The Week in Europe 05/-11/11/01

EU news in brief

European Conference on Local, Regional and National Energy Management Agencies

The European Commission held the first joint annual European Conference on all local, regional and national energy management agencies on 6 November 2001 in Brussels. The Conference, which was opened by Commission Vice-President Loyola de Palacio, aimed at encouraging co-operation amongst all energy management agencies with a view to foster cross-fertilisation in the promotion of energy efficiency and use of renewable energy sources. This event also gave the Commission the opportunity to discuss the review of the content and type of support which these agencies need from the European Union.

[Background paper IP/01/1535]

Commission boosts local dimension of the European Employment Strategy

On a proposal from Anna Diamantopoulou, Commissioner for employment and social policy, the Commission adopted an initiative to strengthen the local dimension of the European Employment Strategy. The policy paper suggests ways to develop employment at local level and presents steps for capitalising on existing experience and enhancing transfer of best practice at European level.

In presenting the new communication, Commissioner Anna Diamantopoulou said: "Local employment initiatives are an economic, social and governance question. Employment policies are often designed centrally, but delivered locally. Success in the fight against unemployment and social exclusion is dependent on the mobilisation of all the resources available, including at local level. This cannot happen without the support of the national and regional authorities, but it also requires the active participation of regional and local players: social partners, regional and local authorities, businesses and voluntary bodies, and individual citizens themselves. Hence the need to support capacity-building at local level."

[Background paper IP/01/1544]

New Commission websites on the WTO Ministerial meeting in Doha

To mark the fourth WTO Ministerial Conference taking place in Doha (Qatar) on 9-13 November, Directorates General Trade, Agriculture and Press are making available special pages on their websites. Download the latest press releases, speeches, publications and position papers relevant to the Ministerial Conference directly from these sites. An overview of the Commission's dialogue with NGOs on WTO negotiations is also available, as well as links with the official WTO site for the Doha Ministerial and other related sites. The sites will be constantly updated during the Doha WTO Ministerial.

DG Trade:

http://trade-info.cec.eu.int/europa/2001newround/index_en.php and

http://europa.eu.int/comm/trade/index_en.htm

DG Agriculture:

http://europa.eu.int/comm/agriculture/external/wto/newround/index_en.htm

DG Press:

http://europa.eu.int/comm/press_room/presspacks/doha/pp_doha_en.htm

Transport: Commission proposes to encourage alternative fuels, starting with biofuels

The European Commission has adopted an action plan and two proposals for Directives to foster the use of alternative fuels for transport, starting with the regulatory and fiscal promotion of biofuels. The Commission considers that the use of fuels (such as ethanol) derived from agricultural sources (i.e. biofuels) is the technology with the greatest potential in the short to medium term. The action plan outlines a strategy to achieve a 20% substitution of diesel and gasoline fuels by alternative fuels in the road transport sector by 2020. It concludes that only three options would have the potential to achieve individually more than 5% of total transport fuel consumption over the next 20 years: biofuels which are already available, natural gas in the medium term and hydrogen and fuel cells in the long term. One proposed Directive would establish a minimum level of biofuels as a proportion of fuels sold from 2005, starting with 2% and reaching 5.75% of fuels sold in 2010. The second proposed Directive would give Member States the option of applying a reduced rate of excise duty to pure or blended biofuels, when used either as heating or motor fuel.

The texts of the action plan Communication and the two proposals for Directives will be available on the Europa website at: http://europa.eu.int/comm/dgs/energy_transport/en/whats_new_en.html

and http://europa.eu.int/comm/taxation_customs/whatsnew.htm

Fight against fraud: prevention is better than cure

The European Commission has adopted a further concrete measure proposed by Budget Commissioner Michaele Schreyer that is designed to prevent fraud: the fraud-proofing of legislation proposals by the Commission. The new measure provides for the early identification of risk sectors according to criteria defined by the European Anti-Fraud Office (OLAF). A fraud-proofing unit will be established at OLAF and will have the task to analyse from the point of view of a prevention angle, legislation proposals and give advice to avoid weaknesses and loopholes. OLAF will be involved as early as possible in the preparation of drafts that are selected as presenting a high risk of fraud. Mrs Schreyer declared: "With this decision, the Commission has adopted a further step in its strategy to counter fraud and to protect the financial interests of the European Union. Prevention is better than cure."

