Cohesion Policy/Commission New Commissioner Samecki EU Court of First “100% pro-Lisbon” Page 6 Instance at 20 Pages 15-20 EUROPOLITIcs
The European affairs daily Friday 4 September 2009 N° 3810 37th year
Focus Commission Up to MEPs now Barroso sets out to By Pierre Lemoine win over Parliament
The fate of José Manuel Barroso will be By Célia Sampol term aimed to “consolidate a Europe of decided to a large extent this coming week: 27 member states for the first time,” now at the EP hearings on 8 and 9 September The way out of the crisis, climate change, “we have to go further” because the world and in the group chairmen’s decision on defence of the social market economy, has entered a “new era”. 10 September on whether or not to vote, citizens’ Europe and the EU in the world Barroso also develops a number of prior- on 16 September, on his reappointment to are the key the European Commission’s top seat. This points stressed is more than one candidate’s personal in the agenda case, however: a symbol is at stake. The José Manuel choice of the person who will lead one of Barroso has the Union’s key institutions is not neutral, transmitted to nor is the date, just weeks ahead of the the European second Irish referendum that will seal the Parliament. fate of the Lisbon Treaty, a treaty aimed The topics at modernising the EU and reinforcing its are meant to democratic functioning. In the midst of an win over the
economic crisis, the question for every assembly’s dif- © CE Barroso: The world has entered a “new era” citizen is now more than ever: what kind ferent political of Europe do we want? The political family families, with emphasis on the creation of ity themes for achieving his goal. The first of the candidate, Barroso (centre right), a “special partnership” between Parliament short-term objective will be to bring Europe does not have a big enough majority to and the Commission. out of the crisis through “a vigorous and guarantee the reappointment of the out- The head of the EU executive trans- coordinated EU-wide economic strategy,” going president, who before the summer mitted to the EP political groups, on but also to stem the rise in unemployment secured the backing of the leaders of the 3 September, his personal “political and develop a new generation of responsible 27 member states. Socialist, Liberal and guidelines” for the next five years if he financial regulation. In the longer term, the Green MEPs refused to reappoint him in is approved for a second term. The right- ambitions are to keep Europe at the head of July, setting out demands one after the of-centre former prime minister of Por- the fight to halt climate change, to develop other (see Europolitics 3785). The head tugal could not resist the temptation of new sources of growth and social cohesion of the Liberals, Belgian national Guy Ver- presenting his manifesto the same day to (research and innovation, industry, ser- hofstadt, listed five conditions that had to the entire European press, without giving vices, agriculture and maritime sector), to be met to earn his group’s support (single MEPs the chance to be the first to read take forward citizens’ Europe and to open recovery programme, European financial it. The common denominator of his pro- a new era for Europe as a global player. To supervisor, etc). The 50-page programme gramme is a “transformational agenda” raise the financial resources required as made public by Barroso on 3 September because the world is not what it was five public budgets are stretched to their limits, (see opposite) does not address a single years ago. The economic and financial the document proposes to work with the one of them. A good start. crisis has come along in the meantime. European Investment Bank, to develop a While the Commission president’s first new framework for (continued on page 9)
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Contents N° 3810 Top Stories Cohesion Policy/Commission New Commissioner Samecki EU Court of First “100% pro-Lisbon” Page 6 Instance at 20 Pages 15-20
Institutions Economic & monetary affairs, Prolongation of Hungarian Commission: Barroso sets out taxation scheme authorised...... 13 to win over Parliament...... 1 Economy: ECB predicts gradual EIB loan for public recovery, leaves rates unchanged ...... 9 investment in Aragón...... 13 Business & competitiveness G20: Brown, Merkel and Sarkozy want CAP: Swedish priorities...... 13 Company law: Difficult start binding finance rules...... 9 to late payments discussions...... 4 Economy: Presidency to tackle EU Agenda...... 14 Information technology: unemployment and climate change.....10 Commission to review Oracle-Sun deal.... 4 Insight: EU Court of First Vehicle emissions: Verheugen Defence & security Instance at 20 threatens manufacturers of ‘dirty cars’.....5 EU/NATO: New NATO chief in Anniversary marks turning point ...... 15 drive to unblock cooperation with EU.....10 Interview with Marc Jaeger, Sectoral policies EU/US: MEPs want say president of the EU Court of First Cohesion Policy/EU Presidency: on new SWIFT agreement...... 11 Instance: “We need more judges”...... 17 Solidarity Fund left stranded but Course of proceedings before hope on simplification...... 5 External relations Court of Justice...... 18 Cohesion Policy/Commission: Climate change: EU supports Global Types of actions and New Commissioner Samecki Framework for Climate Services...... 11 special procedures...... 19 “100% pro-Lisbon”...... 6 Informal Gymnich Council: Iran and Interview with Jean-Claude Consumers: EU exec draws EU strategy in Afghanistan on agenda.....12 Bonichot, judge at EU Court balance of product testing project...... 6 of Justice: “We are used to Fisheries: Proposals for Baltic Sea In Brief discussion and criticism”...... 20 TACs and quotas for 2010...... 7 Grossetête named health Fisheries: Swedish Presidency to care rapporteur ...... 12 push for CFP reform...... 7 Retail trade up in EU...... 12 Transport/EU Presidency: EIB loans for SMEs in Romania ...... 13 Eurovignette put on back burner...... 8 Battery recycling slow to catch on...... 13 Air transport: EASA to be more Innovation: UEAPME welcomes involved in accident investigations...... 8 Commission communication...... 13
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Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info Friday 4 September 2009 N° 3810 EUROPOLITICS
Company law Difficult start to late payments discussions
By Dafydd ab Iago According to Verheugen, member states costs may or may not be charged,” said have recognised the problem of public Sonntag following the committee’s meet- Discussions in the European Parlia- authorities’ payment record, especially ing. On the other hand, SME association ment’s Committee on Internal Market in the current economic crisis. “That’s UEAPME has criticised the Commission’s and Consumer Protection (IMCO) pres- why a whole range of member states have proposal from the very beginning. “There age a difficult passage for the European adopted measures to process payments was nothing new from Verheugen in the Commission’s April 2009 proposal on late faster for public contracts,” said Verheu- committee,” said UEAPME’s Luc Hen- payments. Speaking to MEPs, Enterprise gen. He singled out Belgium, France, drickx. He would like to see the proposed Commissioner Günter Verheugen admitted the Netherlands, Portugal, but even late recast include business-to-consumer rela- the scale of the problem: if public authori- payer Italy. Verheugen also admits a clear tions as well as tighten possible loopholes ties respected a 30-day deadline for paying, North-South divide. The payment dura- in the proposed 30-day limit. companies would have up to some €179 bil- tion of public authorities can range from “We do not see any reasons why consum- lion in additional cash flow, close to what is ten to 15 days in Northern Europe. In ers should be excluded. All clients should being proposed under member states’ own Italy, this period is around 90 days and it is pay their invoices when there is no dispute national recovery plans. even more in Greece. about the product,” said Hendrickx. He is In its proposal, the Commission is calling unhappy about the possibility of extending on public authorities to pay their bills within Businesses divided the 30-day deadline as SMEs cannot nego- 30 days or face automatic fines. Under the BusinessEurope’s SME expert Erik tiate with public authorities over payment proposal for a recast Late Payments Direc- Sonntag found the commissioner’s talk terms. “They are in a weaker position,” he tive (2000/35/EC), public authorities face rather general. “We did not learn anything added. That also holds true for SMEs work- interest payments and a 5% flat rate of com- new on late payments,” said Sonntag. Like ing for large companies. Hendrickx cites the pensation if they exceed the 30-day rule. other industry and business federations, he example of multinational Interbrew that Those are tough demands, especially for fears problems as the Commission’s proposal recently announced it would only pay sup- those member states traditionally seen as passes through Parliament and the Council. pliers within 120 days. “Contractual freedom bad payers (see Europolitics 3732). Whilst MEPs appear to generally favour the should be suspended,” believes Hendrickx, Some of the issues raised - in IMCO’s idea of tightening public authorities’ pay- arguing that large companies can force dif- quick exchange with Verheugen - include ment habits, there was little evidence from ficult payment conditions on SMEs. the financial burden that will face financially political groups as to how their positions on The Swedish EU Presidency is aiming weaker member states. Some MEPs also the details will develop. for first-reading agreement. Parliament alluded to problems arising from the Com- Like member states, business federations should appoint a rapporteur before 14 mission’s fairly simple definition of ‘public appear to be divided. BusinessEurope’s September. Due to differences between authority’. Towns, hospitals, libraries and Sonntag is supportive of the Commission’s the political groups this was not pos- schools may have money, but these smaller proposal, but calls for fine-tuning. “Com- sible for any of the IMCO reports, on 2 public authorities are in a very different posi- pensation for recovery costs goes a little too September. Nonetheless, PES is being tion than central financial ministries. far. It’s not up to Europe to propose what floated as winning the report. n
Information technology Commission to review Oracle-Sun deal The acquisition of Sun Microsystems etary database company [Oracle] pro- Oracle is active in the development, by Oracle Corporation would merge poses to take over the world’s leading open manufacture and distribution of com- two major competitors in the market for source database company [Sun Microsys- pany software, including middleware databases. tems],” commented Competition Com- (software that connects software compo- The takeover plan therefore raises seri- missioner Neelie Kroes. “In particular, the nents or applications), database software ous doubts at the European Commission Commission has an obligation to ensure and business application software and about its compatibility with the single that customers would not face reduced related services. market. choice or higher prices as a result of this Sun provides computing infrastruc- The EU executive decided, on 3 Sep- takeover. Databases are a key element of ture, including servers and storage solu- tember, to open a thorough investigation company IT systems. In the current eco- tions and middleware and database and has three months to adopt a final nomic context, all companies are looking software. n decision on the proposed deal. for cost-effective IT solutions, and systems “The Commission has to examine very based on open-source software are increas- Further information is available at carefully the effects on competition in ingly emerging as viable alternatives to ec.europa.eu/competition/mergers/cases/ Europe when the world’s leading propri- proprietary solutions,” she added. index/m110.html#m_5529 www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3810 Friday 4 September 2009
