ISSUE 44 JUNE 2010

IN THIS ISSUE:

News NEWS IN BRIEF Belgian Presidency Cross Border Health Directive EU Energy Strategy 2011 - 2020 Belgian Presidency Common Agricultural Policy (CAP) will assume the rotating EU Cohesion policy post 2013 Presidency of the EU Council on 1 July 2010. Preparations have been affected by Europe 2020 Strategy the collapse of the Belgian Government in April 2010. Upcoming meetings & events

The Presidency priorities are expected to Contact details include: (i) the economic crisis; (ii) social cohesion; (iii) climate change; (iv) the Stockholm (Justice) programme; and (v) external affairs France remains a staunch defender of the status quo, while the UK would wish to see Cross Border Health Directive substantial reductions in funding. The directive is being discussed by the Health Council (8 June 2010). Following EU Cohesion policy post 2013 the tabling of a compromise text by the In preparation for discussion on regional Spanish EU Presidency, political agreement policy at the EU Heads of Government is expected to be reached by member summit (17 – 18 June 2010) member states, re-starting the legislative process states have presented their views on in the autumn. future reform.

EU Energy Strategy 2011 - 2020 Europe 2020 Strategy The Commission is currently consulting on The EU Heads of Government summit (17 a new EU strategy with a deadline of 2 – 18 June 2010) will sign-off the Europe July 2010. 2020 strategy. However, a number of issues remain contentious, in particular In a related matter, the Commission has the poverty targets (highlighted by the published a stock-taking document previous summit), the importance of detailing current shortcomings of energy strengthening the social model, and the policy. method whereby the strategy will be Common Agricultural Policy (CAP) agreed (inter-governmental method v. EU farming ministers aired their views on community method). CAP reform at an informal Agriculture Council in Spain (1 June 2010). The member state positions are as expected. BRUSSELS BULLETIN

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BELGIAN PRESIDENCY general and preparing for the December 2010 UN climate Current status conference in Cancún, Mexico. Belgium will take over the rotating • Implementing the Stockholm Presidency of the European Council on 1 (Justice) Programme July 2010. • Developing the EU’s enlargement policy, together with preparation for What’s happening? the launch of the European External Belgium currently has a ‘caretaker’ Action Service (the EU diplomatic government following the collapse of the corps). Leterme government on 26 April 2010. Elections have been scheduled for 13 Belgium will launch its detailed June 2010. Although the elections will Presidency programme on 16 June be held in June, it is unclear whether a 2010. new government will be formed before As Belgium will be the second member the country assumes the EU presidency. of the Presidency trio to take office, their It took nine months to form the previous goals and ambitions closely match those government (which survived only two of the first member, Spain, current years). holder of the Presidency. Belgium will , acting as caretaker prime be succeeded by Hungary on 1 January minister until a new government is 2011. sworn in, met with Commission In a related matter, Belgian Minister for President Barroso to detail preparations European Affairs, Olivier Chastel has for the upcoming Belgian EU Presidency stated that Belgium will defer to the new (26 May 2010). Laterme stated that Permanent President of the European his country was fully prepared for the Council, the Belgian Herman Van role of EU president and that Rompuy and the Briton Catherine Ashton preparations had been ‘well prepared by – when the country assumes the Belgium for a long time’. rotating EU presidency (3 June 2010) . President Barroso commented: ‘There Chastel stated that both Van Rompuy will maybe be a political rhythm that is and Ashton ‘will have full responsibility going to be different in Belgium for their entire field of competence,’ internally but that will not harm the adding that the Belgian Presidency will demands of the Presidency’. not step aside but will implement ‘the Leterme stated that the Belgian Lisbon Treaty, all the Lisbon Treaty and Presidency would have five priorities: nothing but the Lisbon Treaty’.

