The Week in Europe 25/02-03/03/02

06.03.2002 | Euroskop

EU news in brief

Car price differentials in the European Union remain high, especially in the mass market segments

In its latest report on car prices, the European Commission has found that price differentials for new cars in the Internal Market are still substantial, despite the introduction of the euro. The situation on 1 November 2001 shows that price convergence has not taken place. Spain, Greece, Finland and Denmark, a non-member of the euro zone, are the markets where pre-tax list prices for cars are generally the lowest. Prices in Germany, the biggest market, and Austria, are the highest. It is also apparent that prices in the United Kingdom are still much higher than in the euro zone. Competition Commissioner Mario Monti declared: "Our monitoring of price differentials confirms that there is significant room for improving market conditions in the motor vehicle sector. The reform proposals presented by the Commission on 5 February 2002 (see IP/02/196 and MEMO/02/18 of 5.2.2002) should put the Internal Market into top gear, clearing the road for consumers to benefit from greater competition and increased choice, while reinforcing quality and safety in vehicle repair."

[Background paper IP/02/305]

Financial Services Action Plan: Mid-Term Review emphasises need for swift progress

The importance of integrated capital markets for economic growth, job creation, financial stability, lower prices and for enabling consumers to reap the full benefits of the euro was underlined in Brussels at the Mid-Term Review of the Financial Services Action Plan (FSAP), adopted in May 1999 (see IP/99/327). Participants included representatives of the Member States, Members of the European Parliament, and leading players from the financial services sector. They stressed the need for further rapid progress if the Action Plan is to be completed on target in 2005 and if the EU is to reach the goal set by the Lisbon European Council of becoming the most competitive economy in the world by 2010. Full details of participants and the programme are available on the Europa website:

http://www.europa.eu.int/comm/internal_market/en/finances/actionplan/index.htm

[Background paper MEMO/02/36]

Salt Lake City Winter Olympics: success for Europe and a step closer to zero tolerance on doping

As the Salt Lake City Winter Olympics come to an end, Viviane Reding, European Commissioner in charge of sport, declares the Games a success in terms of both their organisation and their contribution to tackling the issue of doping.

"I am very impressed by the determination and resolve to keep sport clean that we have seen from the International Olympic Committee and the sports federations during the Salt Lake City Winter Olympics. I am pleased that the idea of zero tolerance on doping, as advocated by the European Union, is becoming accepted", said Viviane Reding, adding: "This augurs well for the European Commission's conference in Brussels on 20 March, which will be attended by the sports ministers of the fifteen Member States, the European sports federations and the President of the International Olympic Committee, Jacques Rogge."

[Background paper IP/02/309]

Commission and OLAF act on allegations of wrong-doing

The press in several Member States has made reference in recent months to a statement by Commission official Paul van Buitenen setting out a variety of allegations of possible professional wrongdoing. His statement was delivered to the EU's Anti-Fraud Office (OLAF) and the Commission's Directorate General for Administration (DG ADMIN) on 31 August 2001. At this stage, the Commission cannot disclose the precise allegations contained in the statement as this could affect the rights of the individuals mentioned in it; they must first be verified. Many of the matters raised by Mr van Buitenen have already been investigated or are currently under investigation; possible new evidence may of course give rise to further enquiries. That is why OLAF and DG ADMIN each independently undertook an analysis of the statement's contents to determine whether it contained any new facts meriting formal investigation. OLAF has now submitted a summary of its conclusions to the Commission and Vice-President Neil Kinnock has reported to the European Parliament on the issue. A meeting will shortly take place between DG Administration and OLAF to discuss the issues in more depth, to ensure the appropriate follow-up.

[Background paper IP/02/315]

Margot Wallström: "A wake-up call for global sustainability"

In a speech on 26 February to the European Policy Centres Dialogue on sustainabilty and globalisation, European Environment Commissioner Margot Wallström outlines her views on the outcomes that the Johannesburg World Summit next August should include. She calls on all participating countries to sign up to concrete action at the Summit. The Commissioner says: "We do not need new statements of principles. We do need a concrete Action Plan with deliverables upon which we can be held to account". She continues: "We must inject a sense of urgency into our preparations for Johannesburg. We must shake off any sense of complacency surrounding the subject of global sustainability. We face enourmous challenges ... but we cannot allow the enormity of the task to paralyse us into inaction."

