A brief history of the EU Pauli Leimio, CEO United Magazines Ltd

A brief history of the EUPauli Leimio, CEO

United Magazines Ltd

Milestones of the EU19

50

Sch

uman

Dec

lara

tion

1951

Eur

opea

n C

oal a

nd S

teel

Com

mun

ity

(Tre

aty

of P

aris

)

1957

E

urop

ean

Eco

nom

ic C

omm

unity

&

Eur

atom

(Tre

aty

of R

ome)

1960

Th

e E

urop

ean

Free

Tra

de A

ssoc

iatio

n (E

FTA

)

1973

Fi

rst E

nlar

gem

ent o

f Eur

opea

n C

omm

unity

(UK

, Den

mar

k &

Irel

and)

1981

S

econ

d E

nlar

gem

ent (

Gre

ece)

1986

Th

ird E

nlar

gem

ent (

Spa

in &

Por

tuga

l)

1986

S

ingl

e E

urop

ean

Act

1989

Fa

ll of

the

Ber

lin W

all

1992

Tr

eaty

on

Eur

opea

n U

nion

(Maa

stric

ht) s

igne

d

1995

Fo

urth

Enl

arge

men

t (A

ustri

a, S

wed

en, F

inla

nd)

1997

Tr

eaty

of A

mst

erda

m s

igne

d

1999

E

cono

mic

and

Mon

etar

y U

nion

beg

ins

2002

In

trodu

ctio

n of

EU

RO

fina

lised

Coming European challenges

Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic, Slovenia

Coming challenges• globalisation• environmental safety• safe food• consumer rights• social differences

2004 Proposed Fifth enlargement- ten new members to be admitted

Decision making processwithin the EU

Pauli Leimio, CEO

United Magazines Ltd

Three levels of power-sharing

The European Commission plays a role similar to national political parties only organ that is allowed to initiate draft

legislation

The European Parliament plays a role similar to national parliaments can challenge and amend the initial proposal

The Council of Ministers shares the same powers as the European

Parliament

Shared powers

in co-decision

Individual Member States retain total sovereignty over

Education Health Culture Tax Internal security Foreign affairs

The European Commission

Drafts legal proposals A Directive

must be transposed into national legislation and passed at national level by the national parliament

A Regulation

has a direct effect at national levelleaves no flexibility for national

circumstances

From idea into Commission proposal

Consulting interested parties (lobbying)

1 – 3 years

Legal proposal draft

Discussion and approvalby relevant Commission

services(Directorate-Generals)

Adoption by College of Commissioners

Formal Commissionproposal

European Parliament Council of Ministers

Translation

Basic notions

Green Paper

• Commission Green Papers are intended to stimulate debate and launch a process of consultation at European level on a particular topic

• May then lead to the publication of a

White Paper

• Documents containing proposals for Community action in a specific area

The European Parliament

626 Members (MEPs) directly elected by the citizens of each Member State

Made up of policy-based Committees with overall responsibility for coordinating the parliament’s resolution on a proposal One MEP appointed as Rapporteur

“Advisory” Committees

From first text into First Parliament Reading

Discussion atCommittee level

3-6 months

time

Adoption

Vote in PlenarySession

Termination of FirstReading in Parliament

The Council of Ministers

Consists of Working Groups

Discusses proposals simultaneously with the Parliament

From Parliament Report into Directive

Report adopted by the Parliament

Translation

Comparison with original text from

Commission with the Parliament’s report

Adopts ”compromise common position”

(2-3 years)

Translation

Second Reading inParliament

Directive adopted

The Impact of the European Union

on Publishing in EuropeFrancisco Pinto Balsemao

President and CEO

Impresa, Portugal

What is the European Publishers Council?

Senior group of publishers with interests in common

Express role of reviewing and taking action on EU legislation

Securing the future viability of private media companies

Safeguarding the freedom of expression

Welcome to the European Constitution

The Convention and the “future of Europe”

Greater visibility and transparency More legal certainty and efficiency in

rules and decision-making

Competition policy – highly responsive to fast changing business environments

Media mergers considered from 3 angles:• ensuring open markets / preventing

foreclosure• promoting access to quality content• balancing different interests at stake

Media concentration is not regarded as anti-competitive

THE POSITIVE IMPACT OF THE EU

1.Competition, Mergers, Acquisitions

Frequent calls from the European Parliament for EU-wide legislation to restrict media ownership, particularly cross-media ownership

MEPs don’t accept that concentration is often a pre-requisite to diversification, expansion and…

…ultimately the only way of protecting our own future viability

Many positive aspects to cross-media ownership – eg. new digital channels, internet content

No technical barriers to entry, not even in broadcast media - no spectrum scarcity

THE NEGATIVE IMPACT OF THE EU

1. Competition, Mergers, Acquisitions

Systematic anti-competitive behaviour by publicly funded media hurts the private sector as a whole

Many outstanding complaints from TV and publishing companies against state funded broadcasters, including their activities in the online market

Commission failing in its duty to deal with the complaints and to investigate anti competitive practices

Competition is for all!


