The Week in Europe 02-08/06/01

EU news in brief

Commission to negotiate agreements with Cyprus, Malta and Turkey for participation in EU programmes

European Union's Council of Ministers gave a mandate to the Commission to negotiate "framework agreements" with Cyprus, Malta and Turkey for their participation in EU programmes like the Research & Development Programme or education and vocational training programmes. These countries are already participating or preparing to participate in a number of programmes. However, the proposed "framework agreements" will greatly accelerate the procedures needed to start participating other programmes. In addition, these agreements will allow Cyprus, Malta and Turkey to participate in all programmes open to the candidate countries of Central and Eastern Europe, including those for which they were not previously eligible. [Background paper IP/01/777]

April 2001 : Industrial producer prices rose by 0.3% in euro-zone ; prices up by 0.2% in EU15

The euro-zone industrial producer price index rose by 0.3% in April 2001 compared with the previous month, Eurostat estimated on 5 June. It increased by 0.1% in March. EU15 prices rose by 0.2% in April, they were stable in March. In April, the evolution of the different sectors was similar in both the euro-zone and the EU15. Prices for non-durable consumer goods increased by 0.3% and for capital goods by 0.1% in both areas. Intermediate goods posted a gain of 0.4% in the euro-zone and of 0.3% in the EU15. The index for durable consumer goods increased by 0.2% in the euro-zone and by 0.1% in the EU15. In April 2001 compared to April 2000 industrial producer prices increased by 4.1% in the euro-zone and 3.6% in the EU15. Prices for intermediate goods rose by 5.7% in the euro-zone and by 5.4% in the EU15. For capital goods, durable and non-durable consumer goods the annual rates were identical to those in the previous month or increased slightly in the euro-zone and in the EU15.

Commission boosts security on the Internet

In response to the request by the Stockholm European Council on 23-24 March 2001, the European Commission launched a series of policy recommendations to make the Internet safer for citizens and business. As the use of network and information systems spreads, the need for network security grows. Erkki Liikanen, European Commissioner responsible for Enterprise and Information Society said, "Internet has become a truly global network. Its openness has been the source of its success. But this openness also entails certain risks and that is why we need a strategy at European level to tackle existing and emerging security threats." The Communication defines network and information security, describes the main security threats viruses, hacking, denial of service, interception, but also natural disasters - and concludes that there is a need for a more collaborative approach to solving the problems. [Background paper IP/01/794]

The Commission acquires an immediate response capability for dealing with humanitarian emergencies

The European Commission has adopted a new decision-making procedure covering 'primary emergency aid' which will enable it to respond immediately in future to emergency humanitarian situations, making it not only one of the biggest donors in the world, but also one of the fastest. The decision will allow the Commission to make a significant contribution to saving lives all over the world whenever disaster strikes and people are in great danger. According to Commissioner Poul Nielson, the new procedure responds to the urgent requirements of the beneficiaries of humanitarian aid and is in keeping with the ongoing process of reform in the Commission. "I am convinced that it will lend practical and effective weight to our solidarity measures in favour of those in distress" says Commissioner Nielson. In practice, it will enable the Commission to adopt financing decisions and mobilise the requisite relief agency funding within 24 to 48 hours compared to 5 days previously and so help the arrival and deployment of emergency relief. [Background paper IP/01/801]

New rules for state-funded advertising of farm products

The European Commission has adopted new guidelines on the use of state aid to advertise agricultural products. The guidelines allow the regional origin of products to be promoted on condition that the internal market is not infringed. Aid for advertising quality products may be granted where these products clearly meet higher standards, or have a specific origin. Following the introduction of compulsory beef labelling, the new rules also set out how the advertising of traceability systems may be subsidised. The guidelines forsee a maximum aid of 50%, or 75% for certain products from SMEs from disadvantaged regions. The new guidelines will apply to new state aids, including pending notifications, from 1 January 2002. Commenting on the new rules Franz Fischler, Commissioner for Agriculture, Rural Development and Fisheries, said "Our farmers produce a wide range of high quality food products, especially of regional origin. The new guidelines fit well into the overall policy of the Commission to increase consumer awareness of the variety of EU quality products. Before drawing up the new rules, we have listened carefully to the Member States. This proposal will allow a proper marketing of these products and will give the consumers what they increasingly demand : quality and information."

