EU UpdateEU Update

Dr Leonard MizziDr Leonard MizziDirector GeneralDirector General

Malta Business BureauMalta Business BureauBrusselsBrussels

WHAT IS THE MALTA BUSINESS WHAT IS THE MALTA BUSINESS BUREAU?BUREAU?

INITIALLY OFFICE OF MALTA CHAMBER OF INITIALLY OFFICE OF MALTA CHAMBER OF COMMERCE AND ENTEPRISE AND MALTA COMMERCE AND ENTEPRISE AND MALTA FEDERATION OF INDUSTRY IN BRUSSELSFEDERATION OF INDUSTRY IN BRUSSELS

SET UP IN OCTOBER 1996SET UP IN OCTOBER 1996 INCLUSION OF MALTA HOTELS AND INCLUSION OF MALTA HOTELS AND

RESTAURANTS ASSOCIATION IN 2004RESTAURANTS ASSOCIATION IN 2004 POSSIBLE INCLUSION IN 2006 – MEA AND POSSIBLE INCLUSION IN 2006 – MEA AND

GRTUGRTU

MALTA BUSINESS BUREAU-MALTA BUSINESS BUREAU-contdcontd

1996-1998 – MALTA’S EU 1996-1998 – MALTA’S EU APPLICATION FROZENAPPLICATION FROZEN

1998-2002 – ACCESSION 1998-2002 – ACCESSION NEGOTIATIONSNEGOTIATIONS

2002-3 – EU REFERENDUM2002-3 – EU REFERENDUM 2004-5 – MALTA’S ACCESSION AND 2004-5 – MALTA’S ACCESSION AND

POST-ACCESSION PHASEPOST-ACCESSION PHASE 6 MAY 2005 CONFERENCE –QUO 6 MAY 2005 CONFERENCE –QUO

VADIS?VADIS?

MALTA BUSINESS BUREAU - MALTA BUSINESS BUREAU - contdcontd

REPRESENTATION OFFICE TO UNICE AND REPRESENTATION OFFICE TO UNICE AND EUROCHAMBRES AND SINCE 2005 TO EUROCHAMBRES AND SINCE 2005 TO HOTRECHOTREC

EU LOBBYING AND ADVOCACYEU LOBBYING AND ADVOCACY MONTHLY NEWSLETTERS - 2MONTHLY NEWSLETTERS - 2 ORGANISATION OF FAMILIARISATION ORGANISATION OF FAMILIARISATION

VISITS TO BRUSSELSVISITS TO BRUSSELS EU INFORMATION MEETINGS IN MALTA - 15 EU INFORMATION MEETINGS IN MALTA - 15

per annumper annum POLICY POSITIONS - 3-5 per annumPOLICY POSITIONS - 3-5 per annum WEBSITE AND MEDIAWEBSITE AND MEDIA

ISSUES OF TOPICAL INTEREST ISSUES OF TOPICAL INTEREST AT A EU LEVEL TODAYAT A EU LEVEL TODAY

EU CONSTITUTIONEU CONSTITUTION FUTURE FINANCIAL PERSPECTIVESFUTURE FINANCIAL PERSPECTIVES A YEAR SINCE EU ENLARGEMENT _ WHERE A YEAR SINCE EU ENLARGEMENT _ WHERE

IS THE EU HEADING? WHAT ARE THE IS THE EU HEADING? WHAT ARE THE LIMITS OF THE EU?LIMITS OF THE EU?Romania, Bulgaria, Turkey, Croatia, Other Romania, Bulgaria, Turkey, Croatia, Other Balkan countries, Ukraine?Balkan countries, Ukraine?

SERVICES DIRECTIVESERVICES DIRECTIVE NEW COMMISSION AND NEW EUROPEAN NEW COMMISSION AND NEW EUROPEAN

PARLIAMENT - INTERPLAY OF ROLES?PARLIAMENT - INTERPLAY OF ROLES?

OTHER TOPICS -contdOTHER TOPICS -contd

RENEWED LISBON STRATEGYRENEWED LISBON STRATEGY EU-US RELATIONS – TRANS-ATLANTIC EU-US RELATIONS – TRANS-ATLANTIC

BUSINESS dialogueBUSINESS dialogue HK MINISTERIAL CONFERENCE IN DEC HK MINISTERIAL CONFERENCE IN DEC

2005 – WTO2005 – WTO EURO-MEDITERRANEAN AND NEW EURO-MEDITERRANEAN AND NEW

NEIGHBOURHOOD POLICYNEIGHBOURHOOD POLICY HOW TO DEAL WITH GLOBALISATION? IN HOW TO DEAL WITH GLOBALISATION? IN

PARTICULAR CHINA AND INDIA?PARTICULAR CHINA AND INDIA?

