The Week in Europe 06/05-12/05/02

EU news in brief

Reaction of European Commissioner Frits Bolkestein to the killing of Pim Fortuyn

"This is a tragic event, that I condemn. As a democrat, a Dutchman and a European, I am profoundly shocked by the killing of Pim Fortuyn. In the Netherlands, and in Europe as a whole, we have struggled hard to establish the fundamental right for everyone to express his or her views and the right to stand for political office. These rights form an integral part of our democratic societies. Any attack on these rights is an attack on democracy and on our way of life. We must not allow ourselves to be intimidated or prevented from exercising these rights. I would like to offer my sincere condolences to Pim's family and friends."

Postal services: Commission welcomes adoption of a new Directive fostering competition

The European Commission has welcomed the definitive adoption by the Council of a new Postal Services Directive (see also IP/02/406 and IP/01/1420) pushing forward the gradual and controlled implementation of the Internal Market for postal services, combining more competition with maintaining a universal service. Improved postal services and lower prices are among the benefits expected. The new Postal Services Directive requires Member States to open up substantial additional sections of the market to competition from 2003 and 2006, and defines further steps to be taken later towards the completion of the Internal Market for postal services.

[Background paper IP/02/671]

G10 Medicines Group publishes report and discusses conclusions in a public forum

The G10 Medicines Group will meet to formally hand its report to European Commission President Romano Prodi and will on this occasion launch the report publicly and discuss the next steps. The Report sets out 14 Recommendations as a framework for further action at both EU and Member States' level to improve the competitiveness of the European-based pharmaceutical industry in line with achieving EU public health and social objectives.

Further information on the G10 Group can be found on the G10 Medicines website:

http://pharmacos.eudra.org/F3/g10/g10home.htm

[Background paper IP/02/670]

Europeans and culture: main findings of a Eurobarometer survey

Reading, music, television, Internet use or artistic activities. The European Commission and Eurostat wanted a snapshot of the diversity of the cultural habits of Europeans. The poll that is being published confirms the mass phenomena common to all Europeans (importance of television and cinema), but also reveals major differences in cultural habits (reading of newspapers, use of the new information and communication technologies).

The set of tables can be found on the following website:

http://europa.eu.int/comm/public_opinion/archives/eb/ebs_158_en.pdf

[Background paper IP/02/667]

European Commission offers financial assistance for initiatives to improve democracy and human rights

EuropeAid has launched four new calls for proposals under the European Initiative for Democracy and Human Rights (EIDHR). In May 2001, the Commission adopted a policy statement, or Communication, on the EU's role in promoting human rights and democratisation in third countries. In particular, this Communication recommended focusing EIDHR financial support on thematic priority areas. The four calls for proposals are aimed at the following areas: 1) Support for the abolition of the death penalty, 2) Fighting impunity and promoting international justice, 3) Combating racism, xenophobia and discrimination against ethnic minorities and indigenous people, 4) The prevention of torture and the provision of support for the rehabilitation of torture victims. Established in 1994, the main aim of the EIDHR is to promote human rights, democracy and conflict prevention in third countries by providing financial support for activities supporting these goals.

http://europa.eu.int/comm/europeaid/projects/ddh/documents_en.htm

http://europa.eu.int/comm/europeaid/projects/ddh/cfp_en.htm

[Background paper IP/02/678]

Commission provides further EUR 3.5 million in emergency humanitarian aid for the Palestinian Territories

The European Commission has adopted an emergency decision to provide relief worth €3.5 million to victims of the conflict in the Palestinian Territories. This is on top of the €5 million in humanitarian aid allocated at the beginning of April. The funds are managed by the Humanitarian Aid Office (ECHO) and are being channelled through seven of ECHO's experienced NGO partners in the region and the International Committee of the Red Cross (ICRC). ECHO is a Commission department which comes under the responsibility of Commissioner Poul Nielson.

[Background paper IP/02/690]

Reports from new Observatory of European SMEs shed new light on small business in EU

The first three reports from the new Observatory of European small and medium-sized enterprises (SMEs) have been posted on the European Commission's enterprise web pages. These reports provide a large amount of information about the structure of businesses in Europe, and on the challenges facing business people. All three reports can be downloaded free of charge from:

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

[Background paper IP/02/690]

Statement by European Commission President Romano Prodi on Europe Day (9 May 2002)

On 9 May 1950, Robert Schuman made his now-famous "declaration", setting out radically new proposals for uniting the free nations of Europe and securing a lasting peace on this continent.

Schuman's ideas became the foundation for the European Community today the European Union. It is a family of countries committed to peace, democracy and fundamental human rights, united by common values and a common cultural heritage, building and sharing prosperity together.

