EU Public Affairs Bulletin January/February 2010 Brussels Round-up Ashton struggles to make her mark Baroness Catherine Ashton has come in for renewed criticism over the way she has started her tenure as EU Foreign Affairs Minister. The Times reported that politicians and journalists in Brussels have been scathing of her working practices, which apparently see the Baroness spending “more time on the Eurostar commuting home to London than in her office, where nobody answers the phone after 8pm”. MEPs questioning Ms Ashton earlier in the month were also highly critical of her decision not to fly out to Haiti in the wake of the massive earthquake earlier this month. “I’m neither a doctor nor a fireman,” the Baroness said in her defence. http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article70052 57.ece Spain launches EU Presidency The presidency of the European Council changed hands at the turn of the year with Spain taking over for the next 6-month period. The launch encountered a hitch, however, when the newly built Spanish Presidency website was hacked into and images of Prime Minister José Zapatero were replaced with pictures of Mr Bean. The resemblance between the Spanish leader and the British comical actor has been highlighted by political satirists on previous occasions. In a recent edition of El Pais, Mr Zapatero was depicted as Mr Bean in a cartoon above an article that was highly critical of his handling of the economy in Spain, where unemployment has reached almost 20%. http://news.bbc.co.uk/1/hi/8440554.stm New EU Commissioners All of the 26 nominees to the new European Commission have been approved by the parliamentary committees which vet them. The last nominee, Kristalina Georgieva, is was vetted on the 3 rd of February. Like the last Commission, this one is headed by veteran Portuguese conservative politician Jose Manuel Barroso. His appointment
Transcript
EU Public Affairs Bulletin January/February 2010
Brussels Round-up Ashton struggles to make her mark Baroness Catherine Ashton has come in for renewed criticism over the way she has started her tenure as EU Foreign Affairs Minister. The Times reported that politicians and journalists in Brussels have been scathing of her working practices, which apparently see the Baroness spending “more time on the Eurostar commuting home to London than in her office, where nobody answers the phone after 8pm”. MEPs questioning Ms Ashton earlier in the month were also highly critical of her decision not to fly out to Haiti in the wake of the massive earthquake earlier this month. “I’m neither a doctor nor a fireman,” the Baroness said in her defence. http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article7005257.ece Spain launches EU Presidency The presidency of the European Council changed hands at the turn of the year with Spain taking over for the next 6-month period. The launch encountered a hitch, however, when the newly built Spanish Presidency website was hacked into and images of Prime Minister José Zapatero were replaced with pictures of Mr Bean. The resemblance between the Spanish leader and the British comical actor has been highlighted by political satirists on previous occasions. In a recent edition of El Pais, Mr Zapatero was depicted as Mr Bean in a cartoon above an article that was highly critical of his handling of the economy in Spain, where unemployment has reached almost 20%. http://news.bbc.co.uk/1/hi/8440554.stm New EU Commissioners All of the 26 nominees to the new European Commission have been approved by the parliamentary committees which vet them. The last nominee, Kristalina Georgieva, is was vetted on the 3rd of February. Like the last Commission, this one is headed by veteran Portuguese conservative politician Jose Manuel Barroso. His appointment
has already been confirmed by EU leaders. EU parliament confirmed the entire college of the new Commission on the 9th of February. http://news.bbc.co.uk/1/hi/world/europe/8453971.stm Parliament paves way for single EU defence market On the 14th January MEPs approved new EU rules to open up national defence procurement to all European suppliers. Some hope that this move will introduce more transparency and competition to the defence market but industry has warned that the move may damage research and development investment. The legislation establishes a co-ordinated EU procedure for public procurement of defence and security goods. http://www.euractiv.com/en/trade/parliament-paves-way-single-eu-defence-market/article-178515 Oettinger gives strong performance in the European Parliament January saw the formal hearings in the Committees of the European Parliament for the prospective new European Commissioners. Among them, Germany’s Gunther Oettinger put in a strong showing in front of the Industry and Environment Committees, setting out his policy priorities for the term. On energy efficiency, Mr Oettinger was questioned on the target of 20% savings by 2020. In his response he stated that “guidelines that give long-term planning security are not a disadvantage for industry but an advantage in future markets” and that he was prepared to “intervene strongly” in the areas of electricity generation, industrial production and buildings. http://www.europarl.europa.eu/news/expert/infopress_page/008-67199-013-01-03-901-20100113IPR67198-13-01-2010-2010-false/default_en.htm Commission presents ‘options’ for 2020 biodiversity The European Commission marked the opening of the International Year of Biodiversity by setting out a paper outlining future options for biodiversity policy. The new proposals suggest a long-term (2050) vision with four future options for a 2020 target:
− Significantly reducing the rate of loss of biodiversity and ecosystem services in the EU by 2020
− Halting the loss of biodiversity and ecosystem services in the EU by 2020 − Halting the loss of biodiversity and ecosystem services in the EU by 2020 and
restoring them as far as possible − Halting the loss of biodiversity and ecosystem services in the EU by 2020 and
restoring them as far as possible, and stepping up the EU’s contribution to averting global biodiversity loss
British Eurosceptic insults EU president Nigel Farage of the United Kingdom Independence Party launched a remarkable attack on president of the European Council Herman Van Rompuy, the Belgian chosen by the 27 EU leaders to chair their regular summits on 24 February. Farage said that when the EU appointed its first president last November, it was hoped he would be "a giant global figure" and a "political leader for 500 million people" who deserved a higher salary than US President Barack Obama. "But I'm afraid all we got was you," said Farage, looking directly at Van Rompuy, the 62-year-old former Belgian prime minister. "I don't want to be rude but you know, really, you have the charisma of a damp rag and the appearance [...] of a bank clerk". http://www.euractiv.com/en/future-eu/british-eurosceptic-insults-eu-president-parliament-news-286011 The month ahead 1 – 5 March Political Group week in the European Parliament Competitiveness Council – 1-2 March 8 – 12 March European Parliament Plenary session Employment, Social Policy, Health and Consumer Affairs Council – 8-9 March Transport, Telecommunications and Energy Council – 11-12 March 15 – 19 March Committee week in the European Parliament Environment Council – 15 March Economic and Financial Affairs Council – 16 March 22 – 26 March European Parliament Mini-plenary session General Affairs Council – 22 March
• European Parliament - The Week Ahead 1-7 March 2010 • EP Plenary - Late payment of bills in the business world: the same penalties for
all • EP Plenary - Small business start-ups by the unemployed: deal agreed on
funding • EP Committee - Support small firms while tackling the crisis, say MEPs and
experts • European Commission - Erasmus for Young Entrepreneurs” to boost creation
of small enterprises • European Commission - News from the Communication Directorate General's
midday briefing • Draft Directive concerning mergers of public limited liability companies -
codification • Common system of VAT as regards the rules on invoicing • Draft Directive on integrated pollution prevention and control - recast • European Investment Bank - EIB delivers unprecedented lending volume • European Parliament - Pascal Lamy: the WTO system withstood the crisis • Speech by Viviane Reading - Making the Most of the Internal Market: Concrete
EU Solutions to Cut Red Tape and to Boost the Economy
Europe European Parliament - The Week Ahead 1-7 March 2010 Fri, 26 February 2010 | European Parliament Debate Contents The Week Ahead 1-7 March 2010 26-02-2010 - 09:59
Committee meetings and political groups week – Brussels
Airport security charges. The Transport Committee votes on legislation setting EU-wide principles to ensure the transparency of charges to users for security arrangements at airports (Monday). The rapporteur proposes that the Member States cover the costs of security measures that go beyond common EU requirements.
