The Week in Europe 30/09-06/10/02

09.10.2002 | Euroskop

EU news in brief

Motor car sales: Publication of an explanatory brochure on the new competition rules

The European Commission's Competition DG is publishing an explanatory brochure on the new competition rules on motor car sales and servicing which enter into force on 1 October 2002. This brochure is designed to provide the general public with information on their rights and obligations under the new, stricter arrangements, which should result in greater competition in car sales and repairs from which consumers will benefit. The brochure is laid out in a way which reflects the concerns of consumers and economic operators and it enables users to gain a better understanding of the new regulation. It is intended for consumer groups but also for the general public, who have a direct, legitimate interest in the reform given that cars and car maintenance are an important item in the family budget.

[Background paper IP/02/1392]

Public procurement: Council agreement is a step towards making utilities procurement more transparent

The European Commission has welcomed the Council's adoption of a political agreement on the proposed Directive to simplify and modernise existing legislation on public procurement in the water, energy and transport sectors (the so-called "Utilities Directive"). The proposed Utilities Directive is part of a legislative package to bring EU public procurement rules up to date (see IP/00/461) with a changing economic environment. Once definitively adopted, the new rules will improve transparency in the award process, enhance clarity in the criteria determining the award of the contract and the selection of tenderers and facilitate electronic tendering. The Council already came to a political agreement last May on the other part of the legislative package, covering rules for the procurement of works, supplies and services in sectors other than water, energy and transport (see MEMO/02/99). The Council is due to adopt formal Common Positions on both proposals in the coming weeks, after which the proposals will return to the Parliament for their second reading.

[Background paper IP/02/1391]

Housing loans: more than 3 600 institutions have signed up to the European Code of Conduct, promising to keep customers better informed

More than 3 600 mortgage lending institutions had already agreed to comply with the Voluntary Code of Conduct on housing loans when it came into effect on 30 September 2002. The purpose of the Code, drawn up by the European Union in March 2001 (see IP/01/1755), is to guarantee that consumers receive transparent and comparable information on housing loans in order to encourage cross-border competition. The Commission is satisfied with the overall result despite gaps in the Code's geographical coverage

[Background paper IP/02/1397]

Commission publishes indicative figures on the distribution of direct farm aid

The Commission has transmitted indicative figures on the distribution of direct farm payments by size-class of aid received for the Financial Year 2000 to the Budgetary Control Committee, the Budget Committee and the Agriculture Committee of the European Parliament. The figures have been derived from the EAGGF (European Agricultural Guarantee and Guidance Fund) payment data received from the Member States. For obvious reasons, direct payments in the year 2000 reflect a situation predating the Agenda 2000 reforms or the proposals of the Mid Term Review. While in general data quality is adequate for use in the clearance of accounts activity, care must currently be exercised over use of the data for other, analytical purposes. Not all Member States currently employ a "system for unique identifiers" for all beneficiaries. Therefore, at present, the totals by beneficiary may be inaccurate, which is leading to "indicative" and not totally precise figures. As a precaution each Member State has been asked to confirm that the orders of magnitude of the statistics for their country appear broadly correct.

[Background paper MEMO/02/198]

Commission welcomes Council's green light for EU research programmes

The Council of EU Ministers approved the five Specific Programmes implementing the €17,5 billion 6th EU Research Framework Programme (FP6 2003-2006). "I welcome this key vote", said EU Research Commissioner Philippe Busquin. "All is now set for a rapid start to the Research Programmes with the first calls for proposals published before the end of this year. The rapid conclusion of the decision-making process on ambitious EU research programmes provides an additional strong basis for creating a true European Research Area." For further information please see :

http://europa.eu.int/comm/research/fp6/index_en.html

http://europa.eu.int/comm/research/fp6/documents_en.html

[Background paper IP/02/1398]

Commission proposes to sign Council of Europe Convention to promote children's right to maintain contact with both parents

The European Commission adopted a proposal that the Community signs the Council of Europe convention on contact concerning children. This convention aims at reinforcing the fundamental right of children and their parents and other persons having family ties with the child to maintain contact on a regular basis. It also seeks to improve the international co-operation in cases of transfrontier access. The Convention will complement and reinforce existing and future Community instruments in this field.

