European Union News

On 12 February 2008, the Council examined the updated stability programme of Italy, which covers the period 2007 to 2011. Real GDP growth in Italy has been below the euro area average since the 1990s and potential growth is estimated to have fallen from above 2 % in the early 1990s to around 1,5 % over the last 15 years. On the positive side, Italy has enjoyed robust employment growth since the turn of the century and its unemployment rate has fallen substantially, also reflecting the impact of labour market reforms. While there remains a long way to go before Italy catches up with the EU average in terms of employment rates, the combination of dynamic employment growth and sluggish GDP growth highlights Italy's productivity problem. Notwithstanding the recent recovery, medium-term prospects for the Italian economy remain challenging under the strain of major structural weaknesses.

The European Commission launched on the 22nd February 2008 in Brussels, a major Joint Technology Initiative (JTI) called ARTEMIS. With an unprecedented investment of € 2.5 billion, this initiative, that has been endorsed by the Council of Ministers and by the European Parliament at the end of 2007, addresses embedded computer systems that – while running almost unnoticed by users – improve the performance of all kinds of machines: from cars, planes and phones, to factories, washing machines and televisions. The Governing Boards of ARTEMIS – where public and private stakeholders take decisions jointly – met for the first time in Brussels on the 22nd February 2008.

The European Maritime Safety Agency want to launch and decelop a service for a/many standby oil-spill recovery vessel(s). In accordance with EMSA's 'Action plan for oil pollution preparedness and response of 2004' identified how to implement this task with regard to pollution caused by oil spills at sea. The action plan, as updated by subsequent EMSA work programmes, highlighted the necessity for a network of oil-recovery vessels. Consequently, contracts have been established for at-sea oil-recovery services in the Baltic Sea, along the Atlantic Coast and in the Mediterranean Sea.

The Joint Research Centre (European Commission) wants to improve the entreprenerurship spririt between its staff by organising three entrepreneurship training seminars to be carried out in liaison with relevant JRC staff and the Turku School of Economics. As the JRC has seven scientific institutes, located at five different sites in Belgium, Germany, Italy, the Netherlands and Spain, the training will take place in any of those places.

The European Commission, negotiating on behalf of the EU, and the Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama (observer),  met in Brussels from 25 to 29 February 2008 for a second round of negotiations in view of an Association Agreement, including a free trade area between the EU and Central America.

The aim of the Foundation is to contribute to the planning and establishment of better living and working conditions through action designed to increase and disseminate knowledge likely to assist in this development. Its tasks are to develop and pursue ideas on the medium and long-term improvement of living and working conditions in the light of practical experience and to identify factors leading to change. The Foundation is required to take the relevant Community policies into account when carrying out its tasks. It advises the Community Institutions on foreseeable objectives and guidelines by forwarding in particular scientific information and technical data. The social partners are associated in the actions it undertakes.

The European Commission  agreed on a far-reaching package of proposals on the 23 January 2008, that will deliver the European Council's commitments to fight climate change and promote renewable energy. The proposals demonstrate that the targets agreed last year are technologically and economically possible and provide a unique business opportunity for thousands of European companies. These measures will dramatically increase the use of renewable energy in each country and set legally enforceable targets for governments to achieve them.

Danuta Hübner, Commissioner for Regional Policy, today explained how Cohesion policy for 2007-2013 will contribute to developing renewable energy and improving energy efficiency in the EU's regions. Nearly €9 billion will be invested in these sectors. The Commission will also act as facilitator by supporting Member States in making timely energy investments, and by promoting the sharing of know-how among regions. The European Commission's proposals on climate action, launched on 23 January, gives a high priority to renewable energy and the need for better energy efficiency.

The European Commission today invited trade unions' and employers' representatives to help improve the role of European Works Councils in consulting and informing employees. European Works Councils (EWCs) currently operate in 820 major companies across the EU, covering some 14.5 million employees. Today's second stage consultation gives social partners the opportunity to start negotiations on updating and improving the way the bodies operate, with a view to revising the existing legislation.

The case concerned the proposed acquisition by the Irish-based airline Ryanair of its competitor Aer Lingus. Both companies offer scheduled air transport services. Their operations overlap in particular at Dublin airport. The proposed acquisition, whereby Ryanair acquires sole control over Aer Lingus. The Commission's investigation confirmed that there are substantial barriers to entry which would make difficult any new entry to the routes where the activities of the merging parties overlap.

The European Commission, the European Central Bank and the European Payments Council officially launched, on 28th January, the first SEPA (Single Euro Payment Area) payment instruments for credit transfers in euros. To commemorate such an event the Internal Market and Services Commissioner, Charlie Mc Creevy, Gertrude Tumpel-Gugerell, member of the Administrations Council of the ECB and Gerard Hartsink, President of the European Payments Council organised "SEPA goes live", an event which took place in Brussels and attended by various distinguished guests from the European Payments Market.

On 12 February 2008, the Council examined the updated stability programme of Finland, which covers the period 2007 to 2011. Finland's macroeconomic performance has been strong and balanced over the last years, with growth in the recent years significantly exceeding earlier expectations. The present cyclical upswing in economic activity has been appropriately used to build up budgetary surpluses and to prepare for the effects of population ageing, reducing considerably the risks to the sustainability of public finances. However, the imminent demographic shift is predicted to dampen economic growth already at the end of the programme period and lead to a smaller fiscal surplus, thereby calling for sustained control over public spending.