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n°11   March 2013
A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS




N°11 – 19th March 2013


SECTORAL POLICIES

1. Agriculture and Fisheries...........................................................................................................................................2

2. Defence ..............................................................................................................................................................................3

3. Energy and Environment ...........................................................................................................................................3

4. Financial Services ..........................................................................................................................................................4

5. Food and Beverage .......................................................................................................................................................4

6. Healthcare and Pharmaceuticals ............................................................................................................................5

7. Information and Communication Technology ..................................................................................................6

8. Sports and Gambling ....................................................................................................................................................7

9. Transport ..........................................................................................................................................................................7



CROSS-SECTORAL POLICIES

10. Competition ..................................................................................................................................................................9

11. Consumer .......................................................................................................................................................................9

12. Intellectual Property and Copyright ................................................................................................................ 11

13. Taxation ....................................................................................................................................................................... 11

14. Trade ............................................................................................................................................................................. 11




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SECTORAL POLICIES

1. Agriculture and Fisheries
Vineyards: tough talks on new plantation rights from 2016

In March, the Special Committee on Agriculture discussed the conditions for allowing new
vineyards to be planted as of January 2016, when the new plantation right system will enter into
force. The Irish Presidency of the Council suggested that the system should last until the end of
2021 and that the cap for new plantations should be set at 1% of the already existing system,
with the possibility given to Member States to introduce a lower safeguard level.

The European Commission was targeting a 2% safeguard level, but some Member States, such as
France, Germany, Italy, Portugal and Spain, argued that the threshold level was too high, and
that they would prefer a 0.5% cap. This option is supported by wine producers, who fear that
liberalisation could deregulate the sector, encourage overproduction and lower prices, and harm
the EU’s reputation on wine quality.

Negotiations between the Council of Ministers and the European Parliament on plantation rights
as well as the reform of the Common Agricultural Policy (CAP) are expected to start in April.

Fishery reform: agreement on discard ban

On 27 February, the Member States’ Ministers for Fisheries agreed on the implementing
arrangements for the discard ban, which constitutes the cornerstone of the reform of the
Common Fisheries Policy (CFP). The agreement provides for a gradual implementation and the
obligation to land all catches as of between 2014 and 2019, depending on species and zones. The
ban will apply from1 January 2014 for pelagic species, from 1 January 2015 in the Baltic Sea and
from 1 January 2016 in the North Sea, as well as North-Western and South-Western waters, with
a three-year transitional period. In the Mediterranean, the Black Sea, as well as in all EU and
non-EU waters, the ban will apply from 1 January 2017, with a two-year transitional period.
There will be no exemptions for individual species or zones, but the level of acceptable discards
(the de minimis threshold) will also be progressive, starting with 9% of catches per day at sea in
2014 and ending with 7% in 2018. This was the price for securing the support of the reluctant
Southern countries, which opposed the total and early application of the ban demanded by
Northern countries, instead preferring a flexible implementation timetable.

The discard ban has drawn mixed reactions. The industry notes that, although an important step
has been taken, further clarification is needed, especially on the practical implementation of the
ban and its impact on fishing communities. The European Parliament, which agreed on its
position on 6 February and opted for a more sustainable fisheries policy, criticises the Council
for failing to back a full discard ban. Hence, the inter-institutional three-way talks between the
Council, the European Commission and the European Parliament to be launched now are set to
be difficult. Nonetheless, the Irish Presidency aims to have a final agreement by the end of June.




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2. Defence
European cooperation forums strive for a more competitive European military industry

The two cooperation forums Visegrád Group, which comprises Hungary, the Czech Republic,
Slovakia and Poland, and the Weimar Triangle, which comprises France, Germany and Poland,
were brought together for the first time at a summit held in Warsaw on 6 March. The Polish
Prime Minister, Donald Tusk, and the French President, François Hollande, stressed the need for
closer cooperation and a common strategic approach. The joint aim is to improve the
competitiveness of the European military industry.

At the meeting, the six Heads of State and Government adopted a joint declaration, which
intends to provide a positive impetus to European defence capacity. The declaration particularly
emphasises the complementarity of European defence and NATO, as well as the need to avoid
unnecessary duplication. The signatories would like to see their defence cooperation contribute
to the objectives of the “Toward NATO forces 2020” project. In this context, the declaration
highlights the military industry’s role in this process, thereby attaching high importance to small
and medium-sized enterprises in particular.


3. Energy and Environment
Energy infrastructures: new regulatory framework to implement EU priority projects

At the plenary session of 12 March, the European Parliament definitely adopted the Regulation
for Trans-European energy infrastructures, which aims at accelerating the approval of EU
priority projects of common interest, such as pipelines and power grids, and to make them
eligible for funding under the Connecting Europe Facility (CEF). The Council still has to formally
approve the Regulation before it will fully enter into force 20 days after its publication in the
Official Journal of the EU.

The Regulation defines 12 EU priority corridors in urgent need of development, on the basis of
which projects will be selected and benefit from special regulatory treatment, as well as faster
permit procedures. Project promoters will have to present their applications to a group of
experts consisting of European Commission and Member States representatives, as well as
energy transport network managers. After the adoption of regional lists of selected projects
reflecting the EU priorities, the European Commission will publish an EU-wide final list of
projects. The possible financing under the CEF will be possible from 2014 onwards.

Nuclear safety and insurance: European Parliament continues to put pressure

As expected in February, the plenary session of the European Parliament fully supported on 14
March the Resolution prepared by its Energy Committee (ITRE) on the safety improvements
required in the nuclear sector. MEPs called to urgently carry out – at operators’ and not
taxpayers’ expenses – the recommendations adopted following the stress tests of nuclear power
plants in 2012. They are also in favour of giving the European Nuclear Safety Regulators Group
(ENSREG) a leading role in monitoring the progresses achieved in the implementation of these
recommendations. In an amendment supported by 315 votes against 282, MEPs eventually
added that the tests were “incomplete” and that risks, such as secondary events, material
deterioration, human errors and specific flaws inside the reactor, were not taken into account.

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MEPs are now waiting for the forthcoming revision of the Directive on nuclear safety. They also
keep calling for a clear indication of the timing and content of the upcoming draft binding
legislation on nuclear insurance and liability.


4. Financial Services
Final approval on the Capital Requirements Directive IV expected in April

The negotiations on the draft Capital Requirements Directive IV legislative package, which
includes prudential rules requiring banks to own more equity capital, are proceeding. Rules
limiting bankers’ bonuses to the equivalent of their salary or two times their salary given
approval from shareholders have been the key issue in the discussions. On 28 February, the
negotiators for the European Council, the European Parliament and the ECOFIN Council
(consisting of all EU Ministers for Economics and Finance) reached an agreement including the
bonuses cap. The UK has continued to voice reservations in the ECOFIN Council, but its room for
manoeuvre is very limited, because the rules do not require unanimity.

