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Contents
Latest news
Extraordinary European Council: and the nominee is...
Dutch Presidency: a sound economy and internal security in the spotlight
Istanbul Summit: Iraq, Afghanistan and Bosnia-Herzegovina on the agenda
Euro-area economy gaining momentum
Commission proposes aid for Turkish Cypriots
EU-Africa Forum: offering support to African cotton producing countries
Highlights
Coming up
The new European Parliament: constituent plenary session
Agenda
Next issue:
27 July 2004
 
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13 July 2004 - Issue 38

Latest news

Extraordinary European Council: and the nominee is...

Barroso as President designate of the Commission

Handshake between José Manuel Barroso, and Romano Prodi. in the centre Bertie Ahern Putting an end to a thorny debate, heads of state and government eventually settled on Portugal's Prime Minister, José Manuel Durão Barroso, as their candidate for the head of the new Commission.

Leaders met on 29 June to seal this and several other appointments formally.

"This decision underlines Portugal's symbolic value as an EU success story," commented President Prodi.

If confirmed, Barroso will take office on 1 November for a five-year term, succeeding Prodi.

The new European Parliament following the June elections will meet on 20 July. Members will vote on whether to approve the nominee for Commission President.

"We have gone through some difficult times and other difficulties will surely lie ahead, but we are tackling them in the right way and José Manuel Durão Barroso is the right person to hold this office of great responsibility and sensitivity," stated President Prodi who then went on to offer his compliments to the Irish Presidency for its outstanding diplomatic skills.

A multilingual lawyer, the Commission President designate has been Portugal's Prime Minister since April 2002. He is known for having got Portugal out of its 'excessive deficit' problems.

Like his predecessors, Barroso will decide on the internal organisation of the Commission. He will have to approve of the list of designated Commissioners drawn up by the Council and allocate portfolios to the 24 candidate-Commissioners. After obtaining the approval of the College, the President will also appoint Vice-Presidents from among its Members.

Solana stays 'Mr. CFSP'

Javier Solane, Romano Prodi and Bertie Ahern at a press conferenceThe Council also re-appointed Javier Solana as Secretary-General of the Council and High Representative for Common Foreign and Security Policy (CFSP) and Pierre de Boissieu as Deputy Secretary-General. These appointments are also for five years.

Heads of State or Government also decided that Solana would be appointed as EU Minister for Foreign Affairs on the day of entry into force of the Constitution.

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Site in focus

Citizen's interests

 


Dutch Presidency: economy and internal security in the spotlight

Jan Peter Balkenende, Dutch Prime Minister and President of the Council of the EUThe Netherlands took up the Presidency of the Council of the EU on 1 July, right after the historic adoption of the Constitution and in the midst of the election of a new Parliament and the nomination of a new Commission. The Dutch Presidency considers this transitory period as a unique opportunity to initiate liberal reforms in the economic field and conservative reforms in the social field. Its priorities are the sustainable growth of the European economy, employment, security and justice in the EU, as well as enlargement.

Financial Perspectives

The Dutch Presidency will lead the debate on the definition of a new financial and budgetary framework for the period from 2007 to 2013.

It aims to come up with main orientations and great political principles by the end of its term (December 2004), so that an agreement may be reached in 2005.

Area of freedom, security and justice

Cooperation with regard to justice and home affairs will strive towards two main objectives: setting up the political orientations for the years to come and examining priority issues.

Among the main issues of concern: the fight against terrorism and against the financing of terrorism; asylum and immigration, mainly with regard to the return policy; the integration policy; the use of biometric parameters and civil cooperation.

Enlargement

The Dutch Presidency will follow the conclusions of the European Council of December 2003, which stipulate that negotiations with Romania and Bulgaria will be concluded in December 2004 provided that both countries go on making concrete progress. Negotiations with Croatia should start soon. Regarding Turkey's application, the new Presidency repeated its desire to open negotiations, but also reminded that this would depend on the report that the Commission will submit to the European Council in December.

Lisbon Process

Emphasis will be put on economic growth. The Presidency aims to fight against unemployment by developing job opportunities in the services sector and by overcoming existing obstacles in the internal market. With this aim in mind, the Dutch Presidency will insist on reducing administrative and legislative charges on companies and on a complete liberalisation of the services sector.

