No Easing of Rules on Euro Entry, Says Juncker Deal Secured on Vat Rates

Employment Council Lisbon Treaty Interview Globalisation fund revision EP remains vague on appointment Jacques Barrot, justice, freedom & sparks lively debate Page 11 of head of executive Page 13 security commissioner Page 20 EUROPOLITIcs

The European affairs daily Wednesday 11 March 2009 N° 3711 37th year

Focus Eurogroup No easing of rules on Deal secured euro entry, says Juncker on VAT rates By Sarah Collins so. There have been growing calls from By Sarah Collins Hungary and other non-eurozone coun- There is no question of changing the tries to relax the criteria during the crisis. criteria for joining the euro, according to The Eurogroup meeting, which comes A lengthy discussion on reduced VAT Luxembourg’s Prime Minister and Euro- ahead of crucial talks among all 27 Euro- rates threatened to overshadow a group President Jean-Claude Juncker. At pean finance ministers, on 10 March, also meeting of EU finance ministers, on a meeting of the 16 10 March, but a political agreement countries using the was hammered out after a three-hour euro, on 9 March delay: the 27 member states have now in Brussels, he said agreed on a short list of services that that the credibility will be eligible for lower VAT rates of of the monetary around 5%. They include restaurant union was at stake. services, home repairs, hairdressing, “We have a mon- child and elderly care in the home etary union which and certain clothing and footwear doesn’t have a cen- repairs. All types of books, including tral authority, there is e-books, will be covered by the rules no central state, and from 2010, after the period under the the whole essence current directive expires. “We man- of the system is and © CE aged to speak a common European must be based on a Juncker: “No question of changing the criteria” language even if strong national set of rules. Those interests are at stake,” said Czech rules are made up of the treaty and the highlighted the deteriorating position of Finance Minister Miroslav Kalousek Stability and Growth Pact and there is no the EU’s economy. The European Central after the decision. question of changing the criteria for join- Bank last week revised its macroeconomic However, three EU countries will need ing.” He added that there was no chance of forecast for 2009, predicting annual real to get national approval before they cutting the amount of time a country must GDP growth of between -0.7% and +0.7% can officially sign up to the agree- remain in the Exchange Rate Mechanism in 2010 - down from last December’s pre- ment. Portugal will also be allowed to (ERMII), where aspirant countries have diction of between 0.5% and 1.5%. The maintain reduced rates on its bridges, to maintain their currencies within a 15% European Commission will present an and Cyprus on LPG gas cylinders. range of the euro for two years. “There is updated forecast in May, which will mirror The Commission has been asked to no question of bringing this from two years the ECB’s revision. “We have seen con- come to a decision on the possibility to one year,” Juncker said. Member states siderable deterioration in the economic of Malta retaining a zero rate on food are obliged to join the euro following their situation since our February meeting,” said under certain conditions. accession to the EU, but must meet strict Juncker. “All forecasts we have available are budgetary, price and interest rate criteria, extremely gloomy, so this is a deep reces- as well as stabilising exchange rates, to do sion we’re going (continued on page 8)

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Contents N° 3711 Top Stories

Business & competitiveness Financial services, banks, External relations Mobile telephony: insurance EU/BiH: Think tank warns against EP fine-tunes roaming regulation Financial markets: Ministers keen early transfer of powers in Bosnia...... 14 to consumers’ benefit...... 4 to regulate credit rating agencies ...... 9 Banking: ECON committee votes Trade policy Sectoral policies in favour of stricter capital rules...... 10 EU/US: Obama’s top trade Fisheries: ECJ condemns Financial markets: Commission negotiator not so hot on Doha...... 15 France over ‘thonaille’ nets...... 5 drafting guidelines on supervision...... 10 Drug trafficking: Report: Global In Brief market stable for last decade ...... 5 Social affairs Debate on GMOs rejected in plenary.....15 Environment: EP wants stricter Working Time Directive: It is EIB loan for research in Denmark...... 15 supervision of pollutant emissions...... 6 time for conciliation ...... 10 MEPs give go-ahead Energy efficiency: Environmentalists to Employment Council: Globalisation to ERDF revision...... 15 demonstrate at Ecodesign Committee...... 7 fund revision sparks lively debate...... 11 No harmonised gambling legislation...... 16 Energy labelling: MEPs want Cross-border health care: MEP Vergnaud Privatisation of Olympic Airlines/Airways. 16 ads to state energy consumption...... 7 calls upon Left to rally together...... 11 Libertas continues quest for allies ...... 16 Air transport: Airlines can fly Employment Council: ICT for energy efficiency...... 16 less without losing slots...... 8 Proposal to extend maternity ETUC mobilises against impact of crisis 16 Air transport: ECJ clarifies leave remains in limbo...... 12 rules for carry-on articles...... 8 EU Agenda...... 17 Institutions Economic & monetary affairs, 2010 budget: Council and Parliament Interview taxation adopt their respective policy stances...... 12 Jacques Barrot, commissioner for Eurogroup: No easing of rules Lisbon Treaty: EP remains vague justice, freedom and security: on euro entry, says Juncker...... 1 on appointment of head of executive....13 Mistakes of Guantanamo should not be repeated elsewhere...... 20

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Mobile telephony EP fine-tunes roaming regulation to consumers’ benefit

By Nathalie Vandystadt member state. For text messages, MEPs The Industry Committee also agrees endorsed the ceilings proposed by the with the Commission – and the Council The European Parliament’s Industry Commission: 11 eurocents per message – on extending the first regulation cap- Committee is looking out for consum- (excluding VAT) for the retail prices ping prices for calls, but only until 30 June ers and implicitly future voters, who are billed to subscribers, compared with a 2012 and not until mid-2013 as stated in likely to be pleased with its adoption, on European average of 28 eurocents and the proposal. 9 March in Strasbourg, of the proposal up to 80 eurocents in some countries. In this context, MEPs make another con- for capping the price of sending text Wholesale prices between operators will cession to the industry, which is of course messages from one EU state to another be four eurocents. At the same time, furious over the regulation of prices: they (roaming). mobile calls placed from abroad will cost oppose further reduction of these ceil- It introduced an important innovation, a maximum this year of 46 eurocents ings from 2011 (less than three eurocents not on the price of text messages but on per minute (excluding VAT), while calls a year), as proposed by the Commission. the price of calls (capped in the EU since received cost 22 eurocents at most (under They want to stay – from 2010 to mid- mid-2007). As from the entry into force of the first roaming regulation adopted by 2012 – at 40 eurocents for calls made and the regulation, on 1 July if all goes well, the EU in June 2007). 16 eurocents for calls received (excluding roaming calls must be billed per second The EP will vote in plenary at the end VAT). from the first second, state MEPs, and of April. In the meantime, its rapporteurs, not from the 31st second, as the Com- the Czech EU Presidency and the Com- Higher ambitions on data mission proposes. By charging for roam- mission will try to seal a compromise. The Another change that will give con- ing calls per minute, operators push up member states have more or less already sumers incentive to use new mobile their prices by some 20%, according to approved all the Commission’s proposals, services is the cap set on data services the Commission. which turn out to be less ambitious than (using a cell phone to send e-mails or This is a big step forward just months the Valean report as amended and adopted download videos or photos) – this time before the European elections in early by 21 to eight, with 18 abstentions. The only at wholesale level considering the June. “Charging per second is a victory Commission tends to back MEPs: “Con- youthfulness of the sector. MEPs want to for the Socialists,” welcomed Reino Paas- sidering the difficult economic situa- set a cap of 50 eurocents per megabyte, ilinna (PES, Finland). The Romanian tion, Parliament is right to want to boost instead of the €1 proposed by the Com- Liberal rapporteur, Adina-Ioana Valean, European consumers’ purchasing power mission. Surfing on internet or down- was more modest, saying she was “satis- before the summer, which will encourage loading a TV series today can quickly fied” with the vote, especially because them to use their cell phones more,” com- add up to hundreds or even thousands it introduces a clause for revision of the mented Information Society Commis- of euro. regulation after two years. sioner Viviane Reding. She had already The Czech EU Presidency now has to So, theoretically, roaming charges gloated over her victory by announcing a try to work out a compromise. Prague, will no longer be a reason to switch off 60% reduction in call prices thanks to the together with Madrid, voted against the cell phones when travelling to another first roaming regulation. initial proposal, in November 2008. n

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Fisheries ECJ condemns France over ‘thonaille’ nets

