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Lombardia Regional Operational Programme

2008-05-18T11:54:00.002+01:00

Italy – Operational Programme 2007-13: Lombardia Regional Operational Programme

1. Operational Programme “Lombardia Regional Operational Programme” – Programme under the Regional Competitiveness and Employment Objective, co-funded by the European Regional Development Fund (ERDF)
[ Figures and graphics available in PDF and WORD PROCESSED ] [ Figures and graphics available in PDF and WORD PROCESSED ]
2. Overview
On 1 August 2007, the European Commission approved a Regional Operational Programme for the region of Lombardia in Italy for the period 2007-13. The Operational Programme falls within the framework laid out for the Regional Competitiveness and Employment Objective and has a total budget of around €532 million. Community funding through the European Regional Development Fund (ERDF) amounts to some €211 million, which represents approximately 0.7% of the total EU investment earmarked for Italy under the Cohesion Policy for 2007-13.
3. Aim and purpose of the programme
Lombardia's Operational Programme will be an important tool in the realisation of the objectives laid down in the revised Lisbon strategy for growth and jobs, as it allocates more than 68% of its total budget to this end. The Programme will play a key role in:
Boosting competitiveness through research and innovation;
Reducing carbon emissions through the promotion of renewable energy and energy efficiency;
Supporting sustainable mobility;
Enhancing the attractiveness of the region with a particular focus on cities, environmental and cultural promotion.
4. The expected impact of the investments
The programme will ensure creation of about 1800 direct new jobs. With regard to energy development and usage the region, the program aims to decrease CO2 emissions into the atmosphere by 50 000 ton per year by 2013.
5. Priorities
The Operational Programme is structured according to the following priorities:
Priority 1: Innovation and knowledge economy [approximately 49.4% of total funding]
The priority is centred on regional research and innovation with particular focus on promoting a favourable environment for this area as part of the so-called “Lombardy knowledge system”. It will support cooperation between small and medium-sized enterprises (SMEs), research centres and “poles of excellence”. The intention is to work towards creating a network of existing centres as opposed to creating new ones while simultaneously strengthening regional governance and supporting private Research and Development (R&D) and ICT demand.
Priority 2: Energy [approximately 9.4% of total funding]
The priority aims both to reduce energy consumption and to increase energy production from renewable energy in an effort to significantly reduce atmospheric pollution and climate-changing emissions.
Priority 3: Sustainable mobility [approximately 26.1% of total funding]
The priority aims to increase sustainable mobility by means of modal integration (road, rail and metro) and by encouraging the widespread use of forms of transport which have a reduced environmental impact (car pooling, car sharing, road pricing, etc.)
Priority 4: Protection and enhancement of natural and cultural heritage [approximately 11.3% of total funding]
The priority aims to attract tourism and exploit the potential of those parts of Lombardy whose natural and cultural assets are not yet widely-known.
Priority 5: Technical assistance [approximately 3.8% of total funding]
There is also provision for technical assistance to implement the programme. Financial support is available for administration, monitoring, evaluation and control.
6. Managing Authority: Unità Organizzativa Competitività del Sistema delle Imprese della Direzione Generale Industria, Piccola Media Impresa e Cooperazione – Milano, Italy

Commissaire européen au Développement et à l'Aide humanitaire

2008-05-18T11:53:00.001+01:00

CSR Europe – GAIN Working Lunch on Base of the PyramidBruxelles, le 8 mai 2008

Ladies and Gentlemen,

It is a pleasure for me to be with you today for an exchange on such an exciting subject matter as the Base of the Pyramid.
This is so for two reasons:
First because it is extremely important that business, not the least, have started to opt for new ways of looking at doing business with and in developing countries and in dealing with poverty situations.
Second, because this happens in a context where donors and developing countries have realized that public intervention can only be a part of the solutions for the multiple problems with which developing countries and their populations have to cope.
Indeed, several decades of development aid did not bring the results we hoped. Donors, including the Commission, concluded that we could not go on in the way we did. Therefore we took a number of important decisions over the past years, both at the international and the EU level. Let me briefly go through them :
First of all, in 2000, donors defined specific goals in order to increase the focusing of their aid and to make its objectives more concrete: they adopted the Millennium Development Goals, to be reached in 2015.
Today we know that certain developing countries may reach most or several of these goals, but several countries will not. Many African countries are in this last category.
Second, in 2003, donors committed themselves in Monterrey to increase substantially the levels of financing of aid. At the EU level, Member states committed themselves to increase development aid to 0.7% of their Gross national Income in 2015, with an intermediate objective of 0,51% in 2010. The 2010 objective corresponds to some additional 30 billion euros per year, 90% of which is to come from their national budgets.
Thirdly, the donors adopted in 2005 the so-called Paris declaration in order to make aid more effective :
- better donor coordination
- harmonization of procedures
- alignment on the priorities, institutions and systems of the recipient countries, and to ensure leadership of the recipient country.
Part of the Paris declaration is about increasing sector-wide programmes and increasing budget support.
In order to cope with that on the EU side, the Commission has convinced the Member states in 2005 to agree on development policy and priorities, the so called European consensus; and in 2007 to agree on more and better division of labour at the recipient country level.
All these changes cannot take away the fact that effective results in development will require much more than only public development aid :
What is also needed is a strong role of the private sector as being the most essential engine of economic growth.
This recognition has been at the basis of the global Aid for trade strategy agreed some years ago alongside the ongoing international trade negotiations at the WTO. It was recognized that developing countries needed to overcome many barriers to make their private sectors compete and to attract investments.
Aid for trade is there to tackle the numerous supply side constraints:
infrastructure, transport, energy, water and telecommunications.
The European Commission has been a major donor for infrastructures. It will continue to be so, through the bilateral programmes financed at the country levels and through horizontal initiatives, in particular the EU Africa Infrastructure Trust fund. This Trust Fund was set up with the European Investment Bank. It should help us to leverage even more aid for the building of infrastructures.
Other barriers relate to the business regulatory environment. Many regulations and procedures need to be changed, modernised and simplified, including for customs and other trade facilitation measures.
An important problem is furthermore that the markets in many developing countries are simply too small to make investments attractive. Therefore the creation of larger, regional markets is a must and has been one of the Commission's priorities since quite some time already.
As I have made clear at other occasions, I believe that the Economic Partnership Agreements can play an important role in getting there, in Africa in particular.
Another very important constraint for developing countries, is the lack of skills, at all levels. You also suffer from this constraint to develop your activities. Donors, like the European Commission, can assist in building capacities, but the private sector's assistance is equally indispensable as many of the skills are needed there and need to be adapted to what is required for the private sector's development.
All these constraints are also the background for what you have called the Laboratories on Sustainable Business at the "Base of the Pyramid", also called "BOP" which brings us together today.
These "BOP initiatives" are interesting because: they are looking for opportunities to set up business in a sustainable way, at scales and with approaches adapted to local circumstances. They aim at working with local businesses and partners, also NGOs, in a way to allow them to expand and to structure themselves. These can add much needed value through local production and transformation processes, thus generating jobs and revenues.
What is particular for BOP initiatives, compared to corporate social responsibility initiatives in general, is that they are about business, profitable business. The initiatives are not limited to the food sector and include the development and use of promising microfinance and other financial schemes and institutions.
What is needed to develop these initiatives? It may be that shareholders need additional encouragement to support such initiatives of their companies. And to accept that it requires a more long term approach than they may have been used to adopt, in terms of the time period allowed for profit generation by new business activities.
But, the advantage I see, is: where these initiatives are undertaken, it is to be in the market place for a long time and as solidly as possible; using company and brand names to establish reputations.
Possible role of the European Commission and other donors:
CSR Europe has started discussions with my services on possible synergies and ways to collaborate. Further meetings are planned for June and September. Of course, I welcome and encourage these discussions. The process up to now has been focusing above all on mutual understanding of what each is doing. This takes time because our respective organisations work according to a very different logic. In the Commission, many have been inspired by almost anti-business philosophies. We also have complex procedures...
The meetings of June and September will still be needed to improve on that as well.
But what has already become clear is that many of the constraints which prevent BOP initiatives to be undertaken or to be successful are also the constraints on which the Commission and other donors are working through the programmes they finance :
Be it through private sector development programmes or trade related assistance in order to help facilitating trade and business creation and development,
be it through infrastructure programmes, vocational training programmes or other types of programmes;
be it on governance and public financial management aiming to improve the environment in which people and companies can develop and scale up their capacities and possibilities.
The interventions financed by the European Investment Bank with "donor money" from the European Development Fund, have similar aims where it intervenes to improve access to finance to SME's as well as to participate in the financing of important infrastructures.
The coming meetings at work level must also help us to clarify how public donors and private sector could closer work together.
As I understand it, it goes beyond the simple co-financing of initiatives of the type the Commission already does since a number of years in the field of NGO managed fair trade projects for example.
I see this lunch discussion as an opportunity to explore further the potential for synergies. In this connection, we are of course aware of similar projects financed by USAID for example, which also has financed some BOP initiatives involving US companies.
We will need to clarify a number of issues, including the question whether the Commission is better placed than the EU Member states to engage directly, financially in projects involving specific companies, not the smallest ones moreover.
In that respect, it will also be useful to see what types of initiatives could be proposed by private sector, involving groups of companies for example. And coherence which may be needed between our approach to BOP initiatives and that to other private sector initiatives aiming at sustainable ways of production.
Aspects which are also to be taken into account are the Commission's strive to intervene through larger, sector wide programmes, its wish to play the card of division of labour, not only as between donors but also in the full respect of the comparative advantages of each of the actors, including private sector.
I would like to conclude my intervention by thanking you Mr Davignon and Mr Nadoo for having invited me, and for having provided me with the opportunity to discuss with you on the essential role to play by the private sector in generating growth in developing countries, both through BOP but also initiatives.
I trust that our exchanges and the coming meetings with my services will be fruitful. They should lead to better mutual understanding of our respective roles, and more importantly to achieve a realistic identification of potential synergies.
I am sure that the first draft of the working paper you transmitted to us yesterday will be a useful further contribution to the process you initiated with us.

European Commissioner for Internal Market and Services

2008-05-18T11:51:00.000+01:00

Single Market as a driver for a competitive economy

Speech to Members of the Committees of the Greek Parliament Athens, 16 May 2008

Presidents, Honourable Members of Parliament,

It is a great pleasure for me to be here with you this morning. It is, indeed, an honour for me to be here in the cradle of civilisation and the birthplace of democracy. This is my first visit to Greece as Commissioner for the Internal Market. In particular I am glad to have the chance to listen to your views and experiences about the Single Market and on how it should be taken forward. You have the invaluable experience of being involved in implementing various pieces of EU legislation on national level, and this of course includes Single Market rules. What is more, being members of Committees on Economic, Social and European affairs, you follow and analyse Single Market issues from a range of different angles and perspectives, whether economic, social, national or European. So I am very much looking forward to our exchange of views.
I am going to speak today about competitiveness and the role the Single Market has to play in that context. Competitiveness is very much the overriding objective now. I am sure you deliberate on competitiveness just as often here in your national policy discussions as we do in Brussels. There is a reason for that. Globalisation presents us with a challenge. The rising economic strength of countries such as India or China, means that there is no option for Europe but to do everything it can to remain competitive on the world stage.
The Lisbon Strategy for Growth and Jobs is our comprehensive approach to achieve this. And I am glad to say that after its revision in 2005, the Strategy is now delivering and has contributed to a better and sound economic structure, helping to create growth and jobs and to increase our ability to resist economic turmoil.
To give you some figures that illustrate this: structural reforms have helped increase the potential estimated growth rate of GDP in the euro zone by 0.2 percentage points since 2005, to some 2.25% in 2007. Almost 6.5 million new jobs have been created in the last two years, and another 5 million are expected in the run up to 2010. Unemployment is expected to fall to under 7%, the lowest since the mid 1980s. For the first time in a decade, strong increases in employment have gone hand in hand with robust productivity growth. What all this means is that the Lisbon Strategy is helping to position Europe and European citizens to succeed in the age of globalisation. It means that Europe's economy today is robust .Robust enough – I am confident – to weather even the difficulties triggered by the financial turmoil that we have seen.
The added value of the current Lisbon process is that it is now properly focused on the key issues necessary for growth and jobs and brings together all the necessary reforms in the different fields of macro and micro economic, and employment policies. It also now pulls together the necessary reforms at both national and Community level. Last but not least, it is not a one-off process. Progress at national and Community level is reviewed every year and on this basis, recommendations are given on what needs to be done in the year ahead. This has introduced more transparency and peer pressure. All of this has started to bear fruit. We should keep up the momentum. I can only advise all Member States to continue addressing their Lisbon key challenges as a matter of priority.
This brings me to the Single Market and its role. The Single Market has served Europe well. It has led to more growth and jobs. It also helps Europe's economy to stay competitive in today's globalised world. For example, the work we have done so far in financial services, through the Financial Services Action Plan, has fundamentally changed - and greatly improved - the global competitiveness of the European financial services sector. But the Single Market is not just an economic success. It creates real opportunities for all of us. We can choose whether to live, work or study abroad. We can travel and telephone more cheaply as prices of flights and phone calls have reduced drastically. And we have a bigger choice of better quality goods in our shops.
But there is much work ahead. We have not yet fully realised the Single Market's potential. That is why last November, the Commission embarked on an ambitious review of the Single Market policy. Many of you will remember the 'Europe 1992' programme. This was a visionary programme designed back in 1985, a few years after Greece joined the EEC, which determined to make the Single Market a reality. The Europe 1992 programme focused on integrating European markets, mainly through EU legislation. We have come a long way since. With the Single Market Review, we are now entering a new, but not less ambitious phase. The primary aim is now to make sure that the Single Market works effectively for all. Integrating markets is not sufficient on its own – we must ensure that everyone reaps the benefits, and that everyone is included into the Single Market story. This means not only big business, but also consumers and small enterprises.
Here are some examples of what we will do for both of those constituencies. To begin with consumers: Retail financial services is the first policy area that comes to mind given how essential bank accounts, credit and debit cards or mortgages are to citizens' economic wellbeing. We have launched here an ambitious package of initiatives to make retail financial markets work better for consumers. For instance, I have asked the banking industry to come up with a "code of conduct" to facilitate switching bank accounts between different banks in the same Member State. I have also made it clear that there should be no discrimination against customers on the basis of nationality or residence when opening bank accounts cross-border. I hope that by working with the banking and insurance industry and with consumers we can get good results, without needing to resort to legislation.
As regards SMEs, we will introduce this summer a Small Business Act, which will bring together various SME-targeted measures, such as getting rid of administrative burdens or increasing SME participation in funding programmes. One of the legislative measures I will put forward is a European Private Company Statute. Enterprises that did not qualify under the European (Public) Company Statute –the SE Statute-will now have a tailor-made legal form especially for them. With the European Private Company Statute or SPE, they will be able to carry out their business according to one set of corporate rules across the EU. These measures should encourage SMEs to engage to a much larger extent in cross-border business activities.
However, the Single Market Review is not just about presenting a list of new initiatives. It also focuses on making what we have, work better on the ground. There is a gap between the Single Market as it stands in the Statute book, and the everyday reality. Too often, Single Market rules are not properly transposed, implemented or enforced. And very often there is not enough political awareness and information about the Single Market among the national administrations and citizens.
What we need to improve this situation is a strong partnership between authorities at all levels– at the EU, national but also regional and local levels. This work simply cannot be accomplished from Brussels and by the Commission alone. That is why we have launched discussions with all Member States to identify best practices and agree on common guidelines on how to transpose, implement and enforce Single Market laws; how to spread information on the Single Market; and how to enhance cross-border cooperation between administrations. We count on your involvement in this new initiative.
And we are especially keen to make sure that Member States live up to their legal obligations. The Internal Market Scoreboard is one of the main tools developed in this regard. The most recent Scoreboard of February 2008 showed that although Greece was one of the five Member States with a higher number of untransposed Directives than the 1.5% target, it made very good progress in the last half of the year[1]. Within six months, it cut its backlog from 39 to 27 Directives. My message to you today, however, is that the Greek authorities really need to keep up the good work for the remainder of 2008, particularly because the European Council has now set a new and tougher target for March 2009 of a 1% transposition deficit target.
In addition to this, more work is still necessary when it comes to implementing the Single Market rules properly. Greece is one of 11 Member States with higher number of infringement proceedings than the EU-27 average - although there has been a steady trend of decreasing their number in the last years[2]. I hope that this progress continues and I am looking forward to seeing further improvements in the months to come.
Yet despite these efforts, I think that the Single Market still sometimes suffers from a lack of political attention. National parliaments – such as yours – need to devote their attention to the Single Market. In this respect, I think it is really positive that the Treaty of Lisbon, via the new Article 12, duly recognises the important role of National Parliaments in contributing to "the good functioning of the Union".
And as surveys show, too often citizens and firms are not sufficiently aware of the many opportunities offered by the Single Market. They show that 76% of Greek citizens questioned feel uninformed about their Single Market rights and if they do, they do not know where to turn to if they have a question about their rights or seek to enforce them. For instance, 72% are not familiar with the services put in place to provide information about the Single Market, such as SOLVIT or European Consumer Centres. The situation is fairly similar across the EU. There is a lot more information to be made public also at national level. SOLVIT has been a big success but needs proper staffing and funding to do its job well. Let me say that I believe national parliaments – such as the Hellenic Parliament - can play an important role in helping that citizens can exercise their rights everywhere in the EU.
Last but not least, there is one further element of the Single Market, I would like to mention today - the social angle of our work on the Single Market. There are some who say that the Single Market policy does not take sufficient account of the social dimension. I accept that those who say so express their genuine concerns. But I would like to try to dispel these concerns. The development of the Single Market has gone hand in hand with the development of European social policies and both are mutually reinforcing. What is more, in an effective Single Market, Member States are able to pursue social policy objectives more effectively than without it. For instance, sound public procurement will help reduce pressure on the public purse and make more public funds available for social policy objectives. We need to keep this balance between economic and social policies in the future.
So in conclusion, I believe we can say two things: the Single Market is a key asset for increasing EU's competitiveness and achieving the targets set by the Lisbon Strategy. And the Single Market works for all citizens, consumers and workers. It will deliver even more for Europe's citizens in the future. I hope that we can count on your support in achieving this goal. Thank you for your attention and I look forward to answering your questions.
[1] According to the February 2008 Internal Market Scoreboard: the Greek transposition deficit amounts to 1.7% with 27 Directives which still need to be transposed. This is an improvement as compared to 2.4% deficit and 39 Directives according to the July 2007 Scoreboard.
[2] It has 88 infringement cases for incorrect application of Single Market rules as compared to EU-27 average of 49. Italy and Spain have the worst performance with 134 and 113 cases, respectively. It has improved its performance slightly by one case in comparison with the July 2007 Scoreboard.