SOCIAL AFFAIRS FRONTSOCIAL AFFAIRS FRONT WORKING TIME DIRECTIVE – OPT OUT AND WORKING TIME DIRECTIVE – OPT OUT AND

REFERENCE PERIOD TO CALCULATE MAXIMUM REFERENCE PERIOD TO CALCULATE MAXIMUM WEEKLY WORKING WEEKWEEKLY WORKING WEEK

INTEGRATED GUIDELINES – EMPLOYMENT INTEGRATED GUIDELINES – EMPLOYMENT POLICIES; NEW FORMS OF WORK ORGANISATION; POLICIES; NEW FORMS OF WORK ORGANISATION; flexi-securityflexi-security

EDUCATION AND TRAINING DUE TO EDUCATION AND TRAINING DUE TO RESTRUCTURINGRESTRUCTURING

ECONOMIC MIGRATION AND THE CHALLENGES OF ECONOMIC MIGRATION AND THE CHALLENGES OF DEMOGRAPHICSDEMOGRAPHICS

GENDER EQUALITYGENDER EQUALITY SOCIAL DIALOGUESOCIAL DIALOGUE

INDUSTRIAL AFFAIRSINDUSTRIAL AFFAIRS

REACH (chemicals policy)REACH (chemicals policy) CLIMATE CHANGECLIMATE CHANGE CII – COMPUTER IMPLEMENTED CII – COMPUTER IMPLEMENTED

INVENTIONSINVENTIONS RENEWABLE ENERGYRENEWABLE ENERGY TRANSPORT POLICY –TENs; PORT TRANSPORT POLICY –TENs; PORT

SERVICES; SERVICES; STATE AIDS – low cost airlines and STATE AIDS – low cost airlines and

Reform of State aidReform of State aid

ECONOMIC AND FINANCIAL ECONOMIC AND FINANCIAL AFFAIRSAFFAIRS

REFORM OF THE STABILITY AND GROWTH PACTREFORM OF THE STABILITY AND GROWTH PACT TAXATION – should one move to a harmonised tax TAXATION – should one move to a harmonised tax

system? VAT/Corporate Taxsystem? VAT/Corporate Tax ROLE OF THE EUROPEAN CENTRAL BANKROLE OF THE EUROPEAN CENTRAL BANK THE EURO (AND THE US DOLLAR)THE EURO (AND THE US DOLLAR) FINANCING OF DEVELOPMENT AID –levy on air FINANCING OF DEVELOPMENT AID –levy on air

tickets (how to fund development aid?)tickets (how to fund development aid?) FINANCIAL SERVICESFINANCIAL SERVICES SAVINGS TAX DIRECTIVESAVINGS TAX DIRECTIVE

RENEWED LISBON STRATEGYRENEWED LISBON STRATEGY

WHAT IS THE LISBON STRATEGY?WHAT IS THE LISBON STRATEGY? WHY IS THERE THE NEED FOR A WHY IS THERE THE NEED FOR A

RENEWED STRATEGY?RENEWED STRATEGY? WHAT WAS DECIDED IN MARCH WHAT WAS DECIDED IN MARCH

2005?2005? INTEGRATED GUIDELINES APRIL 2005INTEGRATED GUIDELINES APRIL 2005 NATIONAL REFORM PROGRAMMES - NATIONAL REFORM PROGRAMMES -

AUTUMN 2005AUTUMN 2005

MARCH 2005 CONCLUSIONSMARCH 2005 CONCLUSIONS

REFOCUS PRIORITIES ON GROWTH REFOCUS PRIORITIES ON GROWTH AND EMPLOYMENTAND EMPLOYMENT

THE THREE STRANDS OF THE THE THREE STRANDS OF THE RELAUNCH :RELAUNCH :

• KNOWLEDGE AND INNOVATIONKNOWLEDGE AND INNOVATION• AN ATTRACTIVE AREA IN WHICH TO AN ATTRACTIVE AREA IN WHICH TO

INVEST AND WORKINVEST AND WORK• SOCIAL COHESIONSOCIAL COHESION

LISBON STRATEGYLISBON STRATEGYINTEGRATED GUIDELINESINTEGRATED GUIDELINES

MACROECONOMIC GUIDELINESMACROECONOMIC GUIDELINES

• Secure economic stabilitySecure economic stability• Safeguard economic sustainabilitySafeguard economic sustainability• Promote efficient allocation of resourcesPromote efficient allocation of resources• Cohesion – Macroeconomic and structural Cohesion – Macroeconomic and structural

policiespolicies• WAGES/ProductivityWAGES/Productivity• Dynamic and well-functioning EMUDynamic and well-functioning EMU

Microeconomic guidelinesMicroeconomic guidelines EXTEND AND DEEPEN INTERNAL MARKET – IS THE INTERNAL EXTEND AND DEEPEN INTERNAL MARKET – IS THE INTERNAL

