Energy efficiency Lisbon Treaty EU/South Korea Mobilising ICT for low carbon Jan Fischer: Prague will ratify Commission backs initialling economy Page 9 by end of year Page 14 of FTA on 15 October Page 15 EUROPOLITIcs

The European affairs daily Thursday 8 October 2009 N° 3834 37th year

Focus Energy “Euro-compatible” Towards 50 bn euro additional funding for class actions low carbon technologies By Dafydd ab Iago credible technology road maps. That took The French consumer associations CLCV more time.” and UFC Que-Choisir have sent a letter The European Commission adopted, to the European Commission signed by on 7 October, a communication calling Where the BULK IS 33,000 people calling for the possibil- for an additional investment of €50 billion The Commission’s analysis, given in the ity of bringing class actions “as soon in energy technology research over the staff working document, indicates large as possible,” it announces in a press next ten years1. The additional funding - if gaps with other sectors. Research Com- release dated 7 October. The associa- plans are eventually endorsed by member missioner Janez Potocnik noted that a tions have been waiting since 2005 for states - would result in almost tripling cur- relatively low rate of investment in R&D promises by the public authorities to rent annual spending of some €3 billion, to in the renewable energy sector of only 3% introduce the concept of class actions in €8 billion2. Aside from public authorities, compares to higher rates in other sectors, France to materialise. The move is being the Commission’s call for more money is such as IT, at 8%. Research spending is hindered by employers. The associations also directed to business. Researchers, too, also primarily concentrated in just a few express “bitter disappointment” over should coordinate their efforts. The com- member states. “Total private and public learning of the new postponement of the munication is accompanied by an impact investment in SET plan technologies introduction of class actions in France assessment as well as detailed analysis of amount to some €3.2 bn per year. This on the ground of the need for “Euro- Europe’s current spending on research is largely concentrated in a few member compatibility,” according to its statement. into energy technology. states,” said Potocnik. “The bulk of funds In September, State Secretary for Trade will certainly have to come from where Hervé Novelli commented that further Tripling annual energy research the bulk is: member states and private action would depend first on emerging The communication on financing R&D sector,” added Potocnik. from the economic crisis and second into energy technology was promised by the Commissioner Piebalgs adds that some on ensuring that the French proposal is Commission in its November 2007 com- of the technologies favoured by the SET consistent with European projects on the munication on the Strategic Energy Tech- plan are already receiving or will soon drawing board. nology (SET) Plan. This latter document receive financing. He pointed to offshore Although EU law allows “member states sets out the key technologies for which the wind and carbon capture and storage to introduce such a procedure without Commission calls for extra attention. It under the current EU economic recovery awaiting a European go-ahead, France also proposes a series of measures to avoid plan. “We are looking to mobilise new makes it a prior condition,” note the con- duplication of research efforts at national financing. This can be done only if the sumer groups. “So Europe is being used level. The Commission admits it was one stakeholders recognise the tech road maps today as an alibi for the French public year late in issuing its financing plans for are right,” said Piebalgs, justifying the one- authorities’ lack of action,” they add. energy research. “Part of the reason why year delay in adopting today’s communi- The two consumer associations have we are late is the crisis. There was a lot cation. asked the Commission to “remedy this of attention on reactivating growth,” said legal vacuum that is particularly harmful Energy Commissioner Andris Piebalgs. Weakened financing to French and European consumers”. “It was also important to prepare credible Despite Piebalgs and Potocnik stress- financing plans. You can’t do that without ing the urgency (continued on page 8)

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Contents N° 3834 Top Stories

Energy efficiency Lisbon Treaty EU/South Korea Mobilising ICT for low carbon Jan Fischer: Prague will ratify Commission backs initialling economy Page 9 by end of year Page 14 of FTA on 15 October Page 15

Business & competitiveness Energy efficiency: Mobilising Trade policy Car industry/CoR: Automotive crisis ICT for low carbon economy...... 9 EU/South Korea: Commission backs intergroup explores policy options...... 4 Lisbon strategy: CoR stresses initialling of FTA on 15 October...... 15 Gambling: Private gamblers still sustainability...... 10 unhappy over French law...... 4 Transport Council: Ministers to In Brief Competition/IT: Internet Explorer: discuss future transport policy...... 11 Czech energy merger approved...... 16 EU market tests Microsoft proposal...... 5 EU approves third H1N1 vaccine...... 16 Competition: High fine imposed Economic & monetary affairs, Annual reports on TEN-T...... 16 on power transformers cartel...... 6 taxation Approval for aid to WestLB...... 16 Economy: SMEs weathering GDP: EU economy shrinks EU, Med and Gulf meet crisis better than expected...... 6 by 0.2% in Q2...... 12 on renewables...... 16 Competition/Pharmaceuticals: Excessive deficit procedure: Sakharov Prize finalists...... 16 Court points out key role of innovation..... 7 Commission confirms scrutiny Surprise inspections at on nine more countries ...... 13 pharma companies...... 16 Sectoral policies Energy: Towards 50 bn euro additional Institutions EU Agenda...... 17 funding for low carbon technologies...... 1 EU/US: Washington wants to know European arrest warrant: ECJ: who will pick up that phone...... 13 Holland does not discriminate Lisbon Treaty: Jan Fischer: against other Europeans ...... 7 Prague will ratify by end of year...... 14 Aviation safety: Commission to Media: EP maintains debate extend restrictions on carry-on liquids.....8 on press freedom in Italy ...... 15

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Car industry/CoR Automotive crisis intergroup explores policy options

By Sophie Petitjean head of the Automobile Industry Unit at more political, is the intergroup’s third. the Commission’s DG Enterprise and The first two focused on sharing experi- Production figures for 2009 are less Industry, the absence of a European ini- ences and taking the pulse of economic alarming than expected thanks to the tiative to support the sector stems from operators. “I think that the main reason different measures set up to cushion a lack of political will. The situation is for setting up this intergroup was the angst the shock of the crisis in the automotive indeed complex and solidarity becomes of the crisis and the determination to pool sector. It would be a pipedream, how- rarer in times of crisis. “So there is a our experiences,” observed Le Drian. ever, to expect recovery in 2010 since the danger that some countries will take ini- The aim of the intergroup, whose mem- incentive measures are temporary and tiatives and others won’t. The message I bers are 61 local and regional elected cannot be repeated. Against this backdrop, would like to give the states is that the representatives from across the EU, is to the Automotive Crisis Intergroup (ACI) of situation is serious. There is a structural share experiences, put pressure on the the Committee of the Regions met for the problem and a financing problem,” he EU authorities, assess the financial and third time, on 6 October in Brussels. Par- warned. economic instruments put in place and/ ticipants - members of the European Par- or propose other measures and to explore liament, local officials, who are members ECO-TRANSITION the cars of tomorrow. Its work has already of the intergroup, and representatives of The matter of an eco-transition was resulted in the drafting of a resolution on the European Commission, the Swedish brought up by MEP Philippe Lamberts the automotive crisis. EU Presidency and the future Spanish (Greens-EFA). An “offensive approach” With his determination to look beyond EU Presidency – discussed the European is needed in this crisis to encourage the the crisis, Le Drian has also been named response to the structural crisis plaguing switchover to electric vehicles. Hans G. rapporteur for the CoR’s own-initiative the automotive industry. Petterson, deputy director for research and opinion on the crisis in the automotive Three conclusions were drawn from industrial development at Sweden’s Min- sector, which will be reviewed in February. the proceedings by intergroup Chair istry for Enterprise, commented: “Sweden The intergroup will hold its next meet- Jean-Yves Le Drian (president of the Brit- heads the Council at a crucial time, as we ing on 2 December, at which time it is tany Region, France, where 25,000 jobs grapple with an economic and climate expected to review its experience shar- depend on the automotive sector): the conference. The world is changing and ing and the own-initiative opinion and mainly national measures implemented we have to adapt and seize opportunities probably also hold talks with the new to stimulate the sector have defused the to develop an eco-efficient economy”. Commission and the future Spanish EU crisis but overcapacity is still a problem; German MEP Andreas Schwab (EPP) Presidency. the situation of suppliers remains precari- highlighted the legislative initiatives taken As part of Open Days, a working group ous; and the question of an eco-transition by Parliament to protect the industry, will also meet, on 8 October at 9:00 in needs to be explored. namely the Late Payments Directive and Brussels at CoR headquarters, to discuss Parts makers and suppliers account the Business Act, which improves the the ‘Automotive industry in crisis: A for 75% of the value of a car and 50% regulatory environment for SMEs. choice between jobs and environmental of jobs in the sector. For Philippe Jean, This meeting, which was purposely progress?’. n

