Interview with Javier Solana Insight Pages 16-20 EUROPOLITIcs

The European affairs daily Thursday 19 March 2009 N° 3717 37th year

Focus European Council Louis Michel Member states urged to in Cuba implement stimulus By Sarah Collins isters, on 16 and 17 March, failed to reach a The EU’s Development Commissioner, deal on the list of projects or how to finance Louis Michel, intends to relaunch The European Council, on 19 and 20 them, but the Czech EU Presidency says cooperation between the EU and March, is to call on member states to rapidly it is “optimistic” that a compromise will be Cuba, which was officially reactivated implement measures promised under the brokered by 20 March. last October after being frozen for European economic recovery plan, especially Also under discussion is a review of the five years. The commissioner was in the budgetary stimulus, which the European EU’s €500 million Globalisation Adjust- Havana, on 17 and 18 March, where Commission has estimated will soon reach ment Fund. The Commission has proposed he held meetings with officials and 4% of GDP over the 27 member states. “It’s easing the rules under which EU member government leaders, in particular the not about a [budgetary] guarantee,” Com- states can apply for funding for workers Vice-Presidents of the Council of Min- mission President José Manuel Barroso said. made redundant as a result of economic and isters, Ricardo Cabrisas and Ulises “The effective disbursement of money from trade problems, but employment ministers Rosales (the latter is also agriculture the budget is another thing.” The Council came to blows over the plan, on 9 March. minister), Minister of Foreign Trade is to hear from member states on how banks The number one priority for the Com- Rodrigo Malmierca, and the newly and economies are faring with the recovery mission, employment, will be high on the appointed Foreign Minister, Bruno plan so far (see Europolitics 3716), and will agenda as Czech Prime Minister Mirek Rodriguez. push the European Parliament and EU min- Topolánek outlines preparations for a 7 May Discussions focused on food security, isters to agree on legislation still in the pipe- jobs summit in Prague. EU leaders will also research and development, economic line before Parliament breaks for the elec- be looking to strengthen their common cooperation and trade, the environ- tions – especially on credit ratings agencies, position ahead of the G20 meeting, on 2 ment, renewable energy, climate the solvency of insurers, capital requirements April. In an open letter to the Council, on change and reduction of disaster for banks and cross-border payments. 16 March, German Chancellor Angela risks. An assessment of national plans released Merkel and French President Nicolas Sar- Cooperation with the EU was sus- by Eurochambres, on 18 March, has found kozy wrote that the top priority for the EU pended in 2003 by Fidel Castro, who that there is too much emphasis on short- is to take the lead in building a new global was outraged over the sanctions taken term actions and not enough coordination. financial system. Reforming the Interna- at the time by the Europeans in protest “We will need a considerably improved level tional Monetary Fund is top of the agenda, against the arrest of 75 Cuban dissi- of coordination on economic recovery mea- and EU finance ministers, on 10 March, dents, 55 of whom are still incarcer- sures amounting to 1.5% of the EU’s GDP backed calls to double the fund’s resources ated. These highly symbolic sanctions, if they are to have the desired effect,” said to around US$500 billion. The draft con- which consisted of limiting high-level Secretary-General Arnaldo Abruzzini. clusions seen by Europolitics say that bilateral visits and systematically invit- However, talks on 19-20 March are more member states are ready to provide the IMF ing dissidents to events at the embas- likely to centre on the EU’s contribution to up front with a temporary boost of around sies of EU countries, were waived the recovery plan – the €5 billion of unspent US$75-100 billion. n last June to encourage Raul Castro to funds the Commission proposed in Janu- make progress towards democracy. ary should be used for internet and energy The draft conclusions are available at projects (see separate article). Foreign min- www.europolitics.info > Search = 246191

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Contents N° 3717 Top Stories Interview with Javier Solana Insight Pages 16-20 Economic & monetary affairs, Social affairs In Brief taxation Working Time Directive: EP gives Purchase of Euroports authorised...... 12 European Council: Member states Council “some homework to do”...... 8 Neste Oil joins ASFE...... 12 urged to implement stimulus...... 1 Plukon-Gilde JV okayed...... 12 Institutions European inventor 2009 nominees ...... 12 Business & competitiveness European Council: Summiteers Report on CAP simplification...... 12 Patents: Crisis triggers downturn to concentrate on crisis...... 9 in European patent filings...... 4 European Council: Leaders may discuss EU Agenda...... 13 Energy markets: RWE sale of appointment of next Commission head...10 transmission network made binding...... 4 Insight Enlargement Interview with Javier Solana: “One Sectoral policies Enlargement: Commission country cannot solve all the world’s Air transport: Passengers given challenges Merkel’s position...... 10 problems”...... 16 rough ride over lost luggage...... 5 Profile: A diplomat, Socialist, Air transport: Parliament and External relations Atlanticist and European...... 16 Council agree on Single Sky reform...... 5 EU/Mediterranean: Mideast Car industry/Parallel exports: Energy efficiency: Final out at heart of EMPA debate...... 11 Peugeot denies accusations of for incandescent light bulbs...... 6 EU/Mediterranean: Court of Auditors impeding competition...... 20 Agriculture: MEPs back religious gives mixed review on banking activities. 11 rights during animal slaughter ...... 6 EU/US: EU troika presses Obama to set Agricultural products: Operators voice more ambitious climate targets...... 12 misgivings over quality policy reform...... 7

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Patents Crisis triggers downturn in European patent filings

By Dafydd ab Iago all regions of origin in the second half EPO patent examiners conducting 120,900 of 2008. The mixed picture continues in examination procedures. This led to 59,800 The economic crisis looks set to hit the 2009,” she added. This slowdown is defi- successful European patents. Those unsuc- number of European patent applications. nitely linked to the economic crisis. There cessful either abandon their procedures Whilst the total number of patents contin- could even be an absolute decrease in after receiving a first opinion on the patent- ued to increase in 2008, the rate of increase 2009 and 2010, compared with previous ability of their invention or were refused a is slowing markedly, especially when com- years. “We’ll see the full extent to which patent by the EPO. pared with the final months of 2007. The the patent system has been effected by A positive piece of news is that the pro- European Patent Office (EPO) received the economic crisis only later this year,” portion of applications from the then 34 146,600 patent applications in 2008, com- said Rainer Osterwalder from the EPO. EPO member states reached 49.3% in pared to 141,400 in 2007. This year-to-year “Even if the crisis is over in 2010 for the 2008, compared to 48.5% in 2007. Ger- increase (+3.6%) may even slow to a com- real economy, this could still effect the many continued to lead with 18.2% of the plete halt as companies’ adjusted spending number of patents,” he said. applications (26,653), followed by France, plans finally hit patent applications. In the Another factor weighing down on patent with 6.2% (9,050 applications) and the midst of this patent downturn, the EPO applications is the increased rejection rate Netherlands, with 5% (7,289). Filings also notes a new milestone: the grant rate for for European applicants. “The practice increased significantly in several European European patents dropped under 50% for we introduced in 2004 of informing appli- states, such as Ireland (484 applications, the first time in 2008, to 49.5%. In 2007, cants early in the process of their prospects up 14.4%),) Poland (167 applications, the grant rate was 51%. of obtaining a patent visibly encourages up 60.6%), Slovenia (129 applications, EPO President Alison Brimelow notes a companies in many cases to abandon up 12.2%) and the Czech Republic (111 lower growth in applications from Japan, their applications,” said EPO President applications, up 15.6%). However, the and a clear downturn in filings originating Brimelow. “The strict application of pat- USA (25.5%) and Japan (15.7%) continued from South Korea. “Signals are mixed,” entability criteria by our patent examiners to maintain dominant positions as regards admits Brimelow. “There was an unusu- has led to more refusals.” The number of their share of the total number of European ally high fluctuation in filing activity from refusals increased by 42% over 2007, with patent applications in 2008. n

Energy markets RWE sale of transmission network made binding

By Dafydd ab Iago Neelie Kroes, the “very substantial” set of Commission, as the network can only be remedies offered by RWE will “fundamen- divested to purchasers which do not give The European Commission, on 18 March, tally” change German gas markets, bringing rise to prima facie competition concerns. made binding commitments by German gas more competition and customer choice. Jonathan Todd, the Commission’s company RWE to sell its entire Western RWE’s gas network in North Rhine-West- competition spokesperson, declined to German high-pressure gas transmission net- phalia and Lower Saxony represents some say which companies may in the future work. This formally closes the Commission’s 10% of the total 40,000 km of pipeline in offer similar commitments to sell their anti-trust proceedings against RWE that operation in Germany. “The divestment networks. However, there has been wide were opened in May 2007. The gas transport constitutes a clear-cut and lasting solution to speculation that Italian energy giant Eni network to be sold is around 4,000 kms long the concerns the Commission raised, ensur- may soon be charged with a breach of and is located in the German states of North ing that RWE will no longer be able to use EU anti-trust rules in the gas market. The Rhine-Westphalia and Lower Saxony. In a the control of its network to favour its own company has faced an investigation since statement, the company insisted that it has gas supply affiliate over its competitors,” said 2006 when the Commission carried out at consistently complied with all legal require- Kroes in a statement. inspection at ENI subsidiaries in Italy, Aus- ments and that the formal commitment to The Commission suspected RWE of a tria and Germany. Like E.ON and RWE, sell its network does not represent an admis- “possible” refusal to supply gas transmis- the Commission suspects actions by Eni sion of guilt. According to RWE, the decision sion services to other companies and of that may have been aimed at exclusion was made so as to avoid protracted litigation. lowering the margins of RWE’s down- of potential competitors from Italian gas If RWE were now to break its commitments, stream competitors in gas supply (‘margin supply markets, so-called ‘market foreclo- the Commission could fine RWE up to squeeze’). This forced ‘ownership unbun- sure’. The procedure against Eni was for- 10% of its total turnover without having dling’ also takes place under the condi- mally initiated in May 2007. French com- to prove any violation of EU competition tion that the Commission approves the panies GDF and EDF also face ongoing rules. German group E.ON offered similar proposed buyer of the network. The anti-trust probes. French gas group GDF, commitments as to its electricity network. future owner should have no incentives to for instance, is suspected of uncompetitive According to Competition Commissioner favour its own supply business, notes the practices in supply and imports. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3717 Thursday 19 March 2009 