1. Competition, Mergers, Acquisitions


Limited powers of the Commission to regulate media content

No independent mandate to shape the area of the media

Content regulation is subject to test of proportionality

Can only act in matters necessary for the internal market

2. Content


Directive designed to provide transparency in financial markets and to prevent insider trading

If left untouched, would have introduced “content regulation” for journalists reporting on financial markets

Exposed journalists to criminal prosecution Replaced tried and tested editorial self-

regulation with inflexible laws

2. Content

Council of Europe produces Conventions and Recommendations for 45 countries

A new Recommendation to give access to journalists and broadcasters to major events

For every reporter barred, dozens of readers or viewers are denied access to news and what should be public information

Need to reconcile our views on copyright with freedom of expression

THE POSITIVE IMPACT OF THE COUNCIL OF EUROPE

2. Content


3-Advertising

Constant attempts to limit our freedom to carry advertising

Total ban on tobacco advertising Possible restrictions coming on alcohol

and food advertising Rules to determine when advertising is

fair, or unfair Is advertising to children fair? Or unfair?


Not all forays into marketing practices are negative!

New rules to facilitate cross border sales promotions, prize draws, competitions

Generally supported by publishers

4. Marketing, Consumer Protection


New regulations creating uncertainty in areas including

Defamation Invasions of privacy

Publishers face claims e.g. for libel in different countries…

Consumers already have the right to go to Court in their country of residence

Publishers should have the right to have cases heard according to the laws of the country of publication

4. Defamation, invasions of privacy


Zero and/or reduced rates of VAT on the printed press

Proposals expected later in the year Unlikely to undermine a Member State’s

right to continue with existing zero or reduced rates

MEP’s generally supportive

5. VAT


6. Data protection

Data Protection Directive Exemption for ‘journalistic purposes’ Currently under review Need to fight abuses of data protection

‘rights’ which undermine fundamental rights of publishers


Data protection in electronic communications

Rules on the use of cookies Stringent ‘opt-in’ requirements for email

marketing and Directory entries High cost of compliance for industry Dubious consumer benefit

6. Data protection


Directive designed to increase transparency and user-friendliness of public sector information

Benefits to business and tax payers alike Commission and Parliament support these

objectives Governments resist ! Some changes are needed

7. Public sector information


8. Copyright

Increasing copyright protection in the digital age

Modernising collective management of rights

Digital rights management


8. Copyright

The EU should recognise that the ownership of rights is as important as their harmonization

Profound and mixed impactof the European Union

The EU affects every aspect of our business lives

We must not lose sight of the fundamental right to the freedom of expression

No EU regulation should hinder the future viability of Europe’s media companies without which that freedom falls

The Impact of the European Union

on Publishing in EuropeFrancisco Pinto Balsemao

President and CEO

Impresa, Portugal

HOW TO ACT WHEN YOUR ORGANIZATIONNEEDS GUIDANCE IN THE EU ISSUES?

Pauli Leimio, CEOUnited Magazines Ltd

FEDERATION OF EUROPEAN PUBLISHERS

EUROPEAN NEWSPAPER PUBLISHERS’ ASSOCIATION

EUROPEAN ASSOCIATIONOF DIRECTORY AND

DATABASE PUBLISHERS

EADP

FEDERATION OF EUROPEAN

MAGAZINE PUBLISHERS

Federation of europeanmagazine publishers

7,000 publishers 50,000 magazine titles 80 % European adults reached € 40 billion revenues 20 billion copies sold annually 200,000 EU citizens employed

FAEP’S MISSION

To ensure the long-term survival and prosperity

of a diverse and economically successfull magazine publishing

industry within the EU

MAGAZINE TRENDS

Branch is consolidating and fragmenting.

Target groups are getting smaller.

Number of magazines is increasing.

Publishers are approaching the heart of

knowledge society.

Thank you