Rare diseases: Commission authorises drug for treatment of chronic myeloid leukaemia

The European Commission granted a Marketing Authorisation for a drug expected to benefit patients suffering from chronic myeloid leukaemia. Chronic myeloid leukaemia is estimated to affect approximately 0.9 in 10,000 i.e. less than 33,750 people in the European Union. The prevalence of this disease thus falls well within the criteria for the grant of orphan (rare disease) status. This product, Glivec, contains the active substance imatinib mesilate and will be available in the 15 EU Member States. As a designated orphan medicinal product, under EU rules, it will be entitled to 10 years of market exclusivity.

[Background paper IP/01/1549]

Working together to establish a food "life-line" for the people in need inside Afghanistan

Joint Press Statement from the European Commission and the World Food Programme (WFP), Delivering food speedily to the people inside Afghanistan, is one of the biggest challenges for aid agencies. With millions of people inside the country facing chronic food shortages and possible starvation, the World Food Programme (WFP) is mounting a huge operation, working against the clock to ensure that the aid gets through. The European Commission is supporting the WFP's efforts by funding food as well as logistics and transport, which are essential to the success of the operation. €25 million are being made available to that effect. The Commission's services involved in supporting the WFP are the Humanitarian Aid Office (ECHO) and the Europe-Aid Co-operation Office, responsible for food aid and food security.

[Background paper IP/01/1547]

"Realism and flexibility are the name of the game", EU Farm Commissioner Fischler says

Speaking at the EU's opening press conference in Doha on 9 November, Commissioner Franz Fischler, the EU's chief negotiator for the WTO agriculture talks, said: "I can assure you that in Doha the European Union will play a constructive role in the agriculture talks. We have already proven that when we say "constructive", we mean business. Let me give you some examples: The EU is ready to further roll back the trade-distorting elements of EU farm subsidies and to afford special treatment to the developing countries. We are prepared to open up our agricultural markets further and to further reduce import duties. Today the end game starts. The EU has laid its cards on the table. No bluffs will be called, realism and flexibility is the name of the game. We are ready for a deal, we are prepared for give and take. If our partners play the same game, we will succeed in launching a trade round where everyone wins.

[Background paper IP/01/1540]

G7 + agreed plan to coordinate responses to bioterrorism globally

G7+ Health Ministers and Secretaries meeting in Ottawa last night agreed on a joint "Plan for improving health security". Health Ministers from Canada, the US, Japan, Germany, the UK, France, Italy, Mexico and the EU Health and Consumer Protection Commissioner David Byrne met to discuss a joint response to potential threats of bioterrorism. The G7+ emphasized the strong need to immediately upgrade emergency preparedness in all countries concerned and to effectively improve common response and alert mechanisms. Commissioner Byrne welcomed the plan as complementary to European efforts and stressed the fact that terrorism, particularly bioterrorism, is an international issue which needs an international response.

[Background paper IP/01/1553]

Eurostat news releases

Flash estimate - October 2001: Euro-zone inflation estimated at 2.4%. Eurostat issues for the first time advance information about inflation

Euro-zone annual inflation is expected to be 2.4 % in October, down from 2.5% in September, according to a flash estimate issued by Eurostat. Eurostat publishes for the first time flash estimates for the Monetary Union Index of Consumer Prices (MUICP). From this month onwards, these flash estimates will be published around the end of the reference month, i.e. between two and three weeks before the complete MUICP results are available. Eurostat seeks thereby to provide users with advance information about likely inflation movements.

[Background text STAT/01/113]

Euro-zone unemployment unchanged at 8.3%, EU15 stable at 7.6%

Euro-zone seasonally-adjusted unemployment was unchanged at 8.3% in September 2001 compared to August. It was 8.6% in September 2000. The EU15 unemployment rate was 7.6% in September, unchanged compared to August. It was 8.0% in September 2000.

Lowest rates were registered in the Netherlands (2.2% in August), Luxembourg (2.5%), Ireland (3.8%), Austria (3.9%), Denmark (4.3% in August) and Portugal (4.4%). Spain's 13.0% remained the EU's highest rate. In the last twelve months, the most important relative falls were recorded in the Netherlands (from 2.9% in August 2000 to 2.2% in August 2001), Sweden (from 5.5% to 4.9%) and France (from 9.2% to 8.6%). On the other hand, Austria, Portugal and Germany recorded a slight increase in their unemployment rates over the past year.