Air transport Passengers given rough ride over lost luggage

By Isabelle Smets account depreciation of the value of the “At the end of this investigation, the goods since their purchase. In short, in Commission will assess whether any Transport Commissioner Antonio addition to being faced with the imme- improvements to the regulation are Tajani appears to be concerned by diate disadvantages of the temporary or required,” indicates a communication, recently published statistics on the delay permanent loss of their bags, passengers published on 17 March. and loss of luggage during air transport must also suffer financially. In this case, the European Commis- and has implied that “strong political sion is referring to Regulation 889/2002 intervention” could be necessary to put COMMISSION INVESTIGATion on air carrier liability in the event of an end to this phenomenon. Reacting to this information, Com- accidents, which lays down the rules At issue is a report published on 17 missioner Tajani announced an “investi- in terms of loss, delay or damage to March, by a British consumer organisa- gation” into the extent of the phenome- baggage. tion (AUC - Air Transport Users Coun- non and indicated that the Commission This regulation is not especially inno- cil), which indicates that airlines mis- is evaluating the effective application vative, since it copies the Community handled 42 million bags worldwide in of the Community regulation on the scheme on the international rules in 2007. The majority are found after a few matter. force (Montreal Convention). n hours or days, but 1.2 million of these bags are lost for good. Above all, the report highlights that air- Regulation 889/2002 tive. In the case of unchecked baggage, lines often try to minimise their respon- Baggage delays: In case of baggage the carrier is liable only if at fault. sibilities in these misfortunes and show delay, the air carrier is liable for damage A passenger can benefit from a higher themselves to be reluctant to compen- unless it took all reasonable measures liability limit by making a special dec- sate their passengers fairly. Complaints to avoid the damage or it was impos- laration at the latest at check-in and by received by the AUC demonstrate that sible to take such measures. The liabil- paying a supplementary fee. compensation for lost goods can be an ity for baggage delay is limited to 1,000 Complaints: If the baggage is dam- administrative nightmare - for example, SDRs (Special Drawing Rights, an inter- aged, delayed, lost or destroyed, the airlines often ask for an exact list of items national monetary instrument created passenger must write and complain to that were in their bag, accompanied by by the International Monetary Fund), ie the air carrier as soon as possible. In an original purchase invoice! - and that approximately 1,140 euro. the case of damage to checked bag- even the reimbursement of essential Destruction, loss or damage to gage, the passenger must write and items bought whilst passengers are with- baggage: The air carrier is liable for complain within seven days, and in the out their bag (toiletries, clothes) is not destruction, loss or damage to bag- case of delay within 21 days, in both a given. gage up to 1,000 SDRs. In the case of cases from the date on which the bag- When airlines agree to provide com- checked baggage, it is liable even if not gage was placed at the passenger’s pensation, it also appears that they often at fault, unless the baggage was defec- disposal. apply a discounted rate, taking into

Air transport Parliament and Council agree on Single Sky reform

By Isabelle Smets MEPs are due to follow suit in their longer along national borders. The Com- plenary session, on 25 March. mission could assign a coordinator, who An agreement has been reached on The main aim of the reform – very tech- would act at the request of the countries revising the single European sky legis- nical – is to improve the performance of concerned, in order to make it easier lation (revision Regulations 549/2004, the air traffic management system. The to put in place these FABs, which were 550/2004, 551/2004 and 552/2004 as well Parliament and the Council agreed on a already foreseen in the first Single Sky as Regulation 216/2008 on the European mechanism to monitor such performance package but had virtually gone unheeded Aviation Safety Agency). The EU’s Czech – cost reduction, fewer delays – which until now. It is worth noting that the Par- Presidency and representatives from the involves both member states and the liament did not ask for air services mar- European Parliament reached a compro- Commission. A key element of the com- kets (such as meteorology or monitoring) mise during an informal three-way meet- promise is that within no more than three to be opened up by the end of 2010 at ing, on 12 March. Representatives from years of the new regulation coming into the latest. Instead, the compromise fore- the 27 member states accepted this com- force, it wants to have in place ‘functional sees a feasibility study on opening up the promise in Coreper (Committee of Per- airspace blocks’ (FABs), which divide up market, to be done three years after the manent Representatives), on 17 March. the sky according to traffic flow and no regulation enters into force. n

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Energy efficiency Final out for incandescent light bulbs

By Dafydd ab Iago ing new energy efficiency requirements for sioner Andris Piebalgs took pains to say that lighting, part of the wider ecodesign process European homes will keep the same quality

The European Commission finally laid out by the 2005 directive. EU leaders of lighting, while saving energy, CO2 and adopted, on 18 March, two ecodesign regula- had originally called for the measure during money. In recent months, notably in the tions concerning household lamps as well as the 2007 spring European Council, reacting Germany press, there had been numerous office, street and industrial lighting products. to long-standing calls for the EU to catch up doubts raised as to the quality of lighting and This last step of the comitology procedure with measures taken elsewhere, notably in supposed negative environmental effects of brings to an end the long process of approv- the US State of California. Energy Commis- energy efficient light bulbs. The Commission is quick to claim that the two regulations will save almost 80 TWh of electricity by 2020, the Commission can adopt the measure. It roughly the electricity consumption of Bel- Background enters into force 20 days after publication gium or 23 million European households. The Ecodesign Directive (2005/32/EC) only in the Official Journal. The two regulations phase out incandes- established a ‘framework’ for the setting With European elections fast approaching, cent bulbs and conventional halogen bulbs of ecodesign requirements for energy- officials are keen to see as many proposals from September 2009 to September 2012. using products. Actual product require- pushed through as possible so as to avoid The most commonly used bulbs (60W) will ments are voted by a qualified majority delays as Parliament reconstitutes itself. remain on the market until September 2011. of member state experts in the Ecodesign The ERC was, however, recently unable to Until September 2012, 40W and 25W bulbs Regulatory Committee (ERC) followed by a reach agreement on refrigerators. Remain- can still be sold. The regulation, however, Parliament and Council scrutiny period of ing measures (televisions, stand-alone cir- does not cover ‘directional’ lamps, like reflec- three months. If Parliament and Council, culators in heating systems, dishwashers tors or spots, as a separate regulation is set for verifying whether the draft is in line with and washing machines as well as refrigera- adoption in 2010. n the provisions of the Ecodesign Frame- tors) are now expected to be voted together work Directive, raise no objections then in a mammoth session, on 31 March. Technical details are available at www.europolitics.info > Search = 246183

Agriculture MEPs back religious rights during animal slaughter

By Luc Vernet tives from these religions intensely lob- ers that the Commission should ensure bied elected European representatives, that meat and other animal products MEPs did not avoid the thorny warning them against a project which imported from non-EU countries meet debate on ritual slaughter, practiced risked calling into question freedom of European standards. by Jews and Muslims, during their dis- religion and fuelling intolerance. On It calls for inspections to be carried cussions on animal welfare rules at the contrary, animal welfare and veteri- out in abattoirs authorised to export to the time of slaughter. By approving, nary associations rallied to prevent any the European Union and attestations on 17 March, a consultation report by infringements to the principle of prior that EU standards have been met to be Janusz Wojciechowski (UEN, Poland), stunning from taking place. Further- supplied in addition to the health cer- the assembly’s Agriculture Committee more, an amendment anticipating the tificates already required for imports. clearly showed itself to be in favour of specific labelling of products of religious Furthermore, it highlights the need to maintaining religious rituals, authoris- slaughter was rejected. provide adequate EU funding for Euro- ing slaughter according to traditional To prevent unnecessary suffering, pean producers in order to compensate techniques, even if they run counter MEPs voted in favour of restraining for the competitive disadvantage they to the general rules on animal welfare, animals only if the person responsible would suffer. which provide that animals must be for stunning or killing it is ready to per- The Commission’s proposal aims to slaughtered only using methods that form his task, and for bleeding to start as replace the 1993 directive on the protec- ensure death instantly. soon as possible after stunning to ensure tion of animals at the time of slaughter Jewish and Muslim communities the animal does not regain conscious- by a new regulation to improve animal were alarmed by a clause anticipated ness before death. MEPs also amended welfare while allowing more uniform by the European Commission, which the preliminary draft with a view to application of EU rules in member left it up to each EU member state to eliminating certain administrative con- states. decide whether or not to do away with straints considered to be unnecessary, in The vote on the report is scheduled to this exemption to the rules on animal particular for small slaughterhouses. take place in the plenary session, from 4 welfare for ritual slaughters. Representa- The parliamentary report also consid- to 7 May in Strasbourg. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3717 Thursday 19 March 2009 