Gambling Private gamblers still unhappy over French law

By Dafydd ab Iago key restrictions that remain in the draft players is currently 75% for the Française des and do not serve any general interest pur- Jeux (FdJ) and 78% for Pari mutuel urbain As the French National Assembly pose, whether consumer or public order (PMU). Online EU operators usually pay debates, until 9 October, a new draft protection. She pointed to the opening of back 95% to players,” notes Ligne. law, private gaming companies expressed the horserace betting market being limited Other objections concern an article that their concern. According to the Euro- solely to pool betting. The draft law prevents would force EU operators to establish an pean Gaming and Betting Association new operators from offering fixed odds bets IT platform in France. “Such obligation (EGBA), the law still does not conform on horse races to French players. would lead to duplications and create a with EU rules. France, responding to a A second objection brought by the EGBA clear operational and financial disadvantage European Commission infringement pro- is that EU operators would be forced to cap for non-French operators,” notes Ligne. She cedure, is currently revising its law on the their payback ratio to players. The reasoning is adds that the draft law seeks to introduce a sector. It originally notified the European that this would limit problem gaming. Ligne, ‘sports betting right’ that would grant sports Commission, on 5 March, of the new law. however, argues this removes one of the most entities ownership of information currently According to Sigrid Ligne, secretary- competitive advantages of new entrants. “The in the public domain, ie name and results of general of the EGBA, there are several average percentage of stakes paid back to events or fixture lists. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3834 Thursday 8 October 2009 

Competition/IT Internet Explorer: EU market tests Microsoft proposal

By Nathalie Vandystadt number one software firm also marks a result of extensive discussions over a lengthy change. The Dutch commissioner, who is period,” said the commissioner. She added Microsoft has radically changed its tune. not expected to be reappointed for a new that the solution proposed by Microsoft As a result, the European Commission is term, fined Microsoft a record €1.676 billion – which had to improve its original pro- wrapping up a year-long anti- posal after it was found uncon- trust investigation concerning vincing by the Commission Internet Explorer by testing the (see Europolitics 3774) – will US group’s concessions aimed “improve the possibility of giving at opening up its web browser to [users] a completely free and competition. fully informed choice”. For one month starting on 9 Consumers will find detailed October (until 7 November), the explanations in the initial ballot Commission will “market test” screen, she added. If during the proposals made by Microsoft this month of public consul- last July. The EU had accused tation the screen is accepted Microsoft of abuse of dominant by Microsoft’s competitors, it position for its systematic inclu- will be available to consumers sion of Internet Explorer in Win- within two months. Kroes “of

dows, the operating system found © MaxPPP course” expects some to ask for in 90% of the planet’s computers. The solution would be a ‘ballot screen’ more, but “this response goes Firefox (Mozilla), Opera, whose complaint for not abiding by a competition decision of in the right direction,” she insisted, adding triggered the investigation, and the new- March 2004, obliging the company to pro- that she is “very optimistic”. comer to the market, Google’s Chrome, will vide its competitors with the documentation Her satisfaction is shared by Microsoft. have the opportunity to submit their obser- needed to ensure the compatibility of their The group announces in a press release that vations. Competition Commissioner Neelie products with Windows. the Commission’s decision is “a significant Kroes has already commented that “we are step toward closing a decade-long chapter of moving close to a very satisfactory solution”. Free and informed choice competition law concerns in Europe”. The solution would be to present a ‘ballot Microsoft was much more cooperative The firm is also encouraged about the screen’ with the first start-up of Windows, on the Internet Explorer case and will con- interoperability of its products for competi- where users can choose from among the 12 sequently avoid another heavy fine, which tors, the subject of another EU anti-trust browsers used most frequently with Win- under EU rules could have amounted to investigation. The Commission has praised dows. “There are five major browsers on the 10% of its turnover. Microsoft’s July proposals aimed at improv- market today so this leaves room for possible “This is an agreement of confidence. I ing the compatibility of Windows, Windows newcomers,” Kroes told the press. have confidence in Microsoft. There cannot Server, Office, Exchange and SharePoint The European attitude to the world’s be any misunderstanding since this is the with competitors’ products. n

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Competition High fine imposed on power transformers cartel

By Eric van Puyvelde customers but also European electricity factored in the value of sales, the serious consumers, ruled the Commission. At nature of the infringement and the geo- The European Commission fined a the time of the infringement, the par- graphical scope of the cartel. It increased cartel of seven European and Japanese ties’ combined annual sales in Europe the fine for ABB by 50% because this manufacturers of power transformers a were estimated to be worth around €100 company had already been fined in 1998 total of €67,644, on 7 October. The com- million. for its participation in another cartel. panies involved observed an oral agree- The decision to impose the fines is Siemens was given full immunity under ment between 1999 and 2003, whereby “confirmation that zero tolerance is the 2002 leniency notice. The Commis- the Japanese producers agreed not to still on the agenda,” Competition Com- sion also took into account the coopera- sell power transformers in Europe, while missioner Neelie Kroes told the press. tion of Fuji (40% reduction in the fine European producers agreed not to sell in “Cartels add up to millions of euro in under the leniency notice), AREVA and Japan. Market sharing agreements of this additional costs every year and reduce Hitachi (18% reduction in the fine for kind violate the EC Treaty’s prohibition consumer choice,” she explained, adding their cooperation outside the leniency on concerted agreements and restrictive that “the Commission will not hesitate notice). n commercial practices (Article 81). The to raise the fines on repeat offenders Commission also identified the aggra- until they understand that cartels do not vating circumstance that the partici- pay”. pants went to considerable lengths to try The companies concerned are ABB, Fines (in euro): to hide their unlawful practices. AREVA T&D, ALSTOM, Fuji Electrics, ABB (Switzerland): 33,750,000 Power transformers are used by elec- Hitachi and Toshiba. Although Siemens ALSTOM SA and AREVA T&D SA tricity suppliers to change tension levels took part in the cartel, it was not fined (France): 16,500,000 in electricity grids used for the transmis- because it blew the whistle, revealing Fuji Electrics (Japan): 1,734,000 sion and distribution of electric power. the existence of the arrangement to the Hitachi (Japan): 2,460,000 The agreement therefore adversely Commission. Toshiba ( Japan): 13,200,000 affected not only the participants’ direct In setting the fines, the Commission

Economy SMEs weathering crisis better than expected

By Sarah Collins don’t see access to finance […] as a problem says that in the first half of this year, more for viable business propositions. We see the than 70% of SMEs got all or part of the bank Small and medium-sized enterprises main drag on lending as demand. We are loans they wanted, and only about 15% were (SMEs) have not been as badly hit by the not being approached by enough viable rejected. But 51% of smaller companies have credit crunch as reported, accounting and business propositions”. seen their business shrink in the first half of banking groups have said. Robin Jarvis of the However, SME group UEAPME’s Ger- the year and access to finance is expected to Association of Chartered Certified Accoun- hard Huemer said the real problem was that deteriorate slightly. tants (ACCA) told a group of industry experts, banks are now more reluctant to finance The main problem smaller companies on 7 October, that there was “misinforma- riskier projects, such as start-up companies. face is lack of collateral, says Huemer, and tion” in the press about how SMEs have been He says lately loans are being given out sub- the possibility that they will be affected by managing their finances. While consumer ject to much tougher conditions – more EU legislation seeking to rein in banks’ regu- demand has declined, he said that smaller collateral, quality information and higher latory capital. The new Directive on alter- companies were able to rely on their retained risk margins – than they were before the cur- native investment fund managers (AIFM, earnings instead of borrowing, although these rent financial turmoil. “SMEs are not in the COM(2009)207) could also pose a threat to funds are beginning to dry up. same position they were before [the crisis],” venture capital, he said, echoing concerns Eurostat figures show retail sales in the explained Jarvis. “The perception of risk of made by MEPs in the Committee on Eco- EU down 0.3% in August after remaining these small enterprises is much greater than nomic and Monetary Affairs, on 6 October static in July. Economic sentiment is on the it was before.” The EU defines an SME as a (see Europolitics 3833). rise, however, indicating consumers have company with less than 250 employees and The Directive 2000/35/EC on late pay- more confidence in the economy: it was up a turnover of less than €50 million (or a bal- ments was also singled out for concern. A to 82.6 points in September, well above an ance sheet totalling €43 million or lower). recast of the directive is currently winding its historic March low of 60.4. A recent Eurobarometer survey for the way through Parliament and Council after At the joint ACCA and City of London European Commission and the European the Commission, in April, launched a bid to event, on 7 October, Patrik Karlsson, director Central Bank found that SMEs are getting tighten up the timeframe in which invoices of the British Bankers’ Association, said, “We most of their financing needs covered. It should be paid. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3834 Thursday 8 October 2009 

Competition/Pharmaceuticals Court points out key role of innovation

By Anne Fekete account of the price differentials between competition. However, it ruled that the Spain and other member states. They Commission had not adequately reviewed The European Commission is going to were signed by 75 wholesalers established GSK’s request for an exemption. The issue have to re-examine the dual pricing system in Spain representing more than 90% of of whether the general sales conditions agreed by the pharmaceutical group Glax- GSK’s total sales in Spain in 1998 and could give rise to an economic advantage oSmithKline with Spanish wholesalers, entered into force on 9 March 1998. by contributing to innovation, which plays which sets differentiated prices for certain GSK notified the general sales con- a key role in the pharmaceuticals sector, medicines according to whether they are ditions to the Commission in order to was not examined thoroughly enough, sold in Spain or exported to other EU obtain a decision declaring that they were ruled the Court of First Instance. member states. The Court of Justice con- not prohibited by EU competition law or, GSK, on the one hand, and the Com- firmed, on 6 October, a finely nuanced failing that, a decision granting them an mission and two associations representing judgement handed down by the Court exemption as an agreement contributing pharmaceuticals vendors, on the other, of First Instance (CFI) in this case1: the to the promotion of technical progress. brought appeals before the Court of agreements concluded by GSK with the On 8 May 2001, the Commission ruled Justice, relying on different grounds. wholesalers are banned under EU com- that GSK’s sales conditions were illegal The Court of Justice has now concluded petition law but need to be checked as because they infringe the prohibition of that the CFI rightfully ruled that the Com- to whether they are likely to offer an eco- agreements restricting competition and mission failed to take into account all rele- nomic advantage by contributing to inno- because GSK had not proved that the vant elements advanced by GSK concern- vation. The CFI thus rightfully annulled, conditions necessary for an exemption, as ing the loss in efficiency associated with in September 2006, the Commission’s an agreement contributing to technical parallel trade or the gain in efficiency pro- decision prohibiting GSK’s general sales progress, were satisfied. cured by the general sales conditions. n conditions. Asked to rule in an appeal, the CFI The conditions put in place by the phar- upheld, on 27 September 2006, the The judgement is available at maceuticals group aimed to limit parallel Commission’s finding of a violation of www.europolitics.info > Search = 257943 trade in its products by intermediaries on the prohibition of agreements restricting (1) Case C-501/06 P

