EU in Asia Pages 14-19 EUROPOLITIcs
The European affairs daily Friday 18 September 2009 N° 3820 37th year
Focus Agriculture Obama scraps Commission presents mini-package of missile shield measures to cope with dairy crisis
By Brian Beary in Washington By Luc Vernet Article 186 of the Single Common Market Organisation, which will allow it to react Proof that the privileged relationship Agriculture Commissioner Mariann more speedily, under its own authority, Washington had with Eastern or ‘new’ Fischer Boel presented to the Euro- during times of market disturbance. In Europe is over is in. On 17 Septem- pean Parliament, on 17 September in general, explained the commissioner, ber, US President Barack Obama Strasbourg, a mini-package of measures Article 186 will offer the possibility of put- announced he was scrapping a major straight out of her July report on coping ting temporary measures in place almost policy priority of his predecessor, with the dairy crisis. The commissioner immediately to stimulate demand and/or George Bush: the deployment of ten reiterated that “the question of a freeze in limit milk marketing. missile interceptors in Poland and a milk quotas has been definitively ruled out The Commission intends to present, radar system in the Czech Republic. and there is no question of reactivating the in the coming weeks, a change in the The project had caused deep divisions use of market instruments from the past, rules for national aid to the advantage of in Europe, with Russia staunchly which have proven to be costly and inef- all agricultural operators due to their dif- opposed and many others also fective”. She was alluding to the requests ficulty obtaining credit as a result of the considering it a bad idea. by a number of member states, particu- ongoing financial crisis. This proposal will Obama justified the reversal, saying larly France and Germany, for an increase raise the national aid ceiling from €7,500 the latest US intelligence showed the in management aid (public intervention, to €15,000 until the end of 2010 for all threat of an intercontinental missile export refunds). operators faced with the credit crunch. attack from Iran - the main motivator The Commission will first extend to the The EU executive also plans to change for the project - had diminished. Iran dairy sector the provisions contained in the operation of (continued on page 6) was more advanced in developing short and medium-range missiles, he said. US Defence Secretary Robert Gates Milk strike The movement began in France and - who proposed the Polish-Czech proj- More than 40,000 European farmers quickly spread to Belgium. Calls for ect to Bush in December 2006 - said are participating in the European milk a strike or spontaneous actions have mobile, sea-based rather than fixed strike, announced officials of the Euro- since been heard in Germany, Austria, missile interceptors were better suited pean Milk Board (EMB), on 16 Sep- Spain, Northern Italy, Luxembourg, to tackling the current missile threat. tember in Brussels. “Despair is push- the Netherlands and Switzerland, Gates added that “delays in the Czech ing more and more producers to join according to the EMB. and Polish ratification process” were the movement,” said EMB President The agricultural association Via Campe- a factor in the U-turn. The US was not Romuald Schaber at a press confer- sina is pressing for the convening of scrapping missile defence in Europe per ence. He hopes that the Commission a special summit of EU heads of state se, he insisted, adding consultations had and political leaders will take inspira- and government on the milk crisis. The begun with “allies, starting with Poland tion from the “concrete proposals” heads of state were already holding an and the Czech Republic,” to place some drawn up by the organisation, which extraordinary summit on the economic interceptors on land by 2015. represents 100,000 milk producers. crisis, on 17 September in Brussels.
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Contents N° 3820 Top Stories
EU in Asia Pages 14-19 Financial services, banks, Enlargement Insight: EU in Asia insurance EU/Albania: Rehn urges Berisha Economic giant, political dwarf...... 14 G20: Commission: Employment to continue reforms towards EU...... 9 Union? What Union?...... 16 and bonuses key issues in Pittsburgh...... 4 In quest of an Asia-Pacific strategy...... 17 Financial supervision: EU executive Trade policy ASEM process has long way to go...... 18 set to release “detailed proposals”...... 4 EU/G20/Trade: Doha talks in Interview with Park Sung Hoon, Geneva leave Europeans disappointed ..... 9 professor of economics at Korea Business & competitiveness EU/US: Mounting concern University: “EU must do Telecommunications: EU exec adopts over planned ten dollar tourist tax...... 10 more in Asia”...... 19 guidelines for public funding of broadband networks...... 5 In Brief BusinessEurope counts on Barroso...... 11 Jurisprudence: Financial markets Sectoral policies Eurozone external trade Court clarifies concept of ‘insider Agriculture: Commission presents surplus at 12.6 bn euro...... 11 dealing’...... 20 mini-package of measures to cope Ireland links national with dairy crisis...... 1 qualifications to EQF...... 11 Energy efficiency: Ecodesign Probe into financing of EP buildings...... 11 moves to computers and monitors...... 6 EP on access to SWIFT data...... 11 Energy: Parliament calls EIB loan for social housing in France...... 11 again for increased security...... 7 ETUC wants “guarantees” Agriculture: Breeders remain hostile from Barroso ...... 12 to new rules on animal transport...... 7 EIB energy loan in Italy...... 12 Dragados cleared to buy Pol-Aqua...... 12 Institutions 2010 budget: Commission EU Agenda...... 13 critical of some of Council’s cuts ...... 8 Commission/Parliament: Socialists under pressure to support Barroso?...... 8
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G20 Commission: Employment and bonuses key issues in Pittsburgh
