EU/China Crises Draghi sketches Debt crisis: Stiglitz tells Europolitics: «Austerity «growth pact» Page 4 Li backs EU Page 12 will surely fail» Page 20 EUROPOLITIcs

The European affairs daily Friday 4 May 2012 N° 4417 40th year

Focus Ecofin Council CRD IV: Majority of states back GNSS Agency compromise, UK still holding out moves to Prague By Manon Malhère behind George’s position is total and permanent flexibility.” The lower chamber of the Czech Parlia- After more than 15 hours of nego- Is the United Kingdom in a com- ment announced, on 3 May, that it has tiations at the Ecofin Council, on 2 promise mindset or is it opposed to an given the green light to the transfer to May, a qualified majority of member agreement at EU level? “I do not want Prague of the administrative headquar- states seemed willing to back a fourth to be described as being anti-Euro- ters of the agency in charge of manag- compromise text drafted by the Danish pean,” said Obsborne, who added that ing Europe’s own global navigation sat- Presidency on the reform of rules on he was seeking binding capital require- ellite system, Galileo. «The agency will capital requirements ments. move to Prague during the summer. for banks, known as The main The exact date has not yet been fixed CRD IV 1. The vote Osborne: “I don’t want stumbling block but I expect it will be 1 August,» said will not take place to be described as being for the 27 con- Czech Transport Minister Pavel Dobes. until the next Ecofin anti-European” cerns the degree The European Global Navigation Sat- Council, however, of flexibility ellite System (GNSS) Agency is the on 15 May, after to apply to the first EU regulatory body to move its “technical checks of the outstanding maximalist harmonisation initially headquarters to the Czech Repub- points,” said Danish Finance Minister proposed by the European Commis- lic, after having been provisionally Margrethe Vestager, on behalf of the sion. Two groups of member states are located in . EU Council Presidency. Meantime, it at odds on this question: on one side, The Galileo system is comprised of is hoped that the United Kingdom will France, Italy, Austria and Luxembourg, 18 operational satellites, and will start sign up to the compromise. which wish to keep flexibility to a mini- to provide the first ‘European GPS’ London finds that there has been mum; on the other, the United King- services to EU users from the end of progress on adding flexibility to pru- dom, Sweden, Poland and certain East- 2014, the Industry Commissioner dential rules, but still finds certain ern European states. This second group has said. Two satellites points very problematical. “If you look wishes to be able to apply more binding will be launched from Kourou, French at the text, we have not implemented rules. Guyana, on 28 September. These will Basel III,” observed Chancellor of the be added to the first two satellites, Exchequer George Osborne. “I don’t Systemic risk buffer which were launched in October 2012, want to be taken for an idiot.” After intense discussions as 27, inter- he said. Six others will follow in 2013 Different observers find London’s rupted by numerous bilateral meetings, and eight others in 2014. The constel- position and negotiating tactics diffi- the Danish Presidency’s compromise lation should grow to 26 satellites by cult to understand. on capital requirements proposes: an 2015, and 30 in 2020. “To take account of what George additional ratio referred to as the sys- The programme will cost five billion wanted on capital, we worked further temic risk buffer, which authorises euro in 2015, said Tajani’s services. with the Presidency to increase flex- the member states to impose stricter ibility,” replied Internal Market Com- requirements for common equity ‘tier 1’ missioner Michel Barnier. “What lies capital than what (continued on page 4)

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Contents N° 4417 Top Stories

European Central Bank EU/China Crises Draghi sketches Debt crisis: Stiglitz tells Europolitics: «Austerity «growth pact» Page 4 Li backs EU Page 12 will surely fail» Page 20

Financial services, banks, Business & competitiveness In Brief insurance Industry: Producer price index up...... 7 Waste sector merger authorised...... 13 Ecofin Council: CRD IV: Competition: Court upholds cartel Green light for acquisition Majority of states back compromise, fine imposed on Legris and Comap...... 8 of Pipelife by Wienerberger...... 13 UK still holding out...... 1 Kellogg cleared to buy Social affairs Pringles Snack Business...... 13 Economic & monetary affairs, Working time: ECJ: Entitlement Authorisation of GM soybean taxation to allowance from unused product not endorsed...... 14 European Central Bank: paid annual leave...... 8 DG INFSO changes name ...... 14 Draghi sketches «growth pact»...... 4 Health: Commission takes pulse EU denounces killing of of Community programmes ...... 9 environmentalist in Cambodia...... 14 Sectoral policies EU slaps sanctions on Structural Funds: EESC opposed Institutions Guinea-Bissau coup leaders...... 14 to macroconditionality «as currently European policy: European left places formulated»...... 5 high hopes in François Hollande...... 10 EU Agenda...... 15 Sustainable development: Transition to ‘green’ economy starts at local level....5 External relations Interview Energy efficiency: ETUC calls Climate change: to start Crises: Stiglitz tells Europolitics: for jobs-environment platform ...... 6 emissions trading scheme in 2015...... 11 «Austerity will surely fail»...... 20 Asylum: Court case illustrates EU/Ukraine: Euro 2012 shortcomings of Dublin system ...... 6 faces EU boycott...... 11 Cyber security: As momentum for EU/China: Debt crisis: Li backs EU....12 action builds, EU’s role remains unclear ...7 EU/Switzerland: Free movement: Berne tries to calm Union...... 13

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CRD IV 443 of the draft regulation). Overall, to Kingdom among them, would prefer to (continued from page 1) meet the United Kingdom’s demands, apply the approach recommended in the compromise text proposes the fol- Basel III. Under the Presidency’s com- is provided for in the Commission’s lowing more flexible provisions: for promise, the EBA would be entitled to proposal, aimed at implementing Basel certain areas, the states may request intervene and to draw up a list of eli- III (Article 124 a). The text provides an opinion from the Commission, the gible instruments but it would not be for a maximum ratio of 3% applying EBS and the European Systemic Risk binding. The approach based on sub- to all bank exposure with no control Board. If one of the three institutions stance rather than form would not be exercised by the Commission. The refuses, the matter goes to the Council, changed, however. 27 are authorised to go as high as 5% which will have to adopt a decision by On leverage ratios, the obligation without controls by the Commission qualified majority. But for two areas, for financial institutions to publish only for domestic exposure. But if this risk weighting (risks attached to invest- their ratios from 2015 would be main- ratio applies to domestic exposure and ments) and large exposure, they may tained, opposed by Paris and Berlin. bank subsidiaries in another member act without seeking authorisation only On liquidity, the Commission could state and if the national supervision for slight modifications. London sees adopt delegated acts based on decisions authorities cannot agree, there will be this as progress, but finds that it does by the Basel III Committee, taking into mediation by the European Banking not go far enough. account specific European characteris- Authority (EBA). Afterwards, if a state On the nature of the financial instru- tics. n wishes to go further, it will first have to ments that can be considered common seek authorisation form the Commis- equity ‘tier 1’ capital, the Commission sion (ex ante control). The question of proposes to apply the 14 criteria set in EBA mediation was debated particu- Basel III determining eligibility for this larly fiercely by Poland and Italy and category. However, in contrast with Sweden pushed for a ratio of up to 5%. Basel III, eligible instruments would (1) The Commission proposed a regulation The United Kingdom seems to accept not be restricted to ordinary shares and a directive in July 2011. The aim of this the new agreement. alone, since the definition of such fourth revision of the Capital Requirements The same cannot be said for shares varies in member states’ national Directives (2006/48 and 2006/49) is to (macro)prudential instruments (Article laws. A minority of states, the United implement the Basel III agreements.

