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European Commission Spokesman's Briefing for 06-07-19
From: EUROPA, the European Commission Server at <http://europa.eu.int>
CONTENTS / CONTENU
[I] Résultats de la Commission de ce jour - Outcome
of today's Commission meeting
[01] Ensemble de mesures pour renforcer la solidarité entre les Etats
membres en matière de gestion des frontières et pour lutter contre
l'immigration clandestine
[02] Commission adopts guidelines on state aid to support risk capital
investments in SMEs
[03] Commission approves proposed acquisition of J.M. Huber's on-site paper
coating mineral business by Omya, subject to conditions
[04] Commission gives positive assessment of Germany's action to correct
excessive deficit by 2007
[05] La Commission approuve l'octroi d'une aide de €100 millions d'euros
à des fonds de capital-investissement du sud de l'Italie
[06] Commission endorses €206.1 million aid for cluster of nine
electronics production facilities in Kobierzyce (Poland)
[07] Commission prohibits public funding for additional broadband network
in Appingedam (Netherlands)
[08] La Commission autorise le régime de soutien de l'Agence française de
l'innovation industrielle en faveur des programmes mobilisateurs
[09] Commission demands repeal of Luxembourg's preferential tax regime for
financial holdings
[10] VAT : Commission asks the Czech Republic, Hungary, Malta, Poland and
Portugal for information on the application of reduced VAT rates to
children's diapers
[11] La Commission traduit la France devant la Cour de justice pour non-
récupération d'une aide d'Etat illégale
[12] Commission requests Italy to comply with EU rules on electronic
communications
[13] Commission authorises Germany to grant €2.5 billion aid to its coal
industry for the year 2006
[14] Libre circulation des capitaux : la Commission clôt la procédure
engagée contre l'Espagne au sujet de la loi de privatisation
[15] Maritime transport : Commission approves a tonnage tax regime for
Lithuanian shipping
[16] Commission authorises Dutch Province of Gelderland to grant €4.6
million aid for environmental protection and innovation in public transport
[17] Tobacco advertising : Commission takes action against Italy and
Hungary
[18] La Commission nomme sa directrice générale adjointe de la
concurrence
[19] Commission appoints Deputy Director-General for Economic and Financial
Affairs
[II] Other news - Autres nouvelles
[20] Value Added Tax : Commission believes that German and Austrian
requests to apply a generalised reverse charge mechanism cannot be allowed
as special derogations
[21] Commission clears acquisition of Jämtlamell by SCA Forest
[22] €10 million for Niger's children
[23] May 2006 : Euro area external trade deficit €3.2 billion - €15.7
billion deficit for EU25
[24] Autre matériel diffusé
Midday Express of 2006-07-19
Reference: MEX/06/0719
Date: 19/07/2006
EXME06 / 19.7
MIDDAY EXPRESS
News from the Communication Directorate General's midday briefing
Nouvelles du rendez-vous de midi de la Direction Générale Communicationb
19/07/06
[I] Résultats de la Commission de ce jour - Outcome
of today's Commission meeting
[01] Ensemble de mesures pour renforcer la solidarité entre les Etats
membres en matière de gestion des frontières et pour lutter contre
l'immigration clandestine
La Commission européenne a adopté un ensemble de mesures comprenant: 1)Â
une communication sur les priorités en matière de lutte contre
l'immigration clandestine de ressortissants de pays tiers ; 2) une
proposition de règlement établissant un code des visas communautaire ; et
3) une proposition de règlement relatif aux compétences et au financement
d'équipes d'intervention rapide aux frontières, détachées dans un autre
Etat membre pour lui fournir une assistance technique et opérationnelle.
Ce train de mesures intensifie sensiblement les efforts déployés par l'UE
pour renforcer la solidarité entre Etats membres et lutter plus
énergiquement contre l'immigration clandestine. Il répond à la
nécessité de disposer d'une politique commune des visas qui soit efficace
et cohérente au niveau de l'Union, d'arrêter des mesures claires et
ciblées pour combattre le phénomène croissant de l'immigration
clandestine, et d'approfondir la notion de solidarité dans le domaine des
migrations et de l'asile, notamment en matière de gestion des frontières.
