Brussels calling, Belgian EU Presidency, Business Newsletter, 15/12/2010, Issue 8
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8/8/2019 Brussels calling, Belgian EU Presidency, Business Newsletter, 15/12/2010, Issue 8
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Belgian EU Presidency Business Newsletter
Brussels calling
15/12/2010 Issue 8
European Council to put all hands on deckto restore confidence in Europes economy
The stability and the credibility of the euro is of para-
mount importance both for the European and the global
economy. However, unsustainable pub-
lic debt, financial market dysfunctions,
and distrust vis--vis the euro signifi-
cantly affect businesses activities. The
European Council meeting on
December 16-17 needs to act urgently
in order to safeguard stability and trust
in the euro, on the one hand, and to
boost EU growth, on the other hand.
This is the only way to sustain todays
fragile recovery.
A series of important decisions have already been taken
to strengthen economic governance by reinforcing the
rules on fiscal and macroeconomic surveillance.
Nevertheless, persistent pressure on the sovereign debt
and financial markets of some member states clearly indi-
cates the need for promptly putting in place a robust per-
manent crisis resolution system within the eurozone.
Furthermore, beyond crisis containment measures, it is
equally important for the EU and especially its member
states to speed up structural reforms and start deliver-
ing tangible results in the coming months.
With the upcoming first European semester early spring 2011,
the EU member states should demonstrate their willingness
and capacity to deliver on the promises made to get the
European economy back on the track of sustainable growth.
Editorial
Brussels calling - 1 -
CONTENTS Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
General affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
In the spotlight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Economic and financial affairs . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Transport, telecommunication and energy . . . . . . . . . . . . . . . . 7
In the spotlight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
BUSINESSEUROPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Justice and home affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Events and meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Employment and social affairs . . . . . . . . . . . . . . . . . . . . . . . . . 14
Economic and financial affairs . . . . . . . . . . . . . . . . . . . . . . . . . 17
Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Team presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Diane Struyven,Director of the European
Department of the FEB
Daily updated info on http://eupresidency.vbo-feb.be
General affairs
General Affairs Council (November 22, 2010)
On November 22, the General Affairs Council held a
meeting chaired by Belgian Minister of Foreign Affairs
Steven Vanackere. On the agenda were inter aliathe fol-
low-up to the previous and preparation for the next
European Council, and the 2011 work programme of the
European Commission. The Council was also informed by
the Commission of developments regarding a commonregister of lobbyists that the Commission and the
European Parliament are preparing and which is expected
to become operational in 2011.
The Council took note of a document drafted by the
Belgian Presidency regarding the follow-up to European
Council meetings. This note states that in December the
Council will report back to the European Council on the
question of how the impact of pension reform should be
accounted for in the Stability
and Growth Pact. Regarding the
implementation of the Europe
2020 strategy, the Presidencywill table a comprehensive
report at the General Affairs
Council in December. Work con-
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tinues as well on important legislative proposals on the
regulation of financial services, specifically regarding
derivative markets, short-selling and credit default swaps,
deposit guarantee schemes and investor compensation
schemes. Concerning levies and taxes on financial institu-
tions, the Economic and Financial Affairs Council was
expected to adopt areport during its meeting
on December 7 (and in
the meantime it did so).
In the field of external
relations, the EUs High
Representative Catherine
Ashton will prepare a
first progress report on
the relations with the
EUs strategic partners,
to be presented to the
European Council in
December.
The General Affairs Council also looked at the upcoming
European Council, scheduled for December 16-17, tak-
ing stock of an annotated draft agenda. EU Heads of
State and Government will first of all focus on economic
policy. A decision on the outline of a permanent crisis
mechanism to safeguard the financial stability of the
euro area is expected, as well as on the limited treaty
change required to create such a mechanism. The
European Council of October 28-29 invited its PresidentHerman Van Rompuy to undertake consultations with
regard to the latter topic. On December 16-17, the
European Council will also have a general discussion on
the EU budget, specifically addressing the question of
how spending at the European level can appropriately
reflect budgetary consolidation efforts of member states.
The Belgian Presidency is confident that an agreement on
the 2011 budget of the EU will be found before the end
of December. A third topic on the agenda will be the
EUs external relations with its strategic partners.
Initially, the European Council of December was supposed
to be dedicated to the topic ofresearch, development
and innovation. This topic has now been postponed to
early 2011.
Finally, the European Commission presented its work
programme for 2011. In its communication of October
27, the Commission set out five political priorities:
dealing with the economic crisis and supporting the
recovery;
restoring growth for jobs by accelerating the Europe
2020 reform agenda; building an area of freedom, justice and security;
launching negotiations on a new EU budget;
pulling the EUs weight on the global stage.
EU US Summit (November 20, 2010)
On November 20, the American President Barack Obama and
the respective Presidents of the European Council and the
European Commission, Herman Van Rompuy and Jos Manuel
Barroso, held a bilateral
EU US meeting in Lisbon. They
confirmed the close partnership
between the EU and the US. They
held an exchange of views on three
key areas of cooperation, i.e. eco-
nomic growth, global challenges
such as climate change and interna-
tional development, and security.
Regarding the economy, the results of the recent G20 Leaders
Summit were discussed, and all parties reaffirmed their com-
mitment to avoid unsustainable imbalances, as well as com-
petitive devaluations or exchange rate policies which do not
reflect underlying economic fundamentals. The year 2011 was
also recognized as a critical window of opportunity to conclude
the Doha Development Agenda in the framework of the World
Trade Organization (WTO). Furthermore, the EU and the US
want to put new life into the Transatlantic Economic Council
(TEC) to promote and stimulate transatlantic trade. The TEC
was inter alia asked to identify ways to improve regulatory
consultation and cooperation, share best practices and devel-
op joint principles to promote regulatory compatibility, espe-
cially in promising new technologies and sectors. The EU US
Energy Council, which convened on November 19, was invited
to enhance cooperation on the development and deployment
of clean energy technologies (e.g. regarding the establishment
of common standards and the convergence of regulatory
frameworks), and to foster the exchange of information and
scientists. Regarding climate change, the EU and the US
pledged to promote progress at the Cancn Summit. Finally,
the Presidents expressed their intention to cooperate more
closely in the field of international development and security.
In the latter policy area, the creation of an EU US Working
Group on Cyber-security and Cyber-crime was agreed upon.
The EU US Summit took place in thesidelines of a two-day NATO Summit
which was also held in Lisbon. NATO
agreed upon a new Strategic Concept
that sets out a vision on the alliances role in the coming
decade. It was also decided to develop a missile defence
capability to protect all NATO territories. Remarkable was the
presence of Russian President Dmitry Medvedev on Saturday.
Russia was invited by NATO to deepen its cooperation in areas
of common interest, including in the creation of a missile
defence system. In a statement after the NATO Summit,
Jos Manuel Barroso said that the EU can make a specific and
important contribution in preventing emerging crises andaddressing their root causes.
In the spotlight
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Competitiveness Council (Nov. 25-26, 2010)
On November 25-26, the Competitiveness Council held a
meeting under the alternate presidency of Jean-ClaudeMarcourt (Walloon Minister of Economy), Sabine Laruelle
(Federal Minister of the Self-Employed, Agriculture and
Science Policy), and Benoit Cerexhe (Brussels Minister of
Scientific Research). Discussions dealt inter alia with indus-
try, research and innovation and space topics.
In the field of industry, the Council held a discussion on
how to lever the EUs industrial structures and policies
to foster job
creation and
growth. This
happened on
the basis of
the
Commissions
communica-
tion on the
Europe 2020
flagship initia-
tive An integrated industrial policy for the globalisation
era (see boxed text), as well as a questionnaire drafted by
the Belgian Presidency which asked for the ministers opin-
ion on prioritary measures and special initiatives for smalland medium enterprises (SMEs). The Council participants
highlighted inter alia the need to exploit synergies
between industrial policy and other EU initiatives (such as
the Single Market Act or the Digital Agenda), the impor-
tance of a smart and simple regulatory framework, the
promotion of innovation clusters across the EU and the
need to take into account the entire value chain. The
debate served as input for the conclusions of the
Competitiveness Council which were agreed upon on
December 10.
