EU POLICY

The Competitiveness Council held its first meeting under the Irish Presidency.  It sent a message to EU Heads of State and Government that a higher proportion of the EU budget should be invested in research and development.   The Council's reaction to the Commission's communication 'Europe and basic research' was non-committal.  Ministers await more detailed Commission proposals. The conclusions recognise the need to stimulate research excellence by encouraging greater competition in science-driven research and the need to improve exploitation of basic research results by supporting knowledge transfer between researchers in all sectors.

The conclusions also support voluntary coordination of resources, approaches and instruments to strengthen basic research. Ministers acknowledged the need to examine the case for specific funding for basic research in the Commission's next research funding programme, the Seventh Framework Programme (FP7). 'At the same time, an appropriate balance should be maintained with other priorities, approaches and activities in research, technological development and innovation,' state the Council conclusions.  The Commission intends to propose a set of operational mechanisms by May 2004, to 'add value to existing national approaches and provide a European dimension, with the objective of reinforcing the creativity and excellence of basic research in Europe.'

According to an Irish Presidency statement the Competitiveness Council will recommend a simplifi-cation and streamlining of rules and regulations affecting European industry and business at the forthcoming European Council.

Provisional conclusions of Competitiveness Council: http://ue.eu.int/pressData/en/intm/79379 .pdf

The Council's contribution to the Spring Environment Council focus principally on the environmental dimension of the Lisbon Development Strategy (i.e. putting environmental concerns on an equal footing with economic, employment and social elements). Four Commission communications were taken into account:

° Report to the Spring European Council: Delivering Lisbon ­ Reforms for the enlarged Union (5615/04).

° 2003 environment policy review: Consolidating the environment pillar of sustainable development (15824/03).

° Towards a thematic strategy on the sustainable use of natural resources (13239/03).

° Environmental Technologies Action Plan: Stimulating Technologies for Sustainable Development (5864/04).                   Full report

GENERAL EUROPEAN COMMISSION  INFORMATION: 

EUROPA The EU’s multilingual Internet portal, is being restructured in 2004.  A new-look home page was launched on 23rd January.  By end March the website will offer new user-friendly features, including animated graphs, interactive games, simpler navigation and an improved search function. The languages of the 10 new EU Member Countries will be added gradually.  Most remaining planned changes will be in place by summer 2004.

RESEARCH AND DEVELOPMENT

° Claim for higher contributions from EU Member States for research & innovation initiatives at EU level: Following news in last month’s Brief of a statement by Research Commissioner Philippe Busquin, the European Commission has now put forward a controversial proposal for 'commitment appropriations' to sustainable growth to rise from 47,582 million euro in 2006 to 76,785 million euro in 2013.  Today the EU's total budget is around 100 billion euro a year (0.98 per cent of EU GDP). From 2007 onwards, the Commission would raise that figure to 1.22 per cent of Gross National Income (GNI). This would still be less than the permitted upper limit of 1.24%.   Six Member States have already stated their desire to limit expenditure to 1 per cent of GNI.

In  research terms, the Commission's proposal outlines five areas requiring  more funding: (1) providing grants to research teams selected on a competitive basis; (2) strengthening physical infrastructure and human resources; (3) encouraging public-private partnerships; (4) stimulating the development of 'poles of excellence'; and (5) coordinating national research programmes. The proposal also outlines the importance of increased investment in the related EU policies of space and security.  http://europa.eu.int/eur-lex/en/search/s earch_lip.html 

° 'Statistics on science and technology in Europe' publication shows EU R&D spend is almost 2 per cent of GDP: The EU’s estimated 2002 total is 1.99 per cent of GDP, up 0.01 per cent from 2001. This compares with 2000 figures for the US of 2.8 per cent and Japan 2.98 per cent. In 2001, nearly 2/3 of EU total R&D investments came from three countries: Germany (52 billion euro), France (33 billion euro) and the UK (30 billion euro). However, in 2002 French research spending fell to 2.20 per cent of GDP (from 2.23 in 2001); the UK dropped to 1.84 per cent (from 1.89).  This offsets progress achieved in smaller EU countries such as Finland (3.49 per cent of GDP in 2002). Acceding countries face a greater challenge: the overall proportion of R&D spending in new Member States was 0.84 per cent in 2001. Slovenia and the Czech Republic invest 1.52 per cent and 1.33 per cent of GDP respectively. The lowest level is in Cyprus, where research spending is 0.26 per cent of overall income. 