European Commissioner for Science and Research

2008-05-18T11:49:00.000+01:00

Responding to Environmental Change: From Words to Deeds

Policy Perspectives on Environmental Research – Conference "Bridging the Gap 2008"
Portorož (Slovenia), 16 May 2008

Ladies and gentlemen,
First of all, my thanks go to the Slovenian Environmental Agency for organising this conference in partnership with the European Environment Agency, the Environment Protection Agencies of the UK and Ireland and the European Commission.
I’m very pleased to be here today, not only to discuss the links between environmental science and policy-making, but also to mark the 10th anniversary of the Bridging the Gap process.
During these last 10 years, the challenge of responding to environmental change has continued to rise to the forefront of policymaking in Europe and globally. Our convictions in this area are due to the dedicated work of many tens of thousands of scientists, policymakers, politicians and members of civil society.
It is the dialogue between these partners - in forums such as Bridging the Gap - that helps us to see ever more clearly the effects of human activities on our world, to create the appropriate policies and to respond with effective action.
In the time available to me today, I’d like to address the themes of this conference and some of the outcomes so far. I also want to give you my perspective as a policy-maker, particularly in the area of the research policy of the EU and its support to wider European goals.
To start with the theme of urgency, as our knowledge has increased, the need to take action has never been more apparent. A clear example can be found in the findings of the 4th Assessment Report of the Intergovernmental Panel on Climate Change, where we learned that:
11 of the warmest years since records began have occurred during the last 12 years;
During the 20th Century, the increase in average temperature was three quarters of a degree Celsius, the sea level rose on average by 17 cm, and that
We are approaching several tipping points in the Earth system, like the melting of the Greenland Ice Sheet, the disappearance of the Amazon rainforest, and the disruption of the African monsoon.
You heard at this conference that we might have already passed one tipping point, so that we will soon loose the Artic summer sea ice.
As global climate change accelerates we are seeing increases in extreme events, such as episodes of extreme rainfall coupled with episodes of serious droughts. Particularly heavy burdens are being placed on the world's most vulnerable regions, raising the prospect of large-scale migration and greater competition and conflict for the Earth's resources.
The effects on biodiversity of climate change and human development are also becoming clearer, although perhaps at a slower rate. To quote my colleague, the Commissioner for Environment, Stavros Dimas: “While climate change takes up much of the media attention, in one fundamental way biodiversity loss is an even more serious threat. This is because the degradation of ecosystems often reaches a point of no return - and because extinction is forever.” At the conference, you pointed out that the consequences of biodiversity loss, are not fully understood. They are most certainly both ecological and economic and closely linked to issues such as climate change, energy, food, and water.
Putting the environment at the heart of economic decision making, is indeed required and has been the second conference theme. Environmental degradation must be internalized in our economic assessments. When the costs and benefits of different policies are weighed against the costs and benefits of inaction, sometimes we are left with little choice but to accelerate policy development and implementation. Again, the field of climate change provides an example in the shape of the well-known report by Lord Stern. A Stern like report on the cost and benefits of maintaining biodiversity is now also under way. I have no doubt that it will be of interest to this debate.
Almost no area of public policy remains unaffected by the state of our knowledge and the commitments that result. This is a direct and happy result of making sustainable development a key facet in the Lisbon Strategy for Jobs and Growth.
To give a few examples:
Implementing our strategies for growth and competitiveness must take into account the effects on soils, water, air quality, biodiversity and health.
Meeting our future energy needs means choosing the investments we choose to make - or not - in renewable energies, in hydrogen and fuel cell technologies and on nuclear fusion and fission technologies;
Setting targets and constraints on industry, such as the CO2 emissions goals for the car industry demands judgements of the effects on competitiveness and growth.
Planning the policies for European agriculture and fisheries require predictions of the state of our environment and climate in Europe and elsewhere in the world.
Our choices also affect our relationships with our international partners. I'm thinking here about our policies on trade, where we compete and cooperate with nations that might make different choices and pursue different actions to our own in Europe.
I also refer to our planning for aid and development. The recent controversy regarding the encouragement of the production of biofuels at a time of increasing food prices and shortages illustrates the difficulty of using the available information and striking the right balances at the right time.
Making the inevitable tradeoffs and choices is a decision for society as a whole. So these policy examples highlight the need for a dialogue between all the actors, which is the third conference theme. I’ve already mentioned the researchers, policy and decision-makers and NGOs that make up the delegates at this event. At the different sessions of this conference the importance of having this dialogue also with our global partners to find workable solutions has been stressed by you several times.
However, the opinions and decisions of ordinary citizens are paramount.
Concerns were raised at the conference that our societies might actually be moving away from sustainable development. We will need to investigate the requirements for systemic changes that will counter this.
Moving from words to deeds will come at a price, although the os twill be much smaller than the cost of inaction. Taxpayers and individuals must choose to participate in whatever sacrifices must be made; hence the need for effective an effective dialogue with a well-informed public.
Also, one does not need to be an economist – as I am – to realise that we would be doing ourselves a disservice if we did not give an audience to the representatives of industry, on whose shoulders rests our future competitiveness and growth.
***
Ladies and gentlemen,
The need for urgency in our actions, which leads to often difficult economic choices, requires effective communication between all elements of society. This fact reinforces the value of what I will call the knowledge-action chain.
We all agree that we must base our policy commitments and our actions on sound science and respond to our best understanding of the situation we are facing. If sound knowledge is a prerequisite, then routine observations and assessments of our planet are not optional.
The knowledge-action chain has developed differently - or not, as the case may be - for the different thematic areas under discussion. Each topic - from information gathering and adaptation to climate change, through to sustainable consumption, energy and biodiversity - is located at a different point, or moving at different rates, along this chain.
So it is in our interest to understand what mechanisms successfully push or pull issues from the research domain to knowledge and eventually to political actions in order to streamline and speed up the process.
To take just one example, we see that after years of promotion efforts from scientists, Adaptation to Climate Change is well situated towards the end of the chain. With the completion of the debate initiated last year, we look forward to concrete plans for action at the end of 2008. On the other hand where would we agree to place biodiversity and ecosystem services along this chain? And how would we explain the differences in the progress of the two areas?
These are questions that I hope that we addressed in this forum.
***
Despite our references to the knowledge-to-action process as a linear one, it is in fact a cyclical one. Following the implementation of any policy, we must perform research, monitoring and assessments to verify the impacts and costs of our actions. As we improve our scientific knowledge, data, models, methods and technologies, we are bound to refine our results in order to improve the effectiveness of our policies.
In this way we continually strengthen the link between science and research on the one hand and policy-making and implementation on the other. Since the last Bridging the Gap conference, the Commission has made progress to achieve this, both in the design and running of our research programmes and in the way we are organised. As I understand, on the first day of the conference, a question was raised whether the Commission links its own research programmes to the policy needs. The answer is clearly yes,
In developing the 7th Framework Programme,
We’ve embedded policy relevant research in all areas of the programme, rather than in a specific thematic area, as previously;
We’ve made the expected impacts of research part of the evaluation criteria for research proposals;
We’ve increased the flexibility in the programme to be able to accommodate unforeseen policy needs, such as responses to epidemics, natural disasters and other emerging concerns;
We ask researchers to consider the socio-economic dimension of their topics and to plan substantial dissemination activities; and
We have tuned the Joint Research Centre work programme to directly respond to needs of policy making in support to sustainability.
In terms of the topics covered within the programme, in the Environment theme, we are currently looking for research that will support European and global commitments. This includes the UN conventions on climate change, biodiversity, desertification, as well the Kyoto and Montreal protocols.
At the same time, the environmental research we sponsor contributes to better implementation of EU policies, such as the 6th Environmental Action Plan and the action plans on Environmental Technologies and Environment and Health. Research related to the EU directives on water, chemicals, clean air and the collection and management of environmental data are supported, as well as for the renewed Sustainable Development Strategy.
To raise another example, achieving Europe's 2020 and 2050 targets on greenhouse gas emissions, renewable energy and energy efficiency will require action on a number of fronts. Research supported by FP7, as outlined in our Strategic Energy Technology Plan, will help ensure that twill down the cost of necessary action and speed up the delivery of solutions.
Looking towards the future, the priorities for our Environment research strategy next year will be the cross-cutting issue of adaptation to climate and environmental change, plus related issues such as sustainable cities and coastal zones. These complex issues will be addressed in a problem-solving and integrated manner, including their socio-economic aspects.
This research will enhance our understanding of processes, limits and trends of the natural and man-made environment and support policy-making with improved tools and indicators. However, twill particularly focus on methods and strategies for anticipating and responding to the huge environmental and societal challenges we face.
***
Ladies and gentlemen,
As I have said on other occasions, humanity is facing an enormous test of its stewardship of the Earth. This test will require all our commitment, resourcefulness and ingenuity, and the European Union is keen to play its part.
To move from words to deeds:
We're strengthening the link between science and policy, to understand and then engage with the dangers that we are causing, predicting and experiencing.
We're sharpening our research, to be ready with solutions and effective tools; and
We're engaging in dialogue, because the hard choices we must make must be the choices of society as a whole.
I believe that the ideas and solutions being developed in this forum are of the greatest value in this endeavour.
Thank you very much.

Midday Express of 2008-05-16

2008-05-18T11:47:00.000+01:00

Hübner welcomes Lombardy's flair for innovation
Danuta Hübner, Commissioner for Regional Policy, visits Milan today to attend a launch event for Lombardy's new 2007-2013 regional programme, which strongly features research and innovation. She will meet Mr Roberto Formigoni, President of the region, the mayor of Milan, Mrs Letizia Moratti, and representatives from the regional government, local businesses, universities and research centres. The Commissioner will also visit EU co-funded projects north-west of Milan.

EU listens to people experiencing poverty to help improve their lives

Around 200 Europeans on the front line of the battle against social exclusion will today meet EU and national policy makers in Brussels for a direct dialogue. They will discuss issues ranging from minimum income to housing, social services and services of general interest. The annual event aims to include marginal groups in the process of seeking solutions and building policies to improve their lives.

Civil Protection: European assistance prepares to leave for China

The Community Civil Protection Mechanism will be sending a team of experts to China on 17 May to help coordinate expert and material assistance from Member States. The Chinese authorities made an official request for assistance following the massive earthquake that struck south-western China on 12 May, and help is being offered by Austria, Germany, Italy, Sweden and Malta.

Euro area external trade deficit € 2.3 billion

The first estimate for the euro area (EA15) trade balance with the rest of the world in March 2008 gave a 2.3 bn euro deficit, compared with +7.5 bn in March 2007. The February 20082 balance was +0.8 bn, compared with -1.6 bn in February 2007. In March 2008 compared with February 2008, seasonally adjusted exports fell by 2.9% while imports remained stable. The first estimate for the March 2008 extra-EU27 trade balance was a deficit of 20.5 bn euro, compared with -10.5 bn in March 2007. In February 2008, the balance was -15.6 bn, compared with -17.5 bn in February 2007. In March 2008 compared with February 2008, seasonally adjusted exports fell by 4.9% while imports rose by 0.3%. These data are released by Eurostat.
First International Carbon Action Partnership forum to be held in Brussels
The International Carbon Action Partnership will hold its first Global Carbon Market Forum in Brussels on 19-20 May, hosted by the European Commission. Launched last October, the International Carbon Action Partnership brings together public authorities that operate or are developing mandatory 'cap and trade' systems for cutting greenhouse gas emissions. By sharing experience and best practices through the International Carbon Action Partnership, different emission trading systems can be made compatible and able to work together as key pillars of the global carbon market that is essential for mobilising investment in low-carbon technologies and projects worldwide. The event will be opened by Mogens Peter Carl, the Commission's Director General for Environment. High level interventions will also be made by Teresa Ribera Rodriguez, Spain's Secretary of State for Climate Change, and Pete Grannis, Commissioner for Environmental Conservation of New York State in the US. Over 150 participants from XX countries will discuss monitoring, reporting, verification, compliance and enforcement - issues that are crucial for the credibility and success of any emissions trading system. The programme is available at http://www.icap-carbonaction.com/docs/ICAP_conference_program_mrvce.pdf

Autre matériel diffusé
• Memo on Italy – Operational Programme 2007-13: Lombardia Regional Operational Programme
• Memo on Brussels debate focused on inter-religious dialogue
• Memo on Preparation Agriculture/Fisheries Council of May 2008
• Speech du Commissaire Špidla 'L'union Européenne dans la lutte contre la pauvreté', Bruxelles - EMBARGO 17 MAI 14H00 –
• Speech by Commissioner Potočnik 'Responding to Environmental Change: From Words to Deeds', Portorož
• Speech by Commissioner McCreevy 'Single Market as a driver for a competitive economy', Athens
• Speech by Commissioner McCreevy 'Development in the field of Company Law', Athens -EMBARGO 16h00 –
• Calendrier hebdomadaire du 19 au 25 mai 2008
• Top News from the European Commission

EU-UEFA campaign to inform EURO 2008 fans about their rights

2008-05-16T07:05:00.001+01:00

Questions and Answers: EU-UEFA campaign to inform EURO 2008 fans about their rights

Why did the Commission and UEFA launch a consumer advice campaign?

The 2008 UEFA European Football Championship ("EURO 2008"), will take place in Austria and Switzerland, from 7 June to 29 June 2008. A total of 16 teams will participate in the tournament.
Many people encounter problems when travelling abroad, from air passenger rights, medical insurance cover, ticketing, roaming charges and shopping – and a major event such as EURO 2008 can only magnify the issue. That is why Commissioner Kuneva is teaming up with UEFA President Michel Platini to ensure football fans / consumers know their rights – and how to enforce them. The aim of the campaign is to ensure that consumers, who also happen to be football fans travelling to Austria and Switzerland, are fully informed of their rights and how to use them.

What does the campaign consist of?

The Commission and UEFA will launch an EU consumer helpline, managed by the Europe Direct service, to help answer the most frequently asked questions from consumers and fans travelling abroad. They will also publish an advice brochure. The Commission-sponsored network of European Consumer Centres (ECC-net) will also provide support and advice to consumers – both before they travel to the tournament and once they arrive home.
What are the most common problems reported by tourists travelling within the EU?
In preparing for this campaign, the Commission drew on the experience of Germany during the World Cup 2006 tournament.
The most common consumer problems experienced by fans travelling to this tournament were uncertainty about their rights when it came to delayed flights, lost luggage, faulty purchases, medical care abroad and hiring a car. UEFA also has much experience in assisting fans with ticketing and other tournament-related problems, and this has also been fed into the information being made available through the campaign.

What is covered in the EU-UEFA advice leaflet?

The leaflet presents the EU consumer helpline and points to advice from the Commission-sponsored network of European Consumer Centres. It elaborates on ticketing, the European Single Emergency Number 112, medical cover and the EU health card, air and rail passenger rights, roaming charges, shopping and guarantees, precautions to be taken when driving abroad (insurance, driving licence etc.), and what to do if your goods are stolen.

What is the EU Consumer helpline?

The helpline is managed by the Commission's "Europe Direct" service. It is free-phone[1] from all EU countries and will be available in all EU official languages. You can call 00 800 6 7 8 9 10 11 from 9h00 to 18h30 CET on weekdays from anywhere in the EU.
What issues does the helpline NOT cover? And where do I go to get advice then?
The helpline has been set up specifically to deal with consumer issues – and the operators are fully briefed by UEFA and the European Commission to help consumers, in all EU languages, on the broad range of issues set out in the leaflet.
For problems or questions related to other issues – such as legal rights, lost property, match information, ticket problems, or reporting a crime – fans need to go to the police, embassy or UEFA fan embassies. All these contact details are available on the web-pages set up by the Commission, ECC-Austria and UEFA for the tournament. Where necessary, the helpline will try to point people in the right direction if they call with a problem outside the scope of consumer rights.

Can the helpline be reached from Switzerland?

No. Fans should be aware that the free-phone helpline number does not work from Switzerland. Instead, they should call the standard number + 32-2-299.96.96 , but be aware that normal international charges apply.

Do EU consumer rights apply in Switzerland?

No. Switzerland is not part of the EU and has its own national legislation. In some instances (e.g. medical cover, driving licence recognition), Switzerland has aligned its policies to those of the EU. But fans must be aware that EU consumer law does not apply in Switzerland.

Do European consumer rights apply to non-EU citizens when they are visiting the EU?

Everybody is protected by EU consumer legislation when staying in an EU country. So, whether you are British, Spanish, Russian, South African or any other nationality, if you have consumer rights when you are in the EU. For instance, if you buy a good in a shop located in the EU you are covered by EU legislation on faulty goods and guarantees. Non-EU football fans can be confident that their rights are protected by stringent EU law!

Euro area annual inflation down to 3.3%

2008-05-16T06:59:00.002+01:00

April 2008

Euro area annual inflation down to 3.3%

EU down to 3.6%

Euro area1 annual inflation was 3.3% in April 20082, down from 3.6% in March. A year earlier the rate was 1.9%. Monthly inflation was 0.3% in April 2008.

EU3 annual inflation was 3.6% in April 2008, down from 3.8% in March. A year earlier the rate was 2.2%. Monthly inflation was 0.4% in April 2008.

These figures come from Eurostat, the Statistical Office of the European Communities.

Inflation in the EU Member States

In April 2008, the lowest annual rates were observed in the Netherlands (1.7%), Portugal (2.5%) and Germany (2.6%), and the highest in Latvia (17.4%), Bulgaria (13.4%) and Lithuania (11.9%). Compared with March 2008, annual inflation rose in eight Member States, remained stable in four and fell in fifteen.

The lowest 12-month averages4 up to April 2008 were registered in the Netherlands (1.7%), Malta (1.9%), Denmark, Sweden and the United Kingdom (2.2% each), and the highest in Latvia (13.0%), Bulgaria (10.1%) and Estonia (8.8%).

Euro area

The main components with the highest annual rates in April 2008 were food (6.0%), housing and transport
(4.8% each), while the lowest annual rates were observed for communications (-1.6%), recreation & culture (-0.4%) and clothing (0.8%). Concerning the detailed sub-indices, fuels for transport (+0.41 percentage points), heating oil (+0.25), milk, cheese & eggs (+0.24) and bread & cereals (+0.16) had the largest upward impacts on the headline rate, while cars (-0.16), telecommunications (-0.15) and garments (-0.14) had the biggest downward impacts.

The main components with the highest monthly rates were clothing (2.5%), housing (0.6%) and food (0.5%), and the lowest were recreation & culture (-1.6%), communications (-0.1%) and education (0.1%). In particular, garments (+0.11 percentage points), footwear (+0.04), heating oil, gas, vegetables and fuels for transport
(+0.02 each) had the largest upward impacts, while package holidays (-0.13), gardens, plants & flowers, accommodation services and telecommunications (-0.02 each) had the biggest downward impacts.

http://europa.eu/rapid/pressReleasesAction.do?reference=STAT/08/67&format=PDF&aged=0&language=EN&guiLanguage=en

Euro area and EU27 GDP up by 0.7%

2008-05-16T06:55:00.000+01:00

Flash estimates for the first quarter of 2008

Euro area and EU27 GDP up by 0.7%

+2.2% and +2.4% respectively compared with the first quarter of 2007

GDP grew by 0.7% in both the euro area1 (EA15) and the EU271 during the first quarter of 2008, compared with the previous quarter, according to flash estimates published by Eurostat, the Statistical Office of the European Communities. In the fourth quarter of 2007, growth rates were +0.4% in the euro area and +0.5% in the EU27.
Compared with the same quarter of the previous year, seasonally adjusted GDP grew by 2.2% in the euro area and by 2.4% in the EU27 in the first quarter of 2008, after +2.2% and +2.5% respectively in the previous quarter.
During the first quarter of 2008, US GDP increased by 0.1% compared with the previous quarter, after +0.1% in the fourth quarter of 2007. Compared with the same quarter of the previous year, GDP grew by 2.5% in the US, after +2.5% also in the previous quarter.
The euro area (EA15) includes Belgium, Germany, Ireland, Greece, Spain, France, Italy, Malta, Luxembourg, Cyprus, the Netherlands, Austria, Portugal, Slovenia and Finland.
The EU27 includes Belgium (BE), Bulgaria (BG), the Czech Republic (CZ), Denmark (DK), Germany (DE), Estonia (EE), Ireland (IE), Greece (EL), Spain (ES), France (FR), Italy (IT), Cyprus (CY), Latvia (LV), Lithuania (LT), Luxembourg (LU), Hungary (HU), Malta (MT), the Netherlands (NL), Austria (AT), Poland (PL), Portugal (PT), Romania (RO), Slovenia (SI), Slovakia (SK), Finland (FI), Sweden (SE) and the United Kingdom (UK).
Summary quality information
European quarterly national accounts are compiled in accordance with the European System of Accounts 1995 (ESA95). The flash estimate of 2008 Q1 GDP growth presented in this release is based on Member States’ data as available, directly covering 80% of EA15 GDP (76% of EU27 GDP). For more details of the flash methodology please refer to News Release 55/2003 of 15 May 2003.
Simulations and previously published flash estimates have shown the flash estimation procedure to be reliable. Over the last 29 quarters, the flash estimate of GDP growth on the previous quarter for the euro area (EA12) when compared to the following first regular release has led to an average revision of less than 0.01 percentage points. It correctly anticipated the acceleration or deceleration of growth 25 times. The value of the growth rate was correctly anticipated 25 times and differed by ±0.1 percentage points 4 times.
With this flash estimate, euro area and EU GDP figures for earlier quarters are not revised, so the growth rates till the fourth quarter 2007, published in News Release 48/2008 of 9 April 2008, remain unchanged. All figures presented in this release are subject to further revision with the two regular estimates of GDP for the first quarter 2008, scheduled for 3 June 2008 and 9 July 2008. First estimates for National Accounts employment in the first quarter 2008 are scheduled for 13 June 2008.

http://europa.eu/rapid/pressReleasesAction.do?reference=STAT/08/68&format=PDF&aged=0&language=EN&guiLanguage=en

Sardinia's new Cohesion Policy programme

2008-05-16T06:54:00.002+01:00

Hübner welcomes innovation, climate change priorities in Sardinia's new Cohesion Policy programme

Danuta Hübner, Commissioner for Regional Policy, today visits Sardinia at the invitation of Mr Renato Soru, President of the Region. Her visit marks the start of the region's new Cohesion Policy programmes, which put innovation and combating climate change at the top of the agenda. She will visit projects set up with EU co-funding, and meet regional government and council officials, as well as representatives of civil society.

