PowerPointPrsentation

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EU POLICY UP-DATE TAKING STOCK ON ENLARGEMENT
Bergen, Norway, 2004
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• Introduction
• Facts
• Problem areas (assessment)
• Possible actions by chambers
• Conclusion

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Course leader

• Stefan PistauerEU-Office of the Austrian Federal
  Economic Chamber

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The Tasks of the EU-Office

• Participation in the legislative process
• Lobbying
• Participation in European interest groups
• Internal market observation
• Introduction of the Euro
• Legal advice
• Third country support programmes
• Projects

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Policy Issues

• Constitution
• New European Parliament
• New European Commission
• Lisbon Goals
• Environment
• Enlargement

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FACTS
Bergen, Norway, 2004
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Constitution Facts

• Time frame
• Political Agreement IGC 18 June 2004
• Signature Oct./Nov. 2004
• Ratification by end June 2006
• Referenda UK, DK, NL, LUX, B, SP, P, PL...
• Entry into force 1 July 2006

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Constitution Facts

• Institutional changes
• abolition of the 3 pillars EU gets legal
  personality
• Commission reduction to 2/3 in 2014, equal
  rotation
• Council qualified majority 55 of the votes
  (minimum 15 MS) representing 65 of the
  population blocking minority min 4 MS
• extention of qualified majority voting to 32 new
  policy aeras
• European Parliament min. 6 (instead of 4) and
  max. 96 (instead of 99) MEPs per MS
• max. in total 750 (instead of 736)

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Constitution Facts

• Economic impact
• Increased decision making efficiency
• double majority
• extended qualified majority voting
• Increased democratic legitimacy
• co-decision procedure standard procedure
• Simpler structure/ clearer competences
• Inclusion of European social partnership
• Confirmation of the stability and growth pact
• Good basis for further economic integration

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Constitution
Question

• Will it ever enter into force ?
• Will it lead to further integration ?

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Parliament Facts

• Until 1.5.2004 626 seats
• 1.5.2004 -20.7.2004 788 seats
• From 20.7.2004 732 seats
• Until 2009 min. 4 and max. 99 MEPs per MS
• From 2009 min. 6 and max. 96 MEPs per MS (max.
  total 750)

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Parliament Facts

Seats in the EP
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Parliament Facts

Turnout trends at European elections
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ParliamentQuestions

• Rearranging of political factions ?
• Coalitions ?
• Presidents ?
• Composition of Committees ?
• Space for lobbyists ?
• Who do we have in the EP ?

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Commission Facts

• 1.5.2004 20 (10/10)
• 31.10.2004 30 (11/19)
• From 1.11.2004 25 (6/19)
• From 2014 2/3 of MS

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Commission Questions

• New Commission President J. M. D. BARROSO
• Portfolios of new Commissioners ?
• Weight of the Vice Presidents ?
• Clusters ?
• New DGs ?
• New Appointments of Officials ?

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LisbonFacts

• The Lisbon Goals
• By 2010 the EU should become the most competitive
  and dynamic knowledge-based economy in the world
• capable of sustainable economic growth
• with more and better jobs and greater social
  cohesion

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LisbonFacts

• The First Pillar Competitive Ecomomy
• Information society
• Research and innovation
• Better business environment
• Completion of the internal market
• Integrated finacial markets
• Consolidation of budgets

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LisbonFacts

• The Second Pillar Social Europe
• More and better jobs developing an active
  employment policy
• Education and training for a knowledge- based
  society
• Modernising the social systems
• Fostering social integration

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LisbonFacts

• The Third Pillar Sustainanbility
• Stockholm/Gothenburg Summit (2001)
  EU-Strategy for sustainable development
• Since 2002 evaluation of the environmental
  dimension in the spring report
• e.g. combating the climate change
• Until 2005 progress towards Kyoto goals
• Until 2010 22 electricity from renewable energy

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LisbonFacts

• The Lisbon instruments
• Open method of coordination
• Structural indicators (more than 100 since 2004
  shortlist of 14)
• Annual synthesis report by the Commission
  (spring report)
• Ranking of member states (naming and shaming)
• individual pledges of member states voluntary
  self constraints in order to achieve national
  goals

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LisbonFacts

• The Lisbon state of play 2004
• Achieved progress
• Creation of 6 mio. jobs since 1999, increasing
  the employment rate from 62,5 to 64,3
• Liberalisation of key markets (telecom,
  electricity, gas, postal services, railways)
• knowledge-based economy
• sustainable development

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LisbonFacts

• The Lisbon state of play 2004
• Existing deficits
• employment rate should be 67 by 2005, active
  ageing
• EU-productivity per capita is lagging behind US
• Investment in reserach and innovation
• Fragmentation of the internal market (e.g.
  services, financial markets)

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LisbonFacts
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LisbonFacts

• The Lisbon mid-term review 2005
• Wim Kok-report - November 2004
• basis for the reform of the Lisbon process
• Commission synthesis report January 2005
• analysis of the achieved progress since 2000
• evaluation of the methods and instruments
• reviewed strategy for 2005-2010
• Spring Council March 2005
• new political impulses for 2005-2010

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LisbonQuestions

• How relevant is the Commission ?
• Are the criteria relevant ?
• Benchmark U.S. ?
• Can Chambers excert influence on MS ?
• Can we reach the goals ?
• More name and shame ?

