EPP-ED Report
Issue 1 / January 2008

The future of the European car industry

By Greet Gysen

The first European Parliament plenary session of 2008 opened with a debate on a report concerning the future of the automobile industry.

The European automotive industry currently faces tough international competition, fast technological change, as well as growing demands in terms of the environment and road safety. To respond to these challenges, the Commission has created CARS 21, a high-level group of stakeholders to reflect on the future of the European car industry.

With its report, the European Parliament responds to the priorities set out by the CARS 21 reflection group. Nicole Fontaine (F), led the debate for the EPP-ED Group, emphasised the economic importance of the European automobile industry as it produces 19 million vehicles yearly and provides 2.3 million direct and a further 10 million indirect jobs.

One of the main priorities for the future of the European car industry, according to the Parliament, is the increase of research and development efforts, especially with regard to the development of eco-friendly cars. If the European car industry is to meet the binding CO2 targets proposed by the European Commission, more research and greater research funding is vital.

Nicole Fontaine reminded the hemicycle that industry needs sufficient time to prepare for the production of cars with a lower CO2 emission. As the development of new types of passenger cars takes about five to seven years, MEPs urge the Commission not to set any final mandatory targets for CO2 emissions for any date before 2015. From then on, however, an average target of 125g/km of CO2 emissions for new passenger cars should be achievable.

Airport charges in the EU

By György Hölvényi

New rules on airport charges will be enforced after the adoption of the relative Directive by the European Parliament. The EPP-ED Group welcomes the new Directive which provides community-wide rules in order to have a well-functioning, non-discriminatory, transparent and comprehensive procedure for calculating charges. The Directive aims to prevent any abuse of a dominant position in the market by individual airports, and it also seeks to contribute to a balanced development of the European air transport sector.

There are three main points in this proposal. First of all, it paves the way for further investment in airports. If the airport managing body informs the airport users five years before a new airport infrastructure becomes operational, the airport may assert its interest through pre-financing when airport charges are set.

Secondly, airlines and airport service providers should conclude a general service agreement, establishing quality standards for the service offered to passengers.

Last but not least, a threshold is set for the airports which are included in the scope of the Directive: these are airports that have at least 5 million passengers per year, or more than 15% of the total number of passengers per year in the Member State concerned.

Zsolt Becsey (HU), Member of the Transport and Tourism Committee and Shadow Rapporter said: "The new Directive is a good compromise." During his speech in the plenary session he also pointed out that "it is right that the Transport Committee was focusing only on those principals that are really necessary for not having different practices in the Member States regarding different price-fixing systems. Transparency will be the biggest benefit of the new Directive, reinforcing the trust of the citizens", concluded Becsey.

Parliament adopts Consumer Credit Directive

By Knut Goelz

The main purpose of the Consumer Credit Directive is to create easier access to cross-border consumer credit. At present, such credit accounts for less than one percent of private loans in the European Union. The Parliament, Council and Commission agreed that more and better information is needed so that consumers can benefit from the internal market in the financial sector as well.

EP Rapporteur Kurt Lechner (D), however, rejects new red tape and higher credits costs due to over-regulation. Safeguards such as information rights should therefore remain limited to the core aspects consumers and banks must know about: "Consumers must be able to judge and compare credit offers in the European Union. Banks must be able to ensure that the consumer can pay back his loan. Then the Consumer Credit Directive serves consumer protection."

The European Parliament has achieved substantive improvements of the first draft of the Consumer Credit Directive. It could negotiate a number of simplifications and it could cut back red tape and bureaucracy. It was also possible to leave Member States more freedom with regard to premature repayment of loans. While the Council compromise wanted to limit compensation for early repayment to one percent, Member States will now be allowed to foresee a higher compensation. On the other hand, repayments of up to €10.000 per year will be exempt from any compensation. Additional positive results are a common modus to calculate costs and interest in the European Union as well as harmonised legal provisions for consumer credits.

Slovenian Presidency Programme

Klemen Žumer

This week marked the official presentation of the programme and priorities of the Slovenian Presidency. Slovenia is in office for the first half of 2008 and is the first former communist Member State to have taken over the Presidency of the European Union. EPP-ED Chairman Joseph Daul (F) expressed his confidence that Slovenia's great economic drive will be an asset for the 27 member countries of the Union.

Daul called on Member States to pursue and complete the ratification process of the new Reform Treaty, as well as expressed satisfaction that the Slovenian Presidency will focus on five priority areas: the timely implementation of the Reform Treaty, a successful launch of the new Lisbon Strategy cycle, a step forward in climate change and energy, underscoring the European perspective of the Western Balkans and Intercultural dialogue.

