European Union News - Internal Market

MEPs at the Economic and Monetary Affairs Committee agreed that the proposed new legislation to strengthen budgetary oversight of Eurozone countries should allow as much economic governance as possible to take place within the normal EU system, rather than outside it through international agreements.

The European Commission investigates whether the websites offering consumer credit are offering consumers the information to which they are entitled under EU consumer law before signing a consumer credit contract. According to the results published by the Commission, 70% of sites will need a further investigation in relation to about suspected irregularities.

The work on the legislative proposal on the EU financial transaction tax has started at the Economic and Monetary Affairs Committee in the European Parliament with a very broad agreement in favour. Various MEPs said that in recent months they had shifted their position in favour the proposal than was the case some months ago.

The European Commission launched an statement in which defends the reform proposals to modernise the existing tools and instruments on public tendering. According to the Commission, the revision of the public procurement Directives will improve the access to the public procurement for SMEs.

The Economic Sentiment Indicator (ESI) declined moderately in December in both, the EU and the euro area. The overall decline in the EU resulted from weakening confidence in services, construction and among consumers, while sentiment improved in retail trade and remained broadly stable in industry. On the other hand, the Business Climate Indicator (BCI) for the euro area increased for the first time in ten months.

The European Parliament representatives at the working group drafting the international agreement on a reinforced economic union stressed the need to base all decisions on normal EU procedure in order to ensure democratic accountability. They also called on Member States to establish a national debt reduction fund and to adopt a roadmap towards eurobonds.

According to Eurostat, industrial new orders were higher in October 2011 compared with September 2011. In particular, the increase was by 1.8% in euro area and by 0.5% in EU27. On the other hand, in November compared with October 2011, the industrial producer price up by 0.2% in euro area and by 0,3% in EU27.

2.8% is the Euro area annual inflation is expected in December 2011 according to the flash estimation published by Eurostat. In November 2011 the Euro area annual inflation was 3.0%.

The European Commission Vice President Olli Rehn welcomed the announcement by the Spanish government on the significant package of budgetary policy measures approved. However he regretted the sizable fiscal slippage relative to the 2011 budgetary target. He therefore asked to Spain remaining committed to the fiscal consolidation path and staying determined to correct its excessive deficit by 2013.

The European Union re-established the exceptional autonomous trade preferences to all Western Balkan countries until the end of 2015. According to the Commission, these trade preferences support economic integration with the EU and hence foster political stability and economic progress in the entire region.

According to a recent judgement of the European Court of Justice, member states customs authorities would be entitled to act in cases where goods which are in transit on EU territory violate intellectual property rights protected in the European Union. The Court clarifies that for that purpose, it has to be demonstrated that there has been a commercial act directed to European consumers, such as advertising of these products in EU market.