° Commission and Space Agency lay steps for action plan on GMES - Global Monitoring for the Environment and Security:  The plan outlines firm steps towards the establishment of a system to co-ordinate and enhance existing Earth observation and monitoring information from satellites and Earth-based sensors to support better decision-making for the environment and security. The initiative aims at providing independent, cost-effective, and user-friendly services that can help to anticipate or address crises such as forest fires or floods, and lead to better management of issues ranging from the protection of the environment to combating illegal immigration. Existing EU 6th Research Framework Programme funds plus European Space Agency (ESA) "GMES Services Element" funds will help to develop information delivery services in the 2004-2006 timeframe. It is estimated that €80 million would be required in 2007, with an increase to €150 million in subsequent years for service provision alone. http://www.gmes.info/

° Germany celebrates record participation levels in FP6 projects: German universities, research institutes and businesses are involved in more than 80 per cent of the projects selected for funding this far. The Ministry for Education and Research believes the portion of FP6 funding collected by German researchers will be around Euro one billion, much higher than that flowing in the direction of other Member States or associated countries. Most proposals in which German research teams are involved address the fields of information technology, closely followed by nanotechnology, new materials and production processes.

° Romania requests cut in financial contributions to FP6 Brussels: The European Commission is considering a request by the Romanian government for a decrease in the country's budgetary contribution to the Sixth Framework Programme (FP6).  Of the three remaining candidate countries, Romania currently channels the highest percentage of its gross domestic expenditure on research and development (GERD) into the Framework Programmes i.e. 19 %, Bulgaria allocates 12 % and Turkey contributes 7.5 %.  http://www.cordis.lu/romania

° ECCE Task Force Chairman publishes Guide for the Construction Research:  Olvai Tupamaeki, former RTD Task Force Chairman has produced a guide in the English language covering all the EU6RTD calls in CREC's interest open now, plus updated info on EUREKA and COST, and more. This may be found on: http://www.villareal.fi or directly http://onlinebookshop.villareal.fi/.

INFORMATION TECHNOLOGY:

° On 26^th/27^th February, the Irish Presidency hosted an information society conference  'New opportunity for growth in an enlarged Europe' in Budapest, Hungary.  Invited participants included Ministers from the 10 acceding countries, 3 candidate countries, EU Member States and the South-East European countries.  The agenda included an assessment of progress made in implementing the eEurope+ action plan in the candidate and acceding countries, the eEurope 2005 mid term review, and information society challenges facing Europe as a whole. http://www.emcis2004.hu

° Commission plans call for design and maintenance of eLearning Internet portal:  A prior information notice has been issued for a future call to update, design, run and maintain the Internet portal for the eLearning Programme.  Further info: http://www.elearningeuropa.info.

° E-commerce and Internet in European businesses. Results of the "ICT usage of enterprises 2002 " - survey. Eurostat. February 2004.  Please click here for  Full text  See also web-site of D G Enterprise  http://europa.eu.int/comm/enterprise/ind ex_en.htm

° OECD Report  Identifies "Disappointing" Use of ICT in Upper Secondary Schools: Despite large sums of money spent on ICT, fewer than 20 per cent of students attend schools with enough workstations for every teacher to have one. In 11 out of 14 countries surveyed, a shortage of computers for students was cited as one of the biggest obstacles to greater ICT use. Only in Denmark, Sweden and Korea do proportions a minority of teachers who countries regularly use standard computer applications reach 60 per cent.  Principals in most country state this is normally only a minority.  These figures appear surprisingly low, given ICT use in other walks of life. Most common reasons cited for under-use are: difficulties in integrating ICT into classroom instruction; problems in scheduling enough computer time for classes; teachers' lack of ICT skills and knowledge. Principals report that recruiting ICT teachers is by far the most difficult recruitment problem that they face across all school subjects. Further information   (Report also available in French and German). 

