European Union News - Internal Market

The Committee of the Regions (CoR) mostly welcomed the proposals presented by the European Commission to reform state aid procedures. The CoR adopted in November plenary session an opinion on EU State Aid Modernisation which called for the extension of the scope of the enabling regulation and for a clarification of the general block exemption regulation. The Commission proposals presented in December partly meets this demand.

The European Commission published the results of the Commission’s 2012 Consumer Markets Scoreboard which warn that EU consumers have once again expressed their dissatisfaction with the performance of some key services markets, such as banking, telecom and energy services.

The European Commission presented an Action Plan for a more effective EU response to tax evasion and avoidance. As a first and immediate measure, the Commission also adopted two Recommendations to encourage member states to take immediate and coordinated action on specific pressing problems.

The European Commission presented the results of an EU wide screening of websites selling games, books, videos and music which can be downloaded to a computer or mobile device. The check shows that over 75% of these websites do not appear to comply with consumer protection rules. National enforcement authorities will now contact the companies concerned to enable them to clarify their position or correct their website.

The second estimates for the third quarter of 2012 published by Eurostat shows that GDP fell by 0.1% in the euro area and increased by 0.1% in the EU during the third quarter of 2012, compared with the previous quarter. In the second quarter of 2012, growth rates were -0.2% in both zones.

The European Commission presented the R&D Scoreboard that shows that despite the continuing economic and financial crisis, major EU-based firms continue to rely on R&D for their competitive edge. In addition, R&D-intensive sectors tended to show above average employment growth.

A compromise text on proposals amending the EU's rules on credit rating agencies agreed with the European Parliament was approved on 5 December by the Permanent Representatives Committee. This will enable the Cyprus Presidency of the EU Council to confirm the agreement reached with the Parliament and allow for adoption of the legislation at first reading.

The European Commission announced that it has fined seven international groups of companies a total of €1.47 billion for participating in either one or both of two distinct cartels in the sector of cathode ray tubes ("CRT"). According to the Commission, for almost ten years, between 1996 and 2006, these companies fixed prices, shared markets, allocated customers between themselves and restricted their output.

The Council agreed measures granting Greece an additional two years to correct its excessive budget deficit, following an agreement reached between the Greek government and the "troika" of international creditors. On the other hand, the Council closed excessive deficit procedures for Malta, confirming that it has reduced its deficit below 3% of GDP.