In a letter sent to Jean-Claude Marcourt, BUSINESSEU-
ROPE said that in the field of industrial policy, the EU
should not seek to pick winners, but define policy instru-
ments which are neutral sector- and technology-wise.
Measures should also be put in place to make the whole
of European industry more innovative and sustainable.
Finally, at the international level, the future EU industrial
policy should be flanked by an appropriate international
trade policy, which secures inter alia undistorted access
to raw materials.
A second agenda item of the Competitiveness Council wasthe 7th Space Council between the EU and the European
Space Agency (ESA), which was created in May 2004 as the
common basis for the progressive and joint development
of a coherent European space policy. This meeting was
attended by European Commissioner for Industry and
Entrepreneurship Antonio Tajani. First a policy debate tookplace which addressed questions such as how the EUs ini-
tiatives in the field of space policy can contribute to the
competitiveness and innovative capacity of the European
economy, and what is the best way to ensure the swift
implementation and exploitation of the projects Galileo
(European satellite navigation system) and GMES (Global
Monitoring for Environment and Security).
The latter two initiatives are expected to yield significant
opportunities for the development of new innovative mar-
kets. After the debate, the Space Council adopted a reso-
lution titled Global challenges: taking full benefit of
European space systems. The resolution invited the EU,
ESA and their member states to further develop an over-
all space strategy to enable new economic growth and
job creation in Europe, foster its innovation potential,
support world-class scientific progress and contribute to
the development of scientific and technical vocations. It
also calls for the successful deployment and sustainable
exploitation of the Galileo and GMES flagship pro-
grammes, draws attention to the potential contribution of
the EUs space initiatives to the monitoring of climate
change and its effects, as well as to security-related publicpolicy objectives. Finally, the resolution calls upon the
European Commission and ESA to propose a European
space exploration strategy, featuring long-term roadmaps
for the development of new technologies (inter alia in
automated and robotic systems, advanced propulsion,
energy systems and life support systems), as well as inter-
disciplinary innovation and cooperation.
Third, EU Competitiveness Ministers talked about research
and innovation. The
Council held a discus-
sion on the
Commissions communi-
cation on the
Innovation Union
flagship initiative
enshrined in the Europe
2020 strategy (see
boxed text).
After the discussion, the Council adopted conclusions on
the Innovation Union flagship initiative. The key messages
in these conclusions will serve as input for the debate of
the European Council in February 2011 which will addressresearch, development and innovation. The Council identi-
fied a number of priorities for action. The EU and its
Competitiveness
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member states should first of all
adopt a strategic and integrated
approach to innovation which
fully exploits synergies between
and within different EU, national
and regional policies and ensures
greater involvement of all stake-holders. Second, the EU should
create the right framework con-
ditions to create an environment
conducive to innovation. This
includes making access to
research and development (R&D)
funds easier (especially for SMEs),
leveraging private funding by cre-
ating an effective single market
for venture capital funds, simplify-
ing and streamlining European
R&D and innovation programmes,
making strategic use of public
procurement of innovative prod-
ucts and services, facilitating the
free movement of researchers,
knowledge and technology, sys-
tematically applying the think
small first principle, setting up a
digital single market (especially in
the interest of SMEs), and making
the EUs standardisation proce-
dures more efficient. Third, the EUshould maximize the impact and
efficiency of its resources,
notably by prioritizing investment
in education, training, research, development and innova-
tion, by tackling fragmentation, and by facilitating
research and scientific cooperation between European
networks and clusters as well as with third countries. Also
the new European Innovation Partnerships (EIPs) are
welcomed. Finally, ministers agreed in their conclusions to
improve governance and the monitoring process. This
can be done through more horizontal coordination and
the development of indicators to
track progress. At the end of the
conclusions, the Council set out
with which 10 actions the
Commission should start the imple-
mentation of the innovation flagship
initiative.
In a letter sent to Jean-Claude
Marcourt, BUSINESSEUROPE stated
that the EUs regulatory framework for research and
innovation should be further simplified. In addition,more financial resources must be devoted to innovation,
which should be taken into account in the discussion on
an EU budget reform. Finally, BUSINESSEUROPE under-
lined its concerns regarding the discussions on the 2011
budget.
The Council then moved to an assessment of progress
made in the development of the European Research
Area (ERA) on the basis of a Presidency progress report.
It also reflected upon initiatives to complete the ERA,
which was set up in 2000. After
disappointing progress, the
Council published in May 2008
conclusions on the launch of the
Ljubljana Process, aiming at
the full realization of the ERA,
the then primary pillar of the
Lisbon strategy.
Although the Lisbon strategy
eventually failed, the ERA initiative still continues and is
now integrated in the Europe 2020 strategy. With theERA, the EU aims to promote the free movement of
knowledge, technology and researchers, to enhance the
The Europe 2020 strategy, published by the European Commission in March 2010, sets
out 7 so-called flagship initiatives, i.e. 7 areas in which the EU should make signifi-
cant progress by the year 2020. One of these flagship initiatives An integrated
industrial policy for the globalisation era: putting competitiveness and sustainability at
centre stage underlines the importance of industry for the EUs economic future in a
globalized world. The Commission elaborated on this flagship initiative in its communi-
cation of October 28, which was accompanied by member state competitiveness
reports as well as the 2010 Competitiveness Report.
The flagship initiative aims at maintaining and supporting a strong, diversified and
competitive industrial base in Europe,
offering well-paid jobs while becoming less
carbon-intensive. Coordination between
different EU policies affecting industry, atten-
tion to the entire supply chain and a
combination of horizontal and vertical meas-
ures are key.
Important actions proposed by the flagship initiative on industrial policy include:
systematic assessment of the impact of policy proposals on industrial competitive-
ness;
support for the creation and growth of SMEs by facilitating credit access and inter-
nationalisation;
a strategy to strengthen European standardisation;
a new strategy to create the right framework conditions for the sustainable supply
and management of domestic primary raw materials;
an upgrade of European transport, energy and communication infrastructure and
services to serve industry more efficiently.
Europe 2020 flagship initiative An integrated industrialpolicy for the globalisation era: putting competitiveness andsustainability at centre stage
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coherence of European and nation-
al research policies, and to better
align regional and national
research programmes by coordi-
nating them at the EU level. In
2008, 5 ERA initiatives were
defined, respectively relating toresearch infrastructures, joint pro-
gramming, researchers partner-
ship, international science and
technology cooperation, and
knowledge sharing. The Belgian
Presidency now drafted a progress
report on the ERA, which states
that over the past few years a lot
of progress has been made in the
five domains mentioned above,
but also that concrete outcomes
are not yet sufficiently visible.
Many of the same issues which
stood at the centre of the policy
debate a decade ago currently
persist. In its report, the Belgian
Presidency specifically says that
the multiplication of initiatives
and the fragmentation of efforts
slow down the achievement of
concrete results. Hence, comple-
mentarity, prioritisation, coordina-
tion and efficiency should be at thecore of the EUs research policy.
Exchange of best practices, peer
review, respect for the subsidiarity
principle, better policy mixes and
more stakeholder involvement are
part of the solution. In its commu-
nication on the Innovation Union
flagship initiative, the Commission
expressed its intention to com-
plete the ERA by 2014. To this
end, the Commission will inter alia
propose by 2012 an ERA frame-
work and support measures to remove obstacles to mobili-
ty and cross-border cooperation.
The Council also adopted conclusions on joint program-
ming initiatives (JPIs), one of the cornerstones of the ERA,
set up to foster R&D cooperation
in order to better address major
societal challenges of European
or even global scale which
require public research. A first
pilot JPI was launched inDecember 2009, dealing with
neurodegenerative diseases.