Agricultural products Operators voice misgivings over quality policy reform

By Luc Vernet She consequently intends to continue and imported goods. However, such her work and in May will present a labelling could be used case by case, as Agriculture Commissioner Mariann communication on quality that should is already being done for certain supply Fischer Boel presented an initial over- include the main guidelines suggested chains (laying hens). view, on 12 and 13 March, of the con- in the green paper: focusing the PDO The experts seem to have ruled out sultation on the future of agricultural and PGI mechanism on products with the idea of developing a mandatory product quality. In spite of the mis- high export potential; abolition of the logo certifying compliance with EU givings expressed by operators, she is TSGs (traditional specialities guaran- standards regardless of origin. determined to simplify and thoroughly teed), which would probably be replaced overhaul the working of the designation by regulated use of the term ‘traditional’; SIMPLIFICATION TO CONTINUE of origin mechanism, quality schemes and revision of marketing standards, an The simplification of marketing and marketing standards in force in the standards, which has already begun in Union. Mariann Fischer Boel: the fruit and vegetable sector, will be Commissioner Fischer Boel found continued. a large number of the contributions to “We really need to get The Commission’s experts note that the European Commission’s consulta- things moving” the geographical indication mechanism tion on agricultural product quality to should be maintained but that its admin- be “very conservative,” she explained at istrative burden needs to be reduced and a conference on this subject in Prague, that in some cases trademarks could be sponsored by the Czech EU Presidency. exercise that will probably be handed used. “You want PDOs [protected designa- over to operators in the sector. Adjustments should make it possible to tion of origin] and PGIs (protected geo- The commissioner also intends to iron out disparities in the implementa- graphical indication] to remain our flag- create a “functioning internal market for tion of legislation between the member ship quality schemes, not to be confused organically produced products,” involv- states and to give consumers concepts with trademarks. […] I have heard that ing the introduction of a new European and logos for geographical indications you are very much attached to the tra- logo. or designations of origin that are easier ditional specialities. I have my doubts, A few days before the conference, the to understand. but we will see how we can preserve the Commission’s services drew up an ini- The Commission confirms its intention advantages of the scheme while cutting tial summary of the 560 contributions to to create a single register of indications away some of the dead weight in the the consultation, highlighting the ways for wine, spirits and food products and system. […] You are also interested in forward they would recommend. possibly to use a two-tier system, with a maintaining marketing standards. You They hinted that they would continue registration mechanism in each member really are a conservative lot! We really their work to introduce a ‘Made in EU’ state and another at EU level targeting need to get things moving,” the commis- type of label allowing a distinction to be the most important designations with sioner told the conference participants. made between products made in Europe high export potential. n

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Working Time Directive EP gives Council “some homework to do”

By Marianne Slegers Although both the Parliament and the mise text, which would serve as the basis Council presented compromise propos- for the second conciliation round. No breakthrough has been achieved als, on 17 March, in order to bring nego- Following the 17 March meeting, on the revision of the Working Time tiations on the revision of the directive Rothe was critical of the European Com- Directive (2003/88/EC) at the first con- to a successful conclusion, the Concili- mission’s position on the issue. Sound- ciliation round, held on 17 March. The ation Committee meeting turned out to ing sceptical and disappointed, she said two parties, the European Parliament be inconclusive. All eyes are now on the that “We are not confident in the power and the Council, now have six weeks to next meeting, scheduled for 1 April. of the Commission to deal with this. So hammer out a deal. If they do, the EP Time pressure makes obtaining a far they haven’t given any clarification will vote on this agreement in plenary, compromise even more difficult, com- on their position”. on 5 May. If they fail to find middle mented the committee’s chair, EP The Commission, in turn, says that ground, the proposed review of the Vice-President Mechtild Rothe (PES, it is “fully engaged in the conciliation directive will be ‘dead’ (after five years Germany), after the meeting. The main process and playing its role as honest of difficult negotiations) and the Com- bones of contention are still the opt- broker”. According to the spokesperson mission will then have to consider its out, which would allow workers to work of Employment Commissioner Vladimir next steps. longer than 48 hours a week (on average Spidla, “Our position on all aspects of One option for the EU executive a year), on-call time (should this count the EP’s second reading amendments would be to draft a new legislative pro- as working time or as inactive time and was set out clearly in our opinion of 4 posal. A new proposal would have a how should this be rewarded?), compen- February. better chance of adoption if it treated satory rest (when and how should the Since then, we’ve had numerous con- the two principal moot points in the worker receive this) and the question of tacts with all sides, and made further current text - on-call time and the opt- multiple contracts (should the 48 hour suggestions for compromise amend- out provision - separately. Chances are working week be counted per contract or ments [cf the Commission’s suggestions that if a solution is found on how to per person?). The question of whether to of 3 March]. We will continue to play calculate on-call time (as working time keep the opt-out remains divisive. an active role and help both sides move or not), most of the member states - of According to Rothe, the Council towards a final compromise”. which about 14 make use of the opt-out did not put “real” compromises on the For now, the Commission appears to at the moment - will not need an opt-out table. “We are ready to compromise, remain the most optimistic: “We were anymore (because then the problem of but they are not.” The EP issued a ‘non- encouraged by the discussions which took exceeding the working hour limit would paper’, containing compromise propos- place last night - which were constructive be solved). als, which will now be examined by the and demonstrated willingness from all For now, both the EP and the Coun- member states. To quote Rothe, “We sides to show flexibility. We continue to cil express reserved optimism that a deal have given the Council some home- believe an agreement is possible before is achievable. But how exactly, nobody work to do”. The Czech EU Presidency May and will continue to do everything knows. is now expected to draft a new compro- we can to make it happen”. n

www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3717 Thursday 19 March 2009 

European Council Summiteers to concentrate on crisis

By Célia Sampol work at around 16:00 with the traditional also present a review of the progress of rati- exchange of views with the European Par- fication in his country, where the Senate The spring European Council opens on liament’s President, German Conserva- still has to vote. 19 March in Brussels and will continue tive Hans-Gert Pöttering. He will present until the early afternoon of 20 March. The his institution’s position on the main items Energy and climate before dinner economic and financial situation remains on the agenda. Pöttering may also bring Immediately afterwards, the leaders will the crucial point of the negotiations, up the European elections in June to tackle the subject of energy security and followed by energy and climate change. remind leaders that they will have to take the challenges of climate change in the With Czech Prime Minister Mirek the outcome into account in the choice context of preparation of the Copenhagen Topolánek chairing, the 27 heads of of the future Commission president. The conference at the end of 2009 (see Europol- state and government will begin their question of the date of appointment of the itics 3716). The discussion will then turn to head of the EU executive could be dis- the number one subject of this European cussed informally during the summit (see Council, namely the economic and finan- Five billion euro plan separate article). cial situation. The leaders will review the According to the Czech EU Presi- As he did at the December 2008 Euro- progress made on strengthening the stabil- dency, the General Affairs Council, pean Council, Pöttering will remain ity, supervision and transparency of finan- on 16 March, demonstrated that “we present for the deliberations on the first cial markets and the next steps, in particular are on the right track” and that a item on the agenda, namely the report by the G20, on 2 April in London (see separate compromise “is close” on both the Ireland’s Prime Minister Brian Cowen on article). They will also evaluate implemen- financial arrangements for the 5 bil- the progress of negotiations on ratification tation of the European economic recovery lion euro plan and the list of projects. of the Lisbon Treaty. A diplomatic source plan, especially the sensitive issue of the The Presidency is “optimistic” and commented that “we are not expecting €5 billion from the EU budget to finance considers the compromise proposal substantive institutional debates”. The innovative projects (see box). to be “balanced” and a good basis Taoiseach is expected simply to point out Debate is likely to continue during for agreement (see Europolitics that he is in the process of negotiating dinner or even late into the evening. In par- 3715). “This is a collective exercise with the Czech EU Presidency the ‘legal allel, the foreign ministers will hold their and a failure would be a failure for guarantees’ that could encourage the Irish own dinner, during which they will discuss all of Europe,” notes the Presidency. voters to approve the treaty in the second the situation in Afghanistan and Pakistan. A diplomatic source observed that a referendum. He is not likely to announce On 20 March, the leaders will approve consensus is “not certain,” however. a date for the consultation at this stage, the Eastern Partnership initiative (3713) “The procedures are complicated and since the December European Coun- and could review EU-US relations before there is no unspent money in the EU cil conclusions mention a referendum adopting their final conclusions. n budget. Everyone is going to have to before the end of the Commission’s term contribute.” of office, on 31 October. That will have to The draft conclusions are available at wait for the June summit. Topolánek will www.europolitics.info > Search = 246182

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Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info 10 Thursday 19 March 2009 N° 3717 EUROPOLITICS