MARKET PROJECT COMPLETED? Goods yes, services noMARKET PROJECT COMPLETED? Goods yes, services no ENSURE OPEN AND COMPETITIVE MARKETS – utilities (gas and ENSURE OPEN AND COMPETITIVE MARKETS – utilities (gas and

electricity – telecoms yes)electricity – telecoms yes) CREATE A MORE ATTRACTIVE BUSINESS ENVIRONMENT – better CREATE A MORE ATTRACTIVE BUSINESS ENVIRONMENT – better

regulation/administrative simplification/Charter for Small regulation/administrative simplification/Charter for Small EnterpriseEnterprise

ENTREPRENEURIAL CULTURE:RISK TAKING (EU-US difference) – ENTREPRENEURIAL CULTURE:RISK TAKING (EU-US difference) – Venture capitalVenture capital

CROSS BORDER PROJECTS AND TRANS-EUROPEAN NETWORKSCROSS BORDER PROJECTS AND TRANS-EUROPEAN NETWORKS INCREASE AND IMPROVE INVESTMENT IN R&DINCREASE AND IMPROVE INVESTMENT IN R&D SUSTAINABLE DEVELOPMENT STRATEGYSUSTAINABLE DEVELOPMENT STRATEGY STRONG INDUSTRIAL BASE – DEBATE ON DE-INDUSTRIALISATION STRONG INDUSTRIAL BASE – DEBATE ON DE-INDUSTRIALISATION

AND SECTOR APPROACH TO CHAMPIONSAND SECTOR APPROACH TO CHAMPIONS

EMPLOYMENT GUIDELINESEMPLOYMENT GUIDELINES

FULL EMPLOYMENTFULL EMPLOYMENT LIFECYCLE APPROACH TO WORKLIFECYCLE APPROACH TO WORK INCLUSIVE LABOUR MARKET, INCLUSIVE LABOUR MARKET,

ESPECIALLY FOR MARGINALISED ESPECIALLY FOR MARGINALISED GROUPSGROUPS

INVESTMENT IN HUMAN CAPITALINVESTMENT IN HUMAN CAPITAL ADAPTATION OF EDUCATION AND ADAPTATION OF EDUCATION AND

TRAINING SYSTEMSTRAINING SYSTEMS

ECONOMIC GOVERNANCEECONOMIC GOVERNANCE

NEW PARTNERSHIP WITH MEMBER STATESNEW PARTNERSHIP WITH MEMBER STATES SIMPLIFICATION IN TERMS OF POLICY SIMPLIFICATION IN TERMS OF POLICY

SETTING AND REPORTING WITHIN A SETTING AND REPORTING WITHIN A SINGLE NATIONAL PROGRAMMESINGLE NATIONAL PROGRAMME

THREE YEAR CYCLE – 2005-2008THREE YEAR CYCLE – 2005-2008 ECONOMIC, SOCIAL AND ENVIRONMENTAL ECONOMIC, SOCIAL AND ENVIRONMENTAL

- EQUAL RELEVANCE?- EQUAL RELEVANCE?

Economic Governance - contdEconomic Governance - contd MEMBER STATES SHOULD WORK ON A FORWARD MEMBER STATES SHOULD WORK ON A FORWARD

LOOKING AGENDA – a 3 year strategy TO DELIVER LOOKING AGENDA – a 3 year strategy TO DELIVER GROWTH AND JOBSGROWTH AND JOBS

OWN NEEDS AND SPECIFIC SITUATION ANALYSISOWN NEEDS AND SPECIFIC SITUATION ANALYSIS LINK TARGETS WITH BUDGETARY RESOURCES – LINK TARGETS WITH BUDGETARY RESOURCES –

FUTURE FINANCIAL PERSPECTIVES 2007-2013FUTURE FINANCIAL PERSPECTIVES 2007-2013 ROLE OF SOCIAL PARTNERS AND NATIONAL ROLE OF SOCIAL PARTNERS AND NATIONAL

PARLIAMENTPARLIAMENT ANNUAL PROGRESS REPORT – END JANUARY 2006ANNUAL PROGRESS REPORT – END JANUARY 2006 EUROPEAN COUNCIL MARCH 2006EUROPEAN COUNCIL MARCH 2006

ECONOMIC GOVERNANCE - ECONOMIC GOVERNANCE - contdcontd

FOSTER PUBLIC DEBATE ON THE FOSTER PUBLIC DEBATE ON THE IMPLEMENTATION OF THE LISBON IMPLEMENTATION OF THE LISBON STRATEGYSTRATEGY

• RELEVANCE FOR ECONOMYRELEVANCE FOR ECONOMY• RELEVANCE FOR REGIONSRELEVANCE FOR REGIONS• RELEVANCE FOR FIRMSRELEVANCE FOR FIRMS• RELEVANCE FOR SOCIAL PARTNERSRELEVANCE FOR SOCIAL PARTNERS• CHAMBERS OF COMMERCECHAMBERS OF COMMERCE