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Istanbul Summit: Iraq, Afghanistan and Bosnia-Herzegovina on the agenda

NATO and European flagsThe 26 Member States of the Alliance gathered in Istanbul on 28 and 29 June on the occasion of the NATO Summit. This was the first summit gathering the United States and all their European allies since the armed intervention in Iraq. Despite persisting divergences, leaders agreed on a set of issues and have made considerable progress on Iraq, Afghanistan and Bosnia-Herzegovina.

Iraq 

Only a few hours after the official transfer of power to the Iraqi people, NATO Member States decided to offer NATO assistance to the Iraqi government to train its security forces but left each of these countries the responsibility of organising this training as they see fit.

The EU considers sending an envoy to Iraq and inviting Iraqi authorities to participate in a meeting of European Foreign Affairs Ministers in Brussels. Europe's possible role in training the Iraqi police will only be considered later on.

Afghanistan

Responding to the demand of the Afghan President Hamid Karzaï, NATO decided to further expand the International Security Assistance Force (ISAF) across Afghanistan through the establishment by lead nations of additional Provincial Reconstruction Teams (PRTs). This would increase the strength of ISAF from its current 6,500 to 10,000 troops

Bosnia-Herzegovina

NATO officially confirmed its decision to hand over the international military intervention in Bosnia-Herzegovina to the European Union at the end of the year. European Union High Representative for CFSP Javier Solana, confirmed that the European Union was ready to take on this mission. In the coming months, the EU will begin preparations for operational planning and defining how it intends using NATO means in the context of the so-called "Berlin+" arrangements on co-operation between the two organisations.

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Euro-area economy gaining momentum

According to July's Quarterly Report, the euro-area economy is now well on its road to recovery. After the mixed signals at the beginning of the year, survey indicators are now pointing to an upturn thanks to revived business sentiment. Annual GDP growth for 2004 is now likely to exceed the Commission's spring forecast of 1.7 per cent.

Whilst results for 2004 are likely to be surprisingly positive, the outlook for next year appears less so. Firstly, sustainability of recovery will depend on the strength of domestic demand, which is still clouded by uncertainties. Secondly, oil price developments could be a cause for concern.

Nonetheless, oil prices should not prove to be a major constraint to euro-area recovery, as the increase in oil prices during the second quarter of this year was relatively small by historical standards and is expected to be essentially temporary. There is also evidence that, thanks to the single monetary policy, the economy can now absorb oil shocks more effectively than in the past. A further rise in oil prices however, especially if more permanent, could inflict more serious damage to the economy.

Budgetary prospects for 2004 and 2005 are not very promising. Following three years of fiscal slippages, the Commission's Spring Forecasts project the budget deficit in the euro-area to be largely unchanged in 2004 and, if current policies are not changed, in 2005 also.

Furthermore, recent data suggest that there is a risk that deficits in 2004 could be higher than forecast in several Member States. If policies remain unchanged, six Member States will post deficits above the 3 per cent reference value in 2004 and/or 2005.

The report also indicates that the euro area is already characterised by a high degree of cyclical convergence among its Member States. Convergence should increase further in the years to come as European Monetary Union (EMU) fosters trade and financial integration. However, the EMU is not immune to temporary episodes of cyclical divergence. It is therefore important to strengthen the economy's capacity to cope with shocks by achieving further progress with structural reforms.

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Commission proposes aid for Turkish Cypriots

typical Cypriot harbourAfter the failure of diplomatic efforts to reunite Cyprus before the island's accession to the European Union, the European Commission proposed a €259 million economic aid package with trade benefits for Turkish-held areas of Cyprus.

"As the Turkish Cypriot community expressed overwhelming support for the UN Plan to reunify Cyprus, it would have been unfair, to say the least, to leave it out in the cold," said Enlargement Commissioner Günter Verheugen when presenting the package. 

Alongside the €259 million euro aid package, the plan seeks to allow the duty-free import by the EU of goods from the Turkish part of Cyprus. It also aims to reopen Turkish Cypriot ports that have been closed to international trade since 1974. 

