Back to Business in Brussels after the August break.  The Danish Presidency deals with the challenge of enlargement.  Johannesburg Summit features on the global agenda (see supplement).  

Supplement: WORLD SUMMIT ON SUSTAINABLE DEVELOPMENT SUPPLEMENT  -   SEPTEMBER 2002

PRESIDENCY ACTIVITIES

At the end of September The Danish Vice-Prime Minister Bendt Bendtsen and the Danish Minister for Science, Innovation and Technology Helge Sander co-chaired the first “Competitiveness Council” which incorporates Ministers for Internal Market; Industry and Research.  The Competitiveness Council’s aim is to strengthen EU competitiveness and make the EU the most dynamic knowledge-based economy by 2010.  The agenda included public procurement, insurance intermediaries, corporate governance, modernisation of the Accounting Directive and the First Company Law Directive, barriers to the internal market for services, simpler and better regulation, co-ordination of economic and employment policy, modernising regulations on fertilisers (the cause of the September 2001 Toulouse explosion) and research programmes. One of the stated results following the meeting was the securing of “Better regulation of EU legislation, which means simplified rules and more thorough and publicly accessible impact assessments and hearings on new proposed legislation”; also “New and improved rules for the procurement procedures of utilities to strengthen competition”. 

Under the Danish Presidency a conference was held in Aalborg on 19^th and 20^th September on environmental governance at which the European Sustainable Cities Award 2002 was launched.  Established in 1996, the Award aims to recognise and support progress made towards sustainability by European local authorities.  Winning cities represent outstanding examples of good practice and commitment to sustainable development and Local Agenda 21.  The conference also dealt with information, implement of EU law and how integration of environmental issues and other policy concerns. 

Presidency web-site: www.eu2002.dk

NEWS ITEMS FROM THE EUROPEAN INSTITUTIONS:

RESEARCH AND DEVELOPMENT

The Euro 17.5 billion Sixth Framework Programme for 2002-2006 was given the go-ahead on 30^th September by the Competitiveness Council.  Activities can be launched before the 5^th Framework Programme concludes at end 2002.  It has taken over two years to negotiate the programme which contains new types of instrument to deal with implementation and offers seven priority themes from genomics and information technologies to food quality and global change.  Co-ordination and networking of national RTD policies will constitute an important part of the activities in creating a European Research Area.  The EU’s Joint Research Centre activities will be financed via specific programmes and Nuclear Energy is covered by two specific programmes based on the Euratom Treaty. 

Commission presents roadmap to increase research investment: A Commission Communication presented on 11^th September “More research for Europe” looks into the lack of investment in science and technology in Europe and the consequences for competitiveness, growth and employment.  US R&D expenditure exceeds that of the EU by Euro 120 billion per annum.  Europe’s research spending is 1.9% of GDP, well behind the goal of 3% of EU average GDP.  Greece, Portugal, Spain and all candidate countries except the Czech Republic and Slovenia spend less than !% of GDP on R&D, but is over £% of GDP in Sweden and Finaldn and above 2.5% in Germany.  The main challenge stated is to increase R&D business funding in Europe, which should be raised to 2/3 of R&D expenditure. 

Framework conditions identified in the Communication include: supply of high quality human resources, strong  public research base with upgraded links to industry, dynamic entrepreneurship culture, appropriate systems of intellectual property rights, competitive environment with research and innovation-friendly regulations and competition rules and support financial markets, macro-economic stability and favourable fiscal conditions.

