European Commission has set up Task Force to help maximise the potential of the European Research Council

The European Commission has set up a Task Force to explore options for the future of the European Research Council (ERC). The Task Force is chaired by the Director General of DG Research, Robert-Jan Smits. This follows nearly four years of successful work by the ERC since it was established by the Commission in 2007.

Research, Innovation and Science Commissioner Máire Geoghegan-Quinn said: "The ERC has been a great success already and we need to learn from experience and build on the excellent work already done. The Task Force will help us take some final decisions on how best to equip the ERC to play the key role it will have in the Innovation Union and in the Eighth Framework Programme."The Task Force was set up at the request of the ERC Scientific Council, as announced in its statement in November (see link below), and is the follow-up of last year's thorough Review of the ERC's Structures and Mechanisms, carried out by an expert panel (see link below). The Task Force includes participants from the relevant Commission departments and representatives from the ERC Scientific Council, including its President Prof. Helga Nowotny. There will also be two external members, Prof. Vaira Vīķe-Freiberga, former President of the Latvian Republic and former chair of the Review panel of the ERC, and Prof. Ernst-Ludwig Winnacker, former ERC Secretary General.

Building on last year's review recommendations, the Task Force will examine the remaining unresolved issues and explore possible governance options to guarantee the long term stability of the ERC structure within the European Research Area and in the context of the new Lisbon Treaty.

Presently, the ERC has a dual structure with a Scientific Council, composed of 22 top scientists, setting the scientific strategy, and an Executive Agency, in charge of implementing the operations. The ERC has a budget of € 7.5 billion from the "IDEAS" programme, part of the Seventh Framework Programme for Research, for the period 2007-2013.

The Task Force has already held an initial meeting and aims to conclude its work within six months, hence well before the decision on the next Framework Programme (FP8) is taken, to allow ample time for the Council and the European Parliament to hold a thorough debate about FP8. The Commission will in the first quarter of 2011 launch an open consultation on all issues connected to FP8, with a formal proposal to the Council and Parliament to follow towards the end of the year. FP8 will begin in January 2014.

News source: EU Press Room link: article

Single Euro Payments Area (SEPA): Commission sets deadline for pan-European payment system

A Belgian citizen working in The Netherlands receives his salary on his Belgian bank account as quickly as his Dutch colleagues. A German family pays all its gas and electricity bills for their holiday home in Greece by simple direct debit from their German account. A Romanian student on exchange in Italy does all her payments in euros effortlessly from her Romanian account in euros. Similarly, companies will also benefit from SEPA. A German export/import company trading with Latvia, Cyprus and Norway will optimise cash flow by easily collecting funds in euro from debtors in these countries using a single account in Germany. These are just some examples of what could soon be made easier and cheaper. Indeed, the European Commission has today proposed to set EU-wide end-dates for the migration of the old national credit transfers and direct debits to the recently created Single Euro Payments Area (SEPA) instruments. It will mean that national credit transfers and direct debits are phased out and the recently created pan-European systems take their place, respectively 12 and 24 months after the entry into force of the Regulation. This will reduce the costs of payments, increase competition and make cross-border payments as easy as domestic ones. The Commission's proposal now passes to the European Parliament and the Member States for consideration.

Internal Market and Services Commissioner Michel Barnier said: "We have a Single Market, many countries share a single currency and soon we will move to a single pan-European payment system in Europe. It means that making payments cross-border will become as easy as making them at home. Consumers will only need one bank account and their payments will be faster, cheaper and safer. Businesses will benefit from one set of standards and much simpler processes. The proposal adopted today fixes end-dates to make this pan-European system a reality, hopefully as early as 2012." The Single Euro Payments Area (SEPA) is the area where more than 500 million citizens, over 20 million businesses and European public authorities can make and receive payments in euro under the same basic conditions, rights and obligations, regardless of their location. The objective of SEPA is to increase efficiency and competition so that high-quality and competitively priced electronic payment products exist throughout the whole of the EU. This would mean that Europeans can rely on one bank account to make euro payments across 32 countries1 while enjoying highly competitive services provided by banks. Thanks to SEPA, as from 2012 money transfers will reach the beneficiary at least by the end of the next business day or faster and no deductions will be made to the amounts transferred. As a result, the process of paying bills will be even more convenient. SEPA benefits not only customers. Businesses will enjoy common standards; faster settlement and simplified processing for payments that will improve cash flow, reduce costs and facilitate the access to new markets.

Self-regulatory efforts have proven not to be sufficient to drive forward concerted migration to SEPA. According to available European Central Bank (ECB) data, as of October, only 9.6 % of all credit transfers in the euro area were executed using a pan-European payment instrument. If this trend continues, the full benefits or implementation of the SEPA would only be felt after more than 25 years. Only rapid migration to pan-European, i.e. SEPA credit transfers and direct debits, will generate the full benefits of an integrated payments market. The proposed Regulation will ensure a quick and smooth migration to pan-European credit transfers and direct debits by phasing out the existing national payment instruments. In order to ensure interoperability, the use of certain common standards and technical requirements such as the use of international bank account numbers (IBAN), bank identifier codes (BIC) and a financial services messaging standard (ISO 20022 XML) will be mandatory for all bank account payments in euro in the EU. The proposed regulation also takes into account user concerns such as the possibility to limit a direct debit collection to a certain amount and/or frequency of payments. Banks and companies which send out a large number of bills (for example electricity or telecommunications providers) are encouraged to adopt measures to make SEPA migration as easy as possible for bank account holders. 