By Sophie Petitjean the ‘thonaille’, the absence of justifica- net, which has been banned in the tion for the 2007 regulation and breach European Union since 2002,” com- The use of drift nets is indeed proof the principles of proportionality and mented its Executive Director for hibited, confirmed the EU Court of non-discrimination. Paris argued that Europe, Xavier Pastor. Italy is involved Justice with its ruling of 5 March (Case fishing using ‘thonaille’ nets is a tradi- in a similar case, he explained, adding C-556/07). The court dismissed the pro- tional and small-scale activity, that there that more than 150 vessels continue ceedings brought by France for annul- is no risk of an uncontrolled expansion to use this illegal gear, even though ment of Council Regulation 809/2007, of the practice and that it is not danger- subsidies have been granted for the which bans the use of such equipment, ous for the protected species that can be switchover from such nets. n including the French ‘thonaille’ or tuna caught accidentally. These arguments gillnet. failed to convince the court, which held In 2007, France introduced two cases that “inasmuch as it is common ground Background simultaneously, submitting an urgent that the ‘thonaille’ is used to catch blue The ‘thonaille’, even fitted with a float- application for suspension of the 2007 fin tuna, the prohibition on its use con- ing anchor and acoustic repellent regulation and a separate application tributes to the objective of ensuring the devices to keep protected species at for annulment of Regulation 809/2007, conservation and rational exploitation of a distance, is a drifting gillnet whose which bans fishing vessels from keep- fish resources and restrictions on fishing use has been prohibited by Regula- ing on board or fishing with one or effort,” thus finding for the EU Council, tion EC 894/97 since January 2002, more drifting gillnets. The application backed by the European Commission. and also by Regulations 812/2004 for an urgent ruling was rejected by the The claim was rejected and France was and 2187/2005. All three of these reg- court, on 28 February 2008. The second ordered to pay expenses. ulations were amended by the 2007 application was rejected on 5 March. The decision was praised by the regulation, which introduces a precise France presented three pleas, the marine conservation organisation, definition of drifting gillnets into EU extension of the prohibition on drift- Oceana. “This decision is a victory in legislation. ing gillnets to stabilised nets, such as the fight against the use of this illegal

Drug trafficking Report: Global market stable for last decade

By Patrick Veillard The publication of the study, drafted ting in place effective policies to combat jointly by Trimbos Institute and RAND, drug trafficking effectively at global level. The global trade in illicit drugs remained coincides with a ministerial meeting of For example, the increased severity of sen- stable between 1998 and 2008, notes a the United Nations Commission on Nar- tences against cocaine and heroine deal- report published by the European Com- cotic Drugs in Vienna. This meeting aims ers in some Western countries has not mission, on 10 March. There was a slight to assess the progress of the last decade made access to these drugs more difficult, improvement in rich countries during the on combating the supply and demand particularly because prices have dropped ten-year period but the situation worsened for illicit drugs, following the extraordi- by 10% to 30% since 1998. in a few large developing countries. nary session on drugs of the UN General Another trend is that part of cocaine The Commission acknowledges, how- Assembly, in 1998. production has moved from countries ever, that it does not have complete data, The Commission’s study aims to with determined policies, such as Bolivia either for all countries or for the different develop better understanding of the global and Peru, to Colombia. The fight against types of drugs. There is a real scarcity of drug market, applying the classic analysis illicit trade in syringes has also increased reliable data given the weakness of the instruments used for lawful markets. The the danger of contamination by international data collection system. The idea is to zero in on trafficking channels infectious diseases. data on cannabis are a good illustration of and the steps involved for illicit drugs to On the other hand, controversial risk the difficulties: they concern only three reach the European market. As stated by reduction policies, such as the distribu- regions (North America, Oceania and Jacques Barrot, the commissioner for jus- tion of syringes, the creation of aid centres Europe) with often considerable differ- tice, freedom and security, it is important and the distribution of methadone, seem ences in estimates. The estimates never- “to tackle the global drug problem based to have been more effective. They have theless make it possible to observe that, for on evidence”. helped reduce drug-related diseases, social these regions of the globe, the cannabis turmoil and mortality. n market has declined, even though the use Ineffective policies of cannabis has become commonplace The report emphasises the complexity The report is available at among young people. of the markets and the difficulty of put- www.europolitics.info > Search = 245476

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Environment EP wants stricter supervision of pollutant emissions

By Anne Eckstein to allow MEPs to assess the legal implica- to be set by comitology, a true “safety tions of the “recast” procedure used in this network” that no installation can get Pollutant emissions from industrial instal- file. According to this procedure, laid down around. Emission limits granted to indi- lations must be further reduced, accord- by an interinstitutional agreement, when vidual installations must be based on ing to the European Parliament, which is the European Commission puts forward a BAT, but are “adaptable” to take local nonetheless asking for the new directive on recast proposal of a directive, the EP can circumstances into account. integrated pollution prevention and con- only make amendments on the parts of the There was agreement to extend the trol (IPPC) to be applied more flexibly. In text that the Commission has changed in directive to installations with a thermal adopting, on 10 March, a report by Holger its proposal. In this case, where the pro- capacity from 20 MW to 50 MW, but Krahmer (ALDE, Germany) in first read- posal is made up of the integration of seven MEPs nonetheless asked for installations ing (co-decision procedure) with a very directives and the updating of some of their with less than 50 MW that operate for large majority, the Parliament has taken on provisions, MEPs can only make amend- less than 500 hours a year to be excluded. board the rapporteur’s suggestion to create ments on these changes. This procedure MEPs finally changed the technical a “European safety network” based on was respected in the parliamentary com- annexes that set out the conditions for minimum requirements that must always mittee, whose presidency deemed “inad- granting permits to certain types of indus- be respected. The aim is to curtail the missible” the amendments that did not trial installations. The amendments intro- widespread recourse to exemptions. conform, as well as in the plenary session. ducing more or less stringent limit values The debate, and then the vote, did not Watson’s request was finally rejected by a were all rejected bar one (97), which pro- happen without some controversy, however. vote (301 votes in favour, 301 against and vides an exception for gas emissions from First of all there was the about-turn from 28 abstentions). waste. MEPs asked for the emissions from the EPP-ED, which, while voting for the combustion plants used in hospitals to be compromise agreements negotiated by the Severity and flexibility calculated based on their normal operat- rapporteur in the parliamentary commit- The EP agrees on the need to improve ing capacity, recognising that they need tee, decided on the eve of the plenary vote reference documents concerning best to maintain a significant capacity. to no longer support these amendments. available techniques (BATs) and the defi- However, no question of extending This provoked an angry reaction not only nition of stricter limit values for certain the directive to poultry farms or to differ- from the rapporteur, but also from Claude pollutants – sulphur dioxide (SO2), nitro- entiate the standards depending on the Turmes (Greens-EFA, Luxembourg), who gen oxides (NOx), dust and carbon mon- species: MEPs want to limit the appli- considered the attitude of the Parliament’s oxide (CO) – but they want to ensure cation of the IPPC to breeding at least biggest political grouping to be “shame- more flexibility in the system by chang- 40,000 chickens, as is the case under the ful” and said the group was no longer a ing the procedure aiming to fix them. existing directive. Finally, the plenary “reliable” partner. They backed the rapporteur who, in adopted amendments aiming to reduce The second controversy had to do with order to curtail the overly widespread the administrative burden, relax rules on a request by Graham Watson (ALDE, UK) recourse to exemptions, suggested set- reporting and inspections and improve to delay the vote until 11 March in order ting obligatory minimum requirements, information for the public. n

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Energy efficiency Environmentalists to demonstrate at Ecodesign Committee

By Dafydd ab Iago tion, by a qualified majority of member to industry pressure over the proposals. state experts in the Ecodesign Regulatory “The draft texts so far lack the ambi- National experts in the Ecodesign Com- Committee, the European Commission’s tion to deliver the reductions needed mittee face a demonstration by environ- draft regulations should be sent to the and are being weakened by industry mentalists when they meet to decide upon Parliament and the Council for a scrutiny lobbying. Rules relating to televisions, energy efficiency requirements for home period of three months. fridges and motors, and the timeline appliances, on 12 March. Friends of the “Industry is attempting to weaken envi- for their implementation, are particu- Earth and other environmental organisa- ronmental legislation when stringent stan- larly weak,” said Magda Stoczkiewicz, tions will be protesting at what they see are dards for the energy efficiency of appli- director of Friends of the Earth Europe. weak energy efficiency measures and “con- ances offer Europe one of the best chances A number of energy efficiency require- fusing” changes to energy labels for home to reduce emissions,” said Mirjam de Rijk, ments are to be voted upon this month appliances. The Ecodesign Directive director of the Netherlands Society for by the Ecodesign Committee, notably (2005/32/EC) established a framework for Nature and Environment, one of the pro- electric motors (11 March), fridges (13), the setting of ecodesign requirements for testing organisations. Environmentalists televisions (17), dishwashers (30) and energy-using products. Following adop- accuse EU decision makers of “caving in” washing machines (31). n