SME research budget: in recognition of the fact that small and medium enterprises (SMEs) account for 66% of Europe’s private sector employment (46% in USA, 33% in Japan), the Sixth Framework Programme is allocating Euro 2.2 billion to SMEs.  Euro 1.7 billion will go to SMEs developing innovative products and processes in areas such as bio-technology, information technology, nanotechnologies and materials, aeronautics, energy and transport, food and food-processing safety.  The rest of the budget will focus on SMEs across all sectors.  Further information: http://europa.eu.int/comm/research/sme/leaflets/en/02.html http://sme.cordis.lu/home/index.cfm     http://www.days4smes.org (outlines the 4^th SME Technology Days held in Leeds, U.K. in late September 2002)

Opportunity to see hydrogen technology in action was given on Sunday 22^nd September when Commission Busquin organised a ride across Brussels in a prototype fuel cell bus to mark European Mobility Week and the Car Free Day .  The Commission intends to establish a High Level Group on hydrogen, considered to be potentially the clean energy source of the 21^st century.  Total EU public funding for research in this area is estimated at around Euro 50-60 million per year, 1/3 of that in the US and a ¼ of that in Japan. http://europa.eu.int/comm./research/energy/nn/nn_rt_hy3_en.htm  Clean Urban Transport for Europe (CUTE) project: http://europa.eu.int/comm./energy_transport/en/prog_cut_en.htm     http://www.fuel-cell-bus-club.com

Ecological Transport System (ECTOS) project: http://www.newenergy.is/ectos.asp

EDUCATION:

News from the SEFI September Press Review:

·         The UK’s National Union of Students has revealed that a large number of students graduate from university with debts of up to EURO 23,947.  Many students have to take part time jobs, working up to 35 hours a week leaving little time to study.  The banks are partly to blame, it appears: it is all too easy for students to borrow large sums of money.

·         An article in The Times newspaper states that new government plans mean that less popular universities will be forced to close or be taken over by stronger rivals, whilst the over-subscribed universities will be encouraged to expand to welcome more students.  A report has been published showing that the higher education sector as a whole is making a loss.  It has been alleged that eight universities risk closure (Luton, South Bank University, Lincoln, Greenwich, Hull, London Metropolitan University, Coventry and Leicester) although these claims have been denied.  (Ref: www.timesonline.co.uk)

·         France has been recruiting overseas students: In July 2002 Luc Ferry, Education Minister visited Moscow in the hoping of attracting 5,000 more Russian students in years to come.  France has seen a 30% increase in the number of foreign students there over four years and is now in 2^nd place after Great Britain.  For 2002 France calculates its foreign students to total 159,000 (11.4% of total student number).  81,000 scholars come from Africa, 24,000 from Asia (5,000 from China), 16,000 are from non-EU Europe, mainly Romania.  (Ref: www.lemonde.fr)

·         Sweden has doubled its number of female professors since 1994.  They now account for 14% of full professors in a country which has 43% female members of parliament and 50% female government ministers.  The equivalent figure for female professors is 18% in Finland and 20% in the USA. 

·         USA: news in the ASEE Prism in September reveals that experienced staff members are being lost in engineering schools in the US.  Budgets are tight and where schools are forced to cut faculty size, offers are being made to senior faculty members to buy out the department.  Lack of funds is resulting in out-dated laboratories and equipment.  At the same time, it appears that student numbers graduating with engineering degrees has decreased steadily.  In 1985 there were 77,572 graduates, in 1998 this fell to 60,914.

The ENVIRONMENT:

(See also special supplement on the World Summit on Sustainable Development)

Nuclear Waste Disposal: A Commission Opinion dated 30^th August 2002 has approved plans for disposal of radioactive waste resulting from modifications at the Isar Nuclear Power Station KKI in Germany; the Neckarwestheim Nuclear Power Station GKN in Germany and from the dismantling of the UKAEA Dounreay Fast Reactor located in the United Kingdom (Ref: Official Journal of the EC, C208 3.9.2002)

Asbestos Exposure: A common position has been adopted on the proposal for a Directive of the European Parliament and of the Council amending Council Directive 83/447/EEC on the protection of workers from the risks related to exposure to asbestos at work.  The main objective of the amendment of the Directive is to introduce a single limit value for workers’ exposure (Art. 9) as opposed to two limit values under the original Directive.  Denmark, supported by Belgium, Germany and Greece urged the Commission to prepare a proposal for a total ban on activities exposing workers to asbestos as soon as possible.  The Commission awaits the opinion of the Scientific Committee on Toxicology, Eco-toxicology and the Environment that is at present examining the latest scientific evidence relating to chrysotile (white asbestos).

