The Week in Europe 16-22/06/01

09.07.2001 | Euroskop

Brief summary of Göteborg European Council Enlargement

Enlargement is irreversible. This is the signal from the European Council to the candidate countries. Negotiations with the best prepared countries should be completed by 2002. The target is that the first candidate countries should become members in 2004. The objectives of the Nice summit have been surpassed. The European Council confirmed the breakthrough in negotiations during Sweden's Presidency.

Environment

A strategy for sustainable development has been adopted which means that ecological issues will be just as important as social and economic issues. Environmental aspects will be weighed into every individual proposal drawn up in the major policy areas in the EU from the year 2003. The strategy will concentrate on four themes: climate, transport, public health and natural resources.

EU-USA

Despite the disagreement on the Kyoto Protocol, both sides emphasised the need for continuing the dialogue. A special group will be established to discuss this issue further. The Middle East, the Western Balkans and the Korean peninsula are included in the areas in which the EU and the USA will continue their co-operation or joint foreign policy action.

EU external relations

Progress in the Western Balkans through the stabilisation process. Council Declaration on the Former Yugoslav Republic of Macedonia. The Council welcomes Solana's report and supports the Mitchell-report which forms the basis for a renewed peace process in the Middle East. * EU steps to develop closer cooperation with Russia.

Full employment in a competitive EU

The message from Göteborg is that the EU will continue to follow the same course, with policies for:

· Strong public finances

· Low inflation

· Increased supply of labour

· Continued economic reforms

The common European security and defence policy

New concrete objectives, to be reached by 2003, have been established for civil crisis management. The European Council stresses the need for an agreement with NATO which will give the EU access to NATO's assets and resources. The European Council approved the EU programme for the prevention of violent conflict. Official summit web page: http://eu2001.se/static/eng/eusummit/goteborg_1.asp

Data protection: Commission approves standard contractual clauses for data transfers to non-EU countries

The European Commission has adopted a Decision setting out standard contractual clauses ensuring adequate safeguards for personal data transferred from the EU to countries outside the Union. The Decision obliges Member States to recognise that companies or organisations using such standard clauses in contracts concerning personal data transfers to countries outside the EU are offering "adequate protection" to the data. The EU's data protection Directive (95/46/EC) requires all personal data transferred to countries outside the Union to benefit from "adequate protection". Use of these standard contractual clauses will be voluntary but will offer companies and organisations a straightforward means of complying with their obligation to ensure "adequate protection" for personal data transferred to countries outside the EU which have not been recognised by the Commission as providing adequate protection for such data. So far, only Switzerland, Hungary and the US 'Safe Harbor' arrangement have been recognised as providing adequate protection (see IP/00/865). [Background paper IP/01/851]

European Council in Göteborg : A big step forward for sustainable development

European Environment Commissioner Margot Wallström said in a speech at the Centre for European Policy Studies in Brussels that the European Council in Göteborg was "a big step forward - putting the environmental dimension of sustainable development on the same footing as economic and social development, and by inserting it in the Lisabon process". The Commissioner also welcomed the the European determination to address climate change. She continued : "The environment remains at the top of citizens' concerns and is an area where the EU is expected by people to provide added value over action by Member States. This also means that it is an area where the EU can demonstrate that it merits the citizens' support. In that sense, Göteborg has also been a Summit that carries a message to the man in the street." [Background paper SPEECH/01/295]

May 2001 - Euro-zone annual inflation up to 3.4% ; EU15 up to 3.1%

Euro-zone annual inflation rose from 2.9% in April to 3.4% in May according to Eurostat data published on 18 June. A year earlier the rate was 1.9%. EU15 annual inflation rose from 2.6% in April to 3.1% in May. A year earlier the rate was 1.7%. In May, highest annual rates were in the Netherlands (5.4%), Portugal (4.9%) and Spain (4.2%) ; lowest rates were in the United Kingdom (1.7%), France (2.5%) and Denmark (2.8%). Annual inflation rose from 1.2% to 1.8% in Switzerland and from 3.3% to 3.6% in the USA. Core inflation, i.e. excluding energy, food, alcohol and tobacco, rose to 2.1% from 1.9% in April 2001. Energy is the component with the biggest upward impact on inflation followed by food (especially unprocessed food). The services sector and non-energy industrial goods have a significant down-ward impact with lower than average inflation sub-indices.