By Sarah Collins to be agreed by EU leaders at the Council, (€3.4 trillion), but said that they would “put says that the G20 should commit to “bind- in place credible exit strategies”. The draft The European Commission has said the ing rules for financial institutions on variable Council conclusions say that exit strategies employment crisis and bankers’ bonuses remunerations backed up by the threat of “must be agreed now and implemented in should be the main priorities of G20 leaders sanctions at the national level”. Sources at a coordinated manner as soon as recovery meeting in Pittsburgh, on 24 and 25 Sep- the Council said that while the language takes hold, taking into account the specific tember. The EU executive’s key messages of the document could change during the situations of individual G20 members”. to the G20 summit also include the need to dinner meeting, the substance was likely to The EU’s fiscal stimulus amounts to 2.5% formulate exit strategies, a conclusion of the remain intact. of the bloc’s GDP, or around €300 billion, Doha round of international trade talks and a “[Pay] is a key issue to ensure not just but the Commission says it goes up to 5% deal on financing climate change. Commis- that we have smoothly operating finan- when automatic stabilisers (unemployment sion President José Manuel Barroso met the cial markets, but markets that are based and social benefits) are taken into account. 27 EU heads of state and government at an on ethical principles. We need both ele- However, the latest economic forecast extraordinary European Council in Brussels, ments in place if we are to ensure sus- from the EU executive, while more upbeat late on 17 September, and was scheduled to tainable confidence for the future,” the than previous reports, predicts a 4% contrac- flesh out the details of the executive’s position Commission said, on 17 September. tion in growth across the bloc this year. The next week before travelling to Pittsburgh. A Commission is saying that while Europe spokesman for the Commission said ahead of EXIT STRATEGIES may be on the way out of the recession, it the Council meeting, “This is the moment Talks on exit strategies will also be central is still unsure how long the positive signals for the EU to prepare its position”. to the meeting, although they will be dis- will last. “We are still fully involved in the He said the EU must “exert pressure” on cussed in more detail at next month’s infor- economic recovery process,” the spokesman its G20 partners to implement all agreements mal gathering of EU finance ministers in said. “There’s no reason to be complacent made during the last summit in April, “and Göteborg. At the last G20 meeting in April, at this stage. The situation is still fragile, this of course includes the question of pay”. A world leaders committed to a global stimu- and we are particularly concerned about draft communiqué, seen by Europolitics and lus package worth a total of US$5 trillion employment.” n
Financial supervision EU executive set to release “detailed proposals”
By Sarah Collins A Barroso cabinet official told Europol- accounting standards and cracking down itics they would be released on 23 Sep- on tax havens (see Europolitics 3729). They The European Commission is ready to tember unless a decision was taken to also agreed to work together through the release “detailed proposals” on a new finan- change that. revamped Financial Stability Board (for- cial architecture next week, ahead of the The structure of the new system is based merly the Financial Stability Forum) and G20 summit, on 24 and 25 September. on details set out in a report by former the IMF to monitor cross-border crises. According to a Commission spokesman, International Monetary Fund Managing In May, the Commission released a the plans are on the table for the creation of Director Jacques de Larosière in February, communication (COM(2009) 252) setting a macroeconomic European Systemic Risk who has admitted that he went as far as he out how the de Larosière recommenda- Council, or Board (ESRC), to monitor could go in giving the EU-level authorities tions were to be implemented into a two- system-wide risks, and a trio of European binding powers without having to revisit tier system of governance, with the Euro- Supervisory Authorities (ESA), which will the EU treaties. pean Central Bank-led ESRC – without coordinate data from national authorities An industry source told Europolitics that binding powers – watching out for future and broker disputes between cross-border although the proposals would contain “no crises, and a European System of Finan- banks. He said ahead of the extraordinary real surprises” – the de Larosière structure cial Supervision, a network containing the European Council, which is to prepare a has been fleshed out in various communi- ESAs, which have statutory powers, on the European position for the G20 meeting, cations since February – it is still unclear microeconomic level (3761). “The European Commission will have on exactly how they will be presented. In June, EU leaders signed up to the its agenda next week, before the Pittsburgh At an April G20 meeting in London, Commission’s initial plans, although UK summit, certain detailed proposals for a new world leaders vowed to “extend regulation Premier Gordon Brown managed to secure financial supervisory structure at European and oversight to all systemically important a provision stating that the new authorities level. The Commission does expect the EU financial institutions, instruments and mar- would not have the power to order EU gov- as a whole to continue to exert pressure to kets” – specifically by strengthening pru- ernments to bail out ailing banks (3777). make sure that proposals agreed at the G20 dential regulation on hedge funds, capital The 23 September legislative proposals will in London are fully implemented”. requirements, pay, credit rating agencies, need to take this into account. n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3820 Friday 18 September 2009
Telecommunications EU exec adopts guidelines for public funding of broadband networks