Commission funds 16 environment projects in Third Countries: The European Commission has approved 16 environment projects to share a total of Euro 5,773,355 funding under the LIFE Third Countries programme 2002.  15 projects will be implemented in the Mediterranean region, one in Russia covering projects such as hydro engineering in Bosnia-Herzegovina, land cover inventory in Croatia, urban wastewater treatment in Cyprus and waste management in St. Petersburg.  The total cost of the projects amounts to Euro 9,324,582.  The total budget for LIFE III (2000-2004) is Euro 640 billion which comprises LIFE Environment, LIFE-Nature and LIFE-Third Countries.

European Mobility Week was held from 16^th – 22^nd September and involved over 300 cities across Europe, including candidate countries and the Balkans.  The week culminated in European Car Fee Day on 22^nd September when more than 1300 cities in 35 countries established car-free areas in large parts of their town centres, enabling the public to rediscover their towns and cities on foot, by bicycle and by public transport.  Further info: http://www.mobilityweek-europe.org

Commission proposes Euro 1 billion Solidarity Fund to help with major disasters: On 11^th September the Commission approved a draft inter-institutional agreement between Parliament, Council and Commission to set up an EU Solidarity Fund.  It is proposed that the maximum annual amount available from the Fund shold be Euro 1 billion each year, from which about Euro 500 million would be made available for 2002.  A ¼ of the annual total is to be held in reserve until 1^st October each year.  The three institutions would have to reach agreement to mobilise funds in the event of a disaster.

Flooding: The Commission has proposed increased support for Czech and Slovak farmers to help restore rural areas heavily affected by the mid-August floods.  To achieve this the Commission wants to amend the pre-accession instrument for agriculture ‘SAPARD’ so that the level of maximum public aid may be increased from 50% to 75% and the EU contribution from 75% to 80% for relevant projects in the affected rural areas.

Regional policy Commissioner, Michel Barnier announced on 10^th September that assistance from the Structural Funds will be sought to help clear up major flood damage caused in Southern France on 8^th and 9^th September.  The Union may also consider future specific support for prevention of natural disasters through part-financing of investment in land melioration works (soil protection etc), control of watercourses and local warning system.

The EIB has launched a Central European Flood Relief programme, for financing flood relief in Austria, the Caech Republic, Germany, Slovakia and Hungary, to be implemented in close co-ordination with the European Commission. Euro 5 billion in total is under consideration for this fund.  A first Emergency Framework Loan of Euro 1 billion is currently put in place for immediate measures in the affect regions.

The U.K.’s Environment Agency launched a campaign to promote flooding awareness before the winter flood season.  http://www.environment-agency.gov.uk/

European Commission’s Sixth Environment Action Programme accepted: The Official Journal of 10^th September 2002 (OJ L242/1) has published a Decision no. 1600/2002/EC of the European Parliament and of the Council of 22^nd July 2002 laying down the Sixth Community Environment Action Programme (See also D.G. Environment section on the Europa web site for full details of the programme http://europa.eu.int)

Clean air project for EU cities: the PEOPLE (Population Exposure to Air Pollutants in Europe) project was presented in Brussels on 17^th September.  70-80% of pollution in European cities comes from traffic and the PEOPLE project supports  the WHO Healthy Cities project and also forthcoming EU legislation on benzene (Directive 2000/69/EC on air pollution by benzene which will come into force at end 2002).  The project is starting in Brussels and Lisbon but will also involve Bucharest, Budapest, Dublin, Krakow, Ljubljana, Madrid, Paris and Rome.  The results will be presented in 2003 and will include city mapping in various urban settings and pollution levels.  Further details: http://www.people-pt.net/eindex_html

TRANSPORT:

Launch of the Italy-Turkey pan-European Corridor through Albania, Bulgaria, Former Yugoslav Republic of Macedonia and Greece: The Memorandum of Understanding was signed in early September and conditions are now in place to undertake concerted efforts to develop this corridor which links Italy to Turkey.  This MoU is the last to be signed of the 10 Pan-European corridors outlined at the Helsinki European Council in 1997.  All projects are now launched.