European Central Bank Draghi sketches «growth pact»

By Sarah Collins said. “Clarity about our future, about our predominant focus in the last two years on common European future, is one impor- fiscal consolidation and internal devalua- European Central Bank President Mario tant ingredient of growth,” he said. tion”. The austerity trap has led the Euro- Draghi has fleshed out his idea for a euro- Draghi said it was crucial to attract pri- pean Commission to push for a €10 billion zone “growth pact,» insisting on continued vate investors back into the market by increase in capital for the EIB and to speed budget cuts, labour and competition reform removing legal obstacles to competition up the introduction of project bonds to and an EU-funded infrastructure pro- between companies and changing rules leverage private funding to kick-start key gramme for poor regions. “We have to put that prevent managers from firing older energy, transport and renewables projects. growth back at the centre of the agenda with- workers. “Who’s going to create jobs? The Draghi said that governments that do need out any contradiction with the need to con- private sector creates jobs, and some - a to continue to trim spending should con- tinue to persevere in fiscal consolidation,” few - will be created by the public sector centrate on slashing non-investment expen- he told reporters in Barcelona, on 3 May, at through spending on infrastructure,” he diture, and should try not to raise taxes. the end of a meeting of the ECB’s Govern- said. Reforms needed to be undertaken He made the comments after announc- ing Council. “We need to have a common “with conviction and with thoroughness”. ing that the ECB would hold its main European discipline in doing these reforms “This will free energies in the private borrowing rate steady at 1% for the fifth that is not unlike what we’ve been able to sector that will create jobs,” he said, adding month in a row, with for overnight bor- put in place for the budgetary and monetary that the EU could contribute some money rowing and deposit rates holding at 1.75% and discipline at euro area level,” he said. for low-income areas through the budget and 0.25%, respectively. Draghi pointed He added that politicians needed to and the European Investment Bank - by to a «stabilisation in economic activity at commit to a “path for the euro,” including “means testing the EU funds”. a low level» but warned that problems in ceding more power over budgetary policy The Italian-born ECB president has sovereign debt markets could to the EU. “If we want to have a fiscal union changed his tone of late as eurozone gov- drag down growth. He also congratulated we have to accept the delegation of fiscal ernments face into a double-dip recession Spain and Italy for their spending reforms sovereignty from national governments that Employment Commissioner László but said «several governments need to be to some form of central [authority],” he Andor has said was partly caused by “the more ambitious». n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 4417 Friday 4 May 2012 

Structural Funds EESC opposed to macroconditionality «as currently formulated»

By Isabelle Smets sion’s proposals on thematic concentra- the other hand, the EESC agrees with tion «as a means to reduce fragmentation the Commission’s proposal to determine The European Economic and Social of effort». It recommends greater flexibil- minimum shares to be invested for each Committee (EESC) is opposed to mac- category of regions in relation to the Euro- roconditionality applied to EU cohesion pean Social Fund (ESF). policy, at least «as currently formulated,» “Macroconditionality can On the simplification of procedures, the reads an opinion on the future rules for the represent an obstacle to EESC acknowledges the Commission’s European Regional Development Fund economic growth and lead efforts but considers that too much com- (ERDF), adopted at its plenary session, on plexity remains. «Through an excessive 25 April. In this opinion, the EESC rejects to the withdrawal of aid emphasis on auditing and procedures, both macroeconomic conditionality «for sending and the redistribution of national and European authorities are sti- out the wrong signals and in fine penalising instruments” fling access to EU funding for SMEs and regions and citizens who are not to blame NGOs – too much energy is lost in admin- for macroeconomic excesses committed at istrative burdens. Gold plating at all levels national level». It adds that macrocondi- ity, however. The Commission’s proposal is absolutely to be rejected.» tionality can represent an obstacle to eco- to concentrate a large share of ERDF It also voices concern over the principle nomic growth and lead to the withdrawal financing on specific objectives could of partnership with regional and local of aid and the redistribution of instruments prove less effective for the least developed authorities and civil society. The EESC withdrawn in favour of the more developed regions because «mandatory investment applauds the Commission’s proposals on regions. The EESC is nonetheless not objectives are perhaps not the best way partnership but notes that it is «deeply wor- opposed to all types of aid conditionality. It to achieve the optimal development of ried by signals from the Council where even states that greater use of conditional- the region or member state in question,» some member states seem to restrict the ity in cohesion policy will achieve «more reads the opinion. «Specific development partnership principle». It calls on the Euro- focused and real, sustainable results». goals and needs of the regions are to be pean Parliament and the Commission to The EESC welcomes the Commis- managed in a flexible way,» it adds. On reverse this trend. n

Sustainable development Transition to ‘green’ economy starts at local level

By Anne Eckstein «It is a fact that we cannot continue information on good practices, sustain- our lifestyles and production patterns. able consumption modes and education The implementation of a new sus- Unfortunately, Europe has exported programmes are only a few key elements tainable development strategy that cre- of a ‘Road map towards a ‘green’ econ- ates links between the social, environ- omy’, which the participants consider to mental and economic pillars requires “It is a fact that we cannot be essential. To them, the objectives of a renewed sense of urgency, political continue our lifestyles and Rio+20 will only be reached if the June ambition, coherence and responsibili- production patterns” conference leads to the adoption of a sation. Such was the message of the global political framework. ‘Think green! The opportunities of They also stressed the need to sepa- sustainable development and the green rate economic growth from the use of economy’ conference, organised on 2 its industrialised economic model to resources, the need to modernise the May in Brussels, by the Various Inter- the world. Now it is only through coor- energy sectors and to introduce sustain- ests group of the European Economic dinated action and political commit- able transport policies for people and and Social Committee (EESC). ment at all levels that we will be able goods. The conference was held a few weeks to aspire towards sustainable growth and «Local projects, communities and ahead of the global conference on sus- to reverse environmental degradation,» grassroots initiatives play a central tainable development, Rio+20 (20-22 noted Luca Jahier (Italy), who is the role in achieving a ‘green’ economy. June). The aim of the conference was president of the Various Interests group. It is of utmost importance to motivate to stress that it is first and foremost up The transition to a ‘green’ economy is our fellow citizens to become actively to citizens and civil society to promote an integral part of this process, but it is involved in sustainable development the efficient use of resources and sus- only the first step. Sustainable and envi- strategies,” said the President of the tainable development in the long run. ronmental labelling, the exchange of EESC, Staffan Nilsson. n

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Energy efficiency ETUC calls for jobs-environment platform

By Marie-Martine Buckens ular, it supports the adoption of binding notes the ETUC, it has made possible energy efficiency targets at EU level the renovation of more than 2.4 million An ambitious energy efficiency direc- to achieve an improvement of at least flats, delivering a reduction of 1.5 mil- tive will provide powerful leverage for 20% by 2020. This provision has so far lion tonnes in 2009. The alliance also creating jobs. This is the message trans- been rejected by a majority of member led to the creation of 221,000 jobs in mitted by the European Trade Union states. 2008 and 340,000 in 2010, mainly in Confederation (ETUC), on 3 May, to The ETUC resolution also empha- the skilled trades and construction sec- the member states’ permanent repre- sises the role of employee involvement. tors but also in the production of con- sentatives (Coreper), set to meet on 4 It calls for a mechanism that permits struction materials and in professional May to discuss this controversial issue. both training and participation, point- activities, such as architecture, consul- «The Commission’s original proposal ing out that even the European Com- tancy and engineering. was already very conservative,» states mission’s «limited» proposal estimates The ETUC supports the European Judith Kirton-Darling, ETUC confed- that 2.4 million jobs could be created. Parliament’s amendments providing eral secretary, «and now national gov- for the creation of financing systems ernments are watering down those lim- German example to fund energy efficiency investments, ited demands rather than seeing energy To illustrate its point, the ETUC men- particularly through the use of Struc- efficiency as a means of creating hun- tions the case of the German Alliance for tural Funds. It insists that the directive dreds of thousands of jobs in Europe». Work and Environment, which has pro- set a binding renovation rate for private The resolution, adopted by the ETUC vided strong evidence of the net return buildings. The gradual renovation of in October 2011 on the draft directive on investment in energy efficiency and public buildings alone, as planned by on energy efficiency, supports most of renovation programmes. This alliance the Commission, is not enough, argues the many amendments adopted by the brings together a wide panel of stake- the ETUC, which points out that on the initia- holders: government, social partners public buildings account for only 12% tive of its rapporteur, Claude Turmes and environmental NGOs. Through the of building stock in the EU. n (Greens-EFA, Luxembourg). In partic- active involvement of all these players,

Asylum Court case illustrates shortcomings of Dublin system

By Nathalie Vandystadt did not consider that a sufficient link existed apply from the moment when there is no between Mr and Mrs Kastrati. In March longer a request for asylum. Not only is the Dublin II Regulation 2009, mother and children went to France «The member state on whose territory cumbersome and overly bureaucratic, but on a short-stay visa, without requesting the request was introduced (Sweden) EU member states are all too ready to dis- asylum. Subsequently, the family emigrated is therefore responsible for taking the claim responsibility for asylum seekers, a to Sweden. decisions required by the withdrawal of judgement by the EU Court of Justice has Three months later, the Swedish immi- the request; in particular, to enclose the shown. The 2 May judgement (Case C- gration authorities asked France to deal with examination of the request with the con- 620/10) concerned a case involving Koso- the family’s request for asylum. In fact, under signment of information in the file of the van nationals Nurije Kastrati, Valdrina Dublin II, the member state which granted requesting party,» said the court. Kastrati and Valdrin Kastrati. a residence permit or a currently valid visa is Despite the ’s pro- The court highlighted that under the responsible for examining the request. posal to reform the regulation and increase Dublin II Regulation of 2003, only one The family immediately asked Sweden for solidarity between member states on the member state is responsible for dealing a residence permit, insisting that there was a issue of asylum, negotiations remain at a with a request for asylum, in order to pre- personal link with Mr Kastrati, while with- standstill. In its ‘asylum package’ of 2008- vent asylum seekers from submitting sev- drawing the request for asylum. However, 2009, the EU executive proposed the tem- eral requests. However, in the case of Mrs the family was still out of luck: Stockholm porary suspension of the system of returning Kastrati, it is unclear whether France or ordered the woman and her children to be asylum seekers to the country where they Sweden is responsible for the requests for transferred, before the French authorities landed - if these countries are facing exces- asylum she submitted. refused to take them. sive numbers of requests. Several countries, Initially, the Kosovar woman submitted a At this point the case landed in the lap including France, have rejected this reform, request to the Swedish Embassy in Skopje, of the European judges: Sweden requested saying that Dublin is already working well. FYROM, for a residence permit in Sweden information on the consequences of with- , Greece, Italy, the Nether- for herself and her children. The request drawing a request for asylum, and the court lands and the United Kingdom inter- was refused, since the Swedish authorities said that the Dublin II Regulation ceases to vened in this case. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 4417 Friday 4 May 2012 

