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European Commission Spokesman's Briefing for 97-10-15
From: EUROPA, the European Commission Server at <http://europa.eu.int>
MIDDAY EXPRESS
News from the Spokesman's midday briefing
Nouvelles du rendez-vous de midi du Porte-Paroleb
15/10/97
CONTENTS / CONTENU
[I] R�sultats de la Commission de ce jour - Outcome of today's Commission
meeting
[01] Commission clears the merger between Guinness Plc and Grand
Metropolitan Plc subject to several firm divestment commitments
[02] More combined heat and power generation to save energy and reduce
emissions
[03] Preparing for mobile multi-media telephones: strategy and policy
orientations for the development of third generation mobile telecommunications
[04] Bringing down the cost of market entry to Europe's liberalised
telecommunications market
[05] Commission creates new structure to improve community aid to third
countries
[06] La Commission met fin � une proc�dure d'infraction concernant
l'a�roport d'Ath�nes
[07] Blanchiment de capitaux: la Commission d�cide de saisir la Cour de
justice � l'encontre de l'Autriche
[08] Commission decides legal action against Portugal for non-respect of
environmental legislation
[II] Other news - Autres nouvelles
[09] Assurance automobile: la Commission propose une directive pour
r�soudre les probl�mes des victimes d'accidents � l'�tranger
[10] Assurances: la Commission lance une large consultation sur la libert�
de prestation de services et l'int�r�t g�n�ral
[11] Commission decides to improve means of financial control of the
Structural Funds
[12] European Union secures opening up of freight-forwarding and
normalisation of Denmark's relations with China
[13] Franz Fischler: "EU's attitude towards biotechnology treathens
employment"
[I] R�sultats de la Commission de ce jour - Outcome of today's Commission
meeting
[01] Commission clears the merger between Guinness Plc and Grand
Metropolitan Plc subject to several firm divestment commitments
After a detailed investigation, the European Commission has cleared,
subject to conditions, the merger - notified on May 16th 1997 - between
the UK-based groups Guinness plc ("Guinness") and Grand Metropolitan plc
("GrandMet") to form GMG Brands. The Commission's investigation found
competition concerns arising from the merger in the markets for certain
spirit types in Greece, Spain, Ireland and Belgium/Luxembourg. However,
following negotiations with the Commission, the parties have given firm
commitments to address these concerns. These include the divestment of two
Scotch whisky brands, Dewar's and Ainslie's, on a Europe-wide basis.
Dewar's is a major international brand whose divestment will address the
concerns about the parties' strength in whiskey markets in Greece and
Spain. It will also allow the new owner to develop the brand in the other
European markets. Ainslie's is an important brand in Belgium/Luxembourg,
and its divestment will address similar concerns there. The parties have
also undertaken to place with a third party their distributorship of
Gilbey's gin in Belgium/Luxembourg and to end their distribution agreements
with third parties in respect of Wyborowa vodka in that territory. These
commitments are considered sufficient to resolve concerns about the
parties' strengths in the markets for gin and vodka in Belgium/Luxembourg.
The parties have also undertaken to end their distribution agreement for
Bacardi in Greece, which is considered to resolve concerns about their
'portfolio power' there, given their strong pre-existing positions in a
number of spirit categories. As regards Ireland, the parties have agreed
to dispose of certain interests which will ensure continued competition in
the distribution of spirits, which otherwise would have effectively reduced
from the present four to two the number of distributors in Ireland. The
remedies, i.e. the different steps of the divestiture process, will be
closely monitored by the Commission. They will ultimately reduce the
parties' market shares and strength in the national and product markets of
concern sufficiently to render the operation compatible with the common
market and with the functioning of the EEA agreement.
[02] More combined heat and power generation to save energy and reduce
emissions
The European Commission adopted a Communication on the promotion of
combined heat and power generation (CHP). The Communication proposes a
strategy, in the context of the European Union energy policy, which will
facilitate the development of CHP and remove barriers to its penetration in
the European market as an energy saving and environmentally friendly system
of heat and power production. The strategy aims to set out the main
actions and policies required at European Union (EU) level to ensure that
CHP benefits are exploited by promoting a significant penetration in the
total gross electricity generation of the EU by the year 2010. CHP is an
efficient way of exploiting all the useful energy content of fuels (oil,
gas, coal). If fuels are burnt to produce only electricity in a
conventional way, only 30-40% of the energy content is converted to useful
energy. The rest, the heat, gets wasted. A CHP plant can convert up to 85-
90% of the energy content of the fuel. It produces electricity and at the
same time uses the heat generated to provide hot water for industry use, or
for heating homes, buildings, shops. A successful example is the city of
Copenhagen.