European arrest warrant ECJ: Holland does not discriminate against other Europeans

By Nathalie Vandystadt decision”. On the other hand, for nationals written into the EC Treaty. Concerning the of other member states, such a refusal is sub- 2004 directive, the Court maintained that The European arrest warrant allows for ject to a dual condition: the accused must the state of execution (the Netherlands) may exceptions, ruled the EU Court of Justice, have lawfully resided in the Netherlands for not, in addition to a condition related to the on 6 October, in a case brought by the a continuous period of five years and be in duration of residence, make application of Netherlands (Case C-123/08). possession of a residence permit of indefi- the ground for non-execution of a European A court in the Netherlands applied for nite duration. In the case in point, Germany arrest warrant subject to additional adminis- preliminary rulings from the EU court in issued a European arrest warrant against a trative requirements, such as possession of a connection with an arrest warrant issued by German national, Dominic Wolzenburg, residence permit of indefinite duration. Germany. It sought to check the compat- who has lived in the Netherlands since 2005. On the compatibility of the Dutch legis- ibility with EU rules of its law implementing Wolzenburg had initially been sentenced, lation that provides for different treatment the 2002 European arrest warrant decision. in March 2003, to a suspended sentence of for Europeans who have not resided for a The Court of Justice held that Dutch legisla- one year and nine months in prison for the period of five years in its territory compared tion does not violate the principle of non-dis- import of marijuana into Germany. This with treatment of Dutch nationals, the court crimination by making a distinction between suspension was subsequently revoked and held that the European arrest warrant is its own nationals and other Europeans. Wolzenburg was sentenced to one year and founded on the “principle of mutual recog- The Netherlands has established dif- nine months’ imprisonment without remis- nition” between member states. This leaves ferent conditions for a refusal to execute a sion on the ground that he had infringed the a certain margin of discretion to member European arrest warrant aimed at impos- conditions of his suspension. states that decide not to execute a European ing a custodial sentence depending on the The Court of Justice ruled in this case on arrest warrant. national origin of the person concerned. If the compatibility of the Dutch law with, on In short, according to the court, the Neth- the accused is a national of the Netherlands, the one hand, a 2004 directive on the right of erlands does not discriminate against other the country may refuse to surrender the citizens of the EU and their family members Europeans by requiring five years of con- person “for the purposes of execution of a to move and reside freely in the EU, and on tinuous residence as a condition for refusal custodial sentence imposed by final judicial the other, the principle of non-discrimination to execute a European arrest warrant. n

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Energy the Commission would have proposed an The Commission notes that the additional (continued from page 1) increase in funding from the EU budget funding of €50 billion over ten years would from 2011 to 2013, under the current cover basic and applied research, demon- of boosting financing, the commitment to financial perspectives in the framework stration and early market take-up (exclud- finding new funds from current spending of the budgetary mid-term review. In the ing deployment activities). Additionally, a arrangements appears to have been weak- final version, however, this is no longer new initiative on energy efficiency for up to ened in the final text. In previous drafts, the case. The Commission will thus only 30 cities - a so-called Smart Cities Initiative be proposing an increase in EU energy - is being proposed by the Commission as funding for research from 2013 to 2020 first ‘enabler’ for the mass market take-up Chosen technologies (Section 4 of the communication). of energy efficiency, renewables and energy The technology road maps, drawn Another point weakened in the final network technologies. up by the Commission together with text is the reference to new institutional On 7 October, the Commission also industry and researchers, identify key arrangements. In the medium and longer launched SETIS, an online Strategic low carbon technologies with “strong” term, the Commission now calls for the Energy Technologies (SET plan) Infor- potential at EU level in a series of areas. EU to develop a more significant, pre- mation System3. This aims to provide These estimates and actions required dictable and stable financing framework latest research results on the status, fore- have been defined by the industry, the for energy transition. Such a financing casts and R&D investment figures for low research community, the Commission framework should enhance the coherence carbon technologies. n and member states up to 2020. The between existing and new actions; increase level of additional funding, over a ten- the effectiveness of policies; gain focus and (1) For a detailed overview of the year period, for these chosen technolo- adequacy to the purpose; enhance trans- communication and reactions see Europolitics gies is: wind (6 bn euro), solar (16 bn parency and avoid overlaps; and facilitate 3830. euro), electricity grids (2 bn euro), bio- the comprehension of actions by stake- (2) R&D in non-nuclear SET plan priority energy (9 bn euro), carbon capture and holders and European citizens. Gone, technologies amounted to €2.38 billion in 2007, storage (CCS, 16 bn euro), sustainable however, is a statement to the effect that roughly balanced across individual technologies. nuclear fission (7 bn euro) and fuel “in place of multiple programmes, a dedi- Adding in research in nuclear SET plan priority cells (5 bn euro). cated Community budgetary framework technologies, the total is around €3.3 billion. for energy transition may be justified”. (3) setis.ec.europa.eu

Aviation safety Commission to extend restrictions on carry-on liquids

By Isabelle Smets some equipment are on the verge of being diate solution will be proposed for liquids operational, but will not, in any case, be able purchased at a third country airport or on The European Commission plans to to be installed in airports by April 2010. It board an aircraft of a non-Community air extend the partial ban on liquids, aero- carrier, whereby they shall be permit- sols and other gels in air passengers’ ted “under certain conditions” from 29 hand luggage. It will inform EU trans- April 2010. This will notably improve port ministers of this during a Transport the situation of transfer passengers in Council meeting, to be held on 9 Octo- the EU, most of whom are today forced ber in Luxembourg. The reason for this to abandon their ‘duty-free’ purchases decision is that the technology enabling before taking a connecting flight in the the detection of liquid explosives - and EU. therefore making it possible to replace The extension of restrictions on liq- the current ban with screening - is not uids will, in any case, require an amend- ready, whereas the threat remains. ment of Community legislation, in Under current legislation, air pas- which the Council of Ministers and the © MaxPPP sengers are only allowed to carry bottles The equiment for detection will not be ready in time European Parliament will be involved. containing a maximum of 100 millili- It remains to be seen how the latter will tres of liquid, in a resealable bag with a max- thus looks as though an extension of the ban react. MEPs have not ceased to criticise the imum capacity of one litre. Normally, the is likely. legislation on liquids since its entry into legislation should no longer be applicable The Commission now anticipates that force, in 2006. As a former MEP, Transport from April 2010. However, in an informa- airports with more than ten million passen- Commissioner Antonio Tajani was himself tion note to be presented to transport minis- gers per year will be equipped with technol- opposed to the measure. n ters, the Commission acknowledges that the ogy enabling the screening of liquids by 29 equipment enabling the detection of liquid April 2012 at the latest. For smaller airports, The information note is available at explosives will not be ready in time. Only this deadline is 29 April 2014. An interme- www.europolitics.info > Search = 257995 www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3834 Thursday 8 October 2009 