Apart from a few technical issues that still need to be resolved, the proposal is likely to be
approved by the ECOFIN Council shortly. A final approval by the European Parliament is
expected between 15 and 18 April, so that the legislative package would enter into force on 1
January 2014.


5. Food and Beverage
Food fraud: DNA testing and higher penalties

The EU has set up large-scale DNA testing of food products to assess the scale of the scandal of
horsemeat sold as beef, which has spread across Europe since early January and has involved
operators in a number of Member States. The initial one-month testing plan, which was agreed
upon by European leaders on 4 March and can be extended for another two months, focuses on
DNA in meat products and also involves checking horsemeat for potentially harmful drug
residues. First results are expected by 15 April.

Moreover, the European Commission will propose in April or May a legislative package on
animal and plant health. On 28 February, Commissioner for Health and Consumer Policy, Tonio
Borg, outlined to MEPs some of the measures that could be included in the package, amongst
others higher financial penalties for violations of food-chain rules and compulsory monitoring if
a problem is detected in a Member State. After having been presented, the package will be
examined by the Council and the European Parliament. It is not expected to be adopted before
the end of term of the current European Commission in May 2014.

Animal protein for use in fish feed reapproved

As the European Commission announced on 14 February, the Regulation lifting the ban on using
processed animal protein (PAP) derived from non-ruminant farm animals – mainly from pigs
and poultry – in fish feed entered into force on 13 February. This will allow farmed fish and
other aquaculture animals once again to be fed with non-ruminant PAPs. The reauthorisation
will apply from 1 June.



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The European Commission hopes to go further in lifting the ban, planning to reintroduce the use
of PAPs for poultry and pigs. However, it does not intend to propose the reauthorisation of PAPs
for feeding ruminant animals, such as cattle or sheep, or non-ruminant farmed animals.

The European Commission had banned the use of PAPs in farm feed in 1997 for cattle and in
2001 for all animals, after they were linked to the spread of Bovine Spongiform Encephalopathy
(BSE). It has now argued that their reintroduction does not pose health risks and complies with
the latest scientific opinions.


6. Healthcare and Pharmaceuticals
On-going discussions on the revision of the Tobacco Directive

Around three months after the European Commission presented its proposal, debates on the
revision of the 2001 Tobacco Products Directive are accelerating. At the beginning of March, the
topic has already been discussed three times in the Council, with the Irish Presidency planning
another ten meetings, and the European Parliament’s report, prepared by rapporteur Linda
McAvan (S&D, UK), is expected later this month.

Positions on the proposal vary widely. While it does not go far enough for some, such as Irish
Health Minister James Reilly, others draw attention to the proposal’s potential negative impact
on the economy: not only the tobacco industry, but also several Member States and some MEPs,
expressed concerns that the new Directive could damage a multibillion Euro industry and
destroy jobs at a time when the EU has to grapple with the economic crisis.

The proposal introduces new and strengthened rules on tobacco products. Measures like large
pictorial warnings are aimed at making smoking less attractive, especially for younger people.
Proponents of the proposal would like to see it adopted before the parliamentary elections in
2014, which means that the EU institutions are now racing against time.

MEPs disagree on clinical trials

The European Commission’s proposal for a new Regulation on clinical trials, which was
presented on 17 July and repeals the current Directive 2001/20/EC, is currently being debated
in the European Parliamentary Environment, Public Health and Food Safety (ENVI) Committee.

The current Directive, which was implemented in 2004 with a view to improving research
standards, protecting patients and notably enhancing the competitiveness of clinical research,
has been criticised by researchers for imposing an overly heavily regulatory framework, thus
increasing costs and red tape without bringing any major benefit to patients. Hence, the new
Regulation aims at breathing new life into clinical research in Europe by simplifying procedures.
The new rules are supposed to make it easier for drug companies and researchers to carry out
cross-border clinical trials by introducing a harmonised EU submission system.

The discussions in the ENVI Committee, however, have unveiled substantial disagreements
among MEPs, particular when it comes to the issue of clinical trials being transparent.
Rapporteur Glenis Willmott (S&D, UK), backed by the Greens and NGOs, expressed the view that
a summary of the results from the sponsors does not go far enough to allow researchers to carry
out their evaluations. Philippe Juvin (EPP, France), on the other hand, warned that requiring
academics to publish everything would involve thousands of documents.



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The vote on the European Commission’s proposal in the ENVI Committee is scheduled for 24
April. In June, it will undergo its first reading in plenary. A plenary vote has not yet been
scheduled.

European Commission wants to improve labelling of hazardous products

The European Commission aims at better protecting workers from the dangers of exposure to
chemical substances at their workplace. On 26 February, it presented a legislative proposal for a
Directive amending five existing Directives on occupational health and safety to align them with
Regulation (EC) 1272/2008 on the classification, labelling and packaging of chemicals.

The new Directive would require manufacturers and suppliers of chemical substances to
provide harmonised labelling information on hazard classification. Thus, users would be alerted
to the presence of hazardous chemicals, the need to avoid exposure and the associated risks.

The proposal has been the subject of two rounds of consultation of employer and trade union
representatives at EU level as well as debates in the Advisory Committee on Safety and Health at
Work (ACSHW). It now goes to the Council and the European Parliament for adoption.

European Commission provides €144 million funding for rare diseases research

On Rare Disease Day 2013 (28 February), the European Commission announced €144 million of
new funding for 26 research projects on rare diseases in order to help improve the lives of some
of the 30 million Europeans suffering from them. The selected projects, which cover a broad
spectrum of diseases, bring together more than 300 participants from 29 countries in Europe
and beyond. The aim is to pool resources and to work beyond borders to get a better
understanding or rare diseases and to find adequate treatment.


7. Information and Communication Technology
European Commission invests €50 million in 5G networks

The European Commission is currently pressing for the development of 5G networks. At the
Mobile World Congress in Barcelona on 26 February, Commissioner for the Digital Agenda
Neelie Kroes announced that the European Commission will invest €50 million in research to
support the development of 5G mobile telecoms networks by 2020.

At the same time, she deplored the delay in implementation of the 4G networks. Although the
Council and the European Parliament adopted a year ago a Decision obliging Member States to
free up their radio spectrum for 4G networks from 1 January 2013, 17 of them still do not have
this technology. Since access to broadband is essential for modern economies to return to
growth, Kroes warned that the European Commission might launch infringement proceedings
against those Member States who do not comply with their legal commitments.

