Germany takes over the Presidency

Germany took over the presidency of the EU on 1 January 1999. It has set as its priorities: job creation; internal consolidation and further development of the Union; and strengthening the development of the EU'' profile in relations with other countries. The European Council will take place in Cologne on 3-4 June. The website for the German presidency is at http://www.eu-presidency.de

(Originally posted by John Downes)

Global Navigation Satellite Systems (GNSS)

The Transport Commissioner announced that the Commission is working on recommendations to enable the EU to take decisions on this early in 1999. Within a few years many transport systems will rely on GNSS. The Commission is consulting with the industry, transport users and others in order to define a possible EU role in GNSS.

(Originally posted by John Downes)

Railway Services

The Commission has set out proposals "to save Europe's railways from extinction". Included are proposals to liberalise the freight market. The White Paper proposes to speed up modification of the existing legislation (Directive 91/440/EC) so as to extend the rights to railway infrastructure for freight and for international passenger services. Existing legislation will be modified to require the separation of infrastructure management and transport operations into distinct business units, with separate management and balance sheets. Further study will be made of the principles for infrastructure charging and capacity allocation prior to making fresh proposals. They have also recommended the establishment of a European Railway Authority. (NB European Commission White Paper 'A Strategy for Revitalising the Community's Railways - COM (96) 421 final)

(Originally posted by John Downes)

Railway Services

Tourism and Employment: The High Level Group on Tourism and Employment have stated that the tourism sector is expected to grow faster than the economy as a whole, increasing turnover by 2.5-4% per annum and creating 2.2-3m jobs in the EU by 2010.
http://europa.eu.int/en/comm/dg23/whatsnew.htm.

(Originally posted by John Downes)

Trans-European Transport Networks

Significant progress has been made and, on completion, the programme is expected to increase EU GDP by 0.5bn ecu by 2030 and create 600 000 jobs. The Vienna European Council emphasised the importance of protecting funding for this despite the need for cuts in public expenditure.

(Originally posted by John Downes)

Air Agreements with the USA

The Commission referred eight Member States to the European Court of Justice for having concluded "open skies" agreements with the USA. The states are Austria, Belgium, Denmark, Finland, Germany, Luxembourg, Sweden and the UK. The Commission argues that these agreements distort competition and disadvantage EU airlines. The Commission itself had been negotiating an agreement with the USA but this was halted by the Council of Ministers.

(Originally posted by John Downes)

Working Time Directive

The Commission announced proposals to extend the provisions of the Directive to more EU workers in the road, rail, sea, air and inland waterways transport industries. The Directive provides protection against adverse health and safety effects of long hours, inadequate rests and disruptive working patterns. (IP/98/1004).

(Originally posted by John Downes)

Euro Update

Banks have indicated that no charges will be levied for converting accounts and payments into euros. The Commission intends to keep the situation under review and have invited persons who have been charged to notify them. The euro operates in Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. The ecu has been replaced by the euro at a rate of 1:1. The new currency can be used by way of cheques, credit cards, bank transfer etc. but the new euro notes and coins will not come into use until 1 January 2002. The fixed conversion rates for participant currencies can be found at http//europa.eu.int/eurobirth/index_en.html

(Originally posted by John Downes)

Lockerbie: Update

n 13 January 1999, the UK Foreign Secretary, Robin Cook, visited Camp Zeist in the Netherlands which is to be used for the trial of the two Libyans accused of the Lockerbie bombing. The former US airbase currently used by the Dutch, will technically become part of Scotland for the purposes of the trial, which will be held according to Scots Criminal Law. Negotiations are continuing with the Libyan authorities who have expressed reservations about the men serving their prison sentences, if convicted, in a Scottish jail. One of the concerns is that they might be subject to UK and US intelligence' interrogations whilst in the prison. However, Mr Cook said that standards in Scottish prisons were as good as any in the world and Libyan and international bodies would be able to monitor the men's conditions. As soon as the men arrive in the Netherlands, the sanctions against Libya would be lifted. On 13 January, JANA, the Libyan news agency reported a "major headway" in the negotiations.

Charter Flights

President Clinton announced new measures to increase contact between ordinary US citizens and Cubans. These do not amount to the lifting of the general embargo against the Cuban Government but inter alia permits more charter flights between the two countries. These flights are intended to provide for visits by athletics, social, religious and other groups and are not intended for tourists. The 37 year US bar on tourism continues.