[Background paper IP/01/796]

Financial services: Commission creates two new committees on securities

The European Commission has adopted two Decisions to create a European Securities Committee (ESC) and a Committee of European Securities Regulators (CESR). The Commission's initiative responds to the Stockholm European Council Resolution in March on more effective securities markets regulation, in which the European Council welcomed the intention of the Commission to immediately establish these committees. The two advisory Committees will play a crucial role in assisting the Commission in its task of implementing the Financial Services Action Plan and speeding up the legislative process. The ESC will be composed of high-level representatives of the Member States. It will advise the Commission on issues relating to securities policy. At a later stage, when implementing powers are devolved to it through Co-decision procedure, it will also act as a regulatory committee. The CESR is set up as an independent advisory body composed of representatives of the national public authorities competent in the field of securities in the Member States. It will advise the Commission on the technical details of securities legislation. It will also help enhance co-operation between supervisory authorities so as to ensure more consistent day-to-day implementation of EU legislation in the Member States. [Background paper IP/01/792, MEMO/01/213]

Report on the work of the EU/Albania High Level Steering Group in preparation of the negotiation of a Stabilisation and Association Agreement with Albania

The Commission has adopted a report on the progress made by Albania in preparation of the negotiation of a Stabilisation and Association Agreement. The report, which analyses the various political, economic and technical factors, concludes that it is appropriate to open negotiations for a Stabilisation and Association Agreement with Albania. Although progress has been achieved in recent years, Albania still has some way to go before being in a position to meet the obligations of an Stabilisation and Association Agreement. However, if the current pace of change is sustained and if sufficient priority is given to strengthening administrative capacity during the negotiating and transition periods, sufficient improvements could be made by Albania. The perspective of opening Stabilisation and Association Agreement negotiations is seen by the Commission as a way of helping to maintain the momentum of recent political and economic reform, and of encouraging Albania to continue its constructive and moderating influence in the region. [Background paper IP/01/802]

Commission and EIB launch partnership to foster research and innovation

On 7 June, Research Commissioner Philippe Busquin and Philippe Maystadt, President of the European Investment Bank (EIB) have signed a memorandum enabling the two institutions to cooperate in the funding of European research. The main objective of this action is to make most of the grants given by the European Commission and the loans/risk capital granted by the EIB for research projects, research infrastructure and innovative enterprises. This objective shall be achieved by better co-ordinating the respective funding of both parties as well as through establishing synergies between the Research Framework Programme of the Commission and the Innovation 2000 initiative of the EIB. Fotis Kafatos, Director General of the European Molecular Biology Laboratory (EMBL), who is currently establishing a technology park for innovative biotechnology companies within the organisation, will illustrate the practical benefits of this collaboration. Commenting the signature of the joint memorandum Commissioner Busquin said: "When funding research and innovation the Commission and the EIB have always shared a number of common objectives such as fostering innovation and a competitive economy but now we will also combine our funding possibilities to optimise the effect of the money invested." [Background paper IP/01/807]

Anna Diamantopoulou : Live interactive TV event Thursday 7 June. Young Europeans will challenge the Commissioner on 'New economy, new society opportunities, threats, or both?'

On June 7, young people at three university sites in Europe debated with the European Commissioner for Employment and Social Affairs. Anna Diamantopoulou answered questions in Brussels, where she is joined in the studio by former BBC presenter Michael Jordan. The three active sites (picture and sound from Brussels + sound return) were: Athens (Greece), Prague (Czech Republic) and Gothenburg (Sweden). There were also a number of passive university sites (picture and sound from Brussels & comments via the www) throughout Europe. This was the second programme in a series of 12 featuring leading EU personalities as well as inquisitive and provocative young people. The interactive debate network acts as communication hub between European personalities/politics and young people. The objective is to establish a constant dialogue and feedback process to enable better understanding of political action, attitudes and expectations. Website forum open to questions and discussion after the event can be found at http://www.interactive-events.com/economysociety.