“E-mobility – towards intelligent transport” was the theme for ERTICO’s September 2002 Conference.  The number of cars in the European Community rose nearly 3 times from over 60 million to nearly 175 million between 1970-2000.  The number of private cars in the Community is still rising by nearly 3 million per year.  Emphasis was place don the e-Safety initiative for road transport.  Further developments are expected in intelligent integrated safety systems (these including taking into account the environment around the vehicle); car manufacturers are improving car design to better protect pedestrians.  It is expected that a communication will be adopted on European e-Safety Action Plan for road safety by end 2002.  A similar message was given at the eSafety Congress “IT Solutions and Security in Intelligent Transport” held in Lyon on 16^th September.

See also: http://europa.eu.int/information_society/programmes/safety/index_en.htm

Galileo – European Satellite Radio-navigation Project – progress report: on 24^th September the Commission adopted a communication on the state of progress with the programme, discussing services to be provided, security questions, relations to the US and international co-operation with other third countries. http://europa.eu.int/comm./energy_transport/en/gal_en/html

The European Commission has presented a comprehensive new strategy on the taxation of passenger cars.  The Commission recommends gradual reduction and even abolition of registration taxes, to be replaced by annual road taxes and fuel taxes (so that the tax burden would remain the same but related to the use of a car rather than its acquisition).  The Commission recommends a certain degree of approximation of annual road taxes to prevent car market fragmentation and also examines ways of restructuring existing vehicle taxes so as to put more emphasis on environmental objectives in line with Community policy and the Kyoto Protocol. Currently only one Member State (UK) applies a CO2-based road tax.  Two studies have been carried out for the Commission: http://europa.eu.int/comm./taxation_customs/publications/reports_studies/report.htm

The full text of the Communication on the Taxation of Passenger Cars in the EU is available on: http://europa.eu.int/comm./taxation_customs/whatsnew.htm

Road safety: The Red Cross European Road Safety campaign was celebrated on 12^th September in Brussels with support from Transport and Energy Commissioner Loyola de Palacio.  It is aimed at the 15-24 age group, most subject to road accidents.  The campaign has received almost Euro 900,000 funding from the Commission and is being conducted all round the EU throughout 2002.  The Commission is planning further initiatives for road safety such as: identification and signalling of black spots in the road network; safety audits for roads receiving Community funding; better knowledge of how dangerous it can be to use drugs or certain medicines when driving; better training of drivers and safety in the road tunnels of the trans-European network.

Further information: http://www.1-vie.info/   http://europa.eu.int/comm/energy_transport/en/lb_en.html http://europa.eu.int/comm./transport/themes/land/English/lt_7_en.html

INFORMATION TECHNOLOGY: A major I.T. event ”IST 2002 Partnerships for the Future” will be held in Copenhagen on 4^th-6^th November, allowing researchers to meet with a view to forming consortia in this field.  The total EU research budget for the IST priority is Euro 3,625 million complemented by a Euro 200 million budget for developing the GEANT research network infrastructure and grids.  http://2002.istevent.cec.eu.int

PUBLIC PROCUREMENT: An EU Regulation establishing a single classification system, the Common Procurement Vocabulary (CPV) for public procurement in the EU, proposed by the Commission in August 2001, was approved by the European Parliament in September 2002.  CPV replaces four previous nomenclatures and should allow suppliers to easily find and understand contract opportunities across the EU, no matter what language the tender notice is originally written in.  It will also make it possible to process published data electronically.

