Voorbereiding Raad Concurrentievermogen, 19 februari 2007 (en)

anchor("Heading7")The EU Competitiveness Council will meet in Brussels on Monday 19 February under the chairmanship of Michael Glos, German Federal Minister of Economics and Technology, and Brigitte Zypries, German Federal Minister for Justice. The European Commission will be represented by Vice President Günter Verheugen, responsible for Enterprise and Industry, Commissioner Charlie McCreevy, responsible for the Internal Market and Services, and Meglena Kuneva, Commissioner for Consumer Affairs.

anchor("Heading7")Action Programme for reducing Administrative Burden (TVL)

anchor("Heading7")In its Strategic Review of Better Regulation and the attached Working Document of 14 November 2006, the Commission proposed that the 2007 Spring European Council fixes a reduction target of 25 % of administrative burdens, to be achieved jointly by the EU and Member States by 2012. On 24 January 2007 the Commission stepped up its efforts to reduce unnecessary burdens on businesses. It adopted an Action Programme specifying how the 25 % reduction is to be achieved. The Programme presented the Commission’s plans for measuring and reducing unnecessary administrative burdens in the EU. It demonstrates in concrete terms the way in which the Commission intends to work with Member States to cut administrative burdens on businesses by a quarter by 2012. The Programme focuses on information obligations in thirteen selected priority areas including company law, employment relations, taxation/VAT, statistics, agriculture and transport. It's aims are to measure the cost of the administrative burden in these key sectors and identify information obligations for which proposals will subsequently be adopted to remove unnecessary burdens. The Commission identified as well ten concrete reduction measures, for unprecedented fast track action which could be decided upon at the March Spring Council. These measures alone could in one fell swoop, reduce the burdens on businesses by 1.3 billion euros on an annual basis. Vice President Verheugen will present the Commissions action plan to Ministers which will be discussed in a public debate.

anchor("Heading7")CARS 21 A Competitive Framework for the 21st century (TVL)

anchor("Heading7")The automotive industry is a major pillar of the European economy, representing 3% of the European GDP and 7% of employment in the manufacturing sector, amounting to twelve millions jobs in total. The automotive industry in Europe is currently characterised by cut-throat price competition, high raw material and energy prices, a strong emphasis on cost management and a restructuring of production processes. In line with its policy to improve the quality of lawmaking and to face the challenges of a more global competition the Commission in 2004 asked the High Level Group CARS 21, which brought together all the main stakeholders (including consumer and environmental organisations), to advise on future policy. On 7 February the Commission came forward with a strategy for the long term viability of the European car industry as a Commission's response to the report presented by the CARS 21 Group. Its aim is to keep the manufacturing of motorcars viable on a long term basis, at prices affordable to consumers. The strategy encompasses a variety of areas, such as reduction of administrative burdens, environmental sustainability, road safety, trade and overseas markets and research. It outlines to the European Parliament and Council the direction in which the Commission intends to steer future automotive policy and includes the following elements:

anchor("Heading7")Reduction of administrative burdens: The Commission will propose replacing 38 EC directives with corresponding global UN/ECE regulations, for instance on tyres, safety glass, fog lamps and seatbelts. In addition, self testing and virtual testing will be introduced for 25 directives and UN/ECE regulations to reduce compliance costs and make administrative procedures less costly and time consuming.

anchor("Heading7")Reduction of CO2 emissions: The Commission strategy is based on an integrated approach, involving not only engine technology, but also technological improvements (e.g. setting mimimum requirements for air-conditioning systems, the compulsory fitting of tyre pressure monitoring systems, setting maximum tyre rolling resistance limits and the use of gear shift indicators) and increased use of bio-fuels. It also focuses on additional efforts by Member States like traffic management, improvement of driver behaviour and infrastructure as well to further reduce CO2 emissions.

anchor("Heading7")Road safety: The Commission believes an effective road safety strategy should be based on a combination of improvement in vehicle technology, road infrastructure, driver behaviour and enforcement.

anchor("Heading7")Trade: The Communication proposes to assess the potential of using bi-lateral trade agreements (particularly in the Asian region) to improve market access and reinforces the need to enforce intellectual property rights globally.

anchor("Heading7")Research and development: Clean renewable fuels and vehicles and intelligent vehicles and roads have been identified as core research priorities. With approximately 20 billion Euro, about 5% of the industry's turnover, invested into research and product development the automotive industry is the largest R&D investor in Europe in absolute terms. Vice President Verheugen will present the strategy to Ministers which will be followed by an exchange of views.

