Week in Europe 22-29/10/01

Week in Europe 22-29/10/01

EU news in brief

The informal European Council took place in Ghent on 19 October

The official agenda of the informal European Council in Ghent included four points:

· preparing for the introduction of the euro;

· the future of Europe and the Declaration of Laeken;

· the fight against terrorism in the aftermath of the attacks of 11 September;

· enlargement.

As Presidency Conclusions, the summit approved three Declarations:

Declaration by the Heads of State and Government and the President of the Commission: 11 September attacks;

Declaration by Heads of State and Government and the President of the Commission: EURO;

Declaration by Heads of State and Government and the President of the Commission: Economic situation.

[Full text DOC/01/16]

Interactive Policy Making: Commission launches "Your voice in Europe"

The European Commission has launched a new website, "Your voice in Europe" (http://europa.eu.int/yourvoice) which shows citizens, consumers and businesses how they can be actively involved in the Commission's policy-making process. They can provide views on new initiatives and feedback on how existing rules are applied, discuss the future of Europe or lodge complaints. "Your voice in Europe" gives access to a wide variety of interactive tools such as on-line consultations, feedback mechanisms, web fora, chat rooms and complaint procedures. This direct participation by stakeholders will contribute to the effective implementation of new policies, in line with the Commissions efforts to reform European governance. "Your voice in Europe" is part of the Interactive Policy Making initiative (IP/01/519) [Background paper IP/01/1459]

Commission proposes ratification of Kyoto Protocol and emissions trading system

The European Commission adopted a major package of initiatives to combat climate change. It comprises a proposal for the EC to ratify the Kyoto Protocol; a draft Directive on greenhouse gas emissions trading within the EU; and a Communication setting out further measures for reducing greenhouse gas emissions. The Commission thereby reaffirmed the EU's commitment to bring the Kyoto Protocol into force before the World Summit on Sustainable Development ("Rio+10") in Johannesburg in September 2002 and meet its Kyoto target. Environment Commissioner Margot Wallström said: "With these proposals, we pursue the EU's ambition to provide leadership in addressing climate change. By presenting proposals for an emissions trading system and other emission reduction measures in parallel to the ratification instrument we wish to demonstrate that we are serious about delivering on the commitments we have signed up to. I hope that other Parties to the Kyoto Protocol will also move quickly towards its ratification and implementation. We have no time to lose in combating climate change”. She added: "The emissions trading system will be an important cornerstone in our strategy to reduce emissions in the most cost-effective way." [Background paper IP/01/1465]

Company taxation: Commission suggests single consolidated tax base

The European Commission has just presented a strategy for company taxation in the EU. The Commission believes that company taxation systems in the EU have failed to keep up with developments such as globalisation, economic integration in the Internal Market and Economic and Monetary Union. A new approach is needed. There are large variations, up to 30%, in effective company tax rates across the EU. Economic modelling suggests that the differences in effective tax rates are attributable mainly to differences in national statutory tax rates rather than to differences in the size of the tax base. The Commission continues to believe that company tax rates are a matter for Member States to decide. Furthermore, the Commission has identified a number of tax obstacles to cross-border economic activity in the Internal Market where Community action is necessary and proposes a two-track strategy to remove them. The Commission plans a number of targeted measures on such issues as the extension of the Directives on dividends and mergers, cross-border loss relief, transfer pricing, and double taxation conventions. At the same time, the Commission believes that companies must in the longer term be allowed a consolidated corporate tax base for their EU-wide activities to avoid the current costly inefficiencies of fifteen separate sets of tax rules. The Commission in its study has identified a number of ways of achieving a consolidated base and it plans to launch and lead a wide-ranging and detailed debate on the subject.

[Background paper IP/01/1468]

Unleashing the economic potential of Europe's public sector information for future development of European Content

On the 23rd of October the European Commission adopted a Communication aiming to improve the exploitation of public sector information throughout Europe. The purpose is to remove the many barriers content companies are facing trying to develop the next generation of cross-border information services and products based on public sector information. The overall aim is to put these European companies on an equal footing with companies in other markets such as the US, where simpler access and re-use regimes have led to a market up to five times larger than that in Europe. While the Communication comprises a set of European-level measures to facilitate the re-use of government information resources, the Commission is also considering to ease the existing barriers through a directive.