By Eric van Puyvelde The guidelines explain how public The guidelines nonetheless provide funds can be channelled for the deploy- that when state aid is granted to private The European Commission aims to ment of basic broadband and NGA net- operators, it must strengthen compe- encourage rapid and widespread deploy- works to areas where private operators tition by requiring the beneficiary to ment of broadband telecommunications do not invest. grant open access to the publicly funded networks while safeguarding market They make a distinction between com- network for third-party operators. n dynamics and competition in a sector petitive areas (‘black’ areas), where no that is fully liberalised. Accordingly, on state aid is necessary, and unprofitable The guidelines are available at 17 September, it presented guidelines or underserved areas (‘white’ and ‘grey’ www.europolitics.info > Search = 256785 on the application of EC Treaty state aid areas), where state aid may be justified if rules to the public funding of broadband certain conditions are met. networks. This distinction is also adapted to the Operators and the public authorities case of NGA networks (which are just thus have a clear and foreseeable frame- starting to be developed) by requiring Background work for accelerating and extending the member states to take into account not On 12 June 2009, the Commission deployment of broadband networks. only existing NGA infrastructures but presented a revised draft recom- The guidelines also contain specific pro- also concrete investment plans by tele- mendation on mechanisms designed visions on the deployment of next-genera- coms operators for the deployment of to spread the risk of investments tion access (NGA) networks, which allow such networks in the near future. among investors and operators who public support to promote investment in seek access to NGA networks. This this strategic sector without creating undue Safeguards proposal is part of the European distortions of competition. The guidelines provide for a number of broadband strategy, which the March The Commission explains that, during essential safeguards (detailed mapping, European Council asked the Com- the past five years, it adopted more than 40 open tenders, open access obligation or mission to develop by end 2009 (see individual state aid decisions in this sector, technological neutrality and claw-back Europolitics 3772). thus developing a coherent and consistent mechanisms) as a way of stimulating Investments in broadband networks practice with regard to state support. competition and avoiding the crowding also form an essential part of the The new guidelines build on this expe- out of private investment. European economic recovery plan, rience and on the public consultations Although investments for high speed a sector to which the Commission launched in May and June 2008, on and very high speed broadband networks assigns a budget of 1.02 billion euro which the Commission received around should primarily be driven by private under the European Agricultural 100 comments from the member states, operators, state aid can play a key role Fund for Rural Development (EAFRD) operators and civil society. All these to extend broadband coverage to areas for the development of broadband opinions supported the publication of where market operators have no plans to internet connections in rural areas. guidelines, it adds. invest.
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Dairy crisis support for milk distribution in schools. sion intends to explore the possibility (continued from page 1) For the longer term, the commissioner of providing a legal framework for con- suggests the establishment of a working tractual relations between milk farmers quota buying-up schemes by member group bringing together the Commis- and the dairy industry to better balance states in order to release funds for restruc- supply and demand while safeguarding turing programmes. It proposes that quan- fair competition. tities of milk placed in the national reserve The Commission is Fischer Boel also announced that a should no longer count as part of the considering a legal report on the dairy sector supply chain national quota when calculating a possible framework for contractual would be presented before the end of overrun. In other words, this is equivalent the year. She nonetheless added that to a reduction of the national quota. In the relations between milk “further work will be needed”. “We also event of an overrun, the share of the super- farmers and the dairy have to examine whether the establish- levy corresponding to the national reserve industry ment of a futures market in Europe would be used by the member states to would help make price setting in the finance restructuring. dairy sector more transparent,” she said. The Commission will also propose shortly sion and the member states to examine The commissioner stressed the need to to the Management Committee to include ways of establishing more balanced rela- develop good practices on production milk-based beverages in the programme of tions in the dairy sector. The Commis- and innovation plans across Europe. n
Energy efficiency Ecodesign moves to computers and monitors
By Dafydd ab Iago tops, laptops, thin clients and workstations provided by the industry so far is imma- (but not servers) does not include require- ture and insufficient,” said Toulouse. He The ecodesign process’ consultation ments on ‘embodied’ energy used to make argues it is not clear which companies forum will turn to personal computers, the product, chemical content and recy- would sign up. The monitoring scheme, monitors and displays (on 9 October) as clability (this also true of the regulation too, is rudimentary, with no sanctions for well as imaging equipment and complex for monitors). The draft regulation should non-compliance. Toulouse further criti- set-top boxes (on 12 October)1. The process make Energy Star 4.0 requirements man- cises another draft voluntary initiative on should impose Energy Star requirements datory in 2011. Energy Star 5.0 require- complex set-top boxes as non-transparent as mandatory for computers and monitors. ments (adopted recently) would become on reporting and lacking in ambition. n Imaging equipment, such as photocopiers, the new mandatory level in 2013 (2014 for printers and faxes, face new EU standards thin clients and workstations). (1) Following consultation and studies, the as do complex set-top boxes. With a lower energy saving potential Commission, under the Ecodesign Directive Edouard Toulouse from the environ- and complex product group, the Commis- (2005/32/EC), proposes draft regulations for mentalist organisation ECOS is disap- sion is also only proposing a voluntary ini- adoption by a qualified majority of member state pointed. The proposed regulation for desk- tiative for imaging equipment. “The draft experts in the Ecodesign Regulatory Committee.