The proposed Regulation will also increase transparency and competition between payment services providers and between payment services themselves, notably through the ban on hidden fees between banks for direct debit transactions, which are currently charged in six Member States (Spain, France, Sweden, Belgium, Portugal and Italy).

News source: EU Press Room link: article

Commission temporarily authorises BGN249 million rescue aid for Bulgarian railway company

The European Commission has authorised under EU state aid rules, state financing worth BGN249 million (approximately €128 million) for the Bulgarian railway operator BDZ EAD. The aid is in line with EU rules on rescue aid, because it is limited in time and scope. The Commission approved the measure temporarily, until it can take a position on the restructuring plan to be submitted by Bulgaria within maximum six months. "The Commission could agree to the rescue of BDZ EAD as the company's sudden disappearance would lead to serious disturbances in the Bulgarian economy and given the very limited impact the measure will have on competition in the Internal Market," Joaquín Almunia, Commission Vice-President in charge of competition policy, said.

BDZ EAD is the 100 % state-owned Bulgarian railway carrier, operating on both freight and international passenger railway markets. It ensures 80 % of the domestic freight transport and 100 % of the passenger transport. The Commission authorised a short-term measure to tackle liquidity problems and enable BDZ EAD to pay creditors and properly maintain its rolling stock pending the implementation of a restructuring plan. The Commission found the measure to be in line with its guidelines on rescue and restructuring of companies in difficulties. In particular, the aid amount is limited to what is needed to keep the company in business over the next six months. Moreover, the Bulgarian authorities have committed to submit in maximum six months a restructuring plan capable of ensuring the future viability of the services currently provided by BDZ EAD.

The non-confidential version of the decision will be made available under the case number in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

News source: EU Press Room link: article

Commission approves €80 million film support scheme in Romania

The European Commission has approved under EU state aid rules a €80.68 million (RON 347 million) Romanian scheme to support the development of the film industry, culture and cinematographic education. The Commission found the measure to be in line with its Cinema Communication (IP/09/138), because if furthers a cultural objective without unduly distorting competition.

The Commission has approved a Romanian scheme providing for interest-free loans or non-reimbursable grants for the production of Romanian films or films made with Romanian participation. The scheme is in line with previous cases approved under EU rules that allow state subsidies for cultural objectives, and in particular with the state aid assessment criteria laid down in Commission's Cinema Communication.

In particular, the Commission found that the cultural criteria defined by the Romanian authorities will direct the aid towards cultural products. Moreover, the measure allows producers to spend up to 20% of the film budget within the European Economic Area (EEA), not just in Romania.

The Romanian authorities plan to run the scheme until 31 December 2014.

The non-confidential version of the decision will be made available under the case number N303/2010 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.

News source: EU Press Room link: article

Antitrust: Commission makes Visa Europe's commitments to cut interbank fees for debit cards legally binding

The European Commission has made legally binding commitments offered by Visa Europe to significantly cut its multilateral interchange fees (MIFs) for debit card payments. The MIF is a bank-to-bank fee for card payments that is collectively fixed by Visa Europe's member banks, but is ultimately paid by consumers. Under the commitments, the maximum weighted average MIF applicable to debit card cross border transactions and to national debit transactions in those countries where MIFs are set directly by Visa Europe will be cut to 0.2% of the value of the transaction. This represents a reduction of about 60% on average for domestic MIFs and 30% for cross-border MIFs. Furthermore, Visa Europe committed to maintain and further develop measures which will increase transparency and competition in the payment cards markets. The Commission considers that the offer is suitable to remedy the competition concerns and closed part of its investigation through a commitments decision according to Article 9 of Regulation 1/2003 (the Antitrust Regulation).

Commission Vice-President in charge of competition policy Joaquín Almunia commented: "Lower inter-bank fees will trigger real benefits for merchants and consumers whilst more transparent rules will also improve competition in the cards markets." The Multilateral Interchange Fees are collectively determined and charged between banks for each payment made with a debit card. These fees are integrated in the price that banks charge to merchants for handling a transaction and therefore entail a cost that merchants integrate in the price of the goods or services they sell to consumers. The fees at stake concern Visa debit card transactions, which are payment card transactions that are debited from your bank account immediately after a purchase is made.

In April 2009, the Commission sent a Statement of Objections to Visa Europe (see MEMO/09/151) setting out its preliminary view that Visa Europe's MIFs harmed competition between merchants' banks, inflated merchants' costs for accepting payment cards and ultimately increased consumer prices. Moreover, rules and practices such as the "Honour All Cards Rule", "no surcharge rule", blending of merchants' fees, and restrictions on cross-border acquiring reduce merchants' ability to manage their payment costs and thereby may increase the restrictive effects of the MIFs. In the Commission's preliminary opinion, such restrictions of competition were in violation of EU antitrust rules (Article 101 of the TFEU).

In response to the Commission's objections, Visa Europe committed to reduce the maximum weighted average MIF for consumer debit cards for cross-border transactions and national transactions in a number of EEA countries to 0.20% of the transaction cost. This reflects the application of the "merchant-indifference methodology", which seeks to establish the MIF at a level at which merchants have no preference whether a payment is made with a Visa Europe debit card or with cash. Based on studies conducted by the central banks of several EEA countries, the Commission is of the view that the MIF rate proposed by Visa Europe is consistent with the merchant indifference methodology. The proposed maximum weighted average MIF may be modified if reliable new information comparing the costs of cards to the costs of cash becomes available. In particular, the Commission will carry out a study on this issue. Like other stakeholders, Visa Europe will be consulted on the methodology to be applied in the study and its scope. The proposed reduction is in line with MasterCard's fee reductions in April 2009 (see IP/09/515).