Energy labelling MEPs want ads to state energy consumption

By Dafydd ab Iago sion working group under the regulatory elements” of the current label, notably the procedure with scrutiny. “closed-scale A-G classification”. According The European Parliament’s Committee Compromise Amendment IV, concerning to MEPs, the current closed-scale classifica- on Industry, Research and Energy (ITRE) Article 4, Point 2a notes that “any advertise- tion is simple and recognisable. MEPs also calls for amendments to the Energy Label- ment for a specific model of energy-related call for the label, where appropriate, to indi- ling Directive, notably stipulating that products covered by an implementing mea- cate a period of validity. advertisements should indicate an energy- sure under this directive, where technical However, if adopted in plenary and fol- related product’s energy consumption. specifications are disclosed, shall provide end- lowing negotiations with the Council, DIG- Technical promotional literature, such as users with the necessary information regard- ITALEUROPE fears the new EU energy manuals and manufacturers’ brochures, ing energy consumption or energy savings or labelling approach will prove counter-pro- should also show energy consumption. include a reference to the energy class of the ductive. The association argues that con- Adopted by MEPs in the ITRE committee, product”. Manufacturers will thus be obliged sumers will not understand why a new class with 45 votes in favour and two against, the to indicate the energy consumption whether ‘B’ labelled product is more expensive than co-decision report is now scheduled for a or not the product performs well, with a green an old ‘A’ labelled product. Neither will con- first-reading plenary vote in Strasbourg (21- ‘A’ label, or poorly with red ‘G’ label. Voting sumers be able to compare energy consump- 24 April). The exact technical details ema- on 9 March, MEPs further called for the tion of their products over time. Another nating from this recast directive on labelling energy label to apply to energy-consuming negative effect, says DIGITALEUROPE, and standard product information of energy products for commercial and industrial use, is that the proposed system will result in a and energy-related products, including the such as cold storage rooms, display cabinets complicated re-labelling requirement for energy classes of specific products, are to or vending machines. manufactures and retailers. be determined by a European Commis- Other notable amendments adopted by Manufacturers unhappy MEPs touch upon tax credits for highly energy DIGITALEUROPE, formerly EICTA, efficient products. Here, MEPs recommend Ecodesign requirements for had lobbied for an open labelling system, tax credits for consumers using highly energy household lamps whereby older machines would not automat- efficient products as well as for industries that The Council, on 9 March, decided not ically be downgraded. “We strongly support promote and produce such products. There to oppose the adoption by the Com- an open energy labelling system that fosters should be reduced value added tax on materi- mission of a regulation setting ecode- progress rather than the A-G reclassifica- als and components that improve energy effi- sign requirements for non-directional tion system,” noted Tony Graziano, director ciency, say MEPs. ITRE also stipulates that household lamps. Under the Ecode- technical and regulatory affairs for DIGI- public authorities should procure products of sign Directive (2005/32/EC), the regu- TALEUROPE. Despite this, MEPs adopted the highest energy efficiency class or at least latory procedure with scrutiny allows a compromise Amendment VII, for Article 4 class ‘G’ that meets the minimum energy effi- the Council or Parliament to oppose Point d, that calls for, as far as possible, a label ciency criteria. This condition should apply the adoption of such legal acts. with “uniform design characteristics” across for all contracts with a value, excluding VAT, product groups, which retains the “main of at least €15,000. n

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Air transport Airlines can fly less without losing slots

By Isabelle Smets cious slots is stopping companies from At that time, airlines were able to reducing their flight capacity during this keep those slots that they had as of 11 Airlines have got what they were crisis period when there are nonetheless September 2001 for the 2002 summer asking for: the European Commis- fewer air passengers. season and the 2002-2003 winter sion decided, on 10 March, to ease the Sometimes they are operating season. rules on using take-off and landing slots virtually empty flights. The Commission’s proposal amends in order to counter the impact of the The Commission is therefore propos- Regulation 95/93 and needs to receive economic crisis on the sector. ing that companies be allowed to keep approval from the European Parliament The current regulation on slots (95/93) their 2009 summer season slots, irre- and the Council, in co-decision. forces airlines to use at least 80% of their spective of whether they have used them The question was briefly raised in slots or risk having to put them into a or not, for the 2010 summer season. the European Parliament’s Transport ‘common pot’ where competitors could This is a temporary measure, similar Committee, on 10 February. benefit from them. to that taken after the drop in air traf- “We aren’t against it,” said Czech It is the ‘use it or lose it’ rule. In prac- fic following the 11 September 2001 Transport Minister Petr Bendl, current tice, the prospect of losing these pre- terrorist attacks. president of the Transport Council. n

Air transport ECJ clarifies rules for carry-on articles

By Isabelle Smets which implemented the general regu- a new regulation published in the Offi- lation on aviation security - Regulation cial Journal. The new text (Regulation The EU Court of Justice ruled, on 10 2320/2002). 820/2008, OJ L221 of 19 August 2008) March (Case C-345/06), that the list of What counts in this case is the rule of contains the list of articles that may not be items prohibited aboard aircraft cannot law laid down by the judgement: an EU brought into the cabin of an aircraft. For be enforced against passengers if it has regulation that has not been published the record, tennis racquets are not on the not been published. in the Official Journal has no binding list. n In the case in point, a passenger was force so far as it seeks to impose obliga- ordered to leave an aircraft because tions on individuals1. his cabin baggage contained tennis The ruling will have no immediate con- (1) The court explicitly mentions publication racquets. The airport security officials sequences on the EU aviation security reg- in the Official Journal, although a claimed that these were banned under a ulation because between the passenger’s Commission spokesman spoke of a list of articles contained in a European misadventure (September 2005) and the “misunderstanding” on the secret nature of regulation not published in the EU court’s ruling, the Commission repealed the old list, since it had been made public in Official Journal (Regulation 622/2003, Regulation 622/2003 and replaced it with a press release.

Eurogroup through - certainly deeper than what we tional Monetary Fund, a bailout package (continued from page 1) saw at the beginning of the 1990s.” The EU for Romania similar to the joint schemes is soon expected to agree, with the Interna- agreed for Hungary and Latvia. The Com- mission currently has €15.4 billion remain- ing in its balance of payments facility, out G10 meeting that we are at a level where the positives are of a total of €25 billion. Meanwhile, central bankers from the world’s not necessarily fully priced in.” However, Eurogroup ministers have top ten industrialised countries (G10), He did not specify a turning point, but said ruled out further economic stimulus mea- meeting at the Bank for International Settle- that central bankers would not depart from sures, saying that swelling budget deficits ments in Switzerland, on 9 March, have prognoses delivered by global institutions need to be kept in check. “Recent Ameri- indicated that the global economy could be of global growth at close to zero this year can appeals insisting that the Europeans close to picking up. “We have a number of before stronger growth next year. make an additional budgetary effort to elements that are suggesting that we are The International Monetary Fund has combat the effects of the crisis were not to approaching the moment where you would forecast global growth at 0.5% this year our liking,” Juncker said. “Europe and the have a pick up,” said European Central and 3% in 2010. Private economists Eurogroup have done what they needed Bank head Jean-Claude Trichet, who is also also said a recovery will come, although to. It will be possible to gauge the extent the spokesman for the group. “I would say the timing is uncertain. of these effects in 2010. We don’t feel we need to pile deficit upon deficit.” n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3711 Wednesday 11 March 2009

Financial markets Ministers keen to regulate credit rating agencies

By Sarah Collins based Standard & Poor’s and Moody’s, prepared the ground for the G20 meeting which have come under fire for under- in London in April, agreeing a common EU finance ministers decided not to estimating risk and contributing to the position ahead of the meeting, which reopen a debate on credit rating agencies extent of the financial crisis. The new Economic and Monetary Affairs Com- at their meeting, on 10 March, cement- rules seek to restore confidence in the missioner Joaquin Almunia said was one ing a Council common position agreed ratings system by forcing agencies to of the key elements to create confidence last week. The decision will now pass to remain as independent as possible, or in investors that the EU has a “clear the European Parliament, where it will at least manage their conflicts of inter- idea” on how to tackle the crisis. be debated in committee this month and est properly; improve the quality of their His message was the combination of will go to plenary in April. ratings by changing their methodol- fiscal stimulus in the short term with a Under current EU rules, credit rating ogy; and periodically disclose data and clear medium-term exit strategy to pro- agencies doing business in the EU are publish annual reports. tect public finances. In this vein, finance governed by the capital requirements Parliament’s report, written by French ministers endorsed the Commission’s and market abuse directives, as well as MEP Jean-Paul Gauzès, is calling for an recent stability and convergence reports a voluntary code of conduct laid down increased role for the CESR in register- of 21 EU member states, six of which by the International Organisation of ing and supervising agencies, rather than are now in excessive deficit procedure. Securities Commissions (IOSCO), and allowing member states to have control Taxation and Customs Union Com- are annually assessed by the Commit- over the process. missioner László Kovács also said the tee of European Securities Regulators The report also wants, in the absence Commission would be bringing out (CESR). of global rules on agencies, to make sure proposals for an energy tax directive, A regulation (COM(2008) 704) pro- that ratings issued outside the EU are but indicated that it was unlikely any posed by the European Commission, on scrutinised by European agencies and reduced VAT rates would be proposed 12 November last year, seeks to impose encourage the setting up of European- for energy efficient products and ser- a legally binding registration and over- owned companies. vices considering the general mood in sight system for companies like the US- On 10 March, finance ministers also the Council. n

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Banking ECON committee votes in favour of stricter capital rules

By Sarah Collins to set a limit of €150 million or 25% on the ritised exposure (those investments, such as amount of funds a bank can expose to one mortgages, that are repackaged and sold on as Members of the European Parliament’s client or group of clients. The report also seeks new investments). Banks would have to report Committee on Economic and Monetary to beef up Commission proposals to create a to EU supervisors on their exposure risks from Affairs (ECON) have voted in favour of stron- college of national supervisors to oversee the 2011, when the laws would take effect after ger rules on the amount of capital a bank banking sector, suggesting instead a system being transposed into national law. The com- must hold and have asked the European of European banking supervisors with more mittee also wants the Commission to bring Commission to come up with a banking power to police cross-border institutions. The out proposals on credit default swaps, where supervision plan before January 2010. The report asks the Commission to come forward the seller of the swap assumes the cost of the committee voted, on 9 March, by 21 votes with proposals on such a system, taking into risk in any of its underlying products, before to four (with eight abstentions) on a report account the recent report of the Jacques de the end of the year. Parliament is to vote on by Othmar Karas (EPP-ED, Austria) on the Larosière group, before 1 January next year. the report in plenary, on 21-24 April. n Commission’s proposal for a directive to The report also suggests that banks should amend Directives 2006/48/EC and 2006/49/ maintain an interest in any investments they The Karas report is available at EC on capital requirements. MEPs agreed issue, retaining 5% of the total value of secu- www.europolitics.info > Search = 245453