EU CONSTITUTION – as at June EU CONSTITUTION – as at June 6th6th

RATIFIED BY 10 MEMBER STATESRATIFIED BY 10 MEMBER STATES REJECTED BY 2 MEMBER STATESREJECTED BY 2 MEMBER STATES STILL TO BE RATIFIED BY 13 STATESSTILL TO BE RATIFIED BY 13 STATES QUO VADIS?QUO VADIS? DECISION TO BE TAKEN BY HEADS OF DECISION TO BE TAKEN BY HEADS OF

STATE AND GOVERNMENT THIS WEEK AT STATE AND GOVERNMENT THIS WEEK AT EUROPEAN COUNCILEUROPEAN COUNCIL

VARIOUS OPTIONS POSSIBLEVARIOUS OPTIONS POSSIBLE WHAT IF PROCESS IS HALTED?WHAT IF PROCESS IS HALTED?

Key Sections of EU ConstitutionKey Sections of EU Constitution TITLE I - DEFINITION AND OBJECTIVES OF THE UNION TITLE I - DEFINITION AND OBJECTIVES OF THE UNION TITLE II - FUNDAMENTAL RIGHTS AND CITIZENSHIP OF THE UNION TITLE II - FUNDAMENTAL RIGHTS AND CITIZENSHIP OF THE UNION TITLE III - UNION COMPETENCES TITLE III - UNION COMPETENCES TITLE IV - THE UNION'S INSTITUTIONS AND BODIES TITLE IV - THE UNION'S INSTITUTIONS AND BODIES CHAPTER I - THE INSTITUTIONAL FRAMEWORK CHAPTER I - THE INSTITUTIONAL FRAMEWORK CHAPTER II - THE OTHER UNION INSTITUTIONS AND CHAPTER II - THE OTHER UNION INSTITUTIONS AND

ADVISORY BODIES ADVISORY BODIES TITLE V - EXERCISE OF UNION COMPETENCE TITLE V - EXERCISE OF UNION COMPETENCE CHAPTER I - COMMON PROVISIONS CHAPTER I - COMMON PROVISIONS CHAPTER II - SPECIFIC PROVISIONS CHAPTER II - SPECIFIC PROVISIONS CHAPTER III - ENHANCED COOPERATION CHAPTER III - ENHANCED COOPERATION TITLE VI - THE DEMOCRATIC LIFE OF THE UNION TITLE VI - THE DEMOCRATIC LIFE OF THE UNION TITLE VII - THE UNION'S FINANCES TITLE VII - THE UNION'S FINANCES TITLE VIII - THE UNION AND ITS NEIGHBOURS TITLE VIII - THE UNION AND ITS NEIGHBOURS TITLE IX - UNION MEMBERSHIP TITLE IX - UNION MEMBERSHIP

MAIN PROVISIONSMAIN PROVISIONS

CHARTER FOR FUNDAMENTAL RIGHTSCHARTER FOR FUNDAMENTAL RIGHTS CLARIFICATION OF ROLES OF PARLIAMENT, CLARIFICATION OF ROLES OF PARLIAMENT,

COUNCIL AND COMMISSIONCOUNCIL AND COMMISSION COMMISSION – LEGISLATIVE INITIATIVE, COMMISSION – LEGISLATIVE INITIATIVE,

EXECUTIVE FUNCTION AND EXECUTIVE FUNCTION AND REPRESENTATION ABROADREPRESENTATION ABROAD

CO-DECISION -95 per cent of all laws CO-DECISION -95 per cent of all laws (Parliament and Council)(Parliament and Council)

Union Minister of Foreign AffairsUnion Minister of Foreign Affairs

MAIN PROVISIONS - contdMAIN PROVISIONS - contd MAXIMUM NO OF SEATS IN EP – 750 from current 732MAXIMUM NO OF SEATS IN EP – 750 from current 732 MINIMUM – 6 and MAXIMUM – 96 (to be decided before European MINIMUM – 6 and MAXIMUM – 96 (to be decided before European

Elections 2009)Elections 2009) UNTIL 2014 – ONE COMMISSIONER PER MEMBER STATE – is this UNTIL 2014 – ONE COMMISSIONER PER MEMBER STATE – is this

feasible? THEN 2/3RDS OF NUMBER OF MEMBER STATESfeasible? THEN 2/3RDS OF NUMBER OF MEMBER STATES DOUBLE MAJORITY OF MEMBER STATES AND PEOPLE – 55 per cent DOUBLE MAJORITY OF MEMBER STATES AND PEOPLE – 55 per cent

of Member States representing 65 per cent of population is of Member States representing 65 per cent of population is QUALIFIED MAJORITYQUALIFIED MAJORITY

EXTENSION OF QUALIFIED MAJORITY AND CO-DECISIONEXTENSION OF QUALIFIED MAJORITY AND CO-DECISION UNANIMITY IS STILL REQUIRED IN:UNANIMITY IS STILL REQUIRED IN:

• TaxationTaxation• Own resources and financial perspectives – UK rebate includedOwn resources and financial perspectives – UK rebate included• Parts of social securityParts of social security• Parts of foreign and security policyParts of foreign and security policy

ConclusionConclusion Is this Constitutional Treaty a better document than Is this Constitutional Treaty a better document than

previous Treaties?previous Treaties? WHY DID THE FRENCH AND DUTCH SAY NO? WERE ISSUES WHY DID THE FRENCH AND DUTCH SAY NO? WERE ISSUES

NATIONAL OR EUROPEAN?NATIONAL OR EUROPEAN?• UNEMPLOYMENT AND DE-LOCALISATIONUNEMPLOYMENT AND DE-LOCALISATION• SERVICES DIRECTIVESERVICES DIRECTIVE• A STRONG EURO AND A PERCEIVED LOWER LIVING A STRONG EURO AND A PERCEIVED LOWER LIVING

STANDARDSSTANDARDS• PROTEST VOTE AGAINST NATIONAL GOVERNMENTSPROTEST VOTE AGAINST NATIONAL GOVERNMENTS• FEAR ABOUT EU ENLARGEMENT, especially from CEECs –FEAR ABOUT EU ENLARGEMENT, especially from CEECs –

POLISH PLUMBERS AND CONSTRUCTION WORKERS; POLISH PLUMBERS AND CONSTRUCTION WORKERS; FARMING THREATSFARMING THREATS

• ULTRA-LIBERALISM??????????ULTRA-LIBERALISM??????????• Anti-Social Europe???????Anti-Social Europe???????

WHAT DO YOU THINK ABOUT WHAT DO YOU THINK ABOUT THE CONSTITUTIONTHE CONSTITUTION

WHERE SHOULD THE EU BE HEADING? WHERE SHOULD THE EU BE HEADING? Widening versus Deepening?Widening versus Deepening?

SHOULD VETO RIGHTS BE MAINTAINED, SHOULD VETO RIGHTS BE MAINTAINED, say on taxation???? SHOULD THERE BE A say on taxation???? SHOULD THERE BE A HARMONISED TAX OR NOT?HARMONISED TAX OR NOT?

IS EUROPE DISCONNECTED FROM WHAT IS EUROPE DISCONNECTED FROM WHAT CITIZENS AND BUSINESSES WANT?CITIZENS AND BUSINESSES WANT?

ARE THE INTERESTS OF THE FOUNDING ARE THE INTERESTS OF THE FOUNDING MEMBERS SAFEGUARDED?MEMBERS SAFEGUARDED?

What’s in it for business and Chambers of What’s in it for business and Chambers of Commerce?Commerce?

FUTURE FINANCIAL FUTURE FINANCIAL PERSPECTIVES 2007-2013PERSPECTIVES 2007-2013

The debate on the EU's revenue and expenditure The debate on the EU's revenue and expenditure ceilings for the period 2007-2013 (the 'financial ceilings for the period 2007-2013 (the 'financial perspective') has turned out to be a major battle perspective') has turned out to be a major battle between the Commission and the 'net between the Commission and the 'net contributors' to the EU budget. The Commission contributors' to the EU budget. The Commission has asked for a multi-annual budget of nearly has asked for a multi-annual budget of nearly 1000 billion euros (1.14% of EU GNI)  between 1000 billion euros (1.14% of EU GNI)  between 2007-2013, but six member states want to 'cap' 2007-2013, but six member states want to 'cap' the EU's expenditures to 1% GNI. Another difficult the EU's expenditures to 1% GNI. Another difficult issue is the possible replacement of the UK issue is the possible replacement of the UK 'rebate' by a generalised correction mechanism.'rebate' by a generalised correction mechanism.

FINANCIAL PERSPECTIVESFINANCIAL PERSPECTIVES

WHO ARE THE SIX NET CONTRIBUTORS?WHO ARE THE SIX NET CONTRIBUTORS?France Netherlands Austria SwedenFrance Netherlands Austria SwedenGermany and UKGermany and UKROLE OF THE EUROPEAN PARLIAMENT:ROLE OF THE EUROPEAN PARLIAMENT:The Parliament's temporary committee on The Parliament's temporary committee on

the financial perspective adopted its the financial perspective adopted its report on 11 May 2005 insisting that report on 11 May 2005 insisting that spending over the next financial spending over the next financial perspective should be limited to perspective should be limited to 1.07%1.07% of of EU gross national income.EU gross national income.