Furthermore, a first wave of future JPI themes was adopt-
ed, addressing inter alia agriculture, food security and cli-
mate change, and a healthy diet for a healthy life. A sec-
ond wave of another six JPIs is currently under prepara-
tion. The latter will deal with microbiology, climate,
demography, big cities, water and oceans. In its conclu-
sions, the Council recognized the significant progress
made by the High Level Group on Joint Programming
(GPC Groupe de Programmation Conjointe) since 2008,
and underlined the need to continue with the JPI process.
In addition, ministers listened to a presentation on an
interim evaluation report of the EUs 7th Framework
Brussels calling - 5 -
The Europe 2020 strategy, published by the European Commission in March 2010, sets
out 7 so-called flagship initiatives, i.e. 7 areas in which the EU should make signifi-
cant progress by the year 2020. One of these flagship initiatives Innovation Union
sets out a strategic approach to innovation. The Commission elaborated on this flag-
ship initiative in its communication of October 6.
The flagship initiative intends to boost
the EUs innovative efforts on challenges
like climate change, energy security,
health and an ageing population. It will
use public-sector support to stimulate the
private sector, and should remove bottle-
necks impairing the commercialization of
new ideas, such as fragmented research
systems and markets, lack of finance,
slow standard-setting and insufficient use of public procurement markets as a lever for
innovation. By creating the right framework conditions for innovation and improving
governance, the EU intends to secure its long-term competitiveness. The innovationflagship initiative is closely linked with the headline target of the Europe 2020 strategy
to invest 3% of the EUs gross domestic product (GDP) in research and development
(R&D) by 2020.
Important actions proposed by the flagship initiative on innovation include:
the implementation of European Innovation Partnerships (EIPs) in order to tackle
societal challenges in domains where the EU has the potential to become a leader,
e.g. in active and healhy ageing, energy, smart cities and mobility, non-energy raw
materials and water efficiency;
the creation of an Innovation Union Scoreboard with 25 indicators to track
progress;
measures to improve the access to finance, such as the implementation of a cross-
border venture capital regime and increased involvement of the European
Investment Bank (EIB);
the completion of the European Research Area (ERA) by 2014;
the launch of a major research programme on public sector and social innovation;
the stimulation of public procurement of innovative products and services;
a legislative proposal to modernize and speed up standard-setting within the EU;
the implementation of a cost-efficient and legally certain EU patent.
Europe 2020 flagship initiative Innovation Union
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Programme (FP7), carried out by an independent group
of experts. The underlying report, which was published on
November 18, 2010, says that FP7 is on course and is
making a significant contribution to European science and
the ERA. Difficulties mainly relate to implementation
aspects and include the administrative burden, a lack of
flexibility, and limited involvement of SMEs and women.The report sets out directions for reform and gives ten
concrete recommendations for
improving the functioning of
FP7. Furthermore, ministers held
a lunch discussion on the current
FP7 and the future FP8.
Finally, another round of talks
was held on the translation
arrangements for a future EU
patent (also see In the spotlight
article on the EU patent in this
newsletter). At the (extraordi-
nary) Competitiveness Council of November 10, no una-
nimity could be found on the latest compromise proposal
tabled by the Belgian Presidency. The Council therefore
investigated whether the enhanced cooperation track
by which at least 9 member states can move forward with-
out the participation of other member states would
make it possible to achieve some progress. A couple of
days before the Council session of November 10, the
United Kingdom with the support of the Netherlands,
Austria, Slovenia and Sweden sent a letter to InternalMarket Commissioner Michel Barnier, announcing its
intention to explore the alternative track of enhanced
cooperation. During the Competitiveness Council of
November 25-26, ministers therefore held a public deliber-
ation on a potential enhanced cooperation regarding an
EU patent. Despite very neutral language in the Councils
conclusions on this topic, the outcome of the discussion
was that enhanced cooperation seems possible. The
legal service of the Council stated that enhanced coopera-
tion regarding the EU patent would not be incompatible
with the rules of the internal market. The Commission
pledged to give its full cooperation to the development of
a proposal for enhanced cooperation regarding an EU
patent, should a formal request be made by at least 9
member states. Most importantly, Germany expressed its
support to the idea of enhanced cooperation, as did
Estonia. France and Malta were still considering whether
to join. However, not all member states were fond of the
idea. Poland feared fragmentation of the internal market.
Spain and Italy were said to be already preparing a case
to be brought to the European Court of Justice, should
enhanced cooperation be formally considered.
Nevertheless, the Belgian Presidency decided to push thepatent dossier forward. The last Competitiveness Council
under its auspices took place on December 10 (a full
report on this Council session will appear in the next edi-
tion of this newsletter). In a statement following the
Competitiveness Council of November 25-26, Internal
Market Commissioner Michel Barnier said that the way is
paved to exploit the possibilities offered by the Lisbon
Treaty, thereby referring to the enhanced cooperation
track. During an address on December 2 at the Federationof Enterprises in Belgium (FEB) in the framework of
BUSINESSEUROPEs Council of
Presidents, M. Barnier called
upon Spain and Italy in particu-
lar to support progress in this
crucial dossier.
Other dossiers discussed by the
Council under the any other
business header were first of all
the governance and funding of
the International Thermonuclear
Experimental Reactor (ITER),
currently under construction in Cadarache (France). The
Council examined a cost reduction plan for the ITER proj-
ect and took note of the progress made in improving the
initiatives governance, on the basis of a Commission doc-
ument published on November 9, 2010, titled Towards a
robust management and governance of the ITER project.
ITER is a demonstration project that aims at building the
worlds largest and most advanced nuclear fusion power
plant. The EU, United States, Japan, China, India, Russia
and South Korea participate in the undertaking. The EUprovides about half the funding of the multi-billion euro
energy initiative. In its conclusions of July 12, 2010, the
Council reaffirmed its commitment to the completion of
the project, but called for measures to limit the EUs con-
tribution to the construction of the power plant to 6,6 bil-
lion EUR.
In the field ofclean and energy-efficient vehicles, the
Council took note of the progress made by the Commis-
sion in the implementation of the EU strategy in this
domain, which was adopted on May 25, 2010. The Coun-cil was also briefed on the work programme of the in-
coming Hungarian Presidency (first semester of 2011).
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Transport, Telecommunication and EnergyCouncil (December 2-3, 2010)
On December 2-3, the Transport, Telecommunications and
Energy (TTE) Council convered in Brussels under the alter-
nating presidency of Etienne Schouppe (Belgian State
Secretary for Mobility), Paul Magnette (Belgian Minister of
Climate and Energy) and Vincent Van Quickenborne
(Belgian Minister of Enterprise and Administrative
Simplification). As it was the last TTE Council under the
Belgian Presidency, the agenda was very loaded withtransport, energy and telecommunication items.
In the field of transport, the Council inter alia discussed
ongoing work on a proposed directive establishing a sin-
gle European railway area, which intends to simplify, clar-
ify and modernize the regulatory
framework for the EUs railway sec-
tor in order to improve investment
conditions, strengthen market super-
vision and increase competition. This
second railway package was pre-
sented by the Commission in
September 2010 and will update the
first railway package of 2001, which
consisted of three directives, i.e. on the development of
European railways, licensing of railway undertakings, and
the management of railway infrastructure. The new railway
package intends to boost the competitiveness of the
European railway sector in order to increase its share in
the transport market and contribute to a more environ-
mentally friendly transport in the EU. The current proposal
aims at enhancing competition between railway under-
takings by stimulating transparency and regulating access
to the rail market and rail-related services. In parallel, the
independence as well as the powers of national regulatorybodies would be strengthewned in order to safeguard
non-discriminatory access to rail services, and cooperation
between national regulators on cross-border issues would
be improved. In addition, the financing of rail infrastruc-
ture would be improved by longer-term planning in order
to give investors more certainty.
Finally, track access charges would
be differentiated in order to give
incentives for the modernization of
infrastructure. On the basis of a
Presidency questionnaire, EU
Transport Ministers exchanged views
on the funding of rail infrastructure.
