The Week in Europe 12-18/03/03

01.04.2003 | Euroskop

The Week in Europe 12-18/03/03

EU news in brief

Wider Europe Neighbourhood: proposed new framework for relations with the EU's Eastern and Southern Neighbours

The European Commission adopted a Communication setting out a new framework for relations over the coming decade with Russia, the Western NIS and the Southern Mediterranean - countries who do not currently have a perspective of membership but who will soon find themselves sharing a border with the Union. As the Copenhagen European Council confirmed, enlargement is an opportunity to promote stability and prosperity beyond the new borders of the Union. The Communication proposes that, over the coming decade, the EU should therefore aim to work in partnership to develop a zone of prosperity and a friendly neighbourhood a 'ring of friends' - with whom the EU enjoys close, peaceful and co-operative relations. It suggests that, in return for concrete progress demonstrating shared values and effective implementation of political, economic and institutional reforms, all the neighbouring countries should be offered the prospect of a stake in the EU's internal market. This should be accompanied by further integration and liberalisation to promote the free movement of persons, goods, services and capital (four freedoms).

[Background paper IP/03/358]

Towards an EU defence equipment policy: Commission proposals

The long-term needs for a competitive European defence equipment industry to support a European Security and Defence Policy (ESDP) are outlined in a Communication adopted by the European Commission. The Commission underlines that cost efficiency of defence spending, the maintenance of a competitive defence and technological industrial base, better access for EU manufactured goods to third country market, ethics and fairness in the arms trade, security of supply, and also the need to respect Member States prerogatives in this sensitive area are all important considerations when defining an EU defence equipment policy. Action by the Union Institutions is proposed to help establish a European defence equipment market. A key contribution is to seek improve the EU regulatory framework governing the treatment of armaments in Europe. In the area of research linked to global security, the Commission will invite Member States, industry and the scientific community to help identify common needs and pool know-how and investments to jointly develop technologies that could be critical for Europe's security in the long term.

[Background paper IP/03/355]

Statement by President Prodi following the assassination of Serbian Premier Djindjic (12/03)

The President of the European Commission, Romano Prodi, stated : "I am dismayed and appalled to hear of the brutal attack that has cost the life of Serbian Prime Minister Zoran Djindjic. Our first thoughts are for the family and all the people of Serbia, and we send our deepest sympathy to them. During this transitional phase of the country's history, the Commission stands by Serbia's side and it will continue to do so in the future, just as it will keep doing all it can to ease a reform process that is still under attack from violent antidemocratic and anti-liberal forces. The death of Zoran Djindjic will not affect our resolve to support Serbia in its efforts to join the rest of the European family. It is our firm and resolute intention to step up our endeavours, our efforts and our work alongside the forces of democracy in Serbia and by the side of the Serbian people, so it can definitively set behind it the painful legacy of a recent tragic past."

Innobarometer 2002: innovative European business managers build on skills and dynamic markets

European companies continue to invest in new products and services despite often difficult economic conditions, reports the 2002 Innobarometer poll. 3,000 EU managers were interviewed in September 2002 on their companies' innovative performance. They relate progress in innovation above all to the qualifications and professionalism of their staff and consider the opportunities provided by the EU's internal market as a decisive advantage for innovation. For further information:

http://www.cordis.lu/innovation-smes/src/innobarometer.htm

[Background paper IP/03/373]

GALILEO: 18 March 2003, Investors' Day

Over 500 industry leaders from all across the world are expected to be present at the briefing session on the GALILEO satellite radionavigation programme which the European Commission has organised for 18 March 2003. The meeting, which will be inaugurated by Commission Vice-President Loyola de Palacio, will enable investors to be informed about the development of the programme, the stages leading to the choice of the future concession-holder and the various services that satellite radionavigation can provide.