Financial markets Commission drafting guidelines on supervision

By Eric van Puyvelde de Larosière group report (adopted on a European Council of Systemic Risk. 25 February – see Europolitics 3702). As It would work alongside three decen- At the end of May, the European Com- already indicated in its communication of tralised committees of European super- mission will present its guidelines on the 4 March, it is calling for a system to be visors in order to coordinate the actions future of the EU’s system for supervising set up that combines having stricter Euro- of national authorities. These three com- the financial services sector. The Euro- pean supervision and maintaining a major mittees would see their powers extended pean Council of 18-19 June will be asked role for national supervisory authorities. It after three years. But the Commission, to ratify them and then, in the autumn, supports the de Larosière group’s proposal while dismissing the idea of a single the Commission will present legislative to create an early warning system under European supervisor as “unrealistic at proposals on the new supervisory frame- the auspices of the European Central this stage,” would want to centralise work. This is what it announced when Bank and responsible for identifying and some responsibilities from the start. n launching, on 10 March, a consultation neutralising systemic risks. of interested parties. The de Larosière report suggests creat- The consultation is open until 10 April at It states that the guidelines will be based ing an early warning system under the ec.europa.eu/internal_market/finances/ on the basic principles established in the leadership of the ECB in the form of committees/index_en.htm

Working Time Directive It is time for conciliation

By Marianne Slegers In 2008, the Parliament voted in favour Commission have already been held. The of a second-reading report on the proposed latest one was on 2 March. While the first The EU’s Employment Council officially revision of Directive 2003/88/EC by Span- two rounds did not yield any progress, the decided, on 9 March, not to approve all of ish rapporteur Alejandro Cercas (PES). This third and latest meeting looked “more the European Parliament’s amendments on way MEPs approved 22 amendments against promising,” according to sources close the revision of the Working Time Directive. the Council’s common position concerning to the Commission and the EP. After the This means that the conciliation procedure “certain aspects of the organisation of work- second meeting, the EP had asked the can start. The Conciliation Committee has ing time”. The major points of divergence Commission to reword the text on on- to be convened within six weeks after the included ways to calculate on-call time (as call time and compensatory rest, as well Council’s second reading. The Committee working time or not), the opt-out question as on multiple contracts and autonomous has six (or eight) weeks from the date of its (whether or not the working week should workers. first meeting to draw up a ‘joint text’. The be 48 hours or longer on average each year) The meeting of the Permanent Represen- first meeting of the Conciliation Commit- and the question of compensatory rest. tatives Committee on 11 March might con- tee is slated for 17 March. Other scheduled Three rounds of three-way talks between vene a new position on the bones of conten- dates are 31 March and 15 April. the EP, the Council and the European tion. Plenary vote is scheduled for 6 May. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3711 Wednesday 11 March 2009 11

Employment Council Globalisation fund revision sparks lively debate

By Marianne Slegers regard to the entire proposal, while Italy, fight over details too long,” said the Portu- Cyprus, Hungary, Malta, Poland, Finland guese delegate. The progress report reveals The EU member states still have a lot of and Slovenia have entered ‘general scrutiny that a “significant number” of member states work to do to find common ground on the reservations’. remain opposed to the proposed increase of revision of the regulation on the European Meanwhile, certain delegations - such the co-financing rate, arguing that the EGF Globalisation Adjustment Fund (EGF). The as Ireland, Spain, Poland and Lithuania - should supplement and not replace mea- employment ministers’ debate, on 9 March, remain committed to the European Com- sures taken at national level. has revealed that an agreement is not neces- mission’s current proposal, including the The report makes it clear that the expan- sarily within reach in the Council on whether increase of the co-financing rate. Italy spotted sion of the scope of the fund would be sup- the EGF ‘trigger’ of 1,000 redundancies could a linguistic problem in the text. According to ported by the majority of the member states, and should be reduced to 500; whether the Rome, the Italian translation did not cover notwithstanding that certain delegations co-financing rate should be increased from all the redundant workers, and thus it asked question the need for this, arguing that such 50% to 75%; and whether the scope of the for an adjustment there. Portugal would an extension would go against the fund’s fund should be temporarily expanded. prefer to keep the co-financing level at 50%, original objective. The report says that sev- However, the Czech EU Presidency arguing that the most important thing is now eral delegations remain opposed to the insists that agreement is possible between the for the EU to act quickly to make the fund proposed reduction of the EGF threshold member states and the European Parliament more efficient. “We have to show the people to 500 redundancies. They believe that this (co-decision procedure) before this sum- that we can do something. We shouldn’t could boost spending. n mer’s European elections. The Parliament’s Employment Committee will vote on the EGF proposal before the end of March and threshold for EGF assistance from 1,000 to the plenary vote is scheduled for May. Background 500 redundant workers. Furthermore, the The revision of the EGF regulation is part On 16 December 2008, the European Commission’s amendments aim to enable of the European economic recovery plan, Commission presented a proposal for the fund to contribute up to 75% of the cost which aims to overcome the financial crisis. the revision of the regulation on the EGF. of the applicant member state’s action plan The plan, presented on 26 November 2008, Established in late 2006, the fund has an (as opposed to 50% today). The aim here seeks to use the fund as an “effective crisis annual budget of 500 million euro. The is to better reflect the emergency nature of response instrument” that has the potential aim of the revision is to turn the EGF into the contribution and to make it easier for to help the reintegration into the labour a more effective early intervention crisis member states to apply for assistance. market of workers made redundant through response instrument; to enlarge its scope Finally, the duration of EGF assistance is to the economic crisis. According to a progress to cover staff redundancies caused by the be extended from 12 to 24 months. report, 12 member states have “reservations” current financial crisis; and to bring the To date, the fund has disbursed 69,34 mil- regarding the proposal. Denmark, Germany, fund closer to its solidarity objective. The lion euro in France, Portugal, Spain, Ger- the Netherlands, Sweden and the United proposal also seeks to lower the eligibility many, Finland, Malta, Lithuania and Italy. Kingdom have expressed reservations with

Cross-border health care MEP Vergnaud calls upon Left to rally together

By Anne Fekete report, followed by the whole of the PES tion “flouts” the sovereignty of member group. “Now, all of Europe’s Left must states to control their health systems, The European Parliament’s Com- rally to win these essential points in the and “risks endangering the already frag- mittee on Internal Market rejected, on plenary,” indicated Vergnaud in a press ile balance of the sickness insurance 9 March, the Socialist group’s amend- release, issued on 10 March. funds, while establishing a two-speed ments to the proposal for a directive on For the PES, the three main points health system”. She disputes the chosen the application of patients’ rights in cross- were that the list of hospital health care legal basis, which “considers health border health care. “During the vote, the must be drawn up by the states and not care as a product that only the richest alliance between EPP Conservatives and by the European Commission, that the and most well-informed will be able to ALDE Liberals did not make it possible principle of prior authorisation for this afford”. “This is not the Europe that I to maintain the key points in the text, same hospital care is guaranteed, and am defending and which the PES would which crossed the line for the Socialist the refusal of Article 95 (free movement like to build,” she added. group,” lamented the rapporteur, Berna- of goods and services) as the only legal The Committee on Environment will dette Vergnaud (PES, France). She was basis of the text. give its in-depth opinion on 12 March. The therefore forced to vote against her own The rapporteur believes that this posi- plenary vote is scheduled for end April. n

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Employment Council Proposal to extend maternity leave remains in limbo

By Marianne Slegers salary during the 18-week maternity leave. ask for a flexible work schedule after the Certain member states, along with the expiry of the maternity leave. Employers Paradoxical as it may seem, several EU business organisations, fear that this could would be obliged to consider such requests member states (the Nordic countries and negatively affect women’s participation in but they would be under no duty to agree. also Spain) believe that the eventual adop- the labour market. The UK’s representa- Furthermore, women would have the tion of the European Commission’s pro- tive said that fully paid leave was “unnec- right to be more flexible with regard to the posal to extend maternity leave from 14 to essary”. “This will lead to major problems, timing of their leave, although they would 18 weeks would increase gender inequal- in particular for those member states be obliged to take at least six weeks off after ity. They call for the inclusion of ‘paternal which have longer leaves,” he argued. In giving birth. This latter point is another leave’, which would allow fathers access the UK, women are entitled to 39 weeks of bone of contention. Some member states to paid parental leave following the birth paid maternity leave. He emphasised that said during the public debate that it should of a child. The public debate held during the member states’ national systems differ be left to women (or national legislation) the EU employment ministers’ 9 March widely, and said that the same applied to to decide when to begin or end their meeting reaffirmed the complexity of the the costs associated with changing the leg- maternity leave. Other member state rep- European Commission’s October 2008 islation. “We should take that into account resentatives said that this decision should proposal to “improve the safety and health before we agree on any new EU legisla- rest with the doctors. of pregnant workers or workers who have tion,” he said. The Dutch representative The applicable procedure is first read- recently given birth or are breastfeeding” also spoke out the extension of the mater- ing, co-decision. The EP’s Commit- through amendments to Directive 92/85/ nity leave, echoing the arguments of the tee on Women’s Rights is scheduled to EE (see Europolitics 3610). In the words business organisations: “There is no proof vote on 16 April and the plenary vote of Employment Commissioner Vladimir that the health of women is under threat is in May. The issue will return to the Spidla, after the 9 March debate, “There under the current legislation. We should Employment Council’s agenda in June, is still a lot of work to do”. look at the possibilities of parental leave but agreement there is not likely before The other key point in the proposal is instead,” he said. the end of the Swedish EU Presidency, that women should be entitled to their full The proposal would enable women to in December 2009. n