"If adopted by the Council, [the aid and trade scheme] will foster the economic development of the northern part of the island," Verheugen went on. "It will also build new bridges between the two communities and thus keep alive hopes of the reunification of Cyprus." 

Turkish Cypriots voted overwhelmingly in April in favour of a United Nations plan to resolve the division of the island. The Greek Cypriot electorate rejected the plan.

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EU-Africa Forum: offering support to African cotton producing countries

People working in a cotton fieldThe recent fall in world cotton prices has had a serious impact in several West and Central African countries, where cotton is the main source of income. On 5 and 6 July, the EU-Africa Forum on cotton gathered in Paris to define a roadmap with measures in support of African cotton producing countries. Discussions centred around:

  • getting fairer trade conditions on international cotton markets: the EU supports the calls from the four African cotton producers (Benin, Burkina Faso, Mali and Chad) to pursue a reduction in trade-distorting subsidies, better market access and the elimination of all forms of export subsidies in this sector in the on-going WTO negotiations under the Doha Development Agenda;
  • supporting African cotton producing countries in implementing comprehensive plans for the development of their cotton sectors: developing inter-professional and public-private cooperation; promoting responsiveness to evolutions of markets and technologies; boosting quality recognition; developing mechanisms to mitigate price risks; as well as ways to develop the processing of cotton into textiles and clothing.

"This Forum illustrates the European Union's desire to establish an open and constructive dialogue with our African partners," said Trade Commissioner Pascal Lamy. "Our joint ambition for this partnership must be that it is much more than a simple reaction to current circumstances, or a short-term mobilisation. It must be an enduring co-operation."

The forum built on the Communication on the cotton sector in Africa adopted in February 2004.

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Highlights

Scientist and representation of atoms to the European colorsAlthough Europe is a world leader in chemical production, holding 28 percent of the world market, its proportion of global trade has dropped by 4 percent over the past decade. Chemical and biotechnology sector organisations CEFIC and EuropaBIO, with the support of the European Commission, launched a European 'Technology Platform on Sustainable Chemistry' on 6 July to establish a long-standing public-private partnership with a view to increasing investment on research and innovation and boosting European competitiveness in this sector. The platform will bring together industry, research centres, the financial world and regulatory authorities at European level to tailor a strategic research agenda for the sector. Issues to be addressed include three key technology areas for Europe: industrial biotechnology, materials technology, reaction and process design, and an area for cross-cutting issues including the environment, health and safety, education and skills, research infrastructures, and access to risk capital.


Cellular phonesMobile broadband services are an economic locomotive in their own right. To ensure that data can be accessed anytime, anywhere across the EU, and that the EU retains its lead in this area, the Commission released a Communication called 'Mobile broadband services' on 30 June. The latest generation of mobile and wireless technologies will combine the benefits of high-speed broadband connections and high-volume data-carrying capacity with mobility. For example, mobile users will be able to shop and pay on-line and receive a whole range of audio-visual services such as music and video. The ability to link the mobile workforce with company headquarters and exchange data at high speed will change working processes and improve organisational efficiency. The challenges ahead include ensuring that services can be supplied seamlessly to a variety of devices, making the technologies and networks that carry them interoperable, and providing adequate intellectual property protection for services with high value-added content. These challenges call for targeted R&D, both on basic research and to accelerate technical innovation.


Seven recommendations. This is what came out of the high level group on textiles meeting on 30 June. In order to ensure that the EU textiles and clothing industry keeps its world leader status, participants proposed to strengthen the protection of intellectual property rights, to improve education, training and employment and to enhance competitiveness. They also proposed to re-focus regional funds in support of textiles industry and to simplify rules for access of SMEs to R&D and innovation programmes. The Group concluded that it is essential for the EU textiles industry to increase its access to third countries by obtaining tariffs at the lowest possible level. They also stressed the growing importance of the Chinese market.