In other words, ‘those who have a • Tackling the ongoing economic crisis tradition for putting themselves forward: (in particular the crisis in the the head of state, in our case the prime Eurozone) and putting in place minister and the foreign affairs minister, appropriate architecture to improve will be less visible’. surveillance of financial markets

• Social cohesion and the fight against poverty • Environment and climate change in BRUSSELS BULLETIN

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CROSS BORDER HEALTH DIRECTIVE Consumer Affairs Council (EPSCO), chaired by the Spanish Health Minister Current status (8 June 2010). Following a volte face by Spain, current The Council discussions are expected to President of the Council, new life has concentrate on four issues: been breathed into the Cross Border • the definition of the member state of Health Directive. The directive is to be affiliation with regard to pensioners discussed at the Health & Consumer living abroad Affairs Council (8 June 2010). A full • reimbursement and prior update will appear in the next edition of authorisation as regards non- the bulletin. contractual healthcare providers

• the legal basis What’s happening? • the provisions on e-health Following debate within Council and

Parliament during 2009, by December The principal debate will focus on the an impasse had been reached (see first two issues, which remained Brussels Bulletins for April and unresolved following the EPSCO Council December 2009). meeting of 1 December 2009. A number of member states (Spain, Pensioners health care. On the issue of Greece, Lithuania, Poland, Portugal and reimbursement of healthcare costs of Romania) were implacably opposed to pensioners living within the EU but the directive in its present form. Such outside their home state and receiving was the opposition that the Commission healthcare in that non-home state, the was expected to withdraw the proposal. Presidency proposed that as a general The principal cause of opposition was the rule the home state should meet the fear amongst several member states healthcare costs, since that country that they would be burdened with would be responsible if the pensioners additional health care costs as health had not moved abroad. tourists from the northern European Reimbursement & prior authorisation. countries sought more rapid treatment The Spanish compromise follows the in the south. original Commission line, namely that The situation was further complicated by prior authorisation must be sought for the issue of who pays for the treatment treatment that would involve an of ‘ex pat’ pensioners resident in the overnight stay in hospital or which is sunny Mediterranean states (e.g. British ‘specialist’ in nature. The term pensioners living in Spain). ‘specialist’ remains undefined. Costs would only be reimbursed up to the limit In a surprise move, Spain, currently of costs in the home state. President of the European Council and previously strongly opposed to the Legal basis. This area is less Commission proposal, has tabled a controversial since it involves the compromise text, in an effort to re-start codification of existing European Court of the legislative process. Justice case law. The Presidency is looking to balance the case law of the The compromise will be discussed at the European Court of Justice (on the Employment, Social Policy, Health and application of Article 114 to health BRUSSELS BULLETIN

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services and the member states’ legislation fully. But considering the long competencies recognised by the Treaty lead time of energy investments, they for the organisation and the provision of stressed that the strategy should also be health services (according to Article 168 in line with long-term climate goals. on public health). (The Commission is planning to present e-health. The Presidency is keen to a 2050 energy roadmap in early 2011 to secure a watered down agreement here, provide a long-term vision for EU energy since member states have been policy). reluctant to commit to the costs The ministers stressed that a balance associated with the IT architecture must be struck between sustainable required to allow the full sharing of data. energy aspirations and economic Full details of the Spanish compromise growth. They added that cost-efficient can be accessed at: reporting and monitoring requirements, http://register.consilium.europa.eu/pdf/ as well as review mechanisms, would be en/10/st09/st09948.en10.pdf. necessary to adapt policies to changing circumstances while guaranteeing With agreement at the EPSCO Council, national governments the right to decide the legislative process would begin once on their energy choices. again. A second reading in the would likely take On the issue of grid interconnectivity, place in autumn 2010, possibly the Commission, during the informal preparing the way for agreement and Council, stated that the future grid adoption by the end of 2010. development strategy would be based on its proposal for an Energy Infrastructure Package, to be presented EU ENERGY STRATEGY 2011-2020 by the end of 2010.

This package will include a new Current status instrument to replace the Trans- The informal Energy Council provided EU European Networks for Energy (TEN-E), Energy ministers their first opportunity which defines the projects eligible for to discuss proposals for a European Community financing, to make the Energy Strategy for the next decade (31 networks pan-European and develop May 2010). smart grids.

What’s happening? In a related matter, the Commission’s The plan for an EU Energy strategy, DG Energy has published a ‘stock-taking’ originally to cover the years 2010 – document to accompany its consultation 2014, has been much delayed. on the future EU energy strategy (7 May 2010). Particular shortcomings include: Following discussion, centred on the

Europe 2020 strategy, it was agreed that • poor implementation of EU energy the new energy strategy should follow legislation the same broad time lines. • lack of interconnected and smart To meet the 2020 climate goals, energy grids ministers agreed that it would be • underachievement of energy- important to first implement existing efficiency potential BRUSSELS BULLETIN

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• weak co-ordination of external energy policy others as to the nature of reform. The • relatively low levels of the R&D countries that joined the EU since 2004 spending want to see an end to the current criteria for allocating direct subsidies to The consultation will run until 2 July farmers, which favour the established 2010. member nations.