'I welcome the way in which the region has taken on board new priorities for this programming period: now it is playing the innovation card to boost jobs and growth, as well as planning projects to counter climate change,' the Commissioner said ahead of her visit.
Sardinia's new programme for 2007-13, with EU investment worth EUR 681 million, will focus primarily on innovation (43%), rather than on infrastructure, as was the case for the previous period. A third of the investment available will be dedicated to meeting the challenge of climate change, and is intended to achieve a 26% decrease in carbon emissions by 2015. The focus is on renewable energies and energy efficiency, and sustainable transport (upgrading of regional rail and port systems, clean urban transport modes). Sardinia aims to provide broadband access for every school under a priority entitled “Information Society”.
Project visits
The Commissioner will visit the Science Park at Pula , opened in 2003 with EU co-funding. It now hosts 50 research institutes and companies that employ 500 people in fields such as Information Technology, biomedicine, bioinformatics and nanotechnologies (ERDF contribution: € 51 million). She will also visit the former Buggerru coalfield, now a cultural and tourism area (ERDF contribution: €1.38 million).
Notes for editors
Previous programming period (2000-2006): Sardinia received investment worth EUR 4.26 billion in total from the Structural Funds for the previous programming period, which draws to a close at the end of the year. Total payments have so far reached 76%, and the Commission is encouraging the region to make further efforts to invest remaining resources in good time.
The impact of EU investment to date has been evaluated. Among the results are: a boost to wastewater treatment capacity, from 71% of the total population in 1999 to 87.5% in 2005. Cut in urban transit times: Average journey times in Cagliari and Sassari have been cut by 30 minutes since the year 2000 thanks to investment in urban rail transit systems.
Hub for co-operation in Mediterranean
Sardinia has become a hub for cooperation in the Mediterranean region. The island is involved in the Italy-France (Maritime) cross-border programme, which is set to receive EU funding worth EUR 121 million.
Sardinia is also involved in a transnational programme covering the Mediterranean. It has been designated as Managing Authority for the new European Neighbourhood and Partnership Instrument “Mediterranean Sea Basin” programme, with EUR 86.8 million of ERDF investment. The programme has four priorities: economic and social development, environment, migratory routes, and North-South contacts.Further details of Regional Policy are available at:
http://ec.europa.eu/regional_policy/index_en.htm

MIDDAY EXPRESS 15 / 05 / 08

2008-05-16T06:49:00.001+01:00

Mergers: Commission requests Spain to lift conditions imposed on acquisition of Endesa by Enel and Acciona

The European Commission has formally requested Spain to comply with its decision adopted in December 2007 under Article 21 of the EU Merger Regulation to withdraw the conditions imposed by the Spanish Energy Regulator (CNE) and later modified by the Spanish Minister of Industry and Tourism on the acquisition of the Spanish energy company ENDESA by ENEL of Italy and ACCIONA of Spain. This merger was cleared by the Commission under the EU Merger Regulation in July 2007 (see IP/07/1023). In December 2007, the Commission concluded that the Spanish conditions were contrary to EU law and requested Spain to withdraw them by 10 January 2008 (see IP/07/1858). Spain did not comply with the decision and the Commission opened infringement proceedings (see IP/08/164). Today's request by the Commission takes the form of a “reasoned opinion”, the second stage of infringement proceedings under Article 226 of the EC Treaty. If there is no satisfactory reply within one month the Commission may decide to refer Spain to the European Court of Justice.

Hübner welcomes innovation, climate change priorities in Sardinia's new Cohesion Policy programme

Danuta Hübner, Commissioner for Regional Policy, today visits Sardinia at the invitation of Mr Renato Soru, President of the Region. Her visit marks the start of the region's new Cohesion Policy programmes, which put innovation and combating climate change at the top of the agenda. She will visit projects set up with EU co-funding, and meet regional government and council officials, as well as representatives of civil society.

Déclaration de Louis Michel sur la situation politique en République centrafricaine

Le Commissaire au Développement et à l'Aide Humanitaire, Louis Michel, se félicite de la signature d'un accord de cessez-le-feu et de paix entre le gouvernement de la République centrafricaine et l'Armée Populaire pour la Restauration de la Démocratie (APRD) le 9 mai dernier à Libreville. Cet accord était un préalable pour la signature d'un accord de paix global et le lancement du dialogue politique inclusif en Centrafrique dans des conditions optimales.

Consumers: EU-UEFA launch helpline for fans travelling to EURO 2008

EU Consumer Commissioner Meglena Kuneva today announced the launch of an EU- UEFA information campaign and helpline to advise fans travelling to EURO 2008 on their consumer rights and to provide support for those who run into problems. The campaign deals with consumer issues – from fake match tickets to transferring tickets in the case of illness, to air travel, roaming charges, EU health insurance and problems shopping abroad. An EU-UEFA online consumer leaflet setting out clear advice for fans travelling to the tournament is available from today at www.euro2008.com as well as on the European Commission website at www.supportersrights.eu. A free phone consumers' rights helpline service will run – in all EU languages – throughout the tournament from June 1st 2008 - free phone supporters rights helpline 00800 6 7 8 9 10 11.

20 May: European Maritime Day set up by European institutions

The European Union has decided to celebrate the achievements and potential of Europe's ocean and seas by declaring 20 May as a dedicated "European Maritime Day". The official launch ceremony will be held in Strasbourg, where Commission President José Manuel Barroso, European Council President Janez Janša and the President of the European Parliament Hans-Gert Pöttering will sign a Joint Tripartite Declaration. European Maritime Day will provide an occasion to highlight the crucial role that oceans and seas play in the everyday life not only of coastal communities, but of all EU citizens, and for Europe's sustainable growth and jobs at large. Based on a proposal from the Commission, this dedicated Maritime Day will also encourage better stewardship of coastal zones, seas and oceans by all citizens and actors concerned.

Euro area annual inflation down to 3.3%

Euro area annual inflation was 3.3% in April 2008, down from 3.6% in March. A year earlier the rate was 1.9%. Monthly inflation was 0.3% in April 2008. EU annual inflation was 3.6% in April 2008, down from 3.8% in March. A year earlier the rate was 2.2%. Monthly inflation was 0.4% in April 2008. These figures come from Eurostat.

Le PIB de la zone euro et celui de l’UE27 en hausse de 0,7%

Au cours du premier trimestre 2008, le PIB de la zone euro (ZE15) et celui de l’UE27 ont augmenté de 0,7% par rapport au trimestre précédent, selon les estimations rapides publiées par Eurostat. Au cours du quatrième trimestre 2007, le taux de croissance avait été de +0,4% dans la zone euro et de +0,5% dans l'UE27.
European Charter Conference - Facilitating life of small businesses!
How to make the life of small businesses easier? This will be the central topic of the conference on the European Charter for Small Enterprises, taking place in Bled/Brdo, Slovenia on 3-4 June 2008. Each year this conference presents the Member States’ most successful good practices to support Small and Medium sized Enterprises (SMEs) all over Europe. This year's conference tackles among other "better regulation for the benefit of SMEs'', "fostering the internationalisation of SMEs" and "entrepreneurship education". For example, the British Cleaning and Support services association will demonstrate how a whole sector now can save up to € 250 million in total thanks to the new health and safety risk assessment models from the government. The Swedish tax agency presents its successful electronic tax declaration for SMEs. Spain will give insight into its exemplary PIPE-programme which supported nearly 5000 small companies in internationalising their business. Germany will demonstrate how they set-up the one-stop-shop “Inter-Ned” with the Netherlands to foster cross-border business activities of their respective enterprises. Wales will explain how they reached their goal to activate more than 300 entrepreneurs to serve as role models to present the fascination of their job to annually 50.000 pupils in schools all over the country. Based on the successful experience of the existing SME Charter, the Commission looks to give a further push to the policy for Small and Medium Sized Enterprises with the presentation of a Small Business Act for Europe before summer. The conference is co-organised by the European Commission and the Slovenian Presidency. Registration and further information at the conference website: http://ec.europa.eu/enterprise/enterprise_policy/charter/conf2008/

Vice-President Verheugen to visit Russia 15-17 May

Shortly after the appointment of the new Russian government Vice President Günter Verheugen is going to Russia from Thursday May 15t until Saturday May 17 to meet with the reappointed Industry and Trade Minister, Viktor Khristenko. Both are keen to further strengthen the dialogue and economic cooperation between Russia and the European Union, including the EU-Russia Industrial and Regulatory dialogue. The discussions will be held in Russian Far East, in Komsomolsk on Amur. Both will also visit the Sukhoi aircraft factory in Komsomolsk, where the new Russian Superjet 100 is produced. Major EU aerospace companies are involved in the development of this regional aircraft and considerably invested in the plant. Vice President Verheugen and minister Khristenko will discuss the industrial development in Russia and how the EU and Russia can cooperate in this field. Vice President Verheugen will also meet with business leaders in Moscow to further encourage economic cooperation and practical steps towards Russia's accession to the World Trade Organisation (WTO), which is in the mutual interest of both partners.

DG Environment holds one-day event on Climate Adaptation White Paper

The European Commission's Directorate-General for the Environment is hosting a one-day stakeholder workshop in Brussels on May 16 as part of the progress towards a White Paper on adaptation to climate change to be adopted by the Commission this autumn. The workshop will include a review of the consultation response to the Green Paper and assess preparations for the impact assessment and progress with the preparation of the White Paper. The participants will thus have an opportunity to influence the development and content of the White Paper. The White Paper follows a Green Paper on the same subject adopted in June last year, examining climate change impacts in Europe and the case for action and policy responses in the EU. That Paper focuses on the role of the EU and the leadership it could provide, but takes account of the prominent role of Member States, regional and local authorities in any efficient adaptation strategy. The Paper was met with widespread support. The conference will take place in the Commission's Borschette Conference Centre, Brussels, starting at 0930. The workshop is open to pre-registered participants only. For more details see: Climate adaptation stakeholder event and Green Paper on adaptation to climate change.

Civil protection: EU-ALBIS 2008, a large-scale cross-border flood simulation, kicks off in Germany and the Czech Republic

Germany and the Czech Republic are staging a large-scale civil protection exercise to simulate a cross-border flooding emergency. The exercise will be held between 16 and 18 May 2008. Emergency response units will react to a number of different scenarios including flood protection, bridge building, salvage, rescue, and the construction of an oil barrier. German and Czech tactical units and command centres will be involved, as will the European Commission's Monitoring and information Centre (MIC), which is activated within the framework of the Community Civil Protection Mechanism. EU Albis 2008 aims to improve cross-border skills for the teams from the two countries, test national warning systems and improve EU co-ordination in the event of a similar emergency. Spring floods are common in various parts of central and eastern Europe, and the Elbe was particularly badly affected in 2002 and 2006. This exercise is a simulated recreation of the floods of those years. The European Commission is co-financing 75% of the exercise with a contribution of €149 957. For more information, see: European civil protection exercises – http://ec.europa.eu/environment/civil/prote/exercises.htm EU-Albis 2008 - http://www.albis2008.eu/index_en.html

Commission clears acquisition of Samsung Techwin European distribution activities by Samsung Electronics

The European Commission has granted clearance under the EU Merger Regulation to the acquisition of sole control of Samsung Opto-Electronics GmbH of Germany, SamsungOpto-Electronics France S.A.S and Samsung Opto-Electronics UK, which are all subsidiaries of Samsung Techwin Co., Ltd of Korea, by Samsung Electronics Co., Ltd of Korea. Samsung Electronics designs, develops, manufactures and distributes products in the area of electronics and information technology. The target companies all distribute digital cameras. The operation was examined under the simplified merger review procedure.
Commission clears acquisition of SSC Brazil by ArcelorMittal and Gonvarri
The European Commission has granted clearance under the EU Merger Regulation to the acquisition of joint control of Gonvarri Brasil Produtos Siderúrgicos SA (SSC Brazil) of Brazil by ArcelorMittal of Luxembourg and Gonvarri of Spain. ArcelorMittal manufactures and sells a wide range of steel products including flat carbon steels, long carbon steels and stainless steels. Gonvarri is active in steel processing and distribution and the design, development and manufacture of metal parts for motor vehicles. SSC Brazil processes and distributes steel in Brazil. The operation was examined under the simplified merger review procedure.
Commission clears acquisition of T.A.R.M.A.C. Aerosave by EADS and Sita France
The European Commission has granted clearance under the EU Merger Regulation to the acquisition of joint control of T.A.R.M.A.C. Aerosave SAS of France by EADS NV of The Netherlands and Sita France SA, controlled by the French Suez group. EADS is active in aerospace, defence and related services. Suez manages public utilities in the field of electricity, natural gas, energy services, water and waste management. T.A.R.M.A.C. Aerosave is active in aircraft storage, aircraft decommissioning and spare parts recovery. The operation was examined under the simplified merger review procedure.

Commission clears joint venture between ČEZ and MOL

The European Commission has granted clearance under the EU Merger Regulation to the acquisition of joint control of a newly created company constituting a joint venture by ČEZ, a.s. (ČEZ) of the Czech Republic and MOL Magyar Olaj- és Gázipari Nyilvánosan Működő Részvénytársaság (MOL) of Hungary. ČEZ is an integrated energy conglomerate. MOL is an integrated oil and gas company. The joint venture will develop gas-fired power generation plants and related gas infrastructure in Slovakia, Hungary, Croatia and Slovenia. The operation was examined under the simplified merger review procedure.

Autre matériel diffusé
• Memo on Italy - Operational Programme 2007-2013: Sardinia Regional Operational Programme
• Memo on Questions and Answers: EU-UEFA campaign to inform EURO 2008 fans about their rights
• Speech by Commissioner Ferreo-Waldner 'Die EU und ihre östlichen Nachbarn -Sicherheit und Wohlstand durch Vernetzung', Berlin
• Speech by Commissioner Almunia '10 years of Economic and Monetary Union: time for assessment', Brussels
• Speech by Commissioner Borg 'Building a common vision of the oceans and seas', Lisbon
A disposition au secrétariat de Jonathan Todd (BERL 03/315):
Notification préalable d'une opération de concentration :
Nordic Capital / CPS Color

The European market economy through statistics

2008-05-09T15:22:00.008+01:00

Key Figures on European Business: The European market economy through statistics

The pocketbook Key figures on European business1, published by Eurostat, the Statistical Office of the European Communities, summarises the main features of European business in a concise and simple manner. The publication consists of fourteen short chapters, focusing on particular aspects of the European business economy; from the size and structure of business sectors to the importance of foreign controlled enterprises. This edition includes a special feature on the factors of business success, which presents an analysis of the characteristics of successful entrepreneurs for 15 Member States. The special feature gives an insight into the issues that determine the success and growth of newly born enterprises, as well as the motivation of entrepreneurs and the difficulties they face.
127 million persons employed in the EU27 non-financial business economy
In 2005, the total number of enterprises in the EU27 non-financial business economy2 was almost 20 million. In total, these enterprises generated 5 400 billion euro in value added and employed 127 million persons. Three sectors together accounted for more than half of the total number of enterprises: retail trade (3.8 million or 19%), other business activities3 (3.7 million or 19%) and construction (2.8 million or 14%).
These were also the sectors with the highest employment. Other business activities was the largest sector, with 18 million persons employed, representing 14% of all employment in the non-financial business economy in the EU27 in 2005, followed by retail trade (17 million or 14%) and construction (14 million or 11%).
Other business activities also had the highest value added with 656 bn euro, the equivalent of 12% of total value added in all sectors, followed by wholesale trade (480 bn or 9%) and construction (466 bn or 9%).
Key indicators on the non-financial business economy in the EU27, 2005

Germany accounted for almost a quarter of the number of credit institutions in the EU27
There were around 8 700 credit institutions4 in the EU27 in 2006, employing 3.2 million persons. Their net interest earned amounted to 300 billion euro and their net commissions to 150 bn euro. They held 2 060 billion euro of capital and reserves, while their total assets and liabilities (balance sheet) amounted to 36 000 billion euro, three times the EU27 GDP.
Amongst the Member States in 2006, Germany with almost 2 000 credit institutions accounted for 23% of the total number in the EU27, followed by France (840 institutions and 10%) and Austria (800 institutions and 9%). Germany also recorded the highest number of persons employed in credit institutions (680 thousand, 21% of total), followed by the United Kingdom (450 thousand, 14%), France (410 thousand, 13%) and Italy (340 thousand, 11%).
In 2006, Germany (66 bn, 22%) accounted for the highest share of net interest earned by credit institutions in the EU27, followed by the United Kingdom (59 bn, 20%), Italy (33 bn, 11%) and Spain (29 bn, 10%), while for net commissions the highest amounts were found in the United Kingdom (38 bn, 24%), Germany (27 bn, 17%), France (22 bn, 14%) and Italy (20 bn, 13%). In all Member States, except Luxembourg, net income from interest was higher than net income from commissions.
The United Kingdom (533 bn euro, 26%) recorded more than a quarter of the capital and reserves held by credit institutions in the EU27 in 2006, followed by Italy (277 bn, 13%), France (266 bn, 13%) and Germany (260 bn, 13%).
The United Kingdom (9 500 bn euro, 27%) also accounted for more than a quarter of the total assets and liabilities (balance sheet) of credit institutions in 2006 in the EU27, followed by Germany (7 300 bn, 20%) and France (5 400 bn, 15%). As a percentage of GDP, the balance sheet of credit institutions varied greatly among Member States, ranging from 50% in Romania and 65% in Poland to 2 480% in Luxembourg and around 500% in Cyprus, the United Kingdom and Ireland.
Credit institutions, 2006*

1. The publication "Key figures on European business" can be downloaded free of charge in PDF format and paper copies can be ordered through the Eurostat website. The publication presents only a small selection of the most important data available. For further information, the Eurostat website offers a section dedicated to European business.
2. The non-financial business economy excludes agricultural activities, public administration and other non-market services, such as education and health and also excludes the financial services sector, for which activity specific information is presented in the publication. NACE Rev. 1.1 is the common statistical classification of economic activity within the European Community. NACE Rev. 1.1 is available on the Eurostat website.
3. Other business activities: Legal, accounting, book-keeping and auditing activities; tax consultancy; market research and public opinion polling; business and management consultancy; holdings, Architectural and engineering activities and related technical consultancy, Technical testing and analysis, Advertising, Labour recruitment and provision of personnel, Investigation and security activities, Industrial cleaning, Miscellaneous business activities n.e.c.
4. Credit institutions: an undertaking whose business is to receive deposits or other repayable funds from the public and to grant credits for its own account.

Globalisation

2008-05-09T15:20:00.001+01:00

G8 employment ministers meet to strengthen social dimensions of globalisation

European Commissioner for Employment, Social Affairs and Equal Opportunities Vladimír Špidla will this weekend represent the EU at a high level meeting of employment and labour ministers from the world's eight largest economies. The special G8 meeting on employment in Niigata, Japan, will focus on labour market reform, addressing growing social disparities, the social dimension of globalisation and of environmental challenges like climate change. The conclusions of the meeting will feed into the main G8 Summit taking place in Hokkaido Toyako in July.
Vladimír Špidla underlined, "Globalisation generally has a positive impact, but the G8 countries and the EU need to make sure that its benefits are fairly spread within countries as well as between countries and at global level." He added, "In the labour market, we need to combine flexibility with security; in particular we need to make the workforce more skilled and responsive and labour markets more inclusive. Finally, we need to pay special attention to the employment and social dimensions of climate change so as to use the potential for job creation but also to appropriately address adverse effects, manage restructuring and job losses resulting from transition to a low carbon economy"
The Commission also welcomes the G8 consultation with social partners. It is pleased that the discussions will cover the challenges of emerging and developing countries as well as the G8 and developed countries themselves. Indonesia and Thailand have been invited to participate at the meeting, along with the International Labour Organisation (ILO) and Organisation for Economic Cooperation and Development (OECD).
The G8 Labour and Employment Ministers Meeting is a ministerial conference where delegates discuss the labour problems shared by developed nations. The meetings contribute to the main G8 leaders' summit. Similar meetings have been held annually since 1994. The European Commission participates on behalf of the European Union.