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Energy Parliament calls again for increased security
By Dafydd ab Iago accept a Hungarian-inspired clause call- Eastern countries. This should be based on ing on the Commission to take “immedi- genuine technology transfer and capacity- Energy Commissioner Andris Piebalgs, ate action against hostile takeover moves by building aimed at local companies and civil just back from a visit to Baku, Azerbaijan, non-transparent foreign entities in the EU society2. faced a series of familiar requests and state- energy market and to apply strictly the EU Addressing MEPs, Piebalgs combined ments from MEPs over the issue of energy rules on competition”. The resolution cites issues of security of supply with sustainabil- security1. During a 90-minute plenary debate, Russian Surgutneftegaz’s recent acquisition ity and competition. He told MEPs that on 17 September, MEPs expanded at length of a stake in the Hungarian energy com- Nabucco should be supplying gas to Europe on the issue with traditional concerns over pany MOL. The resolution also calls on the from 2014. The July signing of an intergov- the increasing dependence of the EU on Commission to investigate the activities of ernmental agreement on the Nabucco pipe- Russian gas and threats to the EU-favoured “non-transparent” foreign entities, such as line, linking gas fields in source countries gas pipeline Nabucco. Piebalgs also used the CENTREX that recently took a 20% stake Azerbaijan, Turkmenistan and Iraq, was opportunity to speak of a new idea: Desertec. in Austria’s Baumgarten gas trading and welcomed by MEPs, especially in the “con- This project aims at using the Sahara’s storage facility. text of becoming less dependent on Russian vast potential for solar energy, whether via As for garnering the solar potential of the supplies”. Still, MEPs stress the importance photovoltaics or concentrated solar energy. Sahara, the Parliament calls on the Council of a general regime to govern the develop- and the Commission to cooperate with the ment of the gas corridor linking the EU to Suspicious Russian takeovers EU countries of the Mediterranean region new sources in the Middle East and the Cas- MEPs also approved a resolution on and North Africa. MEPs welcome recent pian region that are independent of any one energy security. The text calls for traditional progress made by the Desertec industrial company or pipeline. n desirables, such as Europe speaking with initiative aimed at developing solar energy one voice, developing gas storage, better in the region. MEPs want the EU to adopt (1) Parliament previously adopted a resolution, on dialogue and improving interconnections a coherent approach to the Desertec project 26 September 2007, entitled ‘Towards a common and diversification of supply. New and more as well as make an active contribution to the European foreign policy on energy’ detailed issues, though, appear. MEPs thus development of North African and Middle (2) See www.desertec.org
Agriculture Breeders remain hostile to new rules on animal transport
By Luc Vernet improving the welfare of animals, the new For their part, the organisations campaign- rules on transportation time - a maximum of ing for animal welfare, like Eurogroup for “Clearly unacceptable” is the term used nine hours to slaughterhouses and cycles of Animals, consider it necessary to finally by EU professional agricultural organisa- settle the question of transportation time. “It tions and negotiators to describe the draft is the Loch Ness Monster of animal welfare regulation being drawn up by the European The truck load density policy; it is absolutely essential for the legis- Commission on animal welfare during criteria for cattle would lation to be implemented today,” insists one transportation. They are once again trying to result in a significant of its representatives in Brussels. “There is a prevent its publication. increase in transport costs simple means of implementing it by equip- The reinforcement of animal welfare ping trucks with GPS systems,” he indicates, standards as envisaged by the Commission stressing the “common interest [of his organ- would have “disastrous” consequences on isation] with hauliers”. It is in the interest of the whole of the European meat sector, nine hours and then 20 hours in a row for the professionals who respect the legislation both from an economic and social point other reasons of movement - are just a source to see to it that the law is respected by all, he of view, consider the sector’s professional of needless complications. All the more so as pleads. organisations. The truck load density crite- modifications associated with the legislation ria for cattle, anticipated by the services of set up in 2005 have already cost more than Animal Welfare Intergroup Health Commissioner Androulla Vassiliou, €1.5 billion alone in terms of truck compli- British ecologist Caroline Lucas (Greens- would result in a significant increase in ance and a similar amount in administrative EFA) was appointed, on 16 September, as transport costs. Similarly, obligations relat- costs. Professionals are therefore campaign- president of the European Parliament’s ing to the structure of trailers and their ven- ing for any new initiatives in this area to be Animal Welfare Intergroup. She will carry tilation would oblige professionals to invest postponed in order to allow sufficient time out this role during the first half of the legis- more than €200 million in their adaptation, for the recently adopted legislation to be set lature with the objective that the intergroup for the pig sector alone. Lastly, on a more up and for a real economic impact study to “continues to be the champion of animal general level, the sector fears that instead of be undertaken on an EU scale by 2011. protection in Europe”. n
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2010 budget Commission critical of some of Council’s cuts
By Célia Sampol in Strasbourg general cuts that fail to take account of three institutions”. An additional €2.4 each one’s particular needs. He there- billion from the 2010 budget is needed The Swedish EU Presidency presented fore hopes that Parliament will take a to finance energy projects for the most the EU’s 2010 draft budget to MEPs at different tack at its first reading in late part and, under the deal worked out by the European Parliament’s plenary ses- October. the Council and the EP, this amount sion in Strasbourg, on 15 September. The Commission has proposed an must be assured by a “compensation The new budget commissioner used the amending letter to update needs under mechanism” to be defined during the opportunity to criticise the deep cuts Heading 4. It is seeking another €95 mil- autumn dialogue under second reading. made in Council at first reading, on 10 lion in commitment appropriations (€60 July. million in payment appropriations) for Savings at Parliament The member states tabled a draft aid to the Palestinian Authority and the The rapporteur-general for the 2010 budget of some €137.944 billion in budget, László Surján (EPP, Hungary), commitment appropriations, ie €612.90 Algirdas Semeta hopes noted that the EU is currently plagued million less than the preliminary draft by a milk crisis and is nowhere near full budget (PDB) presented by the Commis- Parliament will take a employment. Its researchers are also sion, on 30 April. For payment appropri- different tack at first emigrating and differences between ations, they are seeking €120.521 billion, reading regions are increasing. In this context, or €1.795 billion less than the PDB. It is he hopes that “the crisis will enable us normal at this stage of the negotiations to get our house in order and present a for the Council to lower the executive’s city of Gaza, and €50 million (commit- budget that is more comprehensible to preliminary figures since Parliament ment) and 20 million (payment) to help citizens”. raises the amounts at its first reading. Yet the developing countries fight climate The rapporteur for the EP budget, the new Budget Commissioner, Lithu- change. Under Heading 5 (administra- Vladimír Manka (S&D, Slovakia), anian national Algirdas Semeta, who tive spending), the EU executive also explained that the Committee on Bud- replaced Dalia Grybauskaité (elected proposed a “modest increase of only gets had agreed to reduce the institu- president of Lithuania), did not mince 0.9% compared with 2009,” but the tion’s budget to less than 20% of the total his words in the chamber. Council nevertheless cut the Commis- of Heading 5. Savings measures are pro- While recognising that the Council’s sion’s budget, regretted Semeta, who posed: the Strasbourg buildings would cuts “are less drastic than in previ- hopes to see Parliament restore the no longer be guarded between plenary ous years,” he regretted the cuts made initial amounts. sessions (savings of €2 million a year) in Headings 1a (competitiveness), 1b The commission also pointed out that and part of the translation budget would (cohesion) and 4 (the EU as a global the second stage of financing the €5 be placed in reserve and only released partner), “which are a negative signal billion European economic recovery if the institutions prove that they have for growth, employment and accession plan will have to be agreed in Novem- tried to use existing resources (savings of aid”. The EU agencies are also “hit” by ber through “close collaboration by the €11 million). n
Commission/Parliament Socialists under pressure to support Barroso?