In September 2001, the unemployment rate of the under-25s was 16.4% in the euro-zone and 15.2% in the EU15. This compares to 16.7% and 15.8% respectively a year earlier. In September 2001, it ranged from less than 4% in the Netherlands (in August) to over 25% in Spain and Italy (in July).

US unemployment rate stood at 4.9% and the Japanese rate grew to 5.3%.

Eurostat estimates that in September 2001, 11.4 million men and women were unemployed in the euro-zone and 13.2 million in the EU15. These are seasonally-adjusted figures in line with ILO criteria.

[Background text STAT/01/114]

World Trade Organisation Ministerial Conference - The EU figures for the Doha Conference - Qatar, 9-13 November 2001

What is the share of the European Union in world trade? How has the EU's trade in services developed in the last few years? Is trade in services growing faster than trade in goods? What are the EU's strong points and weak points, when it comes to competition? What are the countries that attract European investment abroad? What is the position of the United States and Japan, and also the Candidate Countries and China, in EU trade?

This statistical compilation, published by Eurostat attempts to answer these questions in the run-up to the fourth World Trade Organisation Conference that will be held in Doha from 9 to 13 November.

This publication sets out to review the major trends in the EU's external trade by summarising the range of information that is available. It is divided into three parts: trade in goods, trade in services and foreign direct investment. For each one of these subjects, the following points are addressed: the position of the EU in the world, the main products or services traded by the EU and its external trade balance, and lastly its major trading partners.

[Background text STAT/01/117]

Enlargement news

Much remains to be done to improve competitiveness of agriculture in candidate countries, independent study says

The restructuring of agriculture is a major challenge for candidate countries in Central and Eastern Europe (CEECs). Although the picture varies from country to country, most CEECs are struggling to compete with the EU-15 and the restructuring process is far from over, according to a study released by the Directorate General for Agriculture. In the medium term after accession, the study does not consider it possible to maintain two different sets of agricultural policies for new and old members. According to the report, the key question is therefore how to achieve a successful transition towards full application of the Common Agricultural Policy (CAP) in the CEECs. Immediate introduction of full direct income payments would not be appropriate, at least in a transition phase. They would consolidate current dualistic structures without ensuring the investment and restructuring necessary to improve the competitiveness of CEEC agriculture to EU-15 levels.

The full report is available on DG Agriculture's website under:

http://europa.eu.int/comm/agriculture/publi/reports/ceeccomp/index_en.htm

[Background paper IP/01/1536]

Enlargement: Commission proposes to delay access to the national markets of Member States in the road haulage sector after accession

The European Commission proposed transitional arrangements delaying the free access to the national markets of Member States by non-resident hauliers ('cabotage') from current candidate countries after their accession. Operating costs of road goods transport by operators from most candidate countries are still significantly below the EU average and these existing cost differentials could lead to damaging disruption in the national markets of current Member States in the case of sudden cabotage market opening. Such disruption would not be in the interest of the Union. This proposal is now transmitted to the Member States who are supposed to adopt an EU common position before negotiating with the candidate countries.

[Background paper IP/01/1551]

Net emigration from candidates is 2%, says Eurostat

Slightly more people left the central European candidate countries than immigrated to them in 1998, according to new figures from Eurostat. The just-published 2001 edition of the EU statistical yearbook of the regions includes for the first time not only data on the 211 regions of the EU but also the indicators that are available for the 53 regions of the central European candidate countries.

These show that the net migration rate (the difference between the number of immigrants and emigrants per 1000 inhabitants) was negative for the candidates as a whole, at -2%, while the EU rate was slightly positive, at +1%. Among the candidates, Romania and Poland were particularly affected by emigration. Only one of Romania's eight regions (North East) and three out of 16 in Poland (Mazowieckie, Pomorskie and Wielkopolskie) had positive migration rates, and always below 2%. The most attractive regions - Yugoiztochen in Bulgaria and Strední Cechy in the Czech Republic - saw a net increase in population, recording rates of +6% and +5% respectively.

The incoming Spanish Presidency of the EU is already making its preparations for the enlargement debate. Ramon de Miguel, the state secretary responsible for EU affairs in the Spanish ministry of foreign affairs, is visiting the candidate countries: on 26 October he was in Latvia, where he met state secretary Maris Riekstins for discussions on Latvia's progress in the EU accession negotiations, the reform process in Latvia, and prospects for the Spanish presidency in the European Union, which starts at the beginning of 2002.

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