Visa free travel

2008-05-09T15:19:00.000+01:00

Roadmap on visa free travel for all citizens of the former Yugoslav Republic of Macedonia

European Commission Vice President Jacques Barrot, in charge of Justice, Freedom and Security, welcomed the transmission of the Roadmap on visa liberalisation to Foreign Minister Antonio Milošoski today in a meeting which took place in Brussels. The Roadmap gives clear indications to the candidate country's authorities on the measures that need to be taken in order to grant visa free travel to all its citizens in the near future.
Vice President Jacques Barrot declared: "I attach the greatest importance to facilitating people to people contacts in particular for the younger generation. I am convinced that easy travel conditions will increase mutual understanding and improve our relations in all fields. The roadmap on visa facilitation is certainly another important step towards the EU integration of the candidate country."
"But the roadmap offers more advantages to the citizens of the former Yugoslav Republic of Macedonia" VP Barrot continued, "as it will encourage the country to continue implementing the relevant reforms and reinforcing cooperation at regional level and with the EU in areas such as strengthening the rule of law, fighting organised crime and corruption."
Since 1 January 2008, the citizens of the former Yugoslav Republic of Macedonia enjoy the benefits of a visa facilitation agreement with the European Union. This agreement provides simplified conditions for visas, including a visa fee waiver for a broad range of categories of citizens including students, sportsmen and sportswomen, cultural workers, journalists, people visiting family members living in the EU, people in need of medical treatment, economic operators working with EU companies, etc. Up to 80% of the citizens of the former Yugoslav Republic of Macedonia can currently be exempt from the visa fee. The remaining visa-paying citizens are charged the special reduced rate of 35 euros instead of 60 euros.
Moreover, in February 2008, the dialogue on visa liberalisation with the former Yugoslav Republic of Macedonia was launched. It is yet another strong message of openness to all citizens of the former Yugoslav Republic of Macedonia that the EU sent. The Roadmap presented officially today is a first concrete step of the dialogue..
The Roadmap follows a balanced approach setting benchmarks which are realistic and achievable in the near future. It sets clear requirements for the reforms to be implemented in key areas such as security of documents, border management, fight against illegal migration, fight against organised crime and corruption and also in the area of fundamental rights.
The process will be closely monitored by the Commission assisted by Member States' experts. The Commission will report regularly on the implementation of the Roadmap and will eventually consider the possibility to present a proposal for the lifting of the visa obligation for citizens of the former Yugoslav Republic of Macedonia.
Background
In line with GAERC conclusions dated 28 January 2008, the Commission opened a structured dialogue on visa liberalisation with 4 Western Balkan countries (Serbia, the former Yugoslav Republic of Macedonia, Montenegro and Albania) during the first months of 2008. Opening of the dialogue with Bosnia and Herzegovina will be announced very soon.
In its March 2008 Communication on the Western Balkans, the Commission stated that it will develop detailed roadmaps setting up clear benchmarks to be met in the coming years in order to advance towards visa liberalisation. The Commission is currently working on the Roadmaps for the other countries that will be presented in the coming weeks.
Having in mind the wide range of issues relevant for the visa liberalisation dialogue and the need to establish an adequately secured context for visa free travel, the objective of the Roadmap is to set up clear requirements and identify all the measures that need to be adopted and implemented by the Western Balkan countries in the near future.
The effective implementation of the Visa Facilitation and Readmission Agreements is a concrete stage and pre-condition for the success of the visa liberalisation dialogue.
The Roadmap identifies four sets of issues to be covered by the dialogue: document security, illegal migration, public order and security as well as external relations and fundamental rights items linked to the movement of persons. Key elements of the blocks include: improvement of document security and in particular the introduction of biometrics in travel documents, better management of migratory risks, efficient law enforcement cooperation including cooperation with Europol and enhanced measures to fight against organised crime and corruption.
The dialogue will allow each country to focus reform efforts and address the EU’s requirements. The speed of movement towards visa liberalisation will depend on the progress made by each of the countries in fulfilling the conditions set.
Concerning the structure, the dialogue will be conducted by senior officials who could decide to organise technical meetings at expert level for specific items. The Commission will report regularly to the Council on the implementation of the Roadmap. The whole process will allow the Commission to make a proposal at the appropriate moment to the Council for the lifting of the visa obligation for the citizens of the former Yugoslav Republic of Macedonia.

European cultural heritage

2008-05-09T15:18:00.000+01:00

Six of the best: European cultural heritage projects

The six winners of the 2008 "European Union Prize for Cultural Heritage / Europa Nostra Awards" are outstanding projects in the Czech Republic, Greece, the Netherlands, Spain and Romania. The prizes announced today serve as recognition of exceptional conservation, research and education efforts and are each worth € 10 000. The prizes are awarded jointly by the European Commission and Europa Nostra, the pan-European Federation for Cultural Heritage. They will be presented at the European Heritage Awards Ceremony on 12 June 2008 in Durham Cathedral in the United Kingdom.
The European Heritage Awards were jointly launched in 2002 by the European Commission and Europa Nostra, in the framework of the Commission’s Culture Programme, to celebrate outstanding initiatives among the many facets of Europe's cultural heritage in categories ranging from the restoration of buildings and their adaptation to new uses, to urban and rural landscape rehabilitation, archaeological site interpretations, and care for art collections. Also awarded are prizes for research and, for the first time in 2008, education projects related to cultural heritage, and dedicated service to heritage conservation by individuals or organisations.
This Awards Scheme aims to promote high standards and high-quality skills in conservation practice, and to stimulate the trans-frontier exchanges in the area of heritage. By spreading the "Power of Example”, the Prize also aims to encourage further efforts and projects related to heritage throughout Europe.
This year, a total of 109 applications and nominations from 29 countries were received in the various categories and assessed in situ by independent experts. The most outstanding of these were selected by the Heritage Awards Jury in a series of meetings which took place over the past months.
Six Prizes have been awarded, in the following categories:
Category 1 — Conservation:
The conservation of the Southern façade of Horní Hrad (Upper Castle) of the Český Krumlov State Castle, Czech Republic: Awarded for establishing new standards in the Czech monument care and appreciated as an excellent example of a respectful conservation.
The conservation of the archaeological site of Skarkos on the Island of Ios in Greece: Awarded for the outstanding quality of conservation work and above all the minimal and extremely sensitive character of the interventions, having no detrimental impact on a unique landscape.
The restoration and adaptive re-use of the Van Nelle Factory in Rotterdam, the Netherlands: Honoured as an exemplary approach to the restoration of, and finding new uses for, an iconic building of European and world importance.
Category 2 — Research:
The Inventory of the Fortified Military Architecture in Spain by the Asociación Española de Amigos de los Castillos, Spain: Appreciated as an excellent example of raising awareness of Spain's military heritage that is not only important to Spain, but highly significant on a European level as well.
Category 3 — Dedicated service:
Stichting Stadsherstel Hoorn, the Netherlands: A very successful example of civil society's involvement in safeguarding Europe's historic city centres and in highlighting the importance of volunteers.
Category 4 — Education, training and awareness-raising:
The International Built Heritage Conservation Training Centre at Bánffy Castle in Bonţida, Romania: Highly valued for its double approach: training for conservation and conservation through training. It is an excellent example of cross border exchange of knowledge and a worthy winner of this award in the European Year of Intercultural Dialogue.
In addition to the six top Prizes, twenty-one 2nd prize Medals will be awarded. More details on the Europa Nostra Website: http://www.europanostra.org/awards/2008/laureates.html
More information on the Culture Programme and the European Commission’s awards in the field of culture: http://ec.europa.eu/culture

The Tempus Programme

2008-05-09T14:11:00.000+01:00

The Tempus Programme: modernising higher education in the EU's neighbouring countries

The European Commission has launched the fourth phase of the Tempus programme, which supports the modernisation of higher education in the 28 partner countries of Western Balkans, Eastern Europe, Central Asia, North Africa and the Middle East. A conference held in Cairo, Egypt, on 7-8 May 2008 will concentrate on the issue of quality and the experience of the Tempus programme in this field since its beginnings in 1990. The conference will also serve as a platform for dialogue between academics, experts and students from the 27 EU Member States and 28 Tempus partner countries.
On the eve of the conference, Ján Figel', the European Commissioner for Education, Training, Culture and Youth, said "Tempus will continue to promote the modernisation of higher education in the partner countries, enhance the quality and relevance of higher education, and build up the capacity of higher education institutions in the partner countries to assist them in opening up to society and the world."
Benita Ferrero-Waldner, the European Commissioner for External Relations and Neighbourhood Policy, added: “A modern and efficient higher education system is key for the successful development of a country. This is why education is always a high priority in our assistance programmes with third countries, particularly in the neighbourhood. And for me, ensuring women's access to higher education and professional training is instrumental."
With Tempus, the European Commission is creating an area of cooperation in the field of higher education between the European Union and its neighbours. Since 1990, Tempus has funded 6500 projects, involving 2000 universities from the Western Balkans, Eastern Europe, Central Asia, North Africa and the Middle East.
Between 2000 and 2006, 788 Joint European Projects and 1492 individual mobility grants were funded. In addition, during the same period, Tempus supported 270 structural and complementary measures.
The results of a study commissioned by the European Commission indicate that Tempus has had a considerable impact, particularly by setting in motion the long and difficult shift towards output-oriented rather than input-oriented education. The former revolves around the concept of what a person actually knows (the learning outcome), while the traditional, input-oriented, approach concentrated more on how long or where the person acquired that knowledge (the learning inputs).
Most universities in Tempus partner countries have made progress in introducing quality assurance schemes. These are essential for building trust into the system. Tempus has also helped to create a large number of professional staff highly committed to change and reform. The majority of the 2000 universities participating in Tempus projects have developed internal guidelines for quality assurance, including methods for self-assessment and peer reviews. In some countries, mainly in the Western Balkans, Tempus has helped to establish genuinely independent national quality assurance and accreditation agencies. However if quality is to be recognised as a strategic issue at university level, its place within the universities should be more visible, and appropriate levels of human and financial resources should be allocated to it. In many countries of the EU's Eastern and Southern Neighbourhood there is still an urgent need to develop effective materials and courses for staff development in quality assurance mechanisms.
More information: MEMO with frequently asked questions about the Tempus programme:MEMO/08/291
Tempus study on quality enhancement in higher education:
http://ec.europa.eu/education/programmes/tempus/events_en.html Executive summary of the impact study of the Tempus programme:
http://ec.europa.eu/education/programmes/tempus/doc/impact.pdfTempus programme website of the European Commission:
http://ec.europa.eu/tempus

Commission's White Paper on Sport

2008-05-09T14:03:00.000+01:00

European Parliament Report welcomes the Commission's White Paper on Sport

The European Parliament welcomed today the first comprehensive initiative of the European Commission in the field of sport. In an extensive report, the Parliament supported the Commission's approach and most of the actions contained in the White Paper on Sport, which was adopted in July 2007. The Parliament's report will help the implementation of the "Pierre the Coubertin" Action Plan that accompanies the White Paper, and paves the way for future EU initiatives that could be based on the sport provisions of the Lisbon Treaty that is currently subject to ratification by the Member States.
Ján Figel’, European Commissioner in charge of Education, Training, Culture & Youth, including Sport, said: "The report of the European Parliament confirms that the European Commission took the right approach when we adopted the White Paper on Sport in July last year. I particularly welcome the Parliament's endorsement, because it will help implement the 53 actions that flow from the White Paper in the form of the "Pierre the Coubertin" Action Plan. I would like to congratulate the Parliament's rapporteur, Mr Mavrommatis, who steered the report to adoption with an enriching debate on the role of the EU in the area of sport."
The report shows a high degree of convergence of the views held by the Parliament and the Commission. It is supportive of the White Paper and contains concrete proposals for its implementation. In addition, it supports the development of future sport initiatives based on the Lisbon Treaty and, as a first step, requests a special budget line for preparatory actions in the field of sport in 2009.
Member States and sport stakeholders had already generally welcomed the White Paper. Now the support of the Parliament confirms the pertinence of the White Paper's approach, which is based on respect for the principle of subsidiarity, the autonomy of sport organisations and the current EU legal framework.
In line with the report of the European Parliament, the implementation of the "Pierre the Coubertin" Action Plan, which addresses in particular societal and economic aspects of sport such as public health, doping, education, social inclusion, volunteering, external relations and the financing of sport, is already making progress. The Commission has so far started the implementation of 26 out of the 53 actions included in the Action Plan. For example:
Three studies are under preparation and will be launched in 2008, (1) on the financing of grassroots sport and sport for all, (2) on the necessity or otherwise of EU action on players' agents, and (3) on volunteering in sport.
A high-level conference on racism and violence in sport took place last November, where better means to fight against this problem were identified.
New funding opportunities are open for sport and physical activity in different EU programmes, especially in the Lifelong Learning programme, the Youth in Action programme and the Europe for Citizens programme.
EU Physical Activity Guidelines are being prepared by an expert group.
A working group has developed an EU statistical definition of sport, and several Member States are planning to start the production of data on this basis.
A structured dialogue is being developed with sport organisations such as European sport federations, European and national umbrella organisations such as the European and national Olympic Committees, and European non-governmental sport organisations.
In November, the Commission will organise a European Sport Forum to discuss the implementation of the White Paper with European sport stakeholders, also in view of possible future initiatives based on the new provisions contained in the Lisbon Treaty.
The Commission will remain active and vigilant as regards respect for EU law in the area of sport. In order to provide additional clarity on the issue of the specificity of sport, the Commission maintains an open dialogue with sport organisations and Member States, based on its adopted decisions and existing case law.
The White Paper is available at http://ec.europa.eu/sport/index_en.html

Efforts to tackle food crisis

2008-05-09T13:59:00.002+01:00

European Commission and West African Economic and Monetary Union (UEMOA) join efforts to tackle food crisis and boost regional integration

The European Commission and the West African Economic and Monetary Union (Senegal, Benin, Togo, Niger, Mali, Burkina Faso, Guinea Bissau and Ivory Coast) agreed to increase their collaboration in a number of sectors, including initiatives that can have a positive impact in food prices and regional integration. President of the Commission of the UEMOA, Soulaïma Cissé, met yesterday and today the Commissioner for Regional Policy, Danuta Hübner, and the Commissioner for Development and Humanitarian Aid, Louis Michel, to discuss concrete initiatives to strengthen economic and political cooperation between UEMOA and the European Commission. President Cissé also met EU Trade Commissioner Peter Mandelson, to discuss progress in the ongoing Economic Partnership Agreement between the EU and West Africa.
The food price crisis was at the centre of the discussions between Commissioner Michel and President Cissé. They both share concerns on the possible negative impact on the stability of the West African countries. They agreed to organise quickly a joint EC-UEMOA-ECOWAS meeting to agree concrete measures to help resolving the crisis.
Commissioner Michel underlined that "in addition to short term actions that EC is already implementing as emergency food security, medium-long term programmes are necessary to restructure the agricultural sector and policies in order to ensure food self sufficiency and the transfer of a relevant portion of the price increase to the producers. The UEMOA has a long standing experience in common agricultural policy and I am confident that together we can work out viable solutions".
Commissioner Michel and President Cissé also discussed the implementation and programming of the 10th European Development Fund (EDF, 2008-2013) and stressed the importance of supporting the ongoing integration process of the West African region. In that sense, they reaffirmed that an Economic and Partnership Agreement (EPA) between the EU and West Africa would act as a tool for development and would enhance regional integration.
Commissioner Michel congratulated the president of UEMOA for the achievements reached in its economic integration process, in particular for its customs union and for the quality of its Regional Economic Programme (REP)
Commissioner Hübner and President Cissé launched a new area of co-operation between the Commission and UEMOA in regional policy.
Commissioner Hübner said: "The Union's history shows that economic integration needs to be accompanied by regional policy, that there is a link between the level of economic development and the capacity of countries and their regions to participate in common policies. UEMOA, which is advancing economic integration among its Member States, can benefit from this experience."
They also discussed the importance of involving local and regional actors in economic development and agreed to promote the European local and regional authorities sharing their experience in this respect through the co-operation with third countries. In this sense, the recently created Forum of Global Associations of Regions (FOGAR) is a good example of such approach. Commissioner Hübner added: "I agree with what came out of the last FOGAR meeting: regional and national governance rules should be enhanced to enable the regions and local authorities to work together, in order to better reach people and improve their lives."
Following these meetings with President Cissé, Commissioner Hübner, in coordination with Commissioner Louis Michel, will send a fact finding mission to the headquarters of the UEMOA Commission in Ouagadougou, Burkina Faso, in order to find concrete ways for the UEMOA to benefit from the experience of the European regional policy.
Local and regional authorities are also key actors for the eradication of poverty. They are essential for a development adapted to the needs of populations, and for economic growth. This is why they will be at the core of the third edition of the European Development Days, to be hold on 15-17 November 2008 in Strasbourg.
After his meeting with President Cissé Commissioner Mandelson said: “President Cissé and I are both pleased that work on our Economic Partnership Agreement is now proceeding well and we are committed to maintaining a highly constructive atmosphere and to keeping up the current momentum”.
Note for editors
The West African Economic and Monetary Union (or UEMOA (Union économique et monétaire ouest-africaine) is an organization of eight states of West Africa established to promote economic integration among countries that share a common currency, the CFA franc.
UEMOA was created by a Treaty signed at Dakar, Senegal, on January 10, 1994 by the Heads of State and Government of Benin, Burkina Faso, Côte d’Ivoire, Mali, Niger, Senegal, and Togo. On May 2 1997, Guinea-Bissau became its eighth member state.
UEMOA is a customs union and monetary union between some of the members of Economic Community of West African States (ECOWAS). Its objectives are:
Greater economic competitiveness, through open and competitive markets, along with the rationalization and harmonization of the legal environment
The convergence of macroeconomic policies and indicators
The creation of a common market
The coordination of sectoral policies
The harmonization of fiscal policies
In terms of its achievements, UEMOA members have implemented macroeconomic convergence criteria and an effective surveillance mechanism; have adopted a customs union and common external tariff (early 2000); have harmonized indirect taxation regulations; and have initiated regional structural and sectoral policies. A September 2002 IMF survey cited the UEMOA as "the furthest along the path toward integration" of all the regional groupings in Africa. [2]
Further information on European regional policy is available at: http://ec.europa.eu/regional_policy/index_en.htm.

EU Roaming Regulation

2008-05-07T19:04:00.000+01:00

Telecoms: European Commission launches public consultation on the functioning and the effects of the EU Roaming Regulation

As of today, the European Commission invites feedback by industry, consumers and other interested stakeholders to review the functioning and effectiveness of the EU Roaming Regulation, which entered into force on 30 June 2007. According to the provisions of the Regulation, the Commission must report to the European Parliament and the Council in 2008 about the functioning of the new roaming rules and their effects. The public consultation aims to gather responses from mobile operators, businesses, consumer associations and any interested party by 2 July 2008.
The public consultation seeks feedback from stakeholders on the general functioning and impact of the current Regulation as well as on specific issues such as:
inadvertent roaming (or involuntary roaming) when consumers use their mobile phone close to the border of a neighbouring country and are connected to a foreign network;
the effect of the Regulation on smaller operators and on domestic prices;
the issue of actual and billed minutes (e.g. whether there has been any detrimental trend away from "per second" to "per minute" billing as a result of the Regulation);
whether regulation is necessary for data roaming services and SMS in light of current retail prices and market developments;
the duration of the EU Roaming Regulation (until 30 June 2010 or beyond).
Background
The EU Roaming Regulation of 30 June 2007 (IP/07/870) requires operators to offer customers a "Eurotariff" for voice calls when roaming in other Member States and introduced ceilings (excl. VAT) of €0.49 per minute for making calls and €0.24 per minute for receiving calls. These will decrease to €0.46 and €0.22 respectively on 30 August 2008 and to €0.43 and €0.19 on 30 August 2009. At the end of September 2007, over 400 million EU citizens could already benefit from a "Eurotariff".
The Roaming Regulation is limited to voice calls and expires on 30 June 2010 unless the European Parliament and the Council decide to extend it beyond this date, on the basis of a proposal from the European Commission. The Commission must carry out a review and report to the European Parliament and the Council in 2008.
A first report from the European Regulators Group in January 2008 illustrated the Regulation's first positive impact on average tariffs and reported on prices for SMS and other data services (IP/08/58). On average, users had to pay €5.24 per MB for data services and €0.29 for an SMS in the third quarter of 2007.
The Commission's public consultation document can be found on:
http://ec.europa.eu/information_society/activities/roaming/index_en.htm
Input can be sent to: infso-roaming@ec.europa.eu
REGULATION (EC) No 717/2007
OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 27 June 2007
on roaming on public mobile telephone networks within the Community
and amending Directive 2002/21/EC
Article 11
Review
1. The Commission shall review the functioning of this Regulation and report to the European Parliament and the Council no later than 30 December 2008. The Commission shall evaluate in particular whether the objectives of this Regulation have been achieved. In its report the Commission shall review developments in wholesale and retail charges for the provision to roaming customers of voice and data communication services, including SMS and MMS, and shall, if appropriate, include recommendations regarding the need to regulate these services. [...]
2. In its report, the Commission shall assess whether, in the light of developments in the market and with regard to both competition and consumer protection, there is need to extend the duration of this Regulation beyond the period set out in Article 13 [= 30 June 2010] or to amend it, taking into account the developments in charges for mobile voice and data communication services at national level and the effects of this Regulation on the competitive situation of smaller, independent or newly started operators. If the Commission finds that there is such a need, it shall submit a proposal to the European Parliament and the Council.