Unless there is an increase in the overall COMMON AGRICULTURAL POLICY budget allocation then any rebalancing (CAP) between the old and the new member states would see a diminution in the Current status funds available to France in particular, Debate on the future of the EU’s CAP but also to all current recipients. post 2013 began in 2009. In previous budget negotiations the

Franco-German axis has held sway, with What’s happening? much of the serious discussions taking EU agriculture ministers debated reform place as a series of bilateral talks of the CAP at an informal Council between the two nations, while their meeting in Merida, Spain (1 June conclusions were presented as a fait 2010). The CAP remains the largest accompli. single component of the EU budget, representing around 40% of the annual The Commission is expected to publish spend. France is the largest recipient of its post 2013 CAP proposals by the end CAP monies. of 2010.

The informal discussions revealed the EU COHESION POLICY POST 2013 particular positions adopted by the EU

member states as they head into the Current status serious negotiations that will determine Member states have presented an the scale of the CAP post 2013. assessment of Europe's regional policy France: ‘We have to protect the budget (3 June 2010), which will feed into the we have now,’ Agriculture Minister Bruno discussions scheduled for the next Le Maire. Council summit (17 – 18 June 2010).

UK: ‘I could not support a conclusion What’s happening? that suggests the current levels of CAP Cohesion policy was enshrined in the EU support must be protected,’ Agriculture Treaties with the adoption of the Single Minister Caroline Spelman. European Act in 1986 to facilitate the Germany: ‘The CAP budget must remain redistribution between richer and poorer stable after 2013,’ Agriculture Minister regions in Europe.

Ilse Aigner. Cohesion policy for the period 2007- Whilst the UK’s stance on the CAP 2013 accounts for one third of the total budget represents one of the more EU budget. A full list of EU regions, and extreme positions, there is no consensus which forms of funding they are eligible between France, Germany and the for, is available at: http://ec.europa.eu/regional_policy/polic y/region/index_en.htm. BRUSSELS BULLETIN

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With the accession of ten new member What’s happening? states in 2004 and Bulgaria and Since the European Council last debated Romania in 2007, the development gap the Europe 2020 Strategy there has between the EU’s regions doubled, been much discussion in the various bringing many former recipients above Council groups, the European Parliament the 75% allocation threshold. and more broadly. Consequently, most beneficiaries of cohesion funds are now located in Of particular concern have been the Central and Eastern Europe. poverty targets, the EU social model and the method whereby the strategy will be A Commission report, authored by adopted by the Council. Fabrizio Barca, recommended further reform, claiming that current evidence Previous editions of the Bulletin have shows the policy’s impact to be broadly commented on concerns expressed by ‘unsatisfactory’ (6 May 2009). member states on the targets in education, and the absence of explicit The Heads of State & Government reference to regional policy & funding. Council of 17 – 18 June 2010 is expected to launch a debate on the Poverty targets future of EU regional policy. Reform is The fight against poverty is one of the expected to build upon what Barca five priorities of the Europe 2020 recognised as the strengths of current strategy. The Commission recommended Cohesion Policy, namely its flexibility reducing the number of Europeans living (e.g. in its ability to respond to the below the poverty line by 25%, thereby global economic crisis) while still being lifting 20m out of poverty. rooted in longer term objectives, the However, securing an agreement on the strategy of earmarking funds for specific specific indicators for measuring and targets and the annual review process. reducing poverty created friction both However it is hoped that the renewed within the Commission and between policy can go some way to overcoming member states. This conflict boiled over certain of the shortcomings of the at the March 2010 summit, when existing policy; the institutionalised member states questioned the EU’s legal delays in selecting particular projects, right to set targets on poverty at all and the bureaucracy, and issues of co- agreed only on a reference to ‘the financing and ‘leverage’. importance of poverty reduction and tackling social exclusion’, rather than specific targets. EUROPE 2020 STRATEGY The issue was discussed once more at

the Employment Social Policy, Health & Current status Consumer Affairs Council (7 June The general outline of the Europe 2020 2010). The main sticking point remains Strategy plan and the concept of the inability of member states to agree national targets were agreed at the last on how precisely poverty should be European Council (25 – 26 March measured, with each country advocating 2010). The next Council is expected to its own particular methodologies. endorse the detailed draft of the integrated policy guidelines (17 – 18 As a compromise, the Spanish June 2010). Presidency decided to drop the Commission's proposal to have a single BRUSSELS BULLETIN