The countries that will benefit from the domestic MIF reduction are those European Economic Area countries where the MIFs are set by Visa Europe rather than by local banks associations. When the commitments were proposed the countries concerned were Greece, Hungary, Iceland, Ireland, Italy, Malta, Sweden, Luxembourg and the Netherlands1. However, during the lifetime of the commitments the list of countries concerned by the commitments could change, for example if Visa becomes responsible for setting the MIFs in other EEA countries.

Visa's commitments also provide for the unblending of merchant fees, the registration and publication of all MIF rates, the full visibility and the electronic identification of commercial cards, the unbundling of acquirers, and the possibility for merchants to freely choose to accept VISA, VISA Electron, or VPAY debit cards. These measures will increase transparency and competition in the payment cards markets and therefore constitute an important complement to the proposed MIF reduction. These commitments will be binding on Visa Europe for four years and will be monitored by a trustee. The Commission may re-assess the competitive situation on the market after the commitments have expired. This decision does not cover MIFs for consumer credit and deferred debit card transactions which the Commission will continue to investigate. The proposed commitments are also without prejudice to the right of the Commission to initiate or maintain proceedings against Visa Europe's network rules such as the "Honour All Cards Rule", the rules on cross-border acquiring, MIFs for commercial card transactions, and Inter-Regional MIFs. 

News source: EU Press Room link: article

Women Entrepreneurs encouraged to take the plunge

With figures demonstrating that women constitute just 34.4% of the EU's self-employed workforce, the potential for more women led businesses is huge and must be encouraged. The fact that 39.4% of women would choose to be self-employed compared to 50.2% of men shows that women are more reluctant to become entrepreneurs. Within this context, the European Commission in 2009 helped establish the European Network of Female Entrepreneurship Ambassadors whose aim is to have successful female entrepreneurs campaigning to inspire women to set up their own businesses. The second phase of the European Network of Female Entrepreneurship Ambassadors will be inaugurated today during an induction and networking event that is co-organised by the European Commission and the Belgian Presidency of the European Council.
European Commission Vice-President Antonio Tajani, Commissioner for Industry and Entrepreneurship said: "Europe must build on its small businesses. Supporting women entrepreneurs is essential to stimulate growth since the entrepreneurial potential of women has not yet been fully exploited. Our initiative will play an important role in encouraging women to take the plunge and launching their own businesses which will be good for them and great for a sustainable economic recovery.”

Studies have demonstrated that women in general create smaller but relatively more viable enterprises. They are also considered more cautious than men and possess better awareness regarding the risk of failure. As a result, women often get fully involved in businesses after a longer trial period. The EU Ambassadors help to overcome these doubts, and seek to encourage and inspire women to become entrepreneurs by relating their own experiences.

The European Network of Female Entrepreneurship Ambassadors was inaugurated on 5 October 2009. Around 150 Ambassadors of female entrepreneurship from 10 European countries (Denmark, France, Germany, Iceland, Ireland, Italy, Norway, Poland, Slovakia and Sweden), selected via the relevant Commission’s call, met to network and attend the inaugural ceremony.
Following a second call for ambassadors, 12 new countries will today join the network: Albania, Belgium, Croatia, Cyprus, Greece, Hungary, Luxembourg, Malta, Portugal, Romania, Serbia and United Kingdom, bringing the number of ambassadors to 250. Her Royal Highness, Princess Mathilde of Belgium will hand out diplomas to the new ambassadors.

Background

Since the initiation of The European Network of Female Entrepreneurship Ambassadors, EU Member States have sought to promote female entrepreneurship. The following are examples of measures taken:

• In Spain micro-credit, mentoring, coaching and grants programmes targeting female entrepreneurs have been established;
  
• Latvia has set-up specific mentoring programmes;
  
• Finland offers micro-credits and substitutes for the self-employed;
  
• Austria and The Netherlands have a submitted an entrepreneur programme for women who require maternity, family or sick leave;
  
• Romania organises women entrepreneurs’ days;
  
• The UK has established a ‘Women’s Enterprise Ambassadors’ and the UK’s “Flying Start” programme encouraging entrepreneurship among women graduates.
  

The next step for The European Network of Female Entrepreneurship is to create a network of mentors in 2011 to provide an increased level of support for women entrepreneurs.

News source: EU Press Room link: article

Hungary, Bulgaria challenge Rehn on pensions

Struggling with budgetary pressure at home, Hungary and Bulgaria have nationalised their pre-funded pension schemes and excluded the cost of the reform from their public debt figures, opening a row with the European Commission. The EurActiv network reports. In November, Hungary and Bulgaria came up with very similar policies that have surprised the European Commission, which is attempting to provide an EU-wide solution to pension reforms in the EU's revised budget rules.

Both countries decided to nationalise their pre-funded pension schemes, thus artificially reducing both public deficit and debt as calculated by the Maastricht criteria. "We are concerned about the latest announcement by the Hungarian authorities regarding the pension system," said Amadeu Altafaj Tardio, spokesperson for Economic and Monetary Affairs Commissioner Olli Rehn.