Euro coinsThe European Central Bank (ECB) launched a new version of its website on 26 June. The website's design has been revamped and the contents restructured in order to make it more user-friendly. The two sections of particular interest to the general public, 'The European Central Bank' and 'Banknotes & Coins', are now available in all 20 official EU languages. The ECB is the central bank for Europe's single currency, the euro. The ECB's main task is to maintain its purchasing power and thus price stability in the euro-area. The euro-area comprises the 12 European Union countries that have introduced the euro since 1999.


Girl learning how to writeIn today's world, health challenges are increasingly global in nature. The European Commission and the World Health Oganisation (WHO) therefore decided to further reinforce their joint efforts to reduce poverty and improve health conditions in developing countries. "HIV/AIDS is just one example of where high level political commitment is needed, not only to fight the epidemic, but also to protect people living with HIV/AIDS, to fight the stigma and to safeguard their human rights," said David Byrne, Commissioner for Health and Consumer Protection. "The EU and WHO share goals and are natural allies. It makes sense that we join forces to meet the challenges that confront public health systems today." Particular attention will be given to improving the health of mothers, reversing the advance of HIV/AIDS, malaria and other diseases; and strengthening systems for generating information about the performance of health systems. The selection of WHO as one of the strategic partners in the field of development underlines the European Commission's commitment to the Millenium Development Goals (MDGs) and recognises the critical role that must be played by the United Nations' specialised agencies in achieving them.


Suffering man of depression120 million people worldwide suffer from depression. An EU-funded research project launched recently will help to uncover the genetic factors linked to depression to develop new drug treatments. The Integrated Project, named NEWMOOD, has received €7.2 million in funding from the EU's Sixth Research Framework Programme (FP6) and aims to identify genes involved in triggering depression. This will help researchers to develop new drugs over the next five years to treat it and improve understanding of its causes. The drugs are set to revolutionise antidepressant drugs, which have not changed much over the past 30 years. The project, co-ordinated by the University of Manchester (United Kingdom) involves partners from 13 laboratories in 10 European countries including Estonia, France, Germany, Hungary, Italy, the Netherlands, Poland, Slovenia and Spain.


Researcher making experimentsAt the conference "Brain drain, brain gain: new challenges" held on 29 and 30 June in Paris, European Research Commissioner Philippe Busquin launched the new European network of mobility centres for researchers ERA-MORE. Bringing together 200 centres in 33 countries, this new instrument should help to improve information and practical assistance for researchers in Europe. This network is one of several European initiatives to make Europe a better place to do research. In July last year the Commission launched the Researcher's Mobility Portal, linking some 3,000 sites relating to moving across Europe.

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Coming up

The new European Parliament: constituent plenary session

Following the elections in June, the new European Parliament will get together for the first time from 20 to 23 July. Its 732 Members will elect their President and Vice-Presidents. They will also vote on the nomination of José Manuel Durão Barroso as the new President of the European Commission.

Since the election results on the eve of 13 June, the Members of the European Parliament (MEPs) have been busy setting up political groups. From 1 July, a political group can be set up only if it draws its Members from at least a fifth of the EU Member States and has a minimum of 19 Members. Regarding the balance of power in the European Parliament, the EPP-ED Group remains the largest political group in the Parliament with 279 seats, while the PSE Group (Socialist Group) keeps 199 seats. National leaders of the Party of European Liberal Democrats and Reformers have given their backing to the creation of a new centrist pro-European political group made up of the liberals, the MEPs of the Italian centrist 'Olive Tree' coalition led by Romano Prodi and the MEPs from the French Centre-right UDF led by François Bayrou. The new 80-strong group is to be called the Alliance of Liberals and Democrats for Europe to reflect the group's commitment to a stronger EU. This should formally be announced on 13 July. On 22 July, the Members of the European Parliament will elect their new President. So far, there are three candidates: Hans-Gert Pöttering, Chairman of the EEP-ED Group in the European Parliament, José Borrell Fontelles, President of the Spanish delegation of the PES Group, and Polish former Foreign Minister Bronislaw Geremek (Poland). The latter enjoys the support of the Greens and of the recently announced pro-European centrist group.

The President is in charge of parliamentary activities as a whole: chairing plenary sittings and meetings of the Bureau and the Conference of Presidents; representing the Parliament in all outside activities, not least in international relations; and delegating certain tasks to the Vice-Presidents.