At the end of September the Council of Ministers adopted a political agreement on the proposed Directive to simplify and modernise existing legislation on public procurement in the water, energy and transport sectors (the Utilities Directive).  The political agreement also allows Member States to apply the rules of the Directive to the postal sector.  Private companies will be subject to these rules only where the special or exclusive rights given them by Member States mean that they enjoy comparable privileges to those of public undertakings (e.g. if they have the right to place network equipment under the public highway).

The Council already reached political agreement in May 2002 on that part of the legislative package which covers rules for the procurement of works, supplies and services in sectors other than water, energy and transport.  The Council is due to adopt formal Common Positions on both proposals in the next few weeks; after this the proposals will return to the European Parliament for their second reading.

Green procurement principle accepted in Judgement on Finnish bus network procurement: The European Court of Justice (ECJ) published its judgement on Case C-513/99 on 17^th September 2002 (Ref; CJE/02/73) regarding Concordia Bus Finland Oy Ab v Helsingi Kaupunki and HKL-Bussiliikenne.  The case relates to the decision by Helsinki City Council on 27 August 1997 to introduce tendering progressively for the entire urban bus network.  Call for tenders appeared in a letter of 1^st September 1997 by which it was clear that the contract would be awarded to the undertaking whose tender was economically most advantageous overall to the city on the basis of 3 categories of criteria: overall price, quality of bus fleet and operator’s quality and environment programme.  The contract was awarded to HKL- Bussiliikenne but was challenged by runner-up Concordia which argued that it was unfair and discriminatory to award additional points for a bus fleet with nitrogen oxide emissions and noise level below certain limits.

The key question vis-a-vis Community legislation was whether this legislation, correctly interpreted, allows a municipality which organises a tender procedure for the operation of an urban bus service to include operators’ ecological and quality management in the comparison of tenders.  The Court of Justice has allowed this, providing that criteria are connected with the subject-matter of the contract; do not give the contracting authority an unrestricted freedom of choice, are expressly mentioned in the contract documents or the tender notice and comply with all the fundamental principles of Community law, in particular the principle of non-discrimination.  The ECJ also said the principle of equal treatment does not prevent taking into consideration of criteria of protection of the environment merely because the transport operator to whom the contract is awarded is one of the few undertakings able to offer a bus fleet which meets those criteria.  Further details: http://www.curia.eu.int

GENERAL INTEREST:

• In comparison to first quarter figures for 2002, construction sector production decreased in the second quarter by 1.2% in the euro-zone and by 0.8% in the EU15 according to the EU’s Luxembourg-based statistical office.  Viewed on an annual basis output fell by 1.3% in the euro-zone and by 0.2% in the EU15 over the same period, despite increases of 1.5% and 2.2% respectively in first quarter 2002.
• Construction of Europe in the wider sense was discussed at the European Economic Summit held in Salzburg, Austria on 16^th and 17^th September.  More information on the event, hosted by the World Economic Forum, can be found on http://www.weforum.org
• The UK’s Health and Safety Executive has launched a new online teaching aid for construction students and practitioners: web-site: www.learning-hse.com
• The Commission’s third quarterly report on the Euro Area shows that domestic demand does not match expectations.  The average growth rate for 2002 is unlikely to exceed 1%.  The next quarterly report should be released in December http://europa.eu.int/comm/economy_finance/publications_en.htm

Project financing:

EIB: September funding from EIB included a Euro 60 million loan for the construction and rehabilitation of urban infrastructure on the island of Gran Canaria. 