A reduction of track access charges
Brussels calling - 7 -
Economic and Financial Affairs Council(November 28, 2010)
On Sunday, November 28, at an extraordinary meeting,the EU Finance Ministers agreed to grant financial assis-
tance in response to the Irish governments request ear-
lier that week. The ministers followed the opinion of the
European Central Bank
(ECB) and the European
Commission that, in
order to safeguard
financial stability in the
eurozone and the entire
EU, an emergency loan
package to Ireland was
urgently needed.
According to EU Monetary Affairs Commissioner Olli
Rehn, the interest rate of the loans will be set at an aver-
age of 6%. This is in sharp contrast with the 9% the Irish
Republic would have had to pay if it were to obtain the
needed funds on the capital markets.
The package, which is worth 85 billion EUR, comes with a
number of policy conditions attached to it however. First
of all, the banking system needs to be completely
restructured and strengthened. For this to be achieved,35 billion EUR was earmarked. Of this, 25 billion EUR will
be used to set up a contingency fund while the remaining
10 billion EUR is intended to immediately recapitalize the
banks. Secondly, to restore fiscal sustainability, a 15-billion
EUR austerity plan complemented with 50 billion EUR
to cover budget financing needs will have to be imple-
mented to correct the excessive deficit. Thirdly, a number
ofgrowth enhancing reforms especially on the labour
market will have to be put in place to allow a return to
robust and sustainable growth.
During the negotiations, Ireland managed to extend the
deadline to bring its budget deficit back to the EU limit of
3% of gross domestic product (GDP) by one year, until
2015. In addition, the Irish Prime Minister, Brian Cowen,
underlined the deal under no circumstances would lead to
a change to the countrys 12,5% corporate tax rate.
Economic and Financial Affairs
Transport, telecommunication and energy
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for low-noise train wagons and for trains equipped with
the harmonized European train control system (ETCS) for
train safety were also considered.
Another important transport
dossier discussed was the inte-
gration of waterborne trans-port into the EU transport and
logistics chain, which was
already discussed during an
informal TTE Council on
September 15-16 and on which
the Council now adopted con-
clusions. Waterborne transport
which includes short sea shipping (SSS shipping
between ports on Europes coastline) and inland water-
way transport (IWT) currently remains underexploited
within the EU. With the promotion of SSS and IWT, the EU
intends to encourage the move to more environmentally
friendly transport patterns. Moreover, these alternative
waterborne transport modes could alleviate the current
saturation of road transport. In order to stimulate water-
borne transport, the Council endorses in its conclusions
the blue belt concept which aims at creating a European
maritime transport space without barriers in which ships
would be able to operate freely with a minimum of admin-
istrative formalities. Furthermore, the blue belt concept
should be complemented by so-called blue lanes, i.e.
administrative, technological and physical accommoda-
tions granted by customs authorities and ports to ensurethe swift port transit of goods originating from the EU. In
addition, the Council asks for a better alignment of the
motorways of the sea concept (to establish competitive
maritime freight routes between European ports as an
alternative to land
transport) with the
emerging European
multi-modal trans-
port system in order
to exploit synergies.
In its conclusions,
the Council also
focuses on the fur-
ther development
of ports as interfaces between different transport modes,
in order to strengthen the links between waterborne trans-
port on the one hand and transport via road, rail or inland
waterways on the other hand. Regarding port develop-
ment, the Commission is invited to present guidelines on
the application of EU environmental legislation and state
aid. The Commission is also invited to examine how the
weakening of the competitive position of SSS, due to the
higher costs related to the use of low-sulphur bunker fuelin accordance with the emission limits agreed by the
International Maritime Organization (IMO), can be avoid-
ed. Finally, the Council looks forward to the development
of a social agenda for waterborne transport, featuring
ways of integrating careers related to the maritime and
inland waterway sectors in order
to increase labour mobility and
boost employment.
A third transport topic on the
agenda was air cargo security,
following the discovery of parcel
bombs in air cargo recently. The
Council welcomed a report by a
high-level group (set up by the
Justice and Home Affairs Council
on November 8-9) on the strengthening of air cargo secu-
rity. Attached to the report was an action plan, which the
Presidency asked the Commission and the member states
to start implementing at once. The Commission was also
invited to report back on progress made during the next
TTE Council in March 2011. The action plan first of all pro-
poses initiatives to be taken at EU level, such as upgrading
detection methods and cargo security controls, establish-
ing common criteria for assessing risks posed by cargo
from non-EU countries and improving security training for
operators and inspectors. At international level, recom-
mended actions include the promotion of global regula-
tory standards and initiatives to help certain non-EU
countries to enhance their security capacities. All these
actions should contribute to the strengthening and harmo-
nization of EU rules and to the improvement of coordina-tion and exchange of information within the EU and the
international level.
The Council then moved to a discussion about a series of
energy topics. A first item was energy policy for con-
sumers, a topic which was already dealt with during an
informal TTE Council on September 6-7 and on which the
Council now adopted conclusions. In its conclusions, the
Council stresses member states commitment to the cor-
rect and timely implementation of the provisions of the
third energy package, adopted by the Commission in
September 2007, and which consists inter alia of measures
to improve market transparency and information provision,
facilitate supplier switching, strengthen supervision by
national regulators, empower final energy consumers, and
develop the concept of vulnerable customers.
Furthermore, the Council underlines the aim of the EUs
energy policy to ensure secure, safe, sustainable and
affordable energy supplies to businesses and households,
welcomes the EUs work regarding energy efficiency, and
draws the attention to the importance of new energy-
related technologies. It stresses ways for energy con-
sumers to reduce their energy bills, such as awarenessraising, the provision of user-friendly information (e.g.
through transparent bills), smart metering, easy switching
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to cheaper suppliers, or the purchase of energy efficient
appliances. In addition, the Council highlights the urgent
need to ensure that customers can compare prices and
switch energy suppliers easily. Finally,
the Council invites the Commission
to continue its examination and
analysis of all aspects related toconsumer rights and vulnerable cus-
tomers and of energy policy meas-
ures aimed at consumers, including
those that address vulnerable ones,
and to put in place a European net-
work consisting of national and fully
independent energy ombudsmen and/or dispute settle-
ment bodies. The member states are asked to take the
work and recommendations of the Citizens Energy Forum
and the European Consumer Consultative Group (ECCG)
on Energy into account, in particular when designing poli-
cy measures aimed at protecting vulnerable customers.
Then the Council also attended a presentation by the
Commission on two of its communications, i.e. Energy
2020 a strategy for competitive, sustainable and
secure energy (adopted on November 10), and Energy
infrastructure priorities for 2020 and beyond a blue-
print for an integrated European energy network
(adopted on November 17). Ministers then moved to a
policy debate o the basis of a Presidency questionnaire,
but did not yet adopt conclusions (this is foreseen for the
Council meeting of February 28, 2011). The Energy 2020communication sets out five EU priorities:
achieving an energy-efficient Europe;
building pan-European integrated energy market;
protection consumers and achieving the highest level of
safety and security;
extending Europes leadership in energy technology;
strengthening the external dimension of the EUs
energy policy.
These general directions will serve as the basis of concrete
legislative proposals and initiatives of the Commission in
the next 18 months. The energy infrastructure elaborates
on actions to be taken in order to build a pan-European
integrated energy market, and addresses inter alia a new
method of strategic planning of infrastructure projects, the
identification of priority interconnections for electricity, gas
and oil, permit granting procedures and a framework for
financing.
The exchange of views of the ministers dealt with various
aspects of the two energy communications of the
Commission. In general, the two documents were wellreceived. Energy efficiency was clearly considered the
most important priority. Ministers underlined especially the
potential of transport and buildings for improving energy
efficiency. They also considered ecodesign and ecola-
belling of great importance. Then the Council underlined
the need to completely implement
existing legislation and stressed the
important role of the regulators.
