The Week in Europe 01-07/04/02

15.04.2002 | Euroskop

EU news in brief

EU approves continuation of Budgetary Assistance to Palestinian Authority

The European Commission has approved the continuation of a direct Budgetary Assistance to the Palestinian Authority (PA) for an amount of € 50.000.000. The main objective of this assistance is to help the PA to deal with problems encountered by the interruption of monthly transfers of tax receipts (VAT and customs duties) by the Government of Israel (GoI) following the outbreak of the Intifada in the Palestinian Territories in October 2000. In particular, these operations are designed to help the PA to secure its basic expenditures with respect to public service salaries, social, educational, health and core functions. The support is paid monthly in equal instalments of € 10 million over the period March to July 2002.

Disbursements are made upon compliance of conditionalities mainly relating to the reinforcement of transparency in PA's public finances (consolidation of accounts), the strengthening of the viable management of the budget (containment of expenditure and particularly of payroll) and progress regards overall financial and administrative reform and legal reform.

The above mentioned conditions are monitored by the IMF.

Feedback on Commission's European Contract Law initiative now published

In July 2001, the European Commission published its Communication on European contract law to gather information on the need for farther-reaching Community action in this area. The consultation procedure it launched has generated a lively debate on European contract law and the future approach to legislation in this field on Community level. Stakeholders and interested parties responded in large numbers; Member States presented their opinions. The European Parliament and the Council have adopted reports which set an agenda for further action in a number of areas. The Commission will come forward with a follow-up of its Communication before the end of this year and published a synthesis of all contributions at:

http://europa.eu.int/comm/consumers/policy/developments/contract_law/comments/summaries/sum_en.pdf

[Background paper IP/02/496]

March 2002 - Euro-area business climate indicator up 0.2

The Business Climate Indicator (BCI) for the euro area increased by 0.2 points in March compared with February, reaching the value of -0.62. Such favourable developments were mainly driven by improved production expectations.

Full document available at 122.00 on the following address:

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

Western Balkans: European Commission publishes first annual report on the Stabilisation and Association Process

The European Commission has adopted its first annual report on the EU's Stabilisation and Association Process. Albania, Bosnia and Herzegovina, Croatia, Serbia and Montenegro mám pocit, že už je změna názvu v účinnosti. and the former Yugoslav Republic of Macedonia are the participants in this process. In the report, the Commission also proposes enhanced arrangements for political dialogue and regional co-operation with SAp participants, through the establishment of a new political forum.

[Background paper IP/02/503]

European Commission fights to improve passenger protection on ships

The Commission has proposed a new package of measures to reinforce passenger safety on ships. Two proposals aim at preventing horrific accidents such as the Express Samina's in 2000 by increasing stability requirements for vessels and by reinforcing safety rules to cater for passengers with reduced mobility in general, and high speed ships in particular. The Commission has also presented its view on how passenger protection should be strengthened through stricter liability rules when accidents do occur. These new proposals, already announced in the Commission's new White Paper on Transport, complement a series of rules adopted in the late 1990s following the Estonia accident. "There are still significant gaps between Member States in passenger ship safety rules. Repeated occurrence of ferry accidents like the Express Samina, demonstrate that we need to urgently fill these gaps and ensure consistency between the rules that apply in the European Union, irrespective of the flag of the ship," said Loyola de Palacio, Vice-President in charge of transport and energy. More information at http://europa.eu.int/comm/energy_transport/en/lb_en.html

[Background paper IP/02/502]

Statement of the President of the Commission concerning the speech of President Bush

"I warmly welcome the statement of President Bush. It is an expression of determination and leadership. We offer our full co-operation to the United States and to all other parties determined to secure full and immediate compliance with UN Security Council Resolutions - notably Resolution 1402, which calls for an immediate cessation of all acts of violence, including all acts of terror, provocation, incitement and destruction. As I have said, to this end, all of us, the United States, the United Nations, the European Union, Russia, moderate Arab states, Israel and Palestinians must work closely together. The Israeli government must act immediately to withdraw its forces from all Palestinian cities. The presence of Israeli military forces in these cities, and especially in the holy places, is inevitably exciting emotional reactions which are deepening the crisis and threaten to destabilise the whole region. The Palestinian Authority and Chairman Arafat must do everything in their power to put an end to terrorist attacks against innocent people. There is no military solution to the crisis. Negotiation is the only way forward."