Grand Coalition for jobs in the digital sector

On 4 March, European Commission President José Manuel Barroso launched the Grand Coalition
for Digital Jobs, a two-day conference in Brussels aimed at engaging joint action for training
additional professionals in the information and communication technology (ICT) sector. Firms
like Microsoft and Google, as well as several Commissioners, are participating in the initiative.



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Despite high unemployment in the EU, the number of jobs in the digital sector is growing every
year. Without additional training efforts, however, there will be 900,000 vacancies due to a lack
of qualified personnel by 2015. The conference thus aims at helping young people and the
unemployed to find jobs in the digital sector. Although the European Commission has a key role
to play, it is businesses and organisations that have to take action to reverse the current trend.
Several businesses such as the Spanish telecoms group Telefónica have already committed to
increase their efforts and those that haven’t done so yet have the opportunity to submit their
pledge until 31 May. All pledges will be presented at the Digital Assembly in June.


8. Sports and Gambling
European Parliament discusses Draft Report on online gambling in the internal market

The European Parliament’s Internal Market and Consumer Protection (IMCO) Committee has
completed its first exchange of views on its initiative response to the European Commission’s
Communication on online gambling presented in October 2012. On 27 February, rapporteur
Ashley Fox (ECR, UK) unveiled his Draft Report on online gambling in the internal market.

The Draft Report calls for an objective and non-discriminatory implementation of the EU
principles and rules on gambling. In particular, it requests the European Commission to continue
carrying out effective checks on compliance with EU law of national laws and practices. It also
takes the view that common standards for online gambling should address the rights and
obligations of both the service provider and the consumer, including measures to ensure a high
level of protection for players, particularly minors and other vulnerable persons, and the
prevention of misleading advertisements. Eventually, the Draft Report stresses the need to
adopt additional safeguards against money laundering and match fixing.

The report will be considered in the IMCO Committee on 20/21 March. The deadline for tabling
amendments is 4 April and the amendments will be considered on 24/25 April. The vote in the
IMCO Committee will take place on 29/30 May and in June/July in plenary.


9. Transport
First ministerial and parliamentary debates on fourth rail package

Following the presentation in January of the European Commission’s proposal to review the
regulatory framework governing railway activities in Europe, both the Council and the European
Parliament started examining the draft provisions.

The Member States’ transport ministers decided to begin their debates with the technical
aspects related to the interoperability of the EU rail system. In tackling the least controversial
elements, the Irish presidency hoped to avoid blockage at the beginning of the negotiations, but
the Member States nevertheless expressed concerns about the idea of giving the sole
competence for issuing authorisation for placing rail vehicles and equipment to the European
Railway Agency (ERA). The European delegations would prefer that national authorities retain
control over the authorisation and certification procedures for vehicles destined only for the
domestic market. They also underlined that transferring competences to ERA is premature,
notably because the third railway package has not yet been fully applied. The European
Commission still supports this transfer of competences, because it would be a good way to
reduce costs and shorten procedures, which can, in some Member States, last up to two years.

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In the European Parliament, MEPs voiced concerns that small and less profitable railway lines
could suffer from a liberalisation of domestic railway traffic. Given that it will be obligatory to
make public calls for tenders for public service missions, some MEPs supported the idea of
making it necessary to incite operators to take the different lines in charge. Other MEPs
criticised the removal from the European Commission’s proposal of the most controversial
provision, which would have made it compulsory to clear the separation between infrastructure
managers and railway undertakings. Moreover, they feared that the current discussion will end
up with the necessity to present a fifth railway package.

The negotiations on the fourth rail package are expected to continue the whole year and may
last until after the EU elections in 2014.

Air passengers’ rights: Commission has presented new rules

Following recent judgments by the European Court of Justice, the European Commission
presented on 13 March a package of measures to enhance airline passenger rights and to clarify
the current Regulation, dating from 2004. Under the new provisions, the air carrier will have to
inform passengers on delayed or cancelled flight as soon as possible and in any event not later
than 30 minutes after the scheduled departure time. The proposal also defines rights to
assistance after two hours of delay and compensation if the delay at arrival is more than five
hours for all intra-EU flights and for short international flights of less than 3,500 km. In case of
tarmac delays, the passenger will have the right to renounce to the travel and have the ticket
price reimbursed after five hours. The passenger may also request free of charge the correction
of spelling mistakes in his name and will have new rights with regard to mishandled baggage.

The proposal will also reinforce the coordination and exchange of information among the
National Enforcement Bodies with the support of the European Commission. The latter will also
have the power to request the launch of (joint) investigations by the national authorities. The
proposal has now been passed on to the European Parliament and the Council for further
elaboration.




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CROSS-SECTORAL POLICIES
10. Competition
EU fines Microsoft €561 million

On 6 March, the European Commission imposed a fine of €561 million on Microsoft for having
failed to let users choose their web browser. It said that the US company had broken a legally
binding commitment made in 2009 to offer users a ballot screen enabling them to choose their
preferred browser, instead of automatically imposing its Internet Explorer on them, until 2014.
As of March 2010, the ballot screen was proposed to European Windows users. In 2012,
however, the European Commission received a complaint that the ballot screen had disappeared
from Windows 7 Service Pack 1 between May 2011 and July 2012, which lead to the
investigation that now resulted in the fine.

The sanction is unprecedented insofar as the European Commission has never before handed
down a fine to a company for failing to comply with a legally binding commitment and will act as
a warning to other companies involved in EU antitrust disputes, such as Google.

European Commission closes preliminary investigation into E5

The European Commission has closed its investigation into whether Europe’s five leading
telecoms operators were breaking competition laws in their talks on standards for future mobile
services. Concerned that the so-called “E5” might be keeping other operators off the market, it
had requested information in March 2012 from Deutsche Telecom, France Télécom, Telefónica,
Vodafone and Telecom Italia on the way standards for future mobile communications services
are being developed. On 7 March, the European Commission noted that the standardisation talks
among the operators have been transferred to industry associations, thus allowing more
stakeholder participation. Considering this a positive step that reduces risk of a breach of
competition law, the European Commission decided to close its investigation, but warned that it
will remain watchful of how standardisation processes evolve in this sector.


11. Consumer
European Commission seeks input on improving access to justice in cross-border
disputes

On 19 March, the European Commission launched a public consultation on improving access to
justice for consumers and small businesses in small-scale cross-border disputes. In fact, the
European Small Claims Procedure, which first entered into application on 1 January 2009,
provides a quick and easy way to resolve cross-border disputes for amounts below €2,000. It
can be used in cases where consumers need to enforce their rights, for example due to non-
delivery of goods ordered from another Member State. Yet, a report last year from the European
Consumer Centres Network found that this procedure is not yet well-known and underused.