A Euro 100 million loan has been extended to Aquafin for the construction of sewage and wastewater treatment in Flanders.  The loan agreement in collaboration with Dexia Bank supports a major investment programme of nearly Euro 2.7 billion to improve the environment in Flanders Region in line with national and European environment objectives.          http://www.eib.org

Approval given to financial aid to German ‘Land’ investment in rail infrastructure: The European Commission has decided not to raise any objections to the financial aid made available by the Land government of Saxony-Anhalt to promote investments in railway infrastructure in the region.  The Commission finds that the notified aid scheme involves State aid, but concludes that the aid is compatible with the common market, as it meets the need of co-ordination of transport.  The Saxon-Anhalt regional government budgeted an amount of Euro 10 million for 2002 for the implementation process and envisages a total Euro 52 million budget for the entire period 2002-2006.

NEWS FROM THE EUROPEAN PARLIAMENT:

The European Parliament’s got back to business with a four-day plenary session in Strasbourg on 2^nd – 6^th September 2002.  Opening the session was the first reading of draft legislation on packaging and packaging waste (Ref: Report by Dorette Corbey MEP, Netherlands, ref: A5-0261/2002).  Further issues of relevance to engineering were a resolution presented by Environment Committee Chairman Caroline Jackson MEP on the need for the EU to improve the oversight and enforcement of implementation of EU law.  The Council of Ministers and the European Commission made statements on the devastation caused by recent floods in Central Europe.  A second reading was given to draft legislation designed to ensure that the public have more say over development plans and major planning issues, amending Directive 85/337/EEC (Ref: Eija-Riitta Korhola MEP of Finland Ref:A5-0255/2002).  Other business included to air transport and air traffic control systems, debates on Iraq and Afghanistan and the presentation of the EU’s draft budget for 2003 which is worth approximately Euro 96 million.    Reports presented included :

• International Joint Convention on the safety of spent fuel management and the safety of radioactive waste management, Rapporteur: Esko Olavi Sepaenen,   Ref: A5-0293/2002
• European area of lifelong learning report by Kathleen Van Brempt MEP, Belgium – Ref: A5-0224/2002

·         Universities and higher education in the European Knowledge Area, Report by: Cristina Gutierrez-Cortines, Spain – Ref: A5-0183/2002

A further plenary session was held in Strasbourg on 23^rd – 26^th September 2002.  On the agenda were treatment of refugees, procedures for processing applications for asylum, controls on animal waste, trade in GMOs, speed limiting devices in buses and lorries, low sulphur fuels and the work of the European Ombudsman.  Issues scheduled for debate were the Middle East, EU foreign policy, the International Criminal Court and the results of the Johannesburg Earth summit.

Of engineering interest were: Transport issues – second reading of new draft legislation promoting wider use of devices to limit speed of buses and lorries.  Under measures proposed were top speed limit of 100 km/h for buses and 90 km/h for lorries to be phased in from 2004.  A report was given on behalf of the Transport Committee on Commission plans to assist the development and environmental performance of freight transport and the planned 5-year Euro 115 million Marco Polo programme.

Report references include:

·         Improving the environmental performance of the freight transport system,  Rapporteur: Philip Bradbourn MEP, U.K.,  Ref: A5 – 0294/2002

·         Speed limitation devices for lorries and buses (amending Directive 92/6/EEC), Rapporteur:  Konstantinos Hatzidakis MEP, Greece Ref: A5-0281/2002

·         Implementation of the first phase of European Climate Change Programme, report by Anneli Hulthen MEP, Sweden A5-0237/2002

• Low sulphur fuels (second reading) (Amednign Directive 98/70/EC on quality of petrol and diesel fuels) report by Heidi Hautala MEP, Finland Ref: A5-0293/2002
• Public contracts terminology (CPV – Common Procurement Vocabulary), second reading, Rapporteur: Stefano Zappala MEP, Italy,  Ref: A5-0282/2002

Further details of the session may be found on http://www.europarl.eu.int

Supplement: WORLD SUMMIT ON SUSTAINABLE DEVELOPMENT SUPPLEMENT  -   SEPTEMBER 2002