European Union News - Internal Market

The European Commission has tabled a proposal for "Financial Discipline" to ensure that spending remains within budget limits. The proposal aims to introduce a linear cut in CAP Direct Payments in order to ensure that the ceiling for the CAP's first pillar in the forthcoming year is respected.

The European Commission reminded in a statement made on 28 March that an exception to the principle of the free movement of capital must be interpreted very strictly and be non-discriminatory, suitable, proportionate and applied for the shortest possible period. This statement was made in the light of the capital controls imposed by the Republic of Cyprus that will remain in force for 7 days.

The European Commission launched a public consultation on the proposal for simplifying procedures under the EU Merger Regulation. The proposed initiative is a technical reform within the existing framework of EU merger control as defined by the Merger Regulation. In particular, the Commission proposes to update the Notice on a simplified procedure for treatment of certain mergers.

The European Commission presented a package of initiatives to make trade mark registration systems all over the European Union cheaper, quicker, more reliable and predictable. Among them, as regards fees, the Commission is proposing a principle of "one-class-per-fee" that will apply both for Community trade mark applications and for national trade mark applications.

With the exception of the United Kingdom, the Permanent Representatives Committee of the Council approved the agreement already reached by the European Parliament and the Council on the "CRD 4" package amending the EU's rules on capital requirements for banks and investment firms.

The European Commission presented a draft regulation aimed at cutting by 30% the cost of rolling out high-speed Internet. The new rules leave organisational issues very much to the discretion of member states.

The results of the European Commission Innovation Union Scoreboard 2013 show that while the most innovative countries have further improved their performance, others have shown a lack of progress. Sweden remains at the top, followed by Germany, Denmark and Finland. Estonia, Lithuania and Latvia are the countries that have most improved since last year.

The European Union and Japan have officially opened the negotiations for a Free Trade Agreement. These negotiations will cover a wide range of trade-related issues between both parties such as the reciprocal access to public procurement, some regulatory issues, competition and sustainable development.

The agreement reached in Brussels by the Eurogroup and the Cypriot authorities includes the necessary elements for the implementation of the future macroeconomic adjustment plan. The agreement will involve the immediate resolution of the second largest bank in Cyprus, the Laiki Bank, as well as the restructuring of the Bank of Cyprus. All insured depositors in all banks will be fully protected in accordance with the relevant EU
legislation.
 

Economic and Monetary Affairs Committee underlined that investment fund managers' bonuses must be capped, and their salaries must be linked to their funds' performance. According to the responsible MEP of the report, Sven Giegold, the UCITS bonus cap will help strengthen investor protection and reduce risky speculation.