at the end of World War II, along with others from the early 1990s, dealing with restitution in the post-communist era, have given rise to heated debate in the Czech Republic and beyond - particularly in Germany. But the Commission assessment, conducted in co-operation with Czech legal authorities, examines each of the contentious legal instruments in turn, and finds that none of them conflict with the EU acquis, and that legislative changes will not be necessary for the Czech Republic to accede to the EU.

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