Member state positions on thepotential harmonization of mecha-
nisms to support renewable ener-
gies diverged however. The Council
also considered the importance of
adequate interconnections for the
functioning of the internal energy
market, the integration of renewable energies, and
European solidarity. The need for quicker authorization
procedures was also underlined. Financing should mainly
be market-based, while cost allocation especially in the
case of cross-border infrastructures and the effect on
energy prices for end consumers would have to be taken
into account. In addition, ministers briefly talked about the
Strategic Energy Technology (SET) Plan, a multi-billion
initiative which was designed to accelerate the develop-
ment and deployment of cost-effective low-carbon tech-
nologies (e.g. bioenergy, CO2 carbon capture and storage
(CCS), fuel cells and hydrogen, smart cities, solar and wind
energy). The SET Plan received a lot of support, and minis-
ters stressed the importance of foreseeing sufficient fund-
ing in the framework of the future financial perspectives of
the EU. Finally, the Council underlined that the EU should
improve the coherence and efficiency of the externalaspects of its energy policy, e.g. by developing deep
energy partnerships.
A last item on the energy agenda of the Council was an
information session of the Presidency and the Commission
regarding recent developments of international relations
in the field of energy. Strategic energy partners discussed
by the ministers included the United States, Russia and the
Eastern Partnership (i.e. Armenia, Azerbaijan, Belarus,
Georgia, Moldova and Ukraine).
A third header of the TTE Council was telecommunica-
tions. The Council first held a discussion on a proposed
decision establishing the first radio spectrum policy pro-
gramme (RSPP). The
Presidency presented a
progress report on the topic
and distributed a questionnaire
to steer the talks. The
European Commission pre-
sented its proposal in
September 2010 in the frame-
work of its broadband pack-age, aimed inter alia at giving
every European access to basic
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broadband by 2013 and (ultra)fast broadband by 2020.
The RSPP proposal intends to establish a 5-year policy
programme to promote efficient radio spectrum man-
agement and to ensure that sufficient spectrum is made
available by 2013 for wireless broadband, which should
make fast connections and innovative services available
throughout the EU, and especially in remote areas.Ministers generally welcomed the Commissions proposal
and acknowledged the importance of radio spectrum poli-
cy for the digital society, fast wireless services, economic
recovery, growth, high-quality jobs and competitiveness.
Some delegations considered the deadlines for making
spectrum available (2013) too ambitious. Nevertheless,
wireless broadband was regarded as a topic on which
progress should urgently be made. Furthermore, some
concerns were raised in the field of spectrum manage-
ment, such as the imposition ofcoverage obligations and
right-of-use conditions. Finally, ministers warned about
the duplication of efforts, costs and the confidentiality of
information.
Furthermore, the Council adopted conclusions on cross-
fertilization between the Europe 2020 flagship initia-
tives A digital agenda for Europe and Innovation
Union. The conclusions underline that an integrated
European innovation
strategy needs the
setup of a fully func-
tioning digital single
market to the benefitof European business
small and medium
enterprises (SMEs)
and innovative start-
ups in particular and
European consumers.
The Council invites
the Commission inter
alia to leverage more
private investment in information and communication
technologies (ICTs), to reinforce the coordination and
mobilization of resources with member states and industry,
to continue efforts towards simplification of access to the
EUs ICT research funds (in particular for SMEs, innovative
start-ups and young researchers), and to support joint ICT
research infrastructures and innovation clusters. The
Commission is asked to over the next 2 years propose
an integrated framework for the development and promo-
tion of e-skills, and publish a legislative proposal on stan-
dardization to speed up and modernize standard-setting.
Member states are invited to prioritize efficient invest-
ments in ICT research and development, to increase their
involvement in public private partnerships (PPPs) for theInternet of the future, and to monitor their ICT-related
performance through indicators and a scoreboard.
A first significant step towards the creation of an EUpatent: FEB and its sectors welcome the efforts ofthe Belgian Presidency
At the Competitiveness Council on December 10, thanks to
the efforts of the Belgian Presidency, 11 member states filed
a formal request to the European Commission to come up
with a proposal for an EU patent on the basis of the
enhanced cooperation procedure foreseen in the Lisbon
Treaty. According to this procedure, at least 9 member states
can move forward on their own in particular policy fields, leav-
ing behind other countries, in case it has been established
that cooperation involving the EU as a whole cannot be
attained.
The Commission announced it would present a proposal for
initiating enhanced cooperation regarding an EU patent on
December 14. It is then up to the Council to grant authoriza-tion for enhanced cooperation by a qualified majority vote,
after obtaining the consent of the European Parliament. When
enhanced cooperation is authorized, all Council members may
take part in the respective deliberations, but only participat-
ing countries may participate in the votes. However, any
enhanced cooperation is open at any time to member
states wishing to join at a later stage.
In a press release of December 10, Rudi Thomaes, CEO of the
Federation of Enterprises in Belgium (FEB), hailed the signifi-
cant efforts of the Belgian Presidency to achieve this result.
The procedure of enhanced cooperation will in the nearfuture make it possible to significantly reduce the costs of
filing a patent in the EU thanks to lower translation costs,
underlined R. Thomaes.
Finding a way to make progress in the EU patent dossier,
which has remained blocked for many years due to divergent
views between member states on translation arrangements,
was a top priority for the Belgian Presidency. Hungary,
which will be holding the rotating Presidency of the Council
as from January 1, 2011, already expressed its commitment
to take the work forward with a view to achieving an agree-
ment on the patent issue as soon as possible.
In the spotlight
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The Council also adopted conclusions on the Commis-
sions communication European broadband: investing in
digitally driven growth (published in September 2010),
which is part of the Digital Agenda initiative. In its con-
clusions, the Council acknowledges that Europe should
achieve a competitive market for broadband infrastruc-
ture and services, that mobile, fixed and satellite broad-band networks should be facilitated and developed to
expand the reach of broadband to remote areas, and that
the roll-out of high-speed infrastructure should be based
on a market-driven and technology-neutral approach. The
Commission is invited to make a proposal in 2011 to sup-
port broadband financing without prejudice to the cur-
rent multiannual financial framework, to help member
states to make progress in meeting their national broad-
band targets, and in the further future to reinforce and
rationalize the use of funding through EU instruments for
high-speed broadband. Member states are inter alia
asked to set national broadband targets and adopt
operational plans accompanied by concrete implementa-
tion measures.
Under the header any other business, the Commission
presented a progress report on the European Energy
Programme for Recovery (EEPR), a programme to speed
up and secure investments on infrastructure and technolo-
gy projects in the domain of energy, with the additional
objective of stimulating the European economy and safe-
guarding jobs in the aftermath of the recent economic
downturn.
BUSINESSEUROPE
Council of Presidents(December 3, 2010)
On December 2-3, in the framework of the Belgian
Presidency of the EU, the Federation of Enterprises in
Belgium (FEB) organized BUSINESSEUROPEs biannual
Council of Presidents (COPRES). The COPRES, which is
organized in the capital of the country holding the rotating
presidency of the Council of the EU, brings together the
presidents of FEBs sister federations
in Europe to discuss a number of
issues relevant to the European busi-
ness environment.
The event started on December 2, at
FEBs premises, with a visit of Euro-
pean Commissioner for Internal
Market and Services Michel Barnier.
Before M. Barnier started his dis-
course, he was introduced by BUSINESSEUROPEs Presi-
dent Jrgen Thumann who hailed the internal market asbeing a key driver for growth and jobs in Europe.
J. Thumann added that, due to remaining barriers to the
four freedoms, a lot of potential around 350 billion EUR
remains untapped and that the internal market should
therefore be revitalized. Commissioner Barnier then
addressed the audience of employers representatives to
elaborate on the Commissions Single Market Act which
was published on November 11, 2010. The Commissioner
explained that the Single Market Act is ultimately intended
to improve the lives of EU citizens in a concrete way.