[Background paper IP/02/1413]

Research : Commission satellite project detects urban air pollution from space

Fine particulate matter is now one of the biggest threats to human health from air pollution. A new technique to monitor the concentration of particulate matter in urban air, using satellite-borne sensors, offers a much more cost-effective approach than traditional land-based monitoring. The first trials of this system, developed by 11 partners in the European Commission-funded ICAROS-NET (Integrated Computational Assessment of urban air quality via Remote Observation Systems NETwork) project, will be presented in Athens on 15 October 2002. ICAROS-NET runs for three years from September 2001. The satellite-borne sensors will monitor atmospheric pollution at very high resolution in areas as small as 30 metres in diameter, by measuring the proportion of light blocked by particulate matter. Preliminary mapping shows that over the 1987-2002 period Aerosol Optical Thickness (AOT), a measure of the optical effect of particulates in the atmosphere, steadily grew in Athens. Results will help improve environmental policy making in Europe and the effectiveness of international environmental treaties. For further information please see:

http://mara.jrc.it/icaros.html

http://mara.jrc.it/icaros-net/index.html

GMES: http://europa.eu.int/comm/space/gmes_en.html

[Background paper IP/02/1421]

The Commission approves 279 projects selected under the EU vocational training programme Leonardo da Vinci for 2002

A total of 279 projects (compared with 255 in 2001 and 235 in 2000) from 30 participating countries (the 15 Member States, the 3 EFTA countries and 12 candidate countries) have been selected this year under the Leonardo da Vinci programme to receive an EU grant for co-financing their activities. The programme promotes transnational projects involving co-operation in vocational training aimed at fostering innovation and improving the quality of training. A total of €89.7 million has been awarded to co-finance the selected projects (compared with €82.3m in 2001 and €80.9m in 2000).

[Background paper IP/02/1422]

Research: the Commission presents its initiatives for the construction industry

With 10% of the Gross National Product (GNP), the construction industry is one of the main generators of employment in Europe. On the initiative of ECCREDI (European Council for Construction Research Development and Innovation) with the support of the European Commission, just under 200 researchers, engineers, European construction industry professionals and representatives of the public authorities met from 2 to 4 October 2002 in Brussels to discuss the role of Community research in this sector. The Commission is at present funding 223 research projects in this area, but it wants to see a considerable increase in construction-related projects under the Sixth Framework Programme for Research and Development (2003-2006). However, European funding is not sufficient. The Commission therefore appealed for additional research outlay - a message aimed above all at businesses. Further information is available on the following websites:

http://europa.eu.int/comm/research/growth/index.html;

E-CORE: http://www.e-core.org;

ECCREDI:http://www.eccredi.org/

[Background paper IP/02/1427]

Eurostat news releases

Flash estimate - September 2002 - Euro-zone inflation estimated at 2.2%

Euro-zone annual inflation is expected to be 2.2 % in September 2002, up from 2.1% in August 2002. The euro-zone inflation is measured by the Monetary Union Index of Consumer Prices (MUICP). To compute the MUICP flash estimates, Eurostat uses early price information relating to the reference month from Member States for which data are available as well as early information about energy prices. Further information can be found in Eurostat news release 113/2001, 5 November 2001.

[Background paper STAT/02/117]

Second notification of deficit and debt data for 2001 - Euro-zone government deficit at 1.4% of GDP and public debt at 69.2% of GDP

For the second time in 2002, the EU Member States have notified to the European Commission their data on government deficit and debt for 2001. They have been verified by Eurostat and are consistent with the Eurostat decisions on treatment of UMTS licences and securitisation operations undertaken by general government. This press release also includes data on government expenditure and revenue.

[Background paper STAT/02/116]

Euro-zone unemployment stable at 8.3% - EU15 steady at 7.7%

Euro-zone seasonally-adjusted unemployment stood at 8.3% in August 2002, unchanged compared to July. It was 8.0% in August 2001. The EU15 unemployment rate was 7.7% in August, unchanged compared to July3. It was 7.3% in August 2001.

In August 2002, lowest rates were registered in Luxembourg (2.5%), the Netherlands (2.8% in July), Austria (4.2%), Denmark (4.3%), Ireland (4.5%) and Portugal (4.6%). Spain's 11.3% remained the EU's highest rate.

[Background paper STAT/02/119]

Enlargement news

Verheugen sets out remaining challenges

European Enlargement Commissioner Günter Verheugen set out some of the remaining challenges to the enlargement exercise when he spoke to the French parliament on 25 September.

The Commission's regular reports on October 9 - that will propose the candidates considered ready to accede in 2004 - will present an in-depth analysis. They are intended to allow a political decision, but they will be drafted without any political preconceptions, he insisted, and will expose deficiencies where they exist. The Brussels summit of October 24-25 will then decide with which candidates the EU wishes to conclude negotiations. He said the chances of the countries - "which could number ten" - are "realistic".

And October should see EU agreement on the financial arrangements: direct aids for farmers, the share-out of resources in general, and a system of budgetary compensation so that new member states are not in a worse financial situation after enlargement.

With member states heavily involved in talks over the cost of enlargement at present, the Commissioner added his own thoughts on what is at stake in this discussion. "The price to pay for achieving stability is not so high if it is compared with the heavy cost that would have to be met to overcome instability in this region", he said. "And economically, the process opens up wide prospects of growth and prosperity that we can grasp to confirm our position in the face of international competition", he added.

November and December will then allow for conclusion of negotiations, the Commissioner predicted, even with a tight calendar.