The European Commission is now seeking for input from consumers, businesses and the general
public on how the Small Claims Procedure is currently being used and how it could be improved.


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The aim is to increase confidence in cross-border shopping, thus helping consumers and small
businesses make full use of the Single Market.

The consultation will run until 10 June. Subsequently, the European Commission will assess the
contributions received and then report back before the end of 2013 on how the Small Claims
Procedure is operating after its first five years. If necessary, the report will be accompanied by a
proposal to revise the procedure.

Public consultation on plastic waste

On 7 March, the European Commission published a Green Paper on plastic waste, which aims at
gathering facts and opinions to evaluate the impact of plastic waste on the environment and to
define a European strategy to mitigate them. As the particular challenges posed by plastic waste
are currently not specifically addressed in EU waste legislation, stakeholders are invited to voice
their opinion on whether and how existing legislation should be adapted to deal with plastic
waste, on the effectiveness of recycling targets and on corresponding economic measures. The
consultation, which includes 26 questions, will take until the beginning of June and its results
will feed into further policy action in 2014 as part of a broader review of EU waste policy.

What is barely mentioned in the Green Paper is the issue of single-use plastic carrier bags. Some
Member States have been waiting for the European Commission to clarify whether national bans
on plastic bags violate common market rules. The European Commission launched a
consultation on this issue in 2011 and subsequently prepared a legislative proposal that would
allow Member States to ban plastic carrier bags, but the proposal is being held back by its
secretary-general. For the time being, the question on the legality of a ban therefore remains
unanswered. However, Commissioner for the Environment, Janez Potocnik, said in March 2013
that the proposal will eventually come out.

Cosmetic products: full ban on animal testing enters into force

The European Commission decided that the final deadline of 11 March for phasing out animal
testing for cosmetic products has to be observed by the cosmetics industry if they wish to
market their products in the EU.

Pursuant to Directive 2003/15/EC, animal testing has been prohibited since 2004 for cosmetic
products and since 2009 for cosmetic ingredients (testing ban). Since 2009, this prohibition has
also applied to the marketing of products that have been subject to animal testing (marketing
ban). However, a derogation existed for tests related to complex human health effects, such as
the toxicity of repeated doses. As of 11 March, the marketing ban is total.

In a Communication published on 11 March, the European Commission informed the Council
and the European Parliament of its decision and outlines its policy priorities in this area:
ensuring a coherent implementation of the marketing ban and monitoring its impact, continuing
the support for research on alternative testing methods; and making alternative testing methods
an integral part of the EU’s trade agenda and international cooperation.




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12. Intellectual Property and Copyright
Unified patent court system agreement signed

On 19 February, 24 of the 27 Member States signed the final piece of the legislative package on
the EU’s unitary patent, agreeing to create a unified patent court system to rule in disputes on
this new intellectual property instrument.

Under the current system, companies are obliged to initiate proceedings in each country where a
European patent is challenged, leading to potentially inconsistent outcomes and increased
litigation costs. The new system, by contrast, provides for a single set of legal proceedings and
judgements binding on all signatory states, thus increasing consistency and cutting down costs.

As a next step, a preparatory committee will be set up to examine implementing arrangements.
At least one local court in each signatory state and central courts having jurisdiction throughout
the EU will be established. While the effective seat of the central court will be in Paris, the office
of the President and of certain judges, as well as the administration, will be in Munich. Cases
related to chemicals, biotechnology and hygiene will be heard in London, whereas those
involving mechanical engineering will be heard in Munich.

The agreement has to be ratified in 13 countries before it can take effect, so that the target date
for implementing the new system is January 2014.


13. Taxation
Public consultations on measures to improve tax collection and compliance

On 25 February, the European Commission launched two public consultations on measures to
improve tax collection and to ensure better tax compliance across the EU. The first consultation
is on the development of a European Taxpayer's Code, which would harmonise the rights and
obligations of taxpayers and tax authorities. The second consultation is on a European Tax
Identification Number (EU TIN), a measure to facilitate the proper identification of taxpayers,
which has become more difficult due to cross-border economic activity and the increased
mobility of EU citizens.

The consultations follow the Action Plan launched in December 2012 by the European
Commission for a more effective EU response to tax evasion and avoidance. Both the Taxpayer's
Code and the EU TIN were among the measures the European Commission proposed in its
Action Plan to tackle tax fraud and evasion. The consultations will run until 17 May.


14. Trade
Negotiating mandate for the Transatlantic Trade and Investment Partnership

The European Commission gave a green light to the draft negotiating mandate for the
Transatlantic Trade and Investment Partnership on 12 March in view of presenting a proposal to
the Council before the end of March. The Council is expected to come to a decision on whether to


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open negotiations by mid-June. The US has already stated that it envisages an 18-months
timeframe for an initial deal, before a new European Commission comes to office in 2014.

On 13 February, US President, Barack Obama, European Commission President, José Manuel
Barroso and European Council President, Herman Van Rompuy, had decided to take their
economic relationship to a higher level by agreeing to launch negotiations on a comprehensive
trade and investment agreement. When entering into force, the latter will be the biggest bilateral
trade deal ever negotiated and could add 0.5% to the EU's annual economic output.

European Commission tables Trade and Investment Barriers Report 2013

The European Commission’s efforts to fight protectionism over the last year bore fruit, the EU
executive announced when releasing the third edition of its “Trade and Investment Barriers
Report” on 14 March. However, the overall assessment of the report, which identifies market
access barriers in six key trading partners (China, India, Japan, Mercosur, Russia and the US) and
evaluates the progress achieved in removing trade barriers, is less positive.

In this context, the report notes that not all of the barriers identified by the European
Commission last year could be addressed and that several long-standing obstacles still stand in
the way of European companies looking for markets outside the EU. In particular, barriers
remain in India and Russia, and protectionism is even on the rise in Argentina, Brazil and China.

The European Commission announced that it will continue to ensure that the EU’s trading
partners stick to their commitments and keep their markets open.
The Trade and Investment Barriers Report was first issued in 2011 in an effort to implement the
“EU 2020” Growth Strategy. It is being published at the annual European Spring Councils to
move the dismantling of trade barriers to the top of the EU’s political agenda.