Vehicle emissions Verheugen threatens manufacturers of ‘dirty cars’
By Dafydd ab Iago “The rule is in force. It has to be applied. of global warming gases. The 2006 Direc- New cars must meet the new requirements tive 2006/40/EC on emissions from vehicle Addressing the European Parliament’s or the vehicles will not receive type approval air-conditioning forces the use of alterna- Environment Committee, Enterprise Com- and cannot be placed on the market,” said tive refrigerants with much lower global missioner Günter Verheugen warned auto- Verheugen replying to Davies. “I am con- warming effects in car air conditioning sys- mobile makers that they will have to comply vinced the production capacity can be tems sold from 2011. The current product, with new rules on emissions from mobile air made available,” added Verheugen. Davies, HFC134a, is estimated to have a global conditioning systems from 2011, if they wish however, argues that car manufacturers are warming potential (GWP) 1,450 times to see their cars approved under the EU’s failing to order alternative refrigerants. This greater than carbon dioxide. There are cur- vehicle type approval system. Verheugen was means that chemical companies are not rently two competing alternative air condi- provoked by outspoken MEP Chris Davies investing in the plant capacities needed. tioning systems using CO2 (GWP 1) a new (ALDE, UK), now the group’s environment Davies also accuses car manufacturers of hydrocarbon HFC1234 (GWP 4). Accord- spokesperson. Davies argues that car makers being “selfish” and taking billions in sup- ing to Davies, manufacturers are failing to are challenging the European Commission port from national governments, whilst fail- use the new products so as to avoid adding and trying to avoid compliance. ing to take the lead in reducing emissions just €30-50 to the price of new cars. n
Cohesion Policy/EU Presidency Solidarity Fund left stranded but hope on simplification
By Isabelle Smets ics. The issue is a priority for MEPs, who 100% co-financing while noting “a major- will stress its importance in a letter sent to ity of positive reactions” on the rest of the There does not seem to be any improve- the EP Conference of Presidents. proposals (simplification). A three-way ment in sight on revision of the EU Solidar- Council-Commission-Parliament meeting ity Fund, created in 2002 to help member SIMPLIFICATION is planned for 11 September to try to iron states hit by major natural disasters. The In contrast to the low expectations on the out differences. revision has been held up in Council Solidarity Fund, Maud Olofsson will put a since 2005 and although the European great deal of effort into the final proposals MONEY FOR MOST VULNERABLE Commission retriggered the debate last for simplification of the Structural Funds, Discussions on the future of Cohesion April when adopting the 2008 progress presented by the European Commission Policy will be intensified over the next report (see Europolitics 3746), the Swed- on 22 July (3799). She nevertheless did not six months, but the Swedish Presidency ish EU Presidency was unambiguous in repeated its known positions: it is impor- summing up the situation to MEPs: “We tant to retain the connection between this will need several Presidencies” to wrap It remains to be seen what policy and the Lisbon strategy and, above up the revision. The words are those of the new Commissioner in all, resources need to be concentrated on the Swedish Minister for Enterprises and charge of Cohesion Policy, those most in need. Energy, Maud Olofsson, responsible for Pawel Samecki, can do Sweden, a net contributor to the budget, regional policy in her country, who came is one of the states arguing for a certain to present the EU Presidency’s priorities amount of renationalisation of Cohesion to the European Parliament’s Committee Policy. Money should be reserved to the on Regional Development (REGI), on 3 go as far as predicting a success. At best, she most vulnerable regions, it maintains, and September in Brussels. told MEPs that she “will try to go as far as “countries like Sweden are going to have to Sweden’s intentions not to put a lot into possible”. This cautious statement reflects invest their own resources to aid the regions this issue could not have been clearer. It the diverging views in Council, especially most in need”. remains to be seen what the new Com- on the possibility of abolishing, in 2009 Cohesion Policy beyond 2013 should missioner in charge of Cohesion Policy, and 2010, the obligation of member state also be further anchored in the territo- Pawel Samecki, can do. co-financing of projects funded by the ries, said Olofsson, so as to turn to best During his appearance before the REGI European Social Fund (ESF). Simplifica- account resources intrinsic to the regions. Committee the day before (see other arti- tion “is easy to say, but hard to do. We need She intends to illustrate this principle cle), he assured MEPs of his determination more discussions,” declared Olofsson. Dirk in practical terms at an informal meet- to take the issue forward, “in particular in Ahner, director-general of DG Regio at ing on regional policy, in December the context of the risk of a pandemic”. The the European Commission, who followed in Kiruna, a town in Swedish Lapland changes proposed by the Commission the Swedish minister at the meeting with that has made the most of its location would enable the Solidarity Fund to inter- MEPs the same day, said exactly that. He North of the Arctic Circle by developing vene in case of health disasters, eg epidem- confirmed the “difference of views” on tourism and space research. n
Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info Friday 4 September 2009 N° 3810 EUROPOLITICS
Cohesion Policy/Commission New Commissioner Samecki “100% pro-Lisbon”
By Isabelle Smets mittee - but this is surely not the end of the as it will soon be a matter of defending matter as it will be necessary to respond the place of Cohesion Policy in budget An ardent supporter of the ‘Lisboni- to the increasing number of people who disputes, which promises to be more than sation’ of EU Cohesion Policy, Pawel are of the opinion that such an approach complicated. Over the coming months, Samecki appeared before MEPs, on 2 may be a source of discrepancy between the commissioner in any case intends to September in Brussels. The new commis- regions (resources are focused on the large discuss the problem with the member sioner responsible for Cohesion Policy, centres). In any case, the commissioner is states and the scientific community. It is who succeeds Danuta Hübner until the making the debate on the future of Cohe- one of his priorities. The aim is to find the end of the term of the current European sion Policy one of his priorities for the correct path to follow in order to increase Commission, was giving an introductory coming months. He has promised an ori- the performance of Cohesion Policy. At presentation to the European Parliament’s entation paper by the end of the autumn. the same time, Pawel Samecki wants to Committee on Regional Development From a logical point of view, with reduce the rate of error and irregularity (REGI). And even if this was not to the Lisbon leading, investments in innovation in the implementation of the Structural liking of some MEPs or regions - where are considered as “essential” by Samecki. Funds. This is “an important problem,” the issue is being debated - Samecki did Above all in these times of economic he acknowledged. not beat around the bush in expressing his crisis, which “offers new opportunities to Simplification is another one of his views on the need for the Lisbon strategy undertake necessary structural changes credos and he plans to put a great deal of to have a greater focus on Cohesion Policy and devise new policies and instruments effort into seeking a compromise on the objectives. While several people pointed to stimulate that change”. The crisis, says latest modification measures for the Struc- out that the elimination of developmental Samecki, “shows the need for regional tural Funds, proposed by the Commission differences between the regions consti- economies to modernise, diversify and on 22 July (see Europolitics 3799). Even if tuted the basic philosophy of Cohesion trigger a process of change”. he acknowledges that he does not have the Policy - and should remain so - the new “unanimous support of member states,” commissioner assumes that “the world “GREATER EFFICIENCY” which was largely confirmed by the Swed- has changed since the Rome Treaty”. The commissioner also sees the EU’s ish Presidency the day after, during the “We must meet these expectations. But if future Cohesion Policy better anchored presentation of its priorities to the REGI we want to be competitive in relation to in the territories, centred on a few key Committee (see other article). Brazil, China and India, we must moder- priorities of the EU, with a better focus In the end, MEPs approved an exchange nise Cohesion Policy. Basic infrastructures on performance. Samecki repeated this of views described as “fruitful” by Danuta are essential, but we must envisage greater on several occasions: a greater focus on Hübner. The presentation was therefore competitiveness.” results is needed. “The emerging results successful. n This vision of regional policy falls into of the ex post evaluation demonstrate that line with that of his predecessor - Danuta member states perhaps have not focused The introductory speech by Samecki is Hübner, who welcomed Pawel Samecki enough on policy effectiveness,” he said. available at as the new chairman of the REGI Com- This sentence is far from being innocent www.europolitics.info > Search = 255711
Consumers EU exec draws balance of product testing project
