U.K. Presidency draws to a close:  The six-month UK Presidency of the EU began in July after both French and Dutch voters had rejected the proposed constitution.  The mid-point of the Presidency marked the opening of accession discussions with Turkey and the Presidency ended with a deal on the EU budget.  This is set to include a review of the EU budget (or ‘financial perspective’) in 2008, with the Commission expected to produce a report in 2008-09.

The overall budget for the 2007-2013 period is now set at Euro 862.36 billion which amounts to 1.045% of the combined gross national income of the EU.  Britain had been urged to give up the rebate.  This had been negotiated by Mrs. Thatcher on the basis that the U.K. received only a small share of agricultural funding under the Common Agricultural Policy (CAP).  At that time Britain was one of the poorer countries of the EU but was one of the largest net contributors.  The U.K. has now agreed to give up some 20% of the rebate from 2007-2013, an amount of Euro 10.5 billion.  The EU CAP budget amount will remain at Euro 293 billion.  This amount had been agreed at a previous EU summit.  Now, however, it will not increase in 2007-08 when Romania and Bulgaria are expected to accede to the EU.  The final comprehensive proposal from the Presidency may be seen in pdf format in: http://www.cost.esf.org/fileadmin/cost_documents/news/EUBUDGET2007-2013.pdf

Presidency News of interest to the sector:

Research:  U.K. Presidency budget proposals provided for a 75 per cent increase in EU research funds in real terms in 2013 rather than in 2006.  The UK proposal was, however, attacked from all sides.  The proposal was in three parts which can be reviewed through the following links: The proposal is in three parts: Part I: Expenditure ; Part II: Revenue ; Part III: Review   

Report on Presidency's 18-19 October conference on future of occupational safety and health in the EU:  The UK and European Commission organised this event to identify key themes that might form the framework for the 2007-12 EU Occupational Safety and Health (OSH) strategy. On the second day European Directors General of Health and Safety proposed that the new EU OSH strategy could usefully be developed around five themes: 1. Mainstreaming occupational health and safety;  2. Better Regulation; 3. Targeting interventions for maximum results; 4. Setting targets to deliver outcomes; 5. Building an evidence base.  Full text of Document 15399/05

U.K. Presidency pages:  http://www.eu2005.gov.uk         

Next Presidencies:

1st January -30th June 2006: Austrian Presidency

1st July -31st December 2006: Finnish Presidency

RESEARCH AND DEVELOPMENT

° The road to FP7: A ‘partial general approach’ was achieved at end November 2005 when discussions in the Competitiveness Council of Ministers focused on adequate support for the participation of small and medium sized enterprises (SMEs) in cooperative research projects, and the implementation and structure of the proposed European Research Council. Council conclusions on more research and innovation - investing for growth and employment: Competitiveness Council, 28 November   

° European Economic and Social Committee (EESC) Opinion: 7th R&D Framework Programme FP7 2007-2013 differs from its predecessors in three respects: (1) It includes the EU 25 from the start; (2) the programming period has been extended by two years; (3) the programme envisages a substantial increase in total budget and annual budgets. In addition to technology platforms, joint technology initiatives are a new instrument designed to promote establishment of longer-term public-private partnerships. Industry and not least SMEs have high hopes for these initiatives, although the Committee notes that the Commission has not yet produced any clearer proposals on this issue, including how they differ from technology platforms. Full text of Opinion

° COST Policy on Dissemination and Monitoring the Impact of COST Results : COST “European Co-operation in the field of scientific and technical research” is seeking to improve its dissemination and monitoring of the impact of results.  Activities in COST are launched on a bottom-up approach.  In the past its activities have paved the way for a European Community approach.  It has now been agreed that two years after the completion of an Action, the COST Office will endeavour to trace, whenever possible, any additional outcomes and impacts which may have been achieved by the Action.  The COST Office will routinely publish reports stressing outcomes and impacts of all Actions completed during a specific year as part of the COST Annual Report for that year. Further details on COST: http://www.cost.esf.org/index.php?id=9  The Council Decision on dissemination: http://register.consilium.eu.int/pdf/en/05/st00/st00327.en05.pdf