Serbia open doors to EU

2008-05-07T19:02:00.001+01:00

Roadmap on visa free travel opens EU doors to Serbia

European Commission Vice President Jacques Barrot, in charge of Justice, Freedom and Security officially presented the Roadmap on visa liberalisation with Serbia in Belgrade today. The Roadmap gives clear indications to the Serbian authorities on the measures that need to be taken in order to grant visa free travel to all Serbian citizens.
"The time of isolation for Serbia is over" said Vice President Jacques Barrot when presenting the Roadmap in Belgrade today. "With the recently signed Stabilisation and Association Agreement this Roadmap constitutes the opening of the doors of the EU to all citizens of Serbia and their welcoming in the great family of a united Europe. I attach the greatest importance to facilitating people to people contacts between Serbia and the EU, as this will increase mutual understanding and improve our relations in all fields. But facilitating travelling to the EU is in particular important to the younger generation in a country where 70% of the young people have never travelled abroad."
"But the roadmap offers more advantages to the Serbian citizens", VP Barrot continued, "as it will encourage Serbia to implement relevant reforms and reinforce cooperation at regional level and with the EU in areas such as strengthening the rule of law, fighting organised crime and corruption. It will also increase Serbia's administrative capacity in border control and security of documents by introducing biometric data."
Since 1 January 2008, Serbian citizens enjoy the benefits of a visa facilitation agreement with the European Union. This agreement provides simplified conditions for visas, including a waiving of a visa fee for a broad range of categories of citizens including students, sportsmen and sportswomen, cultural workers, journalists, people visiting family members living in the EU, people in need of medical treatment, economic operators working with EU companies, etc. Up to 80% of Serbian citizens can currently be exempt of a visa fee. People who pay for visa are charged the special reduced rate of 35 euros instead of 60 euros.
Yet the EU sent another strong message of openness/encouragement to all Serbian citizens. On 30 January 2008 the dialogue on visa liberalisation was launched. The General Affairs and External Relations Council of 28 January 2008 welcomed this step and invited the Commission to present detailed roadmaps setting clear benchmarks to be met by all the countries in the region in order to gradually advance towards visa liberalisation. The Roadmap presented to Serbia officially today is the first in line.
The Roadmap follows a balanced approach setting benchmarks which are realistic and achievable in the near future. It sets clear requirements for the reforms to be implemented in key areas such as security of documents, border management, fight against illegal migration, fight against organised crime and corruption and fundamental rights.
The process will be closely monitored by the Commission assisted by Member States' experts. The Commission will report regularly on the implementation of the Roadmap and will consider the possibility to present a proposal for the lifting of the visa obligation for Serbian citizens.
Background
In line with GAERC conclusions dated 28 January 2008, the Commission opened a structured dialogue on visa liberalisation with 4 Western Balkan countries (Serbia, FYROM, Montenegro and Albania) during the first months of 2008. Opening of the dialogue with Bosnia and Herzegovina will be announced in the coming weeks.
The Commissions' Communication on the Western Balkans stated that the Commission will develop detailed roadmaps setting up clear benchmarks to be met in the coming years in order to advance towards visa liberalisation. The Commission is currently working on the Roadmaps for the other countries that will be presented in the coming weeks.
Having in mind the wide range of issues relevant for the visa liberalisation dialogue and the need to establish an adequately secured context for visa free travel, the objective of the Roadmap is to set up clear requirements and identify all the measures that need to be adopted and implemented by the Western Balkan countries in the near future.
The effective implementation of the Visa Facilitation and Readmission Agreements is a concrete stage and pre-condition for the success of the visa liberalisation dialogue.
The Roadmap identifies four sets of issues to be covered by the dialogue: document security, illegal migration, public order and security as well as external relations items linked to the movement of persons. Key elements of the blocks include: improvement of document security and in particular the introduction of biometrics in travel documents, better management of migratory risks, efficient law enforcement cooperation including cooperation with Europol and enhanced measures to fight against organised crime and corruption.
The dialogue will allow each country to focus reform efforts and address the EU’s requirements. The speed of movement towards visa liberalisation will depend on the progress made by each of the countries in fulfilling the conditions set.
Concerning the structure, the dialogue will be conducted by senior officials who could decide to organise technical meetings at expert level for specific items. The Commission will report regularly to the Council on the implementation of the Roadmap. The whole process will allow the Commission to make a proposal at the appropriate moment to the Council for the lifting of the visa obligation for Serbian citizens.

10 years of Economic and Monetary Union

2008-05-07T19:00:00.000+01:00

10 years of Economic and Monetary Union: a resounding success but testing times ahead

The euro is a resounding success. The protection provided by an international currency with a market of nearly 320 million people, supported by sound public finances and stable macroeconomic policies, is particularly welcome in these times of uncertainty and worrying increases in the prices of energy and food. But as we complete 10 years of Economic and Monetary Union (EMU), we must acknowledge that there is still work to be done. The euro area’s governance and coordination of economic policies must be improved. This will involve both deepening and broadening economic surveillance arrangements to guide fiscal policy over the cycle and in the long term and, at the same time, address divergences in growth, inflation and competitiveness. We also need to better project our voice in the global arena, to reflect the euro’s weight as an international currency used well beyond its borders. Only then will the benefits of the single currency become fully apparent to the citizens of the euro area.
"EMU is a solid construction and a remarkable achievement. But the experience of its first decade shows that economic policy decisions in one country may have important effects on others. Therefore we need to keep improving the economic governance of the euro area through strong and binding political commitments. Over the last three years we have revised the instruments of coordination, the Stability and Growth Pact and the euro area dimension of the Lisbon process. We now need to strengthen our coordination of budgetary and economic policies. We also need to step up our international economic strategy. We owe it to the citizens of Europe to ensure that the euro area becomes a vibrant example of growth and dynamism," said Joaquín Almunia, European Commissioner for Economic and Monetary Affairs, adding: "I intend to drive this debate forward with the Member States, the Council and the European Parliament during the French Presidency and to come back with proposals."
On 2 June 1998, almost exactly 10 years ago, EU leaders took the historic decision to launch the euro on 1 January 1999, with the participation of 11 European Union countries.[1] At the same time, they established the European Central Bank with effect on 1 June 1998.
As we mark the 10th anniversary of what EU citizens see as one of the most potent symbols of European reconciliation and integration, the Commission today adopted a Communication – EMU@10: successes and challenges after 10 years of Economic and Monetary Union – that looks at the benefits but also, and more importantly, at the improvements needed to ensure that EMU works even better in the next decade and beyond. The Communication is accompanied by a staff Report, which provides a systematic review backing the policy analysis.
The euro has delivered sustained price stability on a scale that many, if not all, of its members had never previously enjoyed, notwithstanding the recent spurt in inflation caused by soaring global food and energy prices. Interest rates have come down to an average of 5% from around 9% in the 1990s and the abolition of exchange rate costs and risks has spurred internal trade, which now accounts for one third of the euro area's GDP, up from one quarter 10 years ago. Similarly, intra-area foreign direct investment now stands at one third of GDP compared with one fifth before, showing that the area's attractiveness has increased markedly. Lower costs of capital have also boosted total private and public investment levels to 22% of GDP in 2007 – a level unseen since the early 1990s. Public deficits have fallen to a record low 0.6% of GDP in 2007, compared with an average of 4% in the 1980s and 1990s. Together with the Lisbon Strategy for Growth and Jobs, the overall macroeconomic stability and sound budgetary policies have enabled the euro area to create nearly 16 million jobs since 1999, more than in any recent decade, bringing the unemployment rate down to around 7%.
An agenda for unleashing the full potential of EMU
Nonetheless, we can and we must improve the functioning of EMU. Growth has been less than impressive in some countries and productivity trends have lagged behind the United States. Structural reform efforts must be intensified and there remain substantial differences among countries. Despite the growing importance of the euro as an international currency, the euro area is still failing to make its voice heard in international fora. Public perceptions of the euro also do not do justice to its benefits in terms of economic stability, more transparent prices, cheaper credit and easier travel. Finally, the challenges posed by our ageing population and globalisation, which are becoming more pressing and are compounded by the ongoing turmoil on the financial markets and rising food and energy prices, make improving the performance of EMU not just a target but an imperative.
A domestic agenda
Deepening and broadening economic surveillance. Deeper surveillance means improving the Stability and Growth Pact's 'preventive arm' to guide fiscal policies over the cycle and take into account the costs that a shrinking and ageing population will put on future generations. We need to take a harder look at the quality of public finances to ensure taxpayers' money is put to good use. And we also need to extend the existing peer monitoring system beyond fiscal policy, in order to tackle economic imbalances and divergences among euro-area members in a timely manner.
Better integrating structural reforms in the co-ordination process. The euro area has a special interest in the success of reforms, including financial integration and better functioning labour markets. More use could be made of the structural reform incentives built into the 2005 revision of the Pact, without jeopardising its function as an anchor for fiscal discipline.
Enhancing the euro area's international role
The euro area needs to define a strategy regarding the international role of the euro and make its voice heard on global issues. As a rule it must agree, and stick to, common positions in order to speak with one voice. Ultimately it must consolidate its external representation and aim to have a single seat in international financial institutions and fora.
Promoting effective governance of EMU
On the political front, although the euro area does not need any new institutions, it does need better governance. Better coordination and surveillance of national economic and budgetary policies is needed within the ECOFIN Council and the Eurogroup, particularly in view of the progressive enlargement of the euro area, in order to address imbalances and promote structural reforms that foster adjustment, stability and growth.
The Commission aims to promote a frank and forthright debate in the second half of 2008 with a view to finding a consensus on all these issues and will come forward with appropriate proposals.
EMU@ Report http://ec.europa.eu/economy_finance/emu10/reports_en.htm
EMU@10 website http://ec.europa.eu/economy_finance/emu10/index_en.htm

Midday Express of 2008-05-07

2008-05-07T18:59:00.001+01:00

MIDDAY EXPRESS

News from the Communication Directorate General's midday briefing
Nouvelles du rendez-vous de midi de la Direction Générale Communication
07 / 05 / 08

http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/716&type=HTML&aged=0&language=EN&guiLanguage=en
Publication today at 15h00, at the same time as the presentation to the European Parliament by Commissioner Almunia, of the Communication on 10 years of Economic and Monetary Union together with accompanying staff report. Press release and Memo will be available on RAPID at 15h00; Communication and Report on DG ECFIN's website also at 15h00: EMU@ Report http://ec.europa.eu/economy_finance/emu10/reports_en.htm and EMU@10 website http://ec.europa.eu/economy_finance/emu10/index_en.htm
Roadmap on visa free travel opens EU doors to Serbia
European Commission Vice President Jacques Barrot, in charge of Justice, Freedom and Security officially presented the Roadmap on visa liberalisation with Serbia in Belgrade today. The Roadmap gives clear indications to the Serbian authorities on the measures that need to be taken in order to grant visa free travel to all Serbian citizens.
Telecoms: European Commission launches public consultation on the functioning and the effects of the EU Roaming Regulation
As of today, the European Commission invites feedback by industry, consumers and other interested stakeholders to review the functioning and effectiveness of the EU Roaming Regulation, which entered into force on 30 June 2007. According to the provisions of the Regulation, the Commission must report to the European Parliament and the Council in 2008 about the functioning of the new roaming rules and their effects. The public consultation aims to gather responses from mobile operators, businesses, consumer associations and any interested party by 2 July 2008.
Commission decision on Austrian safeguard clauses
The Commission today adopted a decision ordering Austria to lift the safeguard clause it had placed on the import and processing of two GMOs, Zea Mays L. line MON 810 and Zea Mays Line T 25. This decision does not affect the safeguard clause on cultivation. The two GMO maize varieties were authorised for import, processing into food and feed products and cultivation in Europe by a Commission Decision on 22 April 1998. One year later, on 2 June 1999, Austria informed the Commission that it was to provisionally prohibit the placing on the market of Zea Mays L. line MON 810 for all uses covered by the consent, and the following year it also banned the placing on the market of Zea Mays L. line MON 810 for all uses. EFSA, the European Food Safety Authority has confirmed the safety of the products on several occasions, but the Council had failed to agree a position and the decision was therefore returned to the Commission. Today's decision therefore resolves the deadlock.
Commission clears acquisition of Getty Images by Abe Investment
The European Commission has granted clearance under the EU Merger Regulation to the acquisition of sole control of Getty Images, Inc. of the US by Abe Investment, LP of the US, controlled by Hellman & Friedman Capital Partners VI, LP (HFCP), also of the US. HFCP is a private equity fund investing in various sectors. Getty Images creates and distributes digital media content. The operation was examined under the simplified merger review procedure.
Insurance: Commission issues consultation paper on 'Insurance Guarantee Schemes'
As part of its public consultation on insurance guarantee schemes, the European Commission has issued a consultation paper seeking the views of the widest possible range of interested parties on the need for, design and operation of insurance guarantee schemes in the EU. The European Commission will also host a public hearing on 2 June 2008. (MEX/08/0423). The consultation paper is based on the main findings of the OXERA Report on insurance guarantee schemes as set out in the Report's executive summary and asks a number of specific questions. An on-line electronic tool will be used to collect the responses and comments. The consultation will last 8 weeks and end on 6 July 2008. The consultation paper, the OXERA Report and details of the public hearing are all available on the Commission's insurance website at http://ec.europa.eu/internal_market/insurance/guarantee_en.htm
Rediffusion
Mergers: Commission approves proposed acquisition of TietoEnator by Nordic Capital
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of TietoEnator, a Finnish provider of information technology services by Jersey-based investment fund Nordic Capital. The Commission concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area ("EEA") or any substantial part of it.
Commission takes steps against Spain regarding the application of a non EU-harmonized excise duty on mineral oils
The European Commission has formally notified Spain that the excise duty, so called "Impuesto Especial sobre las Ventas Minoristas de Determinados Hidrocarburos", fails to comply with Community Law. The notification takes the form of a reasoned opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). If the relevant national provisions are not aligned with Community Law within two months, the Commission may decide to refer this matter to the European Court of Justice.
Taxation of dividends: Commission takes steps against Bulgaria, Spain, Portugal and Romania, and closes case against Luxembourg
The European Commission has sent reasoned opinions (the second step of the infringement procedure of Article 226 of the EC Treaty) to Spain and Portugal about their rules under which dividends paid to foreign pension funds are taxed more heavily than dividends paid to domestic pension funds. It has also sent requests for information in the form of letters of formal notice (the first step of the infringement procedure) to Bulgaria about its rules under which inbound dividends paid to companies may be taxed more heavily than domestic dividends and to Romania and Bulgaria about their rules under which outbound dividends paid to companies may be taxed more heavily than domestic dividends. The four Member States are asked to reply within two months. At the same time the Commission has closed the case against Luxembourg on the higher taxation of outbound dividends paid to companies, as Luxembourg has eliminated the discriminatory taxation.
European Commission reaffirms the support to the Sudan Comprehensive Peace Agreement and pledges €300 M for development of the Sudan
The European Commissioner for Development and Humanitarian Aid, Louis Michel, attended today the Sudan Consortium conference in Oslo and announced that the European Commission will allocate further €300 million for development assistance for the five coming years in support of the Comprehensive Peace Agreement (CPA).

Mergers: Commission approves proposed acquisition of TietoEnator by Nordic Capital

2008-05-06T22:09:00.001+01:00

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of TietoEnator, a Finnish provider of information technology services by Jersey-based investment fund Nordic Capital. The Commission concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area ("EEA") or any substantial part of it.
Nordic Capital is a private equity company which invests in large and medium-sized companies, predominantly in the Nordic region. Nordic Capital controls the Swedish company Aditro, which is active in the provision of information technology (IT) services and Enterprise Application Software (EAS).
TietoEnator provides IT services and is primarily active in Finland, Sweden, Norway and Denmark.
The Commission’s examination of the proposed transaction showed that the horizontal overlaps between the activities of TietoEnator and Aditro in relation to IT services were limited and that, for all categories of IT services, the combined entity would continue to face several strong, effective competitors, such as IBM, CapGemini, Accenture and Hewlett-Packard.
The Commission also investigated the vertical relationship between the activities of Aditro in the market for the supply of EAS, and TietoEnator's and Aditro's activities in the market for the provision of IT services. As EAS may be used in combination with many IT services, the merged entity could in theory try to take advantage of its enlarged customer base in IT services to leverage its position from one market into the other. However, in view of Aditro's limited share of the EAS market in the Nordic countries and the purchasing pattern of Nordic customers, who tend to select their EAS and IT services suppliers separately, the Commission concluded that this vertical relation was unlikely to raise competition concerns.
Further information relating to this case will be available at:
http://ec.europa.eu/comm/competition/mergers/cases/index/m102.html#m_5128

Steps against Spain

2008-05-06T22:07:00.000+01:00

Commission takes steps against Spain regarding the application of a non EU-harmonized excise duty on mineral oils

The European Commission has formally notified Spain that the excise duty, so called "Impuesto Especial sobre las Ventas Minoristas de Determinados Hidrocarburos", fails to comply with Community Law. The notification takes the form of a reasoned opinion (second step of the infringement procedure provided for in Article 226 of the EC Treaty). If the relevant national provisions are not aligned with Community Law within two months, the Commission may decide to refer this matter to the European Court of Justice.
Excise duties on mineral oils are harmonised at EU level and are applied by all Member States. Directive 92/12/EEC,[1] article 3(2), provides the possibility for products that are already subject to EU harmonised excise duties, to be also subject to other indirect taxes for specific purposes and under certain defined conditions.
Spain, in addition to the EU harmonised excise duty on mineral oils ("Impuesto sobre Hidrocarburos"), applies the "Impuesto sobre las ventas minoristas de determinados hidrocarburos" (IVMDH), a tax on motor fuels sold at petrol stations. The rate of the tax is, within certain limits determined by Spain’s autonomous regions. The revenue is allegedly used to finance the health care system (a responsibility largely devolved to the regions).
The Commission has taken the view that the IVMDH does not fully comply with the requirements set up in Article 3(2) of Directive 92/12/EEC for the following reasons. First, chargeability of the IVDMH is not aligned with that of the harmonised excise duty, since it does not take place at the moment where the products leave the last tax warehouse but at a later stage, when the relevant products are sold to the purchaser in the petrol station.
Second, Article 3(2) of Directive 92/12/EEC requires that any other indirect tax on mineral oils must pursue a "specific purpose". The EC Court has already understood that a "specific purpose", in this context, is "a purpose other than a budgetary one".
The Commission takes the view that the main objective of the tax is to strengthen the autonomy of the regions by providing them with the means to generate tax income. This, according to the criteria of the EC Court, cannot be considered as a "specific purpose" required by the Directive.
For these reasons, the Commission has formally requested Spain to bring its national legislation in line with Community Law by means of a reasoned opinion.
The Commission's reference number is 2002/2315.
For the latest information on infringement proceedings, go to:
http://ec.europa.eu/taxation_customs/common/infringements/infringement_cases/index_en.htm
For the latest general information on infringement measures against Member States see:
http://ec.europa.eu/community_law/eulaw/index_en.htm

Steps against Bulgaria, Spain, Portugal and Romania

2008-05-06T22:05:00.001+01:00

Taxation of dividends: Commission takes steps against Bulgaria, Spain, Portugal and Romania, and closes case against Luxembourg

The European Commission has sent reasoned opinions (the second step of the infringement procedure of Article 226 of the EC Treaty) to Spain and Portugal about their rules under which dividends paid to foreign pension funds are taxed more heavily than dividends paid to domestic pension funds. It has also sent requests for information in the form of letters of formal notice (the first step of the infringement procedure) to Bulgaria about its rules under which inbound dividends paid to companies may be taxed more heavily than domestic dividends and to Romania and Bulgaria about their rules under which outbound dividends paid to companies may be taxed more heavily than domestic dividends. The four Member States are asked to reply within two months. At the same time the Commission has closed the case against Luxembourg on the higher taxation of outbound dividends paid to companies, as Luxembourg has eliminated the discriminatory taxation.