Cyber security As momentum for action builds, EU’s role remains unclear

By Brian Beary in Washington crime centre based at Europol’s headquarters security, the US, still has not decided what in The Hague. Indeed, Hohlmeier said that the government’s role should be in this “The EU does not have any competence Parliament was likely to push for the centre domain, Jane Holl Lute, deputy secretary on national security - and it shouldn’t have,” to be given greater resources than the annual at the Department of Homeland Security Home Affairs Commissioner Cecilia Malm- budget of €3.6 million and staff of 50 experts (DHS), told the conference. However, ström told a conference on cyber security that the Commission has proposed. The she said that “the status quo is not accept- in Washington DC, on 2 May. But, under- centre is scheduled to become operational able” and that the US government’s ulti- scoring how the division of labour in this in January 2013. mate position would likely be “in the field is still being carved out, Malmström German Interior Minister Hans-Peter middle” of the two extreme positions, added that “while NATO is doing a lot of Friedrich said, in a keynote address, that the namely that government has no role at work,” the EU could contribute to that by EU should “have a network of single points all, and that the cyber world is a warzone. building up knowledge and networks. She of contact in every member state” to enable Highlighting the growing transatlantic announced that she, Digital Agenda Com- daily communication on cyber threats. cooperation on cyber security, Holl Lute missioner Neelie Kroes and High Represen- “Europol could be one contact point in admitted “we have different views” on tative Catherine Ashton were formulating this process” because “it is a very important information-sharing and privacy and that an EU strategy that they would unveil by the player,” he said. The EU, in addition, “could this would likely be the subject of future end of 2012, which should address the key prepare our discussions at the G8 or United debate. At the US State Department, emerging questions, notably the role govern- Nations”. Several speakers noted that Russia Thomas Dukes, senior cyber policy advi- ment should play in cyber security. and China were behind an initiative within sor, noted that “apart from data privacy, Two MEPs attending the Centre for Stra- the UN to regulate not merely cyber secu- we are almost in complete lockstep on tegic and International Studies seminar told rity but also content on the internet and they cyber security” with the EU. Dukes said Europolitics that they would like the EU to urged the EU and US to come together in there had been an “exponential growth in take on a broader role than that outlined by opposing this. From the Estonian Defence interest in talking about cyber security” Commissioner Malmström in her presenta- Ministry, Undersecretary Jonatan Vseviov both in the EU, the US and at the OSCE, tion, which focused mostly on cyber crimes, said that “NATO has done a lot” on cyber Council of Europe and Organisation of such as misuse of domain names, child security, having already developed a cyber American States. Dukes welcomed the abuse networks and credit card fraud. Ivailo defence policy and established a cyber growing number of countries which have Kalfin (S&D, Bulgaria) said he had called defence centre based in Estonia. Vseviov chosen to accede to the 2001 Council of for the EU to have its own cyber security admitted that EU-NATO cooperation on Europe Convention on Cybercrime (the coordinator but that the European Com- cyber security would probably create dif- Budapest Convention). The US ratified mission and many MEPs were opposing ficulties in the future, as would divergent the Budapest Convention in 2007, he this. (EPP, Germany), concepts about privacy. noted. The EU and US “can raise the Parliament’s rapporteur on cyber crime, baseline” internationally so that “there said she supported Malmström’s proposal of Data privacy differences are no safe havens” on the internet for 28 March 2012 to create a European cyber The EU’s closest collaborator on cyber “bad actors,” he said. n

Industry Producer price index up

Eurostat data capital goods 0.1%, while durable con- in the energy sector gained 8.5% and sumer goods remained stable. 8.6%, respectively. Non-durable con- In March 2012, compared with Feb- The highest increases in the total index sumer goods rose by 2.8% in the euro- ruary 2012, the industrial producer were recorded in Greece and the United zone and by 3.1% in the EU27. Dura- price index rose by 0.5% in the euro- Kingdom (both +1.2%), Lithuania (+1.1%) ble consumer goods increased by 2.3% zone and by 0.6% in the EU27. In and Cyprus (+1%). The only decreases and 2.2%, respectively. Capital goods February, prices increased by 0.6% and were recorded in Sweden (-0.5%), Hun- gained 1.1% in the eurozone and 1.2% 0.9%, respectively, Eurostat reported, gary and Austria (both -0.1%). in the EU27. Intermediate goods rose on 3 May. Prices in total industry On an annual basis, March 2012, by 0.9% and 1.2%, respectively. excluding the energy sector increased compared with March 2011, industrial The largest increases in the total index by 0.2% in both the eurozone and the producer prices gained 3.3% in the were observed in Latvia (+10%), Cyprus EU27. Prices in the energy sector rose eurozone and 3.8% in the EU27. Prices (+8.8%) and Hungary (+7.4%), and the by 1.4% and 1.8%, respectively. In both in total industry excluding the energy smallest in (+0.5%), Slovenia (+0.6%) zones, intermediate goods gained 0.3%, sector increased by 1.5% in the euro- and Austria (+1.6%). The only decrease was non-durable consumer goods 0.2% and zone and by 1.8% in the EU27. Prices recorded in Sweden (-0.5%). n

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Competition Court upholds cartel fine imposed on Legris and Comap

By Sophie Mosca In its 2006 cartel decision, the EU execu- conduct on the market. The court held that tive identified 30 companies belonging to this presumption implies that Legris must fur- Legris Industries failed to present convinc- 11 groups – Aalberts, IMI, Delta, Advanced nish the evidence necessary to reverse it, and ing arguments to the European judges hear- Fluid Connections, Legris, Frabo, Muel- since it cannot do so, it must be held jointly ing an appeal regarding its participation in ler, Tomkins, Flowflex, Viegener and Sanha and severally liable for Comap’s conduct and the copper fittings cartel from 1988 to 2004 Kaimer – involved in a cartel in the copper for payment of the €18.56 million of the total (Cases C-289/11P and C-290/11P). fittings sector and imposed fines on the par- fine imposed on its subsidiary. Following on from the EU General Court, ticipants. The General Court annulled the fines in March 2011 (see Europolitics 4169), the The court rejected the appellants’ argu- imposed on Aalberts, Aquatis and Simplex Court of Justice also rejected, on 3 May, the ments aimed at requesting it to examine the and reduced Kaimer’s fine from €7.15 milion appeal lodged by Legris and its subsidiary factual circumstances of the cartel and trying to €6.33 million and Tomkins’ from €5 mil- Comap (99.99% owned by Legris) against to establish the impossibility of rebutting the lion to €4.25 million. the Commission’s accusation and the total presumption that the parent company exerts Appeals concerning the same cartel case fine of €46.8 million imposed on the two decisive influence over its subsidiary, such lodged by Aalberts, Kaimer, Viega and Tom- firms in 2006. that the subsidiary does not determine its own kins are still being examined by the court. n