[03] Preparing for mobile multi-media telephones: strategy and policy
orientations for the development of third generation mobile telecommunications
The European Commission adopted a Communication that sets out the strategy
and policy orientations aimed at creating a favourable environment for the
further development of mobile communications in Europe or the Universal
Mobile Telecommunications System (UMTS) which will allow mobile users
wireless access to the Internet and other multi-media services. In
particular, clarification on the licensing regime that will be used and
certainty that radio frequency spectrum will become available in good time
are areas that require urgent action by authorities. At the same time, the
Commission feels that basic customer interests need to be preserved such as
Europe-wide roaming for future mobile multi-media services in order that
the European citizen can benefit from a "wireless Information Society"
without frontiers as he can do today with voice telephony using GSM.
[04] Bringing down the cost of market entry to Europe's liberalised
telecommunications market
The European Commission agreed a Recommendation on the prices that
telecommunications operators charge each other for the delivery of calls,
to apply after the opening of the liberalised European Union (EU)
telecommunications market on 1 January 1998. 'Interconnection charges'
constitute one of the biggest cost items faced by new market entrants in
the telecommunications sector, some of whom find that up to 40% of their
costs go in interconnection payments to established operators. The
Recommendation sets out 'best current practice' prices based on the three
Member States with the lowest interconnection prices. These 'best current
practice' prices are typically 2 or 3 times lower than some operators had
originally proposed. The biggest impact will be to reduce the cost of
market entry for new operators, but the Recommendation also points the way
to reductions in the cost of calls from mobile phones to fixed networks,
and in the cost of long distance calls between Member States in the EU.
[05] Commission creates new structure to improve community aid to third
countries
The European Commission decided to reorganise its external services with a
view to improving the implementation of European Union (EU) aid to third
countries. By delegating technical tasks such as the preparations of calls
for tender, management of contracts and maintaining consultant databases to
a "Joint Service", staff in the external DG's will be able to better
concentrate on the primary tasks related to aid implementation, such as
strategy development, programming of priorities and the political decisions
related to engaging credits. The Joint Service will be common to the
Directorates General responsible for implementing EU aid to non-member
countries, namely I, IA, IB, VIII and ECHO. (ECHO's involvement would be
limited to the administrative and financial aspects of managing outside
project support staff.) The decision aims to simplify and rationalise the
implementation of the various programmes, increase coherence and
transparency (especially for the economic operators that assist in project
implementation) and make effective use of economies of scale. The new
structure is needed to enable the Commission to effectively implement an
ever increasing aid budget amounting to almost ECU 7,000 million in 1997.
The proposal reconciles the need to improve co-ordination and coherence
between the wide range of programmes, while maintaining their flexibility
to respond to individual countries' needs or specific situations (such as
urgent humanitarian aid).
[06] La Commission met fin � une proc�dure d'infraction concernant
l'a�roport d'Ath�nes
La Commission europ�enne a d�cid� de mettre fin � une proc�dure
d'infraction ouverte en 1994 concernant la Gr�ce apr�s avoir obtenu une
am�lioration sensible de la fourniture de services d'assistance en escale �
l'a�roport d'Ath�nes. Des compagnies a�riennes s'�taient plaintes aupr�s
de la Commission que les services d'assistance en escale (enregistrement,
acheminement des bagages, nettoyage, catering...) prest�s en monopole par
Olympic Airways (OA) � l'a�roport d'Ath�nes �taient de mauvaise qualit� et
bas�s sur un tarif peu transparent. La Commission a consid�r� que cette
situation r�sultait d'un abus de position dominante et a ouvert une
proc�dure d'infraction. A la suite de cette d�cision, les autorit�s
grecques ont mis fin � la situation de monopole, ont entrepris des travaux
d'am�lioration de l'a�roport d'Ath�nes et ont modifi� une loi qui emp�chait
OA de recruter ais�ment du personnel saisonnier pour faire face aux pics de
trafic. En outre, OA a �labor� une nouvelle structure de tarification
transparente et plus proche du co�t effectif de la prestation.
[07] Blanchiment de capitaux: la Commission d�cide de saisir la Cour de
justice � l'encontre de l'Autriche
La Commission europ�enne a d�cid� de saisir la Cour de justice � l'encontre
de l'Autriche o� existent encore, en violation de la directive 91/308 sur
le blanchiment de capitaux, des livrets d'�pargne et des comptes-titres
anonymes. La d�cision a �t� prise parce que l'Autriche ne s'est pas
conform�e � l'avis motiv�, l'�tape de la proc�dure d'infraction pr�c�dant
la saisine de la Cour en vertu de l'Article 169 du Trait� CE.
[08] Commission decides legal action against Portugal for non-respect of
environmental legislation
The European Commission has decided to notify three Reasoned Opinions to
Portugal for non-respect of three different pieces of European Union
environmental legislation. Regarding the Directive on Freedom of Access to
Environmental Information, the Commission has found that the Portuguese
implementing legislation does not go as far as it should do according to
the Directive. The same counts for the Industrial Plants Directive, where
the Portuguese implementation only partly fulfills the requirements laid
down. On the Directive on Incineration of Hazardous Waste, Portugal has not
communicated any national legislation to implement the Directive to the
Commission.