[Background paper IP/01/800]

Structural funds - Commission approves Euro 184 million support for Hessen

The European Commission has approved a development programme for the German region of Hessen covering the period 2000-2006. This programme amounts to EUR 184 million in financial support from the European Union. It concerns areas in economic and social reconversion, and as such eligible to "Objective 2" of the Structural Funds. The European funding will attract a further EUR 123 million in investment from the public sector and EUR 235 million from the private sector, for a total spending of EUR 542 million. The programme is intended to promote the region's development and structural adjustment. It aims to create 3200 new jobs, to safeguard 8000 existing ones, to create 900 modernised training places and to develop 200 hectares of commercial sites. This decision is part of a series currently being adopted by the Commission to launch the new Structural Funds Programming period In Germany. Further information can be found at : http://www.inforegio.cec.eu.int

[Background paper IP/01/809]

Commission helps Candidate Countries plan for investment in a healthy environment

The European Commission has adopted a Communication on environmental financing in the Candidate Countries. The Communication examines the financial challenges that compliance with EU environmental legislation will pose for the countries preparing to join the Union, and gives guidance on how to best meet them. It recommends candidate countries to develop coherent and prioritised investment strategies. It proposes criteria for setting the priorities, and encourages the countries to leverage available funds to make the most of scarce resources. This Communication sets out the strategic objectives and looks at ways of enhancing and leveraging available finance. It describes how Community technical assistance will focus on those areas where preparations for compliance have been lagging behind, such as air pollution projects and directives involving private sector expenditure. The EU will also work closely with Candidate Countries on their directive-specific financing plans for problem areas in waste and air pollution and training for local authorities. [Background paper IP/01/811]

First quarter of 2001 - Euro-zone and EU15 GDP up by 0.5% ; +2.5% compared to first quarter of 2000

Euro-zone and EU15 GDP both grew by 0.5% during the first quarter of 2001, compared to the previous quarter, according to first estimates out on 8 June from Eurostat. These figures follow a rise of 0.6% both for the euro-zone and the EU15 in the fourth quarter of 2000. Compared to the first quarter of 2000, GDP grew by 2.5% in both the euro-zone and the EU15 during the first quarter of 2001, after having recorded a growth of 2.9% in both areas in the previous quarter.

European Climate Change Programme (ECCP)

The European Commission has taken many climate-related initiatives since 1991, when it issued the first Community strategy to limit CO2 emissions and improve energy efficiency. These include a proposed directive to promote electricity from renewable energy, voluntary commitments by car makers to improve fuel economy by 25% and proposals on taxation of energy products. However, it is clear that action by both Member States and the Community needs to be reinforced if the EU is to succeed in cutting its greenhouse gas emissions to 8% below 1990 levels by 2008-2012 as the Kyoto Protocol requires. The EU Council of environment ministers has acknowledged the importance of taking further steps at Community level by asking the Commission to put forward a list of priority actions and policy measures. Text of the June 2001 can be found at

http://europa.eu.int/comm/environment/climat/eccp.htm#key

Joint statement on the Irish referendum by Goran Persson, President of the European Council and Prime Minister of Sweden and Romano Prodi, President of the European Commission

We are very disappointed at the result of the referendum in Ireland. Nonetheless we fully respect the outcome of this democratic process. We know that the Irish Government and the Irish people are committed to the enlargement process. We trust that the Irish Government will make every effort to secure ratification within the agreed time frame. The Presidency and the Commission are ready to contribute in every possible way to help the Irish Government find a way forward, taking into account the differing concerns reflected by this result, without changing the substance of the Nice treaty. Meanwhile, of course, the work of the Union must continue and the Member States and the Commission will pursue the enlargement negotiations with undiminished vigour and determination, in line with our firm commitment given to the applicant countries. The objective of an enlarged Europe must be realised. We must now find the most appropriate way to pursue the goals decided upon at Nice. Our will to secure the accession of new members must be clearly demonstrated. The Presidency and the Commission are in the process of consulting the Irish Government and all other Member States in order to assess all the aspects of the outcome of the referendum. This situation undoubtedly underlines the need for greater efforts from all of us to explain Europe to our citizens and to involve them more thoroughly in the debate about the Union, its role and its future direction.

Enlargement news

Enlargement negotiations

"This has been an intensive and successful week when it comes to enlargement. The Swedish Presidency has been able to broker agreements among Member States in relation to the Free Movement of Workers and Capital chapters. We have engaged in discussions on these chapters with the Candidate Countries and we have been able to provisionally close the chapter of Free Movement of Capital with the Czech Republic. We have also been able to close the Environment chapter with another three countries. This is a significant and very welcome progress," says the Swedish Ambassador Gunnar Lund.

Newly closed chapters are: Hungary - environment and customs union (total 19), Czech Republic - environment, social policy and the free movement of capital (18), Estonia - environment ( 19), Slovenia external relations, culture/audiovisual policy (20), Poland social policy (16), Malta - free movement of goods, freedom to provide services, energy (16). For overview of state of negotiations see http://www.evropska-unie.cz/art.asp?id=706.

[Background press release]

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