By Célia Sampol in Strasbourg to 785. A recalculation would thus reveal votes to be controversial. In fact, accord- that the majority obtained by Barroso during ing to internal sources, the Czech and The absolute majority obtained by José his investiture of 22 July 2004 was 413 votes Slovak Socialist delegations, which Manuel Barroso, on 16 September in Stras- in favour, 251 against and 44 abstentions, ie comprise seven and five elected MEPs, bourg, remains inferior to that of 2004. Espe- 46 votes more than the absolute majority at respectively (twelve in total), were, the cially because, according to internal sources, the time (732 divided by two plus one: 367). day before the vote, under pressure from the Slovak and Czech delegations from the Whereas today, Barroso has 382 votes in their government, via telephone, to vote Socialist group have been under pressure to favour, 219 against and 117 abstentions, ie in favour of Barroso. However, it remains vote for the president of the Commission. only 13 votes more than the current absolute difficult to refer to these countries with- Contrary to what was indicated in our edi- majority (736 divided by two plus one: 369). out naming the twenty-one Spaniards tion dated 17 September (3819), the Euro- His mandate has therefore been renewed and the seven Portuguese from the pean Parliament had 732 - rather than 785 with far less support than five years earlier. group, who also voted for Barroso, con- - MEPs in July 2004. It was only in 2007, fol- This argument is strengthened by the forming to the line of their respective lowing the accession of Romania and Bul- fact that some MEPs from the Socialist prime ministers (six Portuguese, in fact, garia, that this figure temporarily increased group consider these additional thirteen because Ana Gomes refused). n www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3820 Friday 18 September 2009
EU/Albania Rehn urges Berisha to continue reforms towards EU
By Fabrice Randoux ment are important elements in achieving Union is the greatest and most important our common objective of bringing Albania objective of my cabinet,” declared Beri- Enlargement Commissioner Olli Rehn closer to Europe,” writes Rehn in a letter of sha, while presenting his government’s called on Albanian Prime Minister Sali Beri- congratulation to Berisha. programme to the deputies. sha, invested on 17 September by the coun- Berisha, 65, chair of the Democratic Party, Albania officially submitted its applica- try’s parliament resulting from the elections of and the ministers in his cabinet, received the tion to join the EU on 28 April. Rehn had 28 June, to continue the “European agenda of support of 74 MPs out of the 140 seated at the considered this application submission to reforms”. “It is up to Albania to demonstrate Albanian parliament, a vote boycotted by the be premature, calling on Tirana to instead its capacity to move towards the next step in Socialists. The latter are making their partici- focus on implementing the Stabilisa- EU integration, particularly by improving pation in the work of the Albanian parliament tion and Association Agreement, which the rule of law and reinforcing democratic conditional upon the opening of parliamen- entered into force on 1 April. The Swed- institutions. Assuring the independence of tary questions on the results of the elections ish EU Presidency still needs to propose to justice, strengthening administrative capacity of 28 June, which they believe to be marred the Council that the application be trans- and continuing the proper implementation by manipulation. mitted to the Commission in order that it of the Stabilisation and Association Agree- “Albania’s integration into the European may issue its opinion. n
EU/G20/Trade Doha talks in Geneva leave Europeans disappointed
By Fabrice Randoux achieved between now and the end of the Africa) to take part in ‘sectoral agreements’, year,” stressed the same European source, which, on a voluntary basis, are aimed at The Europeans remain disappointed for whom the support of the Americans still completely eliminating tariffs in the 14 after the resumption of talks on the Doha remains “too unclear”. industrial sectors (chemical products, phar- round of international trade talks, which The Doha negotiations, which are to maceuticals or cars). But the United States took place among chief negotiators, on 14- lower thousands of tariffs and reduce has not spelt out the concessions (agricul- 15 September in Geneva, in the wake of agricultural subsidies in rich countries, tural, for example) that they could make in the New Delhi ministerial meeting, at the have for years come up against North- exchange. start of September (see Europolitics 3810). South confrontations on agriculture and Moreover, President Barack Obama “There wasn’t any breakthrough, just industrial issues. The last ministerial will have to sell any agreement to a Con- some progress on the timetable,” said meeting, in July 2008, failed in particu- gress that is less favourable to free trade one European source. The chief negotia- lar because of opposition between India than before, which leaves the Europeans tors will as of now meet once a month in and the United States on a special safe- sceptical about the chances of an agree- Geneva, with the possibility of a ministe- guard mechanism aimed at protecting ment before the mid-term congressional rial level session “just before or just after” citizens in developing countries in the elections, in November 2010. the World Trade Organisation ministerial case of a sharp increase in the import at the end of November, which will not be flows of some agricultural products. Tensions devoted to Doha. While the new Indian government An increase in trade tensions between The Europeans are also hoping to have is showing a desire to move forward, Beijing and Washington, following a rise a proper discussion at the G20 in Pitts- the Obama administration’s position in customs duties by the United States on burgh, on 24 and 25 September, and not remains unclear. In New Delhi, Trade Chinese tyres, on 11 September, could make do once again with setting the goal of Representative Ron Kirk avoided