(Originally posted by John Downes)

Potential for Jobs in Tourism in Europe

The High-Level Group on Tourism and Employment reported to the Commission last week that tourism could create between 2.2m and 3.3m new jobs in the EU by 2010, expecting growth faster than the economy as a whole. It proposes five main areas for action in order to promote job creation: 1) greater business expertise to take account of guests' needs; 2) improving the business environment; 3) modernisation of transport infrastructures by EU and MSs; 4) upgrading of human resources; and 5) integration of sustainable development principles. More information [From "Week in Europe"]

(Originally posted by Jason Campbell)

Case Note: Case T-140/95 Ryanair v EC Commission - State Aid to Airlines

Judgment of the Court of First Instance given on 15 September 1998 Ryanair sought the annulment of a Commission decision in to permit under Article 93(2) of the EC Treaty payment of IR £50m state aid by the Irish Government to Aer Lingus in support of restructuring. This was the second tranche of a total IR £175m payment by the Irish Government. Ryanair argued that the Commission had made it a condition of the first tranche in 1993 that the second tranche would only be approved if annual cost savings of IR £50m had been achieved by the airline through the restructuring. When the Commission subsequently approved the second tranche, this condition had not been fulfilled. Ryanair argued that the Commission should have re-opened the Article 92(2) procedure before approving the aid in these circumstances. The CFI decided that this was not necessary. The Commission enjoyed a right "to manage and monitor" the implementation of state aid given over a period of time, and this included the right to reappraise conditions without reopening the approval procedure.

(Originally posted by Jason Campbell)

Working Time Directive

The International Transport Federation held a day of action to protest about the application of this Directive. This is the largest sector not covered by the Directive. Approximately 3.5m transport workers are employed in the sector. The European Commission threatened to propose legislation for the sector if no agreement was reached between employers and unions by 30 September. Agreement was finally reached between the employers' organisations and trade unions in the railway and maritime sectors. However, no agreement was reached in the road transport sector. The Commission will now put forward legilsative proposals based on the agreement and a White Paper that they had produced in July 1998. [IP/98/792]

(Originally posted by John Downes)

Airport Slots

Commissioner Neil Kinnock announced plans to buy and sell take-off slots. In July, British Airways and American Airlines were required to relinquish 267 slots (without compensation) in order to obtain EU approval for their alliance. The plans for buying and selling the slots will require legislative changes and are unlikely to be effected before 2001.

(Originally posted by John Downes)

Milan Airports

The Commission has declared the arrangements for distribution of air traffic between Milan's two airports (a new airport was recently opened) as contrary to EU law. The effect of the arrangements is to give advantage to Alitalia. [IP/98/795]

(Originally posted by John Downes)

EU-Mediterranean Free Trade Area

The Commission has announced a strategy to establish a free trade area between the EU and its Meditteranean partners by 2010. The strategy includes close co-operation on customs duties. [IP/98/826]

Tourism and the Euro

A conference was held in Brussels on 16 October to help the tourism sector prepare for the introduction of the Euro. The new currency comes into effect in participating countries on 1 January 1999. The Conference was opened by Commissioners Christos Papoutsis and Emma Bonino and addressed best practice, training needs, and liaison with the banks. Further details are available from DG XXIII on 00 32 2 295 3736.

(Originally posted by John Downes)

End of Duty Free

Duty-free sales come to an end on 1 July 1999. From that date, sales on board ships and aircraft on journeys within the EU will be subject to the excise duty at the rate applicable in the country where the goods were loaded on to the vessel or aircraft. VAT will apply at the rate of the Member State of departure. These rules apply to intra-EU journeys, notwithstanding the fact that during the journey the vessel crosses into international airspace or waters. [IP/98/858]

(Originally posted by John Downes)

Greece and the Euro

The ECOFIN Council approved Greece's convergence programme for 1998-2001 which would enable it to meet the criteria required for it to join the single currency on 1 January 2001.

UK/Turkey

Three British tourists and five Turkish citizens are feared dead after their coach transporting them back to the airport crashed into a taxi. All five occupants of the taxi are believed to have been killed. A further 30 occupants of the coach were injured. The coach was taking holidaymakers to Ismir Airport when the collision occured. There has been some criticism in the UK of the standards of driving by coach drivers in Turkey. However, early reports indicate that the taxi was on the wrong side of the road at the time of the accident. The Turkish authorities have set up an investigation. (19/10/98)

(Originally posted by John Downes)