anchor("Heading7")Lisbon Economic Reform Process – Contribution of the Competitiveness Council to the Spring European Council (Key Issues paper)(TVL)

anchor("Heading7")Ministers aim to finalise the Competitiveness Council's contribution to the Spring European Council. With the title "Strengthening Europe's Competitiveness" the draft paper focuses on the sustainable positioning of European Business in the face of global competition. Vice President Verheugen will present the Commission Annual progress report. The renewed Strategy for Growth and Jobs is beginning to deliver results. All Member States have adopted national reform programmes and are reviewing them to take on board priorities defined at Community level and good practice ideas from other Member States. A shift in policy towards research and innovation, resource and energy efficiency, freeing up of SMEs, entrepreneurship and education, investment in human capital and modernisation of labour markets together with securing funding for high levels of social protection for the future can be discerned across Member States. There is emerging evidence that past reforms are starting to deliver quantifiable benefits, and that the full implementation of the Strategy for Growth and Jobs at both EU and national level offers the prospect of potentially large gains in terms of jobs and growth. Overall, growth conditions are now more conducive to pursuing reform agendas than they have been for many years, and the challenge is to use this window of opportunity to pursue ambitious reform

anchor("Heading7")Any Other Business

anchor("Heading7")Communication from the Commission on the Free Movement of Goods (TVL)

anchor("Heading7")The European Single Market for goods is Europe's most powerful weapon in global competition. It boosts growth and employment, creates prosperity and enhances consumer choice. In day-to-day practice, however, significant weaknesses are apparent which prevent European companies from fully exploiting the potential of the Single Market. Only a fraction of European manufacturers currently participate at all in cross-border trade. Small and Medium Sized Enterprises (SMEs), in particular, often baulk at crossing the border because they do not know their rights or because there are barriers that make the product unnecessarily expensive. The Commission has come forward with a broad package of measures to assure a smoother functioning of the internal market for goods. This will make it easier for companies, particularly for SMEs, to market products in the European Union while assuring a high level of safety and quality.

anchor("Heading7")For industrial goods which are already subject of EU-legislation it is suggested that a system of market surveillance be established which will build upon the existing system for consumer products. Cooperation between national accreditation bodies will be strengthened and new rules to enhance confidence and trust in the CE mark are proposed. A common legal framework, build on simple common definitions and procedures for the marketing of industrial products, will serve as a toolbox for future sectoral legislation. These measures will have an impact on 22 industrial sectors, representing a market volume of around 1500 billion euros a year. Improvements are proposed for the trade with goods which do not fall under EU-legislation (around a quarter of EU intra manufacturing trade).

anchor("Heading7")At present many companies are discouraged from venturing outside their domestic market because they have to prove that their products fulfil the requirements of technical rules in other Member States. It is now suggested that public authorities will have to justify to companies, why a product which was lawfully marketed in another Member State, cannot be sold on their national market. In addition, it is proposed to create local product points which will provide information to businesses about additional requirements outside their home market. Vice President Verheugen will present the Commission's proposals to Ministers

anchor("Heading7")Green Paper for the Revision of the Community "acquis" in the area of consumer protection (HK)

anchor("Heading7")In February the Commission launched major new drive to fundamentally overhaul core EU consumer rules – including guarantees, refunds, cooling off periods - to adapt them to the challenges of a fast changing digital world. with the adoption of a European Commission Green Paper reviewing the existing rules. Consumer spending (households and non-profile institutions) accounts for a total of 58% of EU GDP. Consumer confidence is a key factor determining how and when consumers spend their money in different sectors of the economy. All the evidence is that consumers are not yet "comfortable" enough in the digital and online world to seize its full potential. Only tiny fraction - 6% of EU consumers - are currently shopping online cross border. With the help of the feedback from the Green Paper, the Commission aims to boost consumer confidence in the EU Single Market, with a single and simple set of rules which empower consumers to know their rights, make sound choices and ensure adequate protection when things go wrong. Clear legal rules will also incentivise operators, particularly SMEs to venture beyond borders un-tapping the potential for integration for the retail side of the market. The Green Paper invites comments and contains over 28 concrete suggestions (cutting across 8 Directives) for possible new action. Mrs Kuneva, Commissioner for Consumer affairs will present the green paper to Ministers.

anchor("Heading7")Internal market Scoreboard (OD)

anchor("Heading7")Commissioner McCreevy will present the latest results of the Internal Market Scoreboard to Ministers. The most recent scoreboard shows the best results ever. (Ip/07/126) Member States have never performed better in implementing agreed Internal Market rules into national law. On average only 1.2% of Internal Market Directives for which the implementation deadline has passed are not currently written into national law, down from 1.9% in July 2006 (IP/06/1008). This means that for the first time the average deficit is below the 1.5% interim target agreed by Heads of State in 2001. All Member States have made progress, with 21 Member States either below or very close to the 1.5% target. This is due in large part to Member States' continued efforts to implement and exchange best practices, as set out in a 2004 Commission Recommendation. Nevertheless, Member States too often fail to transpose and apply Internal Market rules correctly: only eight Member States have managed to reduce the number of infringement proceedings against them

anchor("Heading7")Proposal on the exercise of voting rights by shareholders (OD)

anchor("Heading7")In January 2006 the Commission presented a proposal for a Directive to facilitate the cross-border exercise of shareholders' rights in listed companies, through the introduction of minimum standards. The proposed Directive seeks to ensure that shareholders, no matter where in the EU they reside, have timely access to complete information and simple means to exercise certain rights – notably voting rights – at a distance. The European Parliament reached agreement in first reading on Thursday 15 February. This vote was welcomed by Commissioner Charlie McCreevy. The Presidency will inform Ministers of the state of play.