[02] Commission adopts guidelines on state aid to support risk capital
investments in SMEs
The European Commission has adopted guidelines to determine when state aid
to support risk capital investment in small and medium-sized enterprises
(SMEs) is compatible with EC Treaty state aid rules (Article 87). The rules
will facilitate access to finance for SMEs in their early stages of
development, particularly where alternative means of funding from financial
markets are lacking (i.e. market failure). Better access to capital will
spur their growth and create more jobs in the EU. The guidelines form part
of the Commission's efforts, announced in the State Aid Action Plan (SAAP -
see IP/05/680 and MEMO/05/195), to encourage Member States to focus state
aid on improving the competitiveness of EU industry, in particular through
innovation, and on creating sustainable jobs, while minimising distortions
of competition. The guidelines include a 'safe harbour' of €1.5 million
investment per SME over 12 months (below which a market failure has been
found to exist), a light assessment procedure for clear cut cases
fulfilling certain conditions and assessment criteria which ensure that
state funding will leverage private investment, target market failures and
be proportionate.
[03] Commission approves proposed acquisition of J.M. Huber's on-site paper
coating mineral business by Omya, subject to conditions
The European Commission has approved under the EU Merger Regulation the
proposed acquisition by Swiss-based Omya of US-based J.M. Huber's on-site
precipitated calcium carbonate (PCC) business, subject to conditions. J.M.
Huber is selling its twelve on-site PCC production facilities which were
purpose built on paper mill sites to provide a ready supply of minerals
used in paper production. Six of these plants are in the European Economic
Area (the rest are in the US, Canada, Brazil and Russia). The case was
originally referred to the Commission by the Finnish Competition Authority
who considered the proposed transaction liable to affect trade between
Member States and significantly affect competition. The Commission's in-
depth investigation revealed that the concentration as initially notified
would have led to the elimination of a potential competitor in the market
for the supply of calcium carbonates for paper coating. To restore
effective competition, Omya and Huber have committed to divest to a
suitable purchaser an on-site PCC plant in Finland together with its PCC
coating technology. The Commission has concluded that the proposed
transaction, as modified, would not significantly impede effective
competition in the EEA or a significant part of it. The Commission's
clearance decision is conditional upon full compliance with the
commitments.
[04] Commission gives positive assessment of Germany's action to correct
excessive deficit by 2007
The European Commission considers that Germany is on track to correct its
excessive deficit by 2007 at the latest, as requested by the Council in
March 2006, provided it fully implements the 2006 and 2007 budgets. No
further steps are needed at present under the excessive deficit procedure,
but further efforts will be necessary beyond 2007 to reach the objective of
a balanced budget. The Commission will continue to monitor the situation
closely.
[05] La Commission approuve l'octroi d'une aide de €100 millions d'euros
à des fonds de capital-investissement du sud de l'Italie
La Commission européenne a autorisé, conformément aux règles du traité
CE applicable aux aides d'Etat (article 87), l'octroi d'un financement
public à hauteur de €100 millions à des fonds de capital-investissement
du sud de l'Italie destinés à des investissements dans des petites et
moyennes entreprises innovantes (PME) principalement au cours des
premières phases de leur croissance. Pour la première fois, la Commission
a en outre approuvé une aide destinée à compenser une partie des coûts
de prospection de nouvelles opérations supportés par les gestionnaires
des fonds. Etant donné que toutes les conditions fixées dans la
communication de la Commission de 2001 sur les aides d'Etat et le capital-
investissement sont remplies, la Commission considère que l'aide n'affecte
pas les conditions des échanges dans une mesure contraire au marché
unique et est donc compatible avec les règles du traité CE en matière
d'aides d'Etat.
[06] Commission endorses €206.1 million aid for cluster of nine
electronics production facilities in Kobierzyce (Poland)
The European Commission has endorsed, under the EC Treaty's rules on state
aid, €206.1 million of aid which Poland intends to grant to eight Korean-
based companies to set up a cluster of nine electronics projects in
Kobierzyce, Poland (Lower Silesia). The total eligible costs of the nine
investment projects is €711.1 million.