Energy efficiency Mobilising ICT for low carbon economy 1 By Dafydd ab Iago A second major element is establish- targets set . The ICT4EE industry forum is ing working partnerships between the ICT also “invited” to report annually to the Com- The European Commission is set to sector and other major energy using sec- mission on progress made towards meeting announce a series of proposals aimed at tors, especially buildings/construction and measures. boosting the contribution of information transport/logistics. Such partnerships should and communication technologies (ICT) to identify where and how ICT can play a Buildings and transport efforts to increase energy efficiency. Despite role in improving efficiency and reducing The ICT sector is “invited” to work the great potential that ICT can bring to emissions in major energy-using sectors. together with the platform set up by the energy efficiency efforts, the Commission This would accelerate the delivery of rel- Directive on the energy performance of has chosen to put forward its proposals in a evant tools to assess and optimise energy buildings so as to ensure that ICT’s impact recommendation. Unlike a directive, a rec- performance in a comparable way. on energy use is maximised and require- ommendation is not legally binding even if Thirdly, the Commission calls on member ments for ICT solutions are specified. ICT the Commission lays down a series of dead- states to encourage both the use of ICT solu- should also ensure that the “appropriate” lines to be met by the ICT industry. No tions for energy efficiency and enhancing tools are provided to contribute to ongoing money is provided for industry now ‘invited’ evidence-based policy making. Procurement methodology development. by the Commission to deliver. practices should stimulate dematerialisation As for the logistics/transport sector, ICT The recommendation, scheduled for of ICT goods and services. is being called upon to work together to adoption on 9 October or early next week, ensure that common principles to integrate follows the Commission’s March 2009 com- Deliverables carbon emissions and energy consumption munication that underlined the untapped In the recommendation, the Commis- information into logistics IT systems are potential for additional energy efficiency sion promises to review progress in 2012 and agreed upon. Accessibility of this informa- improvements from ICT and ICT-enabled publish the results. The Commission will tion should be assured for relevant parties. innovations. Following consultation with also propose that related research continue Finally, the ICT4EE forum should establish industry and others, the recommendation to be financially supported by various EU appropriate links to both the buildings and picks up on the March 2009 communica- programmes. The ICT sector is being asked transport/logistics sector. The Commission tion by setting out tasks, targets and time- to overcome its current confusion of differ- also wants the ICT4EE forum to report lines for industry stakeholders as well as ent methodologies for carbon and energy back, by the end of 2012, on its efforts in member states. accounting. The Commission notes a lack both the buildings and transport sectors. The proposed actions, firstly, call on the of reliable data on energy and environmen- Member states do not escape the Commis- ICT sector to reach a collective agreement tal performance, non-comparable targets sion’s eye being “invited” to set up and launch on measurement methodologies. This set by individual companies, best practice necessary initiatives to effectively address the should focus on accuracy, transparency not being transferred and spurious ‘green’ recommended measures and inform the and verifiability when it comes to measur- claims by certain companies. Commission, annually, as to progress and ing energy efficiency. There should also be Bringing together associations, such as actions taken. The Commission calls on targets for energy consumption and carbon Digital Europe, TechAmerica and the member states to drive demand for energy emissions of ICT processes at both company Global e-Sustainability Initiative GeSi, the efficient ICT and dematerialisation as well and sector level. new sector forum ICT for Energy Efficiency as supporting ICT innovation that services (ICT4EE) is called upon to deliver a road energy efficiency across the economy. map within three months of the recom- A further area where member states should ICT carbon footprint mendation’s adoption. ICT4EE’s road map act is the harmonisation and simplification The recommendation aims to ensure, should set out a comprehensive strategy to of digital formats for energy efficiency infor- by practical steps and ‘voluntary’ agree- identify common ways of measuring and mation. This is seen by the Commission ments, that the ICT sector, by 2020, verifying energy performance. This would as essential in the development of policy, avoids more energy consumption than include a review of what exists today in terms verifying compliance, evaluating impacts, it causes. Use of ICT consumer equip- of standards, methodologies and corporate making investments decisions as well as set- ment currently represents about 8% reporting practices. ting targets and measuring progress. of EU electrical power consumption. The forum should also reach agreement Finally, almost as an afterthought, regional This could reach 10.5% by 2020. The on what industry should come up with and and local authorities as well as cities are Commission warns that overall ICT adopt a timetable for formal commitment “invited” by the Commission to continue to energy use is growing at a faster rate by industries towards adoption and imple- play their active part. n than energy efficiency improvements. mentation of common measurement, veri- ICT, however, could save some 15% of fication and reporting practices. A further (1) More specifically, the recommendation calls emissions in others sectors, like build- sector deliverable is agreement on targets on the ICT sector to identify, by 2011, energy ings and transport, if used intelligently. for the industry as a whole and a commit- efficiency targets that aim to exceed the EU’s ment to benchmarking progress towards the 2020 targets by 2015.

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Lisbon strategy CoR stresses sustainability

By Manon Malhere their implementation at a regional level,” to Policy, Pawel Samecki, also shares these reiterate the words of Cécilia Malmström, different points of view. Recognising that The new Lisbon strategy will have to the Swedish minister of European affairs who the Commission had “Lisbonised cohe- prioritise structural reforms centred on sus- was speaking on behalf of the Presidency of sion policy” he agreed that the Lisbon tainable development. With this strategy the EU Council. The report is very clear on strategy could not be likened to simple coming to an end, the 2010 spring Euro- European financing but that it was a pean Council, under the Spanish Presi- “Countries that make question of “structural reforms supported dency, will have to decide on an updated by investment via the Structural Funds. version. It was against this background that regional plans have better And when the structural reforms happen, the Committee of the Regions presented results than those where the regions of Europe have a crucial role its new report, ‘A new strategy for sustain- the decision making is to play in implementing them”. Looking able growth’, on 6 October during the ahead, “we need your ideas and contri- Open Days. A summary of discussions with centralised” butions,” he said, addressing local and local and regional players, it will serve as regional authorities as well as civil soci- a basis for the own-initiative opinion on ety. In fact, the Commission plans in a the future of the Lisbon strategy after 2010 this point: as long as there is a lack of incen- few weeks to open a consultation proce- that the CoR intends to adopt during the tives for national governments to integrate dure to gather viewpoints on issues such December 2009 plenary session. at an infra-state level when implementing as national reform programmes, admin- For Luc Van den Brande, the president policies, then the goals of the strategy will not istrative simplifications or even more of the Committee of the Regions, the be fully realised. And Luc Van den Brande advanced commitments. report deals with “issues of primary impor- sees the situation similarly, saying “countries tance for the EU because they are aimed that make regional plans have better results What Madrid wants at ending the economic crisis, increasing than those where the decision making is cen- Convinced that a “new strategy is more employment and facing up to climate tralised”. The report also recommends greater necessary today than ever,” Javier Vallés change”. In order to respond to these pri- flexibility as well as adapting better to territo- Liberal, director of the Spanish prime orities, the report recommends first and rial, socio-economic situations: “Implemen- minister’s economics bureau, sketched foremost carrying out structural reforms tation doesn’t work well if we all do the same out the Spanish EU Presidency’s main because “while the Lisbon intuition was thing,” the president of the CoR said again, priorities by stressing in particular the very good, the results don’t match up,” also insisting on the idea of having goals that importance of raising the Community said Pervenche Berès, president of the par- are a lot more attainable. Finally, as Berès budget and the idea that “member states liamentary Committee on Social Affairs remarked, “the strategy needs rebalancing,” that most respect the Lisbon strategy and Employment. as the social and environmental aspects have goals could benefit from advantages”. He One of the main weaknesses raised refers been neglected too much compared with the stressed the fact that local and regional to the “distortion that exists between political goal of competitiveness. authorities should be more involved as decisions adopted at a European level and The Commissioner for Regional well as taking on more responsibility. n

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Transport Council Ministers to discuss future transport policy

By Isabelle Smets road transport, in the context of negotia- sengers with disabilities or reduced mobility. tions currently underway with the Western However, there are a number of outstanding The EU Council of Ministers, meeting Balkans. The objective of these negotiations issues that will need to be resolved during in Luxembourg on 9 October, will discuss is to conclude a treaty establishing a Trans- this Council meeting. These essentially con- paths for a future European transport cern establishing which ships will be policy. The European Commission pre- affected by the future regulation (the sented a communication on this subject, on Presidency proposes not going below 17 June (‘A sustainable future for transport: ships carrying 36 passengers) and defin- Towards an integrated, technology-led and ing the exact conditions under which user friendly system’ - see Europolitics 3773 assistance obligations will apply in and 3775) and member states will, for the case of cancellation or delay (the Presi- first time, express their views on it. At this dency proposes an exemption from stage, it is only an orientation debate: formal the obligation to offer accommodation conclusions are expected at the Transport in case of poor weather conditions or Council, meeting in December. The pro- extraordinary circumstances). cess should result in the development of a A directive intended to simplify new white paper, in 2010, which will set out the administrative procedures and the programme for transport policy for the formalities to be undertaken for ships next decade. arriving in or departing from EU ports In preparation for the debate, the Swedish is also on the agenda, but without any EU Presidency has asked the delegations to issues at this stage: it will simply be a voice their opinions on the major challenges question of ‘taking note’ of a progress (ageing population, migration and internal report on the Council’s work. In par- mobility, environmental challenges, avail- ticular, this report shows that some ability of energy resources, urbanisation member states are questioning the and globalisation) and priorities (integrated, field of application of the text (the technology-led and user friendly transport Commission wants to include all sea system) listed in the Commission’s com- vessels, which is considered to be too

munication. When responding to the Pres- © se2009.eu broad). idency’s questions, ministers should also Swedish Infrastructure Minister Asa Torstensson state which measures and instruments they port Community with the Western Balkans AIR TRANSPORT consider to be most appropriate at Euro- (Albania, Bosnia-Herzegovina, Croatia, Ministers will provide their endorsement pean level to achieve the set objectives, and Former Yugoslav Republic of Macedonia, to an agreement extending to Norway and should name - “concretely,” asks the Presi- Montenegro, Serbia and Kosovo), which Iceland the Open Sky agreement con- dency - the measure or instrument which should create an integrated market for infra- cluded between the EU and the US. They they consider to be most needed within the structure and for road, maritime and inland will also authorise the Commission to open next decade. waterway transport (air transport is already negotiations with Brazil for the conclusion covered by another agreement). But several of an agreement on civil aviation safety with BALKANS member states are concerned that the nego- this country. The objective is to achieve The Council is expected to adopt comple- tiating directives for road transport might reciprocal acceptance of certain certifica- mentary negotiating directives concerning lead to a considerable increase of transit and tion standards, which should limit duplica- to market distortion. Hence their willing- tion of certification and supervision opera- ness to adopt complementary negotiating tions for a large proportion of aeronautical Liquids in hand luggage directives. To recall, talks with the Western products, parts and appliances. Lastly, the Among other business to be dis- Balkans began on 24 June 2008. Council should adopt a decision authoris- cussed during this Council meeting, ing the Commission to open negotiations the European Commission will inform MARITIME TRANSPORT with the US on a memorandum of coop- ministers of the measures it antici- A political agreement should be reached eration in civil aviation research and devel- pates concerning the limit on liquids on a draft regulation designed to introduce opment. The objective is to ensure interop- in hand luggage for air passengers. new rights for passengers travelling by sea erability between the European air traffic This partial ban on liquids should nor- and inland waterway. The proposal aims to management programme (SESAR) and its mally be lifted in April 2010, but the guarantee passenger rights in terms of assis- American counterpart (NextGen). Commission plans to extend it (see tance, information and compensation in the Over lunch, transport ministers will dis- separate article). event of cancellation or delay of their travel. cuss the next road safety action programme, It also lays down rules on assistance for pas- which should be adopted in 2010. n