By Eric van Puyvelde Slovenia, on a wide range of everyday prod- tion (BEUC). The total cost of the project ucts - from washing machines to digital was over €5 million, of which the Commis- Consumer magazines and websites pro- cameras, mobile phones, vacuum cleaners, sion financed over €1.6 million. The Com- viding independent, comparative testing of child restraints, washing detergents, sun-tan mission notes that, as a result of the project, consumer products so that consumers may lotions, portable music players and TV sets. the beneficiary consumer associations have be better informed were able to be launched The project allowed these associations to been able to build the capacity to run and in the new member countries of the EU, fol- benefit from know-how in market research, market comparative product tests. They lowing a three-year EU project co-financed sample selection and test result evaluation. are now expected to operate independently by the European Commission. The results To achieve this, partnerships between con- as members of the ICRT network and as a of the project were published by the Com- sumer associations with extensive experi- professional subscription-based service for mission, on 3 September. Over a three year ence in consumer testing were created. The consumers. n period, the EU programme co-financed a project ran from September 2006 for three total of 18 comparative tests, for use by con- years and was initiated by International Further information is available at sumer organisations in Cyprus, the Czech Consumer Research and Testing (ICRT) ec.europa.eu/consumers/empowerment/ Republic, Hungary, Poland, Romania and and the European Consumers’ Organisa- cons_tests_en.htm www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3810 Friday 4 September 2009
Fisheries Proposals for Baltic Sea TACs and quotas for 2010
By Anne Eckstein Commission therefore announces its inten- the long-term average. Major quota cuts are tion, in line with its position on discards, to vital to halting overexploitation and compen- Now that scientists have confirmed that strengthen, in 2010, the prohibition already sating for poor recruitment. The Commission stocks of Baltic Sea cod are recovering, in therefore proposes a 21% reduction in TACs contrast with herring stocks, the European for Western herring, from 27,176 tonnes to Commission has proposed to increase fish- “The positive trend for cod 21,469 tonnes, and a 15% reduction for cen- ing opportunities for 2010 for cod fishing - stocks is the result of strict tral herring, from 143,609 tonnes to 122,068 by 15% for the Eastern stock and 9% for the application of the recovery tonnes. The same percentage reduction (- Western stock – but to reduce fishing oppor- 15%) is applied to sprat, whose TAC would tunities for herring by 21%. The proposal plan adopted for this drop from 399,953 tonnes to 339,960 tonnes. will be debated at the Fisheries Council, on species” 19 October. A second proposal on the Black Salmon: alert for young fish Sea is set to be adopted soon and a discus- As a result of the decline in Baltic salmon sion or even a decision is also expected at the in force. In concrete terms, the Commission juveniles, stocks of which have reached October ministerial session. proposes to increase by 15% total allow- survival level, and the poor state of certain able catches (TACs) for Eastern Baltic cod, river stocks, the TAC in the main basin has TACs up for cod from 44,580 tonnes to 51,267 tonnes, and to been cut by 15%. There is no reduction “The positive trend for cod stocks is the increase by 9% the TAC on Western Baltic proposed for the Gulf of Finland, how- result of strict application of the recovery cod, from 16,337 tonnes to 17,700 tonnes. ever, because the problem in this zone has plan adopted for this species,” said Fisher- to be addressed at the source, ie through ies Commissioner Joe Borg, who added that Herring stock still declining national management measures in inland the effort has to be maintained. Although Long-term erosion of the herring stock is waters. This question will be debated with the level of discards registered for this fishery continuing in the Baltic Sea. According to the member states in the context of a Baltic in the Baltic is relatively low, the phenom- scientists, the decline is confirmed for the salmon management plan being prepared enon nevertheless seems to be rising. The incoming year class, which is only a quarter of by the Commission. n
Fisheries Swedish Presidency to push for CFP reform
By Emilie Melvin healthy animals. Joe Borg, member of the commission The Presidency will aim at reaching a responsible for fisheries and maritime It is essential to manage common seas political agreement on the control regulation affairs, declared during a first meeting of responsibly as fish know no boundaries, during the 19-20 October Council meet- the Fisheries Committee, on 1 September, stated Eskil Erlandsson, Swedish minis- ing, noted the minister. There is still much that the Commission’s main goal is also the ter for Agriculture, during his speech at ground to cover on issues such as sanctions, reform of the CFP, as the current “system is the European Parliament’s Committee the distribution of competences between the failing to deliver, despite substantial prog- on Fisheries (PECH), on 2 September. European Commission and member states, ress in certain key areas over recent years”. Indeed, the upcoming Common Fisher- the control agency’s mandate and how to The main objective is therefore to ensure ies Policy (CFP) reform is essential, as it is handle recreational fishing. The control “a profitable fishing industry that provides currently subject to several shortcomings. system must be reformed, explained Erland- nutritious food […] taken from a healthy However, the green paper is still undergo- sson, because, without it, common seas are marine environment”. Borg outlined ing consultation and is therefore not yet in danger of being emptied out, despite three main pillars necessary for achieving part of the Council’s agenda. In the mean- quotas and other regulations. the Commission’s goals: 1. reorganise the time, the minister intends to informally When it comes to total allowable catches priorities on which the CFP is based; 2. meet with his colleagues at a lunch follow- (TAC) and other quota regulations, the terminate the constant overcapacity of the ing the Fisheries Council session, on 22 Swedish minister hopes that the imminent European fishing fleet; and 3. redistribute and 23 November. negotiations will be led in as openly and responsibility so as to properly achieve the The EU must “use and not abuse its natu- transparently as possible. The Presidency established goals. ral resources,” declared Erlandsson. In this will also push for an agreement on the four As of now, “CFP decision making remains context, the minister outlined the Swedish proposed recovery plans so as to ensure too reactive [and] we need to keep focus EU Presidency’s main priorities regarding the long-term conservation of the species on the bigger picture,” stated the commis- fisheries: 1. long-term sustainable fisher- in question: Celtic cod, anchovy, West- sioner. Ecological sustainability must be at ies; 2. the global challenges of food and ern stocks of Atlantic horse mackerel and the core of the policy, he argued, without climate; and 3. sound animal breeding and Northern hake. being compromised by short-term gain. n
Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info Friday 4 September 2009 N° 3810 EUROPOLITICS
Transport/EU Presidency Eurovignette put on back burner
By Isabelle Smets sustainability at the heart of its concerns. to seal a political agreement in the Coun- The general opinion, expressed by rep- cil on the draft directive on deployment of Members of the European Parliament’s resentatives of all the political groups, is ITS in the road sector. The states are still Transport Committee were not pleased that there have been enough studies and divided on the advisability of a binding to learn from Swedish Communications that it is time for a political decision. The EU legal framework, however. Minister Asa Torstesson, who presented sustainability of transport? “If we are not the Swedish EU Presidency’s priorities on ... AND RAIL LIBERALISATION 2 September, that revision of the Eurovi- It is now a question of “Work on rail liberalisation must be con- gnette Directive could be stalled in the tinued during the Swedish Presidency,” coming months. This is a flagship issue additional studies and said the minister. The backdrop here is the in the transport sector, aimed at enabling new simulations by the recast of the first EU rail package, propos- member states to put in place toll sys- Commission, which always als for which are still being awaited from tems that charge users for the external the Commission. costs of road freight transport. As seen in makes it possible Railway companies that are newcom- past debates in the Council of Ministers, to gain time ers to the market hope this will be an many member states have cast doubt on opportunity to strengthen a number of the usefulness and cost of the European provisions aimed at guaranteeing non- Commission’s proposal, especially as the willing to take political risks, we won’t suc- discriminatory access to the markets of economic crisis deals a hard blow to the ceed,” scolded Said El Khadraoui (S&D, other member states, such as the inde- road transport sector. In the course of Belgium), rapporteur on the Eurovi- pendence of infrastructure operators or these Council debates, Sweden was in the gnette. “This is a practical issue. It would rules preventing cross-subsidisation. They ranks of those saying the crisis should not allow you to move from words to acts. have Sweden’s support: “Liberalisation be used as a pretext to delay discussions, We need to do more than emphasising works when it is implemented in practical but it now seems resigned to waiting. technologies.” terms,” commented Torstesson. This was As often happens in such cases, it is now a thinly veiled allusion to the poor imple- a question of additional studies and new INTELLIGENT TRANSPORT... mentation of the first rail package in many simulations by the Commission, which Asa Torstesson stressed intelligent trans- member states. always makes it possible to gain time. “As port systems (ITS), one of her priorities in After the Commission’s presentation soon as the Commission returns to the the sector. The Sixth World Congress on last June of a communication on transport attack with studies that answer our ques- ITS will be held in Stockholm, on 21 Sep- beyond 2010, Sweden will also launch tions, we will resume the work,” Torstes- tember, and the Swedish EU Presidency discussions on the future of the common son told MEPs. The EP committee mem- will then host a high level meeting, on policy in this sector. According to Torstes- bers regretted the lack of ambition on this 26 and 27 October in Göteborg, on new son, the ministers will debate it in Coun- ultra-sensitive issue by a Presidency that technologies in road transport. The Swed- cil in October and conclusions will be has placed environmental protection and ish minister also said she was determined adopted in December. n
Air transport EASA to be more involved in accident investigations
By Isabelle Smets the European Aviation Safety Agency tion at its disposal as the certification (EASA) in accident investigations. authority and especially to allow it to use The European Commission is pre- Patrick Goudou, executive director of the results of investigations to improve paring to strengthen EU legislation on EASA, who appeared before the Euro- safety regulations. investigations into aviation accidents. pean Parliament’s Transport Committee On air safety, Patrick Goudou also Two texts are expected to be modified: on 2 September, said the proposals are explained that crew training needs to be Directive 94/56/EC, which establishes welcome. enhanced. the fundamental principles governing “We need access to relevant data, which The executive director said the safety the investigation of civil aviation acci- is not the case today,” he explained. record in Europe is good, “but we lag dents and Directive 2003/42/EC, which Will the EASA evolve from a cer- behind North America”. introduces mandatory reporting of tification body into an investigation The Spanair accident in August 2008 accidents and occurrences. authority? (154 fatalities) and the Air France acci- The new proposals could be brought Apparently that is not the objective. dent in June 2009 (228 deaths) “make out this autumn. The idea seems to be to enable it to for an even darker picture”. n They will likely clarify the role of provide investigators with the informa- www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3810 Friday 4 September 2009
