The Week in Europe 7-13/10/02

22.10.2002 | Euroskop

EU news in brief

High-level e-Government Conference sets goals for on-line public services and launches new pan-European portal

E-government services must cater for Europe's linguistic diversity and be delivered as close as possible to the customer. These were key conclusions of the recent IDA (Interchange of Data between Administrations) conference: "Pan-European e-government services for citizens and enterprises: the role of IDA", in Brussels. The conference focused on the needs of cross-border users of e-government services. The full proceedings of the IDA conference are available at:

http://europa.eu.int/ISPO/ida/jsps/index.jsp?f useAction=showDocument&parent=news&documentID=579

The Public-Services.eu portal can be accessed at: http://europa.eu.int/public-services

[Background paper IP/02/1435]

Fiscal policy in Europe: how effective are automatic stabilisers ?

It is largely recognised that fiscal policy will have larger responsibilities for cyclical stabilisation in the EMU given the loss of the monetary instrument. At the same time, the EMU's budgetary framework emphasises the need to rely on automatic fiscal stabilisers, rather than active policies in cushioning the business cycle. Automatic stabilisers are relatively powerful in the event of shocks to private consumption, but less so in the case of shocks to private investment and exports. In the case of supply side shocks, the automatic stabilisers are largely ineffective, but this may actually be a good thing to the extent that supply-side disturbances call for structural adjustment rather than cyclical stabilisation. Full document on:

http://europa.eu.int/comm/economy_finance/publications/economic_papers/economicpapers177_en.htm

Accession of the European Community to Eurocontrol: towards a Single Pan-European Sky

The Plenipotentiaries of the 31 Member States of EUROCONTROL and the European Community, represented by the Vice-President of the European Commission and the President of the EU Transport Council, signedon 8 October the Protocol on the accession of the European Community to EUROCONTROL at a Diplomatic Conference held at the Organisation's Headquarters in Brussels, under the Presidency of the Belgian Minister for Mobility and Transport, Mrs Isabelle Durant. The signing of the accession Protocol was the culmination of extensive negotiations, which began two years ago when it was recognised that there was a need to ensure consistency between the working arrangements and functions of the two organisations in matters relating to European air transport. The process leading to this accession has been made possible thanks to the commitment and determination of all concerned. EUROCONTROL website:

www.eurocontrol.int

[Background paper IP/02/1440]

Towards the Enlarged Union - Commission recommends conclusion of negotiations with ten candidate countries

The European Commission recommended that the negotiations on accession to the European Union should be concluded by the end of this year with Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia. The Commission considers that these countries will be ready for membership from the beginning of 2004. The recommendations are based on a rigorous and fair assessment of the state of preparedness of each candidate country. Preparations of the ten countries for membership will continue and will be strictly monitored by the Commission. As for Bulgaria and Romania, the Commission will strongly support these two countries in achieving their objective to join in 2007. Regarding Turkey, the Commission recommends that the EU should enhance its support for Turkey's pre-accession preparations and provide additional resources for this purpose. The findings and recommendations of the regular reports and the strategy paper adopted by the Commission will be examined by the European Council meeting in Brussels on 24-25 October.

[Background paper IP/02/1443]

Commission approves aid package for victims of the floods in Germany

The European Commission has approved four aid schemes aimed at compensating victims in the agricultural and industrial sector for the damage caused by the recent floods in Germany. By demonstrating its determination to support and to process with maximum urgency the measures undertaken to the aid of the victims in Germany, the Commission wishes to express its solidarity with the citizens affected by this natural disaster. On 4 and 6 September 2002 the German government notified the Commission of its intention to implement four schemes to compensate companies affected by the floods in the regions of Sachsen, Sachsen-Anhalt, Brandenburg, Thüringen, Mecklenburg-Vorpommern, Bayern, Niedersachsen and Schleswig-Holstein, most of which in eastern Germany. As announced by the Commission the schemes were examined rapidly and it was concluded that the compensation proposed by Germany could be paid in its entirety. The schemes proposed by the German Federal Government and the regions (Länder) will help companies in the industrial and farm sectors and were examined by the Commission's competition and agricultural services, respectively.

[Background paper IP/02/1451]

Indicator-based forecast for euro area GDP for 3rd and 4th quarter of 2002

The indicator-based model for quarterly GDP growth for the euro area, developed by the DG ECOFIN?, forecasts for the third quarter of 2002 a range of 0.2% to 0.5% for growth in GDP vis-ŕ-vis the previous quarter. This is a slight downward revision compared to the forecast released on 6 September 2002. For the fourth quarter of 2002, quarter on quarter growth is forecast to be in the same range. The economic explanations for these revisions lie in the deterioration of household spending and foreign demand in the latest months, which are captured in the model for Q3 by car sales (which declined this Summer) and for Q4 by the US ISM index (which dropped in September under the 50% threshold, separating expansion from contraction in the manufacturing sector). Full document available on:

http://europa.eu.int/comm/economy_finance/indicators/euroareagdp_en.htm

Ambitious urban transport policies: Launch of the CIVITAS Forum

The European Commission is launching the CIVITAS Forum, a platform for all European cities committed to the introduction of ambitious urban transport policies and new technologies. ”The European Commission supports and congratulates the public representatives of the first 19 cities that have signed the CIVITAS Forum Declaration this morning. I am happy to announce that we intend to launch a new CIVITAS call in 2003 under the 6th RD? Framework Programme”, said Loyola de Palacio, Vice-President responsible for energy and transport.

