Tough EU Budget talks ahead - EUbusiness Week 206

23 January 2004, 19:23 CET

This Week's Top Stories

Brussels issues wake-up call on flagging EU economic reforms
EU agrees new corporate merger rules
New EU states will have a long wait to join the euro
Strict food standards not barrier to trade: Commissioner
US fails to allay EU concerns over sky marshals
Intensive farming "harming Europe's birds"

Publisher's Note

Irish Finance Minister Charlie McCreevy may have been a bit optimistic when he said this week that he hoped talks on EU spending plans for 2007-2013 would be wrapped up next year.

Following the failure of last December's summit, six EU countries, including Britain, France and Germany, called for the budget to be capped at one per cent of the EU's gross domestic product (GDP). This reflected the countries' unhappiness with Poland and Spain - which stand to gain large amounts of EU regional aid - for blocking the constitutional talks over voting rights.

The Commission, preparing its preliminary budget proposals, does not believe EU enlargement is the best time to bring down EU spending, and is likely to be looking to fix the European budgetary ceiling at 1.24 per cent of GDP. With the ongoing dispute over French and German violations of the eurozone Stability Pact adding to the confusion, budget discussions between the Member States promise to be even more heated than usual. Story

Regards,

Nick Prag

Publisher, EUbusiness

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1. Brussels issues wake-up call on flagging EU economic reforms

The European Commission has issued a blunt wake-up call to EU countries that their aim of becoming the world's leading economy by 2010 is at serious risk if they do not speed up flagging reforms. Story

Eurozone inflation down in December Story

2. EU agrees new corporate merger rules

EU finance ministers gave final approval on Tuesday to a new EU merger control law fixing the rules for corporate takeovers after EU enlargement. "The new law will equip the EU with a modern, more flexible and efficient legislation to cater for the interests of 450 million consumers," said Competition Commissioner Mario Monti. Story

3. New EU states will have a long wait to join the euro

The 10 new states set to join the EU in May want to join the euro but have come to realise this will take more time than they at first thought. Speculative attacks against the Hungarian currency, the forint, in 2003, convinced them that they must wait to get their economic houses in order. Story

ECB does not want new EU countries to join euro too hastily Story

4. Strict food standards not barrier to trade: Commissioner

EU health commissioner David Byrne has dismissed charges that stringent food safety restrictions were hampering exports to the world's largest single market from Thailand and other developing nations. Story

EU warns could ban Thai chicken as deadly flu feared Story

5. US fails to allay EU concerns over sky marshals

The top US official on air security have sought to allay European concerns about plans for armed sky marshals, but EU states remained unconvinced, some fearing they could increase risks. Story

EU-wide list imposed of banned articles on passenger flights Story

EU welcomes positive US signals on Galileo satellite project Story

6. Intensive farming "harming Europe's birds"

The rise of intensive farming methods in Europe has led to a dramatic fall in the numbers of 24 common bird species, according to research carried out by leading European ornithologists. Surveys reveal that the numbers of some of Europe's most familiar bird species have fallen by one third in just a quarter of a century. Story

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Comments of the Week

On our piece "Finnish government proposes two-year ban on workers from new EU states", Xavier Colas comments:

"But I'm surprised. How can Finland on their own decide to ban the entrance of workers of the same EU? What is the point of having an EU, an European Parliament and a Commission? Sounds very disappointing, especially for those countries that are making such a big effort to reach the level of their neighbours."

Graham replies:

"Agreed, although I think that in the accession negotiations current member states agreed with the new members that they could delay for a number of years implementing all the freedoms of movement. For instance the UK has wavered this and will allow the same freedom of movement for new members as nationals of current members states are allowed and Poland will delay allowing other members nationals from buying land for a number of years. It will take some time before all restrictions are lifted." Story

On "EU welcomes US space plans, but has concerns", Peter writes:

"EU barely can deal with their dull, stagnant economy and wants to engage in a space program? Stop kidding yourself. You are (EU) decades behind United States not only in space exploration but in new technologies as well."

Nikolas replies:

"We prefer to spend our money in a more social way. We don't want to spend billions to manufacture weapons and spaceships and other useless things just to say that we are the most powerful country in the world. There are better ways to spend your money. So, we don't mind at all being behind in the space programs." Story

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Inside the EU Institutions

Council Watch

Constitution: EU foreign ministers will hold informal talks next week on an EU constitution. Story

Finance: Eurozone finance ministers have warned against "excessive exchange rate moves" following the euro's record-breaking surge on currency markets. Story

France's get-tough approach to tobacco fails to light up EU Story

Euro-Parliament Watch

Consultancy call: Parliament has published a prior information notice of a call for tenders for scientific consultancy services. Story

Latvian committee opposes ban on ex-KGB agents in Euro-elections Story

Northern Ireland's Paisley bows out of EU parliament Story

Commission Watch

Commissioners: the Commission aims to publish before the end of January the names of 10 proposed new commissioners from the incoming EU member states. Story

Security: the Commission expressed concern after plans for its newly-renovated headquarters were found dumped in a car park. Story

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