European Council Leaders may discuss appointment of next Commission head

By Célia Sampol Nice, while appointing the rest of the Com- would support José Manuel Barroso as presi- mission in autumn under the Lisbon Treaty dent even though he is a Conservative. Por- The EU’s heads of state and government (to keep from having to reduce the number tugal and Spain, which both have Socialist could discuss, on 19 March in Brussels, of commissioners). governments, seem to defend Britain’s point either informally or in bilateral meetings, Since then, France seems to have had a of view because neither would oppose Bar- the sensitive matter of the date of appoint- change of heart and now finds it more “pru- roso’s reappointment, out of Iberian solidar- ment of the future European Commission dent” to await the Irish referendum before ity. Germany could have reservations about president. naming the Commission’s leader. Doing so appointing the president in June without a Opinions are still divided on the issue. would also allow agreement on a ‘package’ clear legal basis. The EU could end up straddling two trea- after ratification of the Lisbon Treaty, which So the question is whether, at the Euro- ties, Nice and Lisbon. The December 2008 would include the head of the executive, pean Council on 19 March, the leaders will EU summit conclusions state that the pro- the high representative for the Common decide to maintain their December conclu- cess of appointing the future Commission, Foreign and Security Policy and the perma- sions or to postpone the appointment of the in particular its president, should begin nent European Council presidency. A better head of the EU executive until after the Irish “without delay” after the European elec- political, geographical and gender bal- referendum to avoid any negative repercus- tions in June. This clarification was added ance could also be struck among the three sions. The latter case would be tantamount by the then French EU Presidency, which positions. to accepting the possible prolongation of made no secret of its support for the reap- the present Commission’s mandate, which pointment of José Manuel Barroso. An early Ireland’s turn to speak ends on 31 October. Ireland is probably appointment would work in Barroso’s favour Not all the member states agree, however, in the best position to say whether a presi- in the context of the crisis. At the time, and firstly the United Kingdom. Labour dential appointment in June would have French head of state Nicolas Sarkozy did Prime Minister Gordon Brown wants to consequences on the referendum. n not bring up the legal problem that could be keep to the December conclusions and raised by the appointment of the Commis- name the Commission president in June. The draft conclusions are available at sion president in June under the Treaty of He stated clearly, on 16 March, that he www.europolitics.info > Search = 246196

Enlargement Commission challenges Merkel’s position

By Joanna Sopinska German Chancellor Angela Merkel’s call talks. Rehn said he presented a compro- for a pause in the enlargement process fol- mise to the two countries, which are now The European Commission, which is lowing the forthcoming accession of Croatia studying it. “It is still work in progress. I responsible alongside the member states to the EU, in 2010 or 2011. Merkel said the don’t want to go into details regarding a for carrying out EU membership talks, has EU needed a “consolidation phase” before possible agreement,” he explained. challenged the German CDU party’s call it added other new members from the West- Following the meeting, Croatian For- for a temporary freeze on the enlargement ern Balkans. Turning to Turkey, which since eign Minister Gordan Jandrokovic said process, which it presented in its manifesto 2005 has been conducting accession talks that Rehn’s proposal included signing a for this June’s European Parliament elec- with the EU, Merkel proposed ‘enhanced joint statement “affirming that the border tions. “We can not take any sabbatical from partnership’ instead of full membership (see is not being prejudged, that no document our invaluable work for stability and societal Europolitics 3716). or action after 25 June 1991 prejudges the progress in the Western Balkans, which is The enlargement process serves, accord- Croatian-Slovene border in any way”. An essentially provided by the European per- ing to Rehn, as “an essential driver of agreement on that matter between Croa- spective,” Enlargement Commissioner Olli reforms and an anchor of stability in tia and Slovenia could allow the current Rehn said, on 17 March, at a press confer- South-Eastern Europe”. It can not there- blockage of Zagreb’s accession talks to be ence in Brussels. The EU is going through fore be stopped without causing negative lifted, Jandrokovic suggested. “a very challenging political context [...] with effects – also on the EU. However, commenting on the document, the financial crisis, the economic recession, Slovenian Foreign Minister Samuel Zbogar the forthcoming European elections and Compromise proposal said that such a statement would not be the ratification of the Lisbon Treaty”. How- Rehn spoke after a second round of talks enough for lifting the blockade. “We will ever, these should not become an excuse for with foreign ministers from Slovenia and unblock the negotiations only when the cir- the EU to put enlargement on hold, Rehn Croatia on the modalities of the Commis- cumstances change and when that is part of argued. “The EU is able to handle several sion-led international mediation on the a broader agreement. The statement in itself things at the same time,” he added. border dispute between those two coun- would not change the circumstances, we Rehn’s statement came in reaction to tries that is blocking Zagreb’s EU entry need a broader agreement,” Zbogar said. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3717 Thursday 19 March 2009 11

EU/Mediterranean Mideast at heart of EMPA debate

By Sophie Petitjean - equally distributed on each side of the intra-Palestinian reconciliation. Parliamen- Mediterranean, ie 49 MEPs and 81 depu- tarians also called for a freeze on all settle- The situation in the Middle East was the ties appointed by the parliaments of the 27 ments, including those already in existence. main focus of debate at the fifth annual ple- member states of the EU as well as 130 rep- They issued a fresh appeal for the liberation nary session of the Euro-Mediterranean Par- resentatives from the national parliaments of the members of the Palestinian Legisla- liamentary Assembly (EMPA) in Brussels. of the Mediterranean partners1, adopted a tive Council as well as the soldier Gilad With three new member countries (Mauri- whole series of recommendations addressed Shalit, a corporal in the Israeli army illegally tania, Albania and Monaco), EMPA could to ministers of the Union for the Mediter- detained in Gaza for almost three years. also be given observer status on the execu- ranean. Particularly communicative on the “We want 2009 to be the year of solutions tive bodies of the Union for the Mediterra- subject of the Middle East, the assembly for the Middle East,” said Abdel Hadi al- nean, considering the agreement given by adopted a unanimous recommendation on Majali, speaker of the Jordanian Parliament, France’s Foreign Affairs Minister, Bernard the subject, with the exception of the rep- who becomes the assembly’s leader for one Kouchner, during an extraordinary meeting resentative of the Israeli Knesset, who voted year, until March 2010. On the Gaza con- in the margins of the plenary session. From against. In this, the assembly supports the flict, EMPA declared itself in favour of an 15 to 17 March, the 260 elected members Arab peace initiative and efforts to achieve independent inquiry on violations of inter- national humanitarian law and called on Israel to shoulder its responsibilities and Albania, Mauritania and the Principality of contribute to the reconstruction of the area. Background Monaco having officially joined the assem- Other recommendations relating to the Created in 2003, EMPA is the parliamen- bly during the plenary session. Mauritania economy, energy and the situation of women tary component of the Barcelona Process, will have ten representatives, while Albania were also adopted by consensus. n launched in 1995. It currently has 260 and Monaco will have two seats each. In the members, 130 from each side of the Medi- long term, Croatia, Bosnia and Montenegro terranean. But this number could increase, should also join the assembly. (1) Algeria, Egypt, Jordan, Israel, Lebanon, Morocco and the Palestinian Authority

EU/Mediterranean Court of Auditors gives mixed review on banking activities

By Sophie Petitjean port for the reform of economic and social On the attainment of project objectives, structures in the partner countries. the Court observed that technical assistance The European Commission did not carry With a view to determining whether proj- projects had on the whole reached their out its own monitoring of banking activities ects were being monitored appropriately by goals. covering the Mediterranean in the frame- the Commission and the EIB, and whether The conclusions were less positive for work of the MEDA programme (1996- they had attained their objectives, the Court projects benefiting from low-interest loans 2006) and relied exclusively on the Euro- of Auditors analysed for more than a year and risk capital transactions: their objectives pean Investment Bank. The EIB’s follow-up (September 2006 to November 2007) the were only partially achieved. On the one work was likewise inadequate until 2005. three types of banking activities financed by hand, projects receiving low-interest loans In addition, only one type of banking activ- the EU budget and implemented by the EIB. were often behind schedule and sustainabil- ity has attained its objectives. These are the These three activities, which at end 2007 ity criteria were not always respected. On conclusions of a special report presented by represented the equivalent of €1 billion, are the other, risk capital transactions, the main the EU Court of Auditors, on 18 March, on technical assistance by the FEMIP (Facil- objective of which was to bring together ben- ‘Banking activities covering the Mediterra- ity for Euro-Mediterranean Investment and eficiaries from the EU and from Mediterra- nean basin in the framework of the MEDA Partnership), low interest rates on certain EIB nean third countries, “principally involved programme and earlier protocols’. loans and risk capital transactions. only partners from non-EU countries […] “We hope this report will help the budget On the first point, study of monitoring by and presented mixed results”. authority, the Commission and the EIB to the Commission and the EIB, the Court “The Commission’s response does not assess more accurately the strengths and weak- notes that the Commission relied entirely contradict our conclusions. As it pointed nesses of the MEDA programme,” declared on the work of the EIB and did not carry out, however, some of our recommenda- Igors Ludborzs, member of the EU Court out its own monitoring, even though, until tions have already been implemented by the of Auditors. The MEDA regulations, which 2005, the EIB’s follow-up was inadequate. EIB,” Igors Ludborzs told the press. n have been replaced by the new European The report also concludes that coordination Neighbourhood and Partnership Instrument was lacking between the EIB and the Com- The report is available at (ENPI), were used until 2006 to provide sup- mission, especially at the local level. www.europolitics.info > Search = 246188

Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info 12 Thursday 19 March 2009 N° 3717 EUROPOLITICS

EU/US EU troika presses Obama to set more ambitious climate targets

By Brian Beary in Washington tection Agency Administrator Lisa Jackson, meet more ambitious mid-term targets. Obama’s Special Assistant on Climate and The United States needs to set more ambi- Energy Carol Browner, US Special Envoy CAP AND TRADE BILL MOVING tious mid-term targets for tackling climate on Climate Change Todd Stern, and Sena- The delegation also urged the US to change, a top-level EU environmental dele- tor John Kerry, chairman of the US Commit- quickly enact a cap and trade scheme - one gation, in Washington from 15-17 March, has tee on Foreign Relations. which can be linked to the EU’s Emission stressed. While US President Barack Obama “There is a completely different mental Trading Scheme. Minister Bursik said he has pledged to reduce US greenhouse gas climate in Washington today,” Carlgren expected the Chairman of the House of Rep- emissions to 1990 levels by 2020, Czech said afterwards - sentiments echoed by resentatives’ Energy and Commerce Com- Environment Minister Martin Bursik from Commissioner Dimas, who said “I am mittee, Henry Waxman, to deliver some- the EU Presidency insisted, on 17 March, going back to Europe much more encour- thing “even more ambitious” than Obama’s “we want the US to go lower than that”. aged”. Carlgren argued that if the US was pledge of getting to 1990 levels by 2020. The pressure is being piled on as the new more ambitious with its mid-term target Minister Carlgren, who will preside over US administration continues formulating (ie greenhouse gas reductions by 2020), it the EU Environment Council from 1 July, its position for the ongoing United Nations could facilitate a deal in Copenhagen by said “we have heard good signs” that action talks, due to culminate in a new climate bringing China on board. Dimas said he on the cap and trade bill in Congress would change treaty in Copenhagen, in December expected the US to make reductions “com- begin by summer. “The more the US can 2009. With Obama’s ‘green team’ still find- parable” to the 30% decrease from 1990 deliver by Copenhagen, the more progress ing its feet, that position paper is unlikely to levels that the EU has promised to strive for we can have,” he said, adding “don’t under- be ready by the next UN negotiating session if a deal is struck at Copenhagen. Obama’s estimate the importance of setting ambitious in Bonn, from 31 March to 8 April. long-term target – an 80% cut by 2050 targets”. Asked about the role that carbon Bursik was accompanied by EU Environ- – is in “absolute harmony” with the EU, capture and sequestration technology should ment Commissioner Stavros Dimas and Dimas added. Bursik said that if the US have in slashing emissions, Carlgren said “we Swedish Environment Minister Andreas were to transfer technologies for reducing need it as a supplement but it will not be the Carlgren. They met US Environmental Pro- emissions to developing countries, it could main path to the future”. n In Brief

Purchase of Euroports authorised infrastructure. According to ASFE, synthetic Report on CAP simplification The European Commission granted fuels made from biomass can help combat A report published by the European clearance, on 17 March, to the acquisition global warming as they offer up to 90% CO2 Commission, on 18 March, takes stock of joint control of BBI Europe Holdings emissions cut potential when compared with for the first time of the simplification of (Lux) S.à.r.l. (Euroports, Luxembourg) petroleum derived fuels. (DAI) the Common Agricultural Policy (CAP), by Antin Infrastructure Partners FCPR a process that was launched in 2005. It (France), BBEIF LH Sub 06 S.à.r.l. Plukon-Gilde JV okayed concludes that the Commission is well on (Luxembourg) and BBI Europe Holdings The European Commission granted the way to meeting its target of reducing (Malta II) Limited (Luxembourg). clearance, on 17 March, to the acquisition of the administrative burden in agriculture Euroports operates ports, cargo handling sole control of Plukon Royale B.V. by Gilde by 25% between now and 2012. “We’ve and related services in Europe and Asia. Buy Out Fund III, both of the Netherlands. been making great progress with our Gilde is active in private equity investments. efforts to make the CAP simpler and Neste Oil joins ASFE Plukon is engaged in the slaughtering of more user-friendly,” said Mariann Fischer The Alliance for Synthetic Fuels in Europe poultry and processing of poultry meat. Boel, commissioner for agriculture and (ASFE) gained a new member, on 18 rural development. “The changes we March, at the World Biofuels Market European inventor 2009 nominees have made will also reduce the burden to in Brussels. Finish multinational Neste The European Patent Office and the farmers by hundreds of millions of euro. Oil joined the alliance of automotive, European Commission publicly announced, At a time of economic difficulties, this technology and fuel supply companies on 18 March, the twelve nominees for this is a real bonus” (see Europolitics 3715). focused on synthetic fuels produced from year’s European inventor prize, an initiative The report is available at ec.europa.eu/ biomass (BTL) or natural gas (GTL) launched in 2006. The winners will be agriculture/simplification/index_en.htm feedstock. Synthetic fuels can be used announced in Prague, on 28 April. See in existing diesel engines and fuelling www.epo.org/about-us/events/epf2009.html www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3717 Thursday 19 March 2009 13

EU Agenda

Thursday 19 March Albania 5th EUA Convention, Facing Global 9:00-19:00 Albania Challenges: European Strategies Contact: Thomas Dudrap, Press Service, for Europe’s Universities European [email protected], (32-2) 18-21 March, Prague 28 44524 (BXL), (32) 0498.98.32.84 Organizers of the Event: Charles University Parliament Prague; Ministry of Education, Youth and The President’s diary 16th EP-Albania Interparliamentary Sports 13:00-18:30 Brussels Meeting www.prague-network.org n 13:00 EPP Summit 12:30-18:30 Tirana, Albania n 17:00 Council meeting of Heads of State A delegation of MEPs travels to Tirana for and Governments the EP-Albania Interparliamentary Meeting n Timing to be confirmed - Press under the joint chairmanship of Arenca European Conference at the Council meeting Trashani, Chair of the Albanian Delegation for relations with the European Parliament Commission Parliamentary committees and Doris Pack (EPP-ED, DE), Chair of Travel and visits Committee on Budgetary Control the European Parliament delegation for n Mr Jacques Barrot receives Mr Miklos 9:00-12:30 Brussels, JAN 4Q2 relations with the countries of South East Marschal, Transparency International’s n European Court of Auditors’ Special Europe. Director for Europe and Central Asia Report 10/2008 ‘EC Development The MEPs will also meet senior n Mrs Margot Wallström meets with PES Assistance to Health Services in Sub- government ministers and the President of leaders Saharan Africa’ - Consideration of working Albania, Bamir Topi. n Mr Siim Kallas delivers a speech at the document in the presence of the Member Contact: Thomas Dudrap, Press Service, Annual General Meeting of the European of the Court responsible, Jan Kinst - Report [email protected], (32-2) Public Affairs Consultancies’ Association by Bart Staes (Greens/EFA, BE) 28 44524 (BXL), (32) 0498.98.32.84 (EPACA) (Rue d’Italie, 9) n European Court of Auditors’ Special n Mr Antonio Tajani participates in the Report 12/2008 ‘The instrument for conference organised by the UETR (Union Structural Policies for Pre-accession (ISPA), Européenne des Transporteurs Routiers) in 2000-2006’ - Consideration of working Council of collaboration with the European Economic document in the presence of the Member and Social Committee on the future of the Court responsible, Massimo Vari Ministers challenges for road hauliers in the internal - Report by Bogusław Liberadzki (PES, PL) European Council market n European Court of Auditors’ Special 19-20 March, Brussels n Mrs Viviane Reding delivers opening Report 1/2009 ‘Banking measures in the speech together with Mr Martin Ríman, Mediterranean area in the context of the PIN Talk (exchange of best practises Minister for Industry and Trade of the Czech MEDA programme’ - Presentation by in the area of road safety) Republic at the High Level Meeting, ICT the member of the Court responsible, Prague for Energy Efficiency (Brussels) Igors Ludborzs - Report by Rodi Kratsa- Organsers of the Event: European Transport n Mrs Viviane Reding receives Mr Lars Tsagaropoulou (EPP-ED, EL) Safety Council (ETSC), Transport Research Nyberg, CEO Telia Sonera Group 15:30-18:30 Brussels, JAN 4Q2 Centre, Ministry of Transport n Mrs Viviane Reding receives Mr Contact: Ing. Josef Mikulík - j.mikulik@ Christophe Brand, CEO Sunrise Committee on Industry, Research cdv.cz Communications AG and Energy n Mr Stavros Dimas receives the Archbishop 9:00-12:30 Brussels, PHS 3C50 Conference on Audiovision and of Cyprus Chrysostomos II Copyright: ‘The Responsibilities of n Mr Ján Figel’ attends the opening Delegations Content Providers and Users’ ceremony of the 5th EUA Convention of MEPs to the World Water Forum 19-20 March, Prague European Higher Education Institutions + 9:00 - 19:00 Turkey www.media-conference.cz press conference with the EUA President Contact: Thomas Dudrap, Press Service, and Rector of the Charles University [email protected], (32-2) EU-LAC Senior Officials’ Meeting (Charles University, Prague) 28 44524 (BXL), (32) 0498.98.32.84 18-20 March, Argentina n Mrs Neelie Kroes meets Committee of

Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info 14 Thursday 19 March 2009 N° 3717 EUROPOLITICS

the Dutch Parliament on the Broadcasting - Infringement of Article 1 and Article 5(3) Decision C(2001)2931 final of 2 October Communication and (4) of Council Directive 85/73/EEC 2001 relating to a proceeding under Article n Mrs Mariann Fischer Boel receives Mr of 29 January 1985 on the financing of 81 of the EC Treaty and Article 53 of the Jos Van Campen and Mr Johann Marihart, health inspections and controls of fresh EEA Agreement (Case COMP/E-1/36.756 presidents of CIBE/CEFS (Confédération meat and poultrymeat (OJ 1985 L 32, p. - Sodium Gluconate) and, in the alternative, internationale des betteraviers européens / 14), as amended by Council Directive for a reduction in the fine imposed on the Comité européen des fabricants du sucre) 97/79/EC of 18 December 1997 (OJ 1997 applicant n Mrs Benita Ferrero-Waldner meets Mr L 24, p. 31), and of Article 27(2), (4) and Advocate-General: Trstenjak Viktor Andriyovych Yushchenko, President (10) of Regulation (EC) No 882/2004 of the n Judgment C-275/07 Commission v Italy of Ukraine European Parliament and of the Council of Own resources of the Communities n Mr Charlie McCreevy delivers a speech 29 April 2004 on official controls performed Failure of a member state to fulfil obligations in a conference ‘SMEs in the European to ensure the verification of compliance - Infringement of Articles 8 and 11 of Internal Market’ (Katowice, Poland) with feed and food law, animal health and Council Regulation (EEC, Euratom) No n Mr Andris Piebalgs takes part in the Euro animal welfare rules (OJ 2004 L 165, p. 1), 1552/89 of 29 May 1989 implementing – Arab Gas Forum (Paris) as amended by Commission Regulation Decision 88/376/EEC, Euratom on the n Ms Meglena Kuneva in Bulgaria (19-21): (EC) No 776/2006 of 23 May 2006 (OJ 2006 system of the Communities’ own resources participates in the Europe Direct Center L 136, p. 3) - National rules on the health (OJ 1989 L 155, p. 1) and Article 6(2)(a) Inauguration Ceremony; delivers a joint inspection of meat also allowing, over and thereof, replaced as from 30 May 2000 by public lecture with Ms Vassiliou (Sofia, above the Community fee, the collection of Council Regulation (EC, Euratom) No 19). Delivers a speech at the Conference an additional specific fee equivalent to the 1150/2000 of 22 May 2000 implementing ‘Modern Consumer in the Digital World’; costs of bacteriological examinations of fresh Decision 94/728/EC, Euratom on the participates in a public discussion with meat system of the Communities’ own resources citizens of Vratsa (20). Participates in a Advocate-General: Poiares Maduro (OJ 2000 L 130, p.1) - Accounting rules public discussion with citizens of Montana; n Judgement C-309/07 Baumann - Default interest due for late payment of own meets with Mr Zlatko Jivkov, Mayor of Agriculture resources Montana; participates in a public discussion Reference for a preliminary ruling Advocate-General: Trstenjak with citizens of Vidin (21) - Hessischer Verwaltungsgerichtshof 10:30 n Mr Leonard Orban visits Estonia: meeting (Germany) - Interpretation of Article 5(3) n Hearing C-567/07 Woningstichting Sint with the Members of the Parliament and points 1, 2(a), 4(a) and 4(b) of Chapter Servatius Cultural Affairs’ Committee; opening I of Annex A to Council Directive 85/73/ Free movement of capital address at the conference on the economic EEC of 29 January 1985 on the financing Preliminary ruling - Raad van State - challenges on ‘the role of multilingualism of health inspections and controls of fresh Interpretation of Articles 56 EC, 58 EC, in the success of European SMEs’; meeting meat and poultrymeat (OJ 1985 L 32, p. 14), 86(2) EC, 87 EC and 88 EC - National with the Minister of Population, Ms Urve as amended by Council Directive 96/43/ legislation which, in the absence of prior PALO; the Minister of Education and EC of 26 June 1996 (OJ 1996 L 162, p. 1) authorisation by the Minister concerned, Research, Mr Tõnis Lukas and with the - Legislation making a distinction between prohibits cross-border activities on the part of Minister of Culture, Ms Laine Jänes slaughtering units in large establishments an undertaking required by statute to operate n Mrs Androulla Vassiliou in Bulgaria: and other slaughtering activities, adjusting in furtherance of the housing policy of the meets with Dr Evgeni Zhelev, Health the rate of fees on a diminishing scale member state in question - Housing policy Minister; discussion with young people and according to animal types and increasing fees and the public interest youth organizations on the Health initiatives for slaughtering carried out outside normal in the EU; attends presentation of the Heath hours Second Chamber Web Portal of the European Commission Advocate-General: Poiares Maduro 9:30 at the Sheraton Hotel Balkan (Sofia); holds n Judgement C-10/08 Commission v n Judgement C-256/07 Mitsui & Co. a Press Conference at the Sheraton Hotel Finland Deutschland Balkan (Sofia); meets with Valeri Tsvetanov, Taxation Customs union Minister of Agricultural and Food at the The text is not available in English Reference for a preliminary ruling - Bulgarian Ministry of Agricultural and Food Advocate-General: Sharpston Finanzgericht Düsseldorf - Interpretation n Judgment C-510/06 P Archer Daniels of Article 29(1) and (3)(a) of Council Midland v Commission Regulation (EEC) No 2913/92 of 12 October Competition 1992 establishing the Community Customs Court of Justice Appeal against the judgment of the Court of Code (OJ 1992 L 302, p. 1), and Article First Chamber First Instance (Third Chamber, Extended 145(2) and (3) of Commission Regulation 9:30 Composition) of 27 September 2006 in Case (EEC) No 2454/93 of 2 July 1993 laying n Judgement C-270/07 Commission v T-329/01 Archer Daniels Midland Co. v down provisions for the implementation of Germany Commission of the European Communities, Regulation (EEC) No 2913/92 (OJ 1993 Agriculture by which the Court dismissed an action for L 253, p. 1), as amended by Commission Failure of a member state to fulfil obligations annulment of Articles 1 and 3 of Commission Regulation (EC) No 444/2002 of 11 March www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3717 Thursday 19 March 2009 15

2002 (OJ 2002 L 68, p. 11) - Validity of Fourth Chamber Failure of a member state to fulfil obligations those provisions in so far as they also apply 9:30 - Failure to adopt, within the period retroactively to imports in respect of which n Judgement C-77/08 Dachsberger & prescribed, the provisions necessary to give the customs declaration was accepted Söhne effect to Commission Directive 2006/73/EC before the entry in to force of Commission Agriculture of 10 August 2006 implementing Directive Regulation (EC) No 444/2002 - Taking into Preliminary ruling - Unabhängiger 2004/39/EC of the European Parliament account, in the context of the determination Finanzsenat, Außenstelle Graz (Austria) and of the Council as regards organisational of the customs value of imported goods, - Interpretation of the second sentence of requirements and operating conditions for payments made by the seller pursuant to the second subparagraph of Article 11(1) investment firms and defined terms for the obligations under a guarantee laid down in of Commission Regulation (EEC) No purposes of that directive (OJ 2006 L 241, p. the contract of sale to reimburse the buyer 3665/87 of 27 November 1987 laying down 26) the costs incurred in providing services under common detailed rules for the application of Advocate-General: Poiares Maduro the guarantee which the latter had to provide the system of export refunds on agricultural n Judgement C-245/08 Commission v to its own customers as a result of defective products (OJ 1987 L 351, p. 1), as amended Portugal goods by Commission Regulation (EC) No Freedom of movement for persons Advocate-General: Mazák 2945/94 of 2 December 1994 amending Failure of a member state to fulfil its n Hearing C-158/08 Pometon Regulation (EEC) No 3665/87 laying down obligations - Failure to have adopted or Free movement of goods common detailed rules for the application of communicated, within the time-limit Interpretation of Articles 114, 117(c), 202, the system of export refunds on agricultural prescribed, the measures necessary to comply 204, 212 and 240 of Council Regulation products, as regards the recovery of amounts with Council Directive 2006/100/EC of 20 (EEC) No 2913/92 of 12 October 1992 unduly paid and sanctions (OJ 1994 L November 2006 adapting certain Directives establishing the Community Customs Code 310, p. 57) - Concept of the application for in the field of freedom of movement of (OJ 1992 L 302, p. 1) and of Article 13 of the differentiated part of the export refund persons, by reason of the accession of Council Regulation (EC) No 384/96 of - Imposition of the sanction in the event Bulgaria and Romania (OJ 2006 L 363, p. 22 December 1995 on protection against of incorrect designation with regard to the 141) dumped imports from countries not country of destination featuring in the export Advocate-General: Mengozzi members of the European Community declaration (OJ 1996 L 56, p. 1) - Imports into the Advocate-General: Mazák Community customs territory of unwrought n Judgement C-489/06 Commission v magnesium originating in China - Imports Greece Committee of the through a company having its registered Company law office in a non-member country and Failure of a member state to fulfil obligations Regions not subject to anti-dumping measures - Infringement of Article 8(2) of Council Conference - Processing of the magnesium, under the Directive 93/36/EEC of 14 June 1993 n Developing a Low Carbon Economy inward processing procedure, by a company coordinating procedures for the award of Location: Committee of the Regions, JDE- with its registered office in a member state public supply contracts (OJ 1993 L 199, 51, between 14:00-17:00 and connected to the company in the non- p. 1) and of Articles 17 and 18 of Council member country - Re-export in the form of Directive 93/42/EEC of 14 June 1993 compensating products to the said non- concerning medical devices (OJ 1993 L member country without being subjected to 169, p. 1) - Rejection of medical devices, in Conferences and import duties - Immediate sale of the product the context of calls for tenders for supplies by the non-member country company to the to public hospitals in Greece, on grounds seminars member state company which carried out relating to the ‘general sufficiency and 19-20 March, Brussels the processing safety of use’ of the devices, notwithstanding n EU High-level event on ICT for Energy their certification with the CE marking, Efficiency Third Chamber and without, in any event, the procedure Subject: This event aims to accord visibility 9:30 provided for in Directive 93/42/EEC being to the potential of ICTs in enabling n Hearing C-554/07 Commission v Ireland followed energy efficiency across the economy Taxation Advocate-General: Mazák and in particular it will show how ICT- Failure of a member state to fulfil obligations n Hearing C-301/08 Bogiatzi (épouse based innovations may provide one of the - Incorrect transposition of Article 13 of Ventouras) potentially most cost-effective means to Council Directive 2006/112/EC of 28 Transport achieve the 2020 energy and climate targets. November 2006 on the common system Organisers: European Commission in of value added tax (OJ 2006 L 347, p.1) Eighth Chamber cooperation with the Czech Presidency - Exemption of all economic activities carried 9:30 ec.europa.eu/ict4ee on by the State, local authorities and other n Judgement C-143/08 Commission v Venue: Charlemagne Building, 170 Rue de bodies governed by public law Poland la Loi, 1049 Brussels Freedom of establishment