[Background paper IP/03/372]

Tracks clear for freight rail transport in Europe

15 March will be a historic date for European rail transport: the first rail package, which will make the rail freight transport more competitive and more European, will be fully effective in the Member States. This package comprises a series of measures relating to the opening-up of the international freight market which will enable rail companies to provide competitive European services to meet the demands of industry and forwarders. "Many rail companies are impatiently waiting for this date to launch new commercial strategies based on making use of rail's strong point: long-distance transport on a European scale. This will only be effective if the Member States transpose and implement in practice the Community provisions in their national legislation. The Commission will take the necessary measures to ensure that this happens as soon as possible" said Loyola de Palacio, European Commission Vice-President for Energy and Transport. More information on the current developments in rail transport in the EU can be found on the Commission's website for rail transport and interoperability:

http://europa.eu.int/comm/transport/rail/index/index_en.html

[Background paper IP/03/378]

EU research analyses the new "development model" for Europe

The challenges facing Europe's distinctive model of development are the focus of 33 research projects presented by the Commission. The post-World War II model is not adapted any more to today's realities: its approach of combining economic, social and sustainability goals needs reassessing given the many changes in the world. Its aims of improving people's quality of life and encouraging their integration into a wider European society could be increasingly difficult to achieve without a fundamental rethinking of principles. The Commission projects analyse challenges such as increasing pressure coming from international competition, changes in financial markets, growing inequalities, migration and ageing. For further information please visit:

http://www.cordis.lu/citizens/

[Background paper IP/03/376]

Commissioner David Byrne launches EU Consumer Affairs web site to mark World Consumer Day

David Byrne, the Commissioner for Health and Consumer Protection, launched the European Commission's new multi-lingual Consumer Affairs web site. The launch of the site was timed to mark World Consumer Day, which takes place every year on 15 March. The "right to be informed" is one of the four fundamental consumer rights that World Consumer Day is designed to highlight. Commissioner Byrne emphasised the Commission's recognition of, and commitment to, this right. The homepage of the Commission's new Consumer Affairs web site is available in 11 EU languages at:

http://europa.eu.int/comm/consumers

[Background paper IP/03/382]

Eurostat news releases

February 2003 : Euro-zone annual inflation up to 2.4% ; EU15 up to 2.3%

Euro-zone annual inflation rose from 2.2% in January to 2.4% in February 2003, Eurostat reports today. A year earlier the rate was 2.5%. EU15 annual inflation rose from 2.1% in January to 2.3% in February 20032. A year earlier the rate was 2.3%. In February, the highest annual rates were recorded in Ireland (5.1%), Greece (4.2%) and Portugal (4.1%) ; the lowest rates were observed in Germany (1.3%), Belgium (1.6%) and Austria (1.8%).

[Background paper STAT/03/31]

Enlargement news

Commission regrets failure of UN efforts to solve Cyprus problem and confirms accession process will go ahead as scheduled

The European Commission regrets that the efforts of the United Nations Secretary-General, Mr Kofi Annan, to find a comprehensive settlement to the Cyprus problem have not been successful. The Commission has lent its full support to this process and recalls the willingness of the European Union to accommodate a settlement in line with the principles on which the EU is founded. While such a settlement was the preference of the European Union, the Commission confirms that the accession process will go ahead as foreseen according to the existing timetable. All the necessary preliminary legal steps have been taken to permit this. The Commission notes the statement of the Secretary-general that his plan remains on the table. The Commission is ready to assist any further efforts in this context. The Commission encourages all parties concerned, and, in particular Turkey, to strive to achieve a settlement. The Commission expresses its solidarity with all Cypriots and acknowledges the courage with which the Turkish-Cypriots have expressed their European convictions. The Commission will continue to support projects in Cyprus to benefit both communities, to reduce economic disparities on the island and to build confidence between them.

Slovenia looks forward to reinforced role

"Membership of the EU will reinforce Slovenia's role in the international community, and consolidate its role as an independent and recognisable state in the area of European values", according to Slovenian Foreign Minister Dimitrij Rupel. He told the Greek Presidency last week that by harmonising its legislation with the rules of the EU, Slovenia is successfully continuing the process of strengthening the economy and improving its competitiveness so as to become a market economy. "When Slovenia joins the European Union, intense competition in the common market will force Slovenian companies to improve their productivity and innovativeness, and thus also their competitive ability", he predicted.

He expects the coming months to be "very demanding as regards harmonisation with and implementation of the EU acquis communautaire" - particularly in terms of environmental legislation. This will require "major financial investments in environmental infrastructure" - particularly on prevention and control of industrial pollution, sewage treatment, and packaging and packaging waste management, he forecast.