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EnvironmentFacts

• Aarhus Convention
• Access to information
• Public participation in licencing procedures
• Access to justice

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EnvironmentFacts

• Emission trading
• lt 10000 sites
• Reduce!.. or.. Trade!
• Opt In
• Will it work ??
• What about the Non E.T. sectors ?
• Traffic/Households

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EnvironmentFacts

• Environmental liability
• Any professional activity covered
• Non fault based
• 3 Damage categories
• Bio diversity, water, soil
• Excemptions?
• Permit defence and state of the art
• Cost ? Insurance ?

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EnvironmentFacts

• REACH New EU-Chemicals Policy
• Equal footing for existing and new chemicals
• Duty of care industry responsibility
• Less animal testing ???
• Registration gt 1 tonne p.a. (ap.30.000
  substances)
• Evaluation risk to health and environment (ap.
  20)
• Authorisation high concern (ap. 1500 substances)
• Costs for industry ? (360.000 enterprises in
  EU-15)
• Impact Assessment

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EnvironmentQuestions

• Can Reach still be improved ?
• Impact on Competitiveness ?
• Can Europe afford all of this ?

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EnlargementFacts
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EnlargementFacts
EU Enlargements

• 1956 Germany, France, Italy, Belgium,
  Netherlands, Luxembourg
• 1973 Denmark, Ireland, UK
• 1981 Greece
• 1986 Portugal, Spain
• 1995 Austria, Finland, Sweden
• 2004 10 new countries

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EnlargementFacts
Enlargements in the pipeline

• Candidate countries
• Bulgaria 2007
• Romania 2007
• Turkey ???
• Croatia ???

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EnlargementFacts
Enlargements in the pipeline

• Stability process countries
• FYROM application April 2004
• Albania
• Serbia
• Bosnia-Herzegovina

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EnlargementFacts

• 1.5.2004 Formal accession
• New members apply acquis communautaire
• Transition periods in several areas e.g.
• Environment, transport (cabotage)
• Agriculture (direct payments)
• Free movement of workers and capital
• Schengen acquis to be adopted in 2007

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EnlargementFacts
The new European Union

Population and area
GDP
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EnlargementFacts

• The Euro
• Preconditions
• Two years participation in ERM II
• Fulfilment of 4 convergence criteria
• Budget deficit lower than 3 of GDP
• Debt ration lower than 60 of GDP
• Low inflation
• Stability of interest rates

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EnlargementQuestions

• Where are the limits of Europe ?
• When will the EU be ready for further expansion ?
• Will further integration be possible with
  25/27/28 members ?
• Avantgarde?

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Assessment of negative and positive effects for
Chambers and for members
Bergen, Norway, 2004
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Questions

• Impact of recent Developments
• on Chambers
• on Members

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Positive aspectsAustrias perception

• Political and economic stability
• New markets
• Worlds largest market
• Greater importance of the EU
• Level playing field
• Strategic partnerships
• Competitve manufacturing

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Negative effectsAustrias perception

• Increased competition.
• Redistribution of funds
• Redirection of FDI
• Inadequate institutions (decision-making
  mechanisms)
• Inadequate application of the Aquis
• Cost
• Sociological and cultural differences

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ParticipantsPositive effects on chambers

• Easier access to funds and projects
• Better access to information
• Importance of chambers in Community
• Image, authority
• Increasing importance of Networking
• Information, Human resources, consultancy, audit

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ParticipantsNegative effects on
chambers

• Higher competition between chambers
• Other business associations
• Not prepared for new challenges
• Bureaucracy
• Increase in costs
• Direct and indirect
• Decrease in income (?)

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ParticipantsPositive effects on members

• Bigger market
• Partners
• Structural funds
• Better access to market
• Export/Import issues
• Healthier competition

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ParticipantsNegative effects on members

• Higher competition
• Language barriers
• Increase in cost of communication
• Bureaucracy
• Higher standards and regulations
• Increases in prices
• Difficulties to implement the Community Acquis

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WHAT CAN CHAMBERS DO ?
Bergen, Norway, 2004
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What can Chambers do?

• Prepare
• Support
• Inform
• Lobby
• De-emotionalise
• De-mystify

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EU POLICY UP-DATE TAKING STOCK ON ENLARGEMENT
Bergen, Norway, 2004
Dr. Stefan Pistauer Stefan.Pistauer_at_eu.austria.be