The Week in Europe 07/09/2000 - 14/09/2000

Austria's EU partners agree to lift diplomatic sanctions

EU Member States decided on 12 September to lift the diplomatic sanctions they had imposed on Austria after the far-right Freedom Party joined the government in February. The decision was taken by the 14 other EU countries after a report drawn up by a panel of three 'wise men' gave the Austrian government a clean bill of health on human rights and recommended the ending of sanctions. The 14 said in a statement from the French Presidency that the sanctions had been effective and could now be lifted. However, the other 14 Member States would continue to monitor the influence of the Freedom Party on the policies of the Austrian government. In addition, they said that the EU should consider how to foresee and respond to any similar situations in the future.

Rights Charter takes shape

The Commission has given its backing, in principle, to a draft Charter of Fundamental Rights of the EU. Member States decided at the Cologne summit in June 1999 that the Charter would be proclaimed in December this year, to give added emphasis to rights that people already enjoy in the EU. The Commission believes the Charter could make a useful contribution by making it clear that the Union cannot be based only on economic considerations. Its Communication, adopted on 12 September, notes that the Charter will not widen the powers of the EU nor require any changes to Member States' constitutions. The draft Charter was published on 28 July, having been produced by a convention appointed by the European Council in October 1999; it is headed by former German President Roman Herzog.

See the website at http://db.consilium.eu.int/df/default.asp?lang=en . [Background text: IP/00/995]

'Growth has social dimension'

Combining competitiveness and social cohesion is the principle underlying economic progress in the EU, Commissioner Anna Diamantopoulou told the Trade Union Congress in Glasgow on 12 September. Europe could raise living standards by 20-25% over five years, if it built a competitive and inclusive knowledge economy that combined the potential of the labour force and high investment, she said. The pace of change demands forward-looking approaches from governments, workers, businesses and unions, she said. However, poverty, exclusion and discrimination had to be tackled: Europe could not build a peaceful and prosperous society with 18% of the EU population below the poverty line. The negative effects of social exclusion such as crime and ill health spill over into society at large, Diamantopoulou stressed. This meant the economic benefits of good social policy were consistently undervalued, and the costs overstated. She also said the euro had a central role to play by promoting stability and taking the roller-coaster out of economic management. Businesses could then concentrate on the long-term pursuit of quality and efficiency, and governments could focus on the long-term use of economic and human resources. [Background text: SPEECH/00/298]

Gas liberalisation takes effect

Greater competition in the internal gas market will soon affect prices, Commissioner Loyola de Palacio said on 13 September. Most EU Member States have passed legislation to open their markets to competition, as required by the 1998 Gas Directive, according to an initial assessment by the Commission. However, the Commission is sending formal infringement notices to France, Luxembourg and Portugal because of delays in implementation. It will analyse the detailed position in all 15 Member States over the next few weeks. Despite these delays, the average level of market opening has been much higher than the 20% minimum required: around 80% of total gas demand by 10 August (the deadline for notifying implementation). The figure was 100% in the UK and Germany. [Background text: MEMO/00/52]

Clearer egg labelling proposed

Shoppers would be able to see whether eggs were free range, from caged hens or other forms of production, under labelling proposals put forward by the Commission on 7 September. Replacing a voluntary scheme, the measure would apply to eggs put on sale in the EU, including those from non-EU countries. The requirements would include labels on eggs and packs such as 'free range', 'semi-intensive', 'deep litter', 'perchery' and 'from caged hens'. Commissioner Franz Fischler said consumers were concerned about how eggs were produced, and the scheme would help them make an informed choice. It would also back up animal welfare rules agreed last year for protecting laying hens, he said. [Background text: IP/00/982]

Olympics ease TV restrictions

Australia has lifted restrictions on media coverage of the Olympic games, following representations from the Commission. Foreign TV news agencies, such as Reuters and Associated Press, will now be entitled to permanent passes not available under the previous arrangements planned for Sydney. The organisers had originally intended to limit access by foreign media that had not bought exclusive rights to transmit the events. The EU and the USA said that this did not appear to be consistent with Australia's commitments under world trade rules. Commissioner Pascal Lamy welcomed the change, which opened up access to media coverage of the Olympic Games on a non-discriminatory basis. [Background text: IP/00/996]