EDUCATION, TRAINING & PROFESSIONAL RECOGNITION:

° Ireland’s Education Minister queries whether universities should continue to supply both teaching and research:  Minister Noel Dempsey raised the question when he opened the 'Learning in the Europe of knowledge' conference in Galway, Ireland, on 6th February.  He asked whether this arrangement should continue to be 'the norm' and cited the grandes écoles in France and arts colleges in the US, which successfully focus on scholarship rather than research.   The minister also alluded to the funding crisis facing many universities in Europe, and outlined possible strategies for resolving the issue.  Mr Dempsey suggested that debate should focus on increasing private resources invested in higher education. The Australian and proposed UK models involve graduates paying for their time in university once their salary is above a set threshold.

° An EU Enlargement survey by CEDEFOP (European Centre for Development of Vocation Training) has been published in 11 languages.  CEDEFOP, based in Thessaloniki, Greece, welcomes further contributions:  http://www2.trainingvillage.gr/etv/exchange/surveys/    CEDEFOP’s activities include the European Training Village (ETV), an interactive website.  Those involved in any aspect of vocational training can send news, participate in virtual conferences, exchange information and register on mailing lists. A newsletter, Cedefop Info, in English, French and German provides updates on studies and reports on vocational training issues, such as quality, transparency, the accreditation of non-formal learning, sectoral trends, new qualifications, mobility and funding.  There are also Study visits in other Member States on themes of Vocational Education and Training. http://www.cedefop.eu.int/  

° Further education and training Information available by hyper-link:

1. Proposal for a Council Regulation amending Regulation (EEC) No 337/75 establishing a European Centre for the Development of Vocational Training.  Further information available: Full Text

2. Commission's  Annual report on European Training Foundation, 2002  - http://europa.eu.int/eur-lex/en/com/rpt/2003/com2003_0809en01.pdf 

THE ENVIRONMENT:    

° Commission Communication - approach and consultation to help Europe's towns and cities improve their environments: The Communication focuses on sustainable urban management and urban transport, as well as sustainable construction and design.  It proposes that the largest EU25 towns and cities (around 500 with over 100,000 inhabitants) develop and implement an urban environment management plan and an environmental management system to ensure its delivery. In addition, cities need to develop and implement a sustainable urban transport plan to reduce environmental impacts of urban transport and help them meet their air quality targets.

The Commission calls on Member States and regional bodies to adopt strategies for improving the urban environment and to provide support to local authorities who must prepare their own plans. Regional and local strategies need to be linked to national sustainable development plans. National or Regional Focal Points for the Urban Environment would promote best practice and support towns and cities.  Extensive consultations on this approach will take place during 2004, including an open internet consultation (until 1 April 2004). http://www.europa.eu.int/comm/environment/urban/thematic_strategy.htm 

° Parliament and Council reach agreement in Conciliation on environmental liability directive:  The agreement will be formalised in March.  The directive will enter into force this year and the national implementing legislation must be in place three years later.  In a clear shift towards the "polluter pays" principle, the cost of cleaning up will be borne by the company or other operator that caused the damage. If this is not possible, relevant authorities may, as a last resort, take the necessary measures themselves to repair damage. Companies could take out insurance or use other forms of financial guarantee to cover themselves. Following pressure from Parliament, when the Commission reviews the legislation in six years' time, it will check whether such insurance and guarantees have actually become available at a reasonable cost throughout Europe. If not, the Commission may propose legislation setting up a standardised compulsory financial guarantee scheme.

Oil pollution is a special problem. An international compensation fund set up in 2003 is financed by oil customers rather than ship-owners. MEPs believed this would reduce ship-owners' incentive to act responsibly.  The Commission has now agreed to look at ways of shifting more responsibility towards ship-owners when it conducts another review after 10 years.