The CIVITAS Initiative addresses ambitious cities that are introducing bold innovative measures intended to radically improve urban transport. The aim is to achieve a significant change in the modal split towards sustainable transport modes. In order to reach their goals, CIVITAS cities follow an ambitious and coherent approach to energy and urban transport policies.

[Background paper IP/02/1453]

Eurostat news releases

The life of women and men in Europe -A statistical portrait of women and men in all stages of life

Eurostat and the Directorate General of the European Commission for Employment and Social Affairs launched on 8 October a new publication on "The life of women and men in Europe". This publication gives a portrait of the various stages of life: youth, adulthood and retirement, presenting statistics on the differences and similarities of women and men in the EU. Data, whenever possible, are also provided for the Candidate Countries.

[Background paper STAT/02/121]

Second estimation for the second quarter of 2002: euro-zone and EU15 GDP up by 0.4% ; +0.7% and +0.8% respectively compared to second quarter of 2001

Gross Domestic Product (GDP) grew by 0.4% in both the euro-zone and EU15 during the second quarter of 2002, according to estimates out from Eurostat. These results follow an increase of 0.4% in the euro-zone and 0.3% in the EU15 in the first quarter of 2002. In comparison with the second quarter of 2001, GDP grew by 0.7% in the euro-zone and by 0.8% in the EU15, after increases of 0.3% and 0.4%, respectively, in the previous quarter.

[Background paper STAT/02/122]

Enlargement news

Ministerial negotiations tighten the focus on enlargement

The ministerial negotiating sessions with eleven of the candidate countries in Brussels on 1 October resulted in the provisional closure of some of the few chapters now outstanding. This focuses more clearly on the tasks still to be tackled if negotiations are to be closed with any of the candidates at the Copenhagen summit.

President of the EU Council Per Stig Mřller, EU member states ministers and senior diplomats, and European Enlargement Commissioner Günter Verheugen held talks successively with the foreign or European affairs ministers of the candidates with chapters ready to close. Much of the outcome was confirmation of the results already obtained at the level of chief negotiators and EU ambassadors on 28 June and 29 July. But there were also some new chapter closures, too, and nearly all the candidates edged closer to conclusion of the talks on the 30 chapters already opened with most of them. Stig Mřller said: "We closed four new chapters and confirmed the results, previously agreed at deputies level, in an additional twenty four chapters. Basically we have cleared the table except for the finance related chapters, which await the European Council in Brussels, and competition policy with a number of candidates." And he said he was confident it would be possible to conclude the competition chapter before the October Brussels Summit. An additional negotiation session at the deputy level is planned for mid-October.

Access negotiations - State of play

EU foreign affairs ministers confirm Brussels summit plans

The 30 September General Affairs and External Relations Council confirmed the Danish Presidencys plans for the 24-25 October summit in Brussels (see last issue of Week in Europe). Danish Minister for Foreign Affairs Per Stig Mřller said EU foreign affairs ministers agreed to focus the European Council on two subjects: enlargement and Kaliningrad.

Ministers discussed the budgetary and institutional issues outstanding for enlargement. There was no agreement, the Presidency said, "but the discussion showed a broad support for the Presidency proposal and we will continue our work on that basis”. The Presidencys report on the meeting notes that the Council will have to decide on the candidates which fulfil the Copenhagen criteria and with which the negotiations can be concluded by the Copenhagen European Council in December. It will also have to decide on the open financial and budgetary issues (in the fields of agriculture, structural funds and cohesion funds, internal policies, as well as on the question of budgetary compensations) with a view to presenting the relevant common positions to the candidate countries in early November. And the Council should take a position on the institutional issues arising in connection with the enlargement of the EU to a Union of up to 25 members. All these issues will be revisited by the General Affairs and External Relations Council on 21-22 October.

And on Kaliningrad, foreign affairs ministers agreed on basic principles on which a solution has to be based. Any agreement with Russia on movement of its citizens to and from Kaliningrad across the territory of EU member states should be consistent with the acquis, not create obstacles to the accession of the candidate countries to Schengen, and have the agreement of the candidate countries concerned.

The Presidency will now take contact with the Lithuanian authorities about when a feasibility study might be started on the proposal for a high-speed train crossing it from Kaliningrad to Belarus, and on how to ensure a smooth transition to the facilitated transit document that the Commission has proposed for Kaliningrad citizens. But, said Per Stig Mřller, "Russian concerns must be addressed in a manner consistent with the enlargement process and with the political aim of creating a strategic partnership and enhancing co-operation not least on issues related to border management".

