European Union News - Internal Market

The European Commission adopted a new proposal which intends to reach a more efficient cooperation in collecting excise duties. The new Regulation would replace the existing rules, to better reflect the introduction of the computerised Excise Movement and Control System (EMCS) in April 2010.

The European Commission has published a report which highlights the overall positive role that mobile workers from Bulgaria and Romania have played in receiving countries' economies. According to the report, there has been no significant impact on unemployment or wages of local workers in receiving countries.

The European Commission approved a Communication which highlights where the main double taxation problems lie within the EU, and outlines concrete measures that the Commission will take to address them. The objectives is remove one of the biggest tax obstacles to the Internal Market according to the Taxation Commissioner, Mr. Šemeta.

European Commission presented its Autumn forecast 2011-13 in which it clearly stated that EU growth is at a standstill. In addition, GDP in the EU is now projected to stagnate until well into 2012. In fact, the figures shows that annual GDP growth in 2012 is forecast at 0.6% in the EU and 0.5% in the euro area. Growth in 2013 is expected to remain lacklustre at 1.5% in the EU and 1.3% in the euro area.

The new EU Customs and Taxation programme proposed by the European Commission, FISCUS programme, has as main goal to protect the financial interests of the EU and Member States. It counts with a budget of €777.6 million and it is proposed to run for 7 years from January 2014.

EU Finance Ministers adopted officially and without further discussion the "six-pack" of measures on economic governance. The package was already adopted in October and now Ministers gave their final and official approval. In addition, the Council adopted conclusions on the design of the so-called "scoreboard" of economic indicators to be used, as part of those new arrangements, in detecting macroeconomic imbalances.

The Council adopted a directive amending the financial conglomerate directive (FICOD) in order to close loopholes and ensure appropriate supplementary supervision of financial entities in a financial conglomerate. In addition, at the Council meeting, Ministers also adopted a regulation approving the revised text of the OECD arrangement on officially supported export credits in order to ensure its application in EU law.

Budgets Committee at the European Parliament approved the transfer of €714 million from 46 budget lines with surpluses to 57 budget lines that lack adequate funding. According to this Committee, EU 2011 budget needs an extra €550 million despite the housekeeping transfers.

The Governing Council of the ECB published the modalities for the new covered bond purchase programme (CBPP2). Among them, the purchases of euro-denominated covered bonds issued in the euro area will be carried out by the Eurosystem by means of direct purchases. In addition, the interest rate on the main refinancing operations of the Eurosystem will be decreased by 25 basis points to 1.25%. This latest decision has been announced by the new ECB President, Mr Mario Draghi.

The Doha Development Agenda (DDA) negotiations in the World Trade Organisation amount to an increase of world exports of $359 billion on an annual basis from a deal on the liberalisation of industrial goods, agriculture, services and on the removal of red tape. According to a new EU study published, if an agreement on sectoral liberalisation of industrial goods (chemicals, machinery, electronics) could be reached, world exports would increase by a further $146 billion, totalling $505 billion annually.
 

Eurostat, the statistical office of the European Union published the latest data with regard unemployment in the EU. The EU unemployment rate was 9.7% in September 2011, compared with 9.6% in August. It was 9.6% in September 2010. The euro area seasonally-adjusted unemployment rate was 10.2% in September 2011, compared with 10.1% in August. It was 10.1% in September 2010.