° European Commission rejects all calls to change its position concerning Kyoto Protocol ratification and full implementation by the EU. This position was affirmed by Commission President Prodi speaking in Brussels on 26^th February. The Kyoto Protocol to the United Nations Framework Convention on Climate Change was ratified by the European Union and its Member States on 31 May 2002. In the meantime, 121 Parties have ratified, representing two-thirds of the world's population. Under the rules of the Protocol and following the decision by the United States not to ratify, the Protocol will enter into force once Russia has ratified. The Kyoto Protocol commits the EU to reducing its greenhouse gas emissions by 8 per cent between 1990 and 2008-2012. Under its internal "burden-sharing" agreement, that became legally binding for the Member States when the EU decided to ratify the Kyoto Protocol (Council Decision 2002/358/EC of 25 April 2002), each Member State has accepted a target for limiting or reducing its greenhouse gas emissions.

° Commission Communication: Stimulating Technologies for Sustainable Development: An Environmental Technologies Action Plan for the EU ETAP Communication Text      

° European Pollutant Emission Register (EPER) launched.  “EPER 2004”, the first Europe-wide register of emissions into air and water from around 10,000 large and medium-sized industrial installations (including large pig and poultry farms) has been launched by European Commission and Environment Agency (EEA). It covers 50 different pollutants.  Date is drawn from all Member States and Norway. From March Hungary will participate on a voluntary basis. http://www.eper.cec.eu.int/ 

° European Parliamentary question highlights disagreement – “which goods are covered by Directive 2002/96/EC on Waste Electrical and Electronic Equipment (WEEE)?” The response that scope is defined in Article 2 was followed by recognition that there is need for further clarification of the text agreed by Council and Parliament.  The Commission has tried to encourage a common under-standing of scope by Member States and industry via a ‘Technical Adaptation Committee’ (TAC) and has recently provided its own interpretation. (See: Verbatim report of proceedings on 12 February, Part A )

° Proposed urgent amendments to waste legislation – “recovery” definitions relating to waste:  The Council, Commission and European Parliament have noted the European Court of Justice's interpretation of the recovery definition in recent judgments and the effects of this interpretation on fulfilment of recovery targets.  They thus intend to review this issue at the earliest opportunity.  The Commission will propose appropriate amendments to the relevant legislation. This shall be “without prejudice to any future revision of the definition of recovery in the framework of the thematic strategy on waste prevention and recycling and, as appropriate, in the framework of horizontal waste legislation”.  Reference: Official Journal of the EC, No. L47/26 18.2.2004 Text

 (Note: The implication of recent Court judgements for the recovery targets of the Directive - the European Court of Justice's interpretation of the concept of "recovery" in its judgements C-458/00, C-228/00 and C-116/01 was the subject of considerable debate. The definition of recovery, which is the same as that in the Directive on packaging and packaging waste, refers to Annex IIB to the Waste Directive. Judgements concluded that waste incineration with energy recovery does not constitute recovery if that is not the main purpose of the operation. This changes Member States' understanding of "recovery" in the context of the original Directive and its targets.  As a result some Member States could find themselves unexpectedly in contravention of the Directive and possibly liable to infringement proceedings. During the February Parliamentary Session, a compromise solution was finally found, namely, to modify the relevant parts of the text of the original Directive, in order to clarify that waste incinerated at waste incineration plants with energy recovery can count towards the Directive's targets.)

° Directive text for reference: Proposal for a European Parliament and Council Directive amending Directive 94/62/EC on packaging and packaging waste Full Text  Inter alia, the revised packaging directive sets increased recovery and recycling targets to be achieved by 31 December 2008.