Working time ECJ: Entitlement to allowance from unused paid annual leave

By Sophie Petitjean The court noted first that Directive unable to use that additional entitle- 2003/88/EC applies in principle to all ment because he was prevented from Under EU law, a public servant may sectors of activity, both public and pri- working by sickness. According to the obtain payment of an allowance on vate. It obliges member states to take court, it is for member states to decide retirement if, because of sickness, he the measures necessary to ensure an whether to confer on public servants an has not been able to take all or part annual paid leave of at least four weeks entitlement to further paid leave and of the minimum paid annual leave to whether such entitlement can be trans- which he is entitled. In a ruling in Case formed into an allowance in case of C-337/10, handed down on 3 May, the This entitlement can be sickness (and the conditions for grant- EU Court of Justice nevertheless adds replaced by an allowance ing this entitlement). that this right is limited in time and that only on termination of the The court also strikes down the regu- it is for national courts to determine lation of the Land of Hesse on annual whether it applies to possible additional employment relationship paid leave, which restricts, through a entitlement to paid leave. carry-over period of nine months on Georg Neidel, a fireman with the city expiry of which the entitlement to paid of Frankfurt am Main (Germany) from to all workers and states that this entitle- annual leave lapses, the right of a public 1970, was declared unfit for service on ment can be replaced by an allowance servant who is retiring to cumulate medical grounds in 2007. On retiring only on termination of an employment the allowances in lieu of paid annual in 2009, he applied to his employer relationship (including retirement). leave not taken because he was unfit for payment of €16,821.60 gross for The court therefore concludes that for service. Based on its recent case law 86 days of leave not taken. According a public servant is entitled, on retire- (Judgement C-214/10 of 22 November to his contract, Neidel was entitled to ment, to an allowance in lieu of paid 2011), the court held that any carry- 26 days of annual leave and compen- annual leave not taken because of the over period must ensure that the worker satory leave for public holidays. The fact that he was prevented from work- can have, if need be, rest periods that administrative court in Frankfurt am ing by sickness. may be «staggered, planned in advance Main, before which Neidel brought an The judges nevertheless point out and available in the longer term» and action, referred a number of questions that the directive does not preclude «must be substantially longer than the to the Court of Justice. In particular, it provisions of national law conferring reference period in respect of which it asked whether Directive 2003/88/EC on a public servant an entitlement to is granted». In the proceedings in ques- on working time applies to public ser- further paid leave in addition to the tion, the carry-over period laid down vants and whether the entitlement to entitlement to a minimum paid leave is nine months, that is to say a shorter an allowance covers only the minimum of four weeks. In such a case, national period than the reference period (in annual leave or whether it extends to legislation does not have to provide for this case, one year). n the additional leave for which national payment of an allowance in lieu if a law provides. public servant who is retiring has been www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 4417 Friday 4 May 2012 

Health Commission takes pulse of Community programmes

By Sophie Petitjean specifically, it identifies four key priori- the control and prevention of rare ill- ties: establishing innovative and viable nesses, cross-border health threats, the The EU funded 673 health projects health systems (48% of the budget), rapid development of health technology, between 2003 and 2012, the European improving access to, and the reliability the need to ensure universal access to Commission highlighted at a high-level of, high quality health care for citizens quality health care despite the resource conference, held on 3 May, to celebrate (22%), promoting health and prevent- limitations, and the need to improve the tenth year of EU health programmes. ing illness (21%) and protecting citizens profitable and sustainable health care The conference was also the occasion for from cross-border health threats (9%). systems. the launch of the European journalism The Council, co-legislator on this The Commission also presented for prize for health, and the presentation dossier, held an orientation debate the first time its new health data tool, HEIDI, a comprehensive search tool for on the matter in December 2011, and HEIDI ((Health in Europe: Informa- European health information and data. should adopt a partial general position tion and Data Interface), which pres- “In an economic climate where every on 22 June. For its part, the European ents online information on the state of cent of public spending is under scru- Pariliament is set to hold a first vote in the population’s health, health determi- tiny, and rightly so, we would like to the Committee on the Environment nants, health services and other related demonstrate with real-life examples that (ENVI), on 20 June. subjects1. money spent on health is money well To recall, during a debate, on 2 The European journalism prize for spent,” said the Commissioner John December 2011, several member states health competition was also launched Dalli, in charge of health and consum- expressed their reservations on the name 2. Now in its fourth consecutive year, ers, before the opening of the confer- of the programme. Some of these coun- the competition rewards articles orgin- ence, which brought together some 500 tries also put forward certain minor criti- ally published in the print or electronic political decision makers, health sector cisms, particularly regarding the choice media on one of the following sub- representatives and journalists. of instrument (a regulation), the absence jects: 1. one or several themes from the of measures against health inequal- ‘Europe for patients’ campaign; 2. active ‘Health for growth’ ity, and the way the budget was shared and healthy ageing, on the occasion of Besides sharing best practice, the between the chosen objectives. the European Year of Active Ageing and main goal of the conference was to Solidarity between Generations; and 3. gauge stakeholders’ reactions to the pro- Challenges the theme for the special prize: stopping posed regulation establishing the next At the conference, the Deputy Direc- smoking’. The first prize in the competi- programme, ‘Health for growth’. The tor-General of DG Health and Consum- tion is a cheque for €6,000. n draft text, which was presented by the ers, Martin Seychell, laid out the future Commission in November 2011, sug- challenges that the EU will have to face gests allocating €446 million from the on the issue of health. Specifically, he (1) ec.europa.eu/health/heidi Community budget to actions linked to referred to demographic ageing, limited (2) ec.europa.eu/health-eu/journalist_ health in the period 2014-2020. More economic and professional resources, prize/index_en.htm

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European policy European left places high hopes in François Hollande

By Pierre Lemoine in Rome of the EU budget pact pushed through like other Socialist and Social Demo- by German Chancellor . crat leaders present in Rome, voiced Speaking to an audience of left-of- Monti’s position reflects his interest high expectations of Hollande: “Fran- centre European economists and politi- in obtaining more flexibility from Ger- çois Hollande has called for the renego- cal leaders, gathered for a seminar in many but without rushing things: “In tiation of the budget treaty, not because Rome, on 2 May, Mario Monti, the quiet the debate on the public debt crises,” he he is opposed to budget discipline, but man carrying out unpopular reforms said, “we need on the one hand to put because we need a European commit- in Italy, played the role of the man to pressure on Germany. On the other, we ment on growth. I think that France led whom the EU can turn. should be grateful to Germany because, by Hollande will be a valuable partner Anticipating the victory of the Social- in the early 1990s, binding rules were put for Italy and for Monti”. ist candidate, François Hollande, in the in place, which today can seem archaic Hannes Swoboda, head of the S&D French presidential election, on 6 May, and perverse. Without these rules, how- group in the European Parliament, the Italian Council president declared: ever, Germany would never have agreed added: “We need a comprehensive “What may happen in France could to share its currency and without these solution and a very strong response to become an important factor” of politi- rules, in my opinion, Italy would have a situation that has become extremely cal and economic developments in the remained caught up in vicious circles. serious, with alarming youth unemploy- EU. He added: “I do not need to high- Without the social market economy, ment. We do not want gadgets like those light with pride what we have achieved which we share in Europe despite our announced at the latest EU summit. to date in Italy” (meaning, since he took cultural and economic differences, we With a President Hollande in France, up his duties last November at the head would not have an anti-trust authority with other victories that will strengthen of a government of technocrats that has or rules on deficits. We would have had social democracy in Europe, we can the backing of both the centre-right and inflation.” change European economic gover- the centre-left). Monti then unambigu- Massimo d’Alema, president of the nance.” ously offered his services: “I think that left-leaning Fondazione ItalianiEuropei, Ernst Stetter, secretary-general of the Italy is in a good position to help France former president of the Council of Min- Foundation for European Progressive and Germany strike a new balance if the isters and former Italian foreign minis- Studies, the lead organiser of the Rome question arises” because “we have suc- ter, added nuance to Monti’s proposal. meeting, observed: “What is important ceeded in becoming more present, and I He told Europolitics: “France and Ger- is the existence of a project to put an end hope more convincing, in the European many do not need an intermediary. If to austerity policies. The project can be framework”. the ‘Merkozy bloc’ disappears, Italy will based on the development of instru- The former EU commissioner, first obviously have a role to play. This may ments that have been proposed, such in charge of the single market, followed help the European institutions regain as the financial transaction tax and the by competition, was alluding to the new the initiative. Germany and France will capital increase for the European Invest- policies that François Hollande hopes to always have a special role, but it must ment Bank”. n put in place to release the stranglehold be at the service of Europe.” D’Alema,

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Climate change South Korea to start emissions trading scheme in 2015

By Sébastien Falletti in Seoul The rules will only affect businesses that Ladron. “This is already being done with release 125,000 tonnes or more of green- with which the Commission’s The adoption, on 3 May, by South Korea house gases per year. Individual plants services have regular contacts, and have of a law establishing a cap and trade system that emit 25,000 tonnes of global warm- created work groups to ensure the neces- for emissions is good news for the EU. ing gases, such as carbon dioxide, will also sary coordination to create a link between Indeed, the Union was the first to create come under the new restrictions. the two systems,” he added. n this system and has been defending and The ministry said this new proposal promoting it on the international scene aimed at preventing the risk of “green for several years. Climate Action Commis- protectionism” from advanced countries. sioner Connie Hedegaard expressed her South Korea is afraid that the EU would Background satisfaction as soon as the result of the vote impose retaliatory measures on imports Since South Korea is not an Annex 1 was announced. from countries that are not making enough country of the Kyoto Protocol, it has