Taxation: the Commission proposes strengthening cooperation to combat VAT-related fraud

The European Commission has proposed a regulation to strengthen cooperation between Member State tax authorities to combat fraud relating to value added tax (VAT), by removing outstanding obstacles to the exchange of information. The proposed regulation has three main objectives: to lay down clearer and binding rules governing the exchange of information, to provide for more direct contact between national anti-fraud agencies, and to facilitate more intensive exchange of information. The proposal thus aims to remedy the weaknesses identified in the Commission report on VAT fraud (see IP/00/115), as part of the new VAT strategy (see IP/00/615). In addition, the Commission is proposing to amend Directive 77/799/EEC concerning mutual assistance in the field of direct taxation so that Member States can exchange information concerning certain taxes levied on insurance premiums. See also MEMO/01/230. [Background paper IP/01/857]

Debate on Agriculture and Food in Europe: Commissioners Fischler and Byrne speak at Public Hearing in the European Parliament - June 20/21 2001

David Byrne, Commissioner for Health and Consumer Protection, and Franz Fischler, Commissioner for Agriculture, Rural development and Fisheries will speak at a public hearing in the European Parliament on "Quality Production and the Common Agriculture Policy." In early March this year, Commissioners Fischler and Byrne launched a Union-wide debate on Agriculture and Food in Europe. A review of agri-food production systems is firmly on the European Union's agenda on the strength of the EU-wide debate on Agriculture and food, which was discussed at the informal Agriculture Council in Oestersund in April. The future of Agriculture and Food is as well at the core of the Round Table discussions organised by the two Commissioners in the Member States. Both Commissioners welcomed the organisation of this hearing in the European Parliament and it's contribution to the debate. [Background paper MEMO/01/232]

Top officials from across Europe agree plans for on-line government services

Senior civil servants from the public administrations of 28 European countries have endorsed recommendations for the development of on-line government services. Putting more government services on-line for citizens and businesses across Europe is an important element of the Commission's eEurope Action Plan. This happened at the joint Swedish Presidency and European Commission conference "eGovernment in the service of European citizens and enterprises what is required at the European level" held in Sandhamn, Sweden, on the 13th 14th June 2001 within the overall framework of the eEurope 2002 Action Plan. The main objective of the conference was to identify and promote e-Government services at the European level for citizens and enterprises, to examine what needs to be done and how it should be done, at the European level, and the impact on the Member States. This was the first time that Europe's senior civil servants, from the EU Member States, European Economic Area (EEA) countries, EU candidate countries and European institutions, have come together to discuss what is required to open up national e-government services to citizens and enterprises in other European countries. This is essential for the continuing development of the European Union. Detailed recommendations will be published shortly on the IDA web site at: http://europa.eu.int/ISPO/ida/. [Background paper IP/01/859]

Commission confirms need to tackle cross-border investment restrictions and energy market distortions

The need to ensure that measures taken by public authorities in the Member States do not restrict, directly or indirectly, investment between Member States in violation of EC Treaty rules on the free movement of capital and the right of establishment, as outlined in its 1997 Communication, was confirmed by the European Commission at its 20th June meeting in Brussels. The Commission also reiterated the need for rapid adoption by the EU's Council of Ministers and the European Parliament of the March 2001 proposals to liberalise fully EU energy markets. The Commission underlined that it will continue to apply vigorously competition and state aid rules. In the event of delay in the adoption of the energy liberalisation Directives creating distortions of competition, the Commission agreed to consider adopting itself Directives or Decisions, on the basis of Article 86 of the EC Treaty, notably its third paragraph. Article 86 also guarantees that the application of competition rules does not prevent operators from fulfilling their public service obligations. [Background paper IP/01/872]

Commission fines Michelin for abusive commercial behaviour

The European Commission has decided to impose a fine of € 19.76 million on French tyre maker Michelin for abusing its dominant position in replacement tyres for heavy vehicles in France during most of the 90s. After a careful and lengthy investigation, the Commission has come to the conclusion that Michelin's complex system of quantitative rebates, bonuses and other commercial practices illegally tied dealers and foreclosed the French market to other tyre manufacturers. The infringement is all the more serious that this is the second time that Michelin engages in similar anti-competitive behaviour in Europe. [Background paper IP/01/873]

Commission clears Austrian environmental premium for inland waterway

The European Commission has decided not to raise objections to a pilot programme by the Austrian Federal Government aiming at encouraging a modal shift in favour of inland waterways. The pilot programme grants an environmental premium to new inland waterway services on the Danube river. "The Austrian scheme complements efforts we are making at European level to stimulate more sustainable transport", said Commission Vice-President Loyola de Palacio, in charge of energy and transport policy. "The Pilot Programme is leading the way towards more efficient state aid to take trucks off the road and ensures that competition is not unduly distorted. It is also positive that it includes the Eastern neighbours of the European Union." she added. Between 2001 and 2005, the Austrian Pilot Programme intends to shift 3% of international road transport to, from and via Austria in the Danube corridor to new inland waterway services. This would result in 2.5 million tons transferred from road to a more environmentally friendly mode of transport. . [Background paper IP/01/878]