choos- complicate matters. “It’s an area of con- an agreement in 2010. In the conclusions ing 2010 as a deadline for concluding an cern,” said WTO head Pascal Lamy. “This that were to be adopted at the preparatory agreement, deeming that it will be “the type of situation increases the risk of a spiral dinner of European leaders, on 17 Septem- contents that will fuel the process and of reprisals,” he added. He recalled that the ber, the EU is calling for the adoption at not a deadline”. two countries were members of the G20, the G20 “of a realistic and ambitious road Under pressure from their lobby groups which was committed to not resorting to map” to reach “an ambitious and balanced (agricultural, industrial and services), the restrictive trade measures during the crisis. conclusion to the negotiations in 2010”. United States is asking developing coun- In a report published on 14 September, tries for more market access than what the WTO said that G20 governments have American doubts was in the complex package on ‘modali- “refrained in recent months from resorting “A strong political commitment is ties’ (calculations of reductions in custom too often” to protectionist measures, but needed that results at a technical level in duties and subsidies) of July 2008. In noted some “slippage,” citing in particu- something of substance, with a timetable particular, they want the large emerging lar non-tariff measures or increased use of that allows the first concrete results to be countries (India, China, Brazil and South trade defence mechanisms. n
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EU/US Mounting concern over planned ten dollar tourist tax
By Brian Beary in Washington Disney and Marriott, which make billions states - Bulgaria, Cyprus, Greece, Poland of dollars in profits, he added. An equivalent and Romania - meanwhile have to pay As US lawmakers edge towards enacting bill is being pushed by Democrat Congress- US$131 to enter the US, even for tour- a bill requiring Europeans travelling to man Bill Delahunt (Massachusetts) in the ism, as they are not yet on the VWP. The the United States under the Visa Waiver House, where the Democrats have a major- Commission and member states in ques- Programme (VWP) to pay a US$10 fee, ity of nearly eighty. If that passes, US Presi- tion are working with Washington to end there is growing exasperation among EU dent Barack Obama - himself a Democrat this anomaly and have all EU27 on the diplomats. The European Commission, - is unlikely to veto it despite the diplomatic programme. US citizens travelling to any backed by several member states, is assess- tensions it will cause. EU member state do not need a visa. In ing if the US$10 fee is tantamount to a Diplomats are worried about the growing the case of Greece, it is expected to be visa. If it decides it is, this will spell trouble risk of the entire transatlantic visa waiver added by the end of 2009 as its visa refusal for EU-US relations because the EU will regime unravelling. The EU Ambassador in rate is well under the required 3% thresh- feel obliged to adopt reciprocal measures Washington, John Bruton, in an irate press old. Cyprus should follow soon after, in retaliation. The Commission is already release, noted how the number of European once it begins issuing biometric passports under pressure on this score since January travellers to the US - 13 million in 2008 - and concludes the necessary data sharing 2009 when the US introduced its Elec- is already decreasing, in part because of the agreements with the US. tronic System of Travel Authorisation recession but also because Europeans are For Bulgaria, Poland and Romania, the (ESTA), which makes all VWP travellers deterred by long waiting periods at US bor- path to VWP is trickier. Their visa refusal apply online for a permit to travel. ders. After the 11 September 2001 terrorist rates - although declining - are still over 10% The US$10 fee idea came not from the attacks, the US began fingerprinting and so they are unlikely to be added until 2011 US administration but from the US Con- photographing every visa waiver traveller at the earliest. The latest visa refusal rates gress, in particular the Democrats, who have upon arrival. This has caused considerable are due to be published by the US State solid majorities in the House and Senate. A ill-feeling as some travellers feel they are Department in October 2009. Senate bill was passed by 79-19 votes, on 9 being treated like criminals. In addition, civil But while the visa refusal obstacle may September. South Carolina Senator Jim liberties groups constantly protest about the soon be cleared, another one may then DeMint, one of the 19 Republicans to vote growing list of passenger personal data the emerge. The US Senate is considering against, wrote an opinion editorial in The US administration obliges airlines to provide a bill from Diane Feinstein (Democrat, Washington Post newspaper recently, heap- them with before travelling. California) that would refuse countries ing scorn on the bill, which establishes a entry to the VWP if over than 2% of their fund and non-profit corporation supposedly ONGOING VISA WAIVER EFFORTS citizens overstay their visit while in the to encourage tourism. “Imagine: ‘Come to The US$10 fee would most likely be US. That 2% threshold would also apply America so we can tax you at the airport!’” collected from travellers when they apply to existing VWP countries, so it is plau- wrote DeMint. Foreign travellers would be online for their ESTA, the latter usually sible - though not that likely - that EU subsidising the advertising campaigns of being granted within a couple of min- member states will be removed from, the US travel industry, including firms like utes. The citizens of five EU member rather than added to, the VWP. n
www.europolitics.info Sold by subscription only © reproduction strictly prohibited in any language EUROPOLITICS N° 3820 Friday 18 September 2009 11
In Brief