South Korea is the first Asian country effort to curb their CO2 emissions. no obligation to put forward a target to emulate the EU’s Emission Trading President Lee has put ‘green’ growth and for CO2 emission cuts. However, Scheme (ETS). On 3 May, the National the fight against global warming at the top Seoul has still pledged to reduce its Assembly adopted a bill that should allow of his agenda, although critics point out emissions by 30% in 2020, ahead the country to reach its objective - a 30% that only little tangible progress has been of the Copenhagen conference, in reduction of its greenhouse gas emissions achieved since he took office in 2008. 2010. The country sees the climate by 2020. The cap and trade mechanism change issue as an opportunity to will enter into force in 2015 and will cover European satisfaction assert its role on the global scene by 60% of South Korea’s emissions. ‘’Welcome South Korea, the world’s becoming “a bridge between devel- “Seoul wants to establish rules that con- 12th largest economy, to the growing oping and developed countries”. The form to similar arrangements in the Euro- ETS family,” said Hedegaard. The ETS pledge announced by the president pean Union, Australia and New Zealand, is expanding in the Asia-Pacific region. amounts to a 4% reduction of green- while at the same time reflecting condi- South Korea is a “natural EU cooperation house gas emissions compared tions and need of local businesses that partner,” she tweeted, on 3 May. to 2005. South Korea emitted 594 may be hard pressed to meet cuts,” said The EU has defended the ETS on the million tonnes of carbon dioxide in the South Korean Ministry of Strategy and international scene and hopes to create a 2005, ranking ninth among member Finance. true world market for carbon by linking the nations of the OECD. The goal is far The government of President Lee ETS and the equivalent systems adopted from that set by the EU, which takes Myung-bak had to strike a delicate bal- by third countries. “All the countries that 1990 as a reference year, but it was ance between his pledge to combat global are headed in this direction are potential hailed by supporters of a global cli- warming and the pressure from the indus- candidates to link the systems, and the mate pact since it could provide a try, which is afraid the system will curtail EU is prepared to cooperate with them,” new impetus to the global talks. its competitiveness on the world market. said Commission spokesman Isaac Valero

EU/Ukraine Euro 2012 faces EU boycott

By Lénaïc Vaudin d’Imécourt and members of the royal family could also “at this point,” including the Yalta summit, boycott the event if Tymoshenko’s detention scheduled for 11-12 May. The presidents of A growing number of countries have already situation did not improve. German Foreign Germany, Austria, Italy, the Czech Repub- decided to boycott the 2012 European Foot- Minister Guido Westerwelle has threatened lic, Slovenia and Estonia have also already ball Championships, which Ukraine will co- to block the final approval of the EU-Ukraine confirmed that they would not attend the host with Poland between 8 June and 1 July, association agreement if the ex-premier did Central European summit. if no rapid progress is made on the rule of law not receive adequate health care. German Tymoshenko was sentenced to seven in the former Communist state. doctors have diagnosed her with serious back years in jail over allegations that she had On 2 May, Austrian Foreign Minister problems which, according to them, cannot exceeded her powers as prime minister Michael Spindelegger said his government be treated in Ukraine. by signing a gas deal with Russia in 2009. decided to boycott all Euro 2012 football Meanwhile, the European Commission According to the Ukrainian ombudsman’s matches held in Ukraine as a sign of “our announced, on 30 April, that President José office, she was subjected to physical vio- solidarity” with jailed ex-Premier Yulia Manuel Barroso and Enlargement Com- lence during a forced transfer from her Tymoshenko. The same day, Dutch Foreign missioner Stefan Füle had “no intention” prison cell to a hospital, on 20 April, raising Minister Uri Rosenthal said his government of participating in any events in Ukraine both EU and member state concerns. n

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EU/China Debt crisis: Li backs EU

By Marie-Martine Buckens and and the Commissioner for Trade, Karel larations on EU-China urbanisation Lénaïc Vaudin d’Imécourt De Gucht. The discussions focused on partnership and on energy security, and preparations for the G20, which will be a joint statement for enhanced coopera- Li Keqiang expressed his “full confi- held in Mexico in June. Lastly, the two tion on electricity markets between the dence and support for the euro area’s men made the most of the high-level European Commission and the State ability to cope with the sovereign debt meeting on energy, which was being Electricity Regulatory Commission of crisis,” the President of the European held on the same day to sign joint dec- China. n Council, Herman Van Rompuy, said in a statement following his meeting with the Chinese vice-prime minister, on 3 iang. “We deeply regret that our EU lead- May in Brussels. The two men also dis- Press freedom? ers in some sense of misplaced courtesy cussed “pressing international issues, The European Commission is “one of the or diplomatic nicety feel they should not such as the situation in Syria, the Dem- most open and transparent bodies in the respect European principles and meet ocratic People’s Republic of Korea and world,” EU spokeswoman Pia Ahrenkilde the press,” said Ann Cahill, president of Iran”. The issue of human rights was also Hansen said on the occasion of World the International Press Association (IPA) discussed, being one that “remains key Press Freedom Day, on 3 May. “We are as she formally requested “that Presi- and an essential part of our relations,” practicing what we preach on media free- dent Barroso holds a press briefing after according to Van Rompuy. ”I welcome dom,” she added at the daily briefing held his meeting”. In November 2010, the EU the decision to hold the next round of by the Commission. However, besides a institutions tried to prevent journalists the EU-China Human Rights Dialogue few photo opportunities, members of the critical of the Chinese government from at the end of May,” he added (see box). press were not to be allowed to ask any entering a press conference, until other Li, who is set to replace Wen Jiabao questions after a high-level meeting the EU journalists complained. The press as prime minister in 2013, also spoke same day between President José Manuel conference was finally cancelled by the with the President of the European Barroso and Chinese Vice-Premier Li Keq- Chinese authorities. Commission, José Manuel Barroso,

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EU/Switzerland Free movement: Berne tries to calm Union

By Tanguy Verhoosel Ammann tried to explain Berne’s motiva- with managing the agreement on free tions to his European partners, saying that movement of persons. Swiss Economy Minister Johann Sch- its decision, dictated solely by domestic The Union still hopes to convince neider-Ammann did his best to defuse policy considerations, «should be taken Switzerland to back down. It is likely to the situation on free movement of per- positively, not negatively»: it is meant to be disappointed: «Switzerland will not sons, on 2 May in Brussels, where he reassure the Swiss population and to pull reconsider its decision,» reiterated Sch- met several EU commissioners and heard the rug out from under those demanding neider-Ammann. expressions of «comprehension» at best. a thorough renegotiation or even the ter- This was not the only controversial issue This visit, insisted the Swiss minister, was mination of the agreement on free move- the Swiss minister discussed with his EU «scheduled» and not put together at the ment of persons. The minister explained partners. He also provided certain clarifica- last minute due to the waves made by the this situation by telephone to Poland’s tions on the ideas the Federal Council is Swiss government’s 18 April decision to Vice-Premier Waldemar Pawlak, who exploring in its effort to work out a solution limit temporarily the number of residence expressed «comprehension,» observed to the institutional problems that compli- permits issued to nationals of eight Central the Swiss minister. He then discussed cate relations between Switzerland and the and Eastern European countries. It did not it in person with the Commissioner for EU, already considered unambitious by take place in a «crisis atmosphere». Employment, Social Affairs and Inclu- some in Brussels. He nevertheless recognised that the sion, László Andor. Schneider-Ammann also debated Swit- scope and suddenness of reactions in the «The meeting was positive,» according zerland’s new regional policy with Com- EU took Berne by surprise. Switzerland to Schnieder-Ammann, who nevertheless petition Commissioner Joaquin Almunia. was astonished that EU foreign policy chief acknowledged that Berne and the Com- Certain of its tax measures spark concerns Catherine Ashton immediately described mission still have «different opinions» in Brussels. This was not a matter of «nego- the Swiss measures as illegal (which Berne on the subject and that the Europeans tiating» but simply of «exchanging views,» disputes) and did not sound the alert earlier, plan to place it on the agenda of the next explained the Swiss minister, who added since the Swiss decision was foreseeable. annual meeting, on 27 June, of the EU- that an expert group would be set up to In these circumstances, Schneider- Switzerland Joint Committee charged examine the different concerns. n In Brief Waste sector merger authorised Green light for acquisition of Kellogg cleared to buy Pringles On 3 May, the European Commission Pipelife by Wienerberger Snack Business granted clearance, under the On 3 May, the European Commission On 3 May, the European Commission simplified merger procedure, to the granted clearance, under the simplified granted clearance, under the simplified proposed acquisition of joint control merger review procedure, to the merger review procedure, to the by Scholz Austria GmbH and Asamer dissolution of the joint venture Pipelife acquisition of the Pringles Snack Familienholding GmbH of RPE International GmbH, which is specialised Business, a subsidiary of Procter & Recyclingpark Eisenerz that is operating in the manufacturing and distribution of Gamble, by Kellogg, both of the US. a mechanical factory for the treatment of sewage pipes. Wienerberger AG, which Kellogg is a producer of ready-to-eat various types of waste (a recycling park). already holds 50% of the shares in the cereal and convenience foods, such as Currently, RPE is exclusively controlled joint venture, will acquire the remaining cookies, crackers, toaster pastries, cereal by Asamer. Scholz Austria, controlled 50% shares from the Solvay Group. bars, fruit-flavoured snacks, frozen waffles by the German group Scholz and the Wienerberger AG is a multinational and veggie foods. In the EEA, Kellogg Austrian group Voestalpine, is specialised company based in Austria and is active sells ready-to-eat cereal, cereal bars, in the recycling and trading of recyclable in the production of construction toaster pastries and fruit-flavoured snacks. products, such as steel, metal scrap, materials, in particular of clay bricks and Pringles’ Snack Business produces and industrial waste and other materials. tiles, as well as sewage pipes made from sells Pringles potato crisps. Asamer is active in the sector of gravel, stoneware. stone, concrete and ciment production, in recycling, innovation and tourism.

