European Union News - Internal Market

The Interim Agreement (IA) with Bosnia and Herzegovina has entered into force since 1st July 2008. The IA effectively creates a free trade area, with progressive opening of the market of Bosnia and Herzegovina facilitating economic and social development. The two sides signed the Stabilisation and Association Agreement (SAA) and the IA on 16 June in Luxembourg. Until the ratification process is finalised the trade provisions of the SAA are applied through the IA.

The European Parliament and the Council adopted on June 30th the joint Decision No 626/2008/EC on the selection and authorisation of systems providing mobile satellite services (MSS). The introduction of new systems providing MSS will contribute to the development of the internal market and enhance competition by increasing the availability of pan-European services and end-to-end connectivity as well as encouraging efficient investment.

On the 1th July 2008, the European Commission published in the Official Journal of the European Union (OJ), Prior notification of a concentration between Hewlett-Packard Company (‘HP’, USA) and Electronic Data Systems Corporation (‘EDS’, USA) by way purchase of shares. It is published following the notification received on 19 June 2008 by the Commission.

With this agreement the two carriers will combine in an all-stock transaction with a combined enterprise value of $17.7 billion, creating America’s premier global airline.

The Conference will take place in Marseille, France, on Wednesday 2 nd July 2008 and it will allow Ministers to continue the discussion launched at the last Ministerial Conference in Lisbon, on the ways to enhance economic integration and diversification and boost Euro-Mediterranean trade and investment with the objective of achieving a genuine Free Trade Area by 2010.

On 17 June 2008, the Commission received a notification of a proposed concentration following a referral pursuant to Article 22(1) of Council Regulation (EC) No 139/2004 (1) by which the undertaking Arsenal Capital Partners (‘Arsenal’, USA) via Arsenal Capital Partners QPII (‘ACP QPII’) and DAC Acquisition BV acquires within the meaning of Article 3(1)(b) of the Council Regulation control of the whole of the undertaking DSM Special Products BV (‘DSP’ the Netherlands) belonging to the Royal DSM NV (‘DSM’, the Netherlands) by way of purchase of shares.

On Friday, 27 June 2008 in Brussels, the Energy Community Ministerial Council addressed key issues for the functioning of electricity markets in South-East Europe. At this occasion, Commissioner Piebalgs declared: "Last week the European Council reiterated its full support for the European perspective of the Western Balkans and the importance of regional cooperation: the Energy Community is becoming a success story in this respect, but efforts should be pursued."

The European Commission started, on June 26th. 2008, a public consultation on the future regulation of "voice call termination rates" in the EU, based on a draft Commission Recommendation on termination rates. This consultation aims to spur competition among operators and lower phone charges for European consumers.

The European Commission decided on June 10th. 2008, not to oppose the notified concentration between Iberia, ST Aerospace and JV, and to declare it compatible with the common market. This decision is based on Article 6.1 b.) of Council Regulation (EC) No 139/2004.

On 17 June 2008, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 (1) by which the undertaking Dr. Ing. h.c. F. Porsche AG (‘Porsche’, Germany) acquires within the meaning of Article 3(1)(b) of the Council Regulation control of the whole of the Volkswagen AG (‘Volkswagen’, Germany) by way of purchase of shares.