The second Irish referendum on the Nice Treaty, on October 19, remains "an uncertainty", and "a second 'no' would seriously compromise the enlargement timetable". The Nice Treaty is indispensable - both for its institutional changes to allow an enlarged EU to function, and for the deepening it will generate so that it is politically viable after enlargement.

And even successful closure of the negotiations "will be only a first step on the road to enlargement", Verheugen went on. Ratification will still be necessary, by the European Parliament, and by national parliaments.

Despite all the challenges and still-unresolved questions, "There is no alternative", the Commissioner insisted. The EU, its economy and its companies have been following this path for a long time, and a failure to enlarge would have "disastrous" economic and political consequences. "Going backwards is just not an option".

Presidency outlines Brussels summit plans

For the October 24-25 European Council in Brussels, the EU Presidency draft agenda currently envisages discussion of enlargement and of Kaliningrad. On enlargement, decisions are expected about which candidate countries negotiations can be concluded with by the Copenhagen European Council on 12-13 December, as well as about decisions to be taken at Copenhagen on updated pre-accession strategies and roadmaps for Bulgaria and Romania and on the next stage of Turkey's candidature; budgetary and financial issues, monitoring, and institutional arrangements will also be on the agenda.

"In the light of the Commission's regular reports and strategy paper [due to be published on 9th October] and based on a recommendation from the Commission, the European Council is expected to decide on the candidate countries which fulfil the Copenhagen criteria and with which the negotiations can be concluded by the Copenhagen European Council on 12-13 December, so that the Accession Treaty can be finalised and signed by Spring 2003; to have an exchange of views on the situation of the other candidate countries and on that basis mandate the General Affairs and External Relations Council to prepare the decisions to be taken at the Copenhagen European Council on an updated pre-accession strategy and roadmap for Bulgaria and Romania and the elements of the next stage of Turkey's candidature", says the Presidency.

And on budgetary and financial issues for 2004-2006, it says: "On the basis of the financial framework agreed at the Berlin European Council, the European Council is expected to decide on the open financial and budgetary issues in order to be able to present the relevant Common Positions to the candidate countries in early November". On agriculture, it will decide the overall allocation, including the question of granting direct payments to new member states, including any transitional measures, and possible guidelines for solving other major outstanding issues. On Structural Funds and the Cohesion Fund, it will decide on overall allocations, including allocations for each candidate country. On internal policies, it will decide the overall allocation, including the financial package for the decommissioning of nuclear power plants at Ignalina in Lithuania and Bohunice in Slovakia, and the institution building facility.

It will also make a "decision in principle" on a possible programme for the Northern part of Cyprus, says the Presidency, and will deal with "possible transitional budgetary compensation measures for the candidate countries, as well as the form they should take and the criteria on which they should be based."

The European Council is expected to agree on "the framework for continued effective monitoring of progress achieved by candidate countries in transposing and implementing the acquis and the commitments taken in the negotiations, with emphasis on strengthening judicial and administrative capacity."

The institutional issues to be dealt with include the qualified majority voting threshold to apply in the EU Council of Ministers after 1 January 2005; the principles for allocating European Parliament seats for 2004-2009; and the necessary transitional arrangements (since the Nice Treaty does not cover these matters) on the weighting to be given to each new member state in 2004, the QMV threshold in 2004, the allocation of EP seats up to June 2004, and the order of the rotation of Presidencies in the enlarged Union.

In addition, the European Council is expected to determine the way that new member states should take part in the European Development Fund and the arrangements for their participation in the European Coal and Steel Community Fund.

On Kaliningrad, the Presidency says the Council "is expected to take stock of issues relating to transit between Kaliningrad and other parts of the Russian Federation and to take any decisions necessary in view of the EU-Russia Summit on 11 November in Copenhagen."

Candidates prepare for final lap

Ministers, senior diplomats and officials from ten of the candidate countries assessed the prospects for the final phase of negotiations when they met in Warsaw last week. The "Laeken ten" - the candidates that are hoping to win EU agreement this December that they can join the EU in 2004 - said they reviewed "the final phase of negotiations, including the financial framework for enlargement of the European Union". Ministers and state secretaries for European affairs from Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia commented positively on "the progress achieved in the accession process" and on the "efforts made by the European Commission, the Danish Presidency and the Member States" so far. But they made clear their "strong expectation that the European Council in Brussels will present to the candidate countries a financial package, which will reflect a fair balance between the rights and obligations of membership". In this final phase of the accession negotiations, "efforts should be made to fully explore all possibilities offered by Agenda 2000 in the most effective and constructive manner", they urged. They also underlined their continued interest in rapid progress, "with the objective of becoming Member States of the European Union by 1 January 2004."

Czech concerns on EMU

It will be 2007 at least before the Czech Republic can adopt the euro, according to its new finance minister, Bohuslav Sobotka. He says the country's large and growing budget deficit - estimated to reach 6.4% of GDP this year, and likely to rise as high as 8% next year before starting to dip again - precludes any early compliance with the Maastricht criterion of public finance deficits below 3% of GDP.