EU Budget 2011. The Budgets Committee takes its first step in setting next year’s EU budget when it adopts its guidelines for the procedure ahead (Thursday).
EP President – Ukraine, Italy, Croatia. Jerzy Buzek, President of the European Parliament, will have meetings in Brussels with Ukrainian President Viktor Yanukovych (Monday, followed by a press conference), Italian President Giorgio Napolitano and Croatian President Ivo Josipovic (both Thursday, with a press point after each meeting).
Jerzy Buzek in Bulgaria. The EP President will make an official visit to Bulgaria, including meetings with President Georgi Parvanov, Prime Minister Boyko Borisov, and the speaker of the National Assembly, Tsetska Tsacheva (Wednesday).
Plenary preparations. Parliament’s political groups will devote most of the week to preparations for the 8-11 March plenary session in Strasbourg. The agenda includes Parliament’s annual assessment of EU Foreign and Security Policy, which has added significance given the setting up of the External Action Service, as well as a resolution on the Goldstone report on the Israel-Gaza conflict. MEPs will debate the situation of the Roma in Europe and vote on legislation exempting the smallest businesses from formal accounting requirements, a resolution on the recent European summit and the Europe 2020 economic programme and the EP position on the Europeana digital library project.
Pre-session press briefing. Any changes to the agenda adopted by the Conference of Presidents will be presented at the regular press briefing at 11am on Friday. Parliament’s press service and the spokespeople of the main political groups will be on hand to comment on the session ahead (PHS 0A050 Anna Politkovskaya room).
EP Plenary - Late payment of bills in the business world: the same penalties for all Wed, 24 February 2010 | European Parliament Debate Contents Late payment of bills in the business world: the same penalties for all (Committees) Industry - 24-02-2010 - 11:35 Download the article in PDF format
Companies should be able to get money owed to them more quickly thanks to an update of the existing EU directive on late payment in commercial transactions. This is crucial to the survival of businesses which are encountering growing cashflow problems in the economic crisis. The EP draft report on this subject was presented for the first time on Monday 23 February.
This first version of the parliamentary report on the thorny issue of late payments is the product of several months of work and consultation with experts, both sides of industry and national parliamentarians. The late payment of bills is a frequent cause of the cashflow problems suffered by thousands of firms on the edge of bankruptcy. According to studies by the European Commission, in some Member States the public authorities are the worst payers. For this reason the draft legislation differentiates between the private and public sectors.
Equal penalties for private firms and public bodies
Barbara Weiler (S&D, DE), author of the parliamentary report, recognises the justification for distinguishing between private companies and public authorities in this matter. However, she believes the penalties imposed on late payers should be the same for all. This view was backed by MPs from national parliaments invited to Brussels by the Internal Market Committee in September 2009.
Another change made to the draft legislation by the rapporteur is to the level of penalties. Instead of 5% of the sum due, as proposed by the European Commission when late payment interest is payable, Barbara Weiler calls for a sliding scale under which the debtor would pay 2% of the sum due as soon as interest becomes payable, then 4% of the sum from the forty-fifth day following this date and, lastly, 5% from the sixtieth day. The penalty should not exceed €50,000.
A 30-day deadline for public bodies
The draft directive does not propose setting payment deadlines for private firms but it does for public authorities. Barbara Weiler believes the derogations envisaged in the draft text are unhelpful for legal clarity. She argues that a 30-day payment deadline should be the basic principle for public bodies and that any derogations - which should be carefully defined - should remain the exception. However, she does agree with the idea of a 60-day payment deadline for public bodies in "genuinely justified cases" and for public authorities operating in the health sector.
The draft parliamentary report also proposes the introduction of staggered payments, which are already used in the construction industry, to improve firms' cashflow situations. The definition of public authorities is also broadened, to include public undertakings of general interest (for example, water, energy, transport and postal bodies).
Next steps
Members of the EP Internal Market and Consumer Protection Committee, which is responsible for the passage of this legislation through Parliament, have until 2 March to table amendments to the draft report. The committee vote will take place in April and the plenary vote in May.
EP Plenary - Small business start-ups by the unemployed: deal agreed on funding Thu, 11 February 2010 | European Parliament Debate Summary MEPs gave their backing for EU funding to help unemployed small business start-ups through a microfinance facility by 511 votes to 95, with 11 abstentions.
The European Parliament agreed to make €100 million available for the facility over four years, from which €60 million will come form the Progress programme and €40 million from unallocated margins in the EU budget.
The legislation is scheduled to come into force the 20th day following its publication in the EU Official Journal.
Contents MEPs gave the green light on Thursday for EU funding to help Europe's unemployed start up small businesses. Credit will be made available to budding entrepreneurs through a "microfinance facility" funded partly from the existing Progress programme and partly from unallocated money in the EU budget.
An agreement on this issue reached between MEPs in the Employment and Social Affairs Committee and the Spanish Presidency was endorsed by the full Parliament by 511 votes to 95, with 11 abstentions.
How the deal was reached
In December, Parliament approved the creation of a "European Progress Microfinance Facility" to make it easier for people who have lost or risk losing their jobs to get credit to start up their own businesses. MEPs agreed to make €100 million available for the facility over four years.
However, the Commission had proposed that the facility be funded from the Progress programme, a programme for employment and social solidarity, which is also targeted at the most vulnerable groups, while MEPs in the Employment and Social Affairs Committee wanted fresh money.
Under the compromise, €60 million will come from the Progress programme and €40 million from unallocated margins in the EU budget. For 2010, Parliament and Council have already agreed to release €25 million from the 2010 EU budget.
The legislation is scheduled to come into force the 20th day following its publication in the EU Official Journal.
EP Committee - Support small firms while tackling the crisis, say MEPs and experts Tue, 2 February 2010 | European Parliament Debate Summary Emphasising the importance of small and medium-sized enterprises for the European economy, members for the Special Committee on the Financial Economic and Social Crisis (CRIS) and experts agreed that more support for SMEs is required to further stimulate growth and employment in a bid to tackle the economic crisis.
The President of the Confederation of Portuguese Industry, António Saraiva, noted that Portugal’s “business fabric is made up mainly of SMEs” and lamented that small and micro businesses face difficult access to credit and struggle to cope with complex legislation, slow courts, payment delays and labour market constraints.
France’s SME had been “seriously affected” by falling demand, changing client behaviour and greater difficulty in accessing financial services. In contrast, Sweden reports a growth in employment for SME, notably “knowledge-intensive sectors”, but calls for a reform of the legal system to further help small businesses.
The European Union as a whole lacks young and innovate companies, it was noted.
MEPs questioned the speakers about numerous subjects, including inter alia the role of state and public authorities in ensuring that the EU Small Business Act is applied, about co-operative initiatives, notably for R&D and training and SMEs' access to public procurement.
It is expected that rapporteur Pervenche Berès tables his draft report on 29 April 2010. Adoption in the committee responsible is scheduled for 13 July 2010.
Contents Small firms have been hard hit by the economic crisis, and so must be given incentives and support, including easier access to credit, help with innovation, tax breaks and less red tape, MEPs on Parliament's Special Committee on the Financial, Economic and Social Crisis (CRIS), and experts agreed at a workshop on Monday.
