The Week in Europe 19-25/11/01

29.11.2001 | Euroskop

EU news in brief

Internal Market Scoreboard reveals some progress on implementation but many infringements

For the first time the average percentage of Internal Market Directives not yet implemented in national law (i.e. the implementation deficit) has shrunk to 2.0% in the EU, according to the latest Internal Market Scoreboard. Five Member States (Finland, Denmark, Sweden, the Netherlands and Spain) already meet the European Council's target of an implementation deficit of less than 1.5%. Finland has the best performance of all Member States, whereas France and Greece are together in last position. This positive trend is marred by a large number of Internal Market infringement proceedings, about 1500. France, Italy and Germany are together responsible for nearly 40% of all these infringement cases, while Ireland, Belgium and Greece account for a disproportionate number of infringements in relation to their size. The Scoreboard also features the results of a Europe-wide survey of 4000 companies about the quality of the regulatory environment. The survey shows that most companies find national and Community rules overly complicated and burdensome. It is estimated that at least €50 billion could be saved with better quality regulation. As for implementation of the Internal Market Strategy, 37% of target actions due by the end of 2001 to improve the functioning of the Internal Market are not expected to be achieved on time, according to the Scoreboard.

For more information on the Business Survey, see MEMO/01/376.

The full text of the latest Internal Market Scoreboard is available on the Europa internet site:

http://www.europa.eu.int/comm/internal_market (look under Single Market Scoreboard).

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Transport White Paper: The Commission will organise an all-day debate on 27 November 2001

The Commission's White Paper "European Transport Policy for 2010" adopted on 12 September, which takes stock of the existing situation and proposes strategies for maintaining a competitive and sustainable transport system, launched a wide-ranging debate in Europe. As part of this debate, the Directorate-General for Energy and Transport is organising a high-level meeting with key stakeholders from the transport industry in Brussels on 27 November 2001 under the auspices of Loyola de Palacio, European Vice-President in charge of Transport and Energy, and Isabelle Durant, Deputy Prime Minister of Belgium and President-in-Office of the Transport Council. The event will consist of a debate on the main political, legislative and industrial decisions to be taken in the years ahead and will be organised around 4 round tables focusing on the key issues affecting European Transport Policy through to 2010.

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EU-Iran: Commission proposes mandate for negotiating Trade and Co-operation Agreement

The Commission approved a proposal for negotiating directives for a Trade and Co-operation Agreement with the Islamic Republic of Iran. Given the relationship between the European Community and Iran a contractual basis will contribute to improvements in trade, business and investment conditions and to the country's efforts in economic liberalisation and deregulation. The Agreement will also strengthen co-operation with Iran in key areas of mutual interest such as drugs, refugees, energy and the environment, and will facilitate regional co-operation.

Website : http://europa.eu.int/comm/external_relations/iran/intro/index.htm

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A new information service for the audiovisual media

The Education and Culture Directorate General launched TVlink, a free Internet service for audiovisual media. On TVlink you can find information on community policies for education, vocational training, culture, audiovisual, sport, and activities focused on the promotion of the dialogue with the civil society. TVlink presents video coverage and topical images free of charge and copyright, accompanied by a short description in English and French. There will be also a Calendar of major events in fields covered by DG Education and Culture. TVlink address is www.tvlink.org/educationandculture

Autumn 2001: Economic Forecasts 2001-2003

Economic growth in the EU has been decelerating in 2001, but will rebound in 2002. The euro area economy is likely to face a very weak year end and to grow at only 1.6% this year on average. Next year's growth performance is not expected to be better on average, notwithstanding a gradual recovery in 2002 which will gain steam throughout 2003. After the 1999-2000 oil price hike, a sudden increase in food prices in the first half of 2001 gave a boost to inflation that eroded the purchasing power of households and private consumption. Exports faced an abrupt deceleration in global trade growth, mainly stemming from the marked US slowdown. At the same time, investment was hit by a squeeze in profit margins, weak demand, and the bursting of the bubble in the information and communication technology sector. On top of the unfolding slowdown, the 11 September terrorist attack worsened the outlook as it created a feeling of insecurity and uncertainty. Weak growth will lead to the first increase in unemployment since 1997, but strong growth in 2003 will bring it down again to below its 2001 rate. Inflation is forecast to be back below 2% as from the first quarter of 2002 on. Fiscal consolidation in the euro area as a whole will temporarily stall, as the cyclical adjusted deficit remains unchanged for the euro-area as a whole in 2001 and is forecast to improve marginally in 2002.

More detailed information on the forecasts is available in Supplement A of European Economy, published on the internet at:

http://europa.eu.int/comm/economy_finance/publications/european_economy/forecasts_en.htm

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Economic forecasts for the Candidate Countries (2001-2003) Autumn 2001

The international economic environment has considerably deteriorated since the finalisation of the Commission's Spring 2001 forecast(1). GDP growth in the candidate countries has been revised downwards noticeably in 2001 and 2002, albeit less than for the Member States. In 2003, when external conditions become more favourable again, a return to higher growth is expected. Due to more favourable external factors, inflation should decline from the higher levels experienced in 2000. Unemployment is increasing again in 2001 and is not expected to decline over the forecasting period, as a result of the continued need for enterprise restructuring and the weaker economic growth. Aggregate external deficits are expected to remain approximately at their current level. General government deficits are widening as the combined result of lower growth, counter-cyclical fiscal policies in some countries, and high transition-related expenditures.