° Impact assessment report confirms success of FP5: The report, published by the European Commission's Directorate-General for Research, is based on the results of a questionnaire circulated during 2004 to participants in FP5.  Typically, participants considered their FP5 research was part of a continuous stream of R&D: FP5 projects built on past work conducted in-house and led to further R&D projects in-house.  The programme was judged a success, with high levels of goal attainment and impacts in knowledge and networking.  More worryingly, the report shows that levels of satisfaction with benefits of participation have dropped since a comparable survey in 2000. The transition from FP5 to FP6 was not found to be smooth, although participants are generally more dissatisfied with the FP6 instruments than with the FP5 instruments. Further information

° EU companies increase R&D investment, but can't match non-EU competitors: the 2005 industrial research and development investment scoreboard shows increased R&D investment by European companies – amounting to 0.7 per cent growth rate.  This compares to a 2004 decline of two per cent, leaves EU companies lagging behind their top non-EU counterparts, who in 2005 experienced R&D investment growth of seven per cent.  Nonetheless, the world's biggest investor in R&D is now a European company - Daimler-Chrysler.  In the EU, business is the source of 54.3 per cent of total R&D investment, compared to 74.5 per cent in Japan, 63.1 per cent in the US and 60.1 per cent in China. Further information . For the investment scoreboard: http://eu-iriscoreboard.jrc.es/

° Publication of first preliminary results for 2004 on Research & Development in the EU

In 2004 the EU25 spent nearly 200 billion euro on Research & Development.

·         In relation to GDP, EU25 R&D expenditure remained stable at 1.9% in 2004 (1.92% in 2003)

·         In real terms, EU25 R&D expenditure grew by 1.3% per year between 2001 and 2004

In 2003, R&D expenditure was 2.59% of GDP in the United States, 3.15% in Japan and 1.31% in China.  (Eurostat  press release Full text , see also the Annexe to this ECCE Brussels Brief)

° UK government publishes report on the risks of nanoparticles: The  report by the UK's Department for the Environment, Food and Rural Affairs (Defra) identifies three key areas requiring further research to develop a risk management framework for nanoparticles: characterising, defining and measuring nanoparticles; understanding the impact of nanoparticles on humans and the environment, and understanding where nanoparticles come from and how they travel through the environment, including the human body.  The report focuses on a range of free engineered nanoparticles which previous reports from the Royal Society and Royal Academy of Engineering (RS/RAEng) and the European Commission's Scientific Committee on Emerging and Newly Identified Health Risks have identified as areas of concern.     Full text of the report 

INFORMATION TECHNOLOGY:  

° European Commission Communications Committee Report on Broadband access in the EU: The situation at 1 July 2005 is presented in the above report which indicates, inter alia, that Germany, France and the U.K. together account for nearly 52% of all broadband connections.  Italy, Spain and the Netherlands follow.  The new Member States account for 4% of the total. Full text

° dotEU Successfully Launched:  EURid opened its systems to receive applications for .eu domain names at 11.00 a.m. on 7^th December 2005.   Some 800 Registrars in 25 countries sent in the first applications they received from numerous candidate domain name holders all across the EU. European Registry of Internet Domain Names -- .eu Registry

° Speech by Commissioner Vivien Reding on ICT Take-Up in Europe highlights i2010 Strategy

The i2010 initiative – a European Information Society for growth and Employment, was adopted by the Commission in June and will run from 2006-2010.  Viability relies on suitable conditions to ensure growth: 1. fast and accessible broadband access 2. development of new services and applications, reliant upon clear legal framework and actions to promote interoperability; 3.  increased investment in ICT research and development; 4. response to users' increasing concern on the security of transactions and communications.  There are three specific policy objectives: 1. creation of a "common information space" (open and competitive single market for communication and media services; 2.  encouraging private/public research and innovation in ICT; 3. better use of ICT to improve European quality of life and social inclusion. Full text  of the speech.