BusinessEurope counts on Barroso Ireland links national EP on access to SWIFT data BusinessEurope, the Confederation qualifications to EQF In a resolution adopted in plenary, on 17 of European Business, congratulated Ireland is the first member state to link its September (and not on 16 September President José Manuel Barroso on his national qualifications to the European as initially planned), the European successful nomination to head the EU Qualifications Framework (EQF) for Parliament laid down its conditions executive for another term, and said, on lifelong learning, which aims to improve for the conclusion of a new interim 16 September, that it counts on him to the transparency of qualifications and agreement with the United States on work on a fresh vision for EU policies. make it easier for people to study or work access to data held by the SWIFT “BusinessEurope expects from the new in another EU country. The EQF is a banking network. MEPs note that data Commission an unwavering commitment new European tool that should make it must only be provided for the purpose to open market principles and to pushing easier to understand and compare the of combating terrorism (see Europolitics forward the reforms needed to create different national qualification systems 3819). The GUE-NGL group did not more growth and jobs in Europe”. The and their levels. The member states are back the resolution tabled jointly by the confederation highlighted its six priorities taking part in this voluntary scheme to EPP, S&D and ALDE, arguing that the for action: fixing the financial system and link their national qualifications levels to guarantees for respect for fundamental restoring credit flows, attract investment the EQF and have committed themselves rights and protection of personal data and innovation in Europe, developing to do so by 2010. Ireland, however, were insufficient. In a press release, a viable exit strategy to excessive public has already finalised its referencing Marie-Christine Vergiat (GUE-NGL, deficits, boosting skills and human report, which explains how national France) regrets that a majority of MEPs capital, bolstering open trade and fighting qualifications levels are linked to the voted against her group’s amendment climate change. EQF. requiring suspension of the agreement with the United States if this country Eurozone external trade surplus at Probe into financing of EP fails to respect fundamental rights or to 12.6 bn euro buildings protect personal data. According to estimates published on 17 The European Ombudsman, P. September by Eurostat, the eurozone Nikiforos Diamandouros, has issued EIB loan for social housing in trade balance with the rest of the world, two recommendations to the European France in July 2009, gave a €12.6 billion surplus Parliament and the European Anti- The European Investment Bank (EIB) (compared with -€3.5 bn in July 2008 Fraud Office (OLAF) concerning the and the BPCE (the central body of the and +€5.4 bn in June 2009). The July financing of EP buildings in Brussels, new French banking group resulting 2009 extra-EU trade balance was a €0.7 following complaints from a journalist. from the merger between the Groupe bn surplus (compared with -€22.4 bn in In the first, he calls on the EP to clarify Banque Populaire and the Groupe Caisse July 2008 and -€4.6 bn in June 2009). its statements concerning the legal d’Epargne) signed, on 11 September, The EU trade surplus fell with the framework for the financing of the Willy a protocol anticipating a €125 million USA (+€15.9 bn in January-June 2009, Brandt and József Antall buildings and loan to the Caisses d’Epargne for social compared with +€32.7 bn in January- asks it to give access to the report of housing. This agreement is part of the June 2008) and Switzerland (+€6.4 bn the consulting firm, the call for tender France Logement Social programme compared with +€9.6 bn). The EU trade and the list of banks contacted by the launched in 2007, to which the EIB had deficit decreased with China (-€65.3 bn developer. In the second, he calls on decided to grant a budget of €500 million. compared with -€72.6 bn), Russia (-€20.6 OLAF to reconsider its investigation On this date, out of a first installment bn compared with -€38.1 bn), Norway concerning the procurement procedure of €250 million, €125 million had been (-€16.8 bn compared with -€26 bn) and for services associated with the financing made available to the Caisses d’Epargne. Japan (-€10.8 bn compared with -€17.9 of the acquisition of the Altiero Spinelli In particular, the operation aims to bn). building. Further information is available respond to the financing requirements of at www.ombudsman.europa.eu social housing bodies.
Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info 12 Friday 18 September 2009 N° 3820 EUROPOLITICS
In Brief
ETUC wants “guarantees” from EIB energy loan in Italy Dragados cleared to buy Pol-Aqua Barroso The European Investment Bank (EIB) The European Commission granted Now that the reappointment of José and Centrobanca (UBI Banca Group) clearance, on 17 September, to Manuel Barroso as president of the signed a €200 million framework loan, the acquisition of sole control of European Commission is official, the on 17 September, for financing energy Przedsiebiorstwo Robót Inzynieryjnych European Trade Union Confederation efficiency and renewable energy projects. Pol-Aqua S.A. of Poland by Dragados SA (ETUC) wants to see a “clear The loan will primarily be used for of Spain. Pol-Aqua provides construction commitment and guarantees on social small and mid-sized projects but also for services, in particular engineering, waste issues” from him. According to the bigger schemes. In addition to energy treatment, roads and pipelines. Dragados ETUC, “In a period of social insecurity efficiency projects, hydroelectric, wind, is active in construction, dredging, civil that is expected to continue at least photovoltaic and biomass plants will engineering and concessions related to until 2010, social guarantees are more also be eligible. Centrobanca will be roads and railways. necessary than ever”. The confederation responsible for identifying projects, which wants to take him up, in particular, on his will then be submitted to the EIB for recent declarations on “new rules on the approval. implementation of the Posted Workers Directive or even as revision if necessary”.