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In Brief

Authorisation of GM soybean EU denounces killing of EU slaps sanctions on Guinea- product not endorsed environmentalist in Cambodia Bissau coup leaders A draft decision authorising genetically The EU denounced the increasing level Six individuals who “threaten the peace, modified (GM) soybean product MON of violence in Cambodia surrounding security and stability of Guinea-Bissau” 87701 x MON 89788 was not endorsed, illegal logging activities, following the were targeted by an asset freeze and a on 2 May, by the member states during death of a prominent environmentalist, travel ban to enter the EU, on 3 May. a meeting of the Standing Committee at the end of April. «The EU Delegation The Council of the EU decided to on the Food Chain and Animal Health. calls for a speedy, robust and independent approve said restricitive measures “given The proposal will now be examined investigation of this case, which casts a the seriousness of the current situation,” by the GM appeal committee as set shadow over the government’s and civil an official statement said. “Today’s up by Regulation (EC) 182/2011. The society’s efforts to curtail illegal logging in measures target the leaders of the recent proposal for the authorisation concerns the country,» said a statement, released coup d’état in Guinea-Bissau,” said High food and feed uses and not cultivation. on 1 May, by the EU office in Phnom Representative Catherine Ashton. “The The Commission tabled the proposal Penh. Chut Wutty, an experienced EU strongly condemns it and demands following an application submitted by environmental activist was shot dead as that constitutional order be immediately Monsanto Europe S.A. and a favourable well as a policeman, in Rattana, in the restored,” she added. The sanctions scientific assessment from the European remote region of Koh Kong. Preliminary will enter into force as soon as they are Food Safety Authority (EFSA), which police reports said that the two men published in the EU’s Official Journal, on addressed all safety concerns surrounding fired at each other simultaneously but 4 May. this GM soybean. EFSA concluded in subsequent reports indicated that the its opinion that this soybean is as safe as policeman had shot first at Chut Wutty, its non-genetically modified counterpart who has been fighting against illegal with respect to potential effects on logging in the region. The EU denounces both human and animal health and the growing level of violence aimed at the environment. Further information intimidating members of civil society is available at ec.europa.eu/food/food/ who are fighting against illegal logging biotechnology/index_en.htm in this country rich in precious tropical woods. In a statement approved by all the DG INFSO changes name ambassadors of the EU member states in On 2 May, the European Commission Phnom Penh, the European bloc urged decided to change the name of its the governement to do more to combat Directorate-General Information Society violence. and Media to Directorate-General for Communications Networks, Content and Technology, with the acronym DG CONNECT. This change of name will take effect as of 1 July.

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EU Agenda

Friday 4 May 30 April 4 May, Delhi, Chennai Israeli internal political situation and (Madras), India developments in the wider region with A delegation of 15 MEPs is visiting Delhi academia and foreign relations experts and European and Chennai (Madras), India. The head will hold the interparliamentary meeting of the delegation is Graham Watson with members of the Knesset on EU- Parliament (ALDE, UK). During the visit MEPs will relations and rights of women. DELEGATIONS meet with government ministers and other 18th EU-New Zealand parliamentarians, representatives of civil Singapore Interparliamentary interparliamentary meeting society and think tanks. The delegation Meeting 30 April - 4 May, Auckland, Wellington will be discussing in particular the state of 1 to 4 May, Singapore, Singapore & Christchurch, New Zealand play of EU-India relations, including the Seven members of the EP Delegation for A delegation of six MEPs is visiting ongoing negotiations on the Free Trade relations with the countries of Southeast Auckland, Wellington & Christchurch, Agreement and cooperation on security and Asia and the Association of Southeast Asian New Zealand for the 18th EU-New renewable energy. Nations (ASEAN) visit Singapore. The Zealand interparliamentary meeting. The delegation is lead by MEP head of the delegation is Mara Bizzotto EP Interparliamentary meeting for (EPP, DE) and includes Robert Goebbels (EFD, IT), and the members are Richard the Mashreq countries (S&D, LU), Astrid Lulling (EPP, LU), Ashworth (ECR, UK), Giles Chichester 30 April – 4 May, Cairo, Egypt Gerald Häfner (Greens/EFA, DE), Teresa (ECR, UK), Michael Cramer (GREENS/ A working group of six MEPs from EP Riera Madurell (S&D, ES) EFA, DE), Alajos Meszaros (EPP, SK) and delegation for relations with the Mashreq (EPP, DE) and Philip Clayes (NI, BE). The Hannu Takkula (ALDE, FI). Meetings countries is visiting Cairo, Egypt for delegation will meet with political leaders with ministers, Maori business leaders and interparliamentary meeting. The head and business representatives and discuss students, will be on the agenda. MEPs of the delegation is Mario David (EPP, especially the current negotiations of the will also visit earthquake damage zones in PT), and the other members are Said El free trade agreement between the EU and Christchurch and meet local authorities on Khadraoui (S&D, BE), Oana Antonescu Singapore. The trade agreement will need the reconstruction and rehabilitation of the (EPP, RO), Sajjad Karim (ECR, UK), to be ratified by EP to enter into force. city. Frida Brepoels (Greens/EFA, BE) and Marietje Schaake (ALDE, NL) Meetings Subcommittee on Human Rights 4th EP-United Arab Emirates with Egyptian politicians, religion delegation to Sana’a Interparliamentary meeting representatives and youth organisations are 1 - 4 May, Sana’a, Yemen 29 April - 4 May Dubai, Abu Dhabi, on the agenda. MEPs will also have a round A three-member delegation from United Arab Emirates table with an EU project on digital freedom Subcommittee on Human Rights will visit A delegation of seven MEPs is visiting and with an alliance for Arab Women Sana’a, Yemen from. The delegation is led Dubai and Abu Dhabi for the 4th EP- and Sabra Bano, Gender Concernes by (Greens/EFA, DE) United Arab Emirates interparliamentary International. and other members are Richard Howitt meeting. The head of the delegation is (S&D, UK) and Cristian Preda (EPP, RO). (EPP, DE), and the 38th EP-Israel Interparliamentary MEPs will meet ministers dealing with members are Antonio Cancian (EPP, IT), Meeting issues regarding National Reconciliation Anna Maria Corazza Bildt (EPP, SE), Paul 30 April - 4 May, Jerusalem, Tel-Aviv, and Transitional Justice law, representatives Rubig (EPP, AT), Joseph Cuschieri (S&D, Israel of former opposition parties and Human MT), (S&D, DE) and Six-member working group of the EP rights NGOs. They will also meet Ms. (ALDE, DE). Meetings Delegation for relations with Israel will Tawakkol Karman, Nobel Peace Prize with ministers, representatives of commerce represent the House at the 38th EP- laureate 2011. During the mission, MEPs and industry and women on the board of Israel Interparliamentary Meeting. The will also visit EU-UNICEF project on the Dubai Chamber of commerce will be delegation is lead by Bastiaan Belder (EFD, juvenile death penalty in Sana’a prison. on the agenda. MEPs will also visit IRENA NL), and includes Sari Essayah (EPP, FI), (International Renewable Energy Agency), (Greens/ EFA, DE), 2nd Parliamentary Cooperation Ivo Vajgl (ALDE, SI), Hynek Fajmon Committee meeting Delegation visit for relations with (ECR, CZ) and Corina Cretu (S&D, RO). 3-5 May Dushanbe, Tajikistan India The delegation will discuss the A delegation of nine MEPs is visiting