° Potential effect of Data Retention vote in European Parliament on growth of ICT:  In light of the 13th December vote on Data Retention in the European Parliament Plenary, E-communications service providers, through their trade associations and also the American Chamber of Commerce to the European Union (AmCham EU) called upon EP Members to support amendments which would not further damage EU competitiveness. It was considered that Council proposal requirements would necessitate telecommunication companies storing 50 or more times data than at present.  This would dramatically increase the providers' compliance costs.

AmChamEU cited investment figures in support of this position: In the EU, 40% of productivity growth for 1995-2000 stemmed from ICT.  The EU invests much less in ICT than the US or Japan.  In 2002, private ICT investment in the US was more than three times higher than the corresponding figure for the EU-15, whereas public sector investment was 2.5 times higher. Japan invested more than the EU-15 in R&D in the ICT sector. As a result of these low investments, the EU not only lags behind the US, it is also passed by countries such as India, China and Japan.

(ECTA -European Competitive Telecommunications Association - www.ectaportal.com,  ETNO-the European Telecommunications Network Operators' Association - www.etno.be   EuroISPA - the European Internet Services Providers Association - www.euroispa.org GSM Europe  www.gsmeurope.org  ECCA -The European Cable Communications Association http://www.ecca.be;   American Chamber of Commerce in the EU )

General information on ICT policy may be found on: DG Information Society

EDUCATION, TRAINING AND PROFESSIONAL RECOGNITION:

° 

Proposed Regulation concerning the production and development of statistics on education and lifelong learning Full Text

THE ENVIRONMENT:  

° Commission reviews EU Sustainable Development Strategy (SDS): In the Commission’s view this provides a platform for action for stakeholders to make change happen; identifying key issues (e.g. climate change and energy efficiency) where faster action is needed; it will link the effect of EU polices on sustainability in third countries and vice-versa. It also proposes “inter-linkages” - a means for progress in one area to produce positive spin-offs in others.  As practical initiatives it proposes: measures to develop future products and processes through RTD investment and better regulation (to achieve e.g. cleaner and more efficient cars, information and communication technologies, use of renewable energy sources and hydrogen).  Work with other countries is proposed to cut greenhouse gas emissions beyond existing commitments for 2012.  An energy- efficiency action plan would help realise a possible 20% savings (e.g. in buildings Europe-wide.)  A review is proposed of the EU Emissions Trading Scheme to consider extending it (e.g. reducing greenhouse gas emissions aviation and maritime transport).  Improvements are proposed to coordination and delivery of development aid and strengthening EU leadership on global sustainable development.  Full text    Frequently asked questions on the review of the EU Sustainable Development Strategy    

The immediate response from environmental organisations, such as the European Environmental Bureau (EEB), the Commission failed to respect the demands from the European Council of June 2005 regarding the new EU Sustainable Development Strategy. The EEB condemned the lack of urgency, leadership, targets and timetables, and found the Strategy poor on concrete actions, seeing it as a step backwards compared with the earlier Sustainable Development Strategy, adopted by the EU in Gothenburg in June 2001.  European Environmental Bureau

° Commission’s Sixth Annual Report on Progress Towards Achieving the European Community Kyoto Target: The report is required under Decision 280/2004/EC in order to monitor Community greenhouse gas emissions and for implementing the Kyoto Protocol (280/2004/EC). The report analyses actual emissions data from 2003. Greenhouse gas emissions from the EU-25 and the EU-15 both increased in 2002-2003, though emissions were below base year emissions by 8% and 1.7% respectively, whilst the EU-15 experience 27% economic growth.  Projections indicate that the EU-15 will reach the reduction target of -8% with additional measures and with the use of flexible mechanisms, such as the European Emissions Trading Scheme launched on 1st January 2005 which is the largest greenhouse gas trading scheme in the world. Full Text