[07] Commission prohibits public funding for additional broadband network
in Appingedam (Netherlands)
The European Commission has decided to prohibit, under EC Treaty state aid
rules, public funding for the planned construction of a fibre access
network in the Dutch town of Appingedam. The project concerns an area
already served by broadband networks and the Commission considered that the
aid was not necessary to remedy either a market failure or unaffordable
prices for broadband services. The Commission considered that the planned
aid would distort competition and harm private investment to an extent
which would outweigh the positive effects of the project. This is the first
time that the Commission has declared a subsidy for a broadband network
incompatible with the state aid rules.
[08] La Commission autorise le régime de soutien de l'Agence française de
l'innovation industrielle en faveur des programmes mobilisateurs
La Commission européenne a décidé de ne pas soulever d'objection en
vertu des règles CE sur les aides d'Etat à l'égard du régime d'aides mis
en place par la France et géré par l'Agence de l'innovation industrielle.
Ce régime en faveur des programmes mobilisateurs pour l'innovation
industrielle est doté d'un budget annuel d'€1 milliard. La Commission a
estimé qu'il remplit les conditions définies dans l'encadrement des aides
d'Etat à la recherche et au développement. Les aides d'un montant
supérieur à €5 millions prévues pour le financement de programmes de
plus de €25 millions devront néanmoins être notifiées pour
examen individuel à la Commission avant leur octroi.
[09] Commission demands repeal of Luxembourg's preferential tax regime for
financial holdings
The European Commission has decided that the preferential tax regime in
favour of Luxembourg's Exempt, Milliardaire and Financial Holdings of 1929
violates EC Treaty state aid rules (Article 87). The scheme is granted
under a Luxembourg law from 1929, predating the EC Treaty, and therefore
constituting existing aid. Following an in-depth investigation opened in
February (see IP/06/132) and a preliminary four-year review, the Commission
has concluded that the scheme grants unjustified tax advantages to
providers of certain financial services who set up holding structures in
Luxembourg. It distorts competition and trade by altering the level playing
field between financial undertakings and induces them to create dedicated
structures in Luxembourg to reduce their current tax liabilities.
Modifications introduced by a law of 21 June 2005 narrowed the scope of the
scheme but the regime still constitutes state aid as the tax advantages
remain unchanged. The Commission decision requires the scheme to be
repealed by the end of 2006, while its effects for the existing holdings
must be definitively eliminated by the end of 2010 (allowing the existing
beneficiaries to exit from the existing holding structures without
incurring tax penalties). As the scheme is existing aid, the Commission's
decision is only for the future and the beneficiaries need not repay aid
received until its final elimination.
[10] VAT : Commission asks the Czech Republic, Hungary, Malta, Poland and
Portugal for information on the application of reduced VAT rates to
children's diapers
The European Commission has decided to send requests for information in the
form of letters of formal notice to several Member States about their
application of reduced VAT rates to children's diapers. The Commission
believes that reduced rates on these goods do not comply with the Sixth VAT
Directive (77/388/EEC), which was revised for the last time in February
2006. However, the Commission fully supports social and family friendly
policies, as part of the EU's response to the pressing challenge of
demographic ageing. For these reasons the Commission will in parallel take
the necessary steps in order to create a legal basis for the application of
reduced VAT rates to children's diapers. The Member States involved are
asked to reply within two months to the letters of formal notice, which are
the first step of the infringement procedure laid down in Article 226 of
the EC Treaty. Their arguments will be taken into account in the report on
the application of reduced VAT rates which the Commission will present to
the ECOFIN Council in 2007. On the basis of this report, the Commission
will draft a proposal in order to amend Annex H of the Sixth VAT directive
as appropriate.
[11] La Commission traduit la France devant la Cour de justice pour non-
récupération d'une aide d'Etat illégale
La Commission européenne a décidé de saisir la Cour de justice Ã
l'encontre de la France en application des règles du traité CE relatives
aux aides d'Etat pour non-respect d'une décision de la Commission du 2
août 2004 concernant France Télécom. Cette décision avait conclu que le
traitement préférentiel accordé à France Télécom par le régime
français de la taxe professionnelle était incompatible avec le marché
unique et elle avait ordonné à la France de récupérer l'aide déjÃ
accordée auprès du bénéficiaire. Les autorités françaises n'ont
toutefois encore pris aucune mesure concrète et effective pour récupérer
l'aide.