Tardio told EurActiv the Commission was concerned that the wealth accumulated in pension funds would be used to finance current expenditures, artificially reducing public debt and deficit figures in the short term but putting the long-term sustainability of public finances in jeopardy (see Positions below). At a meeting in October, EU leaders decided to exclude the cost of pension reform programmes from public debt and deficit figures.

At the two-day meeting, a group of nine EU member states from the former communist bloc demanded that the cost of reforming their costly pension systems be excluded from EU budget rules. But the meeting's conclusions merely invited the EU Council of Ministers to speed up work on how pension reforms can be integrated into the EU's revised Stability and Growth Pact.

News source: EurActiv link: article

The Small Business Act two years on: businesses call for improved delivery

Two years after the Small Business Act entered into force and shortly before the European Commission review, the European Economic and Social Committee's Employers Group, BUSINESSEUROPE, EUROCHAMBRES and the European Association of Craft, Small and Medium-sized Enterprises held a second yearly event to discuss the implementation of the Act and the way forward. The conference, bringing together EU decision-makers and businesses, identified a number of concrete measures to be taken rapidly by the EU and national policy makers in order to strengthen their efforts to deliver the Small Business Act for Europe (SBA).

European entrepreneurs and business representatives made it clear that current measures have not yet removed the obstacles to SMEs growth, job creation and innovation in Europe. In their conclusions (see appendix), business representatives outlined ten recommendations in the three priority areas identified by the Council in its December 2008 Small Business Act Action Plan: access to markets, better regulation and access to finance. Conference participants underscored the need to create a more SME-friendly regulatory environment by carefully assessing the impact of any new regulatory or legislative measures on SMEs. They also stressed that SMEs needed better access to markets, which is still hindered by excessive red tape and the lack of harmonisation in the EU internal market. They also called for initiatives to open up public procurement to SMEs. Despite recent initiatives taken by the EU, in particular through the European Investment Bank and EU Research Framework Programmes, access to finance remains tricky. The new EU regulatory measures for banks should be defined in a balanced way, so that they do not hinder SMEs access to capital. The potentially significant cumulative effect of the wide range of measures on the table should also be taken into account, said participants in the event.

Participants also called for successful completion of Council negotiations on the European Private Company Statute (SPE), the only legislative proposal from the SBA still pending. The absence of an SPE restricts smaller companies' ability to grow and trade across Europe.

Henri Malosse, President of the EESC Employers' Group, concluded "It is high time that the European Commission replaced its strategies, acts and plans by concrete actions. The 23 million European SMEs would very much welcome a single positive action, like those on public procurement, vocational training, entrepreneurship, taxation and finance".

Supporting SMEs and business in Europe will be one of the key solutions not only to the financial crisis but also in addressing global social and environmental issues: SMEs are crucial to innovation and creativity. They deserve to be supported. While the economic outlook may look more encouraging in large areas of the EU, smaller businesses still encounter many of the bottle-necks and obstacles that the SBA was designed to tackle. Progress has undoubtedly been made by the Commission and in certain member states over the last two years. However, if the green shoots of economic recovery are to be harnessed into a long-term upswing coupled with sustained growth and new jobs, the delivery of the SBA and compliance with its overriding 'think small first' principle must be perceptible throughout the EU.

The Employers' Group (Group I) of the European Economic and Social Committee has 113 members, and is made up of entrepreneurs and representatives of entrepreneur associations working in industry, commerce, services and agriculture in the 27 Member States of the European Union.

News source: EU Press Room link: article

Croatia´s economic recovery underway, EC report predicts

Croatian recession halted in the middle of this year and the recovery is underway, the latest European Commission report on the state of the economy shows. The report is published twice a year and looks at EU states, aspiring members and several top world economies. The recovery is especially visible in the industrial sector. EC reports also point out that retail sales have registered a growth on an annual level and that exports have helped to alleviate the recession and continue to make a positive contribution to GDP growth. The GDP is expected to fall 1.8 per cent this year, with the recovery bringing it up next year by 1.5 per cent and by 2.1 per cent in 2012.

The report sees private spending and investments as the main driving force behind the growth, as well as the presence of several other positive influences such as the EU’s relatively quick recovery, the proximity of EU membership, and a stronger influx of foreign direct investment. Potential negative influences are the dependence on external financing and the delay of the fiscal consolidation. It is not likely that the economy will reach pre-recession rates of growth in the short term, the portal Business writes. But the global economic crisis had hit the Croatian economy, especially in 2009 when the GDP dropped 5.8 per cent.

According to estimates, the budget deficit will reach 5.7 per cent of the GDP this year, and is likely to grow in 2011. It is expected to come back to this year’s levels in 2012. The report also sees the upcoming parliamentary elections as the main barrier for short term stabilization. There will be a big increase in public debt from 35 per cent in 2009 to almost 50 per cent in 2012, the report predicts. Exports grew while imports fell in the first half of the year. The physical indicators of this year’s tourist season were strong and there are indicators of the recovery of consumer confidence. The private consumption will receive a boost through a progressive elimination of the crisis tax that was implemented in 2009. The unemployment rate grew from 9.1 per cent in 2009 to 12.4 per cent in the second quarter of this year, and the annual unemployment rate for this year could reach 12.5 per cent. An end to the growth of unemployment is expected next year, with 2012 bringing a decrease to approximately 11 per cent. 