Commission proposes EU strategy for long-term investment in high-quality jobs and living standards

The Commission adopted a plan aiming to raise the quality of EU jobs and living standards. The new strategy aims to benchmark governments, social partners and NGOs on the basis of 'quality indicators' for individual jobs, labour markets and social policies. The proposal, tabled by Employment and Social Affairs Commissioner Anna Diamantopoulou, calls upon member states to create an environment for better-paid, better-skilled, safer and healthier jobs, as well as better access to jobs and better social provision. As agreed at the Lisbon summit and in the Social Policy Agenda endorsed at Nice, these goals should be reached by following best practice and by investing long term in human resource capital. For governments, this will mean shifting the balance of public resources from passive social transfers to investment. The Commission also proposes periodic 'quality reviews' to ensure that member states' employment and social policies are designed and mixed to achieve the standards of the best performers. These proposals for quality indicators and quality reviews - include existing and new indicators (including some subjective indicators) and will feed into existing processes such as the annual co-ordination of employment policies. The indicators are intended for endorsement at the Laeken summit in December 2001. [Background paper IP/01/880]

Viviane Reding on "Television without frontiers" directive

In a speech hold on 22 June at the RTL Group Management Conference in Venice, European Commissioner for Education and Culture Viviane Reding stressed that : "The significance of changes in the audiovisual market is such as to encourage us to rethink the concept of broadcasting. Even where content is simultaneously distributed, this in no way means that it will be simultaneously viewed. Perhaps the time has come to think in terms of users who have access to a vast range of electronic content, which can take a wide variety of forms, at a time - and very often at a place - of their own choosing. In such a scenario, some public interest objectives, such as pluralism, will increasingly be met by the market itself. Where they are not, self-regulation may play a greater role than hitherto. Above all, we must avoid over-regulation, which might hinder the development of the market and harm Europe's competitiveness. Europe's competitiveness depends in great part on the rapid move to the Information Society. We must ensure a flexible regulatory framework that encourages innovation and transition." [Background paper SPEECH/01/304]

President Prodi speech on the Nice Treaty at the University College, Cork, Ireland, 22 June 2001

"The essential purpose of Nice is to enable us to welcome, within a few years, all twelve of the countries currently negotiating accession. 10 of the Candidate Countries have lived under dictatorship for 45 years. These fellow Europeans were deprived of freedom, democracy and a decent standard of living through no fault of their own. Since the collapse of the Iron Curtain they have undertaken enormous changes in their economies and politics and have undergone enormous pain in the process. Over the past 10 years all 12 applicant states have been striving to meet the economic, legal and administrative imperatives of membership of the European Union. Can we now turn around to tell them we are unable to establish a renewed institutional framework, which can cope with the whole enlargement process. Or, even worse, basing ourselves on formalistic legal details, to say ,not all of you can join our club"? [For the speech see SPEECH/01/305]

Enlargement News

Commission welcomes Candidate Countries' push to embrace e-economy

At the launch of the eEurope Plus Action Plan on 16 June 2001 in Gothenburg, the European Commission warmly welcomed the undertaking of the Heads of Government of the EU Candidate Countries to embrace the challenges of the knowledge-based economy. The eEurope+ Action Plan aims to assist in accelerating reform and modernisation of the economies in the Candidate Countries through the use of Information Society technologies and tools. It is mirrored on the eEurope 2002 Action Plan of the EU-15 but with additions and changes of the objectives, actions and timetable to reflect the economic and social situation in the Candidate Countries. [Background paper IP/01/852]

Pre-accession farm aid: Go-ahead for 12.1 million Euro payments to Estonia

The European Commission has given the go-ahead to the Estonian authorities to take over the management of €12.1 million in aid to help farmers adjust to the challenges of EU membership. Estonia will now be able to begin the implementation of this so-called "SAPARD" programme. This decisions covers measures to boost investment in agricultural holdings, to improve the processing and marketing of agricultural and fisheries products, to development and diversify agricultural activities and the improvement of rural infrastructure. Under the scheme, Estonia will be entitled to €12.137 million annually. Payment of the first advance can now be made. Estonia is the second candidate country to begin implementing the SAPARD aid programme. [Background paper IP/01/861]