Barroso Special partnership force, because the high representative for (continued from page 1) The text also includes a whole section external policy will also be the Commis- on the “special partnership” between the sion vice-president and will therefore be public-private partnerships and to carry out Commission and Parliament and makes a accountable to Parliament. a detailed reform of the EU budget. number of proposals. The EP Conference It remains to be seen whether this state- The paper is based in large part on the of Presidents could, for instance, meet all ment of good intentions that smacks of a letter sent to the heads of state and govern- the commissioners every year just ahead communication operation will win over ment just before the June European Coun- of approval of the legislative programme the political groups, particularly the Social- cil. However, the message this time is fur- and the Commission’s work programme. ists and Liberals, who have drawn up a list ther developed and goes into greater detail, The Commission chief could participate of precise demands. Barroso will meet all because, according to Barroso, the Commis- regularly in question time at EP plenary the political families on 8 and 9 Septem- sion and Parliament have a “closer” relation- sessions on predetermined topics. He even ber, and then on 10 September the Confer- ship since they are by nature “the two EU proposes – addressing a subject close to ence of Presidents will decide whether the institutions par excellence”. “There needs to the hearts of MEPs – to make available to vote on his reappointment will be held on be a special relationship between us, with- Parliament all necessary information on 16 September in Strasbourg or later. n out going against the Council,” he explains, the EU’s external action, “in full respect adding that the member states lent him their of the Council’s prerogatives” of course, The document is available at full and unanimous support in July. especially if the Lisbon Treaty enters into www.europolitics.info > Search = 255729
Economy ECB predicts gradual recovery, leaves rates unchanged
By Sarah Collins In May, the bank announced it would journalists. “[It] should promote the exten- be extending its monetary policy to include sion of credit to the euro area economy and European Central Bank governors have “extraordinary” measures to support the further underpin its recovery. left unchanged the bank’s main borrowing eurozone financial sector, including extend- Although Trichet saluted the “increasing rate, which has stood at 1% since May this ing loan periods from six to 12 months (at signs of stability” in economic activity, he year. After a meeting in Frankfurt, on 3 Sep- the main borrowing rate of 1%) and start- said prices will continue to remain subdued, tember, ECB President Jean-Claude Trichet ing a form of quantitative easing by buying but predicted a return to moderately positive said that current rates “remain appropriate”. up €60 billion worth of commercial bonds inflation rates within a month. “The significant contraction in economic on the market. It marked the first time the According to Eurostat, eurozone inflation activity has come to an end and is followed bank had directly intervened in markets, was -0.2% in August, while industrial pro- by a period of stability and very gradual and came on the back of historic lows in ducer prices were down by 0.8% in July, after recovery,” he told journalists. inflation and lending in the eurozone. increasing the previous month. Retail trade They ECB also left its marginal lending The bank’s current rate “continues to is also down, along with GDP, while unem- facility at 1.75 % and its deposit facility at guarantee liquidity support to eurozone ployment in the 16 countries using the euro 0.25%. banks at favourable conditions,” Trichet told has hit 9.5%, up from previous figures. n
G20 Brown, Merkel and Sarkozy want binding finance rules The leaders of France, Britain and Ger- last year to reform global finance, with rules should encourage risk awareness for all staff many called in a joint letter, published on on tying bankers’ pay to longer-term finan- involved in determining a financial institu- 3 September, for the G20 to adopt “binding cial performance. “The G20 should trans- tion’s risk position” and “variable remunera- rules” and “sanctions” to boost transparency form the above principles into binding rules tion, including bonuses, should be kept at and rein in bankers’ bonuses. Group of 20 for financial institutions with sizable com- an appropriate level in relation to the fixed finance ministers meet in London, on 4 plex and risky business activities and ensure remuneration and must depend on the per- September, ahead of a Pittsburgh summit that there are sanctions at national level for formance of the bank, the business unit and to chart the next steps out of the global eco- banks that do not play by these rules,” reads the individuals,” reads the letter. The letter nomic crisis, with calls to curb bonuses as the letter. “For example, governments could calls for banks to defer payment of “a major part of beefed-up financial market rules top- not give mandates to those financial institu- part” of any large bonus for “an appropriate ping the agenda. French President Nicolas tions which are recognised not to apply inter- period” and for it to be cancelled in case of a Sarkozy, British Prime Minister Gordon nationally agreed binding rules,” reads the negative performance of the bank. n Brown and German Chancellor Angela letter addressed to Swedish Prime Minister Merkel called for the 24-25 September Fredrik Reinfeldt, who holds the six-month The letter is available at summit to build on the G20’s commitment EU Presidency. “Compensation policies www.europolitics.info > Search = 255732
Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info 10 Friday 4 September 2009 N° 3810 EUROPOLITICS
Economy Presidency to tackle unemployment and climate change
By Sarah Collins report released in February by the group led Presidency has put itself under immense by former IMF Managing Director Jacques pressure to hurry the directive on alternative Swedish Finance Minister Anders Borg has de Larosière, and should create three new investment fund managers through the co- set out his five main priorities for the Euro- supervisory authorities with binding powers decision process before the end of its term. pean economy over the coming months. In on the micro level and a Systemic Risk However, the head of the ECON Commit- a speech to the European Parliament’s Com- Council to analyse and predict the risks of tee, Sharon Bowles, has repeatedly said that mittee on Economic and Monetary Affairs future financial crises on the macro side. the earliest possible date for a draft report to (ECON), on 2 September, he said his key However, the UK has managed to secure be published is in November. This would challenges were to deal with the employ- a clause preventing any of the new supervi- not allow for detailed talks, says the newly ment crisis plaguing the real economy and sory authorities from ordering bank bailouts, appointed rapporteur, French MEP Jean- to reach a deal on financing climate change setting burden sharing and binding media- Paul Gauzès, who predicts there could be before the UN’s Copenhagen conference, tion on an unsure footing ahead of the Com- in excess of 900 amendments to the draft. in December. mission’s five-text legislative package due in Sounding a pessimistic note on national bud- He also wants to improve supervision a couple of weeks. gets, Borg said that EU governments’ deficit and regulation on financial markets (the Capital requirements and bonuses are on and debt levels were deteriorating still further. European Commission is due to come out Borg’s mind, too, especially after the French The Commission predicts the average deficit with proposals on supervision, on 23 Sep- push to curb excessive pay in the financial will reach 7% of GDP in 2010, run up mainly tember); restore sound public finances; and sector (see Europolitics 3804). by the Baltic states and Ireland. In October, reinvigorate the Lisbon process post-2010. the Presidency is set to begin talks on an exit The June European Council okayed a Hedge funds strategy from stimulus spending, but here May communication from the EU executive Supervision may be a big worry but a debate is brewing over the Stability and on financial supervision (COM(2009)252), lines are also being drawn on hedge funds, Growth Pact – how much leeway member which outlined a new two-tier structure between member states (the UK is not keen states should be given to set their spending for macroeconomic and micro-level polic- on over-regulating the industry) and outside back on track and how relevant the pact has ing. The architecture is based mainly on a the EU, especially in the US. The Swedish been in preventing runaway budgets. n
EU/NATO New NATO chief in drive to unblock cooperation with EU
By Paul Ames though NATO-EU talks. As a result, itary power and trans-Atlantic engagement Ankara has effectively limited formal EU- of NATO with the civilian and financial NATO’s new Secretary-General Anders NATO cooperation to Bosnia. That forces resources of the EU, think how much pos- Fogh Rasmussen is reporting early prog- the two organisations to formulate infor- itive change we could achieve,” he said. ress in his drive to relaunch relations mal, ad-hoc arrangements that allow their Turkish sources echoed Rasmussen’s between the Atlantic alliance and the missions to work together in Afghanistan, positive assessment of his talks in Ankara, European Union, which have long been Kosovo or the Horn of Africa. “This is a suggesting an opening could be found. hamstrung by the Turkey-Cyprus dis- waste of resources. It makes our missions Diplomatic sources said there was a pute. The former Danish prime minister less effective, and therefore longer. And it willingness to work for a solution by says current restrictions on cooperation potentially puts personnel at risk,” Fogh the end of 2009. A new formula setting between the two organisations in Afghan- Rasmussen told reporters this week. out structured cooperation between the istan are putting the safety of personnel at In Afghanistan, for example, the inabil- two organisations could be included in risk and he has made finding a solution a ity of NATO and the EU to draw up an the revised strategic concept which the priority since taking on the alliance’s top overall security plan means EU officers alliance is drawing up for next year. job on 1 August. deployed to train the Afghan police must A compromise could involve Turkey Underscoring his concern, Rasmussen work out local arrangements for their relaxing its objections to more EU-NATO flew to Ankara and Athens within weeks protection with commanders of national cooperation, while it is brought closer to of taking the post, to sound out the Turk- military units serving with NATO’s force. EU defence structures, such as the Euro- ish and Greek leadership on the possibili- Rasmussen says he is encouraged by pean Defence Agency. Behind it all, diplo- ties of easing restrictions on EU-NATO the response from Greek and Turkish mats are hopeful the whole dispute could collaboration. officials, but said they had to get beyond be made irrelevant by a political solu- Since Cyprus joined the EU in 2004, the “theology” of the dispute and make tion to the 35-year division of Cyprus as Turkey has expressed concern that sensi- sure the relationship could be developed diplomatic efforts intensify ahead of next tive military information could be passed to its full potential. year’s presidential elections in the island’s on to the Greek Cypriot government “If we could actually coordinate the mil- Turkish-run North. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3810 Friday 4 September 2009 11