° New OECD Book on Greenhouse Gas Emissions Trading and Project-Based Mechanisms covers the experience of developing and transition countries with greenhouse gas emissions trading and project-based mechanisms. Also examined is the use of tradeable permits in policy mixes and harmonisation of emissions trading schemes. Further information  Organisation for Economic Co-operation and Development  http://www.oecd.org

° Environmental cases:

Belgium has been ordered to pay costs for failure to communicate reports required under Directives 76/464/EEC, 78/659/EEC and 80/68/EEC - Standardising and rationalising reports on the implementation of certain directives relating to the environment with reference to report in respect of the Bruxelles-Capitale Region required under Article 2(1) of Council Directive 91/692/EEC  (Case Reference C-406/02 of the Third Chamber of the Court of Justice)

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

ENERGY:  

° Council of Ministers publishes text of Directive on the Promotion of Cogeneration based on a “useful heat demand in the internal energy market and amending Directive 92/42/EEC .  For Directive text please click on Full text of Document 3608/04 , for further information: Suite of documents 3608/04

° Conclusions of European Conference for Renewable Energy 'Intelligent Policy Options', Berlin, 19-21 January 2004: Now available on-line: Conclusions Session 1 The Campaign for Take-Off 1999-2003: Sharing skills and achievements to foster Renewable Energy development in Europe; Conclusions Session 2 Implementation of Renewable Energy Sources Policies in the European Markets

Conclusions Session 3 Looking forward - Horizon 2020, also:  Chair Conclusions and recommendations to the World Renewable Energy Conference, Bonn, June 2004   For further details please see also: http://europa.eu.int/comm/energy/res/ber lin_2004/index_en.htm

° EESC Opinion publishes its Opinion on Renewable energy policy:  The report indicates that at present neither most Member States nor the EU as a whole seem likely to reach their targets for increasing use of renewable energy sources by 2010.  As there are no EU-wide guidelines for RES support systems, Member States have applied national ones.  These vary greatly in approach, design and intensity.  Many existing schemes should be critically reviewed for cost-effectiveness.  No-one fully meets requirements for RES support schemes to be effective, not to distort the market and to enhance competition and innovation.  In some cases the high cost of RES promotion schemes is starting to raise concern and may develop into a political backlash for the goal and policies of increasing renewables. Full text of Opinion     Web-site: European Economic and Social Committee

TRANSPORT:

° CO2 emissions from new cars in the EU down by 10.8% 1995-2002: Road transport generates more than 1/5th of all CO₂ emissions in the EU.  Passenger cars are responsible for over half these emissions.  The EU's goal is to reach a 35% reduction by 2010 at the latest. The 4th Annual Report on CO2 Emissions from New Cars indicated that European and Japanese carmakers are on track to meet their commitments, whilst the Korean car industry is still somewhat lagging behind.

° Road safety: Commission welcomes new rules to eliminate 'blind spot' on motor vehicles

INFRASTRUCTURE FINANCING:

° Lending from EIB

The EIB is providing a Euro 25 million loan for the construction of education facilities and for  upgrading the urban infrastructure in the city of Vantaa, within the Helsinki metropolitan area.

EIB Loans in Italy in 2003 ran to just under EUR 6 billion (EUR 5 925 million), slightly less than 2002's total (EUR 6 031 million). The Italian portfolio of over EUR 30.5 billion accounts for about 15% of aggregate loans disbursed by the Bank in the EU. Environmental protection projects benefited from a total of EUR 3 billion. In 2003, the EIB supplied finance benefiting urban areas in Rome, Ferrara, Padova, Genoa (City of Culture 2004), and Turin (Winter Olympic Games) Civil protection projects received Euro 180 million for reconstruction in 16 regions affected by natural disasters.  Over Euro 80 million went to reconstruction of infrastructure and flood prevention in Tuscany and Valle d'Aosta, which were hit by floods in 2000. Land transport benefited from loans totalling EUR 360 million, which helped to modernise rolling stock and connected Trenitalia's passenger train systems. 

Further Information on European Investment Bank loans is to be found on http://www.eib.org

° Lending from EBRD, the European Bank for Reconstruction and Development

Information on EBRD activity is to be found on: http://www.ebrd.org

Next Page >>>>