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For further information please contact:

Leonardo Sforza (leonardo.sforza@mslgroup.com)

Romain Seignovert (romain.seignovert@mslgroup.com)

Klas Landelius (klas.landelius@jklgroup.com)

Andrea Oechsler (andrea.oechsler@mslgroup.com)


MSLGROUP Brussels, Avenue des Gaulois, 18 – B 1040 Bruxelles

Our website: www.mslgroup.com

Follow us on twitter for the breaking news updates: @MSL_Brussels




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Insight Brussels March 2013

  • 1. | Insight Brussels | 0 n°11 March 2013
  • 2. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS N°11 – 19th March 2013 SECTORAL POLICIES 1. Agriculture and Fisheries...........................................................................................................................................2 2. Defence ..............................................................................................................................................................................3 3. Energy and Environment ...........................................................................................................................................3 4. Financial Services ..........................................................................................................................................................4 5. Food and Beverage .......................................................................................................................................................4 6. Healthcare and Pharmaceuticals ............................................................................................................................5 7. Information and Communication Technology ..................................................................................................6 8. Sports and Gambling ....................................................................................................................................................7 9. Transport ..........................................................................................................................................................................7 CROSS-SECTORAL POLICIES 10. Competition ..................................................................................................................................................................9 11. Consumer .......................................................................................................................................................................9 12. Intellectual Property and Copyright ................................................................................................................ 11 13. Taxation ....................................................................................................................................................................... 11 14. Trade ............................................................................................................................................................................. 11 | Insight Brussels | 1
  • 3. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS SECTORAL POLICIES 1. Agriculture and Fisheries Vineyards: tough talks on new plantation rights from 2016 In March, the Special Committee on Agriculture discussed the conditions for allowing new vineyards to be planted as of January 2016, when the new plantation right system will enter into force. The Irish Presidency of the Council suggested that the system should last until the end of 2021 and that the cap for new plantations should be set at 1% of the already existing system, with the possibility given to Member States to introduce a lower safeguard level. The European Commission was targeting a 2% safeguard level, but some Member States, such as France, Germany, Italy, Portugal and Spain, argued that the threshold level was too high, and that they would prefer a 0.5% cap. This option is supported by wine producers, who fear that liberalisation could deregulate the sector, encourage overproduction and lower prices, and harm the EU’s reputation on wine quality. Negotiations between the Council of Ministers and the European Parliament on plantation rights as well as the reform of the Common Agricultural Policy (CAP) are expected to start in April. Fishery reform: agreement on discard ban On 27 February, the Member States’ Ministers for Fisheries agreed on the implementing arrangements for the discard ban, which constitutes the cornerstone of the reform of the Common Fisheries Policy (CFP). The agreement provides for a gradual implementation and the obligation to land all catches as of between 2014 and 2019, depending on species and zones. The ban will apply from1 January 2014 for pelagic species, from 1 January 2015 in the Baltic Sea and from 1 January 2016 in the North Sea, as well as North-Western and South-Western waters, with a three-year transitional period. In the Mediterranean, the Black Sea, as well as in all EU and non-EU waters, the ban will apply from 1 January 2017, with a two-year transitional period. There will be no exemptions for individual species or zones, but the level of acceptable discards (the de minimis threshold) will also be progressive, starting with 9% of catches per day at sea in 2014 and ending with 7% in 2018. This was the price for securing the support of the reluctant Southern countries, which opposed the total and early application of the ban demanded by Northern countries, instead preferring a flexible implementation timetable. The discard ban has drawn mixed reactions. The industry notes that, although an important step has been taken, further clarification is needed, especially on the practical implementation of the ban and its impact on fishing communities. The European Parliament, which agreed on its position on 6 February and opted for a more sustainable fisheries policy, criticises the Council for failing to back a full discard ban. Hence, the inter-institutional three-way talks between the Council, the European Commission and the European Parliament to be launched now are set to be difficult. Nonetheless, the Irish Presidency aims to have a final agreement by the end of June. | Insight Brussels | 2
  • 4. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS 2. Defence European cooperation forums strive for a more competitive European military industry The two cooperation forums Visegrád Group, which comprises Hungary, the Czech Republic, Slovakia and Poland, and the Weimar Triangle, which comprises France, Germany and Poland, were brought together for the first time at a summit held in Warsaw on 6 March. The Polish Prime Minister, Donald Tusk, and the French President, François Hollande, stressed the need for closer cooperation and a common strategic approach. The joint aim is to improve the competitiveness of the European military industry. At the meeting, the six Heads of State and Government adopted a joint declaration, which intends to provide a positive impetus to European defence capacity. The declaration particularly emphasises the complementarity of European defence and NATO, as well as the need to avoid unnecessary duplication. The signatories would like to see their defence cooperation contribute to the objectives of the “Toward NATO forces 2020” project. In this context, the declaration highlights the military industry’s role in this process, thereby attaching high importance to small and medium-sized enterprises in particular. 3. Energy and Environment Energy infrastructures: new regulatory framework to implement EU priority projects At the plenary session of 12 March, the European Parliament definitely adopted the Regulation for Trans-European energy infrastructures, which aims at accelerating the approval of EU priority projects of common interest, such as pipelines and power grids, and to make them eligible for funding under the Connecting Europe Facility (CEF). The Council still has to formally approve the Regulation before it will fully enter into force 20 days after its publication in the Official Journal of the EU. The Regulation defines 12 EU priority corridors in urgent need of development, on the basis of which projects will be selected and benefit from special regulatory treatment, as well as faster permit procedures. Project promoters will have to present their applications to a group of experts consisting of European Commission and Member States representatives, as well as energy transport network managers. After the adoption of regional lists of selected projects reflecting the EU priorities, the European Commission will publish an EU-wide final list of projects. The possible financing under the CEF will be possible from 2014 onwards. Nuclear safety and insurance: European Parliament continues to put pressure As expected in February, the plenary session of the European Parliament fully supported on 14 March the Resolution prepared by its Energy Committee (ITRE) on the safety improvements required in the nuclear sector. MEPs called to urgently carry out – at operators’ and not taxpayers’ expenses – the recommendations adopted following the stress tests of nuclear power plants in 2012. They are also in favour of giving the European Nuclear Safety Regulators Group (ENSREG) a leading role in monitoring the progresses achieved in the implementation of these recommendations. In an amendment supported by 315 votes against 282, MEPs eventually added that the tests were “incomplete” and that risks, such as secondary events, material deterioration, human errors and specific flaws inside the reactor, were not taken into account. | Insight Brussels | 3