"I am pleased to note that Luxembourg has changed its discriminatory tax rules on outbound dividends" said EU Taxation and Customs Commissioner László Kovács. "I am confident that eventually all Member States which still have similar discriminatory rules will also amend their legislation accordingly."
Outbound dividends are dividends paid by domestic companies to shareholders resident in other States. Domestic dividends are dividends paid by domestic companies to domestic shareholders. Inbound dividends are dividends paid by companies resident in other States to domestic shareholders.
Outbound dividends to pension funds
Pension funds are usually subject to different tax rules than companies. The tax rules on dividends paid to pension funds and those for dividends paid to companies are therefore assessed separately.
Spain exempts pension funds from tax on their income, and they can claim back any Spanish withholding tax on the dividends that they receive. The domestic dividends that they receive are thus effectively tax free. In contrast, Spain levies a withholding tax of 18% on dividends paid to pension funds established elsewhere in the EU or in the EEA/EFTA countries (Iceland, Norway and Liechtenstein). These result in the higher taxation of dividends paid to foreign pension funds. Bilateral tax treaties may provide for a lower withholding tax rate.
Similarly, Portugal exempts the dividends received by domestic pension funds and levies a withholding tax of 25% on dividends paid to pension funds established elsewhere in the EU or in the EEA/EFTA countries.
The higher tax on dividends paid to foreign pension funds may dissuade these funds from investing in the Member State levying the higher tax. Equally, companies established in that Member States may face difficulties in attracting capital from foreign pension funds. The higher taxation of foreign pension funds thus results in a restriction of the free movement of capital as protected by Article 56 EC and Article 40 EEA. In the case of controlling participation by the foreign pension funds, it may also result in a restriction of the freedom of establishment, protected by Article 43 EC and Article 34 EEA. The Commission is not aware of any justification for such restrictions.
Concerning the higher taxation of dividends paid to foreign pension funds, the Commission has already sent letters of formal notice to the Czech Republic, Denmark, Spain, Lithuania, the Netherlands, Poland, Portugal, Slovenia and Sweden (IP/07/616 of 7 May 2007), to Italy and Finland (IP/07/1152 of 23 July 2007) to Germany and Estonia (IP/08/143 of 31 January 2008) and Austria (on 23 November 2007).
Following up on the complaints it received, the Commission is still examining the situation in other Member States. This may result in the opening of further infringement procedures.
Outbound dividends to companies
The letter of formal notice to Romania concerns the taxation of dividends which are paid to companies, resident elsewhere in the EU or in the EEA/EFTA countries.
Domestic dividends on participations of up to 15% of the shares are subject to a final withholding tax of 10%. On similar outbound dividends, Romania levies a withholding tax of 16%. Bilateral tax treaties may reduce that rate.
Domestic dividends on participations of 15% or more are tax exempt. In contrast, Romania levies a final withholding tax of 10% on dividends paid to companies resident in Norway and of 16% on similar outbound dividends paid to companies resident in the other EEA/EFTA countries.
The first letter of formal notice to Bulgaria also concerns the taxation of dividends paid to companies which are resident elsewhere in the EU or in the EEA/EFTA countries. Bulgaria exempts domestic dividends from withholding tax or corporation tax. However, outbound dividends paid to companies resident in the EU with a shareholding of less than 15% are subject to a withholding tax of 5% (if shareholding is of 15% or more they are exempt from withholding tax.). Outbound dividends paid to companies in the other EEA/EFTA countries are also subject to a withholding tax of 5%, regardless of the size of their shareholding.
Higher taxation of outbound dividends paid to companies may result in a restriction of the free movement of capital as protected by Article 56 EC and Article 40 EEA. Similarly, in the case of controlling participations by the foreign companies, it may result in a restriction of the freedom of establishment, protected by Article 43 EC and Article 34 EEA. The Commission is not aware of any justification for such restrictions.
Concerning the higher taxation of dividends paid to companies the Commission has already decided to refer Belgium, Spain, Italy, the Netherlands and Portugal to the European Court of Justice on 22 January 2007 (IP/07/66). The Commission sent reasoned opinions to Luxembourg (IP/06/1060 of 25 July 2006), Germany and Austria (IP/07/1152 of 23 July 2007) and Lithuania (IP/08/334 of 28 February 2008). The Commission sent a letter of formal notice to the Czech Republic (IP/08/143 of 31 January 2008). The Commission closed the infringement procedure against Latvia (IP/08/143 of 31 January 2008).
The Commission is now closing the case against Luxembourg (which concerned only the three EEA/EFTA countries), since Luxembourg eliminated the discrimination through its law of 27 December 2007.
Inbound dividends to companies
The second letter of formal notice to Bulgaria concerns the taxation of dividends paid by companies, resident elsewhere in the EU or in the EEA/EFTA countries to companies resident in Bulgaria. Domestic dividends received by companies resident in Bulgaria are tax exempt. Inbound dividends on participations of less than 15% in companies of other EU Member States are taxed at 10%, just like all dividends received from companies of the EFTA/EEA countries. The higher taxation of inbound dividends than of domestic dividends is likely to restrict the free movement of capital as protected by Article 56 EC and Article 40 EEA. The Commission is not aware of any justification for such restrictions.
Background
The Commission's Communication of 19 December 2003 (IP/04/25) on the taxation of dividends received by individuals provides an overview of issues related to dividend taxation.
The Commission's cases reference numbers are Bulgaria (2007/4883 for the inbound dividends, 2007/4333 for the outbound dividends), Spain (2006/4106), Portugal (2006/4104), Romania (2008/2048) and Luxembourg (2004/4351).
For the press releases issued on infringement procedures in the taxation or customs area see:
http://ec.europa.eu/taxation_customs/common/infringements/infringement_cases/index_en.htm
For the latest general information on infringement measures against Member States see:
http://ec.europa.eu/community_law/infringements/infringements_en.htm

€300 M for development of the Sudan

2008-05-06T22:02:00.000+01:00

European Commission reaffirms the support to the Sudan Comprehensive Peace Agreement and pledges €300 M for development of the Sudan

The European Commissioner for Development and Humanitarian Aid, Louis Michel, attended today the Sudan Consortium conference in Oslo and announced that the European Commission will allocate further €300 million for development assistance for the five coming years in support of the Comprehensive Peace Agreement (CPA).

Speaking at the Oslo Conference, Commissioner Michel said: “Stability and democracy are vital for Sudan, Africa and the international community. Significant progress has been made since the signing of the Sudan Comprehensive Peace Agreement in December 2004, which brought an end to the oldest and deadliest civil wars in Africa. But much remains to be done. Now that we have reached the crucial mid-point of the Comprehensive Peace Agreement implantation period, it is time for donors to step up their support for Sudan's own efforts to foster democratic renewal throughout the country. The European Union reaffirms its commitment to support the Sudan in its efforts to continue the transition to a peaceful, stable and equitable democracy.”

Commissioner Michel also referred to the situation in Darfur, noting that "it is important that progress is made in the effective and timely deployment of UNAMID and that all parties engage genuinely in the peace process. It is also important that the security and access of humanitarian organisations is guaranteed to continue to provide vital relief to the civilian population which has suffered for far too long from this crisis. In this respect, we are concerned and chocked by reports of the bombing of a village in North Sudan on Sunday”.

Since 2005, the European Commission has effectively disbursed €1,2 billion in assistance to Sudan, including development and humanitarian aid, and support to the African union peace-keeping force (AMIS). This is well above the initial pledge of €500 M made at the April 2005 Oslo pledging conference.

The European Commission will allocate another €300 M for development assistance for the five coming years, in support of the CPA. On top of this, the European Commission will continue to provide vital humanitarian assistance in the order of €100 M for 2008 only.

In the margins of the Sudan Consortium, Commissioner Michel met with Sudanese Vice President Ali Osman Taha. He urged upon the Sudanese parties to stick to their commitments and to fully implementing the CPA and address the remaining contentious issues. He also expressed his concern about the situation in Darfur. He insisted on the importance of the rapid and effective deployment of UNAMID notably to ensuring the access and security of relief workers to the people in need.

Antitrust: Commission confirms sending Statement

2008-05-05T16:47:00.001+01:00

Antitrust: Commission confirms sending Statement of Objections to alleged participants in a marine hoses cartel

The European Commission can confirm that a Statement of Objections has been sent to a number of companies active in the supply of marine hoses, concerning their alleged participation in a cartel in violation of EU rules on restrictive business practices (Article 81 of the EC Treaty and Article 53 of the Agreement on the European Economic Area).
Marine hoses are used to transport crude oil and petroleum products, for example for loading and unloading tanker ships.

Surprise inspections were carried out by the Commission in May 2007 at the premises of several marine hoses producers (see MEMO/07/163).

Procedural background

A Statement of Objections is a formal step in Commission antitrust investigations in which the Commission informs the parties concerned in writing of the objections raised against them. The addressee of a Statement of Objections can reply in writing to the Statement of Objections, setting out all facts known to it which are relevant to its defence against the objections raised by the Commission. The party may also request an oral hearing to present its comments on the case.

The Commission may then take a decision on whether conduct addressed in the Statement of Objections is compatible or not with the EC Treaty’s antitrust rules. Sending a Statement of Objections does not prejudge the final outcome of the procedure.

Questions and answers

2008-05-05T16:46:00.001+01:00

Questions and answers on the visit of Commissioner Kuneva to LEGO facilities

What is LEGO?

LEGO Group is a family-owned toy manufacturer based in Billund, Denmark and founded in 1932. The word "lego" is derived from the Danish "leg godt", or "play well".

Why is Commissioner Kuneva visiting LEGO?

Mrs Kuneva, the Commissioner in charge of Consumer Affairs, has been working with industry, in particular with the toy sector, both in Europe and across the world to ensure that the EU's toy safety requirements are fully understood and correctly implemented across the supply chain. She has underlined that due respect to consumer safety and protection contributes to consumer confidence and therefore also to the sector's competitiveness.

LEGO and other major toy producers, as members of the Toy Industries of Europe, are working particularly hard to ensure high product safety standards and are co-operating with the European Commission and other relevant authorities at EU and national level. Their ideas regarding future actions are regarded by the Commission as essential stakeholder input. The objective of the visit to Lego is to push forward co-operation and consultation of industry stakeholders in the process of the stocktaking and product safety chain evaluation launched by the Commission in September 2007. Different companies have participated in different ways in this process. Other toy manufacturers and importers, such as Hasbro, Mattel and Carrefour, for instance took part in a Commission-led trip in China where facilities were visited in the context of the evaluation of the safety measures in the toy supply chain.

What are industry's responsibilities in ensuring product safety?

Primary responsibility for product safety lies with economic operators: the manufacturer, the importer and the retailer. Anyone involved in making a product available on the EU market has a legal obligation to guarantee the safety of the product. The stocktaking exercise showed that reputable businesses make significant efforts to ensure that their products are safe, and have stringent procedures to check and verify the quality and safety of their goods. However, RAPEX notifications show that there are still major problems with the safety of products being put onto the EU market, especially at the lower end of the market. Further efforts are necessary to ensure that companies are complying in full with the requirement to guarantee the safety of goods destined for the EU consumer.

What are priorities for action in 2008 in this field?

Priority areas for action in 2008 include:

A comprehensive evaluation of business safety measures in the toy supply chain, with results in mid 2008.
Industry education and training on EU toy safety standards for Chinese partners and other players, as well as work to improve recall success rates.
A number of concrete measures to be agreed in 2008 involving manufacturers, retailers, importers, based on a voluntary agreement to rebuild consumer confidence.
What is the state of play of the evaluation of product safety performance in toy businesses?

The Commission is carrying out a project to evaluate the safety measures put in place by businesses in the toy supply chain. This evaluation includes the participation of the toy industry, consumer organisations, Member States, and standardisation and test institute experts. The project is currently ongoing and the aim is to present the final results by the end of May. Nevertheless, preliminary conclusions indicate that one of the main problems is smaller players in the supply chain, who are less well-equipped to deal with safety issues, due to a lack of dedicated personnel, weak quality management systems and poor supplier control.

Smaller importers too struggle with issues such as the classification of toys and age grading. It is clear that competitive pressure on international markets push companies to try to limit costs, but the Commission is working with both business and national authorities to ensure this is does not compromise the level of product safety in the EU. In the final report of the evaluation, recommendations will be made to address these problem areas.

What is the state of play of the voluntary agreement on toy safety?

The Commissioner has invited toy industry to sign up to a voluntary agreement to boost toy safety. This is intended to be implemented in two phases: the first step, which should be concluded by the end of May, will focus on the major toy manufacturers and is aimed at harnessing their expertise in the area of training and education. The second part, which is to follow in the second half of 2008, will address other important players, in particular importers and distributors.

For further information, please visit:

http://ec.europa.eu/consumers/safety/rapex/index_en.htm

Aviation Security: European Commission avoids undue operational complications and inconvenience for passengers on cabin baggage size

2008-05-05T16:42:00.000+01:00

Aviation Security: European Commission avoids undue operational complications and inconvenience for passengers on cabin baggage size

Initial plans to set legal limits at European level to the size of carry-on cabin baggage in airplanes have been withdrawn by a Regulation which comes into force today[1]. In October 2006, security experts initially advised the European Commission to limit the maximum permitted size of cabin baggage throughout the EU to 56 cm x 45 cm x 25 cm. However, introduction was delayed pending in-depth studies and analysis ordered by the Commission. In its efforts to focus only on the most efficient security measures, the Commission considers that the effectiveness of this measure does not justify the additional costs and inconvenience to airline passengers.
Decisions about limits on the size, shape and number of cabin bags will therefore remain, as is the case today, in the hands of individual airlines who will continue to set limits to suit their aircraft. EU Member States will also retain the right to impose stricter limits if necessary to suit local circumstances or to respond to a specific terrorist threat.

Jacques Barrot, Vice President of the European Commission said "We must seek to balance security with passenger convenience. We already have very tough screening rules and before going any further I felt we should really analyse the benefits. In this case it is clear that the inconvenience of additional limits would outweigh the advance in security."

The initial plans[2] were part of a package of measures to improve the efficiency of security screening at airports, in the immediate aftermath of the discovery of an alleged plot to attack civil aviation in August 2006 in the United Kingdom. Restrictions on the size of cabin baggage size were supposed to start in May 2007[3], to allow airlines and airports sufficient time to make the necessary changes to procedures and to inform passengers accordingly. However, the Commission agreed to defer its introduction for another year in order to allow for further studies on the effectiveness of the planned legislation.

The rationale behind the limitation of baggage size was that the task of airport security staff to identify prohibited articles in cabin baggage is made more difficult by the size of the bag since larger bags generally contain more objects. However, studies concluded that the influence of baggage size on overall performance of security staff at airports was far less significant than other factors and that its effectiveness would not justify the additional costs and inconvenience.

The dimension of 56 cm x 45 cm x 25 cm was taken from the international airline organisation IATA, which still recommends this limit to its members as a maximum permitted cabin bag size.

--------------------------------------------------------------------------------

[1] Regulation (EC) no 358/2008, OJ L111 of 23.4.2008, p.5

[2] Regulation (EC) No 1546/2006, OJ L236 of 17.10.2006, p.6

[3] The rulemaking allowed the possibility of some exemptions for oversized cabin baggage containing an item or items both too large to fit within the permitted bag size and valuable or fragile e.g. for musical instruments.

Mergers: Commission approves proposed acquisition of a controlling shareholding in Aker Yards by STX

2008-05-05T16:41:00.000+01:00

Mergers: Commission approves proposed acquisition of a controlling shareholding in Aker Yards by STX

The European Commission has approved under the EU Merger Regulation the proposed acquisition of control of the Norwegian shipbuilder Aker Yards by STX of South Korea. After an in-depth investigation, launched in December 2007 (see IP/07/1979), the Commission concluded that effective competition on the shipbuilding markets would not be significantly impeded as a result of the proposed transaction.
Aker Yards is active in the construction of cruise ships and ferries, and also builds merchant vessels and offshore vessels. It is one of the three main players on the global market for the construction of cruise ships, together with Fincantieri (Italy) and Meyer Werft (Germany).

STX is a Korean shipbuilder mostly active in building various types of cargo vessels, such as container ships or gas tankers. Until now, STX has not built cruise ships or ferries.

On 20 December 2007, the Commission opened ain-depth investigation (see IP/07/1979) because of concerns that the proposed merger might, in particular, remove STX as a potential new market entrant into a concentrated cruise ship manufacturing market.

The Commission’s in-depth investigation of the proposed transaction has however dispelled the initial doubts. The Commission found that by itself STX was still far from close to becoming an effective competitive constraint on the existing cruise ship construction market. The in-depth investigation also showed that STX was not the only possible market entrant and that post-merger a number of other Far-East shipbuilders would be as equally well placed as STX to enter the market.

The Commission also examined a concern brought forward by a third party related to subsidies, that South Korea might have granted or might grant in the future to the merged entity and that might enable the latter to undercut prices and monopolise the cruise ship market.

The Commission found that, regardless of whether any of the financial instruments granted to STX in the past were subsidies, the current financial position of STX would not give the merged entity a dominant position.

In addition, the Commission found no evidence indicating that STX was likely to receive subsidies in the future which could significantly strengthen its financial position and enable it to impede competition in the markets concerned.

In particular, the Commission found that even if the type of future hypothetical subsidies identified by the third party (subsidised loans and guarantees) were granted, the advantage would not be such as to enable the merged entity to acquire a dominant position on the cruise ship market. This is because:

(i) the current financial position of STX would not give the merged entity a dominant position
(ii) Aker Yards is also not currently dominant, as it competes with the market leader Fincantieri and Meyer Werft
(iii) there are a number of structural features of the market such as buyer power of a few large customers, that would make very unlikely any attempts by STX to monopolise the cruise ship construction market based on the alleged subsidised pricing in the current market structure.
The Commission therefore concluded that competition on the market for cruise ships would not be reduced as a result of the transaction. The Commission also analysed the ferries market, where similar concerns were raised, and came to the same conclusion.

The in-depth investigation also confirmed that there are no competition concerns arising from minor overlaps of the merging companies' activities in the area of certain types of cargo ships or from the vertical integration of STX into engine production or shipping services.

More information on the case will be available at:

http://ec.europa.eu/comm/competition/mergers/cases/index/m99.html#m_4956

Commissioner Piebalgs and Minister Khristenko discuss EU-Russia Energy Cooperation

2008-05-05T16:40:00.000+01:00

Commissioner Piebalgs and Minister Khristenko discuss EU-Russia Energy Cooperation

European Energy Commissioner, Andris Piebalgs met the Russian Minister of Industry and Energy Victor Khristenko in Moscow at an official dinner organized by the latter yesterday to discuss EU-Russia Energy Cooperation. Ahead of the G8 Energy Ministers Meeting on 8th June in Aomori in Japan and also ahead of the EU-Russia Summit that will take place on 26 June in Khanty Mansiysk in Russia, they assessed the Russia-EU issues of common interest and prospects of enhanced cooperation in the field of energy.
"My aim during the meeting with Minister Khristenko is to discuss the ongoing energy cooperation between Russia and the EU, especially in the EU-Russia Energy Dialogue and its three Joint Thematic Groups. I would like to share with him my assessment of the situation and agree on ways forward" said Commissioner Piebalgs ahead of the meeting.

Commissioner Piebalgs and Minister Khristenko discussed the Russian position on the establishment of an International Partnership for Energy Efficiency Cooperation (IPEEC) on 8 June in Aomori. Besides, they assessed the work carried on by the Joint Thematic Groups of the EU-Russia Energy Dialogue which have met and discussed extensively since Commissioner Piebalgs and Minister Khristenko last met in October 2007. Their meeting was also an opportunity to discuss the results of the recently achieved EU-Russia electricity interconnection feasibility study by the Unified Power System / Interconnected Power Systems (UPS/IPS) on the Russian side and the Union for the Coordination of Transmission of Electricity (UCTE) on the European side.

The EU-Russia Energy Dialogue was launched at the EU-Russia Summit in 2000 to provide an opportunity to raise all the questions of common interest relating to the sector, including cooperation on energy efficiency, rationalisation of production and transport infrastructures, and reciprocal investment possibilities. The structure of the Energy Dialogue ensures the close involvement of EU Member States, the European energy industry and international financial institutions. The three Thematic Groups bring together over 100 European and Russian experts from the private and public sector and contribute every year to the EU-Russia Progress Report.