Small and medium-sized enterprises (SMEs), “represent the backbone of the European economy, provide most jobs and are the most creative. They therefore contribute considerably to the EU's success”, declared Special Committee Chairman Wolf Klinz (ALDE, DE), opening the workshop on the impact of the crisis on SMEs.
"SMEs are important not only for innovation but also as engines for growth and employment", agreed Pontus Braunerhjelm, Managing Director of Swedish Entrepreneurship Forum and Professor of International Business and Entrepreneurship at the Royal Institute of Technology in Stockholm.
Taking stock
In Portugal, the “business fabric is made up mainly of SMEs, particularly micro ones”, said António Saraiva, President of the Confederation of Portuguese Industry (CIP), citing European Commission data that Portugal's per capita ratio of SMEs is more than twice the EU27 Member States' average.
SMEs face “particularly difficult access to credit and can’t obtain the traditional sorts of bank loan”, pointed out Mr Saraiva, noting that “guarantees required by banks are
pretty burdensome and government measures don’t lead to desired results.” They must also deal with particularly complex legislation, slow courts, payment delays sometimes exceeding 1,000 days, and labour market constraints, besides having to pay VAT even before they are able to collect it, he added.
In France, “93% of all businesses have fewer than 10 employees”, said Maria Nowak of the European Microfinance Network and the Association pour le droit à l'initiative économique (ADIE) in Paris. In 2009, the French economy lost 500,000 jobs but on the other hand, 570,000 to 600,000 new enterprises were created - 72% up on 2008. Entrepreneurship was further boosted by a new law on self-employment (in 2009, there were 300,000 people registered as self-employed), she added. Ms Nowak concluded that French SMEs had been “seriously affected” by falling demand, changing client behaviour and greater difficulty in accessing financial services, but said “80 % of them remain optimistic."
In Sweden, where employment had fallen in the 30 largest companies but grown in small firms and services, "knowledge-intensive sectors are expanding to the detriment of labour intensive sectors", said Pontus Braunerhjelm, adding that there is often "too much red tape" and that reform of the "legal system is one of the cornerstones for SMEs to have a chance to succeed."
In the EU as a whole, "we are missing young and innovative companies", which play a growth-enhancing role, partly due to the "protectionism, protection of inefficient firms and labour market regulations", said Reinhilde Veugelers, Professor of Managerial Economics, Strategy and Innovation at the Catholic University of Leuven.
It is "too early to exit the recovery programmes", but firms "already need to know what will follow", said Gerhard Huemer, Economic and Fiscal Policy Director of the SME association UEAPME. "We were shocked" that the Commission's proposal for the EU2020 (post-Lisbon) strategy "does not once mention good quality legislation", he added.
SMEs were "hit twice" by the crisis: first in terms of credit access and then by falling demand for their goods and services, said Yiorgos Ioannidis, Visiting Fellow in the Department of Political and International Studies of Cambridge University (UK), citing an OECD study. Mr Ioannidis highlighted an "absence of statistics" necessary to compare developments across Europe.
Need for bold measures
Diogo Feio (EPP, PT), and Burkhard Balz (EPP, DE), quizzed speakers about the role of state and public authorities in supporting small firms and ensuring that the EU Small Business Act is applied. Reinhilde Veugelers replied that "unfortunately, we have still incomplete knowledge about what works and what doesn't." But all speakers agreed that "all assistance is welcome", because "everything we can do to promote creativity will promote our growth and development."
Now is a "good time for all co-operative initiatives" among SMEs, inter alia to "pool the resources for R&D and training", said Ms Nowak in a reply to Sergio Gaetano Cofferati (S&D, IT). "Partnership between companies is the only way out", agreed Mr Saraiva.
Stressing the "absolute" importance of continuous training, Mr Huemer advocated "joint programmes for whole sectors", rather than separate training for each company.
In Europe, greater freedom to "hire and fire", which Mr Braunerhjelm listed as a worthwhile labour market measure, is "almost the F-word (...) it is an American model," said Olle Schmidt (ALDE, SE). "We don't need to copy the US system", but we do need a "system that enables restructuring", replied Mr Braunerhjelm.
Kay Swinburne (ECR, UK) and Special committee rapporteur Pervenche Berès (S&D, FR), were both interested in financial support to SMEs and asked respectively about "instruments to be set up to help these companies as regards credit" and their "access to public procurement."
SMEs "maybe suffered less from relocation of industries" but they are the bedrock of our economy and so it is essential to "guarantee their access to public procurement" and "develop on a large scale" other sources of financing e.g. equity, venture capital or micro-credits, said Ms Nowak. Ms Veugelers also stressed the need to "develop venture capital" at EU level.
Some SMEs see freedom to supply services across borders "as a king of threat", said Mr Huemer, in a reply to a question by Othmar Karas (EPP, AT), about the impact of the EU services directive. Mr Huemer noted that the directive had to be implemented by the end of 2009, and suggested waiting 3 years before evaluating the situation.
Next Steps
The experts' input will feed further discussion among MEPs and the final report by Special Committee rapporteur Pervenche Berès. The draft should be unveiled on 29 April, to allow time for amendments before the final report is adopted in Committee on 13 July. The CRIS report than will be put to a vote by Parliament as a whole at the September II Plenary session.
European Commission - Erasmus for Young Entrepreneurs” to boost creation of small enterprises Wed, 24 February 2010 | European Commission Press Release Contents IP/10/185
Brussels, 24 th February 2010
Erasmus for Young Entrepreneurs” to boost creation of small enterprises
Are you thinking about setting up your own business or are you already a successful entrepreneur? The Erasmus for Young Entrepreneurs exchange scheme offers an excellent opportunity for new entrepreneurs to acquire relevant skills for managing a small or medium-sized enterprise (SME). The new entrepreneurs will learn how to manage an SME as well as getting familiar with the business environment in another EU country by working with an
experienced entrepreneur. “Erasmus for Young Entrepreneurs” was launched by the European Commission in February 2009.
European Commission Vice President Antonio Tajani, responsible for enterprise and industry policy, said: “During these difficult economic times we need to unlock the huge potential of start-up entrepreneurs and stimulate them to take the final step and set up a new enterprise. They gain a unique opportunity to learn from experienced colleagues so that their business ideas can become a reality. We need more SMEs to get out of the current crisis. They are creating most new jobs and are the driving force of our economy.”
New entrepreneurs can choose to stay between 1 to 6 months with an experienced entrepreneur. During that period, they are expected to acquire relevant start-up and SME management knowledge in areas like financial and operational management, development of innovative products and services, successful sales and marketing practices, European commercial law and the single European market.
Host entrepreneurs are experienced entrepreneurs who own or manage an SME in the EU. They will also benefit from the scheme through enhancing their market access and identifying potential partners in other EU countries. The scheme will facilitate networking between entrepreneurs by building upon cross-border knowledge and experience within the EU.
Tajani underlined that the level of internationalisation of SMEs needs to be improved, given that only few SMEs exporting their goods and services within or outside the EU.
So far more than 50 exchanges have taken place while 100 are currently carried out. There are more than 1800 applications with Italy and Spain accounting for more than 45% of the total applications.
“Erasmus for Young Entrepreneurs” is financed by the European Commission and operates across EU Member States with the help of more than 160 intermediary organisations which have prominent business support background, such as Chambers of Commerce, business support organisations or start-up centres.