[12] Commission requests Italy to comply with EU rules on electronic
communications
The European Commission has decided to send a letter of formal notice to
Italy requesting information about its broadcasting legislation's
compatibility with EU rules on competition in the markets for electronic
communications networks and services and the New EU Regulatory Framework
for Electronic Communications. The Commission is concerned that the Italian
legislation fails to fulfil the obligations established by EU competition
rules insofar as it introduces unjustified restrictions to the provision of
broadcasting transmission services and attributes unjustified advantages to
existing analogue operators. A letter of formal notice is the first step in
the infringement procedure under Article 226 of the EC Treaty. Italy has
now two months to respond to the concerns expressed by the Commission.
[13] Commission authorises Germany to grant €2.5 billion aid to its coal
industry for the year 2006
The European Commission has decided not to raise any objections to the
€2.5 billion aid package which Germany is proposing to grant to its coal
industry for the year 2006. The aid is compatible with the proper
functioning of the internal market.
[14] Libre circulation des capitaux : la Commission clôt la procédure
engagée contre l'Espagne au sujet de la loi de privatisation
La Commission européenne a décidé de clore la procédure d'infraction
engagée contre l'Espagne au vu des mesures prises pour se conformer Ã
l'arrêt de la Cour de justice européenne du 13 mai 2003. L'arrêt avait
établi que, en maintenant en vigueur certaines dispositions de la loi
5/1995 sur la privatisation, ainsi que les décrets royaux concernant
Repsol SA, Telefónica de España SA, Telefónica Servicios Móviles SA,
Argentaria, Tabacalera SA, et Endesa SA, dans la mesure où ils instaurent
un régime d'autorisation administrative préalable, l'Espagne avait
manqué aux obligations qui lui incombent en vertu des dispositions du
traité CE relatives à la libre circulation des capitaux (article 56).
Cette décision fait suite à la notification par l'Espagne des mesures
prises le 26 mai 2006 afin de se conformer à l'arrêt de la Cour.
[15] Maritime transport : Commission approves a tonnage tax regime for
Lithuanian shipping
The European Commission has approved the introduction of a tonnage tax
system whereby tax liable entities in Lithuania engaged in international
transportation by ship or a directly related activity can change the tax
base for their operating profits. Companies fulfilling certain criteria may
opt for a "tonnage tax" for the taxation of their profits from
international maritime traffic. The tax will be calculated according to the
net tonnage of their fleet, instead of the normally applicable corporation
tax. The authorised scheme will run from January 2007 for 10 years and is
expected to cost up to €0.6 million a year.
[16] Commission authorises Dutch Province of Gelderland to grant €4.6
million aid for environmental protection and innovation in public transport
The European Commission has decided not to raise any objections to the
€4.6 million aid which the Dutch Province of Gelderland plans to allocate
to initiatives which explore new ways for protecting the environment and
making public transport more efficient and more appealing to the users.
[17] Tobacco advertising : Commission takes action against Italy and
Hungary
Today the European Commission sent "reasoned opinions" to Hungary and Italy
for incorrect transposition into national law of Directive 2003/33/EC of 26
May 2003 on advertising and sponsorship of tobacco products. These Member
States allow exemptions or introduce derogations from the sponsorship ban
which is a core aspect of the Directive. They had already received a
"letter of formal notice" in April 2006. They now have two months to comply,
otherwise the Commission will resort to the European Court of Justice (ECJ)
to declare that those Member States fail to fulfil their obligations under
the Directive. "The Commission is clear that there can be no derogations
from the Directive’s ban on tobacco sponsorship for cross-border events,
whether it’s for Formula One or for other events", said Health and
Consumer Protection Commissioner Markos Kyprianou. The Commission is also
considering the replies to letters of formal notice sent to the Czech
Republic and Spain in April. On 28 June 2006 the Commission decided to
refer Germany to the European Court of Justice for non-transposition of the
same Directive. For further information, please visit:
<a href="http://europa.eu.int/comm/health/ph_determinants/life_style/Tobacco/tobacco_en.htm">http://europa.eu.int/comm/health/ph_determinants/life_style/Tobacco/tobacco_en.htm
[18] La Commission nomme sa directrice générale adjointe de la
concurrence
Mme Nadia Calviño a été nommée directrice générale adjointe de la
direction générale de la concurrence, chargée des concentrations. Elle
sera responsable de l'élaboration et de la formulation des politiques de
l'UE/Commission dans le domaine des concentrations.