  • 5. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS MEPs are now waiting for the forthcoming revision of the Directive on nuclear safety. They also keep calling for a clear indication of the timing and content of the upcoming draft binding legislation on nuclear insurance and liability. 4. Financial Services Final approval on the Capital Requirements Directive IV expected in April The negotiations on the draft Capital Requirements Directive IV legislative package, which includes prudential rules requiring banks to own more equity capital, are proceeding. Rules limiting bankers’ bonuses to the equivalent of their salary or two times their salary given approval from shareholders have been the key issue in the discussions. On 28 February, the negotiators for the European Council, the European Parliament and the ECOFIN Council (consisting of all EU Ministers for Economics and Finance) reached an agreement including the bonuses cap. The UK has continued to voice reservations in the ECOFIN Council, but its room for manoeuvre is very limited, because the rules do not require unanimity. Apart from a few technical issues that still need to be resolved, the proposal is likely to be approved by the ECOFIN Council shortly. A final approval by the European Parliament is expected between 15 and 18 April, so that the legislative package would enter into force on 1 January 2014. 5. Food and Beverage Food fraud: DNA testing and higher penalties The EU has set up large-scale DNA testing of food products to assess the scale of the scandal of horsemeat sold as beef, which has spread across Europe since early January and has involved operators in a number of Member States. The initial one-month testing plan, which was agreed upon by European leaders on 4 March and can be extended for another two months, focuses on DNA in meat products and also involves checking horsemeat for potentially harmful drug residues. First results are expected by 15 April. Moreover, the European Commission will propose in April or May a legislative package on animal and plant health. On 28 February, Commissioner for Health and Consumer Policy, Tonio Borg, outlined to MEPs some of the measures that could be included in the package, amongst others higher financial penalties for violations of food-chain rules and compulsory monitoring if a problem is detected in a Member State. After having been presented, the package will be examined by the Council and the European Parliament. It is not expected to be adopted before the end of term of the current European Commission in May 2014. Animal protein for use in fish feed reapproved As the European Commission announced on 14 February, the Regulation lifting the ban on using processed animal protein (PAP) derived from non-ruminant farm animals – mainly from pigs and poultry – in fish feed entered into force on 13 February. This will allow farmed fish and other aquaculture animals once again to be fed with non-ruminant PAPs. The reauthorisation will apply from 1 June. | Insight Brussels | 4
  • 6. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS The European Commission hopes to go further in lifting the ban, planning to reintroduce the use of PAPs for poultry and pigs. However, it does not intend to propose the reauthorisation of PAPs for feeding ruminant animals, such as cattle or sheep, or non-ruminant farmed animals. The European Commission had banned the use of PAPs in farm feed in 1997 for cattle and in 2001 for all animals, after they were linked to the spread of Bovine Spongiform Encephalopathy (BSE). It has now argued that their reintroduction does not pose health risks and complies with the latest scientific opinions. 6. Healthcare and Pharmaceuticals On-going discussions on the revision of the Tobacco Directive Around three months after the European Commission presented its proposal, debates on the revision of the 2001 Tobacco Products Directive are accelerating. At the beginning of March, the topic has already been discussed three times in the Council, with the Irish Presidency planning another ten meetings, and the European Parliament’s report, prepared by rapporteur Linda McAvan (S&D, UK), is expected later this month. Positions on the proposal vary widely. While it does not go far enough for some, such as Irish Health Minister James Reilly, others draw attention to the proposal’s potential negative impact on the economy: not only the tobacco industry, but also several Member States and some MEPs, expressed concerns that the new Directive could damage a multibillion Euro industry and destroy jobs at a time when the EU has to grapple with the economic crisis. The proposal introduces new and strengthened rules on tobacco products. Measures like large pictorial warnings are aimed at making smoking less attractive, especially for younger people. Proponents of the proposal would like to see it adopted before the parliamentary elections in 2014, which means that the EU institutions are now racing against time. MEPs disagree on clinical trials The European Commission’s proposal for a new Regulation on clinical trials, which was presented on 17 July and repeals the current Directive 2001/20/EC, is currently being debated in the European Parliamentary Environment, Public Health and Food Safety (ENVI) Committee. The current Directive, which was implemented in 2004 with a view to improving research standards, protecting patients and notably enhancing the competitiveness of clinical research, has been criticised by researchers for imposing an overly heavily regulatory framework, thus increasing costs and red tape without bringing any major benefit to patients. Hence, the new Regulation aims at breathing new life into clinical research in Europe by simplifying procedures. The new rules are supposed to make it easier for drug companies and researchers to carry out cross-border clinical trials by introducing a harmonised EU submission system. The discussions in the ENVI Committee, however, have unveiled substantial disagreements among MEPs, particular when it comes to the issue of clinical trials being transparent. Rapporteur Glenis Willmott (S&D, UK), backed by the Greens and NGOs, expressed the view that a summary of the results from the sponsors does not go far enough to allow researchers to carry out their evaluations. Philippe Juvin (EPP, France), on the other hand, warned that requiring academics to publish everything would involve thousands of documents. | Insight Brussels | 5
  • 7. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS The vote on the European Commission’s proposal in the ENVI Committee is scheduled for 24 April. In June, it will undergo its first reading in plenary. A plenary vote has not yet been scheduled. European Commission wants to improve labelling of hazardous products The European Commission aims at better protecting workers from the dangers of exposure to chemical substances at their workplace. On 26 February, it presented a legislative proposal for a Directive amending five existing Directives on occupational health and safety to align them with Regulation (EC) 1272/2008 on the classification, labelling and packaging of chemicals. The new Directive would require manufacturers and suppliers of chemical substances to provide harmonised labelling information on hazard classification. Thus, users would be alerted to the presence of hazardous chemicals, the need to avoid exposure and the associated risks. The proposal has been the subject of two rounds of consultation of employer and trade union representatives at EU level as well as debates in the Advisory Committee on Safety and Health at Work (ACSHW). It now goes to the Council and the European Parliament for adoption. European Commission provides €144 million funding for rare diseases research On Rare Disease Day 2013 (28 February), the European Commission announced €144 million of new funding for 26 research projects on rare diseases in order to help improve the lives of some of the 30 million Europeans suffering from them. The selected projects, which cover a broad spectrum of diseases, bring together more than 300 participants from 29 countries in Europe and beyond. The aim is to pool resources and to work beyond borders to get a better understanding or rare diseases and to find adequate treatment. 7. Information and Communication Technology European Commission invests €50 million in 5G networks The European Commission is currently pressing for the development of 5G networks. At the Mobile World Congress in Barcelona on 26 February, Commissioner for the Digital Agenda Neelie Kroes announced that the European Commission will invest €50 million in research to support the development of 5G mobile telecoms networks by 2020. At the same time, she deplored the delay in implementation of the 4G networks. Although the Council and the European Parliament adopted a year ago a Decision obliging Member States to free up their radio spectrum for 4G networks from 1 January 2013, 17 of them still do not have this technology. Since access to broadband is essential for modern economies to return to growth, Kroes warned that the European Commission might launch infringement proceedings against those Member States who do not comply with their legal commitments. Grand Coalition for jobs in the digital sector On 4 March, European Commission President José Manuel Barroso launched the Grand Coalition for Digital Jobs, a two-day conference in Brussels aimed at engaging joint action for training additional professionals in the information and communication technology (ICT) sector. Firms like Microsoft and Google, as well as several Commissioners, are participating in the initiative. | Insight Brussels | 6