FINANCIAL PERSPECTIVESFINANCIAL PERSPECTIVES

LEGISLATIVE PROPOSALS WERE READY IN LEGISLATIVE PROPOSALS WERE READY IN JULY 2004JULY 2004

DECISION TO BE TAKEN THIS WEEK?DECISION TO BE TAKEN THIS WEEK? IF NOT – major delays in disbursements of IF NOT – major delays in disbursements of

funds post 2006 due to UK/Austria stancefunds post 2006 due to UK/Austria stance COMPLICATED BY EU CONSTITUTION _ COMPLICATED BY EU CONSTITUTION _

WHAT IS THE FRANCO-GERMAN DUO WHAT IS THE FRANCO-GERMAN DUO SAYINGSAYING

ELECTIONS IN GERMANY IN SEPTEMBER ELECTIONS IN GERMANY IN SEPTEMBER 20052005

FINANCIAL PERSPECTIVES – FINANCIAL PERSPECTIVES – main highlightsmain highlights

More targeted on EU‘s strategic priorities – More targeted on EU‘s strategic priorities – Lisbon and GoteborgLisbon and Goteborg

More concentrated on least favoured areas More concentrated on least favoured areas – Objective 1 as at 7th April 2005– Objective 1 as at 7th April 2005

Latvia – 43 Luxembourg – 223 (EU25-100)Latvia – 43 Luxembourg – 223 (EU25-100) More decentralised – simpler, more More decentralised – simpler, more

transparent and more efficient transparent and more efficient implementationimplementation

FINANCIAL PERSPECTIVES - FINANCIAL PERSPECTIVES - contdcontd

CONVERGENCE OBJECTIVE – ERDF, CONVERGENCE OBJECTIVE – ERDF, ESF AND COHESION FUNDINGESF AND COHESION FUNDING

79 per cent79 per cent REGIONAL COMPETITIVENESS AND REGIONAL COMPETITIVENESS AND

EMPLOYMENT – ERDF and ESFEMPLOYMENT – ERDF and ESF17 per cent17 per cent EUROPEAN TERRITORIAL CO-EUROPEAN TERRITORIAL CO-

OPERATION - ERDFOPERATION - ERDF4 per cent4 per cent

FINANCIAL PERSPECTIVESFINANCIAL PERSPECTIVES

CONVERGENCE OBJECTIVE:CONVERGENCE OBJECTIVE:• < 75 per cent of GDP (67 per cent)< 75 per cent of GDP (67 per cent)• Cohesion Fund – 90 per cent of EU Cohesion Fund – 90 per cent of EU

averageaverage• Statistical effect regions – 8 per centStatistical effect regions – 8 per cent• 0.5 per cent to outmost regions0.5 per cent to outmost regions• Corporate Taxation and Future Corporate Taxation and Future

Financial Perspectives?Financial Perspectives?

FINANCIAL PERSPECTIVES - FINANCIAL PERSPECTIVES - ConclusionConclusion

Luxembourg’s new negotiating box – Luxembourg’s new negotiating box – 19 May 19 May less money for LISBON AGENDAless money for LISBON AGENDA

CAP – no flexibility?CAP – no flexibility? Is the UK’s rebate still justified? Is the UK’s rebate still justified?

UK does not benefit from CAP – UK does not benefit from CAP – compared to France and Germany – compared to France and Germany – and Regional Funds;and Regional Funds;

• Large gaps in enlarged EULarge gaps in enlarged EU

THE SERVICES DIRECTIVETHE SERVICES DIRECTIVE The objective of the Services proposal, adopted by the The objective of the Services proposal, adopted by the

Commission in January 2004, is to achieve a genuine Internal Commission in January 2004, is to achieve a genuine Internal Market in services by removing legal and administrative barriers Market in services by removing legal and administrative barriers to the development of service activities between Member States. to the development of service activities between Member States. The proposed Directive would guarantee service providers more The proposed Directive would guarantee service providers more legal certainty if they want to exercise two fundamental freedoms legal certainty if they want to exercise two fundamental freedoms (freedom of establishment and freedom to provide services) (freedom of establishment and freedom to provide services) enshrined in the EC Treaty. enshrined in the EC Treaty.

This would make it easier for businesses to provide and use cross-This would make it easier for businesses to provide and use cross-border services in the EU, thus increasing cross-border border services in the EU, thus increasing cross-border competition in service markets, bringing down prices and competition in service markets, bringing down prices and improving quality and choice for consumers. improving quality and choice for consumers.

The Directive will also strengthen the rights of users of services, The Directive will also strengthen the rights of users of services, for instance by enshrining the right of non-discrimination. for instance by enshrining the right of non-discrimination.