EU/US MEPs want say on new SWIFT agreement
By Sarah Collins attacks to identify, track and pursue foreign joint hearing of the Economics and Civil terrorists and their financiers. After the news Liberties Committees, against the secrecy European parliamentarians are emerged, the practice was deemed illegal surrounding the negotiations. MEPs, such incensed at the way an interim agree- by the European data protection supervisor as Sophia in’t Veld (ALDE, Netherlands), ment with Washington on the US Trea- and the Commission intervened in the row. came out against the holding of meetings in sury’s access to EU bank data held by An agreement on US access to and storage camera and German MEP Alexander Alvaro SWIFT is being negotiated. of the information was reached under the complained that parliamentarians were not MEPs want to wait until the Lisbon Treaty German Presidency, in June 2007 – which given immediate access to important docu- comes into force before reaching a deal ensured the data were subject to strict con- ments relating to the talks. The Commission – giving them powers of co-decision on the trols and only used for counter-terrorism is trying to dampen criticism by inserting a issue. But a move by SWIFT (the Society for – but this is now effectively compromised ‘sunset clause’ in the agreement, meaning Worldwide Interbank Financial Telecom- because of SWIFT’s decision to relocate. it cannot last beyond 12 months, but it has munication) to relocate its main data centre done little to stymie MEPs’ outrage. from Virginia in the US to Switzerland has Legal problems Belgian MEP Louis Michel – the former forced the European Commission to try to According to the Commission’s Director- development commissioner – questioned put in place a stop-gap agreement. General for Justice, Freedom and Security, why the agreement could not be deferred SWIFT, which processes financial flows Jonathan Faull, the EU is now in a “particu- until the Lisbon Treaty was in force. How- between banks, has been caught up in a larly delicate” legal situation, as the current ever, the Commission says that the legal gap maelstrom of controversy after it emerged mandate for a new agreement is being nego- between the current agreement becoming in 2006 that US authorities had secretly tiated under the Nice Treaty – which does null and void (after SWIFT’s decision to subpoenaed data on EU citizens from the not allow Parliament co-decision rights. rehome its server) and the entry into force Belgian-registered company’s storage centre If and when the Lisbon Treaty comes into of the treaty is too large to justify waiting. in Virginia, as part of the Bush administra- force, MEPs will have a say on the matter, The Swedish Presidency says it hopes to tion’s Terrorist Finance Tracking Program but their hands are tied for now. Several conclude a deal before the end of its term (sic), put in place after the 11 September deputies spoke out, on 3 September, in a in December. n
Climate change EU supports Global Framework for Climate Services
By Anne Eckstein elling and forecasting; 3. a new information ties to speed up their work. He is placing his system on climate services; and 4. a climate hope in the UN special ‘climate’ session, The European Commission has made applications programme. These services which will bring together the world’s policy known its support for the Global Framework will give decision makers the information makers, on 22 September in New York, in for Climate Services, adopted on 3 Septem- the wings of the UN General Assembly. ber at the Third World Climate Conference The framework is meant “I am expecting sincere and constructive (WCC-3), being held in Geneva from 31 discussions in New York. I am waiting for August to 4 September under the auspices to boost the potential of bridges to be built. I am expecting impor- of the World Meteorological Organisation climate change adaptation tant results,” Ban Ki-Moon told representa- (WMO). The framework is meant to boost measures tives and ministers of the 150-odd countries the potential of climate change adaptation taking part in the Geneva meeting, on measures and fits naturally into the dynamic whom he is relying to give fresh political of the global climate change negotiations they need to adopt viable policies for key impetus to the negotiations. that will culminate from 7 to 18 December socio-economic sectors – water, agriculture, The talks are running into the hurdle with the Copenhagen conference. fisheries, health, forestry, transport, tourism, of financing aid for the developing world. The Global Framework for Climate Ser- energy and disaster risk management – given The European Commission is expected vices will respond to the urgent need for the variability of climate change. to adopt a communication setting out its climate forecasts and information that can views, on 10 September, but will probably facilitate decision making and contribute to Speeding up negotiations not mention any figures at this stage. The better management of climate-related risks. After denouncing the slow pace and paper, which will contribute to the EU’s It comprises four key elements: 1. a renewed narrow scope of the preparatory negotia- internal debates – Ecofin Council on 20 determination to strengthen climate obser- tions in the run-up to the Copenhagen con- October, Environment Council on 21 vation programmes and ensure free and ference, United Nations Secretary-General October and European Council on 29- open access to the data compiled; 2. greater Ban Ki-Moon seized this opportunity to 30 October – is hardly likely to break the priority for research on climate change mod- issue a new and pressing appeal to the par- stalemate in the international talks. n
Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info 12 Friday 4 September 2009 N° 3810 EUROPOLITICS
Informal Gymnich Council Iran and EU strategy in Afghanistan on agenda
By Fabrice Randoux eral Affairs Council, on 14 September. political confusion, awaiting the outcome The Europeans are not sure what attitude of the presidential elections, held on 20 Resumption of the Israeli-Palestinian to take towards the Iranian regime, which August. Although the accent so far has peace process, Iran’s nuclear activities is using delaying tactics on the nuclear been on military action against the Tal- and the European strategy in Afghani- issue. On 1 September, Iran’s lead negoti- iban, the EU would like the international stan and Pakistan are three key interna- ator, Saeed Jalili, announced that Tehran community to shift its effort to training tional issues on the agenda of the infor- would table proposals for negotiations with Afghan security forces and contributing mal (‘Gymnich’) meeting of EU foreign the 5+1 countries, namely the five perma- to the construction of a civil governance ministers, in Stockholm on 4 and 5 Sep- nent members of the UN Security Coun- infrastructure. “There has to be a shift tember. During the first day’s session, cil (United States, China, Great Britain, from a strong military presence to a strong Javier Solana will report to the ministers France and Russia) plus Germany. The civilian presence,” said Carl Bildt during a on his four-day Middle East tour (Syria, major powers, which suspect Iran of con- visit to the country, on 1 September. The Israel, Palestinian Territories, Lebanon tinuing its nuclear programme for military minister explained that the European strat- and Egypt) that began on 30 August. In aims, urged the Islamic Republic in April egy should focus on the “civilian, political Israel, Solana stated that American, Pal- to come back to the negotiating table and and economic means” to build “rule of estinian and Israeli leaders could meet Barack Obama gave Iran until September law, governance mechanisms and an anti- in the wings of the UN General Assem- to respond. On 31 August, at a joint press corruption drive”. These topics “are vital bly, in late September, to jump-start the conference, Angela Merkel and Nico- for winning the war,” he observed. peace process. “I spoke to Prime Minister las Sarkozy stepped up their criticisms The document to be discussed by the Benjamin Netanyahu. I had the feeling of Iran, warning it to take seriously the ministers with a view to adoption at the that it would be possible to work out an threats of tougher sanctions, which could General Affairs Council in October arrangement before the start of the Gen- focus on the energy sector. “There are lists a set of priorities: training centre eral Assembly that will allow us to resume three clocks ticking on the Iranian case: for civil servants, local-level governance the negotiations,” he said. Washington, the Iranian clock, which ticks very slowly, (with agricultural and rural development backed by the large European countries, the Israeli clock, which is very fast, and the projects), reinforcement of EUPOL (the is calling for a total freeze of colonisa- American clock, which is the most impor- police training mission), reform of the tion as a preliminary to resumption of the tant and will be decisive,” summed up a justice system, strengthening of the polit- talks, which Israel has rejected to date. European source. ical system and of the president’s role and respect for women’s rights. It also Three clocks ticking Stress on civilian means discusses the EU’s commitment in Paki- Iran’s nuclear activities will also be up On 5 September, the second day of the stan, where the aim is to build partner- for discussion, although Swedish Minister meeting, the ministers will debate the ship in a large number of areas, including Carl Bildt’s letter of invitation to fellow EU’s strategy in Afghanistan. Violence the commercial sector, in keeping with ministers states that he plans to address has reached record levels in the last few what was decided at the first EU-Pakistan this topic in greater depth at the next Gen- months and the country is in a state of summit, on 17 June in Brussels. n In Brief