For full text of forecasts see http://europa.eu.int/comm/economy_finance/publications/supplement_c_en.htm

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The White Paper on Youth proposes a method and priorities for getting young people more involved in decisions that concern them

Acting on a proposal from Viviane Reding, the Member of the European Commission responsible for education and culture, the European Commission adopted a White Paper on Youth Policy. Based on extensive consultation of tens of thousands of young Europeans, and in concert with the Member States, youth organisations and experts in the field, the White Paper seeks to bridge the gap between young people and active citizenship. For full text of the White Paper see http://europa.eu.int/comm/education/youth.html

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Commission launches Laeken Council website

The European Commission launched a special website dedicated to the Laeken European Council, which will be held on 14-15 December. The site provides a simple guide to the issues being discussed, bringing together fact sheets, speeches and easy links to other information related to the summit.

The address is:

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

Eurostat news releases

September 2001 - Industrial production down by 0.5% in euro-zone; EU15 down by 0.6%

Seasonally adjusted industrial production decreased by 0.5% in the euro-zone in September 2001 compared to August 2001, Eurostat estimates. This follows an increase of 1.5% in August and a fall of 1.7% in July. Output in the EU15 decreased by 0.6% in September, after an increase of 1.3% in August and a drop of 1.5% in July. In September 2001 compared to September 2000, industrial production dropped by 0.6% in the euro-zone and by 1.2% in the EU15.

[Background text STAT/01/121]

Enlargement news

Environment ministers from Candidate Countries discuss enlargement and environment policy with Commission and Presidency

Environment ministers of the thirteen candidate countries will meet with Environment Commissioner Margot Wallström and Ms Magda Aelvoet, President of the Environment Council, to discuss environmental aspects of enlargement on 27 November 2001 in Brussels. The meeting will address six issues: Benefits for candidate countries of complying with EU environmental legislation, measuring sustainable development, preparations for the World Summit in Johannesburg on Sustainable Development, trading of greenhouse gas emissions and EU water legislation. During the meeting, prizes will also be awarded to cities in the candidate countries that have successfully adapted their rules and practices to match EU environmental laws.

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15 Central and Eastern European cities to receive awards for environmental progress

15 Central and Eastern European cities will receive the "City Towards European Union Compliance Award" for their outstanding environmental progress in implementation, integration, information and environmental education. The awarding ceremony will take place during the Seventh Informal Ministerial Meeting with the EU Environment Commissioner Margot Wallström and the candidate countries on 27 November. The Commissioner said: "Local level involvement is very important in the accession process. Most of the environmental legislation has to be implemented at local level, which is also where the heaviest investments are required."

[Background text with contacts to all awarded cities IP/01/1647]

More than 20,000 students to benefit from Erasmus this year

Students from the candidate countries are well represented among the beneficiaries of the Erasmus programme around Europe in 2001/02. Nearly 6,500 students from Poland will attend universities in EU countries, and 4,000 from Romania. The Czech Republic and Hungary will each send over 3,000 students, and more than 600 from most of the other candidates will also take part in periods of study or teaching in another European country. To guarantee the recognition of Erasmus studies abroad, over 1,000 higher education institutions have adopted the European Credit Transfer System - a common scale quantifying workload for students.

IMF welcomes Turkish progress

The International Monetary Fund has welcomed the assessment of its recent mission in Ankara that Turkey's implementation of the IMF economic program has been very strong. It noted that in the aftermath of 11 September a financing gap of approximately $10 billion for the remainder of 2001 and 2002 has arisen, and Turkey is accordingly committed to strengthen its efforts in fiscal policy, banking and structural reform, and to seek continued support from the private sector. Horst Köhler, IMF Director, said that on the basis of "a very constructive discussion", he intends to recommend completion a new stand-by arrangement, to be negotiated over the next month, to support the authorities' reforms and close the financing gap. "This is an appropriate response by the Fund," said Köhler.

Estonia requests understanding for its energy sector

Estonia wants the European Union to give special treatment to oil shale, which it produces in its north-eastern Ida-Virumaa region - and this will mean additional funds for development, according to Estonia's Foreign Minister Toomas Hendrik Ilves. It wants the EU to recognise all the agreements that make sure that the larger part of electricity in Estonia will come from oil shale-fuelled power plants till 2015. Oil shale currently accounts for 93 percent of the electric power generated in Estonia. If the local power market opened to imported electricity immediately upon the country's entry into the EU, in line with EU competition policy, this would cause a steep drop in oil shale-fuelled power generation, leading to rapid closing of mines and a sharp increase in unemployment in the region.

New study on the chemical industry in the candidate countries

In Central Europe, the chemical sector has turned from a priority sector during communism into a problematic, declining sector during transition, troubled by the loss of former Soviet-bloc markets and strong import competition, according to a new study from the Vienna Institute for International Economic Studies - WIIW ("Development and Prospects of the Chemicals, Chemical Products and Man-made Fibres Sector in the CEECs"). In size, the chemical sector is still important, contributing between 6% and 8% of manufacturing output; it holds an even more prominent position in Slovenia and Bulgaria (10%). As an employer, the chemical sector plays a smaller role than in production due to its capital-intensive nature and today accounts for 4% to 6% of manufacturing employment only. As is typical of all CEECs and all sectors of manufacturing, wages, productivity and unit labour costs in the chemical sector have generally been much lower than in West European countries, the study says. The future prospects of the sector are mixed, it concludes: while export competitiveness on EU markets decreased, better growth potentials exist on the domestic and CEEC markets, which are however increasingly challenged by strong import competition from EU companies. For the future, ongoing restructuring, modernisation and ecological upgrading have to be pursued in order to meet international demand and to comply with EU regulations.