Chris Patten Commissioner for External Relations welcomes statement from President Bush on the Middle East

Commissioner Patten, speaking in Singapore, gave this reaction to the latest US declaration. ”I warmly welcome the statement from President Bush. I am pleased that the US has intervened so forcefully. I will be meeting Secretary of State Colin Powell with my colleagues High Representative Javier Solana and Foreign Minister Josep Piqué at the EU/US ministerial in Madrid next week. We will be setting out in terms our support for what he is now charged to accomplish. What is important is that the whole international community should work together solidly to achieve unqualified support for UN Security Council Resolutions 1409 and 1397. There must be an end to violence, and Israeli withdrawal from the Palestinian territories, and a return to the Mitchell Recommendations. No ifs and no buts."

Eurostat news releases

March 2002 - Euro-zone inflation estimated at 2.5%

Euro-zone annual inflation is expected to be 2.5% in March 2002, up from 2.4% in February 2002, according to a flash estimate issued by Eurostat, the Statistical Office of the European Communities in Luxembourg.

[Background paper STAT/02/38]

February 2002 - Euro-zone unemployment stable at 8.4%; EU15 steady at 7.7%

Euro-zone seasonally-adjusted unemployment stood at 8.4% in February 2002, unchanged compared to January, Eurostat - Statistical Office of the European Communities in Luxembourg - reports. It was also 8.4% in February 2001.

[Background paper STAT/02/40]

Enlargement news

Further liberalisation of agricultural trade with Estonia

In the framework of the so-called "double profit" agreements between the EU and candidate countries, the Commission today adopted a proposal for a Council regulation in view of additional liberalisation of the agricultural trade with Estonia. The proposal foresees a total liberalisation of all ad valorem duties (for example for fruit and vegetables and juices, sheep meat and molasses) as well as an elimination within tariff quotas of the import duties for cereals, beef and veal, dairy products and eggs. Most other sectors - for example pig meat, poultry meat, fats and oils and a wide range of fruit and vegetables - were liberalised already in 2000. In practice, this means that the trade in agricultural products between the EU and Estonia will be completely liberalised. Furthermore, the EU has committed itself to remove the export refunds for destination Estonia for all agricultural products except for rice and sugar. Following the "double zero" agreements in the year 2000, Estonia is the first country with who the Commission reached agreement to take a further step in mutually liberalising farm trade. Commenting on the proposal, Commissioner Franz Fischler said: "Facilitating mutual farm trade before EU accession is part of the EU's strategy to prepare both sides for the EU accession and the single market." The proposal has now to be adopted by the Council and will enter into force on 1 July 2002. The negotiations with the 9 remaining Central and Eastern European Countries (CEECs) are currently under way.

European Parliament prepares reports on enlargement negotiations

The Parliament's motion for a resolution on the state of the enlargement negotiations underlines the need to be "extremely vigilant and follow closely the situation of minorities, the phenomena of racism and xenophobia and other forms of discrimination which still cause concern in some countries". It calls on all candidate countries concerned to undertake more decisive action to overcome the problems of the Roma minorities and asks them to submit a report on this to the Parliament, the Commission and the Council before the end of the accession negotiations.

The resolution also underlines the importance of promoting good governance, combating efficiently the corruption which is undermining efforts to consolidate the rule of law and ensuring the necessary support by the civil society for government policy. It asks all candidate countries to submit a report on corruption to the Parliament, the Commission and the Council before the end of the accession negotiations.

The Parliament urges the Member States to find "a satisfactory agreement as soon as possible" on the common position for the chapters on agriculture, regional policy and budgetary issues so that these may be completed in sufficient time to close the negotiations by the end of 2002, as provided for in the road-map.

The Parliament expects the Commission to present an updated road-map later this year for those candidate countries which will not be in a position to accede in the first wave.