Information on how to apply can be found at www.erasmus-entrepreneurs.eu
European Commission - News from the Communication Directorate General's midday briefing Wed, 24 February 2010 | European Commission Press Release Contents
* State aid: Commission launches investigation into state loan granted to Czech airlines
The European Commission has today decided to launch an investigation into a loan granted to CSA – Czech airlines a. s. by the State-owned entity Osinek a. s. to determine if these actions are compatible with the EU State aid rules. At this stage, the Commission cannot exclude that the loan and its subsequent de-collateralisation - which the airline will use to finance costs linked to the operation of the company - constitutes aid that is incompatible with the internal market. The investigation will give all interested parties the opportunity to submit their comments.
* State aid: Commission opens in-depth investigation into German rules on fiscal loss carry-forward for ailing companies ("Sanierungsklausel")
The European Commission has opened a formal investigation under EU Treaty state aid rules into a German tax advantage granted to ailing companies when there are significant changes in their shareholding. The German authorities consider that this measure does not fall under the state aid rules. The Commission, however, is concerned that the measure may favour ailing companies in comparison to healthy companies, with regard to their loss carry-forwards. The Commission has doubts on the compatibility of the measures with the EU Guidelines on Rescue and Restructuring aid. The opening of an in-depth investigation gives interested parties the possibility to comment on the proposed measures. It does not prejudge the outcome of the procedure.
* State aid: Commission approves indemnity scheme for federal museums in Austria
The European Commission has endorsed, under EU state aid rules, a scheme which allows the Austrian Minister of Finance to assume liability for damage to art objects borrowed by Austrian federal museums for exhibition in Vienna.
* State aid: Commission launches in-depth investigation into €166 million State loan granted to the Slovak rail freight company
The European Commission has launched an in-depth investigation to ascertain whether the loan granted by the Slovak State to Železnicná spolocnost Cargo Slovakia a.s (ZSSK Cargo) is compatible with the EU State aid rules. At this stage the Commission believes that the loan - which the Slovak rail freight company will use to finance costs linked to the operation of the company - could constitute State aid that is incompatible with the internal market. The investigation will give all the interested parties the opportunity to submit their comments.
* State aid: Commission takes Greece to Court for failure to recover illegal tax exemptions
The European Commission has decided to refer Greece to the Court of Justice of the European Union on the basis of Article 108(2) of the Treaty on the Functioning of the European Union (TFEU) for failing to comply with a Commission decision of July 2008. The 2008 decision ordered Greece to recover state aid unlawfully granted to hundreds of companies through illegal tax exemptions. To date, Greece has not recovered the aid from the beneficiaries.
* Commission responds to calls for stronger EU border management agency
The Commission today made proposals to strengthen European Union's border management agency, Frontex. The proposals include reinforcing the legal framework to ensure full respect of fundamental rights during Frontex activities and enhancing the operational capacity of Frontex to support Member States. With the new proposal Member States would put more equipment and more personnel at the Agency's disposal. Frontex would be able to co-lead border patrols operations with EU Member States. It would also be allowed to provide technical assistance to third countries and deploy liaison officers in third countries.
The European Commission issued today its opinion recommending the opening of accession negotiations with Iceland following the country's application for membership of the European Union. In the opinion, the Commission acknowledges Iceland's adherence to the common values of the Union, such as democracy, rule of law and respect for human rights. It identifies challenges ahead on the road to accession. Following today's recommendation by the
Commission, it is now for the Council of the European Union to decide on the opening of accession negotiations with Iceland.
* State aid: Commission authorises the German Land Saxony (Sachsen) to partially compensate farmers for damages caused by carnivores
The European Commission has today authorised the German Land Saxony to grant aid of up to 80% to farmers for damages caused by carnivores. It is the first time the Commission allows such aid. The possibility to grant compensation for damages caused by carnivores is not foreseen in the current State aid legislation. The scheme was therefore approved directly under the provisions of the Treaty. The authorised aid scheme has a total budget of € 200,000 and will run until the end of 2013.
Other news
* EIB, European Commission welcome report on EIB external lending
The European Commission and the European Investment Bank today welcomed the final report into the EIB's external financing activity by a committee of “wise persons” chaired by former International Monetary Fund Managing Director Michel Camdessus. The report proposes an extra two billion euros of EIB loans for projects that further the fight against climate change and makes a number of recommendations for improving EIB activity outside the European Union. It also suggests for further study longer-term options for consolidating the EU’s external financing instruments.
* Erasmus for Young Entrepreneurs” to boost creation of small enterprises
Are you thinking about setting up your own business or are you already a successful entrepreneur? The Erasmus for Young Entrepreneurs exchange scheme offers an excellent opportunity for new entrepreneurs to acquire relevant skills for managing a small or medium-sized enterprise (SME). The new entrepreneurs will learn how to manage an SME as well as getting familiar with the business environment in another EU country by working with an experienced entrepreneur. “Erasmus for Young Entrepreneurs” was launched by the European Commission in February 2009.
* Industrial new orders up by 0.8% in euro area
In December 2009 compared with November 2009, the euro area (EA16) industrial new orders index rose by 0.8%, after +2.7% in November. In the EU27 new orders increased by 0.6% in December 2009, after +2.4% in November3. Excluding ships, railway & aerospace equipment, for which changes tend to be more volatile, industrial new orders fell by 0.4% in the euro area and by 0.8% in the EU27 in December.In December 2009 compared with December 2008, industrial new orders increased by 9.5% in the euro area and by 6.3% in the EU27. Total industry excluding ships, railway & aerospace equipment4 rose by 8.1% and 5.5% respectively.Compared with 2008, the average new orders index for 2009 fell by 22.6% in the euro area and by 21.9% in the EU27. These estimates are released by Eurostat.
* Autre matériel diffusé
• Memo Frontex and managing the EU's borders: Frequently Asked Questions
• Memo Justice & Home Affairs Council: 25-26 February 2010 in Brussels
• Memo Statement on press reports on complaints against Google
• Memo on Key findings of the Commission's Opinion on Iceland
• Introductory remarks by President Barroso at the joint press conference with the Prime Minister of Spain José Luis Rodriguez Zapatero, Madrid – in Spanish only
• Statement of President Barroso following the meeting with the President of Bulgaria Georgi Parvanov, Brussels
Draft Directive concerning mergers of public limited liability companies - codification Tue, 17 June 2008 | European Legislation Summary
Co-Decision (COD): COD/2008/0009
Latest Stage: 20 Mar 2009 - Council adoption The Council approved the outlined Directive.
Next Stage: The proposal is awaiting signature by the European Parliament and the Council.
Initial Proposal : 29 Jan 2008 In line with the objectives of simplifying and clarifying Community law laid down by the interinstitutional agreement reached on 20 December 1994, the Commission and the Council decided to codify the Community law.
This proposal aims at codifying the Third Council Directive 78/855/EEC of 09/10/78 concerning mergers of public limited liability companies.
This Directive shall enter into force on 1 January 2009.
Opinion of the EESC: 12 Mar 2008 The Commission decided to consult the European Economic and Social Committee (EESC). The Committee adopted its opinion in which it expressed its support for the objective of the outlined Directive and welcomed the overall proposal.
EP report: 29 May 2008 JURI adopted the report by Ms Geringer de Oedenberg by a vote of 20 for to none against, with none abstaining. The rapporteur recommended that the EP adopted the text in plenary without amendment.