[II] Other news - Autres nouvelles
[09] Assurance automobile: la Commission propose une directive pour
r�soudre les probl�mes des victimes d'accidents � l'�tranger
La Commission europ�enne a adopt� une proposition de directive pour
am�liorer le syst�me d'indemnisation des victimes d'un accident en dehors
de leur pays de r�sidence. Cette proposition vise � renforcer la protection
de victimes de ces accidents et � faciliter la proc�dure d'indemnisation.
Elle pr�voit l'obligation pour les compagnies d'assurance de d�signer un
repr�sentant charg� du r�glement du sinistre dans chaque Etat membre et la
cr�ation de structures d'information charg�es d'identifier l'assureur
responsable. En outre, un droit d'action directe devrait �tre introduit
dans toute l'Union europ�enne en faveur de cette cat�gorie de victimes. La
proposition, pr�vue dans la Communication sur les services financiers et
les consommateurs, r�pond aux demandes exprim�s par les repr�sentants des
consommateurs, les assureurs et le Parlement europ�en.
[10] Assurances: la Commission lance une large consultation sur la libert�
de prestation de services et l'int�r�t g�n�ral
La Commission europ�enne a adopt� un projet de Communication pr�sentant
l'interpr�tation que la Commission se propose de donner aux notions de
"libre prestation de services" et d'"int�r�t g�n�ral" appliqu�es au secteur
des assurances. La Commission a constat� que des divergences subsistent
quant � l'interpr�tation de ces notions entre les Etats membres, ce qui
entrave le bon fonctionnement du march� int�rieur de l'assurance. Sont
notamment pr�cis�es les conditions dans lesquels un Etat membre peut avoir
recours � lint�r�t g�n�ral pour justifier une r�glementation nationale
(imposant par exemple la notification pr�alable des conditions d'assurance,
certains syst�mes de tarification, ou des franchises obligatoires dans les
contrats d'assurance) et les crit�res permettant de tracer la d�marcation
entre les activit�s exerc�es par une entreprise d'assurance en r�gime de
libre prestation de services et celles exerc�es par le biais d'une
succursale. Le projet de Communication servira de base � un large d�bat
auquel seront associ�s les parties int�ress�es, le Parlement europ�en et
les Etats membres. A la lumi�re des conclusions de ce d�bat, la Commission
adoptera la version d�finitive de la Communication interpr�tative.
[11] Commission decides to improve means of financial control of the
Structural Funds
Effective control of the Structural Funds is vital for ensuring that they
provide value for money. To improve the financial control of the Funds,
the European Commission today adopted a regulation laying down minimum
control standards to be applied by the Member States. The purpose is to
make sure that the Member States know their responsibilities when it comes
to enforcing financial control of the Structural Funds. In addition the
Commission approved internal guidelines on the application of financial
corrections for irregularities which result from Member States failure to
apply adequate financial controls. These measures form part of the
Commission's SEM 2000 (Sound and Efficient Management) initiative.
[12] European Union secures opening up of freight-forwarding and
normalisation of Denmark's relations with China
Continuing his visit to China, Sir Leon Brittan, Vice-President of the
European Commission today announced that the European Union (EU) has won a
commitment for China to open up an important area of its shipping business
to European companies for the first time. The Chinese Vice-Minister of
Communications, Mr Liu Songjin, promised Sir Leon that two licences would
shortly be granted to EU firms to carry out freight-forwarding activities
in the lucrative Chinese market. In another development, the EU has
secured a guarantee from China for Denmark, whose relations with Beijing
were reduced to the bare formalities as a result of disagreements over
human rights. The Chinese Foreign Minister, Qian Qichen, informed Sir Leon
Brittan, Vice-President of the European Commission, that China's relations
with Denmark could now be normalised.
[13] Franz Fischler: "EU's attitude towards biotechnology treathens
employment"
Development and exploitation of scientific knowledge, in particular
Biotechnology, have an important supporting effect on growth and
competitiveness in Europe, besides being an effective instrument to combat
unemployment. At a symposium organised by the Austrian Broadcasting
Corporation (ORF) in Vienna on the future of biotechnology on October 14th,
Franz Fischler, European Commissioner for Agriculture and Rural development,
stressed that future technologies, such as biotechnology would play a
central role in maintaining growth in Europe while securing employment. He
stressed however that biotechnological research and development is more
likely to take place in a friendly supportive environment and pointed out
that recent research showed that there is a risk for the European Union
(EU) of losing over 200,000 jobs in this area due to a hostile attitude
towards these activities. The attitude of the consumer towards a certain
method of production or technology can have an important bearing on their
perception and hence their demand for that product. The EU's future review
of biotech legislation ensures both ethical considerations and economic
framework for safe and transparent bio-tech industry, which, said Mr
Fischler, is crucial to allay public concerns regarding biotechnology.
MIDDAY EXPRESS
From EUROPA, the European Commission Server at http://europa.eu.int/
© ECSC - EC - EAEC, Brussels-Luxembourg, 1995, 1996
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