Bringing the candidates into EU research programmes

New agreements are under way with the candidate countries for the EU's just agreed 6th Framework Programme for Research and Development, covering 2002-2006. But opening up the programmes also has its price. Each country will be required to make a financial contribution, currently estimated as follows (in euro): Turkey: 262 million; Cyprus: 16.55 million; Slovenia: 36.55 million; Romania: 77.24 million; Latvia: 14.79 million; Hungary: 100.75 million; Malta: 6.53 million; Poland: 312.99 million; Czech Republic: 109.40 million; Lithuania: 21.75 million; Bulgaria: 26.55 million; Slovakia: 39.86 million.

Czechs fighting through floods towards accession

The Czech Republic is still on course for completing EU accession negotiations this year, despite the additional problems created by the summer floods, according to the Danish Presidency of the EU. But nothing can yet be taken for granted, minister for foreign affairs Per Stig Mřller made clear after meeting Czech foreign minister Cyril Svoboda. "I am pleased to note that the Czech Republic has made great progress in its preparations for membership of the EU," said the Council of Ministers President. "The terrible floods that hit the Czech Republic during August have given the Czech Government a daunting task of rebuilding and restoring. However, this has not slowed down the country's preparations for EU membership." Reaffirming that the Danish EU Presidency remains determined to complete the negotiations with the first group of candidate countries before the end of the year, he added, however, that "we face some difficult negotiations before this goal is fulfilled". And he said his talks with Svoboda have "confirmed that the Czech Republic will participate in these negotiations with a realistic and constructive approach".

Meanwhile, the European Union launched a call for proposals on 30 September for civil society organisations in the Czech Republic to help in reconstruction efforts following the floods. Non-governmental organisations and non-profit organisations in the Jihocesky, Ustecky, Liberecky, Stredocesky, Plzensky, Jihomoravsky, Karlovarsky and Prague regions are being invited to submit proposals for reconstruction projects to be financed by the European Union. Up to 90% of project costs could be funded by the EU. The total budget of the scheme is €1 million, which will be financed under the EU's Phare Programme. Launching the scheme, the Head of the European Commission's Delegation in the Czech Republic, Ambassador Ramiro Cibrián, said: "Non-governmental organisations and non-profit organisations play a very important role in the effort to remove damages caused by the devastating mid-August floods because they are close to citizens and they are familiar with their needs." It will cover renovation and reconstruction of flooded buildings; the organisation of volunteers to work in flooded areas; counselling services for employment, social and legal matters; and removal of flood debris and other activities to help communities affected.

Candidates have divergent vocational training levels

A new Eurostat report shows some candidate countries are well placed in the ranking of participation in vocational training. The report puts Sweden, Denmark, Finland and Norway at the top: 50% or more of their employees take part. But candidates such as the Czech Republic and Slovenia do nearly as well as Ireland, Belgium, the Netherlands, Luxembourg, Germany and Austria, with participation rates of between 30-40%. By contrast, candidates such as Estonia, Poland, Bulgaria, Latvia, and Hungary have lower rates of participation - alongside Spain and Portugal - with fewer than 30%. At the bottom of the ranking are Lithuania and Romania, with less than 10% participation. The Danish Presidency has already announced a number of initiatives to help boost vocational training - including a meeting on 29-30 November in Copenhagen, when education ministers from member states and candidate countries are expected to sign a declaration on increased co-operation in the field of vocational education and training.

Enlargement as a key to improving the environment in the future EU

"At the start of the enlargement negotiations, many feared that the environment would be one of the most difficult issues to settle," recalled European Environment Commissioner Margot Wallström, speaking at the UK Labour Party Conference in Blackpool last week. There were, she said, "real political difficulties", and the candidates and the EU have "faced sometimes the sheer practical impossibility of the task", and have had to agree to extend the implementation deadline of some of the EU's environment directives. But, she insisted, despite fears in the EU of environmental dumping - lower environmental standards giving companies in candidate countries competitive advantages - "this has not been the case". "The EU defined already in the early stage of the negotiations that transitional periods for certain environmental directives would be out of question. For example, no transition periods should be accepted if they have a major effect on the Single Market. For example, that is why the EU has refused transition periods for the directives related to the product standards for fuel. On the other hand, transition periods on legislation requiring very heavy investments have been possible. They have been negotiated on a case-by-case basis, and accepted where they have been sufficiently limited in time and scope."

The commitments made by the candidates in the environment negotiations will bring a range of benefits, worth from €134 to 681 billion over the period 1999-2020 - or from €12 billion to 69 billion a year, said the Commissioner. She said up-grading the national environmental norms to match EU requirements will reduce air pollution, bring better quality drinking water to millions and improve waste management. It will eliminate the worst health hazards and improve people's living environment, for instance by reducing respiratory diseases. And the candidate countries will also make an important environmental contribution to the EU - ranging from their areas of outstanding natural beauty and wildlife habitats to their often greater use of public transport. "These benefits are very real. If we do not take them into account we will never have a complete understanding of the true effects of enlargement," said Wallström.