- Read the full report
EP opinion: 17 Jun 2008 The EP in plenary adopted the report by Ms Geringer de Oedenberg MEP by a vote of 635 for to 12 against.
Key Contacts Initiative: Legal Service Commissioner Responsible: Commissioner Barroso EP Committee Responsible: Committee on Legal Affairs (JURI) Rapporteur Responsible: Ms Lidia Geringer de Oedenberg MEP
Quick References Initial Proposal : 29 Jan 2008 (ref: COM(2008)0026) Opinion of the EESC: 12 Mar 2008 (ref: EESC/2008/486/) EP report: 29 May 2008 (ref: A6-0236/08 & PE 407.763) EP opinion: 17 Jun 2008 (ref: T6-0267/2008 )
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Common system of VAT as regards the rules on invoicing Wed, 28 January 2009 | European Legislation Summary
Consultation (CNS): CNS/2009/0009
Latest Stage: 11 Dec 2009 - EP report The rapporteur for the ECON Committee, Casa David, has drafted a response to the proposal, for the committee’s consideration.
The rapporteur expresses concerns regarding the impact the proposal may have on smaller member states and the way certain controls are performed. He advises against imposing strict invoice rules, such as the requirement for registered retailers to use fiscal cash registers approved by tax authorities in order to issue receipts. He also suggests giving tax authorities the option of requesting additional formal requirements for simplified invoices.
The report warns that the requirement to hold a valid invoice in order to allow for the right of deduction and duty to issue VAT invoices for exempt cases could create difficulties international trade and businesses operating outside of the EU.
Requirements for the ECB to use daily rates in cases that invoices are issues in a currency other than that of the Member State in which tax is payable could be equally be burdensome, it is stated.
The rapporteur suggests that in certain cases the issue of invoice should be subject to the rules applying in the supplier’s Member State, in order to reduce the burden on suppliers. It is also stated that where suppliers did not have an establishment in the Community from which a supply was wade, the issue of invoice should not be subject to the rule currently under consideration.
The customer VAT ID-No for domestic suppliers should add additional burdens, the report finds.
The rapporteur advocates greater support for Member States currently introducing new IT technologies for tax.
Next Stage 17 Mar 2010: The Economic and Monetary Affairs Committee (ECON) is due to consider the draft report from the rapporteur.
Initial Proposal : 28 Jan 2009 Council Directive 2001/115EC ("Invoicing Directive”) already introduced common EU rules on VAT invoices. However, further modernisation and amendments are needed in order to harmonise the set of rules that simplifies the invoicing requirements for business whilst allowing tax administrations effective means of ensuring that tax is paid. Greater harmonisation is also needed in the field of e-voicing and VAT fraud.
The Invoicing Directive which is now incorporated in Council Directive 2006/112/EC (“VAT Directive”) did not fully meet stated objectives. Therefore, this proposed action is an amendment to the VAT Directive in order to widen the existing framework to address the shortcomings of provisions on invoicing.
The proposed text complements the Commission proposal with regards to the timeframe for recapitulative statements by simplifying the rules on the chargeability to tax for intra-Community supplies. The aim is to create a single date on which the tax becomes chargeable.
The proposal is also aimed at introducing equal treatment between the requirements of the supplier to issue an invoice and the customer to hold an invoice in order to exercise this right of deduction. Furthermore, the proposal suggests extending the optional cash accounting simplification measure to all Member States. The scheme is applicable to all micro enterprises with an annual turnover less than EUR 2 million.
It is further proposed that a concession should be made for the recipient of supplies where the supplier only accounts for VAT on receipt of payment.
The Commission suggest creating a set of harmonised rules for Business to Business invoices seeking that a taxable person issuing an invoice from where he is identified for VAT, will have legal certainty that the invoice is valid throughout the EU.
In addition, the text proposes to harmonise the invoice rules where there is currently divergent treatment such as exempt supplies and time limits for issuing invoices.
In view of the content of an invoice, the proposal intends to create a two tier system of invoicing.
Firstly, the compulsory full VAT invoice will contain an extensive set of details for B2B supplies when there is the likelihood that the customer will be exercising a right to deduction, the supplier has a right of deduction at the preceding stage or for a cross border supply.
Secondly, there is the option for a simplified invoice.
The proposal outlines three notable changes as regards the full VAT invoice. The only addition to the simplified VAT invoice is the requirement to include the value of the type of goods or services supplied.
Moreover, the proposal aims to end any legal barriers to e-invoicing contained in the VAT Directive by treating paper and electronic transmission of invoices equally.
Lastly, the draft proposal sets out a common EU time period of 6 years for which invoices must be stored. Businesses will be allowed to convert paper invoices into electronic form for storage purposes.
This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
Annexed Documents: 28 Jan 2009 The Commission has annexed the following document in the procedure:
- SEC(2009)3004
Opinion of the EESC: 10 Jun 2009 On 27 February 2009 the Council decided to consult the European Economic and Social Committee (EESC).
Welcoming the proposed measures, which are streamlined and in line with the principles of good administration, the EESC has serious reservations regarding the excessive freedom given to Member States to decide whether or not to adopt a number of provisions. The EESC argues that but Member States' reluctance to adopt these rules could be due to differences in levels of sophistication of administrative procedures or legislative inflexibility. This would result in a slowing down progress towards harmonisation as well as increased red tape for business.
The Committee also finds that the proposals on invoicing are detailed and very technical contributing to the achievement of the overall purpose of this Directive.
In addition, the EESC has serious reservations on the proposal to give other Member States' authorities access to the invoices stored electronically by operators. It points out that his would go beyond the principles of administrative cooperation and is not legally justifiable.
Council debate: 20 Oct 2009 The Council is expected to debate or examine the proposal.
EP opinion: 19 Apr 2010 A vote by the European Parliament in pleanary on the report yet to be submitted by the ECON Committee is scheduled for April 2010.
Key Contacts Initiative: Taxation and Customs Union DG Commissioner Responsible: Commissioner Kovács EP Committee Responsible: Committee on Economic and Monetary Affairs (ECON) Rapporteur Responsible: Mr David Casa MEP
Mandatory Consultation EP Committee: Committee on Legal Affairs (JURI) Rapporteur: Ms Alexandra Thein MEP
Quick References Initial Proposal : 28 Jan 2009 (ref: COM(2009)0021 ) Annexed Documents: 28 Jan 2009 Opinion of the EESC: 10 Jun 2009 (ref: CES1039/2009 ) Council debate: 20 Oct 2009 EP opinion: 19 Apr 2010
Draft Directive on integrated pollution prevention and control - recast Fri, 29 January 2010 | European Legislation Summary
Co-Decision (COD): COD/2007/0286
Latest Stage: 15 Feb 2010 - Council common position The Council adopted its position at first reading on 15 Februray 2010 with a view to the adoption of the amended IPPC Directive.
The Council decided to aproved 44 amendments to the Commission proposal wholly, in part or in principle as adopted by the European Parliament. It cannot accept the other 41 amendments because their added value was unclear or because they were not consistent with other parts of the Council's position at first reading.
In addition to that, the Council wishes to include a number of changes, notably cahnges to reflect the entry into force of the Treaty on the Functioning of the EU in order to clarify the text and to ensure the overall coherence of the draft Directive.
- Read the full common position
Next Stage 07 Apr 2010: The ENVI Committee is expected to hold a vote on the report in April 2010.