[Full speech SPECH/02/84]

Commission proposes creation of a Euro-Mediterranean Bank as an EIB subsidiary

The Commission has adopted a Report to the Council proposing the creation of a Euro-Mediterranean Bank (EMB) as an EIB subsidiary. The Report responds to the request of the Laeken European Council last December. The Commission's proposal is consistent with the principles of ownership and partnership with the Mediterranean partner countries at the heart of the Euro-Mediterranean policy - while at the same time ensuring a realistic and operational approach that can deliver results in terms of increased investment and growth as soon as possible. Beyond support to investment in infrastructure the EMB should play an important role in supporting the private sector development in the region and actively enhance the partnership with Mediterranean Countries.

[Background paper IP/02/321]

Relaunching the Danube pan-European corridor: a bridge which unites Europeans.

Loyola de Palacio, Vice-President with special responsibility for transport and energy, signed on behalf of the European Commission the Memorandum of Understanding on the Danube pan-European corridor in the presence of high-level representatives of the other countries concerned: Austria, Bulgaria, Croatia, Germany, Hungary, Moldova, Romania, Slovakia, Ukraine and Yugoslavia. "In the run-up to enlargement, the development of pan-European transport infrastructures is one of the EU's priorities," she said. "In this connection, the Danube is a major artery, a veritable backbone which links no less than ten States on the European Continent." The Memorandums of Understanding on the corridors enable the various States concerned to consult one another and cooperate with a view to the harmonious development of transport arteries of European interest for the benefit of all the States. For further information please consult the following site:

http://europa.eu.int/comm/energy_transport/en/lb_en.html

[Background paper IP/02/336]

European Electricity Regulatory Forum: a significant step forward in completing the internal electricity market

Substantial progress was made at the eighth meeting of the European Electricity Regulatory Forum (the "Florence Forum"), held on 21-22 February 2002. Agreement was reached on the entry into force of a provisional cross-border tarification system on 1 March 2002, to be operated until 1 January 2003. This system will be replaced on 1 January 2003 by a new, more cost reflective system, the basic principles and operational guidelines of which were discussed and agreed at the Forum.

[Background paper MEMO/02/37]

Financial Services Policy Group considers political obstacles to Action Plan and takeover bids

The Financial Services Policy Group, comprising personal representatives of EU Finance Ministers, met on 26 February in Brussels under the chairmanship of Internal Market Commissioner Frits Bolkestein and Director General John Mogg. The Group concentrated on removing political obstacles to the adoption of the proposed Directives on prospectuses, pension funds and financial conglomerates. Jaap Winter, Chairman of the High Level Group of Company Law Experts, presented the main conclusions of the group's report on takeover bids. The Spanish Council Presidency reported on its intentions for the remainder of its term.

[Background paper MEMO/02/39]

Copyright: Commission holds workshop on Digital Rights Management to promote protection and distribution of digital content on the Internet

The promotion of open, flexible and interoperable Digital Rights Management Systems (DRMS) is the subject of a workshop organised by the European Commission in Brussels on 28 February. Representatives of the content, information technology, and consumer electronics industries, as well as several user and consumer associations, participated to set out their views on how to make DRMS acceptable to all market players and how to bring about co-operation between them. Erkki Liikanen, the Information Society Commissioner, and Frits Bolkestein, the Internal Market Commissioner, both spoke at the event. A Commission Staff Working Paper on "Digital Rights: Background, Systems, Assessment" prepared for distribution at the workshop, is available on the Europa website:

http://europa.eu.int/information_society/newsroom/index_en.htm

[Background paper IP/02/320]

The Commission decides on the annual policy strategy for 2003

The European Commission has adopted a decision on the Annual Policy Strategy (APS) for 2003. The strategy sets out political priorities and orientations on resource allocations for 2003 and provides the framework for the preparation of the preliminary draft budget and planning of the work for different Directorates-General.

The President of the Commission Romano Prodi said: "The 2004 enlargement will be unprecedented in the history of the European Union. Our overriding priority in 2003 will be to prepare effectively for the successful enlargement of the European Union. Furthermore, the enlarged European Union must be an area of stability and security and strive for a sustainable and inclusive economy. Making progress in these areas is key to us in 2003."