News source: Croatiantimes.com link: article

EU agrees deal with Greece to recover Hellenic aid

The European Commission said on Wednesday it had accepted proposals from Greek authorities on how to recover illegal state aid offered to shipbuilder Hellenic Shipyards. The European Union regulator in 2008 asked Greece to recover state aid amounting to 539 million euros ($702 million) given to the shipbuilder, which is partly owned by Germany's ThyssenKrupp (TKAG.DE). 

The EU's executive said in a statement the commitments offered by Greece to recover the aid will address competition concerns in Greece's market for civil shipbuilding and ship repair.

News source: Reuters link: article

Three new energy research infrastructures get green light

Three new European energy research infrastructures have been given the go-ahead by European research ministers and the European Commission. The announcement was made at the Infrastructures for Energy Research conference (ENERI 2010) in Brussels, Belgium on 29 and 30 November. The new infrastructures are a wind research facility in Denmark, a concentrated solar power (CSP) plant in Spain and a nuclear research reactor in Belgium. All three appear in the updated roadmap of ESFRI (the European Strategy Forum on Research Infrastructures), which is scheduled for publication before the end of the year. Under the newly launched Innovation Union initiative, the EU has set itself the challenge of launching 60% of the research infrastructures identified by ESFRI by 2015.

The WINDSCANNER project involves a system that can generate detailed maps of wind conditions at a wind farm covering several square kilometres. The project, headed up by the National Laboratory for Sustainable Energy at the Technical University of Denmark (Risø DTU), uses laser-based devices called Lidars ('light detection and ranging'). A Lidar sends laser beams out into the air, and when they hit particles, they are reflected back to the Lidar. Information on these reflected beams can provide information about wind conditions. A single wind scanner consists of three Lidar systems working together to produce a three-dimensional map of wind conditions. Information provided by the WINDSCANNER will allow wind turbine manufacturers to match the size of a turbine used on a site to the local wind conditions, allowing wind energy to be exploited more efficiently. A mobile unit could be deployed to diagnose problems at existing wind farms that are repeatedly experiencing technical issues. Finally, the system could also be used to detect wind shear and turbulence along runways, making flying, and especially landing, safer.

The WINDSCANNER project is expected to cost up to EUR 60 million and will become operational in 2013. 'We are pleased that the Danish test facility will now become part of the future joint European research infrastructures, so our knowledge and experience can be disseminated to other EU countries,' said Risø DTU Director Henrik Bindslev. 'We also trust the process to strengthen our own competencies within wind energy research as we intensify our dialogue with other wind energy researchers and companies.' At the other end of Europe, the EU-SOLARIS project is based at the Advanced Technology Centre for Renewable Energies (CTAER) in the Desert of Tabernas in Almería, southeastern Spain. With an annual insolation of 1,900 kWh/m2 (kilowatt hours per square metre), the site is perfect for an infrastructure project designed to take CSP technology to the next level. EU-SOLARIS' price tag is around EUR 80 million.

In CSP, reflectors concentrate the sun's rays onto a receiver, where the thermal energy is converted into electricity. 'New scientific and technological developments require the experimental demonstration of the suitability, durability, reproducibility, efficiency and competitiveness of this concept, as they are intended to be deployed on a large scale,' reads a fact-sheet issued by the CTAER. 'The EU-SOLARIS facility will fill the gap from the theory or the lab scale test to a demonstration plant of almost commercial size.' Finally, the MYRRHA project, based in the Belgian town of Mol, concerns a nuclear fission research infrastructure. MYRRHA will allow researchers to investigate improved ways of treating radioactive waste to make it safer, faster. The infrastructure will also be used to test the feasibility of a new generation of nuclear power plants.

The construction costs for MYRRHA stand at EUR 960 million; the engineering design of the facility is expected to be ready in 2014. 'Developing world-class research infrastructure in Europe, by pooling resources at EU level, is an important objective of the Innovation Union. These facilities will enable groundbreaking research and innovation and ultimately they could help to secure the EU's future energy supply,' commented the European Commissioner for Research, Innovation and Science, Máire Geoghegan-Quinn. 'We need to bring research, technology, industry and market implementation closer together and that is the purpose of the European Strategic Energy Technology Plan.' 

News source: CORDIS link: article

National radioactive waste disposal facility

In November 1999, the Bulgarian Government and the European Commission signed an Understanding in which the Bulgarian Government undertook a firm commitment to close and decommission Units 1 - 4 of the Kozloduy Nuclear Power Plant (KNPP) at the earliest possible dates. The Kozloduy International Decommissioning Support Fund (KIDSF) has been established and is administered by the European Bank for Reconstruction and Development (EBRD). One of the purposes of this Fund is to finance, or co-finance preparation and implementation of selected projects, which would require procurement of goods, works and services for establishment of the National Disposal Facility for Low and Intermediate Level Short Lived Radioactive Waste in an environmentally safe and cost effective manner.

A Project Management Unit has been established and is in operation at State Enterprise Radioactive Waste to manage the projects notified below. This General Procurement Notice draws attention to the following new upcoming procurement activities:

· Pre-disposal Monitoring of the Radiana Site - Geodesic Monitoring
This Project is for the performance of a geodesic survey of the Radiana site. Using the geodesic map produced under separate project, this project comprises the development of a monitoring programme and design of the measuring network, installation of base points, drilling of boreholes and development of stabilized bench-marks, anti-erosion activities, measurement cycles and report preparation. The expected duration of the contract implementation is thirty six calendar months.