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Insight Interview with Javier Solana

“One country cannot solve all the world’s problems”

By Nicolas Gros-Verheyde end of the month. That is important. Europe is engaged in Afghanistan Peace in the Middle East is not a ques- alongside the Americans. What more The European Union’s High Rep- tion of days. So we have to persevere, can it contribute? Military forces, resentative for the Common Foreign make every effort to move forward with another solution? and Security Policy, Javier Solana, determination towards a solution. Afghanistan is a major responsibility for shared his views on the course of inter- each of us and we all have to act con- national events with journalists meet- ing for a training seminar organised by the French daily Ouest-France1. Europolitics was present.

France has officially announced its decision to rejoin the NATO com- mand. President Nicolas Sarkozy justifies the move as an advance for ‘Europe of defence’. Do you share that view? This reintegration will strengthen the climate of confidence, among the EU and NATO member states alike and doubts as to a possible ‘hidden agenda’ on the part of France will be swept away. It will also help clarify relations with the NATO member states that are not mem- bers of the Union and allow progress on ‘Europe of defence’ issues. At the same time, we have another positive element on the American side. A US Secretary of State [Hillary Clinton], who spends three days in Brussels to meet all the country’s partners is something new. All of that creates a new dynamic. In Afghanistan, the Balkans, the Middle East, on climate change and energy, a global solution needs to be worked out with the United States, China and Russia.

If you had to name just one issue on which you would like to see headway in 2009, what would it be? I hope to see progress on the situa- tion in the Middle East. It will not be easy. There are still intra-Palestin- ian and inter-Arab problems. And on the Israeli side, it remains to be seen what policy stance the new government will adopt. But I have hopes. There was an important meeting in Riyadh, with Syria and Egypt (on 11 March).

And the Arab League will meet at the © Council of the European Union www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3717 Thursday 19 March 2009 Insight 17

structively. The Americans are realists. This meeting in The Hague is a first in Isn’t there a danger of being dragged They know perfectly well that the Euro- every respect... into Pakistan? peans cannot double the military forces Yes. It is the first time that the regional and Countries have to be added to the solu- they have already deployed. However, international actors will be present, not just tion, not to the problem. The situation there are other aspects on which we the European Union and NATO countries, in Pakistan is different from the situation can work, in a more coordinated way, to but also all the countries of the region: the in Afghanistan. Pakistan is a very com- bring about real change. Police reform, Central Asian countries, India and Pakistan, plex but structured state. The discus- the development of a judicial system, sion on Afghanistan, which is regional reconstruction of the country: these are in nature, could also be the opportunity some of the tasks where Europe has an Mentalities have to change for India and Pakistan to try to settle, his- important role to play. and decision making has toric problems constructively. We have to be shared more with the two options today: either leave them We cannot stay indefinitely. What alone or try to work together to find pos- might be a way out? emerging countries with sibilities for coming up with a solution. We have to set more realistic objectives which we have had less I see only one solution: making a com- than creating a ‘Swiss Afghanistan’. intense relations mitment. If India and Pakistan move for- The country has to be stabilised, made ward, even just a little, it will be a major capable of living with its neighbours, step forward for the region’s stability. If with sufficient elements of democracy. Iran, Russia and China. This meeting will China makes a commitment, it will be Then we have to let the Afghans choose consider all the problems: security, drug easier to act. That is the challenge. how they want to live their future. What trafficking, the question of borders and cen- is important is to create this stability tral government. There is a need to prepare Russia and China - you seem to act and to have free elections. That means for the elections and for the post-election more and more beyond the framework involving the entire region. We will all period. Incentive needs to be given to all the of borders. be in The Hague at the end of March for countries that have historical relations with Yes, because we are faced with problems an initial meeting. Afghanistan to work constructively. Pakistan of a horizontal nature that oblige us to is fundamental. Without stability in Pakistan, go beyond borders. For example, climate there cannot be stability in Afghanistan. change or the economic crisis – where we need China - and disarmament and nuclear agreements – where we need of the best-known Europeans and one Russia. The year 2009 will be impor- The first to take on this role whose word counts. He is a man with tant for the question of armaments. The Javier Solana, high representative for an in-depth knowledge of the issues START2 agreements will be renewed at the European Union’s Common For- and a good sense of humour. the end of the year. The negotiations eign and Security Policy, is a curious Most heads of state or foreign affairs have to start as soon as possible. We have character. ministers who stop by in Brussels pay to make progress on this issue. Problems At first glance, one might think that him a visit. His special representatives, are global in today’s world and solu- because he is a discreet man, he is who he has posted to the world’s hot- tions have to be global too. One country boring or timid. In fact, he is quite spots, keep him up-to-date with what cannot solve all the world’s problems. the opposite: he is tenacious and full is happening and allow him to make The days when one country could solve of strong European convictions. But quick diplomatic responses. He also an international crisis on its own are a he knows very well that, as high rep- has access to Sitcen, as the situation thing of the past. resentative of a common foreign and centre or the European Union’s mini- security policy that scarcely exists and intelligence agency is called, and Coreu, Does that imply a new age in that some member states do not want the European diplomatic network. All in international relations? to exist at all, if he wants his bet – to all, this makes him the best-informed Mentalities have to change and decision give Europe a common foreign policy person in Europe with regards to what making has to be shared more with the – to be successful, there is a price to is happening around the world. emerging countries with which, we have pay: discretion and efficiency. And so Make no mistake. While his public to admit, we have had less intense rela- he is constantly travelling and meeting profile may sometimes appear vague tions. At the G20 in London, in early people. or hard to pin down, his silences and April, a solution to the economic crisis Although he is virtually unknown his interrupted phrases are sometimes will not be possible if the other coun- in Brussels and despised in some symptomatic. He is a diplomat through tries do not make a commitment. The European capitals, he is nonetheless and through. And he is also from the world is changing and the Western world Europe’s face and voice in the world. Mediterranean. His smiles, his gri- accounts for barely one sixth of the global Whether in Iran, the Middle East or maces, his questions sometimes say population today. In 20 years, this propor- Africa, Solana is without a doubt one more than his words. tion will be even smaller. The world is changing and it is essential to adapt.