Grossetête named health care European Commission. The text has in the EU. Over a year, in July 2009, rapporteur given rise to a number of differences of compared with July 2008, the retail sales On 2 September, the European opinion between the member states (see index decreased by 1.8% in the eurozone Parliament’s Committee on Europolitics 3785). and by 0.9% in the EU. In terms of Environment, Public Health and Food monthly changes, the highest increases Safety appointed Françoise Grossetête Retail trade up in EU were observed in Sweden (+2.2%), (EPP, France) as rapporteur on the In July 2009, compared with June 2009, Romania (+1.8%), and Belgium (+1.4%) directive on patients’ rights in cross- the volume of retail trade fell by 0.2% and the largest decreases in Estonia border health care. This directive, which in the eurozone but increased by 0.2% (-3.9%), Spain (-1.2%) and Latvia (-1%). is one of the priorities of the current in the EU, indicated Eurostat, on 3 Swedish Presidency of the Council, September. In June, retail trade remained was presented on 2 July 2008 by the stable in the eurozone and rose by 0.3% www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3810 Friday 4 September 2009 13
In Brief
EIB loans for SMEs in Romania Innovation: UEAPME welcomes EIB loan for public investment in The European Investment Bank (EIB) Commission communication Aragón is providing two intermediated loans UEAPME, the European craft and SME The European Investment Bank (EIB) to support the projects of small and employers’ organisation, welcomed granted, on 3 September, the Aragón medium-sized enterprises in Romania: the approach taken by the European Region a €200 million loan to support a €80 million to Bancpost S.A. and €60 Commission in its communication series of investments over the four-year million to EFG Leasing IFN S.A. The on innovation policy, released on 2 period 2009-2012. This is a framework loan to Bancpost Romania will finance september (see Europolitics 3809). loan for financing small and medium- small and medium-scale projects According to UEAPME, the EU scale projects throughout the Aragón promoted by SMEs in various sectors executive showed a better understanding region aimed at stimulating economic of industry, agriculture, tourism and of innovation, which has to be seen as a growth, job creation and competitiveness services. The loan to EFG Leasing combination of all stakeholders acting in by fostering human capital, culture, Romania will support smaller projects in the right environment. The document urban regeneration, sustainable Romania in the areas of industry, services also identifies the right challenges to mobility, research and innovation and (including tourism), agriculture, health, fill the innovation gap between Europe the sustainable use of natural resources. energy and environmental protection, and its main competitors, namely the The project comprises 91 schemes in usually promoted by SMEs, with up to protection of intellectual property rights, the fields of health, education, social 30% also being available to finance the access to finance and a better cooperation inclusion, culture and cultural heritage, projects of mid-cap enterprises and public between science and business. However, administration, sustainable transport, sector entities. UEAPME called once again on the EU information and communication to make progress on a single Community technologies, research, development and Battery recycling slow to catch on patent, which would dramatically boost innovation and the environment. The European Union is not doing innovation in SMEs, and on member enough in terms of the collection and states to make use of all the existing CAP: Swedish priorities recycling of batteries, with an average of opportunities to promote innovation via Sweden’s Agriculture Minister Eskil 14.5% per country compared with the state aid, public procurement and the Erlandsson presented the Council 25% required as of 2012 by Directive creation of lead markets. Presidency’s priorities for this half-year to 2006/66/EC, indicated the European the European Parliament’s Agriculture Battery Recycling Association (EBRA), Prolongation of Hungarian scheme Committee, on 2 September in Brussels. on 2 September. Compared with the authorised He said he supports “a forward-looking 190,000 tonnes of batteries placed The European Commission authorised, Common Agricultural Policy that evolves, on the European market each year, on 3 September, a six-month so as to remedy the situation of injustice the quantities collected and handled prolongation, until 31 December 2009, faced by farmers”. The Presidency stagnated in 2008 (22,800 tonnes, of a Hungarian recapitalisation and also plans to organise a debate in mid- +1% compared with 2007), whereas guarantee scheme for credit institutions. October on this policy, but intends to the majority of member states have It found that the prolongation of the focus primarily on food, the climate and now transposed the 2006 directive into measures, initially approved on 12 energy. On budgetary matters, Erlandsson national law. This sets a target of 25% February 2009 (see Europolitics 3693), is commented that the EU budget is of recycling by 2012 and 45% by 2018. in line with its guidance communication sufficient in the short term to remedy “It’s getting off the ground particularly on state aid to overcome the financial today’s milk market problems. “For the slowly in Italy, the United Kingdom and crisis. In particular, the extended longer term, we’ll see after the report new member states,” noted Emmanuel measures are non-discriminatory, limited due out next year.” Asked about export Beaurepaire, secretary-general of Ebra. in time and scope, provide for a market- refunds, he said he was not particularly At this stage, the problem lies above all in oriented remuneration and foresee in favour of this instrument, which is the collection because - except for Italy, adequate safeguards to minimise potential “harmful to farmers from poor countries”. which still dumps part of its batteries distortions of competition. - the other countries generally handle and recycle the materials recovered, he added.
Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info 14 Friday 4 September 2009 N° 3810 EUROPOLITICS
EU Agenda
Friday 4 September (2005) 591 final of 16 March 2005 declaring Upcoming incompatible with the common market state aid C8/2004 (ex NN 164/2003) granted by conferences European the Italian authorities to companies newly listed on the stock exchange in the form 11 September, Paris Parliament of legislation providing for a lower tax rate n What future for human rights and The President’s diary for those companies for three years and a democracy in Europe? The role of the 9:00-19:00, Stockholm, Sweden downward adjustment in the calculation of Council of Europe n Official visit to Sweden - Meeting with taxable income corresponding to the costs of Subject: Sixty years after its creation, in a Carl XVI Gustaf, king of Sweden obtaining listing on the stock exchange completely changed political and economic environment, the Council of Europe faces 9:15 new major challenges for the defence of Third Chamber human rights and the democratic ideal in Council of n Judgement T-368/05: Austria v Commission Europe. Agriculture Organisers: Council of Europe Ministers Annulment of Commission Decision Contact: [email protected] Informal Meeting of Foreign 2005/555/EC of 15 July 2005 excluding from Venue: Assemblée Nationale, (Salle Ministers (Gymnich) Community financing certain expenditure Lamartine), Paris 4-5 September, Stockholm incurred by the member states under www.coe.int/t/coefuture the ‘guarantee’ section of the European Meeting of Coreper I Agricultural Guidance and Guarantee Fund 17-18 September, Berlin Brussels (EAGGF) [notified under number C (2005) n European smart grid strategies: Achieving 2685] (OJ 2005 L 188, p. 36) a successful transition Subject: The conference will explore in depth European all the core sector areas, including optimising Saturday 5 grid infrastructure, integrating large-scale Commission intermittent generation, deployment September priorities, finance and incentives, information Travel and visits and communication technology, new n Pawel Samecki in Skne-Blekinge markets, users and energy efficiency. (Sweden): meets regional politicians Council of Organisers: Platts (Malmö); meets press and media at the Contact: Stacey Knox, Tel: +44-20-7176- Malmö University (Orkánem); visits local Ministers 6226, [email protected] projects: MMSS Moving Media Southern Informal Meeting of Foreign Venue: Hilton Berlin Sweden (a project aiming to strengthen and Ministers (Gymnich) www.platts.com develop the cluster for digital media and 4-5 September, Stockholm animation in the region) and the Öresund 21-25 September, Stockholm Science Region project (supporting clusters n 16th World Congress and Exhibition on and business networks) Sunday 6 September Intelligent Transport Systems and Services (ITS) Subject: With the theme ‘ITS in Daily Life’, European the 16th ITS World Congress will present Court of First and demonstrate how new ITS solutions Commission can improve everyone’s mobility, every day. Instance Travel and visits Contact: Charlotte Read at Complete Media 9:15 n José Manuel Durão Barroso participates in Group, 020 7420 3550 Third Chamber the opening session of the Community Sant’ [email protected] n Judgement T-211/05: Italy v Commission Egidio - 70 years after the outbreak of the Venue: International Fairs State aid second World War. Faiths and cultures in (Stockholmsmässan) Annulment of Commission decision C dialogue (Krakow, Poland) www.itsworldcongress.com www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3810 Friday 4 September 2009 Insight 15
Insight EU Court of First Instance at 20
Anniversary marks turning point
By Sophie Mosca brands and public service. However, In twenty years, the Court of Justice as a result of the reforms of the Trea- has also changed significantly and Jean- The Court of First Instance (CFI) of ties, it became the general judge for Claude Bonichot, the French judge who the European Union is to celebrate its direct appeals. This extension of its area carried out other duties there at the end twentieth anniversary. It is one of three of competence, as well as successive of the 1980s, acknowledges that it took jurisdictions in the European jurisdic- enlargements, resulted in an increase time for him to find his place. More than tional system, which also includes the in cases brought before the CFI and a the impact of the enlargements, it is the Court of Justice and the Civil Service change in its organisation. An in-depth domains of intervention and the techni- Tribunal. In the stately palace in which review of its operation was required so cal nature required that have a signifi- it is housed, designed by the French that the duration of proceedings and the cant incidence on the work of judges. architect Dominique Perrault, prepara- quality of judgements would not suffer. Added to these two jurisdictions in 2004 tions are underway for this grand event. However, only structural measures was a third, that of the Civil Service Tri- Created to establish and improve would make it possible to face this con- bunal, tasked with litigation between the jurisdictional system by instituting tinuous growth in litigation, underlined the Community and its agents. another level of jurisdiction and dis- Marc Jaeger, its president. Jaeger also In 20 years, 15,000 decisions have been charging the court, the CFI originally sounded the alarm bell: “In the medium issued by this unassuming institution, handled cases concerning competition, term, we need more judges”. which is ‘small’ in size (2,000 persons), Cj ce ©