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GDPGDP EUEU economy shrinks by 0.2% in Q2

Eurostat data Growth rates of GDP in volume (based on seasonally adjusted data) Eurozone GDP fell by 0.2% and EU Percentage change compared with the same quarter of the Percentage change compared with the previous quarter GDP by 0.3% during the second quar-quar- previous year ter of 2009, compared with the previ-previ- Previously Previously 2008 2009 2008 2009 ous quarter, according to estimates released value* released value* published by Eurostat, on 7 October. Q3 Q4 Q1 Q2 2009 Q2 Q3 Q4 Q1 Q2 2009 Q2 In the first quarter of 2009, the fall had EA16 -0.4 -1.8 -2.5 -0.2 (-0.1) 0.4 -1.8 -4.9 -4.8 (-4.7) EU27 -0.4 -1.9 -2.4 -0.3 (-0.2) 0.6 -1.7 -4.8 -4.9 (-4.8) been sharper, with growth rates of -2.5% EU member states in the eurozone and -2.4% in the EU. Belgium 0.0 -1.7 -1.7 -0.3 (-0.4) 1.1 -1.0 -3.1 -3.7 (-3.8) In comparison with the same quarter Bulgaria** :::: : 6.8 3.5 -3.5 -4.9 : Czech Republic 0.5 -1.3 -4.8 0.1 : 2.9 0.5 -4.5 -5.5 : of the previous year, seasonally adjusted Denmark -1.4 -2.0 -1.3 -2.6 : -1.7 -3.7 -3.6 -7.0 : GDP declined in the second quarter of Germany -0.3 -2.4 -3.5 0.3 (0.3) 0.8 -1.8 -6.7 -5.9 (-5.9) Estonia** -3.0 -4.5 -6.0 -3.4 (-3.7) -3.2 -9.2 -15.0 -16.1 (-16.6) 2009 by 4.8% in the eurozone and by Ireland 0.5 -5.6 -2.3 0.0 : -1.2 -8.0 -9.3 -7.3 : 4.9% in the EU, after -4.9% and -4.8%, Greece 0.4 0.3 -1.2 0.2 (0.3) 2.7 2.4 0.3 -0.3 (-0.2) respectively, in the previous quarter. Spain -0.6 -1.1 -1.6 -1.1 (-1.1) 0.5 -1.2 -3.2 -4.2 (-4.2) France -0.3 -1.4 -1.4 0.3 (0.3) 0.1 -1.7 -3.5 -2.8 (-2.6) In the second quarter of 2009, house-house- Italy -0.8 -2.1 -2.7 -0.5 (-0.5) -1.3 -2.9 -6.0 -6.0 (-6.0) hold final consumption expenditure Cyprus 0.1 0.2 -0.6 -0.4 (-0.5) 3.3 2.5 0.8 -0.7 (-0.7) increased by 0.1% in the eurozone and Latvia -1.8 -4.7 -11.0 -0.8 (-1.6) -5.8 -10.7 -18.5 -17.3 (-18.2) Lithuania -0.3 -1.4 -10.2 -9.8 (-9.8) 2.0 -1.3 -11.6 -20.4 (-20.4) decreased by 0.1% in the EU (after -0.5% Luxembourg -0.4 -2.9 -1.7 -0.3 : -0.7 -3.9 -5.9 -5.3 : and -0.9%, respectively, in the previous Hungary -1.0 -1.9 -2.6 -2.0 (-2.1) 0.3 -2.2 -5.6 -7.3 (-7.4) quarter). Malta 0.0 -1.1 -1.2 -0.9 : 2.1 0.5 -1.7 -3.0 : Netherlands** -0.4 -1.1 -2.7 -1.1 (-0.9) 1.9 -0.7 -4.5 -5.4 (-5.1) Investments fell by 1.5% in the euro-euro- Austria -0.4 -1.0 -2.7 -0.5 (-0.4) 2.0 -0.1 -3.8 -4.5 (-4.4) zone and by 2.3% in the EU (after -5.4% Poland 0.6 -0.1 0.3 0.5 (0.5) 4.9 2.6 1.7 1.4 (1.4) and -6%). Exports fell by 1.5% in the Portugal -0.5 -1.8 -1.8 0.3 (0.3) 0.3 -2.0 -4.0 -3.7 (-3.7) Romania** -0.1 -2.8 -4.6 -1.1 (-1.2) 9.2 2.9 -6.2 -8.7 (-8.8) eurozone and by 1.7% in the EU (after Slovenia 0.7 -4.1 -6.4 0.7 (0.7) 3.7 -0.9 -8.9 -9.0 (-9.0) -9.2% and -8.6%). Imports decreased Slovakia** 1.8 2.1 -11.0 2.2 (2.2) 6.6 2.5 -5.6 -5.3 (-5.3) by 2.9% in both zones (after -7.9% and Finland -1.1 -2.5 -3.0 -2.6 : 0.9 -3.0 -6.5 -8.9 : Sweden -0.5 -4.9 -0.9 0.2 (0.0) 0.2 -5.1 -6.5 -6.1 (-6.3) -8.3%). United Kingdom -0.7 -1.8 -2.5 -0.6 (-0.7) 0.3 -2.0 -5.0 -5.5 (-5.5) Among the main partners of the EU, EFTA countries Iceland 1.8 3.2 -5.9 -2.0 : -3.4 1.6 -7.1 -3.1 : GDP decreased by 0.2% in the US in the Norway -0.9 0.4 -0.8 -1.3 (-1.3) 1.2 0.5 -0.7 -2.5 (-2.5) second quarter of 2009 (-1.6% in the pre-pre- Switzerland -0.4 -0.6 -0.9 -0.3 (-0.3) 1.3 -0.2 -1.6 -2.1 (-2.1) vious quarter). In Japan, GDP increased Main economic partners United States -0.7 -1.4 -1.6 -0.2 (-0.3) 0.0 -1.9 -3.3 -3.8 (-3.9) by 0.6% in the second quarter of 2009 Japan -1.3 -3.4 -3.3 0.6 (0.9) -0.3 -4.5 -8.4 -7.2 (-6.5) (-3.3% in the previous quarter). „n : Data not available. / * See News Release 125/2009 of 2 September 2009. / ** Percentage change compared with the same quarter of the previous year: non-seasonally adjusted.

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Excessive deficit procedure Commission confirms scrutiny on nine more countries

By Sarah Collins recently alerted the Commission to its -3.9% exceed the EU’s 60% limit - hitting 31.4% budget gap, matching the EU executive’s this year - GDP is set to tumble by 5.7% this The European Commission has prediction in its spring economic forecast. year, well above the EU average. announced that nine more countries have GDP has fallen more than expected in the Slovenia: The Slovenian budget deficit surpassed a 3% of GDP budget deficit limit. country – taking a 5.4% tumble – and a fiscal is to hit 5.5% this year, if the Commission This brings to 20 the number of EU states stimulus worth 1.75% of GDP in 2009 and is right – or 5.1%, according to the govern- being brought to book under the corrective in 2010 has affected public finances. ment in Ljubljana – while government debt arm of the Stability and Growth Pact, which Austria: In April, Austria said it had hit a will remain well below the 60% threshold, also imposes a 60% of GDP limit on general 3.5% deficit, but the Commission predicts it at around 29%. Growth will contract by government debt. will reach 4.2% by the end of the year. Slid- around 4%, the EU average, and the govern- As reported in Europolitics 3830, Austria, ing private investment and foreign trade are ment says it could have the deficit back to Belgium, the Czech Republic, Germany, to cause a 4% drop in growth for the country normal by 2012. Italy, the Netherlands, Portugal, Slovakia this year, and general government debt has Belgium: The country’s budget defi- and Slovenia all exceeded the limit in 2009. already reached 68.5% (70.4% according to cit forecast has taken a tumble since the They join nine other member states – France, the Commission). spring, and is likely to hit -5.9% in 2009. Spain, Ireland, Greece, Poland, Lithuania, Netherlands: In a September memoran- Gross government debt will far surpass the Latvia, Romania and Malta – which posted dum, the Dutch authorities admitted that 60% threshold, reaching 97.5% of GDP this deficits in 2008. The UK and Hungary have the 2009 budget deficit would soar to 4.8%, year. While the government’s fiscal support deficits pre-existing the financial crisis. over one percentage point above predictions. for the economy is valued at around 0.5% Estonia managed to escape the procedure, A much worse than expected first quarter of of GDP over two years, a cash boost for the along with Bulgaria, Cyprus, Denmark, the year, led by a drop in private consump- country’s four major banks is likely to cost Sweden, Finland and Luxembourg. tion, means that GDP growth will drop 4.5% the exchequer around 6% of GDP. EU member states are required to provide this year, just above the EU average. Portugal: Lisbon will exceed both deficit the Commission with their projected deficit Italy: The Italian budget gap has reached - and debt limits in 2009, with a -5.9% budget and debt levels twice yearly. The Commis- 5.3%, two points higher than predicted. Gov- gap (according to government figures) and a sion will now send the reports it has prepared ernment debt will remain high at 115.3% 74.6% debt level. Low GDP growth means on the nine to the Economic and Financial of GDP this year – the highest in the EU these figures could worsen in 2010. Committee, which must report back in 15 – while consistently low GDP growth – it Czech Republic: A -5.5% budget gap days. will fall by 4.8% in 2009 – will continue to with low public debt for 2009 comes Monetary Affairs Commissioner Joaquín plague the country. on the back of years of positive growth Almunia said, on 7 October, “Now is also the Slovakia: After five years of consistently for the Czech Republic. Like the other moment to design coordinated exit strategies high economic growth, the government in eight countries on the current list, the so that, when the moment is right, we can Bratislava predicts a -6.3% budget gap this Commission says the government in begin to roll back the soaring debt levels”. year and rapidly rising public debt levels. Prague did not do enough to save in the Germany: The German government Although general debt is not expected to boom times. n