Rules for dealing with public

The Commission has adopted a code of conduct to ensure its officials deal courteously and efficiently with the public. They are expected to reply to letters within 15 days, and, on the telephone, to identify themselves or their department and to return calls promptly. Officials must also allow all those with an interest in proposals or decisions to make their views known directly to the Commission, ensure that their decisions are proportionate and consistent, and make clear the reasons for decisions and arrangements that exist for appeals. Overall, they must be courteous and impartial in their dealings with the public. The code of good administrative behaviour, which comes into force on 1 November, will be legally binding on individuals and on the Commission as an institution. It will be supported by a programme of training and publicity, and monitored regularly. [Background text: IP/00/999]

'VAT must be paid on road tolls'

VAT must be paid on tolls for using roads, bridges and tunnels operated by the private sector, the European Court of Justice ruled on 12 September. The decision concerns cases that the Commission brought against five Member States (Ireland, the UK, France, the Netherlands and Greece). It maintains that VAT should be levied because the use of a road, bridge or tunnel constitutes a service under the sixth VAT Directive (77/388). The effects on private tolls are unclear; it will depend whether operators decide to pass on the savings they will now make (by being able to deduct VAT, for the first time, from their construction and maintenance costs), or increase their profit margins. Professional road users will be entitled to deduct the VAT that they pay in tolls. France is the Member State likely to be affected the most, because of its extensive network of toll motorways. The court ruled that public sector bodies operating such tolls are not subject to VAT.

More staff sought for key areas

Key areas such as competition, foreign policy, consumer and health protection, and environment policy would gain extra staff, under a proposal made by the Commission on 8 September. Two-thirds of the 1,254 fresh posts it has requested over the next two years would be covered by restructuring and an early retirement plan (with no overall effect on the budget). The extra positions are vital if the Commission is to carry out its core tasks and meet its policy priorities satisfactorily, said Commissioner Michaele Schreyer. The shortage of staff had been criticised by the European Court of Auditors and a Committee of Independent Experts. Subsequently an in-depth review of staffing requirements took place between April and July this year. The cost of the measures would be 44m euro (1.5bn CzK) in 2001. [Background text: IP/00/988]

ECSC assets to fund research

Income from the 1.6bn euro assets of the European Coal and Steel Community (ECSC), which comes to an end in 2002, should fund research, the Commission has proposed. It would focus on boosting competitiveness, growth and employment in the coal and steel industries. The plans set out by the Commission on 7 September envisage annual net revenue of around 45m euro from the ECSC's assets, which would be transferred to the European Community. Wide-ranging debate took place in the 1990s about the future of the ECSC, whose treaty expires on 23 July 2002. [Background text: IP/00/984]

Health statistics on the EU have been published by Eurostat as Key Data on Health 2000. It includes data on population, lifestyle issues, health risks and status, mortality, and health care systems. The guide also covers Iceland, Norway and Switzerland, with data from relevant international sources. [Background text: ES 103/2000]

Diary Dates

Informal ECOFIN Council 9-10 September Versailles

General Affairs Council 18-19 September Brussels

Transport Council 20 September Brussels

European Parliament session 20-21 September Brussels

News on enlargement

Chief negotiators met in Vilnius

Chief negotiators and senior officials from Bulgaria, Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia discussed the progress of accession negotiations in Vilnius on 13-14 September 2000.

This was a first meeting of Chief negotiators and senior officials from all candidate states since the Helsinki European Council decision to launch accession negotiations with Bulgaria, Latvia, Lithuania, Malta, Romania, Slovakia. Mr. Eneko Landaburu, European Commission's Director General for Enlargement, and Mr. Jacques Faure of the European Integration Department of the French Foreign Ministry under the current French Presidency of EU took also part in the discussion.

The participants shared their negotiating experience and discuss the future of the EU's enlargement. The agenda of the meeting on 14 September taking place in the Vilnius Town Hall included a discussion on the Intergovernmental Conference (IGC) and on the European Commission's Communication strategy for enlargement.

The Representative of Turkey was also invited to join the discussion on the IGC and the Communication strategy.

"This gathering will be an occasion to assess the progress in the negotiations and to crystallise opportunities for future co-operation", - commented the host of the meeting, Lithuania's Chief negotiator Vygaudas Ušackas. According to him, the fact that twelve countries negotiate their membership in the EU with a perspective of accession in a foreseeable future creates a qualitatively new political situation in Europe. Mr Ušackas further stressed the need to preserve the consistency, predictability and momentum of the enlargement process, which is a historic development towards secure and prosperous Europe.