· Pre-disposal Monitoring of the Radiana Site – Geotechnical Monitoring and Analysis
This project is for Geotechnical monitoring and analysis of the Radiana site. The work will cover development of an experimental geotechnical monitoring site to validate reasonable soil stabilization techniques for the construction of repository foundation, specification, purchase and installation of equipment designed to measure soil-structure interaction and evolution of soil properties, to develop and verify of geomechanical model of the ground massif and the repository structure based on the monitoring data. The expected duration of the contract implementation is thirty six calendar months.

· Pre-disposal Monitoring of the Radiana Site – Geodynamic Monitoring

This project is for installation and commissioning of a geodynamic monitoring system on the Radiana site. This work will include design of geodynamic monitoring system, specification of equipment and software, procurement and installation of the equipment, commissioning and training. The expected duration of the contract implementation is thirty six calendar months.

· Pre-disposal Monitoring of the Radiana Site - Seismic Monitoring
This project is for installation and commissioning of seismic monitoring system on Radiana site. The work will include design of a seismic monitoring system, specification and procurement of equipment, installation of the equipment, measurements, data collection, analysis of received data, and development of a programme for seismic monitoring for the operational period of the NDF. The expected duration of the contract implementation is thirty six calendar months.

· Pre-disposal Monitoring of the Radiana Site – Radiological Monitoring
This project is for the predisposal radiological monitoring of the Radiana site. This work will include design of the Radiological Monitoring Program, specification of radiological monitoring equipment followed by procurement, installation and commissioning of that equipment. Implementation of monitoring program, maintenance of the monitoring equipment and analysis of results obtained, training of operators. The expected duration of the contract implementation is thirty six calendar months.

· Pre-disposal Monitoring of the Radiana Site – Meteorological Monitoring
This project is for the meteorological monitoring of the Radiana site. This work will include the design and specification of the monitoring system, procurement, installation and commissioning of that equipment, maintenance of monitoring system and record of measurements. The expected duration of the contract implementation is thirty six calendar months.

· Preparation of the Radiana Site
This project is for the establishment of the infrastructure for the Radiana site. This will include construction of fences around the site perimeter and around the monitoring equipment / facilities, installation of electrical supply, site rehabilitation, access control, site access roads. Prior to commencement of the pre-disposal monitoring program on the Radiana site and installation of the monitoring equipment the site needs to be prepared.

The expected duration of the contracts implementation is fifteen calendar months. Procurement will be carried out in accordance with EBRD Procurement Policies and Rules with the exception of country eligibility restrictions defined within the KIDSF rules and will be open to Tenderers from eligible countries as of 30 November 2010: the EU member states, Switzerland and the EBRD countries of operation. All goods and services must also originate from an eligible country.

News source: EBRD link: article

The Greek economy will start recovering in the second half of 2011

The Greek economy will start recovering in the second half of 2011 but will require additional austerity measures for 2012, while unemployment is expected to soar to 15 percent next year, the European Commission forecast yesterday in its report on the next two years. The acceleration of structural reform measures and the containment of any salary increases are essential for the country’s financial streamlining, while Brussels believes that the gap in 2010 budget revenues was the main reason behind the prime minister’s decision to take extra austerity measures for 2011.

Greece’s big challenge over the next couple of years will be to return to growth while continuing its effort to reduce its deficit, the Commission estimates in its fall report. The austerity measures will continue to hinder Greek growth into 2011, the year when the country’s gross domestic product is set to decline by 3 percent. However, the first signs of recovery are set to appear in the second half of next year, while the successful implementation of the memorandum signed by Athens and its creditors will gradually restore market confidence in Greece and improve the general mood in the country. Next year will be the third and last one when Greece will be in recession, with 2012 set to see growth of 1.1 percent of gross domestic product. For this year, the Commission expects the recession to deepen to 4.25 percent of GDP, up from the most recent forecast by Greece’s creditors of a 4 percent contraction.

Brussels also expects Greece’s deficit to come to 9.6 percent of GDP (or 22.3 billion euros) in 2010 and to 7.4 percent next year, although in order to achieve the target set by the memorandum for the deficit to come in at 6.5 percent in 2012, the Commission believes that the government will need to take further measures that are not included in the memorandum. Meanwhile, the government announced yesterday an extension until December 28 of the deadline for the settlement of outstanding debts by taxpayers from the years 2000 to 2009.

News source: Ekathimerini link: article

Croatia may wrap up EU accession talks in June 2011

The European Commission said in Brussels on Monday for the first time that Croatia could wrap up EU accession negotiations towards the end of the first half of 2011. If all criteria are met, the negotiations could be wrapped up by June 2011, during Hungary's European Union presidency, said Alexandra Cas Granje, director for accession candidates at the European Commission's Enlargement Directorate General. Speaking at a meeting of the EU-Croatia Joint Parliamentary Committee, which began in Brussels on Monday afternoon, Granje outlined the possible pace at which the remaining negotiation chapters could be closed.

At the next accession conference, scheduled for December 22, Croatia could close three chapters - "Justice, Freedom and Security", "Environment" and "Foreign, Security and Defence Policy". The European Commission has already confirmed that Croatia has met all the closing benchmarks for the "Environment" chapter and on Monday this was also confirmed for "Justice, Freedom and Security" and "Foreign, Security and Defence Policy". The Commission has forwarded the chapters to Council of the EU working bodies, which have to greenlight the closing. Regarding the "Judiciary and Fundamental Rights" chapter, one of the most difficult, she said the Commission would likely release a provisional report on Croatia's compliance with the closing benchmarks on March 11, at which point it would be clearer when the chapter could be wrapped up.