EU/US Washington wants to know who will pick up that phone

By Brian Beary in Washington Whether it be Tony Blair - a perenni- contrast, President Barack Obama seems ally popular figure in the US - or anyone very comfortable with the EU having a “Who do I call if I want to call Europe?” else, what they want to know is will the strong role on defence. The question posed by Henry Kissinger is as new EU president change the dynam- On both sides of the political aisle in pertinent today as ever for the United States. ics of their foreign policy dealings. Will Washington, there is hope that Lisbon’s Ireland’s ‘yes’ vote on the Lisbon Treaty, on Paris, Berlin and London be sidelined or foreign and defence policy provisions will 2 October, has garnered a surprisingly high will they still be in control, with Brussels spur the EU to at least take care of its own level of attention in media, think tank and playing second fiddle? Digging deeper, backyard - the Balkans. With Bosnia on the policy making circles this week in Wash- policy experts - especially in neo-conser- verge of being a failed state and Serbia still ington, with a host of conferences dissect- vative circles - are asking if the stronger surly, the US does not want a repeat of the ing the treaty’s impact taking place. What foreign and defence policy powers Lisbon 1990s, when Europe failed to act decisively Americans are especially curious about is grants to the EU will undermine NATO. to prevent mass bloodshed in the crum- the new position of EU Council president Former President George Bush had ini- bling Yugoslavia. And, of course, Washing- and the enhanced powers of the EU’s high tial concerns about this, although he did ton continues to watch like a hawk what the representative for foreign policy. seem to eventually warm to the idea. In EU does with Turkey. n

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Lisbon Treaty Jan Fischer: Prague will ratify by end of year

By Célia Sampol thing is in place for ratification of the treaty ty’s entry into force at the end of 2009. to be completed by the end of the year”. He Sweden’s European Affairs Minister, Czech Prime Minister Jan Fischer vowed, added: “I am perfectly convinced that, after Cecilia Malmström, will be in Prague, on 7 October in Prague, that his country’s the court issues its verdict, President Klaus on 8 October, followed the next day ratification would not be a problem and will be willing to conclude the procedure by Jerzy Buzek (who will meet Fischer could be completed by the end of this year. by signing”. Klaus has on several occasions and the presidents of both chambers of The Swedish EU Presidency has confirmed, threatened to delay his signature to block the parliament, “not to pressure them but however, that it cannot start consultations treaty, to which he is fiercely opposed, until to explain the position of our institu- with the member states on the appointment the spring 2010 legislative elections in the tions”). Barroso says he is ready to set of commissioners and the top EU positions up his team and to hand out portfolios, until it has further details. “but the Council has to say what legal Swedish Prime Minister Fredrik Reinfeldt Os nos estiniat. Rat acil basis to use for the appointment of the convened the meeting in Brussels with his dolore magna feugiatue commissioners and the high representa- Czech counterpart and European Com- magnis ero dolobore feum tive, who will also be the Commission mission President José Manuel Barroso just vice-president” under Lisbon. Under after the announcement of the results of the aute feuguer siscidunt la the Nice Treaty, the Commission is set 2 October Irish referendum. Now that Ire- cons nisi. to be reduced by at least one member, land has said ‘yes’, only two countries still whereas under Lisbon, it could keep have to complete ratification: Poland, whose the status quo of one commissioner per President, Lech Kaczynski, is expected to member state. n sign this week the act of ratification adopted UK. The Tories, his Eurosceptic allies, have by parliament in 2008, but most importantly announced that, if elected, they would con- the Czech Republic, which is awaiting vene a referendum on the treaty and would Commission’s ground-clearing the verdict of its Constitutional Court and campaign for its rejection if the text has not work is subject to the whims of its Eurosceptic yet entered into force. The Czech prime Addressing the European Parliament’s President, Václav Klaus. minister is nonetheless “deeply convinced Committee on Constitutional Affairs, that there is no reason to be worried. This is on 6 October, Institutional Relations Question of time not a question of saying ‘yes’ or ‘no’, but just Commissioner Margot Wallström said The Czech prime minister was unable to a question of time”. the executive was already working travel to Brussels owing to an aircraft techni- The head of the Swedish government “energetically” on four issues related cal problem, but he held a video conference explained that he did not yet have the details to entry into force of the new treaty: with Reinfeldt and Barroso from Prague. Jan required to launch consultations with the the European External Action Service Fischer also held an audio conference with member states on the appointment of the that will assist the high representa- the press, alongside the presidents of the next Commission or the high representa- tive, new rules on comitology (“the three institutions (the EP President, Polish tive for foreign affairs and the permanent Commission wants to maintain the Conservative Jerzy Buzek, joined the meet- European Council president, the two posi- role played by Parliament because ing in the meantime). He pointed out that tions created by Lisbon. “We have to respect certain decisions are important for the in spring 2009, both houses of the Czech the ratification process in Czech Republic EU and require scrutiny. We have had parliament approved the treaty and that the [...]. Without a signature on paper, I cannot examples where comitology did not “government has always backed completion promise when or on what basis I must act. take account of this communication of the ratification process”. A second appeal But according to what Jan Fischer has told and as a result it can become a dan- was brought before the Constitutional Court, us, I think that we will have the answer soon. gerous instrument”), the subsidiarity however, on 29 September, by 17 Liberal The Presidency will remain flexible and principle and the new role assigned to senators seeking a check of the treaty’s com- ready to act right away.” national parliaments, and the citizens’ patibility with the national constitution. This initiative, which allows one million action follows on from one brought last year, Objective: end 2009 citizens to apply to the Commission which was dismissed. In the new appeal, the Reinfeldt went on to add that there are to make proposals in a given area court has sought the opinion of experts from “several areas where the Presidency can con- (“we wish to consult civil society and other institutions, including parliament, and tinue its work, trying to go as quickly as pos- citizens before presenting a formal is expected to announce next week the date sible to prepare the ground”. He has already proposal in early 2010”). of its verdict. met High Representative Javier Solana to Wallström, who will not be part of For Jan Fischer, “the court is perfectly ask him to stay on the job until the end of the next Commission, also proposed independent. [...] What is extremely positive October. Sweden’s aim is to work out an the creation of a commissioner for is that it has decided to treat the matter under agreement on the appointments at the EU communication and citizenship. a fast-track procedure, so I think that every- summit, on 29 and 30 October, for the trea- www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3834 Thursday 8 October 2009 15

Media EP maintains debate on press freedom in Italy

By Nathalie Vandystadt came just after more than 100,000 dem- tained that “the European Parliament is onstrators had gathered in Rome, on 3 not a resonance chamber for conflicts in The suspense went on until the very last October, in response to the appeal by the member states, an appeals body […] or minute: just before this issue of Europoli- the Italian press federation and the left an authority for settling scores in national tics went to press, Joseph Daul, chair of to “defend freedom of the press” and to politics,” said its chair, Joseph Daul. Italy, the EPP group (right) in the European censure Berlusconi’s control over the “where the rule of law is applied the same Parliament, sought to obstruct the hold- media, notably broadcasting. The head way as in other countries,” is victim of an ing of an attention-grabbing debate on of the Italian government described the “unfair trial,” he added. freedom of the press in Italy. demonstration as an “absolute farce”. It Daul nevertheless said he backs a “thor- The EPP’s efforts were in vain, how- remains to be seen what he will have to ough debate” on media concentration in ever. The debate on the media empire say about Parliament’s debate. Europe. “I am in favour, if the EP wishes headed by Italian Council President “We have turned to the European Par- to organise a debate on media concen- Silvio Berlusconi will take place as liament not to discuss the Italian problem, tration. What I reject is to get involved scheduled. Demanded by the Liberals, but to set common rules for all European in national controversies,” he explained. Socialists and Greens, it is set for 9:00 countries. We will then be able to make The Liberals point out that “the EPP on 8 October at the Brussels plenary. It use of them in Italy, but elsewhere as has, on the contrary, always opposed this will be followed by a vote on a joint reso- well,” explained di Pietro. The draft reso- debate and rejected all requests for a lution. The day before, the main politi- lution concerns equal opportunity, free- directive on concentration in the media”. cal groups supported their positions in dom and plurality of the media. “What The latest attempt was by former Socialist statements to the press. we can do at European level is above all MEP Marianne Mikko (Estonia). to guarantee media plurality, the heart The Commission has so far always EU directive? of the problem in Italy, with a directive,” maintained that media concentration is The initiative spearheaded by the added ALDE Chair Guy Verhofstadt a national issue. Verhofstadt claims that Liberals (ALDE), in particular Antonio (Belgium). the EU treaties provide the legal basis di Pietro (Italy), Socialists and Greens, The EPP, on the other hand, main- necessary for a draft directive. n