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‘at-risk-of-poverty’ measurement, and on the inter-governmental approach instead offered three alternative used by its predecessor, the Lisbon methods: Strategy (3 June 2010). Verhofstadt • At-risk-of-poverty (i.e. people living also warned that the Parliament could with less than 60% of national block parts of the economic strategy if median income) the intergovernmental approach was to • Material deprivation (i.e. people who prevail. experience at least four out of nine He stated that: ‘The Parliament is defined deprivation situations) working on a common statement of all • People living in jobless households political groups on this. And we are (i.e. population defined in relation to discussing the idea that if the Council zero or very low work-intensity over simply copies the previous governance a whole year) to reflect a dynamic of the old strategy, we shall start to perspective of poverty linked to block a number of texts.’ situations of prolonged exclusion from the labour market Although the Parliament has no decision powers over the strategy as such, it The Presidency view was that adopting a could block its financing or some of its wider variety of measurements better seven flagship initiatives. This approach reflects the ‘multi-dimensional nature of appears to be fully endorsed by the poverty’ and the divergences between Socialist Group in the Parliament and member states. Countries will therefore partially endorsed by the Green/EFA be able to choose one of the three Group. indicators, depending on which they feel best suits their national needs. Verhofstadt is an advocate of the 'community method', where Once a member state has selected its supranational EU institutions like the preferred measurement, each will have Commission and the Parliament are to calculate the number of its citizens implicit in all developments. living ‘at risk of poverty or exclusion’.

(The year 2010 is the European Year for Combating Poverty and Social OTHER NEWS Exclusion). Musical chairs. The Commission has indicated its intention to divide the Social model Justice, Freedom & Security department A number of stakeholders have argued in two, creating new directorates- that the Europe 2020 strategy does not general (DGs) for home affairs and have a sufficiently strong social justice (so mirroring the split at the dimension at its heart, an issue coming Commissioner level) (2 June 2010). to the fore as a number of countries DG Justice will deal with civil and wrestle with austerity programmes. criminal justice, fundamental rights and citizenship, while DG Home Affairs will ‘The intra-governmental approach’ be responsible for immigration and , leader of the liberal asylum policy, migration and border (ALDE) group in the European security. The changes will come into Parliament has stated that the Europe effect on 1 July 2010. 2020 will fail if it continues to be based Sporting chance. The Commission has BRUSSELS BULLETIN

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launched a second call for proposals for trans-national projects to prepare the ground for the future EU sports programme (25 May 2010). The first call for proposals for ‘preparatory actions in the field of sport’, worth €4m, was launched on 15 May 2009. The second call will be worth some €2.5m in 2010.

The Commission is expecting public bodies and civil society organisations to submit proposals for projects that will identify and test suitable networks and good practices in three specific areas: (i) doping (€1m); (ii) social inclusion (€1m); and (iii) volunteering (€0.5m). The deadline for submission of proposals is 31 August 2010.

A draft Commission decision on an EU sports programme and budget, accompanied by a Communication, is expected to follow in November 2010.

Cross-border divorce. The European Parliament’s Legal Affairs Committee endorsed the proposal by 12 member states to utilise provisions on ‘enhanced co-operation’ to legislate in the areas of divorce and legal separation (3 June 2010).

‘Enhanced co-operation’ enables certain member states to legislate in the absence of unanimous agreement between the others).

The participating countries are Austria, Bulgaria, France, Hungary, Italy, Luxembourg, Romania, Slovenia, Spain, Germany, Belgium and Latvia. Political agreement between member states on the provision was secured at the Justice & Home Affairs Council (4 June 2010).

The matter will now be considered by the Parliament in plenary session (5 – 9 July 2010).

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UPCOMING

EVENTS &

MEETINGS

June July 8 ECOFIN (Finance) 1 Start of Belgian Council Presidency of the 9 – 10 Committee of the European Council Regions Plenary 2 Closing date of 13 Belgian elections consultation on EU 14 – 18 EP Plenary energy policy strategy 16 Belgium launches EU 2011 - 2020 Presidency work 5 – 8 European Parliament programme plenary session 17 – 18 European Council 8 - European Parliamentary 21 Environment Council recess 24 Transport, Telecommunications & Energy Council 28 – 29 Agriculture & Fisheries Council

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