Failing to achieve this would lead to protectionism. A sec-
ond message M. Barnier delivered was that the financial
crisis is not over yet. He said that the fact that some finan-
cial products have become isolated from the real economy
poses a threat for economic stability. In this context, the
Commissioner praised the Belgian Presiden-cy for its effi-
ciency in getting the necessary regulation swiftly through
the Parliament and the Council. As a result, the EU will
have a new legal financial markets framework as of January
1, 2011. During the debate FEBs CEO Rudi Thomaes
raised the issue of double taxation of dividends which is
still not resolved at EU level. He highlighted that this is
particularly problematic for smaller member states as it ren-
ders attracting foreign capital less
attractive due to the increased costs
double taxation brings. Commis-
sioner Barnier said that he would
work on this and come up with a
precise answer later.
Later on in the afternoon, the partic-
ipants were received in the Royal
Palace in Brussels for a cocktail in
the presence of Their Royal Highnesses Prince Philippe
and Princess Mathilde of Belgium. The day ended with ashort guided tour in the Magritte Museum and with a gala
dinner at the Museum of Fine Arts in Brussels. Guest
speaker of the night was Viscount Frank De Winne, the
first European Commander of the International Space
Station.
The day after, on December 3, the COPRES meeting took
place. The meeting took place in the Egmont Palace and
was chaired by Jrgen Thumann. Main points on the agen-
da were the letter for the European Council of December
16-17, European competitiveness and the United Nations
Climate Conference in Cancn. Economic and Monetary
Affairs Commissioner Olli Rehn and Belgian Foreign
Minister Steven Vanackere were the guest speakers.
Michel Barnier
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Commissioner Rehn then started his speech by praising
the coordination between the EU and the United States in
their reaction to the economic and financial crisis. Thanks
to this, the crisis turned out to be a deep recession
instead of a second Great Depression. Still, in May 2010
the EU experienced its own
moment of truth when Greecefaced a sovereign debt crisis.
Thanks to the 750 billion EUR
safety net agreed upon to con-
tain the problem, the EU did not
experience its own Lehman
story, Mr. O. Rehn said. The
Commissioner added that he
was confident the EU would not
do so in the future either. After
this, Olli Rehn elaborated on the
European economic outlook for the next two years. A
peculiar dualism could be witnessed in it, he said. On the
one hand, there is the recovering real economy and, on
the other hand, there are the financial markets which are
still not fully stabilized. According to the Commissions
latest growth projections, economic growth figures will lie
between 1,5% and 2% in the period 2010-2012. Even
though growth will be fuelled mainly by strong export per-
formances, the Commissioner added that domestic
demand is starting to increase as well.
Furthermore, employment numbers are also expected to
improve in 2011 and thanks to consolidation measures budgetary deficits will equally start to decline.
Nevertheless, O. Rehn warned that the pace at which this
is happening is not high enough to restore confidence on
the financial markets. In only 2 years time, 20 years of fis-
cal consolidation have been wiped out, O. Rehn illustrat-
ed. Therefore, the Commission will pursue the objective
of restoring confidence vigorously. In this context, the
Commissioner underlined that the Commis-sions pro-
posed economic governance package will be based on a
strengthened Stability and Growth Pact, improved macro-
economic imbalances and more effective enforcement
mechanisms. In addition, the EU will stimulate member
states to adopt structural reforms to, inter alia, make the
most of the internal market, to increase the participation
rate on the labour market, to foster innovation and to sim-
plify the regulatory environment. Finally, O. Rehn stated
that the current crisis has systemic features and that it
therefore requires systemic answers. For this the
Commissioner explicitly asked support and cooperation
from the business community. In
a concluding remark, O. Rehnsaid that the 1990s were the
decade of constructing the
monetary union, the 2000s the
decade of implementing it, and
the 2010s would be the decade
of reforming it.
It then was Belgian Foreign
Minister Steven Vanackeres turn
to address the Presidents of the
European employers federations. Mr. Vanackere focused
mainly on the successes of the Belgian Presidency so far.
Notably the newly signed free trade agreement with South
Korea and the financial supervision package were men-
tioned as being important breakthroughs. The minister also
talked about the EU patent (also see the In the spotlight
article on the EU patent in this newsletter). Mr. Vanackere
defended the creation of an EU patent since it is key to
stimulate innovation in Europe. As member states did not
manage to come to an agreement to finally create a
European patent, a mechanism of enhanced cooperation is
being worked on, he added. Furthermore the Foreign
Minister said he strongly believes the EU 2020 strategyhas a real chance to be successful. Firstly, in contrast to
the Lisbon strategy, the EU 2020 strategy defines concrete
targets for member states to achieve. Secondly, the EU
2020 strategy pays a lot of attention to governance. Finally,
regarding the challenges currently confronting the single
European currency, Steven Vanackere hailed the member
states determination to save the euro as their efforts will
undoubtedly give a positive signal to the financial markets.
At the end of the meeting, Jrgen Thumann thanked and
congratulated the FEB, and especially Diane Struyven,
Director of the FEBs European Department, for the
excellent organization of BUSINESSEUROPEs Council of
Presidents.
Brussels calling- 12 -
Jrgen Thumann, Steven Vanackere, Thomas Leysen
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Justice and Home Affairs Council(December 3-4, 2010)
On December 2-3, the last session of the Justice and HomeAffairs Council under the Belgian Presidency took place. The
meeting was chaired by Melchior Wathelet (Belgian State
Secretary for Migration and Asylum Policy), Annemie
Turtelboom (Belgian Minister of the Internal affairs) and
Stefaan De Clerck (Belgian Minister of Justice).
A first topic on the agenda was the report on strengthening
air cargo security, drafted by the ad hoc High Level Group
on cargo security and civil aviation. The group was set up by
the Justice and Home Affairs Council of November 8-9 fol-
lowing the recent discovery of parcel bombs in air cargo.
More information can be found in the Transport, telecom-
munication and energy article in this newsletter.
A second agenda point was
the report of the Belgian
Presidency on achievements in
the area ofasylum and migra-
tion policy over the past six
months. Regarding legal
migration, a first exchange of
views was held on proposals
for two directives on condi-tions of entry and residence of third-country nationals
concerning intra-corporate transferees and seasonal
employment. The Council also welcomed a common state-
ment of the current and next four Presidencies (i.e. Hungary,
Poland, Denmark and Cyprus). In that statement, the latter
say they are committed to continue efforts to fulfil the goals
set out in the Stockholm Programme, inter alia regarding
legal migration. In addition, the Belgian Presidency informed
the Council of the outcome of a conference on legal migra-
tion, which took place on November 26, 2010.
Third, ministers took note of the progress made in the area
ofEuropean e-justice on the basis of a Presidency report.
This document inter alia addresses the outcome of reflec-
tions on the role of the European e-justice in the wider EU
justice policy, and deals with the progress made on a num-
ber of e-justice projects, such as dynamic online forms for
European payment or European small claims procedures,
and the interconnection of member states insolvency regis-
ters. The European e-justice portal (see Links section of
this newsletter), an electronic one-stop shop for access to
justice throughout the EU, was launched in July 2010. The
website aims at solving cross-border legal questions of citi-zens, businesses, lawyers and judges, and at boosting mutu-
al understanding of different legal systems.
A last point on the Councils agenda was a policy debate on
the Commissions communication concerning data protec-
tion which was presented on November 4, 2010. For 2011,
the Commission plans a significant overhaul of the currentlyexisting EU data protection directive of 1995. In its commu-
nication, the Commission underlines inter alia the objective
of enhancing the internal market dimension of data protec-
tion, addressing the global dimension of data protection,
and providing a stronger institutional arrangement for better
enforcement of data protection rules.