Over half a century our Union has achieved extraordinary things. It has secured peace among its Member States and raised their standard of living to levels undreamed of two generations ago. It has created a single, frontier-free market and a single currency, the euro. It is a major economic power and the world leader in development aid, committed to promoting free and fair trade and sustainable development around the globe. Its membership has grown from six to fifteen nations and it is now preparing to embrace a dozen more.

The EU's extraordinary success owes much to the fact that it is not just an international organisation based on co-operation between governments. It is, in fact, a unique union in which countries pool their national sovereignty to gain a strength and world influence none of them could have on its own.

The EU has a unique and effective decision-making system in which the Commission (politically independent but accountable) works together with the Council (representing the Member States) and Parliament (representing the people) to propose and adopt EU-wide laws. The Court of Justice upholds the rule of law in all we do. Every major step forwards over the past half-century has been taken using this "Community method".

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, 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 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.

It is vital that all sections of European society be actively involved in the debate about the future of Europe. After all, the EU exists for its citizens and they must build it from the bottom up. The future of Europe is your future, and there's no better time to start discussing it than today, 9th May 2002.

Happy Europe Day!

Eurostat news releases

Third release for the fourth quarter of 2001 - Euro-zone GDP down by 0.2% and EU15 down by 0.1% ; +0.6% and +0.7% respectively compared to 4th quarter of 2000

Gross Domestic Product (GDP) decreased by 0.2% in the euro-zone and by 0.1% in the EU15 during the fourth quarter of 2001, according to estimates out from Eurostat. Economic growth had reached 0.2% for both zones during the previous quarter. In comparison with the fourth quarter of 2000, euro-zone GDP grew by 0.6% and that of the EU15 by 0.7%, after increases of 1.4% and 1.5%, respectively, in the previous quarter. During 2001, GDP in the euro-zone increased by 1.5% and EU15 GDP by 1.6%, after +3.4% for the euro-zone and +3.3% for the EU15 in 2000.

[Background paper STAT/02/56]

Enlargement news

Candidate country firms are keen on accession, but are they ready?

The private sector in central Europe is optimistic about its prospects once it joins the single EU market, and it is a strong supporter of EU accession. But most firms admit they don't have enough information about the EU, and half of them have not yet started to prepare for accession. These are the principal conclusions of the Eurochambres survey on the readiness of the corporate sector in central Europe for the single market, published on April 29. "Companies and authorities need to intensify their efforts immediately to prepare the corporate sector", it says. "It is imperative to involve both governments and civil society in this process, to ensure that enlargement is well understood and accepted by all", remarked Eurochambres President, Christoph Leitl.

More than half the 2,500 companies polled in the ten central and east European candidate countries said they felt only partially informed about adjustments that need to be made, and that they were not yet prepared for accession. Nearly a third have no information at all or feel they are not concerned by the EU acquis. But with the accession coming closer, they are becoming better aware of the complexity of the acquis and tend to be more critical about their own state of readiness.

In particular, the level of information on the acquis is still insufficient, with less than 10 % of companies claiming to be fully informed. More than half of the respondents admit they do not sufficiently exploit the available sources of information. Only a third of them declare using the possibilities to its full. The best informed seem to be companies from Latvia, Bulgaria, Slovenia and Czech Republic, and the least informed from Hungary, Poland, Slovakia and Romania.

Companies rate their current level of compliance quite low (2.2 on a scale of 1-4), although most of them are quite optimistic about their future compliance with EU legislation. Small companies and companies mainly operating on the domestic market are generally less prepared for enlargement: they are less informed on the acquis, their current level of compliance is lower and they are less advanced in their preparation to achieve compliance. One in four firms admit that programmes for preparation are only now being drafted.

Firms consider their current compliance with the acquis is highest in product certification, technical regulations, and standards; consumer protection; and producer liability - the areas they perceive as the most important, and the most difficult to comply with. Most firms have no precise idea about the costs of compliance; only 12% have actually made a cost estimate, and most of them believe that the costs will be below Euro 0.5 million.

There is widespread optimism in the business community about its prospects: two-third of respondents are "rather optimistic", compared to just half of them in a similar survey a year ago. Joining the EU is expected to bring more open and competitive markets, and firms are confident about their future. Expectations vary between the 10 countries over the consequences: the three options that scored highest ("easier access to EU markets", "tougher competition on home market by European companies" and "more transparent business practices on the home market") are the same in all countries, except for Lithuania and Romania, where "bigger inflow of foreign direct investments" comes in second place, with "tougher competition" in third place for Lithuania and "better access to capital markets" for Romania. Only 12% of respondents are pessimistic - compared to last year's result, when more than a third said they were pessimistic.