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but large in terms of its power. It was in Court of Justice that disputes between and recognition of certain controlled 1952 with the European Coal and Steel member states and the institutions or appellations, among others. Community (ECSC) that the Court of differences between institutions are set- Certain decisions have been subject Justice was instituted, whose essential tled. It is also before the court that indi- to heated debates, such as a 2005 ruling mission consisted of examining the law- viduals or businesses contest the deci- by the court, which recognised the pos- fulness of Community acts and ensuring sions of the institutions. It is questioned sibility for the European Commission the interpretation and uniform applica- by national jurisdictions on the most to anticipate penal sanctions in order tion of Community law. This institution diverse subjects of everyday life: social for Community legislation in the field has seen a considerable increase in its aspects, citizenship, environment, secu- of the environment to be respected. areas of competence, number of judges rity or food, and the judgements it issues Member states competent in penal mat- and number of languages of proceed- are imposed on all member states. For ters did not appreciate this and criti- ings. Its linguistic regime is unequalled example, the court can be credited with cised the tendency of European judges in any other jurisdiction in the world, measures in favour of the protection of to interfere in areas outside of Com- since each of the 23 official languages pregnant women, the fact that health munity law, regardless of the respect of of the Union may be a language of the care provided in another country may member states’ competences. Similar proceedings. This multilingualism is a be reimbursed, recognition of annual criticism accompanied a 2006 ruling, burden on the duration of proceedings leave as a social right conferred by Com- which allowed the reimbursement of but it cannot be ignored. It is before the munity law to all European employees cross-border medical costs. n
Court of Justice Court of First Civil Service Instance Tribunal President designated from among the judges for President President three years designated from among the judges for designated from among the judges for three years three years 27 judges (one per member state) 27 judges (one per member Seven judges state) appointed by the Council for six years Eight advocates-general designated by member states for six designated by member states for six years Registrar years appointed by the judges for three Registrar years Registrar appointed by the judges for three appointed by the judges for six years, years Own registry is the institution’s secretary-general Own registry Tribunal sits: Court of Justice sits: - in chambers of three judges - in chambers of five or three judges Court of First Instance sits: - in full court if the case is particularly - in grand chamber (13 judges) - in single-judge formation important - in full court if the case is particularly - in chambers of five or three judges Possibility of chamber of five important - in grand chamber (13 judges) judges or a single judge, to be - in full court if the case is particularly determined by rules of procedure important Cj ce © www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3810 Friday 4 September 2009 Insight 17
Interview with Marc Jaeger, president of the EU Court of First Instance “We need more judges”
By Sophie Mosca This is not enough, however, because liti- expecting more people to turn to us as a gation is undergoing a systemic increase. result. The Court of First Instance has turned There is a risk that it may soon exceed our Lastly, the Court of Justice is also con- 20. What are the leitmotifs of its internal capacity. fronted with an increase in actions and has evolution so far? reached the limits of its working capacity. The court has evolved on the basis of three How can you foresee such growth in liti- It will try to hand over certain cases to the key ideas. First, the increase in its compe- gation and when will it reach the critical Court of First Instance. We are not partic- tences has altered its functioning. Set up stage? ularly seeking this but it is in the nature of to deal with technically complex things. In the light of these factors, our and voluminous cases mainly in working capacity will not improve as the field of competition, today it much as in 2008 in the coming years: has become a general tribunal there will necessarily be a phase dif- for all direct actions (annulment, ference. The waiting room will fill up failure to act, damages). The and litigants will be faced with longer second is our ongoing priority procedures. of maintaining the quality of our decisions. Quality has not suf- Considering this context and the fered from the expansion of our complexity of the cases submitted to competences. Third, we make the court, could the specialisation of a point of never going beyond judges represent a solution? the framework of reviewing law- The very creation of the Court of fulness. We are not a substitute First Instance is an illustration of this for the administrative authority since it was placed in charge of a spe- that has taken the decision and cific type of litigation. Ditto for the whose lawfulness we review. Civil Service Tribunal. The answer For example: the Commission would be ‘yes’, in terms of creating penalises a company, which is other specialised courts alongside the unhappy with the decision and CFI, as was done for civil service liti- challenges it before us. Our role gation. On the other hand, it would is to review whether the disputed be ‘no’ in terms of internal speciali- decision is in conformity with sation, because we are meant to be the regulatory and legal frame- ‘all-around men’, ready to address work in which it was adopted. © C J CE all problems equally effectively Jaeger: “Our review is strictly legal and technical” This review is strictly legal and (competition, trademarks, terrorism). technical. It will be very significant over the medium Policy makers will have to take structural term, and the institutions or bodies that measures either by creating specialised 2008 was a year of change in the court’s adopt decisions that can be challenged in judicial chambers or by increasing the working methods. Are the results equal to actions before the court are already or will number of judges at the Court of First the effort invested? soon be producing more decisions. Instance. In any case, we need more Absolutely. The reforms put in place The Office for Harmonisation in the Inter- judges. We do not have a right of initia- since my election have produced con- nal Market is increasing the number of tive. It is up to the Court of Justice or the crete results. First, we carried out internal internal actions, the European Chemical Council to act. It is my responsibility to restructuring. The number of chambers Agency is entering a growth phase and will sound the alarm. was increased to eight (plus an appeals thus be adopting new decisions, the Com- chamber). We scheduled additional hear- mission is starting to analyse the situation How do the three courts work to ensure ings, synthesised our documents more of state monopolies and enterprises in new the uniformity of EU law? and streamlined case assignment. Internal member states. All such decisions may be The answer is inherent to the hierarchy of management instruments allow real-time challenged before the court and will lead the courts. The Civil Service Tribunal’s monitoring of cases. We modified our to an increase in litigation. decisions may be appealed before us and, rules of procedure, in particular to be able We are also seeing growing awareness of as need be, we try to restore the uniformity to rule in trademark cases without holding EU law in the member states that joined of the law. The same happens between us a hearing unless the parties submit a rea- in 2004 and 2007, which are going to rely and the Court of Justice. When we are soned request. In 2008, we handled 52% on this law increasingly. faced with a new legal problem, there can more cases than the previous year and the The Lisbon Treaty eases the rules for lodg- be a period of wavering, but the Court of number of hearings doubled. ing an action for annulment so we are Justice quickly restores order. n
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Course of proceedings before Court of Justice
By Sophie Mosca the rourt’s president and the first advo- again at a public hearing, the advocate- cate-general, who will appoint a judge, general’s opinion is presented to the An action takes place in three stages: judge-rapporteur and an advocate-gen- Court of Justice. It analyses in detail the the written procedure, the oral phase eral in charge of the case. The judge legal and other aspects of the case and and the deliberations. The following will be responsible for overseeing the suggests a solution to the problem. The example of an action for failure to fulfil case and the judge-rapporteur, acting court is not bound by the advocate-gen- obligations illustrates this course. independently, must propose a solution eral’s opinion. This marks the end of the The Registry of the Court of Justice to the dispute. oral stage of the case. receives a large envelope from the Euro- If the case is not considered to raise pean Commission. It contains an appli- Oral stage any new points of law and where case cation that presents the Commission’s Once the written procedure is closed, law is clear, the court may decide, once allegations against Spain in environ- the parties are asked to state whether the advocate-general has presented his mental matters. The registrar registers they wish the court to hold a hearing. opinion, that the case will be judged the application, has it translated into all Based on a report by the judge-rappor- without conclusions. the EU official languages and then pub- teur and after hearing the advocate- lishes in the EU Official Journal a notice general, the court decides on the for- Deliberations that details the Commission’s argu- mation of the court to which the case At this point, the judges engage in ments. Spain is alleged to have failed to will be referred, eg a chamber of five deliberations alone, without interpret- adopt provisions transposing into Span- judges, and whether there will be a hear- ers, in a common language, which ish law a 2006 directive on the manage- ing. The judge-rapporteur sums up the traditionally is French. ment of waste from the mining industry allegations and the parties’ arguments They deliberate on the basis of a draft or to have failed to notify its measures in a report for the hearing. This report judgement prepared by the judge-rap- to the Commission ahead of the dead- is made public in the language of the porteur. Each judge in the chamber may line of 30 April 2008. It is decided that proceedings at the hearing. propose changes. The decisions of the Spanish will be the language of the The case is argued at a public hear- Court of Justice are