[Background paper IP/02/338]

Commission has adopted the preliminary draft amending budget 2/2002

The European Commission adopted the preliminary draft amending budget (PDAB) No 2/2002 in order to budget 10 billion euro of the surplus from the financial year 2001. Budget Commissioner Michaele Schreyer explained that "the surplus could have important implications for the national budgets of the Member States and that it is therefore important to budget this amount as rapidly as possible". The PDAB also takes account of the ratification by all Member States of the new Own Resources Decision (2000/597/EC, Euratom). Part of the surplus budgeted in the PDAB 2/2002 will therefore be used to reimburse Member States for the retroactive effects of the new Own Resources Decision on the payment of traditional own resources in 2001.

[Background paper IP/02/337]

Saying goodbye to the national currencies

On Thursday 28 February we said officially goodbye to the last national currencies in the euro-zone. Today is the end of the dual circulation period. As of the 1st of March the euro will be the only legal tender currency in the 12 euro-zone member states. According to the latest survey over 80% of the euro-zone citizens judge the euro changeover successful and almost 70% declare themselves happy that the euro has become their new currency. The vast majority are looking forward with enthusiasm to the advantages that the euro will bring to their daily lives, like the ability to compare easily prices between countries, increased growth prospects, stability of prices. Despite the wide enthusiasm a minority of citizens continue however to have some practical problems to familiarise themselves with the new coins and notes and that is why the Commission continues during the first semester of 2002 to co-finance information campaigns targeting particularly the most vulnerable population groups across the euro-zone countries. The report is available on http://europa.eu.int/comm/public_opinion

[Background paper IP/02/344]

Commission welcomes European Parliament's endorsement of '.eu' Internet domain name

The European Commission welcomes the adoption by the European Parliament, in its second reading, of its Recommendation on the draft Regulation to implement the '.eu' Internet top-level domain, allowing European citizens, organisations and businesses to have '.eu' web-site and e-mail addresses. "The .eu domain will increase choice for European businesses and citizens, accelerate the uptake of Internet use and reinforce e-commerce across the European Internal Market," said European Commissioner Erkki Liikanen. "It will allow, for example, a company with branches in several or all EU countries to reflect their Europe-wide presence on the Internet. As such it is a tangible manifestation of the European Union in cyberspace." This vote clears the way for a final adoption by the EU's Council of Ministers. For details see http://europa.eu.int/information_society/topics/telecoms/internet/eu_domain/index_en.htm

[Background paper IP/02/340]

Scientists propose field trials for evaluating new rapid BSE tests

The Scientific Steering Committee (SSC), advising the European Commission inter alia on BSE related issues, has published an opinion outlining a set-up for field trials for new rapid BSE tests. The objective of the field trails is to compare the new rapid BSE tests under field conditions (e.g. in different laboratories in different countries etc.) against currently used and authorised tests. They will be therefore tried out on a selected number of samples analysed as part of the current systematic routine testing at slaughter and on a selected number of known positive samples. The number of analyses to be carried out is based on statistical and practical considerations (e.g. limited number of available BSE positive specimens). The Institute for Reference Materials and Methods will subsequently analyse all data resulting from the trial.

The Convention and the debate on the future of the European Union on the Internet

With the opening of the Convention, Internet access to all the information concerning the debate on the future of Europe now includes two new sites which are on line as of Thursday, 28 February.

Firstly, we have the Conventions website itself, with all the official Convention documents:

http://european-convention.eu.int

Secondly, there is the Forum website, which will be the repository for all contributions from European and national organisations to the work of the Convention:

http://europa.eu.int/futurum/forum_convention/index_en.htm

These two sites are in addition to the existing arrangements, which comprise:

the general debate portal: the Futurum site on the Europa server, which provides access to all public and non-governmental initiatives:

http://europa.eu.int/futurum

the European Parliaments dedicated site on the future of the EU:

http://www.europarl.eu.int/europe2004/

Eurostat news releases

Euro-zone annual inflation up to 2.7%

Euro-zone annual inflation rose from a revised 2.0% in December 2001 to 2.7% in January 2002, Eurostat reports . A year earlier the rate was 2.3%. The month-on-month change in the HICP from December 2001 to January 2002 was 0.5%. The euro changeover effect on the month-on-month increase in the euro-zone HICP between December 2001 and January 2002 is likely to fall, according to initial Eurostat estimates, within the range 0.0% to 0.16%. Non-euro factors, in particular bad weather resulting in very large increases in vegetable prices and some significant tax increases on tobacco - can, according to initial analyses, explain as much as 0.34% of the difference.