  • 8. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS Despite high unemployment in the EU, the number of jobs in the digital sector is growing every year. Without additional training efforts, however, there will be 900,000 vacancies due to a lack of qualified personnel by 2015. The conference thus aims at helping young people and the unemployed to find jobs in the digital sector. Although the European Commission has a key role to play, it is businesses and organisations that have to take action to reverse the current trend. Several businesses such as the Spanish telecoms group Telefónica have already committed to increase their efforts and those that haven’t done so yet have the opportunity to submit their pledge until 31 May. All pledges will be presented at the Digital Assembly in June. 8. Sports and Gambling European Parliament discusses Draft Report on online gambling in the internal market The European Parliament’s Internal Market and Consumer Protection (IMCO) Committee has completed its first exchange of views on its initiative response to the European Commission’s Communication on online gambling presented in October 2012. On 27 February, rapporteur Ashley Fox (ECR, UK) unveiled his Draft Report on online gambling in the internal market. The Draft Report calls for an objective and non-discriminatory implementation of the EU principles and rules on gambling. In particular, it requests the European Commission to continue carrying out effective checks on compliance with EU law of national laws and practices. It also takes the view that common standards for online gambling should address the rights and obligations of both the service provider and the consumer, including measures to ensure a high level of protection for players, particularly minors and other vulnerable persons, and the prevention of misleading advertisements. Eventually, the Draft Report stresses the need to adopt additional safeguards against money laundering and match fixing. The report will be considered in the IMCO Committee on 20/21 March. The deadline for tabling amendments is 4 April and the amendments will be considered on 24/25 April. The vote in the IMCO Committee will take place on 29/30 May and in June/July in plenary. 9. Transport First ministerial and parliamentary debates on fourth rail package Following the presentation in January of the European Commission’s proposal to review the regulatory framework governing railway activities in Europe, both the Council and the European Parliament started examining the draft provisions. The Member States’ transport ministers decided to begin their debates with the technical aspects related to the interoperability of the EU rail system. In tackling the least controversial elements, the Irish presidency hoped to avoid blockage at the beginning of the negotiations, but the Member States nevertheless expressed concerns about the idea of giving the sole competence for issuing authorisation for placing rail vehicles and equipment to the European Railway Agency (ERA). The European delegations would prefer that national authorities retain control over the authorisation and certification procedures for vehicles destined only for the domestic market. They also underlined that transferring competences to ERA is premature, notably because the third railway package has not yet been fully applied. The European Commission still supports this transfer of competences, because it would be a good way to reduce costs and shorten procedures, which can, in some Member States, last up to two years. | Insight Brussels | 7
  • 9. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS In the European Parliament, MEPs voiced concerns that small and less profitable railway lines could suffer from a liberalisation of domestic railway traffic. Given that it will be obligatory to make public calls for tenders for public service missions, some MEPs supported the idea of making it necessary to incite operators to take the different lines in charge. Other MEPs criticised the removal from the European Commission’s proposal of the most controversial provision, which would have made it compulsory to clear the separation between infrastructure managers and railway undertakings. Moreover, they feared that the current discussion will end up with the necessity to present a fifth railway package. The negotiations on the fourth rail package are expected to continue the whole year and may last until after the EU elections in 2014. Air passengers’ rights: Commission has presented new rules Following recent judgments by the European Court of Justice, the European Commission presented on 13 March a package of measures to enhance airline passenger rights and to clarify the current Regulation, dating from 2004. Under the new provisions, the air carrier will have to inform passengers on delayed or cancelled flight as soon as possible and in any event not later than 30 minutes after the scheduled departure time. The proposal also defines rights to assistance after two hours of delay and compensation if the delay at arrival is more than five hours for all intra-EU flights and for short international flights of less than 3,500 km. In case of tarmac delays, the passenger will have the right to renounce to the travel and have the ticket price reimbursed after five hours. The passenger may also request free of charge the correction of spelling mistakes in his name and will have new rights with regard to mishandled baggage. The proposal will also reinforce the coordination and exchange of information among the National Enforcement Bodies with the support of the European Commission. The latter will also have the power to request the launch of (joint) investigations by the national authorities. The proposal has now been passed on to the European Parliament and the Council for further elaboration. | Insight Brussels | 8
  • 10. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS CROSS-SECTORAL POLICIES 10. Competition EU fines Microsoft €561 million On 6 March, the European Commission imposed a fine of €561 million on Microsoft for having failed to let users choose their web browser. It said that the US company had broken a legally binding commitment made in 2009 to offer users a ballot screen enabling them to choose their preferred browser, instead of automatically imposing its Internet Explorer on them, until 2014. As of March 2010, the ballot screen was proposed to European Windows users. In 2012, however, the European Commission received a complaint that the ballot screen had disappeared from Windows 7 Service Pack 1 between May 2011 and July 2012, which lead to the investigation that now resulted in the fine. The sanction is unprecedented insofar as the European Commission has never before handed down a fine to a company for failing to comply with a legally binding commitment and will act as a warning to other companies involved in EU antitrust disputes, such as Google. European Commission closes preliminary investigation into E5 The European Commission has closed its investigation into whether Europe’s five leading telecoms operators were breaking competition laws in their talks on standards for future mobile services. Concerned that the so-called “E5” might be keeping other operators off the market, it had requested information in March 2012 from Deutsche Telecom, France Télécom, Telefónica, Vodafone and Telecom Italia on the way standards for future mobile communications services are being developed. On 7 March, the European Commission noted that the standardisation talks among the operators have been transferred to industry associations, thus allowing more stakeholder participation. Considering this a positive step that reduces risk of a breach of competition law, the European Commission decided to close its investigation, but warned that it will remain watchful of how standardisation processes evolve in this sector. 11. Consumer European Commission seeks input on improving access to justice in cross-border disputes On 19 March, the European Commission launched a public consultation on improving access to justice for consumers and small businesses in small-scale cross-border disputes. In fact, the European Small Claims Procedure, which first entered into application on 1 January 2009, provides a quick and easy way to resolve cross-border disputes for amounts below €2,000. It can be used in cases where consumers need to enforce their rights, for example due to non- delivery of goods ordered from another Member State. Yet, a report last year from the European Consumer Centres Network found that this procedure is not yet well-known and underused. The European Commission is now seeking for input from consumers, businesses and the general public on how the Small Claims Procedure is currently being used and how it could be improved. | Insight Brussels | 9