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EU Agenda
Friday 18 September (Organisation for Economic Cooperation Upcomings and Development) Development Assistance European conferences 19 September, Bydgoszcz (Poland) Parliament Economic and International seminar on ‘Diverse cities, The President’s diary creative cities’ Oswiecim, Poland Social Committee Subject: The concept of creative city n 19:00-19:30: Participation in the 18-19 September, Sofia (Bulgaria) celebrates cultural diversity through the conference ‘1939-1989: Time of guilt and n Public hearing of the Single Market promotion of local heritage. It is based on hope’ Observatory on ‘Bulgaria in the the idea that culture can play an important European Single Market - Civil society role in urban renewal and improvement of findings’, organised in cooperation with daily life. the Economic and Social Council of Organisers: Congress of Local and Regional Council of the Republic of Bulgaria. With the Authorities of Europe and the City of participation of Totyu Mladenov, Bulgarian Bydgoszcz Ministers minister for labour and social policy, and Contact: Tel: +33(0)3.90.21.50.86 Political and Security Committee Lalko Dulevski, president of the Economic – [email protected] (PSC) and Social Council of Bulgaria Venue: Ignacy Jan Paderewski Pomeranian Brussels Philharmonic ul. Andrzeja Szwalbego 6 Brussels, at the EESC - 85-080 Bydgoszcz (Poland) Ministerial conference on the EU n Press conference following the visit to Strategy for the Baltic Sea Region China of President Sepi 25 September, 12:30, Brussels 17-18 September, Stockholm Promoting early language learning: technical press briefing Saturday 19 Subject: With its Europe-wide information European campaign together with various events September being held in key countries, the European Commission wants to put the spotlight on Commission early language learning. The campaign is Travel and visits European mainly directed towards parents. n Participation of Joaquín Almunia in the The spokesperson of Leonard Orban will Foro Nueva Economia in Madrid Commission introduce the campaign and a scientific n Speech by Joaquín Almunia ‘EU and Travel and visits expert on the subject of early language G20 strategies for a sustainable recovery’ n José Manuel Durão Barroso visits Ireland learning is expected to be present. at the 4th conference on macroeconomics n Margot Wallström in Budapest: press Organisers: ICWE and the European (Funadación Rafaël del Pino) conference with the editors, within the Commission n Janez Potocnik at the Info Day on MTV campaign against climate change: Contact: Juliane Walter, Tel.: +49 (0)30 the ‘Africa Call’ for research proposals ‘Play to Stop’; speaks at youth forum about 310 18 18-0, [email protected] (Borschette Bldg) climate change (Millenaris Theatre); ‘Play Venue: European Commission, Press n Karel De Gucht receives Etienne to Stop’ MTV concert within the energy Room, Berlaymont (BERL -1) Davignon, former European commissioner and climate change campaign (Millenaris www.icwe.net n Karel De Gucht receives Eckard Theatre) Deutchser, chair of the OECD
Sold by subscription only © reproduction strictly prohibited in any language www.europolitics.info 14 Insight Friday 18 September 2009 N° 3820 EUROPOLITICS
Insight EU in Asia
Economic giant, political dwarf
By Sébastien Falletti in Seoul opportunities in the fastest growing eco- it is usually ranked number two, behind nomic region in the world. Still, many China. When it comes to investment, The EU has become a key trading European citizens and workers perceive the EU is often the first source of foreign partner of the Asia-Pacific region, but it Asia rather as a threat than an opportu- capital, like in South Korea. This ‘surge’ struggles to turn this economic leverage nity. Transforming its growing economic is explained by two factors, according to into political clout. Like never before presence in Asia into tangible political Park Sung-Hoon, professor of economics in history, European and Asian econo- influence remains a key challenge for at Korea University. First, the 2004 and mies have become intertwined over the EU policy makers for the next decade. 2007 enlargements of the EU, which last decade. In 2007, Asian member have mechanically increased the size of countries of ASEM (Asia-Europe Meet- Success stories the EU economy. Secondly, a strategy ing) accounted for 32% of EU exports Contrary to widespread belief, ‘Europe of diversification of exports destinations and absorbed 18% of European exports, Inc’ is doing well in Asia and has been followed by many Asian countries that according to Eurostat. While products expanding its positions and market have tried to reduce their reliance on ‘Made in China’ have been flooding shares over the last decade. During that the US market. shops on the Old Continent over the last period, the EU has overtaken the US in However, the competitiveness and decade, consumers in emerging Asia are terms of trade volume and investment high quality of European products is increasingly attracted to expensive Euro- in most countries of the Asia-Pacific also a key rationale behind this success pean items. The EU’s large firms as well region. Europe has become the first story. Europe is synonymous with high as many SMEs are seizing new business trading partner of Beijing and elsewhere standards for Asian firms and consumers.
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