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Another subject, Sudan. In retaliation This is the first head of state in office Lisbon Treaty, it is clear that we would for his indictment by the International to be indicted by the ICT so it is not an be in a much more advantageous situ- Criminal Tribunal, Sudan’s President easy situation. That’s logical. But the ation. In foreign policy, the next treaty will enable us to work much more effectively and coherently. It offers two key advantages: a permanent president of the Council of For- eign Ministers and a common External Action Service. How many European partners did US President George W. Bush have to deal with during his eight years in office? With this treaty, the Euro- pean Union will be more credible and better rep- resented exter- nally. That is why I say it has to be ratified. © Council of the European Union In April 2001, Solana received in Brussels Commander Massoud of the Afghan Northern Alliance (left)

Omar al-Bashir forced NGOs out of court’s decision has to be maintained. Are you hopeful about the Irish Darfur. The population is consequently According to its statutes, only a unani- referendum? left without assistance and the president mously adopted Security Council reso- I am confident. In all likelihood, the is strengthened. Aren’t we going against lution can oblige the court to suspend referendum in Ireland will take place our objective? Has the international prosecution. Unanimity does not exist at in October. And I have confidence community been rendered ineffective? present. The pressure has to be kept up. in the Irish. If all goes well, we could Our position is clear. We strongly condemn count on entry into force on 1 January the expulsion of the NGOs. And we sup- 2010. port the work of the International Criminal With the Lisbon Treaty, Tribunal (ICT). The European Union was it is clear that we would Are you an optimist by nature? behind the initiative of creating the ICT. be in a much more I am a realist, but I never lose hope. n We think and will continue to think that it is a good thing. We should be proud of advantageous situation having worked for that. However, judicial decisions can have political consequences. (1) The regional daily Ouest-France To get back to our European affairs, launched an original initiative six years What do you mean? the Lisbon Treaty has not been ratified ago. It sends its entire staff (around 500 It needs to be ensured that the citizens yet, but Europe is advancing. How will people), in successive groups, to Brussels of Sudan do not pay the price. Law and this new treaty change things? Is it still and Strasbourg for a four-day introductory politics have to be made compatible. as necessary? seminar on the working of the European We did not await the Lisbon Treaty to Union. Other French dailies have joined the The African Union and China have called move forward and I think that we have initiative (Nord-Eclair, Dernières nouvelles for a postponement of the decision. Will worked well considering the instru- d’Alsace and La Croix). and should this decision be reviewed? ments at our disposal. But with the (2) Strategic Arms Reduction Treaty

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Profile A diplomat, Socialist, Atlanticist and European

By Nicolas Gros-Verheyde Presidency. Solana played a leading role cally (with a little help from Russia, which in the Barcelona Process, whose aim is to abandoned its Serbian ally). The majority Born on 14 July 1942, High Represen- strengthen relations between Mediterra- Albanian Serb province was to be placed tative Javier Solana de Madariaga came nean countries and Europe. In Decem- under international administration, secu- from a well-known rity being guaranteed Spanish family. He by NATO (KFOR). was bathed in an In the meantime, alchemy of politics, Solana set his sights on diplomacy and Euro- new goals, still in Brus- pean affairs from a sels but at the Euro- tender age. His great pean Union. The 15- uncle, Salvador de member EU agreed at Madariaga, was head the Cologne summit, of the disarmament in July 1999, to appoint section of the League the Spanish Socialist of Nations and then to a new position cre- became an ambas- ated by the Treaty of sador in France and Amsterdam, that of the the United States. EU’s chief diplomat, An opponent of the a hat that he wore for Franco regime, he the first time on 18 went into exile in October 1999. The London, in 1936. In Treaty of Nice gave 1947, he was involved him another role, that

in the Oxford Mani- © Council of the European Union of secretary-general of festo on liberalism Solana greets members of the EUFOR mission in Chad the Council, which and was one of the founders of the Col- ber 1995, he was appointed secretary- allowed Solana to use administrative and lege of Europe in Bruges. Javier Solana’s general of NATO, replacing Belgium’s financial means for the ambitions outlined elder brother was also opposed to the Willy Claes. A logical move for the man by the European heads of state and govern- Franco regime and was imprisoned for as well as for the party of which he was ment. His discretion went down well. His his political activities. still a member. Pitting himself against position was renewed in July 2004 for a In 1964, aged 22, Javier Solana secretly NATO, both became strong supporters second five-year term. During these years, joined the Spanish Socialist Party, which of ‘reasonable’ Atlanticism. he has been involved in particular in seek- was illegal. Like his chemist father, he As the head of NATO, Solana first had ing a solution for the Middle East and in followed a scientific path graduating to implement the Dayton Peace Agree- the talks started between Iran and several in physics and studying in Spain, the ment in Bosnia-Herzegovina by deploy- countries (France, Germany, the United United Kingdom and the United States. ing a force (IFOR) of 60,000 men in the Kingdom, Russia, the United States). But he remained politically active: on former republic of Yugoslavia, which had About 20 civilian and military operations the other side of the Atlantic, he was been torn apart by several years of war. were launched on three continents in president of the association of foreign The mission was later turned into a sta- the name of the European Security and students and took part in anti-Vietnam bilisation mission (SFOR), keeping more Defence Policy. And the European Union war protests. In 1976, he was named fed- than 30,000 men on the ground. Spurred gradually emerged as a ‘serious’ player for eral secretary of the new Socialist Party. on by him, NATO refined its strategy, ‘good offices’ missions. The latest to date He represented Madrid from 1977 until integrated its members - France, partly, was the armed conflict, in August 2008, December 1995. and Spain, completely, join the military between Georgia and Russia, which was of A close friend of Felipe Gonzalez, structure – and negotiated agreements, symbolic and political importance. Javier Javier Solana joined his cabinet after the particularly with the former Russian Solana’s term ends on 31 October 2009. historic victory for the PSOE, in 1982. enemy, which gave birth to the NATO- But he will not bear the title of the He stayed there almost 13 years, a record Russia Council. In 1999, NATO inter- EU’s minister of foreign affairs, created length. He was minister of culture, then, vened militarily in the Balkans again, this by the European Constitution, which he in 1988, minister of education, becom- time directly in Serbia in order to stop the had dreamed of. Finding a suitable suc- ing minister of foreign affairs, in 1992. In Kosovo police force and army. It was a suc- cessor for the next five years will not be 1995, Spain held the European Union cessful intervention, militarily and politi- an easy task. n

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Insight Jurisprudence

Car industry/Parallel exports Peugeot denies accusations of impeding competition By Sophie Mosca with their dealers in the Netherlands, ber 2003 aimed at hindering parallel through the use of anti-competitive exports of cars from the Netherlands for The Peugeot Group disputed the non-resident buyers. European Commission’s accusation The EU executive alleged that Peu- that it had hindered competition, at a The EU executive geot Nederland had set up two restric- hearing before the EU Court of First alleged that Peugeot tive measures consisting on the one Instance, on 11 March. Nederland had set up hand of establishing a bonus system for After receiving complaints from cus- Dutch Peugeot dealers, which discrimi- tomers who wanted to buy cars in the two restrictive measures nated against export sales of vehicles, Netherlands at lower prices exclusive of and on the other of putting direct pres- taxes than in their home state, the Com- sure on distributors who had developed mission found that the Peugeot Group commercial practices. On 5 October significant export activities by threaten- and its Dutch subsidiary had commit- 2005, it imposed a fine of €49.5 mil- ing for example to reduce their supply ted a serious infringement of Article lion for the implementation of mea- of the best selling cars. 81(1) of the EC Treaty, in agreement sures from January 1997 to Septem- The Commission found that these measures were not unilateral on the part of Peugeot but that they had been the ruling of the Court of First Instance built into contractual relations with Background (Case C-55/03P). dealers and approved by the latter at This case brings to mind a ruling handed In another important case related to least tacitly. down by the Court of First Instance vehicle distribution, the CFI found in Peugeot Nederland applied to the (CFI), on 21 October 2003 (Case T- favour of the manufacturer against the Court of First Instance for annul- 368/00) in which General Motors and Commission: the case of Volkswagen ment of the Commission’s decision Opel Nederland challenged the Com- AG vs the European Commission (T- (Case T-450/05). mission’s accusations of impeding 208/01). The Court of First Instance First, it argued that the bonus system competition. The EU executive argued annulled the Commission’s 2001 deci- for dealers had been imposed unilater- that Opel Nederland had concluded sion prohibiting Volkswagen’s busi- ally and that the Commission failed to agreements with its dealers in the ness practices with its German deal- prove the existence of an agreement on Netherlands to restrict or prohibit the ers meant to impose the sale price such a practice: the mere fact that deal- export of vehicles to non-residents and of a given model through a ban on ers continued to buy cars could not be dealers in other member states. This discounts. The Commission alleged likened to an agreement. strategy restricted both the delivery of that an agreement existed between The high volume of exports, more- cars to dealers and the bonuses paid Volkswagen AG and its German deal- over, is the best evidence of dealers’ to agents for vehicles bought by non- ers that was incompatible with com- refusal to give in to the alleged pres- residents. The Commission’s decision petition rules because it eliminated the sure. Second, Peugeot maintained that was matched with a fine of 43 million competition between dealers based on the only objective of the bonus system euro. The court nonetheless held that the use of discounts. The CFI held that for dealers was to develop its market the Commission had not sufficiently the Commission had failed to prove share in the Netherlands and not to proved restrictions on the delivery of the existence of an agreement between impede competition. vehicles to dealers and even less so the manufacturer and its German deal- After 1997, internal circulars no that the measure was part of contrac- ers since it did not provide evidence longer referred to bonuses only for tual relations between Opel Nederland of express or tacit assent by the deal- vehicles sold to residents; the dura- and its dealers. As a result, it reduced ers. It pointed out that a concession tion of the alleged infringement should the fine to 35.475 million euro. The contract in conformity with competi- therefore be reduced to the year 1997. ruling provided an opportunity for the tion law could not be considered tacit Peugeot noted that the effects of this court to review and give a practical prior acceptance of the manufacturer’s bonus system are insignificant on exports, interpretation of the fine calculation anti-competitive initiatives. The appeal moreover, and cannot constitute a guidelines adopted by the Commission lodged by the Commission was found serious infringement. in 1998. The Court of Justice, to which to be inadmissible by the Court of It therefore asked the court to annul an appeal was submitted, confirmed Justice (Case C-74/04P). the Commission’s decision and/or reduce the amount of the fine. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language