Justice and home affairs
Brussels
Brussels
Brussels
Egmont Palace,Brussels
Brussels
Brussels
Brussels
Strasbourg
Ghent
Saint-Gilles(Brussels)
Marcinelle
Ghent
Brussels
Brussels
Bruges
Brussels
Brussels
Brussels
Foreign Affairs Council Defense
BUSINESSEUROPE - Council ofResidents
Competitiveness Council
EU-India Business Summit
Foreign Affairs Council
General Affairs Council
Agriculture and Fisheries Council
European Parliament plenary session
Conference (with the support of theBelgian Presidency): Future Internetconference week
Conference (with the support of theBelgian Presidency): Mercury EUexpert meeting
Conference (with the support of theBelgian Presidency): Closure of the2010 International Year forBiodiversity conference
Conference (with the support of theBelgian Presidency): Pre-conferenceon e-government
Conference (with the support of theBelgian Presidency): Lift-off towardsOpen Government puttingeEurope in practice
European Council
Conference (with the support of theBelgian Presidency): Network mee-ting competent authorities on pri-cing and reimbursement
Conference (with the support of theBelgian Presidency): Closing confe-rence of the European Year forCombating Poverty and SocialExclusion
Environment Council
Conference (with the support of theBelgian Presidency): Final pressconference of the Belgian Presidencyof the Council of the European
Union
Brussel calling #9
Start of the Hungarian Presidency ofthe Council of the EU
EVENTS&MEETINGS
9/12/2010
10/12/2010
10/12/2010
10/12/2010
13/12/2010
14/12/2010
13-14/12/2010
13-16/12/2010
13-17/12/2010
14/12/2010
14/12/2010
14/12/2010
15-16/12/2010
16-17/12/2010
16-17/12/2010
16-17/12/2010
20/12/2010
20/12/2010
21/12/2010
1/01/2011
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Employment, Social Policy, Health andConsumer Affairs Council(December 6-7, 2010)
On December 6-7, the Employment, Social Policy, Health
and Consumer Affairs (EPSCO) Council held its last meet-
ing under the Belgian Presidency. The session was chaired
by Jolle Milquet (Belgian
Minister of Employment and
Equal Opportunities), Laurette
Onkelinx (Belgian Minister of
Social Affairs and Public
Health) and Michel Daerden
(Belgian Minister of Pensions).
Several important dossiers
were on the agenda. A first
one was the draft directive on
maternity leave. On the basis
of a Belgian Presidency ques-
tionnaire as well as a progress
report, the Council held a poli-
cy debate on the contentious matter. On October 20, the
European Parliament adopted its first reading position in
which it asked for the extension of the minimum duration
of maternity leave from 14 weeks to 20 weeks on full pay.
For many member states however, this was a bridge toofar. Ministers voiced concerns on the cost implications and
pointed out that the directive should merely set minimum
standards while respecting the principle of subsidiarity, and
taking the diverse situations in the member states into
account. Other arguments against such an extension
include the rising threshold for hiring and employing
women. Some member states were also opposed to the
inclusion ofpaternity leave within the scope of the draft
directive. It was argued that the aim of reconciling work
with family life was already covered by other EU rules.
Moreover, many ministers stressed theneed for a further impact
assessment. In general, the
Commissions initial draft directive,
which proposed an extension to 18
weeks of maternity leave, was consid-
ered to constitute a better basis for a
compromise. The Belgian Presidency
said it would reflect on how to best
continue negotiations over the dossier
in coordination with the upcoming
Presidencies of Hungary and Poland.
The initial draft directive on maternityleave was proposed on October 3,
2008 and forms part of the
Commissions work-life balance package. Next to mini-
mum provisions for the duration of maternity leave, the
draft directive aimed at improving the protection of preg-
nant workers and workers who have recently given birth orare breastfeeding also provides for the right to return to
the same job or an equivalent post, the right to ask
employers to adapt working hours and patterns, and the
principle that the maternity leave allowance should guar-
antee an income equivalent to the last or average monthly
salary, or at least not lower than the level of sick pay.
Currently most member states have made a trade-off
between the minimum duration of maternity leave and the
level of maternity leave allowances.
Second, ministers adopted conclusions concerning the
fight against inequalities in salaries between men and
women. The conclusions first of all emphasize that equali-
ty between women and men is crucial for fulfilling the
objectives of the Europe 2020 strategy, as well as for tack-
ling the demographic challenge. Underlying causes of the
gender pay gap, which currently still amounts to 18% on
average in the EU, are only partially understood. Hence,
more work needs to be done to understand and tackle
root causes, especially those related to labour market
inequalities between men and women, while taking into
account national circumstances and coordinating the
actions of all key actors, social partners in particular. Anumber of measures are proposed to member states, such
as the promotion of pay transparency, the promotion of
neutral evaluation and classification of jobs, the improve-
ment of the quality of employment, improvements in the
reconciliation between work and family life, and the elimi-
nation ofhorizontal and vertical labour market segrega-
tion (horizontal segregation refers to the fact that women
still tend to end up in a much smaller number of sectors
and occupations which are generally lower paid, while ver-
tical integration refers to the fact that women tend to hold
lower paid positions than men, have
less job security and face more career
obstacles). The European Commission
and the member states are invited to
take the necessary steps to measure
and monitor the gender pay gap on
the basis of a set of indicators (which
are set out in the annex to the conclu-
sions). Finally, the Council took note
of a progress report prepared by the
Belgian Presidency on the issue of the
gender pay gap.
Third, the Council exchanged views
on the role of employment policies
Employment and social affairs
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within the Europe 2020
strategy and the European
semester. During the dis-
cussion, ministers under-
lined the important link
between employment poli-
cies on the one hand andmacroeconomic policies on
the other hand. Hence the EPSCO Council will be involved
in the annual spring European Council in March by pro-
ducing key messages on employment policies. This is the
moment when the European Council will identify the main
economic challenges facing the EU and give strategic
advice on policies. In general, it was emphasized that it is
important to coordinate the actions of the EPSCO
Council with those of other Council configurations,
notably the Economic and Financial Affairs Council. With a
view to the Europe 2020 headline target of reaching a 75%
employment rate by 2020, ministers pointed out that future
employment policies should take special care of young-
sters, women and elderly workers. Then the Council took
note ofPresidency conclusions on the Europe 2020 flag-
ship initiatives Youth on the move
and An agenda for new skills and jobs. The Belgian
Presidency welcomes the main lines of action set out in the
Commissions respective communications, emphasizes the
key role to be played by the social partners in the imple-
mentation of these two flagship initiatives, and invites the
incoming Hungarian Presidency to take all necessary steps
to support the implementation of the initiatives.
The Council itself also adopted two sets of conclusions.
The first set related to employment policies for a com-
petitive, low-carbon, resource-efficient and green econ-
omy. The conclusions call for ambitions actions to stimu-
late employment in the green sector and ensure the
greening of all jobs. Member states are inter alia invited
to better anticipate labour market needs (especially in
terms ofgreen skills), to promote the greening of work-
places and lower their ecological impact, and to encour-
age ownership by all relevant labour market stakeholders
(social part-
ners in par-
ticular). The
Commission
is invited to
provide fur-
ther guid-
ance for
employment
policies
preparing
the labour market for the transition to a green economy,and to investigate how European funds could be used to
facilitate the transition. A second set of conclusions con-
cerned the impact of age-
ing on employment poli-
cies, with the aim of ensur-
ing better working condi-
tions so that people are
able to work longer and
focusing on so-calledwhite jobs (i.e. jobs in the
health and personal services sector). The conclusions call
upon Commission and member states to develop common
principles for employment policies for active ageing,
more investment in skills of older workers, and the provi-
sion of career guidance. Member states are also invited to
adopt action plans for training and education in the care
and personal services sector, and to improve the working
conditions in and the attractiveness of these sectors.
Finally, the Council endorsed a number of opinions: one of
the Employment Committee (EMCO) titled The employ-
ment dimension of tackling environmental challenges,
and another one of both the EMCO and the Social
Protection Committee (SPC) on the Joint Assessment
Framework (JAF) and the Employment Performance
Monitor. The JAF is an indicator-based assessment system
which should allow the monitoring and assessment of
structural reforms under the Employment Guidelines, and
the quantitative monitoring of progress towards the EU
headline and related national targets in the framework of
the Europe 2020 strategy and the ten so-called
Integrated Guidelines supporting that strategy (see
Employment and social affairs article in the 6th edition ofthis newsletter). The Employment Performance Monitor
should be based on the JAF and would be a clear and
concise summary which can periodically be submitted to
the EPSCO Council. The Council then also took note of an
opinion of the EMCO containing policy conclusions of the
light country examination on the draft national reform
programmes (NRPs) which member states had to submit
in November to prepare the launch of the first European
semester in 2011. The opinion underlines priority areas for
reforms in the labour markets, such as increasing labour
market participation, promoting targeted activation,
ensuring sufficient education and training opportunities,
and facilitating occupational and geographical mobility.