Commissioner Kuneva visits LEGO facilities to exchange ideas on toy safety

2008-05-05T16:39:00.000+01:00

Commissioner Kuneva visits LEGO facilities to exchange ideas on toy safety

European Commissioner for Consumers Meglena Kuneva today visited the LEGO toy company in Billund (Denmark), to discuss the important role of industry in ensuring toy safety. The visit comes in the run-up to the conclusion of a voluntary agreement, in which the European toy industry will engage in a common mission to spread best safety practices. The CEO of LEGO Jørgen Vig Knudstorp and Commissioner Kuneva discussed the company's approach to ensuring consumer safety and confidence, and exchanged ideas on how best practice can be promoted around Europe and in third countries. The visit comes on the heels of the publication of the 2007 report on the Rapid Alert System for non-food products (RAPEX), which revealed toys to be the most notified product last year (see IP/08/597).
Commissioner Kuneva said: "I am looking with industry at how they can spread best practice along the production and supply chain, for instance with regard to manufacturers' relations with sub-contractors, suppliers and distributors. LEGO and other members of the Toy Industry of Europe are important partners in my quest to make safety a priority and I am pleased to say they are fully on board. I look forward to the upcoming agreement with industry which will push forward the safety drive in Europe and across the world."

The visit to LEGO

During her visit to LEGO, Commissioner Kuneva had a chance to visit the production area and to see the company's test facilities. She was briefed on LEGO's product safety and testing programme, and discussed the day-to-day measures to ensure toy safety with LEGO experts. The Commissioner also went to the LEGO Idea House, which contains the history and heritage of the LEGO Group and an overview of products from the 75 years of the company’s history.

The Voluntary Agreement on Toy Safety

Commissioner Kuneva is working towards signing a voluntary agreement with representatives of European toy companies in May 2008. Through the agreement, industry will commit to spreading best safety practices throughout the sector and to harnessing expertise in the areas of training, education and cooperation with authorities. In a subsequent phase, the aim is to conclude a further agreement in the second half of 2008, which will target other important players in the toy sector such as importers and retailers.

For further information please visit:

http://ec.europa.eu/consumers/safety/rapex/index_en.htm

More funds for vital investment in EU’s neighbourhood

2008-05-05T16:38:00.000+01:00

More funds for vital investment in EU’s neighbourhood

The EU’s Neighbourhood Investment Facility (NIF) will be formally launched tomorrow, the 6th of May, by Benita Ferrero-Waldner, European Commissioner for External Relations and European Neighbourhood Policy, representatives of EU Member States and ENP[1] partner countries. The NIF is a key instrument of the European Neighbourhood Policy (ENP) and will mobilise additional funding for infrastructure projects mainly in the energy, transport and environment sectors in the entire area of the European Neighbourhood Policy by providing grant support for lending operations of public European financial institutions. The Commission has already made available €100 out of the €700 million it intends to allocate to the NIF for the period 2007-2013. On top of this, the Facility is open to contributions from all EU Member States so that resources from the Community budget and of the EU countries and public financial institutions will be pooled and better streamlined for the benefit of partner countries. Germany (€10 million), Italy (€1 million) and Sweden (€1 million) plan to allocate funds to the NIF in 2008; others Member States are expected to announce their contributions shortly.
Benita Ferrero-Waldner said: "With this Investment Facility we will not only promote the construction of transport and energy infrastructure interconnections between the EU and our neighbours but we will also address common environmental challenges such as the use of renewable energy and the de-pollution of Mediterranean and Black Seas . Concrete projects financed under this facility will bring tangible benefits to citizens of the neighbouring countries and the Union alike and will bring our partners closer to the EU.” And she added: "The NIF is a truly European initiative. I welcome the first contributions from Germany, Italy and Sweden to the NIF and encourage other Member States to use this tool for channelling their support to key investment in our immediate neighbourhood."

Although the NIF will concentrate on the energy, transport and environment sectors, its support may also be provided for SME development and to social sector projects. It is expected that the Facility will generate up to €5-6 billion of lending.

Geographically NIF operations will focus on countries with ENP Action Plans agreed with the EU, namely Armenia, Azerbaijan, Egypt, Georgia, Jordan, Lebanon, Moldova, Morocco, the occupied Palestinian territory, Tunisia and Ukraine[2]. Moreover, on a case by case basis, the other Neighbourhood countries may also profit from NIF grant support for projects of cross border or regional nature to which the EU and its neighbouring partners attach particular interest.

For further information:
http://ec.europa.eu/external_relations/enp/index_en.htm

Commissioners host meeting to boost energy co-operation with Mashreq countries, Iraq and Turkey

2008-05-05T16:37:00.000+01:00

Commissioners host meeting to boost energy co-operation with Mashreq countries, Iraq and Turkey

European Commissioner for External Relations and European Neighbourhood Policy, Benita Ferrero-Waldner, and European Commissioner for Energy, Andris Piebalgs, meet representatives of the Mashrek countries, Iraq and Turkey on 5 May in Brussels to discuss improving energy security in the region and in the EU, in particular by deepening co-operation on natural gas. The meeting will be attended the Minister of Oil and Mineral Resources of the Arab Syrian Republic, Sufian Al-Alao, the Deputy Minister and Chairman of Egyptian Natural Gas Company, Eng Mahmoud Latif, as well as senior officials from Iraq, Jordan, Lebanon, and Turkey. The meeting will support finalisation of the Arab Gas Pipeline, and promote its role as a future supplier of the Nabucco project. It will also encourage the full participation of Iraq in regional energy activities, including as a partner in the Arab Gas Pipeline.
Commissioner Ferrero-Waldner said: “The Mashreq countries, Turkey and Iraq are key energy partners for the EU, and it is important that we fully exploit the potential of our now well-established co-operation. The Arab Gas Pipeline is set to be finalised by the end of the year, opening important possibilities as a new transport route for gas to the EU, particularly for the Nabucco project. This is just one example of how we are working together to integrate our energy markets in our mutual interest. ”

Commissioner Piebalgs said: "The Mashreq countries and the European Union are facing similar energy challenges. We should seek common solutions to common problems like high oil prices for consumers, climate change or security of supply. A common response is necessary with new pipelines like the Arab gas Pipeline, but also with energy efficiency measures, the spearheading renewable energy in both sides of the Mediterranean."

The Arab Gas Pipeline currently runs from Egypt through Jordan to Syria. It has a capacity of 10 billion cubic metres per year. The pipeline, which will be interconnected with Turkey and Iraq by 2009, will provide a new transport route for gas resources from the Mashreq region to the EU. It is expected that, in the future, the pipeline will be connected with the Nabucco project.

During the meetings, discussions will also focus on prospects for reinforcing the existing cooperation through the Euro-Arab Mashreq gas centre in Damascus. The Euro-Arab Mashreq gas centre, which benefits from technical assistance provided by the European Commission, has been working since 2006 on the development of a regional market for natural gas in the Mashreq, with the objective of its progressive integration with the EU gas market. The centre has also provided support to the ongoing work on the completion of the Arab Gas Pipeline.

The meeting is a follow up to the EU-Middle East-Africa Energy Conference co-hosted by the European Commission and Egypt in November 2007 in Sharm El Sheik. The Euro-Mashreq gas initiative is one of the activities within the Euro-Med energy cooperation that is underway in the framework of the Barcelona Process. The Euro-Med Energy Ministers Conference taking place in Limassol, Cyprus in December 2007 agreed on a priority action plan for 2008-2013, which outlined harmonization of regional energy markets as one of the key activities. The European Commission is also strengthening bilateral energy cooperation with the countries in the region. A Memorandum of Understanding on Energy Partnership has been finalised with Egypt and is under discussion with Iraq. A Joint Declaration on energy cooperation between the European Commission and Jordan was signed in October 2007 and is now being implemented.

Further information:
http://ec.europa.eu/external_relations/energy/index.htm

http://ec.europa.eu/external_relations/energy/africa_mideast/index.htm

Presidents of Commission, Council and Parliament discuss climate change and reconciliation with European faith leaders

2008-05-05T16:36:00.000+01:00

Presidents of Commission, Council and Parliament discuss climate change and reconciliation with European faith leaders

On the initiative of the President of the European Commission, José Manuel Barroso, an informal dialogue took place on 5 May in the headquarters of the European Commission, bringing together around twenty high-level representatives of Christianity, Judaism and Islam in Europe. The meeting was co-chaired by European Commission President Barroso, Slovenian Prime Minister and current President of the European Council, Janez Janša, and the President of the European Parliament, Hans-Gert Pöttering. This year's meeting focused on two major challenges facing the European Union: Climate Change and Reconciliation.
This was the fourth annual meeting with religious leaders and the second involving the Presidents of the three EU institutions. The initiative was launched by President Barroso in 2005.

This year, discussions centred around "Climate change: an ethical challenge for all cultures". President Barroso declared: "Climate change obliges all of us to take urgent action. Each part of civil society must contribute to ensuring a sustainable future of our planet. Thanks to their outreach and role in our societies, religions and communities of belief are well placed to make a valuable contribution in mobilising them for a sustainable future. Let's unite in our common endeavour and prove that the preachers of a clash of civilisations are wrong."

The President of the European Council, Janez Janša, insisted: "The environment is not only natural but also a sacred place. Community and loyalty between man, nature and the Creator is a basic principle of Judaism, Christianity and Islam alike. Climate change requires us to rethink how we channel imagination, ingenuity and entrepreneurship into creating a world, free of dependence on fossil fuels, and yet prosperous and connected as never before. This would not mean that we should get away with what we have achieved. We should only rethink our achievements and look at them from a different point of view."

As 2008 is the European Year of Intercultural Dialogue, the high-level meeting is a welcome opportunity to focus also on the topic of "Reconciliation through intercultural and inter-faith dialogue".

EP President Pöttering said "Intercultural dialogue is a key instrument to building bridges between people and to safeguarding peace based on mutual respect. Intercultural dialogue therefore is also an important contribution to the European Union's relations with its neighbouring countries, in particular in the Mediterranean region".

Participants of the meeting shared their views on the two main themes and agreed on the essential role of religions and communities of belief in tackling our common challenges and mobilising our societies for a sustainable future. Participants demonstrated their willingness and commitment to continue this important dialogue, among themselves and with the European institutions.

Commissioners Benita Ferrero-Waldner and Ján Figel' as well as European Parliament Vice President Mario Mauro also took part in the religious leaders' meeting.

http://www.interculturaldialogue2008.eu/

List of participants: see MEMO/08/281

March 2008: Euro area unemployment stable at 7.1%

2008-05-04T21:22:00.002+01:00

The euro area1 (EA15) seasonally-adjusted unemployment rate2 stood at 7.1% in March 2008, unchanged compared with February3. It was 7.5% in March 2007. The EU271 unemployment rate was 6.7% in March 2008, also unchanged compared with February3. It was 7.3% in March 2007.
Eurostat estimates that 15.993 million men and women in the EU27, of which 10.930 million were in the euro area, were unemployed in March 2008. Compared with February 2008, the number of persons unemployed decreased by 93 000 and 26 000 respectively. Compared with March 2007, unemployment was down by 1.4 million in the EU27 and by 0.6 million in the euro area.
These figures are published by Eurostat, the Statistical Office of the European Communities.
Among the Member States, the lowest unemployment rates were registered in the Netherlands (2.6%) and Denmark (3.1% in February), and the highest in Slovakia (9.8%) and Spain (9.3%).
Over the last year, twenty-three Member States recorded a fall in their unemployment rate and four an increase. The largest falls were observed in Poland (10.3% to 7.7%), Bulgaria (7.5% to 5.9%) and Slovakia (11.3% to 9.8%), and the highest increases in Spain (8.1% to 9.3%) and Ireland (4.6% to 5.6%).
The unemployment rate for males fell from 6.7% to 6.3% between March 2007 and March 2008 in the euro area and from 6.7% to 6.2% in the EU27. The female unemployment rate declined from 8.6% to 8.0% in the euro area and from 8.1% to 7.3% in the EU27.
In March 2008, the youth unemployment rate (under-25s) was 14.5% in the euro area and 14.6% in the EU27. In March 2007 it was 14.9% and 15.7% respectively. The lowest rates were observed in the Netherlands (5.0%) and Denmark (6.8% in February), and the highest in Greece and Italy (both 21.8% in the fourth quarter 2007).
The unemployment rate was 5.1% in the USA in March 2008, and 3.9% in Japan in February 2008.[ Figures and graphics available in PDF and WORD PROCESSED ]
The euro area (EA15) consists of Belgium, Germany, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia and Finland.
The EU27 includes Belgium (BE), Bulgaria (BG), the Czech Republic (CZ), Denmark (DK), Germany (DE), Estonia (EE), Ireland (IE), Greece (EL), Spain (ES), France (FR), Italy (IT), Cyprus (CY), Latvia (LV), Lithuania (LT), Luxembourg (LU), Hungary (HU), Malta (MT), the Netherlands (NL), Austria (AT), Poland (PL), Portugal (PT), Romania (RO), Slovenia (SI), Slovakia (SK), Finland (FI), Sweden (SE) and the United Kingdom (UK).
Eurostat produces harmonised unemployment rates for individual EU Member States, the euro area and the EU. These unemployment rates are based on the definition recommended by the International Labour Organisation (ILO). The measurement is based on a harmonised source, the European Union Labour Force Survey (LFS).
According to the International Labour Organisation (ILO), unemployed persons are defined as persons who:
- are without work;
- are available to start work within the next two weeks;
- and have actively sought employment at some time during the previous four weeks.
Eurostat restricts this definition to people aged 15 to 74.
The unemployment rate is the number of people unemployed as a percentage of the labour force. The labour force is the total number of people employed and unemployed.
The numbers of unemployed and the monthly unemployment rates are estimates based on results of the LFS which is a continuous household survey carried out in all countries on the basis of agreed definitions. These results are interpolated/extrapolated to monthly data using national survey data and/or national monthly series on registered unemployment. The most recent figures are therefore provisional; first results from the Labour Force Survey are available 90 days after the end of the reference period for most Member States. Technical details on the calculations for each Member State can be found on the Eurostat internet site under Data / Population and social conditions / Labour market / Employment and unemployment / LFS main indicators, together with more detailed tables.
Monthly unemployment and employment series are calculated first at the level of four categories for each Member State (males and females 15-24 years, males and females 25-74 years). These series are then seasonally adjusted and all the national and European aggregates are calculated.
Member States may publish other rates such as register based unemployment rates, or other rates based on national Labour Force Surveys or corresponding surveys. These rates may vary from those published by Eurostat due to different definition or methodological choices.
Current deviations from the definition of unemployment in the EU Labour Force Survey:
Spain, United Kingdom: Unemployment is restricted to persons aged 16-74. In Spain the legal age limit for working is 16.
Netherlands: Persons without a job, who are available for work and looking for a job are only included in unemployment if they express that they would like to work.
The February 2008 unemployment rates published in News Release 44/2008 of 1 April 2008 for the euro area and the EU27 remain unchanged. As a regular update of the calculation process, the most recent EU Labour Force Survey data have been included for several Member States. This has caused a revision in the monthly unemployment rates of more than 0.1 percentage points for Denmark and Ireland.
Provisional data: the Swedish Labour Force Survey was amended in April 2005 to take further account of the EU harmonised methodology. This break in the series may affect the reliability of the seasonal adjustment.
Greece, Italy and Romania: quarterly data for all series.
Estonia, Cyprus, Latvia, Lithuania and Slovenia: quarterly data for youth unemployment.

Full graphics

April 2008: Economic sentiment declines markedly in both the EU and the euro area

2008-05-04T21:19:00.000+01:00

April 2008: Economic sentiment declines markedly in both the EU and the euro area

In April, the Economic Sentiment Indicator (ESI) decreased by 3.8 points in the EU and by 2.5 points in the euro area, to 98.1 and 97.1 respectively. The fall in the EU indicator more than offset the rebound registered in March. In both regions, the ESI now stands below its long-term average.Economic sentiment indicator (s.a.)
EU: April 98.1
Euro area: April 97.1
[ Figures and graphics available in PDF and WORD PROCESSED ]
The decrease in the sentiment indicator for the EU reflects a decline in confidence across all five sectors, with a marked drop in services and retail trade. In the euro area, sectoral developments were broadly similar; with the exception of consumer confidence, which remained unchanged from March.
A large majority of countries reported decreasing sentiment in April. Confidence is worsening in all large Member States, notably so in the UK (-8.9). The declines are more moderate in the Netherlands (-4.5), Spain (-3.2), and France (-2.5), while they are small in Italy (-1.6), Poland (-1.4), and Germany (-1.2).
Industrial confidence indicator (s.a.)
EU: April -2
Euro area: April -2
[ Figures and graphics available in PDF and WORD PROCESSED ]
In April, the industrial confidence indicator declined in both the EU and the euro area. The indicator remains above its long-term average in both areas, but the gradual downward trend continues.
In both regions, the decline of the indicator was mainly caused by industrial managers' negative assessment of their order books. Managers' production expectations also contributed to the decline in the EU, while they remained stable in the euro area. Their views regarding the stocks of finished products also worsened in the euro area, while they remained unchanged in the EU.
Industrial confidence decreased in all large Member States. The decline was significant in the UK (-6), while the fall was more moderate in other large Member States: France (-3), Italy (-3), the Netherlands (-2), Poland (-2), Germany (-1), and Spain (-1).
Service confidence indicator (s.a.)
EU: March 6
Euro area: April 7
[ Figures and graphics available in PDF and WORD PROCESSED ]
In April, the services confidence indicator decreased in both the EU and the euro area. The indicator stands below its long-term average in both areas, and has been on a downward trend since June 2007.
The decline of the two indicators was caused by a worsening in all three underlying components. Managers' assessment of the recent evolution of demand deteriorated markedly. Their appraisal of the current business situation and demand expectations worsened as well, albeit to a lesser extent.
The majority of countries reported decreases in sentiment in April. Among the large Member States, services confidence decreased considerably in the UK (-17), and to a smaller extent, in Spain (-6), Germany (-3), the Netherlands (-3), and France (-2). By contrast, confidence improved slightly in Italy (+1), and remained stable in Poland.
Consumer confidence indicator (s.a.)
EU: April -12
Euro area: April -12
[ Figures and graphics available in PDF and WORD PROCESSED ]
Consumer confidence declined somewhat in the EU, but remained unchanged in the euro area. While the EU indicator continues to slide further down, confidence in the euro area has been stable for four consequtive months. In both areas, the indicator is below its long-term average.
Households' expectations regarding their own financial situation and the general economic situation declined slightly, while their views on their own savings over the next 12 months improved. The only diverging component was expectations regarding unemployment over the next 12 months, which remained stable in the euro area, but fell in the EU.
At the individual country level, the picture is mixed. Among the large Member States, consumer confidence increased in Germany (+2), Italy (+2), and Poland (+2), while it decreased in Spain (-6), the UK (-3), and the Netherlands (-2). Consumer confidence was stable in France.
Retail trade confidence indicator (s.a.)
EU: April -6
Euro area: April -5
[ Figures and graphics available in PDF and WORD PROCESSED ]
In April, retail confidence fell significantly in both the EU and the euro area. Following a peak in August 2007, confidence has been on a declining trend in both areas. Retail confidence is just above its long-term average in the euro area, but it dropped below its average in the EU
In both areas, all three components of the indicator have deteriorated. Their views on the present business situation worsened the most, but also the expected business situation was considered to have declined markedly. Retailers' assessment of the volume of stocks worsened the least.
Retail confidence decreased in all the large Member States: the UK (-16), Germany (-8), Spain (-8), Italy (-6), Poland (-3), and France (-1).
Construction confidence indicator (s.a.)
EU: April -11
Euro area: April -12
[ Figures and graphics available in PDF and WORD PROCESSED ]
The construction confidence indicator continued to weaken in both the EU and the euro area. The indicator has been on a downward trend since the autumn of 2006, but it still stands above its long-term average.
The underlying components show that construction managers' assessment of order books declined in both regions. Furthermore, managers' employment expectations became more negative compared to the previous month.
Most countries reported decreases in sentiment in April. Among the large Member States, construction confidence weakened in the Netherlands (-5), Germany (-4), France (-4), Italy (-4), Poland (-4), and Spain (-1), while it remained unchanged in the UK.
Financial services confidence indicator (n.s.a.)
EU: April 6
Euro area: April 8
[ Figures and graphics available in PDF and WORD PROCESSED ]
In April, the financial services confidence indicator remained stable in the EU at its lowest level since the beginning of this survey, while it decreased further to an all-time low in the euro area.
In both regions, managers' assessments of the past evolution of demand deteriorated, while the expected evolution of demand improved in the euro area and remained stable in the EU. Managers' judgments concerning the business situation over the past three months were also different in the two areas: it improved in the EU and worsened in the euro area.
The next Business and Consumer Survey is due to be published on 29 May 2008.
Full tables are available on:
http://ec.europa.eu/economy_finance/db_indicators/db_indicators8650_en.htm

April 2008: Business Climate Indicator for the euro area declines in April

2008-05-04T21:18:00.002+01:00

April 2008: Business Climate Indicator for the euro area declines in April

After a slight rebound in March, the Business Climate Indicator (BCI) for the euro area decreased again in April. The current level of the indicator still continues to suggest above historical average industrial production growth, but the decline points to a weakening of the monthly growth rates in the second quarter of 2008.
Nearly all the components of the BCI worsened, production expectations being the only exception, which remained unchanged. Industry managers' appraisals of the production trend in recent months and of their total order books deteriorated sharply. Their assessments concerning export order books and stocks of finished products declined more moderately.
[ Figures and graphics available in PDF and WORD PROCESSED ]
The BCI is based on a factor analysis of the euro area aggregate balances (seasonally adjusted) of five of the monthly questions in the industry survey (only employment and selling-price expectations are excluded).
[ Figures and graphics available in PDF and WORD PROCESSED ]
Full details of the Business Climate Indicator are available on the Europa website:
http://ec.europa.eu/economy_finance/db_indicators/db_indicators8650_en.htm
The next BCI Results are due to be published on 30 April 2008.