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Dushanbe, Tajikistan for the 2nd nViviane Reding in Lisbon: meets Parliamentary Cooperation Committee with Assuncao Esteves, President of the meeting from. The head of the delegation Portuguese Parliament; meets with Pedro General Court is Paolo Bartolozzi (EPP, IT), and the Passos Coelho, Prime Minister of Portugal; 09:30 members are Nicole Kiil-Nielsen (Greens/ meets with Paula Teixeira Da Cruz, nJudgment T-529/09 EFA, FR), Alfreds Rubiks (GUE/NGL, Portuguese Justice Minister; meets with In ‘t Veld v Council LV), (EPP, IT), Niccolo Portuguese Minister of European Affairs, Fifth Chamber Rinaldi (ALDE, IT), Katarina Nevedalova Paulo Portas; addresses the Committee on (S&D, SL), Carmen Romero Lopez (S&D, Constitutional Affairs, Rights, Freedoms ES), Inés Ayala Sender (S&D, ES) and and Guarantees and the European Affairs Marc Tarabella (S&D, BE). This meeting Committee of the Portuguese Parliament; Economic and is the 2nd Parliamentary Cooperation delivers a speech at the Universidade Committee between the EU and the Lusíada de Lisboa Social Committee Republic of Tajikistan; the first one took nJoaquín Almunia gives the opening 20th meeting of the European place last year in Brussels. The Partnership speech at the Public Hearing on the Green Economic Area Consultative and Cooperation Agreement between the paper on payments (Brussels) Committee (EEA-CC) EU and Tajikistan entered into force on 1 nNeelie Kroes in Berlin: delivers speech 3-4 April, Akureyri, Iceland January 2010. to re:publica event; meets Klaus Wowereit, The Consultative Committee aims at Mayor of Berlin adopting two resolutions: on the EEA MEP’s to observe parliamentary nJanez Potocnik receives Pavan Sukhdev, Review and on the Entreprise dimension of elections in Armenia CEO GIST (Green Initiatives for a Smart the Internal Market. 3-7 May, Yerevan Tomorrow) Advisory and study leader of A delegation of 7 MEPs, chaired by TEEB (The Economics of Ecosystems and Public Hearing Krzysztof Lisek (EPP, PL) is heading to Biodiversity The European Technology Platforms Armenia to participate in the work of nOlli Rehn meets with Andreas Schmitz (ETP’s) and Industrial change International Election Observation Mission , President of the Association of German ETPs are clusters grouping all the relevant by observing parliamentary elections Banks (Brussels) stakeholders of a specific either sector or in Armenia. The other members of the nMichel Barnier receives the Public field of technology: ETP have proved to delegation are Jan Brezina (EPP, CZ), Private Partnership Club (PPP) be effective in defining their respective Marian-Jean Marinescu (EPP, RO), Miguel nMichel Barnier makes a speech as part of Strategic Research Agendas, containing Angel Martínez (S&D, ES), Norica a meeting with industry leaders, organized the priorities for research and innovation. Nicolai (ALDE, RO), Judith Sargentini by EFAMA (European Fund and Asset There are presently up to 36 ETP active in (Greens/EFA, NL) Milan Cabrnoch, (ECR, Management Association) (Brussels) 5 areas: Energy, ICT, Bio-based economy, CZ) On 6 May they will split into three nMichel Barnier delivers the closing Transport and Production and processes. teams and observe elections in Yerevan and speech at the conference on Mobile Venue: EESC, VMA 3, 09:30 – 13:00 two other cities in the country on 7 May Payments, organized by DG MARKT there will be a press conference on the (Charlemagne, Brussels) 09:00-17:00 outcome of the election where the MEPs nMichel Barnier receives Andreas Schmitz, Cross-border Latvian/Lithuanian CAP will deliver their statements. President of German Banks conference: Implications of CAP inequality nJohn Dalli in : attends – consequences and opportunities, Hrs the Colorectal Cancer Patient Conference siège 2012, holds press conference with Leos Council Heger, Health Minister and meets Roman 09:30-13:00 Onderka, Mayor of Brno CCMI/099 - Hearing and 2nd meeting of Ministers nMáire Geoghegan-Quinn meets with the of the Study Group on The European Political and Security Committee Federation of German Industries (BDI/ Technology Platforms (ETP’s) and (PSC) BDA) (Brussels) industrial change, VM3 Brussels nMáire Geoghegan-Quinn meets with the European Broadcasting Union (EBU) 10:00-13:00 COREPER I (Brussels) SOC/449 The contribution of migrant Brussels nKristalina Georgieva receives a CEO entrepreneurs to the EU economy - 1st delegation from the European Satellite study group meeting, JDE61 Operator’s Association nGünther Oettinger in Stuttgart: delivers a 10:00-13:00 European speech at the European Day with Minister Extraordinary meeting of the TEN section for European affairs of Baden-Württemberg bureau - 3n4/5/2012, Paris (FR Paris) Commission Peter Friedrich Travel and visits www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 4417 Friday 4 May 2012 17

of Mayors and a senior representative •Andrea Renda, Senior Research Fellow, from Lampiris, the 100% green energy CEPS provider. Committee •Ilaria Rosso, Co-founder Electro Power Venue: European Parliament, Brussels, of the Regions Systems 12:15h – 14:45 •Jim Wales, Founder of Wikipedia Registration: www.epia.org 95th Plenary session Registration: www.seeuthere.com/2012- Contact: Scarlett Varga at s.varga@epia. 3-4 May, Brussels ErnstYoungeventonGovernmentInnovation org Venue: European Parliament, JAN 2Q2 Venue: Bozar Fifth World Forum on Energy Conference Regulation (WFERV) Saturday 5 May EU in Crisis - analysis, resistance 13-16 May, Quebec City, Canada and alternatives to corporate More than 1,000 participants from a Europe hundred countries. Keynote speakers European 5-6 May, Brussels from the World Bank, the International Corporate Europe Observatory, the Tran- Energy Agency, the World Energy Parliament snational Institute, civil society activists Council, International Federation Delegations and trade unionists from across Europe of Industrial Energy Consumers, 2nd Parliamentary Cooperation gather for a two-day conference to discuss International Gas Union, etc. Committee meeting an alternative way forward for Europe. Contact: [email protected]. 3-5 May Dushanbe, Tajikistan Speakers from across the European www.corporateeurope.org/sites/default/ See Friday. Conference files/Detailed_programme_5.pdf Implementing the EU Energy Inscrirewww.corporateeurope.org/EU-in- MEP’s to observe parliamentary Roadmap 2050: at what cost and at crisis-conf elections in Armenia Contact: Helen Burley: helen@corpora- what speed? 3-7 May, Yerevan teeurope.org or tel: 0044 7703 731923 14 May, Brussels See Friday. Organiser:EESC http://www.eesc.europa.eu/?i=portal. 38th EU-Iceland Joint Parliamentary Conference en.events-and-activities-energy-roadmap- Committee meeting Energy Transition by 2050: A 2050 2 – 5 May, Akureyri, Iceland multifaceted Challenge for Europe See Friday. 10 May, Brussels Gas Infrastructure Europe Annual The Development Group (D Group) Conference and Egmont – the Royal Institute for 24-25 May, Krakow, Poland Sunday 6 May International Relations are holding an The GIE conference gathers top level international high level energy conference representatives from the European The key issue to be addressed is the EU Institutions, regulatory authorities, European transition towards a low carbon economy international organizations and the natural and the contribution of the energy sector gas industry. More than 300 delegates are Parliament to that goal – with a specific focus on the participating at this event. MEP’s to observe parliamentary EU Energy Roadmap 2050, the necessary Organisers: Gas Infrastructure Europe elections in Armenia EU strategy and policy measures for the www.gie.eu/index.php/annual-conference- 3-7 May, Yerevan decarbonisation of the energy sector, as 2012-home See Friday. well as the successive steps in the agenda. Venue: 09:00-17:00, Residence Palace, Rue Conference de la Loi 155 Politics vs Industry: On the Cliff Contact: [email protected] Edge Europe’s New Energy Challenges” Conferences www.dgroup.de 4-5 June, Malta •Energy challenges: a global perspective and seminars Stakeholders’ debate •Mismatched European policies: energy / Symposium “Solar citizens: People in charge climate reality check of their energy future” - European Growing Beyond Summit •CEO Forum: financing investments, Solar Days Interactive Debate 8 May, Brussels refining strategies 10 May, Brussels Research Symposium on Growing Beyond The debate will be hosted by Amalia •EU Islands: test beds for mainland Summit Presentation of CEPS/Ernst & Sartori, the newly elected chair of the integration? Young study on Government & Innovation. ITRE Committee. The high-level panel www.eurelectric.org Keynote speakers: debate will welcome representatives from •José Manuel Barroso, President of the the European Commission, Covenant European Commission