2010 budget Council and Parliament adopt their respective policy stances

By Célia Sampol in Strasbourg budget will be “as close as possible to was nonetheless accused by the Social- these limits” in order to finance essential ists of having focused excessively on the The two branches of the budget objectives for the EU without endanger- response to the crisis rather than on solu- authority adopted, on 10 March, each on ing existing programmes and policies. tions to tomorrow’s problems, such as the its own side, their first policy guidelines They ask the Commission to present, environment and social protection. for the 2010 budget. In today’s context on 29 April, a preliminary draft budget of economic crisis, the European Parlia- capable of “coping with today’s chal- Respect for financial framework ment is seeking more money, while the lenges”. The key objective is to place citi- On its side, the Ecofin Council Council is calling for budget discipline. zens in the forefront and to assure their adopted at its meeting in Brussels MEPs voted at the plenary session in security, “which requires giving special the draft conclusions prepared by the Strasbourg on a report by László Surján attention to the recent economic and Budget Committee (see Europolitics (EPP-ED, Hungary) on the European financial crisis and its impact on growth 3707). It calls for budget discipline and Commission’s general budget. Only and competitiveness, jobs and cohesion”. a realistic budget that strictly respects around 20 amendments were tabled on The EP welcomes the Commission’s the limits set by the multiannual finan- this report, adopted in the Committee on European recovery plan and points out cial framework – a subtext allusion to Budgets on 24 February. The final reso- that it is prepared to negotiate with the the Commission’s €5 billion European lution states that the 2007-2013 financial Council on this subject. However, it con- recovery plan, the financial arrange- framework sets for 2010 an amount of siders that it “will be easier to adopt the ments for which have not yet been €139.489 billion in commitment appro- decision on projects eligible for financ- agreed. The text states that in Subhead- priations (1.02% of the Union’s gross ing if the proposal is geographically bal- ing 1a (competitiveness) it is important national income) and €133.505 billion anced”. The resolution also highlights to strengthen investments in infrastruc- in payment appropriations (0.97% of energy security and transport, climate ture and energy sectors, whereas in GNI), figures which represent “maxi- change measures and reinforcement of Heading 4 (the EU as a global partner) mum amounts of expenditure” under internal security. The rapporteur, who the EU must have sufficient margin to the yearly budget. MEPs hope the 2010 wishes to make this a “budget of hope,” deal with unexpected needs. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3711 Wednesday 11 March 2009 13

Lisbon Treaty EP remains vague on appointment of head of executive

By Célia Sampol in Strasbourg that the commissioners must be sworn into tion of the change in primary law have all office after the Irish referendum on the been completed. The European Parliament’s Commit- treaty because it will be impossible to know tee on Constitutional Affairs adopted its how many members the Commission will Role of General Affairs Council three reports on the Lisbon Treaty, on have before the referendum (27 under The Dehaene report also discusses the 9 March in Strasbourg, with the aim Lisbon, fewer than 27 under Nice). MEPs essential role of the General Affairs Coun- of submitting them to the plenary in also endorsed this point, but they add that if cil under Lisbon. It will have to ensure the April, just ahead of the European elec- the outcome of the referendum is positive, coherence and continuity of the work of tions. The most important politically is formal approval of the new college, “includ- the different Council configurations. The the report by Jean-Luc Dehaene (EPP- ing the president and high representative,” head of state or government of the country ED, Belgium) on the development of should only take place after Lisbon enters holding the Presidency should personally the Union’s institutional balance. In the into force, implying a second vote. In the chair the General Affairs Council and be final analysis, this resolution remains final analysis, the resolution is vague on the Parliament’s “privileged interlocutor”. The very vague on the date of appointment date of appointment of the president and External Affairs Council, which will be held of the future president of the European is not at odds with the European Council separately, will include defence matters and Commission, an appointment that will conclusions. That should please the cur- will be chaired by the high representative straddle two treaties, Nice and Lisbon. rent Commission President, José Manuel for foreign policy. A compromise amend- Barroso, who is standing for re-election ment states that the troikas (three successive Appointment of Commission and would be favoured by the earliest Presidencies) will continue to set a common This is the most controversial question. appointment possible. operational programme to be presented to The conclusions of the December 2008 the Parliament meeting in plenary. European Council state that the process Composition of Parliament The appointment of the permanent Euro- will begin “immediately after the election One of the other important points of the pean Council Presidency should take place of the European Parliament in June”. Two Dehaene report concerns the future com- “as soon as possible” after the entry into force points emerge from the Dehaene report. position of Parliament. The June elections of the Lisbon Treaty in order to tie up the First, the rapporteur recommends that will be held on the basis of the Treaty of parliamentary legislative period and the new the appointment of the head of the EU Nice, which provides for an assembly of Commission’s mandate. n executive abide by the spirit of the Lisbon 736 members. The December European Treaty even if the text has not yet entered Council conclusions nevertheless state into force. In that case, before appointing the following: “transitional measures will Leinen and Brok reports a candidate, the European Council would be adopted as soon as possible [...] in order The other two resolutions are the have to take the election outcome into to increase, until the end of the 2009-2014 report by Jo Leinen (PES, Germany) account and hold “appropriate consulta- legislative period, in conformity with the on ‘Parliament’s new role and respon- tions” with the EP’s political groups. The numbers provided for in the framework sibilities in implementing the Lisbon committee endorsed this view. of the IGC which approved the Lisbon Treaty’ and the report by Elmar Brok On the second point, the date of Treaty, the number of MEPs of the 12 (EPP-ED, Germany) on ‘Development appointment of the president, Dehaene member states for which the number of of the relations between the European proposes not to refer to a vote in July. He MEPs was set to increase. Therefore, the Parliament and national parliaments’. tabled an amendment, which was adopted total number of MEPs will rise from 736 The first, adopted by 21 to two, is a in committee, stating simply that if the to 754 until the end of the 2009-2014 report on the positions of the dif- European Council launches the proce- legislative period”. ferent EP committees on the treaty. dure for appointment of the Commission The EP resolution states that implemen- The second, passed by 21 votes with president immediately after the elections, tation of these transitional measures will one abstention, discusses the new it “should duly take into account the nec- require an amendment of primary law, powers given to national parliaments essary timeframe to allow the consulta- ie the treaty, which will then have to be under Lisbon, including that of being tion procedure, as foreseen in the Lisbon ratified by the 27 member states. It urges able to scrutinise a legislative pro- Treaty, to be completed informally”. the member states to take the legal mea- posal to guarantee respect for the Under these conditions, “the substance of sures allowing the “pre-election,” in June, subsidiarity principle when this is [Parliament’s] new prerogatives would be of these 18 extra members (the difference supported by one third of members fully respected”. between 754 and 736). They would then (the ‘yellow card’ procedure). A The former vice-president of the Euro- sit as observers (without voting rights) fourth report on the financial aspects pean Convention also decided not to seek from the date of entry into force of theLis- of the Lisbon Treaty will be adopted a second vote on the Commission presi- bon Treaty. They would take on their full in the Committee on Budgets, on 11 dent once the Lisbon Treaty comes into powers at an “agreed and simultaneous March in Strasbourg. force. He continues to maintain, however, date” once the procedures for the ratifica-

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EU/BiH Think tank warns against early transfer of powers in Bosnia

