European Union News - Internal Market

On the 4th June 2008 a notification of state aid going to Channel 4 in the United Kingdom (linked to a digital switch over), was published in the Official Journal of the European Union (OJ). By means of the letter dated 2 April 2008 the Commission notified the United Kingdom of its decision to initiate the procedure concerning the proposed financial support to Channel 4 to enable it to meet the costs of digital switchover.

On 18 March 2008, the Commission decided not to oppose the above notified concentration between the German Railways, Deutsche Bahn and Transfesa. Deutsche Bahn acquired the shares in July 2007 and on the 4th June 2008, the European Commission declared that the procedure compatible with the common market.

New regulation has been published by the European Commission from the 23rd April 2008 laying down the Community Customs Code (Modernised Customs Code). The official text was published on the 4th June 2008 In accordance with the Communication from the Commission concerning the protection of the Community’s financial interests and the Action Plan for 2004-2005.

On 15th May 2008, the Commission decided not to oppose the above notified concentration between Barclays and CID. The Commission also declared it compatible with the common market.

Euro area (EA15) and EU27 GDP grew by 0.8% in the first quarter of 2008, compared with the previous quarter, according to first estimates released by Eurostat, the Statistical Office of the European Communities. In the fourth quarter of 2007, growth rates were +0.3% in the euro area and +0.5% in the EU27.

Compared with the first quarter of 2007, seasonally adjusted GDP rose by 2.2% in the euro area and by 2.5% in the EU27, after +2.1% and +2.5% respectively for the previous quarter.

On 27 May 2008, the Commission received a notification of a proposed concentration by which the undertaking Nordic Capital (‘Nordic Capital’, Jersey) acquires control of the whole of the undertaking ConvaTec (‘ConvaTec’, USA), a wholly owned business unit of Bristol-Myers Squibb Co. (‘BMS’, USA), by way of purchase of shares and assets.

On the 3rd of June 2008, the European Commission released notification for State aid C 14/08 (ex NN 1/08) — Restructuring aid to Northern Rock in the united kingdom.

On 23rd May 2008, the Commission received a notification of a proposed concentration by which the ndertakings STMicroelectronics NV (‘STM’, The Netherlands) and NXP BV (‘NXP’, The Netherlands) acquire joint control of a newly created company constituting a joint venture.

On 22nd May 2008, the Commission received a notification of a proposed concentration by which the undertaking Sofinco SA (‘Sofinco’, France), a wholly owned subsidiary of Crédit Agricole SA (‘CA’, France), and Saracen HoldCo AB (‘Saracen’, Sweden), a wholly owned subsidiary of FCE Bank plc controlled by Ford Motor Company, acquire joint control of the undertaking Forso Nordic AB (‘Forso’, Sweden) by way of purchase of shares in a newly created company constituting a joint venture.

The idea of unilaterally imposing EU tariffs on non-climate-friendly imports, should there be no international accord on how to combat climate change, took centre stage at Thursday's (29th May 2008) Climate Committee hearing on competitiveness, trade, financing and sustainable employment. Compared with an international deal, such tariffs would be a distant second best, said World Trade Organization (WTO) Director-General Pascal Lamy.

Euro area annual inflation, which is the price change between the current month and the same month of the previous year, is expected to be 3.6% in May 2008 according to a flash estimate issued by Eurostat, the Statistical Office of the European Communities. It was 3.3% in April 2008.

Responding to the grave difficulties currently faced by the European fisheries sector as a result of massively increased fuel costs, Fisheries Commissioner Joe Borg has renewed his call for the restructuring of the sector before it is too late. The difficulties faced by the EU fisheries sector have their roots in a structural mismatch between the size of the fleet and the sustainable level of fishing possibilities. These problems have been seriously compounded by the sharp increase of fuel prices over the past few years. Marine Fuel Prices have gone beyond 0.7€/l in most European harbours, an increase of around 240% since 2004.