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DOSSIERS 3790, 09/07/2009 „ EU-US food safety disputes : 3781, 26/06/09 „ La Croatie, 28th EU member state, n°4321, 7/11/2011 „ Aviation: The answers to climate change, 3773, 16/06/09 „ Eastern partenariat summit, n°4271, 26/9/2011 „ Three heads for Europe, 3767, 08/06/09 „ Public procurement, EU and third countries, n°4260, 9/9/2011 „ Atalanta, 3761, 28/05/09 „ Schengen and immigration, n°4227, 23/6/2011 „ Competition policy, 3758, 22/09/2009 „ Economic governance, n°4221, 15/6/2011 „ Third energy liberalisation package, 3748, 07/05/09 „ European citizens’ Initiative: one year to go, n°4191, 29/04/2011 „ Five years after: Whither enlargement?, 3744, 30/04/09 „ Europe’s immigration challenge, n°4180, 11/04/2011 „ 15 years of the Committee of the Regions, 3738, 22/04/09 „ EU/Méditerranean: a new deal, n°4167, 23/03/2011 „ Washingtonians Europeans should know, 3727, 02/04/09 „ The challenge of Energy efficiency, n°4154, 4/3/2011 „ Airbus A400M, 3722, 26/03/09 „ Services of general interest, n°4151, 1/3/2011 „ Solana, 3717, 19/03/09 „ Barroso II, O year on, n°4137, 9/2/2011 „ European Parliament’s priorities in run-up to elections, „ Transatlantic drift, n°4086, 19/11/2010 3709, 09/03/09 „ SMEs expect serious support, n°4063, 14/10/2010 „ Water, a global challenge, 3712, 12/03/09 „ ASEM 8 : what strategy to follow ?, n°4054, 1/10/2010 „ The crisis: A test for Europe, 3699, 23/02/09 „ External Action Service, n°4039, 10/09/2010 „ EU-US – Barack Obama: Chances and challenges, „ Arctic challenges, n°4033, 02/09/2010 3674, 19/01/09 „ EU/Australia cooperation, n°3982, 21/05/2010 „ ESDP mission in Georgia, 3664, 23/12/08 „ Future of Kosovo, n°3972, 05/05/2010 „ Poznan conference, 3649, 2/12/08 „ SESAR, air traffic revolution, n°3971, 04/05/2010 „ Regions and migration, 3645, 26/11/08 „ CDS, 3954, 09/04/2010 „ Enlargement report, 3632, 5/11/08 „ EU-US Private data, 3942, 19/03/2010 „ Pact on immigration and asylum, 3617, 15/10/08 „ EU2020, 3915, 10/02/2010 „ Reform of the Common Fisheries Policy, 3604, 26/09/08 „ SEPA 2010, 3912, 05/02/2010 „ Citizens’ access to law and justice in Europe, 3598, 18/09/08 „ EU/Bosnia, 3897, 15/01/2010 „ Customs Union, 3594, 12/09/08 „ Commissioneers’ Hearings, 3893, 11/01/2010 „ Community Fisheries Control Agency, 3580, 28/07/08 „ Programme of Stockholm, 3878, 10/12/2009 „ Telecoms package, 3579, 25/07/08 „ The Roma challenge, 3857, 10/11/2009 „ Energy liberalisation, 3576, 21/07/08 „ Financial supervision financière : what’s it all about, 3852, 03/11/2009 „ Two top posts, ten contenders, 3846, 26/10/2009 SPECIAL EDITIONS „ EU External Action Service, 3843, 21/10/2009 „ Shedding light on new comitology n°4360, 9/2/2012 „ Egnos, Galileo, GMES : Europe’s space ambitions, 3839, „ 2012 : metamorphosis, n°4333, 4/1/2012 15/10/2009 „ EU rethinks role of social housing, n°4328, 16/12/2011 „ Financing strategic energy technology, 3830, 02/10/2009 „ EU/Med renewables cooperation, n°4312, 24/11/2011 „ EU in Asia, 3820, 19/09/2009 „ Security & defense what next after Libya ?, n°4299, 7/11/2011 „ Europe of research: Broken promises, 3815, 11/09/2009 „ Structural Funds 2014-2020; New rules n°4280, 7/11/2011 „ EU Court of First Instance at 20, 3810, 04/09/2009 „ Poland’s presidency, n°4233, 1/7/2011 „ EU-US financial regulations, 3805, 28/08/2009 „ Mobility of companies, n°4229, 29/6/2011 „ European Parliament 2009-2014: Parliamentary committees, „ Online gambiing, n°4219, 10/6/2011 3801, 27/07/2009 „ EU must address press freedom, n°4172, 30/03/2011 „ Security of energy supply, 3794, 15/07/2009 „ EU affairs training, n°4121, 18/1/2011 „ Commission: Member states preparing to nominate candidates, „ Economic union (Hungarian presidency), n°4111, 4/1/2011

20 Friday 4 May 2012 N° 4417 EUROPOLITICS

Crises Stiglitz tells Europolitics: «Austerity will surely fail»

By Pierre Lemoine in Rome to excessive public spending but to a «huge ment. I say that Europe as a whole is stron- mistake,» which was «to try to save failing ger and larger than other parts of the world Because he is American and a Nobel banks with taxpayers’ money». «However and that it is obviously in the interests of laureate in economics, his discourse – dis- big it may be, no bank is worth such a sacri- the entire world for Europe to return to turbing, iconoclastic and in total opposi- fice by citizens. It’s no surprise that citizens growth. There are different ways it can do tion with European Council conclusions have lost confidence in finance and poli- this. But first it needs an economic strategy in recent months – stands a better chance tics. In both the United States and Europe, and a different involvement by the ECB. of attracting attention. Europeans have to pool Joseph Stiglitz urges their debt, or substan- Europe to reverse the tial parts of the debt, tough austerity mea- and encourage invest- sures being imposed on ment.» it by Germany and the How much time budget pact signed by does Europe have to 25 of the 27 member react? «It has to act states. «There has quickly because in the never been a successful meantime austerity will austerity programme impose enormous costs in any large country,» on the European econ- he said in an inter- omies and make unem- view with Europolitics. ployment worse. One «There is not a single out of two young people example anywhere in is already unemployed the world showing that in countries like Italy. it is possible to cure an I would like to empha-

ailing state by cutting © DR sise that what is going salaries, pensions and “Europe is under threat of a second recession” on now is the destruc- social benefits.» we need a more transparent, more equi- tion of capital, of human capital, the most Reiterating his message in addresses he table and more moral financial system.» important resource. The consequences of is giving in Europe for the moment, par- The solutions? For Stiglitz, «trade sur- delay will be huge and long-lasting.» ticularly at a seminar in Rome, hosted, on pluses in Germany, which represent costs A special message for countries like Italy? 2-3 May, by the Foundation for European for others, should be compensated for by «Rather than focusing on reducing expen- Progressive Studies (FEPS), Initiative for public investments, which are necessarily diture, there should be more focus on rais- Policy Dialogue and Fondazione Ital- more profitable than the apparent costs. ing revenues, because there is more to lose ianieuropei, the former World Bank chief economically by cutting spending than by economist hammered home his point: “Unemployment causes raising tax revenues. This can be done in «Lower growth provokes deficits, and not a progressive way. The redistribution that vice versa. Choosing austerity will only deficits, and not the other results will also stimulate the economy. make deficits worse and will lead to high way round” Because inequality was one of the causes unemployment that will be economically, of the crisis, inequality is one of the reasons socially and politically untenable. This All states should invest in infrastructure the economy remains weak.» approach reminds me of medical practice and education. They can do this without A final question to Stiglitz: Would you in the Middle Ages: when the patient died, increasing deficits, by raising taxes in a encourage the idea of implementing the the conclusion was that the doctor stopped fair manner, in particular by introducing a golden rule in public accounts? «Yes,» the blood-letting too soon. The chance of financial transaction tax.» he answered unhesitatingly. «I would solving the problem only by more blood- His main recommendation? «It is include both the golden rules, taking out letting is close to zero,» he continued. urgent to lay out a growth programme, a investment, and a review of the structure The Nobel Prize winner for economics holistic growth programme. Europe needs of surpluses, of what they would be in a sees the need to work on both over-indebt- to adapt. Austerity by itself will surely fail. situation of full employment. Because it is edness and growth, because «without This growth programme can be made con- unemployment that causes deficits. Defi- growth prospects, Europe is under threat of sistent with the constraints facing countries cits don’t cause unemployment. So if you a second wave of recession». He noted in like Spain and Italy. In this programme, can get unemployment under control, you passing that the crisis in Ireland is not due which has many elements, the key is invest- will have a lower deficit.» n

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