[Background paper IP/01/1481]

Welfare of animals during transport - Council approves mandate for negotiating international rules

The Agriculture Council meeting in Luxembourg agreed to mandate the European Commission to negotiate on behalf of the Community the ongoing review of the European Convention of the Council of Europe for the protection of animals during international transport. This convention is legally binding once adopted. The negotiation mandate covers all areas that fall within Community competence. Matters of national competence like transport of animals for non-commercial reasons and transport less than 50km will be negotiated by the Member States. Agriculture Ministers also defined guidelines for these negotiations: the Commission must seek to ensure that a high level of animal protection is extended to international animal transports outside the borders of the European Union, and that the provisions of the new convention are in line with existing Community legislation. Subsequent scientific developments and practical experience have to be taken into account. The rules of the new Convention are expected to be agreed in 2002. [Background paper MEMO/01/339]

Loyola de Palacio deplores the tragic accident in the Gothard tunnel

Mrs Loyola de Palacio, Vice-President of the European Commission responsible for transport and energy, deplored the accident that happened this morning in the Gothard tunnel in Switzerland. The collision of two lorries, resulting in a fire, caused the death of eleven people. The exact causes of this accident are not yet known, but the tunnel, which is 17 km long and consists of a single bore for traffic, is nonetheless regarded as one of the safest tunnels in Europe. "On behalf of the European Commission I send my deepest condolences to the Swiss authorities and to the Swiss people and also to the families of the victims of this tragic accident. They can all count on Europe's solidarity," she declared. "After fires in the Franco-Italian Mont Blanc tunnel in March 1999 and in the Austrian Tauern tunnel in May 1999, the question of tunnel safety is once again brutally cast before us," she added.

[Background paper IP/01/1486]

The Commission adopts strategy to reduce dioxins and PCBs in environment, feed and food

The European Commission adopted a strategy to reduce the presence of dioxins and polychlorinated biphenyls (PCBs) in the environment, animal feed and food. Environment Commissioner Margot Wallström said: "Despite the progress already achieved in reducing dioxin emissions, further action is needed to reduce the presence of dioxins and PCBs in the environment through measures directed at their source. Therefore, the Commission has proposed an integrated approach to enhance the protection of human health and of the environment from the effects of dioxins and PCBs". Health and Consumer Protection Commissioner David Byrne said: "It is of ultimate importance to reduce the exposure to dioxins. That is why I am proposing strict maximum limits for dioxins in food and feed, which I expect the Health Council on 15th November will endorse. The implementation of these strict limits from 1st January next year, will provide additional protection to European consumers from the long-term effects of dioxin consumption." The Communication from the Commission adopted details on the further areas of action and will be submitted to the Council, the EP and the ESC.

[Background paper IP/01/1492]

Mental Health Conference - Coping with stress and depression related problems in Europe

The conference organised by the Belgian Presidency and the European Commission took place on 25-27 October in Brussels. The main themes covered by the conference workshops are: (1) work-related stress, depression and metabolic syndrome ; (2) depression in children and adolescents ; (3) the influence on stress and depression by societal transition ; (4) preventive actions ; (5) the influence of stress and depression on premature death ; (6) monitoring and evaluation of stress and depression. The conference was opened by David Byrne, European Commissioner for Health and Consumer Protection.