But he also looked forward to integration enabling Slovenia to take an active part in joint European initiatives, and providing greater political and military security. "Following the next enlargement, the south eastern border of Slovenia will become an EU external border. Slovenia is aware that it will have to assume important obligations in protecting this border", said Rupel. But because of his country's interest in retaining economic, scientific and cultural ties with countries outside, he expressed warm appreciation for the idea of a more widely enlarged Europe. "EU enlargement must not stop after 2004; it must continue. It is right that the opportunity be given to other countries in South Eastern and Eastern Europe: Romania, Bulgaria, Croatia, Bosnia and Herzegovina, Serbia and Montenegro, Macedonia and Albania", he said.

Rupel also set out his views on the future shape of European governance: "The present institutional composition does not suffice to meet the challenges arising from enlargement. Furthermore, the Union must be brought closer to its present and future citizens. Two goals must be pursued and harmonised: to improve the efficiency and the democratic legitimacy of institutions and decision-making processes in the enlarged Union". Understandably, as foreign minister of one of the smallest new member states, he insists on the principle of equality between states - large and small, old and new members. "We are not in favour of creating new institutions or a system that would blur their competencies or result in overlapping or duplication", he said. He emphasised his support for each country having its own commissioner, at least for the next five years. "This would make it easier for Slovenia and other new members to identify themselves with the Union, which would further increase its legitimacy", he argued.

€30 million from Phare for external borders co-operation

The European Commission is allocating €30 million of Phare funds for 2003 to support cross-border actions at the EU's future external borders in central and Eastern Europe. This is in line with general EU encouragement for social and economic activities that can alleviate the risk of new dividing lines at the future borders of the Union. As a result, part of the funding for national Phare programmes in the candidate countries and new member states can be used to develop relations with adjacent countries of the former USSR and with the Balkans. It will be possible to combine the funding with other EU funding programmes, such as Tacis for the ex-USSR, and CARDS for the Balkans. This allocation is also intended to help new member states prepare for using funding from the EU's INTERREG programme of cross-border co-operation in 2004-2006. It should help develop administrative capacity, building up of local institutional, economic and social actors, and preparation of further grant support submissions. Most of the allocation - €7.29 million - will go to Romania, followed by Poland (€6.28 million). The other countries (except the Czech Republic, which will have no external borders) will receive between €1.15 million and €4.14 million. The Commission aim is to approve proposed projects before the summer break.

European Parliament wants a simpler enlarged ECB

When the European Central Bank has to enlarge as new member states adopt the euro, its structure should correspond to the enlarged EU, the European Parliament argued last week. MEPs threw out a plan for a rotating system of representation as "too complex". Instead, they voted for a recommendation that in the medium term each central bank governor should have voting rights - as at present, and that the Governing Board should take decision by a simple majority. And over the longer term, the Parliament wants a new statute to be adopted by the next Inter-Governmental Conference, creating an enlarged Executive Board taking operational decisions on interest rates, and a Governing Council making broader monetary policy strategy decisions on a double majority, with "one person, one vote" and a second vote taking into account the state's population size, GDP and the strength of the financial sector.

Emissions trading consultations with new member states

The EU Council of Ministers is discussing with the acceding states its position on greenhouse gas emission allowance trading. At the request of Hungary, the Council's special interim committee - established for this type of consultation in the run-up to accession - met on March 13. On the agenda was the Common Position adopted by the Council on the European Commission's draft directive establishing a scheme for greenhouse gas emission allowance trading within the EU. Latvia and Malta also made clear their interest in obtaining further information on the way the proposed directive will be implemented. This was only the second meeting of the interim committee, which is composed of representatives of the EU, the European Commission, and Poland, the Czech Republic, Hungary, Slovakia, Estonia, Latvia, Lithuania, Slovenia, Cyprus and Malta. It met for the first time on 27 February 2003, for similar consultations on the Common Position on the draft EU directive on packaging and packaging waste. The committee was set up last December, to allow the acceding states input into EU decision-making pending signature of the Accession Treaty. After that, acceding states will be able to take part in EU meetings as of right, as "active observers", until they become full members on 1 May 2004.