After these constitutive tasks, the European Parliament will start its usual work. MEPs will also have to prepare the individual hearings of the 24 prospective Commissioners. These will take place from 27 September to 4 October.

The new Commission will take office on 1 November. All European institutions will then be ready to proceed with their work.

To know more, pay a visit to 'How the Parliament works'

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Site in Focus

Researchers! Europe's doors are wide open!

Researcher with test-tubesIn Lisbon (March 2000) the EU committed itself to spending 3 percent of GDP on research by 2010. To reach this objective, the Union needs to hire no less than 700,000 researchers. With this aim in mind, the European Commission launched a series of initiatives to remove the obstacles to the mobility of researchers in Europe.

One of these initiatives is the new European Researcher's Mobility Portal, ERA-Careers.

This website is a treasure of information. It facilitates job-hunting for researchers by providing job offers and up-to-date information on financial and legal aspects.

Looking for one piece of information in particular? You should be able to find it thanks to a selection of hundreds of links to international, European, national, regional or thematic websites.

If you are a researcher and you are looking for a job, the Researchers section offers you the opportunity to post your CV on a database that is regularly checked by companies or organisations with an interest in research. This service is completely free of charge!

If your company would like to hire new researchers, you just need to advertise your job vacancy in the Organisations section.

How about moving to another country of the European Union? Surf to Mobility Centres. The new European network of mobility centres (ERA-MORE) provides assistance to researchers and their families. It consists of 200 centres spread over 33 countries in Europe and beyond.

The home page gives you access to general information about research fellowships and grants, to job offers published by the different actors within the European research community, to practical information about administrative and legal issues when moving from one country to another, and to information on legislation matters within the European Research area.

The new Researcher's Mobility Portal is a joint initiative of the European Commission and of the 33 countries that participate in the Sixth Framework Programme for European research (FP6). Thanks to the new ERA-Careers portal, Europe's doors are wide open!

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Citizens' Interests

Energy for the future

Wind millsIn a recent Communication on "The share of renewable energy in the EU", the Commission drew attention to the insufficient progress made so far in this area. It calls on Member States to ensure that 2010 targets are met by putting into action the necessary measures.

As a matter of fact, the European Commission's White Paper for a Community Strategy sets out a strategy to double the share of renewable energies in gross domestic energy consumption in the European Union by 2010 (from the present 6 percent to 12 percent).

 Why is the development of renewable energy a central aim of the European Commission's energy policy?

First and foremost, renewable energy considerably reduces Carbon Dioxide (CO2) emissions. It also enhances sustainability and helps to improve the security of energy supply by reducing the EU's growing dependence on imported energy sources.

In the medium to long term, renewable energy sources are expected to be economically competitive with conventional energy sources.

Several of the technologies, especially wind energy, but also small-scale hydro power, energy from biomass, and solar thermal applications, are economically viable and competitive. The others, especially photovoltaic (silicon module panels directly generating electricity from the sun's light rather than heat), depend only on increasing demand to achieve the economy of scale necessary for competitiveness.

In order to reach 12 percent of the gross domestic energy consumption, the Commission set up a timetable of actions in the form of an Action Plan.

An important part of the Action Programme is the Campaign for Take-Off for Renewables. It aims to highlight investment opportunities and attract the necessary private funding which is expected to make up the lion's share of the capital required. The Campaign also seeks to encourage public spending to focus on the key sectors.

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Agenda

12-13 July
General Affairs and External Relations Council, Brussels
15 July
Visit of the European Parliament, The Hague
16 July
Economic and Financial Affairs, Brussels
19 July
Justice and Home Affairs Council, Brussels
19 July
Agriculture and Fisheries Council, Brussels
19-24 July
Towards Carfree Cities IV, Berlin
20-23 July
Plenary session of the European Parliament.
The session can be followed live on Europe by Satellite
21 July
Statement by the President of the Council – Dutch Presidency Programme, Strasbourg
22 July
Statement by the President designate of the European Commission, Strasbourg
More information on forthcoming events can be found in the Agenda of the EU Institutions, which is published every Friday.
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The Europa Newsletter is published by the European Commission, DG Communication