°  European Commission will pay an additional 853,000 EUR to support Kyoto’s flexible mechanisms and technology transfer: The contribution agreed with the Secretariat of UN Framework Convention on Climate Change will support operating the Clean Development Mechanism (CDM) and the establishment of the International Registry System, which will keep track of transfers of Kyoto emissions credits. (This amount includes Euro 100,000 to support information exchange on clean technology transfer). CDM allows countries with Kyoto emission targets to invest in emission-reducing projects in developing countries and count the achieved reductions towards their targets. EU Member States are expected to purchase over 540 million credits, each equivalent to 1 tonne of carbon dioxide equivalent, through the Kyoto Protocol’s flexible mechanisms.

°  The European Commission intends to establish a panel on environmental technologies: The panel would mobilise key players, generate new ideas and help the Commission define the next steps for action under the Environmental Technologies Action Plan (ETAP). The Commission will discuss the panel with the Member States over the next few months, with the aim of launching it in spring 2006. Further information on ETAP

°  Radioactive waste treatment centre for decommissioning of Ignalina Nuclear Power Plant The Ignalina Nuclear Power Plant and Germany’s RWE NUKEM GmbH have signed an agreement for the construction of a turnkey treatment centre for solid radioactive waste. The €120 million project will be financed by the Ignalina International Decommissioning Support Fund (IIDSF), which is administered by the EBRD.

°  Commissioner Dimas convenes high-level meeting to clean up the Mediterranean region by 2020 Horizon 2020’ is part of a renewed EU push for cooperation with its Mediterranean partners relating to the Euro-Mediterranean Partnership (the ‘Barcelona process’) and the European Neighbourhood Policy (ENP). The EU has already concluded ENP Action Plans with most of its southern and eastern Mediterranean neighbours. The aim is cooperation in political, economic and social areas, including the environment. In total, the EU has devoted €577 million to environmental cooperation with Mediterranean partner countries from 1995 - 2006 under the MEDA programme

°  Clean air in Europe's cities – six city EU funded ‘PEOPLE’ study: The study compared air pollution exposure of members of the public across six cities - Brussels, Bucharest, Dublin, Lisbon, Ljubljana, Madrid).  It also identified pollution ‘hotspots’.  Comparisons were made between smokers/ non-smokers and between modes of transport. Locations for environmental monitoring selected included schools, public offices, shops, cafés, bars, restaurants and taxis. As an example, Dubliners who don't smoke and commute to work recorded the lowest annual exposure levels to benzene, while Bucharest's population measured the highest. In Brussels, taxis had by far the highest ratio of benzene to background air norms. Bars in both Brussels and Madrid had high benzene ratios. Further information

° Partial political agreement on LIFE+ financial instrument for the environment: the Proposal for a Regulation of the European Parliament and of the Council concerning the Financial Instrument for the Environment (LIFE+) is set out for information: Full text of Document 15375/05  The proposal will be agreed once the 2007-2013 budget is adopted (and must conform with the budget).

° Environmental cases and breaches: Commission pursues nine infringement cases against Italy over inadequate waste management. In six cases, Italy failed to comply with rulings against it by the European Court of Justice. Under a law passed in December 2004 Italy also systematically defines waste more narrowly than EU law.  This allows certain types of waste to escape being regulated as such. Four cases relate to illegal landfills breaching the 199 EU Landfill Directive.

The Commission has decided to pursue legal action against Greece over four cases  of violations of EU rules to protect human health and the environment. The cases concern management of hazardous and non-hazardous wastes, incomplete transposition into Greek law of the Water Framework Directive 2000/60/EC  and bird conservation (Directive 79/409/EEC). In one case the Commission is taking Greece to the European Court of Justice over Greece’s failure to clean up an illegal waste dump in Crete. Greece has already been condemned by the Court twice over this dump, and made to pay a substantial fine.