A fourth important topic on the agenda was the future of
the pension systems. On the basis of a Presidency ques-
tionnaire as well as the green paper on pensions issued by
the Commission on July 7, 2010, the Council held a policy
debate on the topic. Ministers also took note of the joint
report of the SPC and the Economic Policy Committee
(EPC) on pensions, adopted on October 27, 2010. Finally,
the Council adopted conclusions. During the debate, the
Presidency noticed a consensus on the need to respectthe principle of subsidiarity (given the diversity of national
systems) and the need for a holistic approach taking into
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Brussels calling- 16 -
account the principles of adequacy and sustainability of
pensions. The role of the open method of coordination
(OMC) on social protection, as well as the importance of
using appropriate indicators, was stressed. In its conclu-
sions, the Council underlines that extending working life
by reducing early retirement and raising the effective
retirement age would improve both the sustainability andadequacy of future pensions. Member states are invited to
improve the exploitation of administrative and other rele-
vant data and develop national analytical tools to monitor
the adequacy and sustainability of pensions. Furthermore,
they are asked to promote information for future pension-
ers, to reflect on how to remove obstacles to mobility in
the design of pension systems, to ease access to pension
entitlements for individuals in atypical employment, and to
promote the involvement of social partners and other
relevant stakeholders in the context of designing and
implementing pension reforms. The Commission is invit-
ed to further support member states in developing their
statistical apparatus and analytical tools so as to improve
their capacity to assess the implications of pension policies
on the adequacy and sustainability of pension provisions.
Member states as well as the Commission are finally invit-
ed to consider the consequences of the budgetary meas-
ures and the ongoing pension reforms, taking into account
their impact in terms of adequacy, safety and sustainabili-
ty.
Fifth, the Council adopted conclusions on social services
of general interest (SSGIs). In the conclusions, theCommission is invit-
ed to clarify the
application of EU
rules to SSGIs with
a view to enhancing
legal certainty. The
Commission should
also elaborate on
how to identify a
social service as an
economic or non-economic service of general interest. On
the same topic, ministers heard an oral presentation by
the Commission of its biannual report on SSGIs, with an
overview of member state initiatives to improve the quality
of such services, and they were also briefed about a docu-
ment of the SPC on a voluntary European quality frame-
work for SSGIs.
Sixth, the Council reached a first-reading political agree-
ment on a draft regulation on food information to con-
sumers. The initial proposal was submitted by the
Commission to Council and Parliament in February 2008.
The proposed regulation aims at ensuring that food labelscarry essential information in a clear and legible way to
enable consumers to make informed and balanced dietary
choices. The Council agreed first of all that the labelling
of the energy value as well as the quantities of particu-
lar nutrients (e.g. fat, saturates, protein, sugars, salt)
should become compulsory. Furthermore, food business
operators are left some freedom in using additional forms
of expression or presentation of information, as long as
certain conditions are met. All information should appeartogether in the same field of vision on the packaging. The
labelling of the country of origin should be compulsory
in case the absence of this information would mislead con-
sumers. For several types of meat, country of origin
labelling should always be compulsory. Moreover, the
Commission will evaluate over the next 3 years whether
compulsory country of origin labelling should be extended
to other categories of food products. Then the Council
decided to exempt certain alcohol beverages from nutri-
tion labelling rules as well as from the indication of the
list of ingredients. However, within 5 years after the entry
into force of the new regulation, the Commission should
examine whether this exemption is still justified. Non-
prepacked food would also be exempted from nutrition
labelling, unless member states decide otherwise.
Allergents should nevertheless always be indicated. Finally,
the Council laid down criteria related to inter alia minimum
font size and contrast of the labelled information. At one
of the next Council sessions, the first-reading text will be
formally adopted, and then forwarded to the European
Parliament for its second reading.
Seventh, the Council adopted its first-reading position ona draft regulation on textile labelling. The proposed reg-
ulation aims to revise current rules on the use of textile
fibre names, labelling, marking and determination of fibre
composition of textile products, with a view to providing
accurate information to consumers and improving the
functioning of the internal market. The legislative proposal
provides inter alia for the harmonization of the names of
textile fibres and the indications appearing on labels,
markings and documents, but does not prevent economic
operators from indicating the presence of small quantities
of fibres requiring a particular attention to keep the origi-
nal quality of the textile product. The proposal now
returns to the Parliament for a second reading.
Finally, ministers took a number of other decisions. They
adopted a general approach on a draft decision designat-
ing 2012 as the European Year of active ageing, pend-
ing the adoption of a first-reading opinion of the
European Parliament. Then the Council took note of
Presidency conclusions on the external dimension of the
EUs employment and social policies. The conclusions call
for the promotion of international labour standards, as
well as more international cooperation on labour,employment and social policy, especially at the G20
level. In the domain of legal migration, the Belgian
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Presidency informed the Council
on three legislative proposals
which are being examined by the
Justice and Home Affairs Council,
i.e.:
the draft directive on a singleapplication procedure for a
single permit for third-country
nationals to reside and work in
the territory of a member state and on a common set of
rights for third-country workers legally residing in a
member state;
the draft directive on the conditions of entry and resi-
dence of third-country nationals for the purposes of
seasonal employment;
the draft directive on conditions of entry and residence
of third-country nationals in the framework of an intra-
corporate transfer.
The Council was also informed by Hungary on the work
programme for its Presidency in the first semester of
2011. A last important point
was the adoption by the
Council of a regulation allowing
for the financing of invest-
ment projects in the area of
energy efficiency and energy
from renewable resources.The funds worth almost 150
million EUR come from
unspent money from the
European Energy Programme for Recovery (a 4-billion
EUR programme to support European economic recovery
by investing in projects in the field of energy). As of 1
January 2011, regional and local authorities will be able
to file an application with the European Investment Bank
(EIB).
Eligible initiatives include the incorporation of renewable
and/or energy efficient solutions in buildings, the integra-
tion of local decentralized renewable energy sources in
the electricity grid, ICT-based smart grids, smart meter-
ing, electricity storage solutions and efficient street
lightning.
Eurogroup & Economic and Financial AffairsCouncil (December 6-7, 2010)
On December 6-7, the 27 EU Finance ministers convened
in Brussels for the Economic and Financial Affairs
(ECOFIN) Council. As usual, on December 6, the Finance
Ministers from the eurozone countries convened the day
before to discuss the econom-
ic situation in the monetary
union. On the same day the
current and the next two
Presidencies respectively theBelgian, the Hungarian and
the Polish met representa-
tives of the European
Parliament for an informal dia-
logue focused on the econom-
ic governance issues.
The day after, on December 7,
at the ECOFIN Council, a
number of items were debat-
ed and approved. Firstly, in the framework of the
European Financial Stability Mechanism (EFSM), the
Council decided to provide financial assistance to
Ireland. The loans granted under the EFSM amount up to
22,5 billion EUR and they are part of an 85 billion EUR
financial assistance package which was negotiated with
the Irish authorities by the European Commission, the
International Monetary Fund and the European Central
Bank. The conditions for the assistance were set out in the
framework of the EUs excessive debt procedure. They
include an overhaul of Irelands banking system, growth-
enhancing reforms and the reduction of the Irish
Republics deficit below 3% of gross domestic product
(GDP) by 2015.
The Council also approved a draft directive intended tostrengthen administrative cooperation with regard to
direct taxation in order to enable member states to bet-
ter combat tax fraud. In the light of increased taxpayer
mobility and a growing number of cross-border transac-
tions,
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