SERVICES DIRECTIVE - contdSERVICES DIRECTIVE - contd Today we operate in an Internal Market Today we operate in an Internal Market

with 28 different sets of legislation – EU25 with 28 different sets of legislation – EU25 plus EEA3 – ICELAND, NORWAY AND plus EEA3 – ICELAND, NORWAY AND LIECHTENSTEIN LIECHTENSTEIN

Services sector accounts to 70 per cent of Services sector accounts to 70 per cent of GDP as manufacturing shrinksGDP as manufacturing shrinks

96 per cent of net job creation originates 96 per cent of net job creation originates from the services sectorfrom the services sector

Reduction of existing barriers by more Reduction of existing barriers by more than 50 per centthan 50 per cent

Reduction of prices that will benefit Reduction of prices that will benefit suppliers and consumerssuppliers and consumers

SERVICES DIRECTIVE/SERVICES DIRECTIVE/Benefits for Service Providers and Benefits for Service Providers and

ConsumersConsumersSERVICE PROVIDERSSERVICE PROVIDERS Accelerate authorisation process for EU Accelerate authorisation process for EU

companiescompanies Opportunity to test a market without the Opportunity to test a market without the

establishment burdenestablishment burden

CONSUMERSCONSUMERS• Larger choice of serviceLarger choice of service• Enhanced quality and better informationEnhanced quality and better information

MisconceptionsMisconceptions The Directive leads to social dumping:The Directive leads to social dumping:

The Directive foresees a general The Directive foresees a general derogation from the COO principle for all derogation from the COO principle for all matters covered by the posting of workers matters covered by the posting of workers directive. The host country is in charge of directive. The host country is in charge of controlling compliance with the posting of controlling compliance with the posting of workers directive.workers directive.

Need for clear definition of notion of Need for clear definition of notion of establishment to avoid « shell establishment to avoid « shell companies » or « mail box firms »companies » or « mail box firms »

MISCONCEPTIONS-contdMISCONCEPTIONS-contd

The proposed Directive would lead to The proposed Directive would lead to a race to the bottom of public health, a race to the bottom of public health, safety and environmental standards.safety and environmental standards.

The proposed directive already The proposed directive already provides in derogations from the provides in derogations from the COO principle for a range of COO principle for a range of safeguards regarding public order, safeguards regarding public order, public safety or public healthpublic safety or public health

MISCONCEPTIONS (3)MISCONCEPTIONS (3)

It would lead to the privatisation of public It would lead to the privatisation of public services.services.

The Directive merely intends to facilitate The Directive merely intends to facilitate and simplify the development of service and simplify the development of service activities in those areas which are already activities in those areas which are already open to competition. It is up to MS to open to competition. It is up to MS to decide the areas which would/would not decide the areas which would/would not be open to competitionbe open to competition

MISCONCEPTIONS (4)MISCONCEPTIONS (4)

It would lead to legal uncertainty and It would lead to legal uncertainty and legal dumping:legal dumping:

National penal laws always prevail. National penal laws always prevail. Problem relates to contract law.Problem relates to contract law.

MISCONCEPTIONS (5)MISCONCEPTIONS (5)

Undermining of professional Undermining of professional qualifications:qualifications:

It excludes regulated professions It excludes regulated professions covered by mutual recognition of covered by mutual recognition of qualifications.qualifications.

MISCONCEPTIONS (6)MISCONCEPTIONS (6) Dismantling of health and social security Dismantling of health and social security

systems:systems:

It is the responsibility of Member States to It is the responsibility of Member States to decide whether private operators may decide whether private operators may provide services funded by the social provide services funded by the social security system.security system.

The proposed directive should ensure The proposed directive should ensure compatibility with Regulation 1408/71 on compatibility with Regulation 1408/71 on co-ordination of social security systems co-ordination of social security systems

MISCONCEPTIONS (7)MISCONCEPTIONS (7)

COO principle would lead to the COO principle would lead to the introduction of uncontrolled introduction of uncontrolled providers:providers:

Need for adequate supervision; Need for adequate supervision; Sector-specific harmonisation risks Sector-specific harmonisation risks taking too much time – we are not taking too much time – we are not dealing with goods but with services.dealing with goods but with services.

MISCONCEPTIONS (8)MISCONCEPTIONS (8) COO is a dangerous precedent:COO is a dangerous precedent:

It applied for Free Movement of Goods for a long It applied for Free Movement of Goods for a long time plustime plus

It has been adopted for:It has been adopted for:

• Television sans Frontieres DirectiveTelevision sans Frontieres Directive• E-Commerce DirectiveE-Commerce Directive• Electronic SignaturesElectronic Signatures• Data ProtectionData Protection

MISCONCEPTIONS (9)MISCONCEPTIONS (9) It covers ALL services:It covers ALL services:

It is important to distinguish between:It is important to distinguish between:

• Services excluded from the Scope of the Services excluded from the Scope of the Directive;Directive;

• Services excluded from COO principle, andServices excluded from COO principle, and• Services covered by COO principle – Services covered by COO principle –

business-to-business relations.business-to-business relations.