By Joanna Sopinska not been met,” it adds. The Crisis Group cial Representative (EUSR). The latter posi- recommendation comes ahead of the Peace tion is currently vacant following the depar- The EU and other members of the inter- Implementation Council’s meeting, sched- ture of Miroslav Lajcák, who was appointed national community active in Bosnia and uled for 26-27 March, which is set to decide Slovenia’s foreign minister in January. Herzegovina should postpone to a later on the fate of the OHR. The former Austrian Ambassador to stage the transition of supervisory powers in “The international community should Bosnia, Valentin Inzko, seems to have the the country, argues an international think decide, at the important meeting on 26- best chance to replace Lajcák. His candidacy thank. In its latest report, the International 27 March of the Peace Implementation was approved in February by the EU and after Crisis Group (ICG) says that too early clo- Council, the international body that over- initial reservations, and it was apparently also sure of the Office of the High Representa- sees Dayton, not to end the mandate of the accepted by the US administration. Inzko tive (OHR) could further exacerbate what is OHR by 30 June 2009, as has been fore- has yet to secure Russia’s support – another already a tense political situation in Bosnia. shadowed,” argues the ICG. non-EU member of the Steering Board of the “Tensions are high in Bosnia and Herze- Following the potential closure of the Peace Implementation Council. govina, and national leaders are challeng- OHR, the supervision of the implementa- In view of the future transition of powers ing the Dayton Peace Agreement (DPA) tion of the Dayton Peace Agreement is set in Bosnia, the ICG calls on the EU “to more openly than ever before,” says the to be taken over by the EU. Last Novem- begin now to focus on the specific powers report, arguing that against this background ber, the EU member states had expressed their EUSR requires and resolve to serve the OHR should remain open longer than their readiness to “step up” the bloc’s role in as guarantors of the Dayton agreement”. It until July 2009 – an indicative date set at Bosnia and to work on progressively achiev- argues that upon the closure of the OHR, the end of 2008 for its closure. “Stability is ing a “transition from the OHR to a stronger “a strong EU mission will be needed to con- deteriorating [in the country], as Bosniaks European Union presence”. tinue encouraging Bosnia toward European and Serbs play a zero-sum game to upset The OHR was enshrined in the Dayton integration”. The arrival of the EU mission the Dayton settlement. Progress toward EU Peace Agreement ending the 1992-1995 should not, however, result in further reduc- membership is stalled, and requirements Bosnian war and since 2002 it has been tion of the EU peacekeeping force and set in 2008 for ending the protectorate have double-hatted as the European Union Spe- EUFOR, underlines the document. n

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EU/US Obama’s top trade negotiator not so hot on Doha

By Brian Beary in Washington ing senators that his priority was enforcing FTA with the US but instead has sectoral existing trade agreements, not signing new agreements - notably one on aviation services Clinching a deal in the Doha Round of ones. “I do not come to this job with ‘deal (Open Sky). It also has, since 2007, an inter- world trade talks - the cornerstone of the fever’,” he said. “I know that you want the governmental body - the Transatlantic Eco- EU’s external trade policy - is not a priority referees at the WTO to call a foul when the nomic Council (TEC) - whose mission is to in Washington, it was clear from the Senate rules are broken. And I agree.” remove regulatory barriers to EU-US trade. confirmation hearing of United States Even if a deal on Doha were to emerge President Obama has not yet named anyone Trade Representative (USTR) Ron Kirk, from Geneva, it is highly doubtful it would to co-chair the TEC on the US side. on 9 March. Kirk gave no timeline for sign- fly in Washington as the US administration’s ing a Doha agreement, saying only that he Trade Promotion Authority (TPA) has EU FOOD SAFETY RULES SLAMMED wanted to “advance the Doha negotiations expired. This means Congress can now pick Kirk also took a swipe at the EU’s sanitary in the right way”. He struck a defensive apart trade agreements piecemeal, rather and phytosanitary rules on products like tone amidst an equally defensive Senate than simply voting ‘yes’ or ‘no’ to them. genetically modified organisms (GMOs) Finance Committee, which is expected to Kirk did not ask Congress to renew the that have restricted US agricultural exports confirm him in the job. TPA immediately, saying President Obama to the EU. “Regulations for science and Apart from protectionist sentiments would request it “at an appropriate time and agriculture should be based in sound sci- expressed, the very manner in which Kirk’s with proper congressional input”. Even the ence and not fear,” he said, while vowing confirmation has proceeded is a sign that bilateral free trade agreements (FTAs) the to continue to pursue US grievances before Congress, which jointly sets trade policy US has already signed but not yet ratified the World Trade Organisation. Senate with the president, is not in the mood for seem under threat. Kirk said the US-South Finance Committee Chair Max Baucus trade liberalisation. It waited nearly two Korea FTA was “simply not acceptable” and (Democrat, Montana) urged Kirk to months after President Barack Obama refused to give a desired timeline for ratifying “unravel” the EU’s restrictions on US food took office to hold the hearing. The ques- the Colombia FTA, saying only the Panama exports, saying they had “effectively locked tion and answer session lasted less than an FTA was ripe for consideration. out American corn, soy, poultry and beef hour and consisted mainly in Kirk reassur- The EU does not have an overarching from their market”. n In Brief

Debate on GMOs rejected in plenary the elections more than the substance of MEPs give go-ahead to ERDF At the start of the European Parliament’s the issue” and mentions a motion of no- revision plenary session, on 9 March in Strasbourg, confidence with regard to the Commission The European Parliament’s Committee the Co-Chair of the Greens-EFA group, president. They argued that the resolution on Regional Development adopted, Franco-German Daniel Cohn-Bendit, should be a “serious text” drawn up by the on 9 March in Strasbourg, a report called for a statement by the European relevant committee. (CSA) by Emmanouil Angelakas (EPP-ED, Commission for the next day on genetically Greece) that gives MEPs’ go-ahead modified organisms (GMOs), followed by EIB loan for research in Denmark for the revision of rules under the a debate and a vote on a resolution. He On 9 March, the European Investment European Regional Development Fund argued that the environment ministers had Bank granted a loan of DKK600 million (ERDF) to allow the co-financing of rejected “by a very clear qualified majority” (€80.4 million) to support the research energy investments in housing in all the EU executive’s proposal to waive Austria and development programme of the EU member states. At present, and Hungary’s safeguard clauses on Mon Denmark’s Grundfos Group. The RDI only the ‘new’ member states (EU12) 810 and T25 maize. “That was already the activities of Grundfos aim to increase are allowed to co-finance energy case in 2006 and 2007 and the Council environmental friendliness, improve investments in housing under the votes against a waiver every time.” The operating performance and enhance ERDF. In agreement with the Council EP could therefore have taken a position intelligent electronic steering of pump of Ministers, the committee proposes ahead of the elections to show voters the technology. These activities contribute to to limit to 4% of the ERDF allocation issues on which it is fighting. The assembly promoting knowledge, competitiveness for each member state the amount that voted against the motion, however. The and technological expertise, allowing can be earmarked for such investments. Socialists backed the idea of a statement Grundfos to consolidate its position as one The vote in plenary (co-decision, first but abstained on the voting of a resolution of the world’s leading pump manufacturers reading) is set for 1 April. (ISM) because the Greens’ proposal “concerns focusing on energy efficiency.

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In Brief

No harmonised gambling Libertas continues quest for allies efficiency indicators so as to measure ICT legislation Libertas is continuing its search for allies energy savings. There would be energy Private gambling operators spoke of a with a view to the European elections consumption, carbon emissions targets as “confusing” majority report by Christel in June. The leader of the anti-Lisbon well as energy accounting by the end of Schaldemose (PES, Denmark) that was Treaty movement, Irish billionaire 2011. For buildings and construction, the adopted by the European Parliament’s Declan Ganley, was in London, on 10 Commission would like to see tools for plenary, on 10 March. On the other March, to find candidates interested in the energy-efficient design of buildings by hand, European Lotteries welcomed what campaigning with him. He will hold a the end of 2011. (DAI) it terms a call by the EP for a political press conference, on 11 March in Paris, solution founded on respect of national with Philippe de Villiers and Frédéric ETUC mobilises against impact of legislation and involvement of all the Nihous, leaders of the Movement for crisis social stakeholders. MEPs voted with a France and Hunting, Fishing, Nature and The General Secretary of the European large majority (544 in favour, 36 against Traditions, respectively. The latter have Trade Union Confederation (ETUC), and 66 abstentions) for the report on decided to present common lists in the John Monks, has urged the EU to provide the “integrity of online gambling”. “The European elections under the Libertas “more coordination and measures for the vote shows that we cannot expect an EU banner. Ganley is continuing his tour short and long term” to cope with the harmonised legislation to be adopted in after a failure in Sweden, where he tried crisis. Speaking in Brussels, on 10 March, the near future. This clearly means that to buy the support of the Eurosceptics at a breakfast debate sponsored by ETI it is the rules of the treaty and the case who make up the June List, at the price and Europolitics, he stressed the lessons law of the Court of Justice that continue of €1 million. They turned down his of history and especially the 1929 crisis. to apply and that will prevail for our offer, saying politics is not business. In The ETUC will present its views, on 16 sector in the years to come,” said Sigrid February, Libertas lost its status as a March, on the theme “the EU cannot act Ligné, secretary-general of the European European political party only two weeks like the stowaway of the global recovery”. Gaming and Betting Association after obtaining it due to a scandal over It will also sponsor a number of European (EGBA), which groups private gambling forged signatures. (CSA) demonstrations, from 14 to 16 May in companies. (DAI) Brussels, Berlin, Prague and Madrid ICT for energy efficiency as part of its campaign, to “remind the Privatisation of Olympic Airlines/ The European Commission’s different governments that they must Airways communication and recommendation provide European responses to this crisis, The European Commission gave a green on how to mobilise information and and not case-by-case measures”. light, on 10 March, to the revised plan communication technologies (ICT) presented by the Greek authorities for for energy efficiency, adopted on 10 the privatisation of Olympic Airlines and March, adds a more concrete approach to Olympic Airways Services. The plan policy in the area. The communication does not contain state aid elements, calls for a comprehensive EU policy the Commission ruled. The initial framework to drive the deployment of privatisation plan had been approved by ICT for sustainability. The stated goal the Commission last September; it was is to ensure, by 2020, that energy use based on a tender procedure for the sale of avoided by ICT solutions far outweighs the companies’ assets. The process was not the energy use caused by ICT. The successful, however, because all the bids Commission has thus come round to received were below the minimum values seeing the ICT industry not just as a established by an independent valuation. consumer of energy or object to be The Greek authorities therefore decided subjected to environmental legislation. to sell the assets directly, without using a It is now fully recognised as a provider tender procedure, which the Commission of technologies that can enable energy has authorised. The process aims to wind savings in many other industries. The list up the two heavily indebted companies of measures given is long. It includes the and set up a new entirely private airline ICT sector adopting, by the end of 2011, (see Europolitics 3598). (ISM) common methodologies, tools and energy www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3711 Wednesday 11 March 2009 17