  • 11. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS The aim is to increase confidence in cross-border shopping, thus helping consumers and small businesses make full use of the Single Market. The consultation will run until 10 June. Subsequently, the European Commission will assess the contributions received and then report back before the end of 2013 on how the Small Claims Procedure is operating after its first five years. If necessary, the report will be accompanied by a proposal to revise the procedure. Public consultation on plastic waste On 7 March, the European Commission published a Green Paper on plastic waste, which aims at gathering facts and opinions to evaluate the impact of plastic waste on the environment and to define a European strategy to mitigate them. As the particular challenges posed by plastic waste are currently not specifically addressed in EU waste legislation, stakeholders are invited to voice their opinion on whether and how existing legislation should be adapted to deal with plastic waste, on the effectiveness of recycling targets and on corresponding economic measures. The consultation, which includes 26 questions, will take until the beginning of June and its results will feed into further policy action in 2014 as part of a broader review of EU waste policy. What is barely mentioned in the Green Paper is the issue of single-use plastic carrier bags. Some Member States have been waiting for the European Commission to clarify whether national bans on plastic bags violate common market rules. The European Commission launched a consultation on this issue in 2011 and subsequently prepared a legislative proposal that would allow Member States to ban plastic carrier bags, but the proposal is being held back by its secretary-general. For the time being, the question on the legality of a ban therefore remains unanswered. However, Commissioner for the Environment, Janez Potocnik, said in March 2013 that the proposal will eventually come out. Cosmetic products: full ban on animal testing enters into force The European Commission decided that the final deadline of 11 March for phasing out animal testing for cosmetic products has to be observed by the cosmetics industry if they wish to market their products in the EU. Pursuant to Directive 2003/15/EC, animal testing has been prohibited since 2004 for cosmetic products and since 2009 for cosmetic ingredients (testing ban). Since 2009, this prohibition has also applied to the marketing of products that have been subject to animal testing (marketing ban). However, a derogation existed for tests related to complex human health effects, such as the toxicity of repeated doses. As of 11 March, the marketing ban is total. In a Communication published on 11 March, the European Commission informed the Council and the European Parliament of its decision and outlines its policy priorities in this area: ensuring a coherent implementation of the marketing ban and monitoring its impact, continuing the support for research on alternative testing methods; and making alternative testing methods an integral part of the EU’s trade agenda and international cooperation. | Insight Brussels | 10
  • 12. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS 12. Intellectual Property and Copyright Unified patent court system agreement signed On 19 February, 24 of the 27 Member States signed the final piece of the legislative package on the EU’s unitary patent, agreeing to create a unified patent court system to rule in disputes on this new intellectual property instrument. Under the current system, companies are obliged to initiate proceedings in each country where a European patent is challenged, leading to potentially inconsistent outcomes and increased litigation costs. The new system, by contrast, provides for a single set of legal proceedings and judgements binding on all signatory states, thus increasing consistency and cutting down costs. As a next step, a preparatory committee will be set up to examine implementing arrangements. At least one local court in each signatory state and central courts having jurisdiction throughout the EU will be established. While the effective seat of the central court will be in Paris, the office of the President and of certain judges, as well as the administration, will be in Munich. Cases related to chemicals, biotechnology and hygiene will be heard in London, whereas those involving mechanical engineering will be heard in Munich. The agreement has to be ratified in 13 countries before it can take effect, so that the target date for implementing the new system is January 2014. 13. Taxation Public consultations on measures to improve tax collection and compliance On 25 February, the European Commission launched two public consultations on measures to improve tax collection and to ensure better tax compliance across the EU. The first consultation is on the development of a European Taxpayer's Code, which would harmonise the rights and obligations of taxpayers and tax authorities. The second consultation is on a European Tax Identification Number (EU TIN), a measure to facilitate the proper identification of taxpayers, which has become more difficult due to cross-border economic activity and the increased mobility of EU citizens. The consultations follow the Action Plan launched in December 2012 by the European Commission for a more effective EU response to tax evasion and avoidance. Both the Taxpayer's Code and the EU TIN were among the measures the European Commission proposed in its Action Plan to tackle tax fraud and evasion. The consultations will run until 17 May. 14. Trade Negotiating mandate for the Transatlantic Trade and Investment Partnership The European Commission gave a green light to the draft negotiating mandate for the Transatlantic Trade and Investment Partnership on 12 March in view of presenting a proposal to the Council before the end of March. The Council is expected to come to a decision on whether to | Insight Brussels | 11
  • 13. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS open negotiations by mid-June. The US has already stated that it envisages an 18-months timeframe for an initial deal, before a new European Commission comes to office in 2014. On 13 February, US President, Barack Obama, European Commission President, José Manuel Barroso and European Council President, Herman Van Rompuy, had decided to take their economic relationship to a higher level by agreeing to launch negotiations on a comprehensive trade and investment agreement. When entering into force, the latter will be the biggest bilateral trade deal ever negotiated and could add 0.5% to the EU's annual economic output. European Commission tables Trade and Investment Barriers Report 2013 The European Commission’s efforts to fight protectionism over the last year bore fruit, the EU executive announced when releasing the third edition of its “Trade and Investment Barriers Report” on 14 March. However, the overall assessment of the report, which identifies market access barriers in six key trading partners (China, India, Japan, Mercosur, Russia and the US) and evaluates the progress achieved in removing trade barriers, is less positive. In this context, the report notes that not all of the barriers identified by the European Commission last year could be addressed and that several long-standing obstacles still stand in the way of European companies looking for markets outside the EU. In particular, barriers remain in India and Russia, and protectionism is even on the rise in Argentina, Brazil and China. The European Commission announced that it will continue to ensure that the EU’s trading partners stick to their commitments and keep their markets open. The Trade and Investment Barriers Report was first issued in 2011 in an effort to implement the “EU 2020” Growth Strategy. It is being published at the annual European Spring Councils to move the dismantling of trade barriers to the top of the EU’s political agenda. | Insight Brussels | 12
  • 14. A MONTHLY ALERT ON KEY EU POLICY DEVELOPMENTS AFFECTING OUR CLIENTS For further information please contact: Leonardo Sforza (leonardo.sforza@mslgroup.com) Romain Seignovert (romain.seignovert@mslgroup.com) Klas Landelius (klas.landelius@jklgroup.com) Andrea Oechsler (andrea.oechsler@mslgroup.com) MSLGROUP Brussels, Avenue des Gaulois, 18 – B 1040 Bruxelles Our website: www.mslgroup.com Follow us on twitter for the breaking news updates: @MSL_Brussels | Insight Brussels | 13