WHAT NEXT?WHAT NEXT?COMMISSION HAS NO INTENTION TO WITHDRAW PROPOSALCOMMISSION HAS NO INTENTION TO WITHDRAW PROPOSAL

CURRENTLY AT EP – major changes expected to COO and sectors CURRENTLY AT EP – major changes expected to COO and sectors excludedexcluded

March Competitiveness Council - March Competitiveness Council - The Presidency welcomed the clear The Presidency welcomed the clear statement that no new proposal would be presented by the statement that no new proposal would be presented by the Commission. They endorsed the suggestion that health and social Commission. They endorsed the suggestion that health and social services of general interest be excluded from the proposal. They services of general interest be excluded from the proposal. They agreed that the current text needed to be modified if it was to be agreed that the current text needed to be modified if it was to be adopted.adopted.

Need for a constructive debate – very difficult post Referendum result in Need for a constructive debate – very difficult post Referendum result in FranceFrance

Risk for renewed Lisbon strategy and lack of completion of Internal MarketRisk for renewed Lisbon strategy and lack of completion of Internal Market

OVERALL CONCLUSIONOVERALL CONCLUSION EU 25 – soon to be 27 countries – is at the EU 25 – soon to be 27 countries – is at the

crossroads – Very difficult circumstances post crossroads – Very difficult circumstances post Referenda results in France and NLReferenda results in France and NL

Financial Perspectives – Critical moment of truthFinancial Perspectives – Critical moment of truth Future enlargementFuture enlargement? Romania and Bulgaria – despite them having ? Romania and Bulgaria – despite them having

signed Accession Treatysigned Accession Treaty? Turkey – Opening of accession negotiations in ? Turkey – Opening of accession negotiations in

early Octoberearly October? Croatia and the Balkans? Croatia and the Balkans? Ukraine? Ukraine

CONCLUSION - contCONCLUSION - cont TENSE RELATIONSHIP BETWEEN COMMISSION TENSE RELATIONSHIP BETWEEN COMMISSION

AND EP –FALLOUT OF BUTTIGLIONE – WTD AND AND EP –FALLOUT OF BUTTIGLIONE – WTD AND SERVICESSERVICES

ROLE OF THE EU ON THE INTERNATIONAL SCENE ROLE OF THE EU ON THE INTERNATIONAL SCENE – political and economic – WEAKENED?– political and economic – WEAKENED?

UK Presidency – post 1 July – What role?UK Presidency – post 1 July – What role? Tension between old and new member states?Tension between old and new member states? Is the new Commission delivering – Major critique Is the new Commission delivering – Major critique

is the COMMUNICATING EUROPE strategy WHICH is the COMMUNICATING EUROPE strategy WHICH IS A KEY OBJECTIVE OF THE BARROSO IS A KEY OBJECTIVE OF THE BARROSO COMMISSIONCOMMISSION

WHOSE ROLE IS COMMUNICATING EUROPE???WHOSE ROLE IS COMMUNICATING EUROPE???

CONCLUSIONS - contdCONCLUSIONS - contd WHAT ROLE FOR CHAMBERS OF COMMERCE?WHAT ROLE FOR CHAMBERS OF COMMERCE?

ARE THE CHAMBERS ENGAGED IN THE DEBATE AT ARE THE CHAMBERS ENGAGED IN THE DEBATE AT A NATIONAL/REGIONAL LEVEL?A NATIONAL/REGIONAL LEVEL?

WHAT FORM OF LINKS EXIST WITH ENTERPRISES WHAT FORM OF LINKS EXIST WITH ENTERPRISES ON MAJOR DOSSIERS? REACH /SERVICES/CLIMATE ON MAJOR DOSSIERS? REACH /SERVICES/CLIMATE CHANGE/CONSTITUTION/BETTER CHANGE/CONSTITUTION/BETTER REGULATION/WTOREGULATION/WTO

LINKS with EUROCHAMBRES IN EU POLICY LINKS with EUROCHAMBRES IN EU POLICY ELABORATIONELABORATION

CONCLUSIONCONCLUSION

DEBATE?DEBATE?How do you perceive EU How do you perceive EU

enlargement?enlargement?Positive, Negative, Neutral, Positive, Negative, Neutral,

Still too early to say?Still too early to say?

CONTACT DETAILS:CONTACT DETAILS:

Dr. Leonard MizziDr. Leonard MizziDIRECTOR GENERALDIRECTOR GENERAL

MALTA BUSINESS BUREAUMALTA BUSINESS BUREAUAVENUE D’AUDERGHEM, 289AVENUE D’AUDERGHEM, 289

B-1040 BRUSSELSB-1040 BRUSSELSBELGIUMBELGIUM

Tel: 003225026091Tel: 003225026091EMAIL: lmizzi@mbb.org.mtEMAIL: lmizzi@mbb.org.mt

www.mbb.org.mtwww.mbb.org.mt

INFORMATIONINFORMATION

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QUESTION AND QUESTION AND ANSWER SESSIONANSWER SESSION

THANKS FOR YOUR ATTENTIONTHANKS FOR YOUR ATTENTION