EU Agenda

Wednesday 11 15:00-18:00: DEBATES ON CURRENT TOPICS Council of March Council and Commission statements, followed by debate Ministers n 2008 Progress report on Croatia Coreper I (Committee of Permanent European n 2008 Progress report on Turkey Representatives) n 2008 Progress report on the Former Brussels Parliament Yugoslav Republic of Macedonia Plenary session n The mandate of the International Meeting of the Political and 9:00-23:59 Strasbourg, Plenary Criminal Tribunal for the former Yugoslavia Security Committee (PSC) Plenary agenda: - Debate on report by Annemie Neyts- 10-11 March, Brussels Uyttebroeck (ALDE, BE) 9:00-11:50 n Oral questions PPE-DE, PSE, ALDE: Informal Meeting of COHOM Joint debate Council/Commission - State of play of SIS (Working Party on Human Rights) n Preparation of the European Council II, with debate 11-12 March, Prague (19-20 March 2008) - Council and Commission statements 18:00-19:00 Conference on the Implementation • European Economic Recovery Plan Question time (Council) of EU Law in the EU Member States - Report by Elisa Ferreira (PES, PT) 11-13 March, Prague • (*) Guidelines for the Member States’ 21:00-24:00 The conference focuses on the employment policies - Report by Jan n Green Paper on the European Workforce implementation of EU law and technical Andersson (PES, SE) for Health - Commission statement, support for the implementation of EU • Cohesion Policy: investing in the real followed by debate law by means of information systems. It is economy - Report by Evgeni Kirilov (PES, n 5th World Water Forum in Istanbul, primarily intended for persons responsible, BG) 16-22 March 2009 - Oral question to on national level, for the coordination of End of joint debate the Commission by Committee on the implementation of EU law. Development, with debate 12:00-13:00 n Court of Auditors Special Report No Votes, indluding: 10/2008 on ‘EC Development Assistance Rule 80 to Health Services in Sub-Saharan Africa’ European n (*) Scope of Article 143(b) and (c) of - Oral question to the Commission by Directive 2006/112/EC (codified version) Committee on Development Commission - Report by Lidia Joanna Geringer De n Implementation of the Single Euro Travel and visits Oedenberg (PES, PL) Payments Area (SEPA) - Oral question n Ms Danuta Hübner receives Mr Piotr to the Commission by Committee on Serafin, Under-Secretary of State, Polish Pursuant to Rule 131 Economic Affairs, with debate Committee on European Integration n (*) Adjustment of basic salaries of n Mr Joe Borg participates in the Europol staff - Report by Agustín Diaz De KEY : (*) Consultation in single reading international conference ‘New chances Mera García Consuegra (EPP-ED, ES) and new responsibilities in the Arctic n Mobilisation of the EU Solidarity Fund The President’s diary Region’ (Berlin) - Report by Reimer Böge (EPP-ED, DE) Strasbourg n Mr Ján Figel’ receives Mr Jamie n Amending budget 1/2009: Floods in n 14:45-15:00: Ceremonial signing of Merisotis, President and CEO of the Romania - Report by Jutta Haug (PES, co-decision legislation Lumina Foundation for Education DE) n Mrs Mariann Fischer Boel receives n Extending the applicability of Rule 139 Parliamentary committees Mr Brendan Smith, Irish Minister for of Parliament’s Rules of Procedure until Committee on Budgets Agriculture, Fisheries and Food the end of the seventh parliamentary term 9:00-11:00 Strasbourg, LOW N1.3 n Mrs Benita Ferrero-Waldner - Proposal for a decision by the Bureau n The financial aspects of the Reform participates in ‘IV Foro Euromediterraneo Treaty - Vote on report by Catherine Guy- de Energia-La Energia en el Quint (PES, FR) Mediterraneo: Crecimiento Sostenible

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y Armonizacion Regional’ (IEMed, ETUC, annexed to Council Directive Action, based on an arbitration clause, Barcelona) 96/34/EC of 3 June 1996 (OJ 1996 L 145, for a order that the Commission pay, n Mr Andris Piebalgs delivers a speech at p. 4) - Parental leave in the form of part- firstly, sums allegedly due to the applicant the 7th Doha Natural Gas Conference & time working - Dismissal of the employee and, secondly, damages, following the Exhibition (Doha) before the end of the period of parental termination of a contract relating to n Mr Andris Piebalgs meets Mr Abdullah leave without urgent cause or without Community financial assistance granted Bin Hamad Al-Attiyah, Deputy Premier observing the statutory period of notice to the ‘e-Content Exposure and Business and Minister of Energy & Industry of - Calculation of payment in lieu of notice Opportunities’ project (‘EEBO’) (contract Qatar (Minister’s office) No EDC-53007 EEBO/27983), concluded Fourth Chamber in the context of the multiannual 9:30 Community programme to encourage n Hearing Joined Cases C-155/08, C- the development and use of European Court of Justice 157/08 X digital content on the worldwide networks Second Chamber Freedom to provide services and to promote linguistic diversity in 9:30 Preliminary ruling - Hoge Raad der the information society (‘eContent’ n Hearing C-199/08 Eschig Nederlanden - Interpretation of Articles programme) Freedom to provide services 49 EC and 56 EC - Taxation by a Reference for a preliminary ruling member state of income (from capital) Fifth Chamber - Oberster Gerichtshof (Austria) of a national resident held in an account 15:00 - Interpretation of Article 4(1) of in an establishment situated in another n Judgement T-354/05 TF1 v Council Directive 87/344/EEC on the member state - Income not declared in Commission coordination of the laws, regulations and the member state of residence - Rules State aid administrative provisions relating to legal of national law providing for a 12-year Annulment of Commission Decision expenses insurance (OJ 1987 L 185, p. recovery period in respect of income C(2005) 1166 final of 20 April 2005 77) - Clause contained in the standard from another member state and a 5-year declaring compatible with the common terms and conditions of insurance of a recovery period in respect of income market under Article 86(2) EC the licence legal expenses insurer enabling it, in from national sources - Proportional fine - fee system set up by the French authorities the case of an accident in which a large Possible relevance of the fact that banking in favour of France Télévision number of insured persons suffer losses secrecy applies in the member state in n Hearing T-450/05 Automobiles as a result of the same event, to choose a which the income originated Peugeot and Peugeot Nederland v legal representative, and thereby limiting Commission the right of the individual insured person Competition to choose his own lawyer (‘mass torts Annulment of Decision C(2005)3683 clause’). Court of First final of 5 October 2005 concerning a procedure under Article 81 of the EC 11:30 Instance Treaty (Cases 36.623, 36.820 and 37.275 n Hearing C-568/07 Commission v Second Chamber - SEP and Others/Automobiles Peugeot Greece 16:00 SA) concerning agreements made by Freedom of establishment n Hearing T-140/08 Ferrero v OHMI - Automobiles Peugeot and its subsidiary, Failure of a Member State to fulfil Tirol Milch (TiMi KiNDERJOGHURT) Peugeot Nederland, with dealers of the obligations - Failure to comply fully with Intellectual property Peugeot distribution network in the the Court’s judgement of 21 April 2005 Community trade mark - Annulment of Netherlands in order to limit export sales in Case C-140/03 Commission v Greece Decision R 682/2007-2 of the Second of new cars from the Netherlands to concerning infringement of Articles 43 Board of Appeal of the Office for consumers living in other member states and 48 EC with regard to the ownership, Harmonisation in the Internal Market or, in the alternative, reduction of the fine establishment and operation of shops (OHIM) of 30 January 2008, dismissing imposed on the applicants. for the sale of optical articles - National the appeal brought against the decision law allowing only authorised opticians to of the Cancellation Division refusing Seventh Chamber own opticians’ shops - Application for the the application for a declaration of 9:30 setting of a penalty payment invalidity submitted by the applicant n Judgement T-121/05 Borax Europe v in respect of the word mark ‘TiMi Commission Third Chamber KINDERJOGHURT’ for goods in Class 29 Law governing the institutions 9:30 Annulment of the Commission decision of n Hearing C-116/08 Meerts Fourth Chamber 3 November 2004 rejecting the applicant’s Social policy 9:30 request for access to certain documents Interpretation of clauses 2.4 to 2.7 of the n Hearing T-340/07 Evropaïki and sound recordings of the meeting of the framework agreement on parental leave Dynamiki v Commission working group responsible for preparing concluded by UNICE, CEEP and the Company law the 30th adaptation to technical progress www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3711 Wednesday 11 March 2009 19