State aid: Commission approves rescue aid for WestLB

2008-05-04T21:18:00.001+01:00

State aid: Commission approves rescue aid for WestLB

The European Commission has authorised, under the EC Treaty’s rules on state aid, a risk shield granted by the State of North Rhine-Westphalia to protect WestLB against the volatility of its € 23 billion structured investment portfolio, following difficulties because of the subprime crisis in the financial markets. The Commission's investigation found that the risk shield constitutes state aid, but that the aid is in line with EU rules on rescue aid because strict conditions ensure that the aid is limited in time and reversible. The approval of the rescue aid does not prejudice the Commission's assessment of the restructuring plan Germany has committed to submit by 8th August 2008.
Competition Commissioner Neelie Kroes said: "The Commission has demonstrated again that it can move very fast in order to provide legal certainty and financial stability to banks in difficulty. I look forward to continuing the good cooperation with the German authorities on the forthcoming restructuring of WestLB."
WestLB AG is a European commercial bank based in North Rhine-Westphalia, Germany's largest federal state. With total assets of €285.3 billion as at 31 December 2006, it is a major German financial services provider. As one of the seven independent German Landesbanken, it is the institution acting as a central bank for savings banks in NRW and Brandenburg, and as an internationally operating commercial bank it acts as their link to global financial markets.
Following intensive contacts between the German authorities and the Commission, Germany submitted a notification of the risk shield on 27th March 2008 and further information on 11th April 2008.
The Commission concluded that the measure was in line with the EU Guidelines on state aid for rescuing and restructuring firms in difficulty. Under these rules, rescue aid must in principle take the form of loans or guarantees lasting no more than six months, with certain exceptions for the banking sector, in order for banks to meet special prudential requirements. To avoid undue distortions of competition, WestLB will either present a restructuring plan or reverse the economic effects of the risk shield after six months, including the repayment of any amounts drawn under the guarantee. The reversibility of effects distinguishes the aid to WestLB from other state-guaranteed risk shields which the Commission is currently investigating.
Background
Since the end of 2007 the ongoing turmoil in the financial markets affected WestLB's structured portfolio investments of about €23 billion, which include exposures to US subprime real estate loans. WestLB was unable to refinance the structured portfolio by selling notes on the market and the mark-to-market loss that had to be accounted for in the balance sheet was so significant that it would have pushed WestLB's capital ratios towards the required minimum level. The public owners (the State of North Rhine-Westphalia, NRW Bank, two regional savings banks associations and two municipal associations) therefore announced on 8 February 2008 the transfer of the crisis-ridden assets from WestLB to a special purpose vehicle and to provide a risk shield of €5 billion. The bank announced to step-up restructuring plans and to seek to promote consolidation in the German public banking sector.
The non-confidential version of the decision will be made available under the case number NN 25/2008 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

State aid: Commission endorses €143 million aid to Ford for two large investment projects in Craiova, Romania

2008-05-04T21:16:00.001+01:00

State aid: Commission endorses €143 million aid to Ford for two large investment projects in Craiova, Romania

The European Commission has authorised, under EC Treaty state aid rules, €143 million of aid, which the Romanian authorities intend to grant to Ford for the production of vehicles and engines in Craiova, in the South West of Romania. The Commission found the measure to be compatible with the requirements of the Regional Aid Guidelines 2007-2013 (see IP/05/1653) and in particular with the rules on large investment projects. Ford's two projects involve investments of €600 million in total. They are expected to significantly increase direct and indirect employment while at the same time stimulating investment by suppliers and a transfer of leading-edge technology, thus benefiting the further development of the region.
Competition Commissioner Neelie Kroes said: “I am pleased to approve aid for these important investment projects which are expected to create more than 40 000 direct and indirect jobs in the region of Craiova."
Ford's investment projects are aimed at the extension, modernisation and fundamental overhaul of two existing plants purchased by Ford to manufacture vehicles and engines respectively. For the first five years, the new engines manufactured at the Ford Craiova plant will almost exclusively be used within the Ford group. The total investment costs taken into consideration for the calculation of the aid amount to €435 million for the vehicle project and to €165 million for the engine project, while the actual aid amounts are €94 million and €49 million respectively.
The project is to be carried out in Dolj County, in the South West region of Romania, eligible for regional aid under Article 87(3)(a) of the EC Treaty as a region with an abnormally low standard of living and high unemployment. The Romanian authorities expect that, based on the standard auto industry calculation parameters, more than 40 000 direct and indirect jobs will be created. Numerous suppliers to vehicle and engine production are expected to invest in facilities in the vicinity of the plants. Moreover, Ford indicated that it would actively encourage technology transfer in the region to develop a substantial local supply base.
The aid is not granted under an existing aid scheme. Moreover, due to the high amounts of aid and investment costs involved, the measure had to be notified to the Commission for individual assessment and clearance.
The Commission’s assessment of regional aid to large investment projects aims to verify whether the market share of the beneficiary and the production capacity created by the investment remain below the thresholds set in the Regional Aid Guidelines. In case the thresholds are not exceeded, the effect of the aid on competition is deemed to be outweighed by its positive contribution to regional development.
The Commission considered several plausible relevant markets from a broad definition involving passenger cars to a very narrow definition involving only multi-purpose subcompact cars. It found that Ford's share would remain below the 25% threshold on all relevant product markets, both before and after the planned investment.
The Commission also verified the capacity increase generated by the project. Its analysis concluded that, in the relevant product segments, where the market was declining compared to the EEA growth rate, the additional production capacity created through the project would remain below 5% of the apparent consumption of the product concerned in the EEA.
The Commission previously assessed the sale of the Automobile Craiova assets to Ford under the state aid rules and adopted a decision on 27 February 2008 (see IP/08/315). The Commission considered the aid linked to the privatisation as unlawful and incompatible and consequently ordered the beneficiary to repay €27 million. The Romanian authorities committed to suspend the payment of the regional aid endorsed in today's decision until the beneficiary reimburses the aid earlier declared incompatible.
The non-confidential version of the decision will be made available under the case number N 767/2007 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

State aid: Commission requests Austria to recover around €55 million from buyer of Bank Burgenland

2008-05-04T21:15:00.000+01:00

State aid: Commission requests Austria to recover around €55 million from buyer of Bank Burgenland
The European Commission has decided under EC state aid rules that Austria must recover some €55 million from Austrian insurance group Grazer Wechselseitige (GRAWE) following an in-depth investigation into the privatisation of Bank Burgenland. The investigation, opened in December 2006 (see IP/06/1849), found that the Austrian regional government of Land Burgenland had not behaved like a private market seller when it sold Bank Burgenland to the second highest bidder, GRAWE, disregarding a substantially higher offer from an Austro-Ukrainian consortium. The Commission decision confirms that a public vendor needs to clearly distinguish its role as a seller of an asset on an open market, and its role as a public authority who had granted state aid in the form of a guarantee to Bank Burgenland. A private seller would not have taken existing guarantee liabilities into consideration but would have taken the highest bid. By not doing so, Land Burgenland provided an undue competitive advantage to GRAWE that constitutes incompatible state aid. To remedy the distortion of competition and eliminate the aid, Austria must therefore recover the advantage from GRAWE, , on the basis of the difference between the price offered by the Austro-Ukrainian consortium and the price paid by GRAWE, i.e. around € 55 million.
Competition Commissioner Neelie Kroes said: “Through the recovery of the aid from GRAWE, Land Burgenland will receive what Bank Burgenland was worth at the time of the sale. The Commission has an obligation to intervene in such cases where there is a distortion of competition. "
The privatisation of Bank Burgenland was a condition for the approval of a restructuring aid for Bank Burgenland by the Commission in 2004. In March 2006, following a third and finally successful public tender, Land Burgenland sold Bank Burgenland to GRAWE for €100.3 million. However, a consortium of the Austrian companies SLAV AG and SLAV Finanzbeteiligung GmbH and of the Ukrainian joint stock companies Ukrpodshipnik and Ilyich, the only other bidder at the final stage, had offered €155 million.
Following a complaint by the Consortium, the Commission opened a formal investigation (see IP/06/1849) to examine whether a private market operator would have considered GRAWE's lower offer to be the best bid. If that was not the case, Austria would have foregone state revenues of around €55 million and GRAWE would have received an economic advantage of the same value.
The Commission's investigation revealed that Austria's decision was largely driven by the existence of 'Ausfallhaftung', a legal guarantee given by Austria that covered at the time of the sale around €3.1 billion of Bank Burgenland liabilities. That coverage which would remain in place after the privatisation for existing liabilities and be phased out until 2017.
Austria claimed that the sale to GRAWE at a much lower price was justified by the reduced risk of drawing on its guarantee obligation deriving from 'Ausfallhaftung'. Austria further argued that GRAWE had indeed paid a price above the value set by prior evaluations and, given all circumstances, had presented the best bid.
In its assessment, the Commission applied the fundamental principle that the roles of the State as a market participant (here: seller of an asset) and as public authority (here: grantor of state aid) must be clearly distinguished. The Commission therefore concluded that the risks related to 'Ausfallhaftung' should not have been taken into account in the assessment of the bids: the guarantee was provided by the state pursuing a public interest goal and not an economic objective as a market participant. Moreover, the Commission found that, even if the guarantees were taken into account, the risk of insolvency of Bank Burgenland after a sale to the consortium compared to the risk after a sale to GRAWE was not such as to outweigh the reduced price GRAWE hadpaid. Furthermore, the Commission clarified that the market price of Bank Burgenland had been established by a public tender and therefore prior evaluations were irrelevant
The Austrian authorities also argued that the Financial Market Authority would not have authorised a sale to the Austro-Ukrainian consortium. The Commission found no evidence to support this argument.
In the absence of an objective justification, acceptable to a private market vendor, to accept a significantly lower price for the sale of Bank Burgenland, the price difference between the two offers gives an unfair advantage to GRAWE over its competitors and constitutes incompatible state aid that needs to be recovered.
The recovery of the aid is based on the nominal price difference between the two bids, amounting to €54.7 million. As the final bids differ in a number of points, Austria will have to determine the exact aid amount by adjusting this nominal value difference accordingly.
Background
Until privatisation, Bank Burgenland still benefited from 'Ausfallhaftung'. Following an agreement between the Commission and Austria under EU state aid rules (E 8/2002) 'Ausfallhaftung' had to be abolished by 1 April 2007.
The non-confidential version of the decision will be made available under the case number C 56/2006 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.
See also MEMO/08/282.

State aid: Commission approves £3.4 million public funding for broadband in Scotland

2008-05-04T21:14:00.000+01:00

State aid: Commission approves £3.4 million public funding for broadband in Scotland
The European Commission has authorised under the EC Treaty state aid rules £3.4 million (€4.32 million) of public funding for a broadband measure in remote and rural areas of Scotland. The measure is the final step to bring affordable broadband services to all Scottish citizens. The Commission concluded that the aid is well-targeted to achieve this objective and contains adequate safeguards to ensure that Scottish citizens will enjoy the benefits of a competitive broadband market.
Competition Commissioner Neelie Kroes commented: “I am pleased to endorse public funding that will allow residential and business users in Scotland, who still do not have access to affordable broadband services, to reap the full benefits of the knowledge-based economy.”
In 2004, the Commission approved a UK state aid measure that increased broadband coverage to 99% of Scottish households (see IP/04/1371). The objective of this second measure is to extend the coverage to the remaining 1% of households in Scotland that still do not have affordable broadband services.
The project is fully in line with the Commission’s policy to promote widespread and affordable broadband services to all European citizens and complies with the EU state aid rules that allow aid to facilitate the development of certain economic activities or areas where such aid does not unduly affect trading conditions between Member States (Article 87(3) (c) of the EC Treaty).
At the end of its investigation, the Commission concluded that the public funding is necessary to provide affordable broadband services to the population of Scotland in the targeted areas. At the same time, the measure contains several safeguards to ensure that the aid amount is kept to a minimum and that telecommunication operators will have non-discriminatory access to the wholesale services.
The non-confidential version of the decision will be made available under the case number N 14/2008 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

State aid: Commission endorses €1.1 billion public service compensation for ‘Poste Italiane’ for 2006-2008

2008-05-04T21:12:00.001+01:00

State aid: Commission endorses €1.1 billion public service compensation for ‘Poste Italiane’ for 2006-2008

The European Commission has decided not to raise objections under EC Treaty state aid rules to €1.1 billion compensation Italy granted to ‘Poste Italiane’ from 2006 to 2008 to meet the costs of fulfilling its universal postal service obligations. The state support is in line with EU rules on public service compensation because it does not over-compensate ‘Poste Italiane’ for providing these services, and so does not allow for cross-subsidies for other activities.
Competition Commissioner Neelie Kroes said: “I am satisfied that the compensation for ‘Poste Italiane’ is sufficient to allow It to fulfil its public service obligations without unduly distorting competition.”
Poste Italiane is the universal postal service provider in Italy. Over the period 2006-2008 Poste Italiane received €1.1 billion compensation for discharging the universal postal service obligations entrusted to it.
The European Court of Justice in its judgment in the Altmark case (C-208/00) of 24 July 2003 established four criteria for assessing whether compensation for public service obligations constitutes state aid:
(i) explicit entrustment of the public service obligation
(ii) objective, transparent and pre-defined conditions for compensation
(iii) no over-compensation and
(iv) choice of the least costly provider through an open tender or a level of compensation based on the costs of a typical, well run company.
As ‘Poste Italiane’ was not chosen pursuant to a public procurement procedure, the state intervention does constitute state aid.
In line with the EU framework on state aid in the form of public service compensation, such aid may be declared compatible where it does not exceed the costs incurred for providing the public service. The Commission's investigation revealed that Poste Italiane’s net costs for delivering the universal postal service obligations from 2006 to 2008 exceeded the financial support granted by Italy over this period. Thus, the state support under-compensated the net public service cost of providing the universal postal service and is therefore compatible with EC Treaty state aid rules.
The non-confidential version of the decision will be made available under the case number NN 24/2008 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

State aid: Commission prohibits planned €9.56 million aid to IBIDEN Hungary

2008-05-04T21:07:00.001+01:00

State aid: Commission prohibits planned €9.56 million aid to IBIDEN Hungary

The European Commission has prohibited, under EC Treaty state aid rules a Hungarian regional investment aid of €9.56 million in favour of IBIDEN Hungary Gyártó Kft. IBIDEN produces substrates for diesel particulate filters. A Commission in-depth investigation, launched in July 2007 (see IP/07/1071), revealed that the project was not in line with the requirements of the EU rules on regional aid and in particular with the 2002 Multisectoral Framework on regional aid (see IP/02/242). Notably, IBIDEN's market share was found to exceed the relevant 25% threshold. As the aid has not yet been granted, it was not necessary to order its recovery.
Competition Commissioner Neelie Kroes said “I am determined to take a restrictive line on aid for large investment projects which distorts competition in favour of a significant market player and is liable to cause a considerable distortion of trade between Member States."
IBIDEN Hungary Gyártó Kft., a Hungarian subsidiary of IBIDEN Co. Ltd., which has its headquarters in Japan, produces ceramic substrates for Diesel Particulate Filters (DPFs) in Dunavarsány, Hungary. DPFs, which are used for treating soot and other insoluble particulate matter in exhaust emissions, are one key part of the exhaust gas treatment system of diesel passenger cars and light duty trucks. The other key part is Diesel Oxidation Catalysts (DOC), which treat gases (i.e. Carbon Oxides and Hydrocarbons) and to a certain extent the soluble organic fraction (SOF) of particulate matter.
On 10 July 2007 the Commission opened a formal state aid investigation procedure (see IP/07/1071), as it had doubts as to the compatibility of the aid with the Single Market. In particular, the Commission investigated whether the DPF market could be considered as separate from the DOC market. Indeed, to comply with the Commission's 2002 Multisectoral Framework on regional aid for large investment projects or MSF (see IP/02/242), IBIDEN's market share on the relevant market could not exceed 25%.
The MSF 2002 sets out the conditions for granting aid for very large regional investment projects. Besides a general reduction of aid intensities for large investments with regard to the general regional aid ceiling, the MSF 2002 restricts the amount of aid that can be given to companies with a market share of over 25% because of concerns that aid in these circumstances would reinforce the market power of the beneficiary at the expense of its competitors.
During the investigation the Commission received comments from the Hungarian authorities and four interested parties, including the aid beneficiary. The comments confirmed the Commission's initial doubts. The Commission therefore concluded that the relevant product market covers only substrates for Diesel Particulate Filters to be fitted in the exhaust systems of diesel passenger cars and light duty trucks. The Commission also established that the market share of IBIDEN in the DPF market in Europe substantially exceeds the 25% threshold both before and after the investment.
The high market share of IBIDEN reflects the prevailing position of the company in the DPF market: it is one of the two major filter substrate manufacturers in the world. The aid would have strengthened even more IBIDEN's leading position in this market, making it more difficult for new competitors to enter the market and for new entrants to consolidate their position on this market.
In line with the rules on regional aid (see IP/97/1137), IBIDEN had already received aid worth €29.73 million in the form of a direct grant and a corporate income tax allowance on the basis of existing regional aid schemes. The €9.56 million aid concerned by this decision was intended as an additional support.
The non-confidential version of the decision will be made available under the case number C 21/2007 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

Commission authorises a research and development aid scheme for public transport in Germany

2008-05-04T21:05:00.000+01:00

Commission authorises a research and development aid scheme for public transport in Germany

The European Commission has authorised today a State aid measure by Germany aimed at supporting the development of an electronic fare management system for public transport, the so-called "e-ticketing system". The approved State aid amounts to approximately € 9.75 million and will be granted between 2007 and 2009.
The e-ticketing system will allow selling transport services via chip cards of transport companies or banks as well as through mobile phones. It should attract more consumers to use transport public services, and facilitate the use of such services by people with restricted mobility. Development of the system requires industrial research and experimental development work, which will be aided through the approved subsidies.
The Commission concluded today that the aid is consistent with the requirements of the Community Framework for State aid for research, development and innovation, adopted in 2006 (see IP 06/1600). Notably, it concludes that the aid will have an incentive effect, in that it will encourage the beneficiaries to devote more effort to research and development projects than they would otherwise, and that it respects the limits set in the framework in terms of aid amounts in comparison to eligible costs.

The Commission gives the go-ahead to funding to modernise railway rolling stock in the Czech Republic

2008-05-04T20:59:00.003+01:00

The Commission gives the go-ahead to funding to modernise railway rolling stock in the Czech Republic

Today the Commission approved an aid programme for the acquisition and modernisation of rolling stock in the Czech Republic. The Czech Government is set to spend CZK 4 800 million (EUR 173 million) under this programme between 2008 and 2013.

In the Czech Republic, as in most of the new Member States, the average age of passenger rolling stock is too high. Under the programme, aid will be granted to modernise railway transport within the framework of public service contracts. This will boost the modernisation of the Czech Republic’s rolling stock and make public rail transport more attractive than private transport, which often generates more pollution.
On the basis of the criteria laid down by the relevant legislation,[1] the Commission has verified that this scheme will provide the appropriate funding for the necessary modernisation of railway rolling stock in the Czech Republic and will not unduly distort competition to the detriment of those operators not receiving aid. This decision is part of a wider Commission initiative to promote the modernisation of railway rolling stock in the European Union. Under the Community guidelines on State aid for railway undertakings, the Commission is currently opening up new funding opportunities for wagons and locomotives (see IP/08/674).

[1] Council Regulation (EEC) No 1191/69 of 26 June 1969 (OJ L 156, 28.6.1969, p. 1) as amended by Council Regulation (EEC) No 1893/91 of 20 June 1991 (OJ L 169, 29.6.1991, p. 1).