Initial Proposal : 21 Dec 2007 The Commission is seeking to put in place a Council Directive on industrial emissions (integrated pollution prevention and control - 'IPPC Directive').
This proposal is aimed at recasting the following separate legal instruments into one single legal act:
• Council Directive 78/176/EEC of 20 February 1978 on waste from the titanium dioxide industry; • Council Directive 82/883/EEC of 3 December 1982 on procedures for the surveillance and monitoring of environments concerned by waste from the titanium dioxide industry; • Council Directive 92/112/EEC of 15 December 1992 on procedures for harmonizing the programmes for the reduction and eventual elimination of pollution caused by waste from the titanium dioxide industry; • Council Directive 96/61/EC of 24 September 1996 concerning integrated pollution prevention and control ("IPPC Directive"); • Council Directive 1999/13/EC of 11 March 1999 on the limitation of emissions of volatile organic compounds due to the use of organic solvents in certain activities and installations ("VOC Solvents Directive"); • Directive 2000/76/EC of the European Parliament and of the Council of 4 December 2000 on the incineration of waste ("Waste Incineration Directive"); • Directive 2001/80/EC of the European Parliament and of the Council of 23 October 2001 on the limitation of emissions of certain pollutants into the air from large combustion plants ("LCP Directive");
The new IPPC Directive will review and bring together in one text the abovementioned seven existing Directives on industrial emissions.
As part of the Lisbon Agenda, the Sixth Community Environment Action Programme, and the EU Sustainable Development Strategy and the Better Regulation Agenda, the Commission insisted on the necessity to adopt an integrated approach.
The new IPPC Directive seeks to prevent and control, in a coordinated way, pollution of the air, water and soil resulting from emissions from industrial installations. It regulates emissions of a wide range of pollutants, including sulphur and nitrogen compounds, dust particles, asbestos and heavy metals; however, emissions of carbon dioxide are not covered by the IPPC. The Directive is aimed at improving local air, water and soil quality, not at mitigating the global warming effects of some of these substances.
In order to reduce the industrial pollution, the Commission has encouraged the implementation of Best Available Techniques (BAT) and the creation of BAT reference documents (BREFs).
The adoption of the proposal will lead to the repeal of the seven Directives mentioned above.
This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. This Directive is addressed to the Member States.
Annexed Documents: 21 Dec 2007 The Commission decided to enclose the following documents:
- SEC(2007)1679
- SEC(2007)1682
- SEC(2007)0843
Opinion of the CoR: 09 Oct 2008 The Committee of the Regions (CoR) delivered its opinion and welcomed overall the proposal seeking to reduce industrial emissions.
Nevertheless, the CoR expressed its concern that the Directive might not be ambitious enough, in particular with regards to the weak emissions limit value for large combustion plants.
In addition, the CoR criticised the remaining significant difference between the emission limit values contained in the proposal and those set out in the “Best Available Technique Reference” (BREF) document for large combustion plants.
It further recommended the inclusion of a practical revision system.
The CoR also disagreed with the proposal to set-out criteria for granting derogations on the basis of local conditions under the comitology procedure.
Opinion of the EESC: 14 Jan 2009 The European Economic and Social Committee (EESC) has responded to the proposal.
The EESC agrees on the following objectives of a revision of the text:
• transparency; • consultations with the relevant stakeholders; and • a sound cost-benefit balance and compliance with the principle of equity and solidarity in sharing efforts among the Member States.
The EESC proposes that the non-profit association, the European Union Network for the Implementation and Enforcement of Environmental Law (IMPEL network) could help to enhance the implementation of the existing Directive.
The EESC welcomes the official translation of the BREF documents into the EU languages aimed at ensuring a more effective application of the Directive at national level. In cooperation with the Seville IPPC office, steps must be taken to ensure that diverging views are not built into the BREFs, as this would undermine the coherence and relevance of these documents at European level, the Committee argues.
EP report: 22 Jan 2009 The Committee on Environment, Public Health and Food Safety (ENVI) adopted the report drawn up by Holger Krahmer by a vote of 43 to 10 and 5 abstentions.
Supporting the overall strategy of the Commission draft proposal, the rapporteur Holger Kahmer proposed a number of amendments to strengthen and ensure the implementation of the proposal. The 80 amendments adopted seek to strenghten the existing rules on emissions, but at the same time allow for flexibility based on best available techniques and taking account of local circumstances.
The rapporteur proposed that the Commission should offer guidance on 'equivalent nitrogen excretion factors' as regards poultry farms.
Considering the Commission’s proposed provisions for limit values which should be determined directly on the basis of the BAT reference documents, the rapporteur questioned its workability in practice. Therefore he proposed the setting-up of a comitology committee which would lay down measures to limit emissions in the form of minimum requirements and which would form a European safety network.
Furthermore, the rapporteur aims to strengthen Parliament’s role in connection with future amendments of non-essential provisions of the directive in order to take due account of the views of external experts and to ensure transparency.
The proposal is aimed at reducing administrative expenditures in cases where the likely environmental benefits do not justify the costs.
- Read the full report
Council debate: 02 Mar 2009 The Environment Council held a public exchange of views on the recast of the Directive of the integrated pollution, prevention and control (“IPPC Directive”). The following expressed views are meant to guide the preparation of a political agreement which is due to be held at the next Environment Council meeting in June.
Firstly, a number of delegations advocated strengthening the role of European BAT reference documents (BREFs) in determining permit conditions, notably regarding emission limit values. In this context, delegations called for more transparency in the setting of emission limit values.
Whilst some delegations are in favour of Parliament’s proposal to introduce minimum requirements for further activities, others expressed their concern that this could lead to
negative effect on the environment. In addition, concern regarding a possible increase of administrative burden has been expressed by ministers.
As regards combustion plants, some delegations welcomed the proposal intending to bring emissions from existing large combustion plants (including power plants) into line with current BAT by 2016. Other criticized the cost of retrofitting existing installations and expressed concern that the investment involved could have an impact on security of energy supply.
Furthermore, they requested longer phase-in of BAT and certain transitional flexibility.
Lastly, a large number of delegations disapproved the Commission’s view that benefits would justify the costs of extending the scope of the Directive to include combustion plants with a rated thermal input of between 20 and 50 MW.
Commission opinion: 10 Mar 2009 The Commission partly approved the amendments adopted by the European Parliament under the co-decision procedure at first reading.
EP opinion: 12 Mar 2009 Parliament adopted the legislative resolution with 402 votes in favour, 189 against and 54 abstentions at first reading.
Council political agreement: 25 Jun 2009 The Council reached political agreement with a view to the subsequent adoption of a common position concerning the recast of the outlined Directive.
The Council discussed the issues of large combustion plants (LCPs), i.e. power plants, combustion installations in oil refineries and the metal industry.
It agreed to apply current Best Available Techniques (BAT) to new LCPs within two years after the entry into force of the Directive which will be earlier than the Commission originally proposed.
Accordingly, existing LCPs would have to apply current BAT from 2016, but the political agreement foresees a transition period: until the end of 2010, Member States may define transitional national plans capping emissions of certain pollutants, ministers agreed.
Combustion plants firing indigenous coal or lignite which cannot comply with the emission limits for SO2, can alternatively apply the minimum rate of desulphurisation (rate remains at 96% for LCPs).
Lastly, the agreement contains provisions concerning LCPs with specific characteristics that are crucial to energy security in some Member States.