Among Czech companies, the majority - 65% - are optimistic to very optimistic, slightly below the 10-country average of 69%, but the number of pessimists is the second lowest with 8%; one-tenth of respondents expect serious difficulties in the financial and commercial areas, while almost two-thirds expect only minor difficulties; almost two-thirds expect to be able to adapt to the single market without changing the company strategy (31%) or using only their own means (41%), while only 17% seek a strategic partner.

Latvia doesn't like the agriculture proposals

"Fervent" discussions are taking place in Latvia over the European Commission's proposals for agriculture - the draft now under examination by member state ministers as the EU seeks to find a common position. Although Latvia says it appreciates "most of the suggestions made by the Commission", some issues "raise concerns", according to a Latvian government analysis of the Commission document.

Latvia is particularly disappointed at the Commission's proposals for quotas on milk, cereals, and sugar. It also wants a much shorter phasing-in of direct aids for farmers.

There is also Latvian opposition to extending the transitional period for direct payments until 2013. The current and the new member states should agree together on the agriculture expenditure within the next financial perspective starting in 2007, it argues. Absence of full direct payments cannot be easily replaced by structural measures intended for modernisation, since private co-financing is required for investments in modernization, it argues.

Latvia says it is ready to explore different approaches and to come up with counter-proposals "in order to find satisfying solutions to its concerns".

Nice ratification - "and then there were four"

The United Kingdom is expected to deposit its instrument of ratification for the Treaty of Nice in early May, following the completion of all national legislative procedures. This will leave just four of the fifteen EU member states to ratify the Treaty: Greece, Ireland, Belgium, and Italy - and a plenary session discussion of the Italian parliament is scheduled for May 7, which could lead to rapid conclusion of the process there, too. In Belgium, the French-speaking community assembly approved the necessary legislation on April 23, the Senate did so on March 7, and the Chamber of Deputies on March 28. However, the procedure in Belgium still requires ratification by four further assemblies. In Greece, the Chamber of Deputies gave its approval on March 20. In Ireland, the national debate is still underway following the rejection of the Treaty in a popular referendum in June 2001: a second referendum in the autumn is the current projection. All other member states have now completed their national procedures and deposited their formal instrument of ratification with the Council of Ministers. The Treaty will come into effect on the first day of the second month following the last deposit of a ratification instrument by the fifteenth Member State. The aim had been to complete the procedure by the end of this year, to coincide above all with the timetable for completing accession negotiations with EU candidate countries. Non-ratification of Nice would present a serious impediment to the plans for EU enlargement, and creating alternative arrangements on the matters that Nice settled (particularly on voting rights) would certainly take time.

Euro 3.9 billion committed by ISPA

The EU's instrument for structural policies for pre-accession - ISPA, as it is known by its abbreviation - is celebrating its second anniversary, and has revealed that it has committed Euro 3.9 billion to 169 projects in transport and the environment in the candidate countries of central and eastern Europe since it came into being in 2000. 100 of the projects are in the field of the environment, and account for 38.4% of the total granted, while the rest are in the field of transport. The EU grant is only part of the finance for these projects: together with funding from the beneficiary countries and from international financial institutions, the total being put into these projects is over Euro 6 billion. In round figures, the national breakdown is as follows:

· Bulgaria: nine projects, with EU assistance of Euro 349 million

· Czech Republic: fourteen projects, with EU assistance of Euro 171 million

· Estonia: fourteen projects, with EU assistance of Euro 82 million

· Hungary: twenty-three projects, with EU assistance of Euro 337 million

· Latvia: seventeen projects, with EU assistance of Euro 219 million

· Lithuania: sixteen projects, with EU assistance of Euro 143 million

· Poland: thirty-five projects, with EU assistance of Euro 1.4 billion

· Romania: twenty-two projects, with EU assistance of Euro 1 billion

· Slovakia: ten projects, with EU assistance of Euro 172 million

· Slovenia: nine projects, with EU assistance of Euro 45 million

Austria's gains from enlargement

An increasing number of Austrian companies are taking advantage of the opportunities for growth that enlargement offers in central and eastern Europe, according to a new study from Bank Austria. Between 1990 and 2001 the number of Austrian companies active in the candidate countries has risen from less than 1,000 to more than 12,000, it says. And since 1990 Austria has recorded an aggregate trade surplus of Euro 14 billion with just five of the candidates: Poland, the Czech Republic, Slovakia, Hungary and Slovenia. "This figure must be set against a calculated cost for enlargement of Euro 5.3 per EU citizen in the first year, and Euro 18 in the third year. The discussion about the costs of EU enlargement ignores reality. This bill has long been settled", says Bank Austria's chief economist, Marianne Kager.

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