[Full Byrnes speech SPEECH/01/490]

Public consultation on revising the definition of small and medium-sized enterprises (SMEs)

The European Commission has reminded all interested parties that they have until 9 November 2001 to comment on a proposal to modernise the definition of small and medium-sized enterprises (SMEs). The definition currently in use comes from a 1996 Commission recommendation and serves, inter alia, to assess eligibility for a wide range of Community and national support measures, and for state aid purposes. The old SME definition needs to be updated, both to keep pace with economic change and to prevent misuse of national state aids, EU structural funds and the EU research and development framework programme. However, the proposal would not change the definition's key criterion, which is the number of employees (250 maximum). Most of the proposed changes aim to make the definition more precise, so as to ensure fairness, facilitate implementation in EU Member States, preclude misinterpretation and enhance certainty as to the law. Family businesses and craftsmen, in particular, are expected to gain from a more precise definition of micro-enterprises. For further information please visit:

http://europa.eu.int/comm/enterprise/consultations/sme_definition/index.htm

[Background paper IP/01/1497]

Frits Bolkestein: "Implementation of Financial Services Action Plan more important than ever"

"In the wake of the terrorist attacks that occurred in the US, and in the present unstable international political and economic climate, implementation of the Lisbon agenda and therefore of the Financial Services Action Plan appears more important than ever", insisted European Internal Market Commissioner Frits Bolkestein in a speech to the European Banking Federation in Brussels. "Efficient financial markets underpinned by robust prudential supervision will help the EU to become a pillar of stability capable of responding to external shocks. This will allow the EU to reap the full benefits of the euro. A sound and stable EU regulatory framework is also of paramount importance to cope with any stability risk that may emerge in an enlarged Union. Pro-active fight against financial crime is another key for stability and a high priority on the Commission's agenda. The adoption of a second anti-money laundering Directive will be an important step. In the next few months, we must also find agreement on the proposal for a Market Abuse Directive. And technical work is underway to determine whether further improvements can be made to the EU legislative anti-money laundering framework. Together with the Council Presidency troika, the Commission has decided to initiate a high-level Mid-Term Review of the FSAP in the first quarter of 2002 to re-inject the necessary political energy and will."

[Full speech SPEECH/01/492]

Enlargement news

Innovation policy in six EU candidate countries: the challenges ahead

The need for new mechanisms to support innovation and industrial upgrading is one of the main findings of a recently published report on "Innovation Policy in Six Candidate Countries", financed by the European Commission. Such new mechanisms would help close the gap with current EU Member States, and facilitate the creation of internal networks between technologically weak domestic and technology advanced foreign-owned firms in candidate countries. In the context of enlargement and the increasing significance accorded to innovation as a key driver of competitiveness and the creation of enterprises and employment, the report examines the state of play of innovation in six countries preparing to join the EU - Cyprus, the Czech Republic, Estonia, Hungary, Poland and Slovenia - and makes an important contribution to the innovation and enlargement debates.

[Background paper IP/01/1487]

New round of enlargement negotiations shows substantialaprogress

Several candidate countries have made substantial progress in enlargement negotiations with the EU Member States in Brussels on 26 October.

The following chapters were negotiated on 26 October:

· Bulgaria: Freedom of Movement of Persons; Social Policy and Employment; Telecommunications and Information Technologies (closed); total chapters closed: 12.

· Czech Republic: Justice and Home Affairs; Freedom of Movement of Persons (closed); Financial Control (closed): total chapters closed 21.

· Estonia: Justice and Home Affairs; total chapters closed: 19.

· Latvia: Fisheries (closed); Customs Union (closed); total chapters closed: 18.

· Malta: Free Movement of Capital; Transport Policy (closed); total chapters closed: 18.

· Poland: Environment (closed); total chapters closed: 18.

· Romania: Taxation; Social Policy and Employment; total chapters closed: 8.

· Slovakia: Energy (closed); total chapters closed: 20.

· Slovenia: Justice and Home Affairs; total chapters closed: 21.

Cyprus, Hungary and Lithuania did not negotiate on 26 October, however they remain among the frontrunners:

· Cyprus: total chapters closed 23.

· Hungary: total chapters closed 22.

· Lithuania: total chapters closed 18.

[For overview of closed chapters see www.evropska-unie-cz]

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Tel.: (+420 2) 216 10 142 Fax: (+420 2) 216 10 144

e-mail: info@iceu.czhttp://www.evropska-unie.cz