Granje warned of the criteria that must be met for the closing of the "Judiciary and Fundamental Rights" chapter, including cooperation with the Hague war crimes tribunal, which involves providing the court with missing military documents from the 1990s. Zagreb has to close six policy chapters next year. It has met the closing benchmarks for the "Fisheries" chapter but the EU must respond to Croatia's request for a transitional period and to Slovenia's request regarding traditional fishermen's rights. Granje said those elements were under discussion and that "Fisheries" could be ready for closing early next year. The closing of the "Competition Policy" chapter will depend on restructuring plans for the country's shipyards. Granje said the Commission had received plans for three shipyards and that they were being examined.

News source: BalkanInsight link: article

Commission acts against Lithuania and Romania to ensure impartial regulation of telecoms

The European Commission has decided to refer Lithuania to the EU's Court of Justice for failing to comply with EU rules that require a clear separation between entities which make telecoms rules and those providing telecoms services. At the same time, the Commission has sent a formal request to Romania to comply with the same rules. This separation is essential to preserve the impartiality of national telecoms regulators, guaranteeing fair regulation for consumers and businesses and maintaining competition. The request to Romania takes the form of a 'reasoned opinion' under EU infringement procedures. If Romania fails to comply within two months, the Commission may decide to refer it to the Court of Justice.

Romania

While the Romanian Ministry of Communications and Information Society carries out regulatory tasks like the allocation and assignment of radio frequencies (e.g. adopting the national frequency plan and preparing government decisions relating to radio spectrum management), it also exercises ownership and control activities in two companies providing telecoms networks and/or services (Romtelecom S.A. and S.N.R. S.A. – 'Radiocom'). Despite regular discussions on this issue, the country has still not changed its rules on structural separation, and the Commission has decided to send a reasoned opinion to Romania requesting it to do so.

The Commission has decided to close a separate infringement proceeding opened in January 2009 over the lack of independence of the national telecoms regulator following the removal of its president in 2008 (IP/10/519). The Romanian Parliament has adopted a new legal framework which strengthens the independence of the telecoms regulator.

Background

These infringement proceedings are part of the European Commission’s efforts to ensure that national telecoms regulators are independent. Article 3(2) of the Framework Directive 2002/21/EC says that Member States that retain ownership or control companies providing telecommunications services must ensure effective structural separation of the regulatory function from activities associated with ownership or control. These rules further provide that Member States shall ensure that national regulators exercise their power impartially and transparently.

The telecoms rules adopted in November 2009 further reinforced national telecoms regulators' independence by eliminating political interference in their day-to-day duties and by adding further protection against arbitrary dismissal for the heads of national regulators. Under these new rules, which are due to be implemented by Member States no later than 25 May 2011, it will be possible to dismiss the head of the national regulatory authority only if he/she no longer fulfils the conditions laid down in advance in national law. Such decisions must furthermore contain a statement of reasons and be made public at the time of dismissal.

News source: EU Press Room link: article

The Netherlands against the enlargement of the European Union

A diplomatic source from Brussels stated that the recommendation of the European Commission is clear, so there is no need to prolong the reaching of the decision on the candidacy of Montenegro.

Until recently, it was considered that Montenegro will not be able to obtain the candidate status before the first summit in 2011 because German Chancellor Angela Merkel cannot give an approval on any issue regarding the enlargement without the approval of the German Federal Parliament. However, Germany no longer represents a blockade. The only obstacle to Montenegro for obtaining the candidate status is the Netherlands, which does not support the enlargement process.

News source: Limun.hr link: article

Statement by the EC, ECB, and IMF on the Second Review Mission to Greece

Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visited Athens during November 14-23 for the second review of the government’s economic program, which is being supported by a EUR 80 billion loan from Euro area countries and a EUR 30 billion Stand-By Arrangement with the Fund. The objectives underpinning the program are to restore fiscal sustainability, safeguard financial sector stability, and boost competitiveness—to create the conditions for sustained growth and employment. Maintaining fairness in the program also remains of paramount concern and this will continue to guide the direction of policies in the period ahead.

Our overall assessment is that the program remains broadly on track. The end-September quantitative criteria have all been met. While challenges remain, significant progress has been made, particularly in reducing the fiscal deficit. Regarding the outlook, the economy is expected to begin turning around in 2011. Wage and price inflation is beginning to moderate, setting the stage for improvements in competitiveness.

In the fiscal area, the deficit reduction by 6 percent of GDP in 2010 is larger than the initially targeted change. At the same time, data revisions for 2009 and weaker-than-projected revenue collection mean that an extra effort will be needed to meet the deficit target of 7.5 percent of GDP in 2011, which the government has reaffirmed. New measures have been agreed to broaden tax bases and eliminate wasteful spending, particularly in the areas of:

• Health spending—which is inefficient relative to other euro zone countries;

• State enterprises—which are a heavy burden on the economy with perennial losses for Greek taxpayers; and

• Tax administration—which has instruments now coming into place to strengthen compliance.

The government’s fiscal policy remains anchored in reducing the deficit to below 3 percent of GDP by 2014. The government’s medium-term budget strategy paper, to be discussed in the next review, will specify time-bound action plans for crucial structural reforms needed to achieve the remaining fiscal adjustment, and to do so in a socially balanced way.