EU/South Korea Commission backs initialling of FTA on 15 October

By Fabrice Randoux automobile industry, he fears that this The FTA, the most ambitious ever con- mechanism gives Korean manufacturers cluded by the EU, will allow exporters to In the end, Taxation Commissioner an advantage that could enable them to save almost €1.6 billion a year in customs László Kovács did not get his way. At his import parts from low-cost Asian coun- duties, of which €1.2 billion for manu- request, the European Commission did tries, like China. And he finds it a dan- factured products, according to the Com- indeed debate the free trade agreement gerous precedent for ongoing or future mission. And the FTA will guarantee (FTA) with South Korea, on 7 October, “robust discipline” regarding non-tariff but without taking into account the barriers, in particular in the automobile demands of the commissioner or those This, however, is just one sector, where Korea will recognise many of the Association of European Automo- step in the FTA saga European standards as the equivalent of bile Manufacturers (ACEA). Trade Com- its own. missioner Catherine Ashton and Korean Initialling is, however, just one step in Trade Minister Kim Jong-hoon will EU trade negotiations. He had expressed the FTA saga. It means that the text is con- therefore initial the FTA, on 15 October these concerns to the President of the solidated legally, but it still leaves room in Brussels. The debate showed “a very Commission, José Manuel Barroso (see for manoeuvre on how it is implemented broad consensus on the significant ben- Europolitics 3831), complaining about internally by the EU. The Commission efits” of the FTA, said a spokesperson how the negotiations were being con- is counting on using this room for dis- for the EU executive, even if it will be ducted. Faced with these recrimina- cussion to convince those states that are necessary to remain “careful” on imple- tions, DG Trade responded by saying it still hesitant about the FTA, mainly Italy. menting the clause on the duty drawback had agreed with South Korea in June to After the initialling, the Commission system in the automobile sector. create a mechanism allowing the EU to will need the support of Council to be Kovács opposed giving Seoul the right limit to 5% the duty drawbacks in the case authorised to sign the text. And the agree- to repay import duties to companies that of a massive influx of Korean cars. This ment will still have to pass the European used imported materials to make a prod- mechanism will, however, only apply five Parliament, and then be ratified by each uct aimed at the export market. Like the years after the FTA comes into force. member state. n

Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info 16 Thursday 8 October 2009 N° 3834 EUROPOLITICS

In Brief

Czech energy merger approved (coordinator: Karel Van Miert, who died Session II examines renewables research On 7 October, the European Commission last June), South-West Europe high-speed and technology, including cooperation cleared the acquisition of Prazská rail link (coordinator: Etienne Davignon, on R&D, whilst Session III is devoted teplárenská, a.s (PT) of the Czech Republic replaced by Carlo Secchi on 22 July), to solar energy development. The event by Czech company International Power Lyon-Ukraine border rail link (Laurens takes place in the European Commission’s Opatovice, a.s. (IPO), EnBW AG of Jan Brinkhorst), Paris-Bratislava rail link Charlemagne Building. Germany and the City of Prague. PT (Péter Balázs, appointed Hungary’s foreign is primarily involved in the provision of minister in the meantime), Rhine/Maas- Sakharov Prize finalists district heat, but is also active in the energy Main-Danube inland waterway axis The European Parliament has three sector. EnBW is a vertically integrated and Seine-Schelde canal (Karla Peijs), finalists for the 2009 Sakharov Prize. energy company and IPO operates a lignite- motorways of the sea (Luis Valente de Dr. Izzeldin Abuelaish, a Palestinian powered plant in Opatovice, which sells Oliveira), Rail Baltica (Pavel Telicka), gynaecologist in Gaza. He cares for Israelis both electricity and heat to customers in and European Rail Traffic Management as well as Palestinians. In January 2009, the Czech Republic. The Commission’s System (ERTMS - Karel Vinck). during the Israeli incursion into Gaza, investigation found that the proposed a bomb destroyed his apartment, killing merger would not close off the district heat Approval for aid to WestLB his three daughters. In memory of his market to competition and a sufficient The European Commission approved, daughters, Dr. Abuelaish would like to number of competitors would remain due on 7 October, a temporary increase in set up an international foundation with a to the low market shares in the related the guarantee for a portfolio of securities goal to improve the education of women upstream/downstream markets (gas and of the German regional bank WestLB. in Gaza and throughout the world. Dawit electricity). The aid, amounting to €6.4 billion, was Isaak, a Swedish-Eritrean journalist, writer granted by SoFFin, a fund administrating and dramatist who has been in prison EU approves third H1N1 vaccine the German support scheme for since 2001 for political reasons. Along Based on the positive scientific opinion financial institutions. WestLB is currently with nine other journalists of the free press issued by the Committee for Medicinal implementing a restructuring plan and fifteen politicians, he was arrested in Products for Human Use (CHMP) of the approved by the Commission in May Eritrea as a “traitor” for having demanded European Medicines Agency (EMEA), 2009. The plan foresees, among other democratic reforms. Lyudmila Alexeyeva, on 1 October, the European Commission measures, the creation of a ‘bad bank’ that Oleg Orlov and Sergey Kovalev on behalf authorised, on 6 October, Celvapan, a third will ensure the bank’s return to viability. of the association Memorial and all the vaccine against H1N1 flu. Produced by The aid is in line with the Commission’s other human rights defenders in Russia. Baxter International Inc., Celvapan has been communication on state aid to banks The association Memorial is trying to authorised for use in all member states of during the financial crisis, as it is necessary promote basic rights in the post-Soviet the EU and the EEA (Iceland, Lichtenstein for the creation of the ‘bad bank’. countries. The presidents of the political and Norway). On 29 September, the groups will choose the winner on 22 Commission already authorised two EU, Med and Gulf meet on October. The prize will be awarded on 16 other vaccines: Focetria by Novartis and renewables December in Strasbourg. Pandemrix by GalxoSmithKlein (see The European Commission hosts, on 9 Europolitics 3829 and 3831). October, a ministerial-level conference on Surprise inspections at pharma renewable energy cooperation between companies Annual reports on TEN-T the EU, the Mediterranean and Gulf The European Commission The coordinators of the Trans-European countries. Keynote speeches are to be given confirmed, on 6 October, that it had Transport Network (TEN-T) have turned by Commissioners Benita Ferrero-Waldner carried out surprise inspections at the in to Transport Commissioner Antonio (external relations) and Andris Piebalgs premises of certain pharmaceutical Tajani their fourth annual and final report (energy). The three discussion sessions companies that it suspects of violating for their first mandate, which presents an address policy frameworks and cooperation, EU competition rules (Treaty update on the priority projects for which research and technology as well as projects Articles 81 and 82 banning restrictive they are responsible. The reports contain of common interest. Specific attention will commercial practices and/or abuse of detailed analyses of nine major transport be given to developing a renewable energy dominant position). In a communique, projects co-financed by the EU under market (Session I), including harmonised it does not disclose the names of the the TEN-T: the Berlin-Palermo rail link legislative and regulatory frameworks. companies concerned. www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3834 Thursday 8 October 2009 17