of Council Directive 67/548/EEC of 27 Eighth Chamber June 1967 on the approximation of laws, 9:30 regulations and administrative provisions n Hearing T-137/08 BCS v OHMI - Economic and relating to the classification, packaging Deere (Combinaison des couleurs verte and labelling of dangerous substances (OJ and jaune) Social Committee English Special Edition 1967(1), p. 234). Intellectual property 11 March,EESC n Judgement T-166/05 Borax Europe v Community trade mark - Annulment of n Meeting of the Specialised Section Commission Decision R 0222/2007-2 of the Second for ‘Single Market, Production and Law governing the institutions Board of Appeal of the Office for Consumption’ (INT) Annulment of the decision of the Harmonisation in the Internal Market Commission of 21 February 2005 to (OHIM) of 16 January 2008, dismissing refuse the applicant access to certain the appeal brought against the decision documents and tape recordings related to of the Cancellation Division refusing the Committee of the the preparation of the 30th adaptation to application for a declaration of invalidity technical progress of Council Directive submitted by the applicant in respect Regions 67/548/EEC of 27 June 1967 on the of the figurative mark consisting of the Conference approximation of laws, regulations and colour combination of green and yellow n Synergies between the Mediterranean administrative provisions relating to the for goods in Classes 7 and 12 Energy Community: EASY PROJECT classification, packaging and labelling of Location: Committee of the Regions, JDE- dangerous substances (OJ English special 53, 10:00-16:30 edition: Series I Chapter 1967, p. 234).

Venue: Foreign Press Association manufacturers? Where does solar cooling Upcoming 11 Carlton House Terrace, London SW1Y stand today? Who can participate in this 5AJ growing market? conferences Organisers: ESTIF (European Solar 19-20 March, Brussels Thermal Industry Federation) 17-18 March, Vienna n EU High-level event on ICT for Energy Contact: [email protected], Tel: +32 2 n The Future of European Rail: Making Efficiency 546 19 38 trains competitive: Realising rail’s bright Subject: This event aims to accord Venue: Hotel “Bayerischer Hof”, Munich, future visibility to the potential of ICTs in Germany Subject: The ASI & Marketforce’s 14th enabling energy efficiency across the www.estec2009.org Annual Conference is an opportunity to economy and in particular it will show how consider how the continent’s rail market ICT-based innovations may provide one of 15-16 June, Bucharest is developing and what strategies will give the potentially most cost-effective means n Eurelectric Annual Convention & operators the best chance of success. to achieve the 2020 energy and climate Conferences 2009 Organisers: Marketforce targets. Eurelectric’s annual convention and Contact: +44(0)20.7760.8699, Organisers: European Commission in conference in Bucharest, Romania [email protected] cooperation with the Czech Presidency next June will spotlight the unique role Venue: The Imperial Riding Scholl, A ec.europa.eu/ict4ee electricity plays in achieving a sustainable Renaissance Hotel Venue: Charlemagne Building, 170 Rue future and in contributing towards the EU www.marketforce.eu.com/eurail de la Loi (Wetstraat), BE-1049 Brussels, vision for a high efficiency, low carbon, Belgium secure and competitive economy. 18 March, London The event is hosted by the Romanian n Quantitative Easing, the Credit Crunch 25-26 May, Munich Institute for Energy Development Studies and the EU n estec2009 - 4th European Solar and sponsored by Accenture. Subject: At this key time for the economy Thermal Energy Conference Contact: Emily O’ Leary : +32.2.515.10.62, John Redwood MP, Chairman of the Subject: The comprehensive programme [email protected] Economic Competitiveness Policy Group, of the estec2009 conference aims to Venue: JW Marriott Bucharest Grand Hotel and Professor Tim Congdon, one of provide updates on policies promoting the www.eurelectric.org/Bucharest2009/ Britain’s leading economic commentators, use of solar thermal energy and to answer discuss the EU and the Credit Crunch challenging questions such as: How do the Organisers: The Bruges Group renewable obligations change the market? To announce your events on these pages, Contact: Tel: +44(0) 20 7287 4414, Mobile: Which financing options are available for contact: [email protected] 07740 029787, [email protected] the growth of small and medium-sized

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Interview with Jacques Barrot, commissioner for justice, freedom and security Mistakes of Guantanamo should not be repeated elsewhere

By Nathalie Vandystadt ing country will not necessarily be the one for Guantanamo. I am going for data pro- which prepares the asylum requests and tection, the main issue of cooperation with Jacques Barrot will the mechanism could be suspended if the US. I am also going for the visa prob- visit Lampedusa (off there is an overflow), the support office (it lem. Then, I will let the US administration southern Italy), on 13 will be able to send teams to sort the genu- progress on the Guantanamo issue. March, and Malta, ine asylum requests), and money. We are France, Spain, the UK and Portugal say on 14 March - Medi- also continuing to negotiate readmission they are ready to receive ex-detainees. Do terranean islands of agreements (allowing illegal immigrants we know more about the other countries’ the EU where signifi- to be sent back to their country) with Paki- positions? cant numbers of ille- stan, Morocco and Turkey. And we are Some are against, such as Poland and the gal immigrants and going to begin negotiations with Algeria Netherlands. The Czech Republic is also asylum seekers are and China. An agreement with Morocco thinking along the same lines. With regard disembarking. He will then meet, on 16 and would be very important. But the Moroc- to Germany, [Interior Minister] Wolfgang 17 March, the Obama administration in cans are hesitant to sign because it is a tran- Schäuble has not said no, but he says it is Washington, including Janet Napolitano, sit country. They do not want Algerians, difficult. Austria is not very keen. Let’s say secretary of homeland security, together who have crossed the sea, to be returned to that most countries are taking a cautious with Ivan Langer, the Czech minister of the them. The same goes for Libya. The Ital- ‘wait and see’ attitude and leaning towards interior, whose country is presiding over the ians have approached it, and I will evaluate trying to avoid reception. It is necessary Union. This will be an opportunity to dis- the situation with them. to know which detainees they would be cuss the fate of the future ex-detainees of the Malta - backed by Italy - Cyprus and likely to take. Whether they have a par- Guantanamo prison camp, after its closure Greece would welcome the European ticular reason for doing so: because the within the next year. Asylum Support Office. What are your ex-detainees are completely innocent and What are you going to do in Lampedusa thoughts on this? have better integration chances in such and Malta? It will be created without knowing where or such member state. The real problem Firstly, I will see whether the conditions for it will be located. But this is not the prob- is knowing whether they still need to be detaining illegal immigrants, who are often lem. It will provide assistance teams. But, monitored. Do they pose a threat? If they mixed with asylum seekers, are decent. for the time being, it is out of the question are received, does this protection only con- I wanted to go to Lampedusa and Malta to do anything other than form this support cern the receiving country? Or do they a little earlier. But, apparently, the Italian office in Brussels. This, really, is looking at have the possibility to circulate within the authorities were not very keen. Then I Europe from the wrong end of the tele- Schengen area? The idea of protection essentially set a date. Secondly, my aim is to scope. Agencies are not created in order to solely in the receiving member state has better understand the problems of Lampe- create jobs in a given country. been mentioned, with the impossibility of dusa and Malta vis-à-vis the detention of In Washington, it will be difficult to circulating elsewhere. Apparently, this is immigrants arriving in unbelievable condi- convey a common message given the dis- legally possible. tions. And tell them that we are there to try agreement in the EU on the reception of What about Camp Bagram in and help them. I convinced the Commis- ex-detainees from Guantanamo. How do Afghanistan? sion to adopt a European Asylum Support you plan to approach this issue? Indeed. We will say that we will possibly Office, which will provide them with exper- A positive bias has, nevertheless, emerged. receive ex-detainees from Guantanamo. tise. I will verify financial requirements as But until now we have not had any clear, But this means that we are turning the there are four funds (refugees, return, inte- official requests from the US. The US page in the fight against terrorism under- gration and protection of external borders). administration has made a few phone taken in questionable conditions at the I have a directive on reception conditions calls to certain member states. But if one ethical level. And, in particular, values for asylum seekers, which has not yet been member state takes an initiative on its own, to which the EU is adhering to entirely: adopted. But I will already see how the it must notify the members of the Schen- refusal of torture and of the absence of vulnerable, the women and the children gen area. We must therefore remind the procedural guarantees preventing those are received. I will check whether, from a US that we are united through Schengen, presumed guilty from effectively defend- sanitary point of view, there is a minimum and that it is desirable that they provide ing themselves and seeking legal coun- level which is compatible with human dig- the Presidency and the Commission with sel. We must exert pressure so that it is nity. Whether they are cared for if need be. all the information required to correctly quite clear that the mistakes of Guan- However, I cannot ask the governments describe the case of each detainee. Is he tanamo are not repeated elsewhere. We for proof of responsibility if I do not bring guilty or not? Has he been tried? Does cannot make it a condition, but we have them solidarity. It is a three-step process: the US intend to compensate the freed a means of pressure by saying whether revision of the Dublin system (the receiv- detainees? I am not going to Washington or not we will receive them. n