In the financial sector, the program has been effective in supporting stability. The activation of the EUR 25 billion expansion of the government program to guarantee bank bonds, which was adopted in August, will contribute to support the liquidity position of Greek banks. Some private banks have had some success recently in raising funding as well as capital in the markets. While the banking system remains under some pressure, capital is adequate and, as envisaged under the program, the Financial Stability Fund is now available to provide support, if needed. The government has analyzed options for banks under its control and devised a program to address their stability and efficiency. Banking and insurance supervision are also being strengthened.

News source: IMF link: article

Strategy for Belgrade's candidacy for Culture Capital 2020 presented

The organizing committee for the candidacy of Belgrade for the European Capital of Culture 2020 will officially present its candidature to the European Commission in Brussels by the end of its term, which expires on December 31, committee's chairman and deputy city secretary for culture Aleksandar Pekovic announced.

At the Thursday presentation of the Belgrade 2020 project strategy, he said that in modern history, Belgrade has not had a significant strategic project in the field of culture.

“The initiative for Belgrade to run for the European Capital of Culture 2020, which is the most important European project in this field, was unanimously supported by the Belgrade City Council late last year. The first recommendation of the European Union was that the candidacy project should provide a consensus, since it takes a long time and there will inevitably be a change of political factors,” Pekovic said.

According to head of the expert team Milena Dragicevic Sesic, the realization of a “Belgrade's cultural model” will begin as early as next year. The strategy for long-term development of Belgrade's culture until 2020 is divided into ten thematic units comprising all art disciplines, both traditional and contemporary.

News source: EMG.rs link: article

New customs rules allow developing countries more benefits from trade with the EU

Today the European Commission adopted a regulation revising rules of origin for products imported under the generalised system of preferences (GSP). This regulation relaxes and simplifies rules and procedures for developing countries wishing to access the EU's preferential trade arrangements, while ensuring the necessary controls are in place to prevent fraud.

Algirdas Šemeta, Commissioner for Taxation, Customs, Anti-Fraud and Audit said:

"By updating the EU’s rules of origin, we will help to ensure that developing countries really benefit from the trade preferences on offer to them, and that the world’s poorest don’t lose out due to unnecessary complexities in our systems.”

Rules of origin are used to determine whether imported goods really originate in countries covered by the EU's preferential trade arrangements, thereby making them eligible for a preferential customs tariff. The current rules of origin, which date back to the 1970s, have been criticised for being too complex, too stringent and out-of-date.

The Regulation adopted by the Commission today will considerably simplify the rules of origin so that they are easier for developing countries to understand and to comply with. The new rules take into account the specificities of different sectors of production and particular processing requirements, amongst other things. In addition, special provisions are included for Least Developed Countries (LDCs) which would allow them to claim origin for many more goods which are processed in their territories, even if the primary materials do not originate there. For instance, an operator in Zambia that produces and exports plastics to the EU will benefit from the new rules of origin, because even with up to 70% of foreign input the exported plastics can still be considered as originating from Zambia. These new rules should greatly benefit the industries and economies of the world's poorest countries.

The proposal also puts forward a new procedure for demonstrating proof of origin, which places more responsibility on the operators. From 2017, the current system of certification of origin carried out by the third country authorities will be replaced by statements of origin made out directly by exporters registered via an electronic system. This will allow the authorities of the exporting country to re-focus their resources on better controls against fraud and abuse, while reducing red-tape for businesses. The new rules of origin will apply from 1 January 2011.

News source: EU Press Room link: article

Kosovo's Visa Liberalisation On Hold

The European Commission has revealed that it is not ready to start negotiations with Kosovo over visa liberalisation because Pristina does not have a reintegration package for its returnees. The news comes the day after Albania and Bosnia Herzegovina were confirmed by the European Union's Council of Ministers as the latest members of the white Schengen list, which grants their citizens visa-free travel across much of the EU. The announcement contradicts statements made by Ulrike Lunacek, Rapporteur on Kosovo to the European Parliament, who told Balkan Insight last month that the European Commission, EC, would open formal talks in the “coming weeks”.

Michele Cercone, spokesperson for the European Commissioner for Home Affairs, confirmed to Balkan Insight on Monday that authorities in Pristina were not ready to start the visa dialogue. He stressed that the EC would be ready to start the dialogue with Kosovo once Pristina's authorities proved they have a re-integration strategy for the returnees.

“To my knowledge there has been no promise to do something or a deadline to do something,” Cercone said. Kosovo’s parliament has already adopted a re-admission law, which helps paves the way to start visa dialogue, and has signed a number of re-admission agreements with EU members, so that Kosovars living illegally in these countries can be returned home.

But concern has been raised about the return of Roma from Kosovo, in particular. Both the European Parliament and Council of Europe have attacked Germany's planned return of 10,000 Roma to Kosovo, especially because of the incredibly high unemployment rates among that community. Delays to Kosovo's progress towards the EU at the same time as its neighbours, Albania and Bosnia Herzegovina, take an important step forward will entrench views that the world's youngest country is becoming a ghetto.

This view was confirmed to Balkan Insight last month by Green MEP Lunacek. “Kosovo has just two million people so it would be ridiculous to leave them out and it would affect the democratisation process,” she said. “We cannot leave two million people outside.” The EC's 2010 progress report for Kosovo shows more progress compared to last year’s, But serious concern remains about the lack of forward movement in the fight against corruption and in the protection of media rights. The EC will publish the annual assessment of the western Balkan countries on Tuesday, known as the progress report.

News source: BalkanInsight link: article