The Council has revised the procedure for adopting a more prominent role for European BAT Reference Documents (BREF) in order to ensure that they are available in all official EU languages. Once a new BREF has been issued, relevant permits must be updated within five years, the Council has ruled.
EP report: 10 Nov 2009 Rapporteur Holger Krahmer has drafted a report for the consideration by the ENVI Committee for second reading.
The document has yet to be released.
EP opinion: 06 Jul 2010 The European Parliament in plenary is due to consider the report yet to be submitted by the ENVI Committee, and to possibly adopt it at second reading at its forthcoming July session.
Key Contacts Initiative: Environment DG Commissioner Responsible: Commissioner Dimas EP Committee Responsible: Committee on Environment, Public Health and Food Safety (ENVI) Rapporteur Responsible: Mr Holger Krahmer MEP
Quick References Initial Proposal : 21 Dec 2007 (ref: COM(2007)0844 & C6-0002/2008) Annexed Documents: 21 Dec 2007 (ref: SEC(2007)1679; SEC(2007)1682; COM(2007)0843 ) Opinion of the CoR: 09 Oct 2008 (ref: COR/0159/2008) Opinion of the EESC: 14 Jan 2009 EP report: 22 Jan 2009 (ref: PE407.661 & A6-0046/2009 ) Council debate: 02 Mar 2009 (ref: 7042/1/09) Commission opinion: 10 Mar 2009 (ref: COM(2007)0844) EP opinion: 12 Mar 2009 (ref: T6-0093/2009 ) Council political agreement: 25 Jun 2009 (ref: 11259/09) EP report: 10 Nov 2009 (ref: PE430.626 ) EP opinion: 06 Jul 2010
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European Investment Bank - EIB delivers unprecedented lending volume Thu, 25 February 2010 | European Institutions (Other) Contents BEI/10/24
25 February 2010
European Investment Bank delivers unprecedented lending volume
The European Investment Bank (EIB) increased its total lending volume in 2009 to EUR 79bn, a 37% rise from EUR 58bn in 2008. This represents a new milestone in providing financial support for the European economy.
Last year, the EIB reinforced its focus on (i) small and medium-sized enterprises (SMEs), (ii) economically weaker regions across Europe (“convergence regions”) and (iii) the energy sector in the context of the fight against climate change.
“The EIB has proven to be a solid pillar of financial strength and stability in last year’s exceptionally difficult economic environment. The Bank was committed to achieving ambitious targets in 2009. It delivered and exceeded these. We have done more, better and faster and clearly demonstrated that we can make a significant contribution to the European economy” , EIB President Philippe Maystadt said.
In 2009, the EIB provided EUR 13bn in credit lines to intermediary banks for targeted lending to SMEs , an increase of 55% compared to the year before. More than 75% of the EUR 21bn signed in 2008-2009 was disbursed to intermediary banks by the end of 2009 (EUR 16bn)
and 90% reached the ultimate SME beneficiaries (more than 50 000 SMEs across Europe in 2009).
Lending activities in convergence areas amounted to EUR 29bn (a 36% increase from EUR 21bn in 2008) accounting for 37% of the Bank’s total lending volume. The lending was geographically well-balanced across the EU, with the new Member States receiving EUR 13bn.
The third priority – the fight against climate change – resulted in almost EUR 17bn of loans for projects contributing to the reduction of the volume of CO 2 emissions, including renewable energy (EUR 4.2bn), energy efficiency (EUR 1.5bn), R&D for cleaner transport (EUR 4.7bn) and investments in urban transport (EUR 5.5bn).
Although the EU countries accounted for the lion’s share of EIB lending in 2009 (over EUR 70bn or 89% of the total volume) the Bank also provided significant financial support to countries outside the EU.
The Bank remains financially very strong and raised more than EUR 79bn on the capital markets, benefiting from an excellent credit standing and sound funding strategy in exceptionally turbulent times.
Note for the editor
The European Investment Bank was created in 1958 by the Treaty of Rome as the long-term lending bank of the European Union. The main task of the Bank is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Besides supporting projects in the Member States, its lending activities also include financing investments in future Member States of the EU and EU partner countries. The EIB raises substantial volumes of funds on the capital markets, which it lends on favourable terms to projects furthering EU policy objectives. The Bank's consistent AAA rating is underpinned by firm shareholder support, a strong capital base, exceptional asset quality, conservative risk management and a sound funding strategy.
For further information, kindly refer to the briefing notes available at www.eib.org/about/events/annual-press-conference-2010.htm
Pascal Lamy: the WTO system withstood the crisis (Committees) External/international trade - 24-02-2010 - 12:15 Download the article in PDF format
Taking the Doha trade liberalisation negotiations to their endgame and monitoring trade protectionism are among the main 2010 objectives of the World Trade Organization, the WTO director-general Pascal Lamy told MEPs on Tuesday.
"The WTO system has resisted the crisis and it should emerge strengthened from its first really serious stress test", Mr Lamy told the EP International Trade Committee.
Parliament's new powers
Mr Lamy said he was happy about the considerable new powers Parliament had gained in the field of international trade with the entry into force of the Lisbon Treaty. This would strengthen the hand of the Union in trade negotiations and make them more democratic but it would also mean greater responsibility for MEPs, he added.
Risks of a jobless recovery
"Now we are starting to see a recovery of trade flows", said Mr Lamy, but "small businesses and regions such as Africa still need attention". The WTO had not seen developed countries withdraw from their "aid for trade" commitments and "governments largely kept markets open", he added. However, there was still a danger of a "jobless recovery igniting protectionist measures".
The Doha endgame
On the Doha trade liberalisation negotiations, Mr Lamy said "despite very strong headwinds we last year managed to keep the boat sailing". He believed the successful banana deal between EU and Latin American producers could give impetus to the Doha talks. He expressed his hope that in 2010 the Doha round can be taken "to the endgame".
Other WTO goals for this year were to keep an eye on trade finance, to monitor trade protectionism and aid for trade commitments, to continue the 30 ongoing WTO accession negotiations and to ensure that trade can play its part in the recovery.
Agriculture, food security, fisheries
To questions on the agriculture and food crises by Georgios Papastamakos (EPP, EL), Yannick Jadot (Greens/EFA, FR) and Helmut Scholz (GUE/NGL, DE), Mr Lamy stressed the political reality that the US and the EU would keep their farm subsidies and that the subject of agriculture in the Doha round "will remain full of specificities". There was a need to open trade in agriculture to resolve food security issues, he added.
In reply to David Martin (S&D, UK), he said there was no need for a new definition of the term "developing countries" but it was important to create a fairer trade system. Answering a question by Michael Theurer (ALDE, DE), Mr Lamy underscored that the EU should keep its leadership role in trade negotiations. Fisheries subsidies remained an "extremely sensitive topic", he emphasised.
In the chair: Vital Moreira (S&D, PT)
REF. : 20100223IPR69379 Contact Istvan PERGER
* Telephone number in Brussels : (+32) 2 28 40924 (BXL) * Telephone number in Strasbourg : (+33) 3 881 74845 (STR) * Mobile number : (+32) 498 98 33 30 * E-mail address : [email protected]
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Speech by Viviane Reading - Making the Most of the Internal Market: Concrete EU Solutions to Cut Red Tape and to Boost the Economy Wed, 24 February 2010 | European Commissioner Speech Contents SPEECH/10/42
Viviane Reding
Vice-President of the European Commission responsible for Justice, Fundamental Rights and Citizenship
Making the Most of the Internal Market: Concrete EU Solutions to Cut Red Tape and to Boost the Economy
Figures and graphics available in PDF and WORD PROCESSED
Brussels, 24 February 2010
Good afternoon and thank you for inviting me today.