[Background paper STAT/02/23]

Enlargement news

First ministerial exchanges on agriculture plans

The first focused ministerial exchanges on the European Commission's thinking on managing the agriculture dimension of enlargement. European Union ministers discussed the Commission proposals at the Agriculture Council on February 19, after candidate countries agriculture ministers discussed them at a special session of the European Parliament's agriculture committee on February 18.

In the Agriculture Council, European Agriculture Commissioner Franz Fischler made a full presentation of the plans agreed by the Commission on January 30, stressing again the balance in the proposals between the interests of the current EU15 and the need to stimulate and support sustainable agricultural reform in the candidate countries.

Poland's deputy prime minister and farm minister, Jaroslaw Kalinowski, suggested the EU was aiming to reunite Europe "on the cheap". Hungary's state secretary for agriculture, Tamas Eder, said the plans discriminated against the new member states - putting Hungarian cereal farmers at a competitive disadvantage of €46 per tonne compared to their counterparts in the current member states. Hungary's demand remains that the Common Agricultural Policy as a whole should be extended to it from the first day of accession, including the direct support schemes. "We regret that the proposal of the European Commission is far from our negotiating position and legitimate expectations," he said.

The Czech minister, Jan Fencl, said the financial means suggested for the new member countries were "insufficient", and the arguments of the European Commission were "mostly not relevant" in the case of Czech agriculture. Bulgaria's minister, Mehmed Dikme, noted with regret that his country is almost entirely excluded from the Commission's plans: "This does not correspond to our understanding of the idea of the European project and of the principle of equality with regard to all negotiating countries for EU membership," he said.

"The present proposal from the European Commission does not ensure equal and fair competition conditions and development possibilities to Latvia's agriculture," said Latvia's minister, Atis Slakteris. Some proposals "have caused concern in Lithuania - first of all, the proposals related to the regime for direct payments," said its minister, Jeronimas Kraujelis. And the production capacities under the reference periods proposed by the Commission "do not reflect in some cases the existing situation in production and development trends".

Many MEPs on the agriculture committee were sympathetic to the accession countries' concerns. Willi Görlach, the committee's rapporteur on enlargement and support for the accession countries, questioned the readiness of EU finance ministers to foot the bill for enlargement. But the committee urged candidates to focus their accession demands on support for rural development and structural reform rather than on direct payments. Agriculture committee chair Joseph Daul underlined the need to find a workable compromise in the final accession negotiations, without alienating voters in accession referendums in the candidate countries. CAP reform must not be allowed to hold up enlargement, and enlargement must not be allowed to hold up CAP reform, said Mr Görlach.

Commission predicts a long haul to equality among the EU25

The EU General Affairs Council on February 18 heard a presentation by European Regional Affairs Commissioner Michel Barnier of a new report on economic and social cohesion, which includes, for the first time, a study of disparities in an enlarged EU of 25 member states, and a review of options for EU cohesion policy after 2006. One of the report's conclusions is that it is necessary to measure in terms of decades rather than years the time it will take for some of the current candidate countries to catch up fully with the general level of prosperity of the current EU. In the case of candidates such as Bulgaria and Romania the process could take more than 30 years, it predicts. The Commission's update was broadly welcomed as a useful contribution to the debate on future cohesion policy, and the Council passed the subject on to senior officials for further study, for the Council to return to it at a future date.

Steel deal agreed for Poland, Slovakia and the Czech Republic

The double-checking system used by the EU to control steel imports from abroad should be extended to include Poland, Slovakia and the Czech Republic, the EU General Affairs Council of February 18 agreed - although the regulations to put the system into effect were agreed only by qualified majority, because Germany voted against them. The system requires exports of certain steel products to be notified by manufacturers to specified authorities, with full details of the destination and the nature of the goods.