[19] Commission appoints Deputy Director-General for Economic and Financial
Affairs
The European Commission has appointed Marco Buti Deputy Director-General of
the Directorate-General for Economic and Financial Affairs. Mr Buti will be
in charge of economic studies and research, the economies of the Member
States, structural reforms and the Lisbon Strategy as well as economic
evaluation. He will ensure the coordination of the macroeconomic policy
surveillance and the implementation of structural reforms under the Lisbon
strategy.
[II] Other news - Autres nouvelles
[20] Value Added Tax : Commission believes that German and Austrian
requests to apply a generalised reverse charge mechanism cannot be allowed
as special derogations
The European Commission has objected to the derogation requests made in
accordance with Article 27 of the Sixth VAT Directive by Austria and
Germany for a general application of the reverse charge mechanism. Article
27 provides for derogation from the harmonised general rules of VAT if
those derogations are targeted, restricted and proportionate. The requests
were made in the context of a desire by Austria and Germany to tackle the
phenomenon of businesses disappearing without paying their VAT liabilities.
The only way to introduce very broad measures to change the VAT system
would be by amending the Sixth VAT Directive under Article 93 of the EC
Treaty (which requires consultation of the European Parliament and the
European Economic and Social Committee).
[21] Commission clears acquisition of Jämtlamell by SCA Forest
The European Commission has granted clearance under the EU Merger
Regulation to the acquisition of sole control of Jämtlamell Industri AB
(Jämtlamell) of Sweden by SCA Forest Products AB (SCA Forest), also of
Sweden, belonging to the group Svenska Cellulosa AB SCA (publ) (SCA). SCA
Forest produces and sells publication papers, pulp, sawn timber and forest
based biofuel. Jämtlamell produces and sells sawn timber and forest based
biofuel. The operation was examined under the simplified merger review
procedure.
[22] €10 million for Niger's children
The European Commission has allocated an extra €10 million in
humanitarian aid for vulnerable children in Niger. The aim is to reduce
child malnutrition and mortality. Since the beginning of this year, more
than 150,000 children in Niger have been admitted to nutritional centres,
many of which are supported by the Commission's aid. The aid is also being
used to improve access to primary health care for young children and their
mothers, and to help the poorest families regain their food self-
sufficiency, for example through distributing seeds to families who visit
nutrition centres. A recent culling of chickens due to an outbreak of avian
flu has contributed to the food shortage. The €10 million in aid comes on
top of €8.3 million of humanitarian assistance the Commission has
granted to Niger since the start of the food crisis in 2005.
[23] May 2006 : Euro area external trade deficit €3.2 billion - €15.7
billion deficit for EU25
The first estimate for the euro area trade balance with the rest of the
world in May 2006 gave a €3.2 billionn deficit against a 2.3 billion
surplus in May 2005. The April 2006 balance was -€1.9 billion, compared
with +1.6 billion in April 2005. In May 2006 compared with April 2006,
exports, seasonally adjusted, rose by 1.2% and imports by 1.4%. The first
estimate for May 2006 extra-EU25 trade was a €15.7 billion deficit,
compared with -7.3 billion in May 2005. In April 20062, the balance was -
€14.5 billion, compared with -9.4 billion in April 2005. In May 2006
compared with April 2006, exports, seasonally adjusted, rose by 0.5% and
imports by 1.8%. These data are released by Eurostat.
[24] Autre matériel diffusé
EU policy to fight illegal immigration
Rapid reaction teams of border guards
Community code on short-stay visas
Guidelines on state aid to promote risk capital investment in SMEs –
frequently asked questions
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