I'd like to take a few minutes to speak about my new portfolio as Justice Commissioner and how Europe can help its citizens and businesses break out of the economic crisis.
It's a moment of great change for Europe. Our citizens have been watching eagerly for the commission to get to work after months of delay.
The time to discuss institutional issues is over. It's now time to act.
To act, because our Union is facing rising unemployment and slow growth. We can't sit by as unemployment reaches 10 percent, government deficits soar and businesses struggle in an increasingly competitive and globalised economy.
The only way out for Europe, is to strengthen the single market. But the single market is far from being completed. There are still far too many cross-border problems that prevent businesses and citizens from benefiting from the single market . These problems were highlighted for the first time, in 2008, in a brilliant report by Alain Lamassoure called "Le Citoyen et L'Application du Droit Communautaire.''
The negative facts are there. But the good news is that now we have the instruments to tackle them. We now have the tools to make a real difference in citizens' lives. With the entry into force of the Lisbon Treaty on 1 December 2009, we now can tackle real barriers that prevent people from taking full advantage of their rights – especially their right to free movement.
For businesses, (particularly small- and medium-sized businesses that are the engines of our economic growth), we must do better to reduce bureaucratic barriers which add to lack of efficiency and unnecessary costs.
I'm here to discuss three concrete measures that will help ease citizens' lives and make a true difference to businesses. These are practical solutions to real-life problems: First, getting a court judgement recognised without unnecessary legal fees; second , recovering debts and third , boosting on-line commerce and smoothing differences in contract law.
As Justice Commissioner in charge of civil and commercial law, I'm committed to proposing sound EU legislation to overcome bureaucratic obstacles and to reduce transaction costs.
The first priority for me is cutting red tape .
EU rules allow for court judgements in one Member State to be fully recognised in another country. That's the rule, but the practice is rather shocking. Companies have to pay up to 2000 euro in additional legal costs when they want to have a legal judgement recognised in another EU country. This costly and cumbersome exequatur process burdens companies without providing any additional legal security. In more than 90 percent of the cases, this procedure is a pure formality.
Of course, we need some safeguards, but citizens and businesses should not be burdened with pointless and costly formalities. I will propose to abolish the exequatur whilst maintaining the safeguards.
My second priority is helping companies recover debts . At the moment, debtors can easily move funds from a bank account in one EU country to another. A creditor, however, has no way of blocking debtors' bank accounts to have them pay their bills. As a result, companies recover only 37 percent of cross-border debts.
Businesses won't trust our single market if more than 60 percent of debt remains unrecovered. The European Commission plans to make a proposal that will allow a creditor to block funds in a bank account.
The new European procedural tools for simplifying cross-border debt-recovery must be fully exploited. Real progress has been made in removing barriers to cross-border debt recovery: The European Payment Order – available since December 2008 – applies to non-contested claims and the European Small Claims procedure – available since January 2009 – deals with claims below €2000.
The European Small Claims procedure is a remarkable tool. It offers citizens and businesses across the EU a speedy and affordable civil procedure that is uniform in all Member States and in all procedural steps, from the start of the procedure to the final enforcement of the judgment. It introduces standard forms and time limits to speed up litigation, whilst not requiring the assistance of a lawyer.
The procedure could be implemented electronically through the European Judicial Portal. The challenge is to publicise these tools to ensure effective take-up and implementation. This would then act to reassure citizens and small businesses involved in cross-border transactions. A remaining question is whether to raise the €2000 threshold.
Insolvency proceedings increase during an economic crisis and should be organised in an efficient way to help the recovery.
A review of the Regulation on cross-border insolvency is needed to ensure that the length, complexity and cost of cross-border proceedings are cut to the minimum necessary. This
would help both creditors and debtors. We should simplify dealings with cross-border groups of companies to avoid the current confusing situation. Practical measures such as the interconnection of insolvency registers through the e-Justice portal can also play an important role.
My third priority is to ease cross-border transactions .
Business-to-consumer relationships are complicated by 27 different regimes for contractual relations. That means that a consumer may be able to return a defective product for a full refund within 15 days of the sale in one country, whilst a consumer in another nation may get three months.
The general terms and conditions for business-to-consumer relations are a huge burden for small companies. The EU needs to do better. A possible solution is to have a 28th regime for contracts. Such a European Contract Law would exist in parallel to the national contract laws and provide standard terms and conditions. The United States started with a uniform commercial code to become a globally competitive economy. Why couldn't we have, in the end, a European civil code for our single market?
Jacques Delors once said that nobody falls in love with the single market. Sadly, one of the EU's main problems is that citizens don't see the benefits of the single market – the crown jewel of our Union's integration.
In the justice field, it's clear that the single market can do much better for reducing costs for companies. How can the EU make life easier for companies with cross-border businesses? The answer is simple : We must put the single market at the service of EU citizens. To reach this goal, I have three priorities: Cutting red tape , helping companies recover debts and easing cross-border transactions.
In that way, we could fall in love with our single market!
Another possibility is to harmoni se different contract laws that would give a high level of consumer protection. What's important is legal certainty. Businesses must know what the law is if they operate across the 27-nation EU.
Much has been said about the sad state of Europe's single market for on-line services. Businesses are not taking advantage of the power of the internet to boost sales. In 2008 only 7 percent of transactions over the web were cross-border in nature. This unacceptably low figure is partly explained by the results of an EU-wide test of 11,000 cross-border transactions which revealed that 61 percent of cross-border transactions fail largely because the on-line shops refuse to serve the consumer's country.
The proposed Consumer Rights Directive is therefore deliberately ambitious. The current status quo of minimum harmonisation in the existing consumer protection directives does not come close to establishing a real single market for businesses and consumers.
It's imperative that the co-legislators move swiftly to reach an agreement on this important law, which must balance businesses' need for legal certainty with a guarantee for the highest level of consumer protection.
The European Parliament is studying the legislation now and I'm willing to work with Member States and Parliament to get this crucial legislation into force.
The Commission supports a maximum level of harmonisation of consumer rights laws across the EU. This regime will give businesses the certainty they need to sell products anywhere in the EU.
Another important cross-border issue arises when citizens drive to another member state and are unfortunate enough to have an accident. Businesses are also confronted with legal uncertainty because of cross-border claims.
There are more 500,000 cross-border road accidents a year in Europe. EU law has helped resolve which country's law applies to those accidents, but citizens are confronted with massive confusion with insurance claims. They may have a short time period to file a claim . The Commission could harmonise these limitation periods for liability, giving consumers and businesses more legal certainty.
Finally, the increased use of alternative dispute resolution, (or, in short, ADRs), can contribute to the efficient administration of justice. ADRs are usually faster and cheaper than ordinary court proceedings. They can be important contributors to getting the most out of the single market. It's clear that on-line ADRs could offer particular advantages in a cross-border context.
As I start my new position as Justice Commissioner, let me assure you that President Barroso shares the same goal of bringing the EU closer to its citizens. That's why he created the new portfolio for Justice, Fundamental Rights and Citizenship. I look forward to working with you as I make these concrete proposals to put our economy on the path to recovery.