EU Agenda

Thursday 8 October Committee on Civil Liberties, Justice who are responsible at the national level and Home Affairs for local and regional self-government in 14:00-16:00, Brussels JAN 4Q2 member countries. The aim of the meeting European Joint meeting with JURI and AFCO is to discuss current EU matters and matters • Commission statement to the European of principle pertaining to regional and local Parliament Parliament and the Council - An area of levels in the EU. Plenary session freedom, security and justice serving the Brussels, Plenary Chamber citizen - Stockholm programme: co- Plenary agenda: rapporteurs: Juan Fernando López Aguilar (S-D, ES), Luigi Berlinguer (S-D, IT) and European 9:00-10:50 Carlo CASINI (EPP, IT) • Freedom of information in Italy - Commission Commission statement, followed by debate Committee on Constitutional Affairs Travel and visits 14:00-16:00, Brussels JAN 4Q2 n José Manuel Durão Barroso receives Xi 11:00-13:00 Joint committee meeting with JURI and Jinping, vice-president of China Votes - Rule 138 LIBE n José Manuel Durão Barroso receives Jan • G20 summit in Pittsburgh (24-25 • Commission statement to the European Fischer, prime minister of Czech Republic September) - Motion for resolution Parliament and the Council - An area n José Manuel Durão Barroso at the opening • The effects of the global financial and of freedom, security and justice serving ceremony of Europalia China (Beaux-Arts) economic crisis on developing countries the citizen - Stockholm programme co- n Margot Wallström meets with Jerzy Buzek, and on development cooperation - Motion rapporteurs: Juan Fernando López Aguilar president of the European Parliament for resolution (S-D, ES), Luigi Berlinguer (S-D, IT) and n Siim Kallas in The Hague: meets with • Nominations in the special committee on Carlo Casini (EPP, IT) Frans Timmermans, Dutch secretary of state the economic crisis and minister for European affairs; meets • Other votes with Gerdi Verbeet, president of the Dutch House of Representatives; meets with the The President’s diary Council of Public Expenditure Committee of the Dutch Brussels Parliament; meets with Wouter Bos, Dutch n 10:00 - Meeting with Vice-President of Ministers minister of finance Colombia, Francisco Santos Energy Council n Antonio Tajani delivers a speech at the n 11:00 - Meeting with Chiara Simoneschi- 8-9 October, Luxembourg ‘Galileo to Galileo’ conference (Luxembourg) Cortesi, president of the National Council n Viviane Reding receives Vittorio Colao, of the Swiss Parliament Delivering Animal Welfare and CEO of Vodafone Quality: Transparency in the Food n Viviane Reding and Antonio Tajani at the Parliamentary committees Production Chain bilateral (Italy-Luxembourg) conference ‘De Committee on Budgets 8-9 October, Uppsala Galileo Galilei au projet européen Galileo: 9:00-12:30, Brussels, ASP1G3 The EU-funded research project entitled état actuel de la recherche européenne et ses • 2010 budget. Vote on resolution. ‘Welfare quality’ will report its results at the perspectives’ (Luxembourg) conference. Taking part in the project are n Joaquín Almunia participates in the ECB Committee on Legal Affairs researchers from many EU countries as Governing Council Meeting (Venice) 14:00-16:00, Brussels, JAN4Q2 well as Australia, Chile, Uruguay and other n Paweł Samecki at the Open Days: keynote Joint committee meeting with AFCO and countries.The conference will focus on how speech on European Cohesion Policy post- LIBE the results of the project can be translated 2013; Open Days University panel (CHARL); • Commission statement to the European into practical action and how animal welfare closing remarks at Open Days; Closing Parliament and the Council - An area can be improved at global level session with Luc Van Den Brande, president of freedom, security and justice serving of the Committee of the Regions (CHARL) the citizen - Stockholm programme co- High Level Meeting on Governance n Paweł Samecki receives a delegation rapporteurs: Juan Fernando López Aguilar and the EU of the Confederation of European Local (S-D, ES), Luigi Berlinguer (S-D, IT) and 8-9 October, Solna (Sweden) Intermediate Authorities (CEPLI) Carlo Casini (EPP, IT) The meeting is directed at the officials n Paweł Samecki hands over European

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Destinations of Excellence prizes (Square n Androulla Vassiliou delivers a speech at the n Hearing T-361/08: Peek & Cloppenburg Brussels Meeting Centre) conference ‘Delivering animal welfare and and van Graaf v OHMI - Queen Sirikit n Karel De Gucht participates in the 41st quality: Transparency in the food production Institute of Sericulture (Thai Silk) Annual Tidewater Meeting (8-9, Venice) chain’ (Uppsala, Sweden) Intellectual property n Neelie Kroes signs memorandum of Community trade mark – Action for understanding with the Brazilian competition annulment brought by the holder of a agencies (Brasilia, Brazil) national figurative mark representing a n Mariann Fischer Boel receives Mike Court of First peacock for goods and services in Classes Petersen, chairman of Meat and Wool New 18, 25 and 35 against Decision R 1677/2007 Zealand Instance – 4 of the Fourth Board of Appeal of the n Closing speech by Mariann Fischer Boel 9:30 Office for Harmonisation in the Internal at the conference on quality organised by the Fifth Chamber Market (OHIM) of 10 June 2008 dismissing ‘Fondazione Qualivita’ n Hearing T-331/06: Evropaïki Dynamiki v the appeal against the decision of the n Speech by Mariann Fischer Boel at the AEE Opposition Division, which rejected International Sheepmeat Forum organised by Company law the opposition brought by the applicant Copa-Cogeca Annulment of the decision of the European against the registration of the figurative n Meglena Kuneva in Barcelona (8-9): Environment Agency of 14 September mark representing a peacock together with meets with Didac Ramirez I Sarrio, rector 2006 rejecting the tender submitted by the the word element ‘Thai Silk’ for goods in of the University of Barcelona; delivers an applicant in the framework of the tendering Classes 24 and 25 inaugural lecture of the European Masters procedure EEA/IDS/06/002 for the in Consumer Affairs at the University of ‘Provision of IT consultancy services’ (OJ Barcelona (8). Delivers a speech ‘Consumer 2006 S 118-125101) and of the decision to education: The first line of defence’ at the award the contract to another tenderer meeting of the Spanish representatives of the DOLCETA information network; visits the 15:00 School of the Catalan Consumer Agency (9) Eighth Chamber

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DOSSIERS „ Cyprus reunification process, 3569, 10/07/08 „ Security and defence strategy, 3563, 2/07/08 „ EU in Asia, 3820, 19/09/2009 „ Small Business Act, 3561, 30/06/08 „ Europe of research: Broken promises, 3815, 11/09/2009 „ Lamassoure report on citizens’ Europe, 3559, 26/06/08 „ EU Court of First Instance at 20, 3810, 04/09/2009 „ Galileo, 3557, 24/06/08 „ EU-US financial regulations, 3805, 28/08/2009 „ Back to Nice, 3554, 19/06/08 „ European Parliament 2009-2014: Parliamentary committees, 3801, 27/07/2009 „ Territorial cooperation, 3552, 17/06/08 „ Security of energy supply, 3794, 15/07/2009 „ Irish referendum, 3548, 11/06/08 „ Commission: Member states preparing to nominate candidates, „ REACH, 3540, 30/05/08 3790, 09/07/2009 „ EU-Bosnia-Herzegovina – EESC at 50, 3538, 28/05/08 „ EU-US food safety disputes : 3781, 26/06/09 „ Remuneration of directors, 3536, 26/05/08 „ Aviation: The answers to climate change, 3773, 16/06/09 „ Brazilian beef breeders planning full return to EU markets, „ Three heads for Europe, 3767, 08/06/09 3532, 20/05/08 „ Atalanta, 3761, 28/05/09 „ Return directive, 3531, 19/05/08 „ Competition policy, 3758, 22/09/2009 „ EU-US – Climate change, 3524, 7/05/08 „ Third energy liberalisation package, 3748, 07/05/09 „ EU Chad-CAR mission, 3517, 24/04/08 „ Five years after: Whither enlargement?, 3744, 30/04/09 „ EUBAM Moldova-Ukraine mission, 3516, 23/04/08 „ 15 years of the Committee of the Regions, 3738, 22/04/09 „ EU-Japan, 3515, 22/04/08 „ Washingtonians Europeans should know, 3727, 02/04/09 „ EU-NATO, 3509, 14/04/08 „ Airbus A400M, 3722, 26/03/09 „ VAT package, 3469, 13/01/08 „ Solana, 3717, 19/03/09 „ Energy-climate change pakage, 3455, 24/01/08 „ European Parliament’s priorities in run-up to elections, „ Kosovo, 3452 and 3453, 21 and 22/01/08 3709, 09/03/09 „ EU-Africa summit, 3428, 06/12/07 „ Water, a global challenge, 3712, 12/03/09 „ The crisis: A test for Europe, 3699, 23/02/09 SPECIAL EDITIONS „ EU-US – Barack Obama: Chances and challenges, „ Swedish Presidency: Bends ahead, 3785, 02/07/09 3674, 19/01/09 „ Super Parliament 2009-2014, 3782, 29/06/09 „ ESDP mission in Georgia, 3664, 23/12/08 „ European elections 2009, 3749, 08/05/09 „ Poznan conference, 3649, 2/12/08 „ Czech EU Presidency, 3665, 04/01/09 „ Regions and migration, 3645, 26/11/08 „ EU Security and Defense Policy, 3630, 03/11/08 „ Enlargement report, 3632, 5/11/08 „ French EU Presidency: New horizons, 3562, 01/07/08 „ Pact on immigration and asylum, 3617, 15/10/08 „ European Parliament of Enterprises, supplement, 14/10/08 „ Reform of the Common Fisheries Policy, 3604, 26/09/08 „ European Parliament turns 50: Anniversary special, 3494, „ Citizens’ access to law and justice in Europe, 3598, 18/09/08 19/03/08 „ Customs Union, 3594, 12/09/08 „ Slovenian EU Presidency, 3441, 04/01/08 „ Community Fisheries Control Agency, 3580, 28/07/08 „ Europe facing climate change: 3423, 30/11/07 „ Telecoms package, 3579, 25/07/08 „ Lisbon Treaty: Here is what changes: 3407, 07/11/07 „ Energy liberalisation, 3576, 21/07/08 „ Tomorrow’s Europe: 1957-2007 - What’s next?: 3270, 19/03/07