The European Commission has decided to pursue legal action against Germany over two cases: one relates to fertiliser limits, the other to its list of nature sites for designation as sites of Community importance (SCI) under the 1992 Habitats Directive 92/43/EEC  Germany is obliged to pay costs.

Legal Cases: Case against Germany for failing to set up water framework as required by EU Directive 2000/60/CE: judgment (C-67/05) Judgment of the Court of Justice (Sixth Chamber) on 15 December 2005 Full text of this Judgment

Belgium’s Absence of a water framework for Brussels is in breach of Belgium's treaty duties: judgment (C-33/05) (Directive 2000/60/CE). Full text of this Judgment  Belgium must pay costs.

Further information: The Court of Justice of the European Communities

See also: http://europa.eu.int/comm/secretariat_general/sgb/droit_com/index_en.htm#infractions

For rulings by the European Court of Justice see http://curia.eu.int/en/content/juris/index.htm

ENERGY:

° Commission Policy and Renewable energy  – Communication by the Commission on Biomass Action Plan -  the Commission is carrying out a fundamental review of its energy policy. This will be the subject of a Green Paper in spring 2006, with three main objectives – competitiveness, sustainability and security of supply. Europe seeks to reduce dependence on energy imports, increase sustainability and stimulate growth and jobs. Based on stronger economic growth the policy should focus on the need to reduce energy demand; increase reliance on renewable energy sources, given the potential to produce them domestically and their sustainability; diversify energy sources; and enhance international cooperation.

The EU currently meets 4% of its energy needs from biomass. If it made full use of its potential, it believes it would more than double biomass use by 2010 (from 69 million tons of oil equivalent (mtoe) in 2003 to about 185 mtoe in 2010) while complying with good agricultural practice, safeguarding sustainable production of biomass and without significantly affecting domestic food production. It is considered that Bulgaria and Romania's accession will improve availability, and imports would offer more potential still. Full Text of report.

TRANSPORT:

° Final Report from High Level Transport Group the High Level Group comprised 53 countries and 3 international financing institutions. After a year of intensive work, the Group agreed a set of priority measures, focusing efforts on 5 major trans-national axes: these are ‘highways of the sea’ connecting the Baltic, Atlantic, Mediterranean and Black seas as well as the countries bordering them.  An extension across the Suez Canal is also considered; a North-East axis linking the EU to Norway as well as Russia and the trans-Siberian; a central axis linking central EU with the Ukraine and Black Sea as well as Russia and the trans-Siberian; a South-East axis connecting the central EU area across the Balkans and Turkey with the Caucasus and the Caspian Sea as well as the Middle East as far as Egypt and a South-West axis linking the South-West and the centre of the EU with Switzerland and also Morocco and the ‘trans-Maghrebin’ (North Africa) as far as Egypt. http://www.europa.eu.int/comm/transport/index_fr.html

° Public consultation on the report of the High Level Group on the extension of the main trans-European transport axes to the neighbouring countries and regions and the way forward - comments by 17 February 2006 Consultation page   Responses:(e-mail) TREN-TENT-extension@cec.eu.int  (post): European Commission, Directorate General for Energy & Transport, Unit B2-Trans-European Network policies, 1049 Brussels, Belgium.  A provisional date for a public consultation meeting will be 1^st March 2006.

° Reduction of pollutant emissions and Climate Change: The European Commission is to propose two sets of measures to meet the commitments made by the EU Improving the energy efficiency and reducing polluting emissions of our vehicles is of crucial importance given the twin challenges of the Kyoto Protocol and the rise in petrol prices. http://europa.eu.int/comm/enterprise/automotive/pagesbackground/pollutant_emission/index.htm

° Transport policy – The results of the meeting of Ministers for Transport held in December is set out in a 51-page series of press releases on: http://ue.eu.int/ueDocs/cms_Data/docs/pressData/en/trans/87389.pdf

Reference point: Energy and Transport DG   

INFRASTRUCTURE FINANCING:

° European Investment Bank