brussels calling, belgian eu presidency, business newsletter, 15/12/2010, issue 8

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


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


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


8/19


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


9/19


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


10/19

Brussels calling- 10 -

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


11/19


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


12/19

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.


Jrgen Thumann, Steven Vanackere, Thomas Leysen


13/19


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


14/19


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


15/19


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


16/19


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


17/19

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,

brussels calling, belgian eu presidency, business newsletter, 15/12/2010, issue 8

Documents