taken by majority. proceedings. ing, before the chamber of five judges Judgements are signed by all the judges plus the advocate-general and the regis- who have participated in the delibera- Written stage trar. The judges and the advocate-gen- tions and their summary, the operative According to the Treaty, this new case eral may ask questions to the parties. provisions, is delivered at a public hear- is an action for failure to fulfil obliga- Interpretation into as many languages as ing. There is an average of 17 months tions. The applicant, the European necessary is provided. A few weeks later, between the start of the case and the Commission, asks the delivery of the judge- court to establish that ment. Spain, the defendant, Court of First Instance procedure (*) Judgements and con- has not complied with Direct actions and appeals clusions of the advo- its obligations. The writ- Written stage cates-general are avail- ten stage is launched Application able on the court’s with the registration Service of the application to the defendant by the registrar website on the day they and other administra- Notice of the action in the EU Official Journal (C series) are delivered and later tive formalities. It also Assignment of the case to a formation of the court in the Reports of Cases includes the transmis- Designation of the judge-rapporteur before the Court of Jus- sion and registration Defence tice and the Court of by the registrar of each [Objection of inadmissibility] First Instance. party’s arguments. The [Reply and rejoinder] The following table application is served to [Other pleadings] outlines the proce- the other party, which The judge-rapporteur prepares the preliminary report dure before the Court has one month to Chamber conference of the judges of First Instance. The lodge a defence. Then [Measures of inquiry] main difference resides the applicant has one Oral stage in the fact that there month to reply and the [Report for the hearing; hearing] is no permanent advo- defendant may answer Judges’ deliberation cate-general at the CFI, this reply in a rejoinder. Judgement but if the case requires, The Registry transmits (*) Optional stages of the procedure are shown in brackets. Documents one of the judges of the the file containing the shown in bold type are those which in principle are public. formation of the court parties’ arguments to may play this role. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3810 Friday 4 September 2009 Insight 19
Types of actions and special procedures Different types of actions can be brought the Court of First Instance by a member • Reference for a preliminary ruling before the Court of Justice and Court of First state against an act by the Commis- Member states’ domestic courts, which Instance depending on the nature of the sion or Council concerning state aid are the first-level judges in matters of Com- litigation and the applicant. Special proce- or dumping measures, against an act munity law, can and in some cases must turn dures allow for derogations where required for which the Council has imple- to the Court of Justice for clarification of a by exceptional circumstances. menting powers or by a citizen or point of law, for instance to ensure the con- company against an act taken by an formity of a national law with Community Types of actions institution. legislation. The Court of Justice does not • Action for failure to fulfil obligations • Action for failure to act rule in the original litigation being heard These concern member states that These actions are aimed at reviewing the by the national court, but gives its interpre- have failed to fulfil their obligations lawfulness of an institution’s failure to act. tation of the point of Community law in a under EU law. The case is referred to They may be initiated before the Court of judgement or order that is binding on both the Court of Justice by the European Justice and the Court of First Instance based the court that submitted the reference and Commission or by a member state. If the on the same criteria as actions for annul- on all other national courts. All the member court establishes that the defendant has ment. states and the EU institutions may initiate failed to fulfil its obligations, the offend- • Action for damages this type of procedure. ing state is obliged to remedy its fail- This type of action may be used by an insti- ure without delay but the court cannot tution, member state, citizen or company to Special procedures compel it to comply. obtain compensation for injury suffered as a • Applications for interim measures are • Action for annulment result of an act taken by an EU institution or used to obtain a suspension of execution of This type of action is used by a plain- one of its agents. an act by an institution that is the object of tiff to seek the annulment of an act by an • Appeal an appeal, or any other temporary measure institution (decision, regulation). If the An appeal may be lodged with the Court that may be necessary to prevent serious and case is well-founded, the act is declared of Justice against a decision of the Court irreparable injury to a party. null and void retroactively to the date of of First Instance by one of the parties to • Accelerated procedures allow the Court its entry into force. the decision. Appeals are limited to points of Justice or the Court of First Instance to rule Actions for annulment may be brought of law. If the case is admissible and well- swiftly in cases of extreme urgency by reduc- before the Court of Justice by one EU founded, the Court of Justice annuls the ing the time periods involved and eliminat- institution against another or by a CFI’s decision. If the appeal is ready for ing certain procedural steps. The decision on member state against the European Par- judgement, the court settles the dispute. whether use of this procedure is warranted by liament or against certain Council acts. Otherwise, the case is sent back to the the urgency of the case is up to the president Such actions may be brought before Court of First Instance. of the Court of Justice or of the CFI. n Cj ce ©
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Interview with Jean-Claude Bonichot, judge at EU Court of Justice “We are used to discussion and criticism”
By Sophie Mosca tured so that, little by little, it restricts a number of member states: the distribu- their margin of manoeuvre. It is, how- tion of pharmacies according to needs You were familiar with the Court of Jus- ever, they who make the legislation and the fact that a pharmacy is run by tice about twenty years ago. Have you and afterwards they are surprised that a pharmacist. This is essential. Without found your feet, despite the changes it they must respect it. I think they should these rules, there would be no more pos- has undergone in the meantime? better evaluate the constraints that they sibilities for regulating health care expen- I needed some time. This concerns the impose upon themselves. I think about diture. One cannot say that these rulings role of the judge, which is different are eroding the competences of to that of a magistrate, as well as the member states. development of areas in which the court intervenes. On the one hand, Is the court sensitive to criticism? the court must deal with increasingly Yes, absolutely. We are not cut off technical subjects (telecommunica- from society, judges must listen to tions, environment) and on the other society. Firstly, we are very well hand it has new competences in the informed of what is going on in field of external relations, security all member states, through the and justice, in which the differences exchange of information between in legal systems and conceptions us, either general information or are profound. Learning about the information on case law in our subject was easier 20 years ago. respective member states. We dis- cuss criticisms made of the court’s What was the impact of enlarge- case law. We are all used to discus- ment from 15 to 25 and then 27 sion and therefore criticism. This on the court’s way of working ? is normal. Obviously, the fact that there are more of us has resulted in more How does the court prepare for the points of view, which must be taken aspirations expressed, sometimes into consideration, and a greater latently, by civil society? number of different legal systems. The court is a jurisdictional insti- This does not make our work any tution, it is not self-starting. Judges
easier. But the impact of enlarge- © C J CE respond to the issues referred to ment has been less than you could Bonichot: “Judges must listen to society” them. These issues come through imagine. I am amazed at the institution’s the timeframe for the transposition of different channels. Half of them reach us capacity of integration and the fact that we directives, which is sometimes unrealis- via a preliminary ruling, which presents do not have any real problems in settling tic; it would be better to take an extra an explanation by the judge of the dis- disputes; we are able to stay on course in year than to risk proceedings for failure missal of the national context, the appli- terms of case law, despite the number of to fulfil an obligation. cable law and by means of this we very states. This is due notably to the fact that We can discuss certain rulings, but the closely handle societal issues: civil rights, there are chambers of five judges with general trend in case law is very bal- child custody or rights of foreigners. In presidents elected for three years, which anced, it naturally draws consequences other types of cases, breaches or other is a structural factor of the court’s work. from Community law. In the area of matters, we also tackle societal issues: It is also due to the fact that, while we health, for example, it has been said that we saw this on GMOs, with the Khadi are very different, we are working on the the court, through its Watts ruling, went case, at the heart of one of the most seri- same subject and are confronted with the very far by authorising patients, under ous problems of society, daily security, or same problems. First we were on a bicy- certain circumstances, to be treated in even in the field of the environment with cle, then a tandem, then on a four-seater another member state. Now, if we con- the sinking of the Erika… We prepare for bike, but we continue to pedal in the same sider the subject as a whole, case law in it via different means. Firstly, all judges direction. this sensitive area is very cautious. The have a course through which they have Hartlauer ruling on the Austrian system been faced with societal problems. Social What is the status on the court’s rela- for health care organisation above all studies is our subject. Next, we remain tions with member states? Some states validates health card systems and sys- up-to-date by taking part in scientific or feel that the court’s decisions erode their tems for the distribution of health care legal meetings on the most diverse sub- supremacy. provision in member states. In a ruling jects, among other things. Each year, for If the states have this impression, it is issued on pharmacies, the court validated example, we meet with the European because the Community system is struc- cardinal rules in pharmaceutical law for Court of Human Rights. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language