President of the European Parliament Hans-Gert Poettering (D) praised Slovenia on the progress and expressed the wish of the European Parliament for a very successful presidency. Commission President José Durão Manuel Barroso pointed out that Slovenia is a great example of success and that Slovenia and Slovenians are 'symbols of the struggle for freedom'. He stated that this enforces his 'full belief that [the 2004] enlargement is indeed one of the greatest achievements of the EU.'

Many EPP-ED Members participated in the debate recognising the importance of all the presented priorities for the European Union.

Cross-border loss relief - an important step towards a working home market

By Antii Timonen

The European Parliament has adopted - with a clear majority - Piia-Noora Kauppi's (FI) report on off-setting cross-border losses of companies and called on the Commission to propose such legislation.

Currently, the tax treatment of a group of companies operating within a single Member State is heavily preferential compared to a cross-border situation. Within a single Member State, a company can usually off-set losses incurred by its branches and subsidiaries in the taxation of the parent company. However, in the case of branches and subsidiaries in other Member States, the national legislations vary considerably. In most cases, if consolidation of losses for tax purposes within the same group is possible, it may occur with considerable delays.

The discrepancies have grave consequences for the proper functioning of the internal market by distorting investment decisions and constituting barriers to entering some markets, while tending to unfairly favour larger markets, where losses can more easily be absorbed. The current situation particularly hampers SMEs' capacity to expand, as they frequently incur start-up losses which they are not able to off-set to the parent company. The existence of differing Member State legislation obviously also increases compliance costs, ill-afforded by SMEs and conducive to tax engineering with larger companies. The adopted report calls for the possibility to off-set losses of the cross-border subsidiaries within the same tax year.

The EPP-ED Group supports the view that the tax domain is one where there is still work to be done to make the most of the internal market. This does not imply harmonising tax rates; rather, the Group views tax competition as a healthy feature of the economy. However, it does imply legislating to facilitate cross-border business and establishing a level playing field where investments are based on undistorted economic benefits. In the same report, the Parliament decided to encourage the Commission to push ahead with the Common Consolidated Corporate Tax Base as a longer term solution.

Enhanced regional co-operation in the Black Sea region

By Delia Vlase

The report on Black Sea co-operation authored by Roberta Anastase MEP (RO) is a European Parliament initiative to bring a new approach to regional policy and to ask the European Commission for measures and action.

"With the accession of Bulgaria and Romania to the EU, the Black Sea has become a European sea. Opportunities for co-operation with the region and within the region have increased. In my report, I call for a coherent and effective regional policy approach targeted at key priority areas such as enhancing the security and stability situation in the region, promoting effective democracy and co-operation in fields of energy, transport, trade and education", stated the Rapporteur Roberta Anastase.

The report - adopted with a large majority - welcomes the Commission's Communication entitled 'Black Sea Synergy - A New Regional Co-operation Initiative' and the aim of enhancing co-operation with and within the Black Sea region by a new regional approach. The report states that the new regional approach should be targeted at a number of priority areas for which the Commission should provide a detailed Action Plan envisaging concrete, objective benchmarks and follow-up and constituting a basis for enhancing the EU's relations with the region as well as inter-regional co-operation. It finally stresses that the objectives specified in the report should represent an integral and coherent part of the broader EU foreign policy towards the neighbouring countries and countries participating in the Black Sea regional strategy.

Improved rules on export of chemicals

By Gunnar Larsson

Renewed and improved - this describes a piece of legislation passed by Parliament for the second time round. A Regulation on the export and import of dangerous chemicals previously adopted was rejected by the Court of Justice, which ruled there should have been a dual legal basis.

Along with the European Commission, Frieda Brepoels (B), Member of the Committee on the Environment, Public Health and Food Safety and Shadow Rapporteur, grasped the opportunity given by this second round to improve the Regulation.

Previously, exporting European countries had to ask importing countries for permission before selling certain substances. This procedure of "explicit consent" has been costly and bureaucratic. Now, export without explicit consent will be possible.

"I am convinced that in some cases, a greater flexibility has been achieved not only to secure European export, but also to guarantee the best possible protection of the environment and public health. Certain hazardous chemicals will be possible to export without explicit permission or consent, but under very strict conditions", Brepoels said.

"I think the wording in the agreement guaranteeing the safe export of substances has even been strengthened. This was achieved by deleting part of the Commission's original text."

"As Shadow Rapporteur, I am convinced we have reached a balanced and workable compromise together with the Council and Commission", Brepoels said.

Avril Doyle (IE), also a Member of the Committee on the Environment, Public Health and Food Safety, called for tidier legislation and voiced her concern about uncertainty regarding legal bases and the trouble some legislation seemed to cause the Parliament.

Social security of migrant workers in the EU

By Živilė Didžgalvienė

The European Parliament has adopted a report by Csaba Őry (HU) updating the Regulation on the application of the social security schemes of workers moving within the Community. The legislative act takes into account the changes in the social security legislation in some EU States such as Ireland, Hungary, Poland, the Netherlands and Austria and ensures the efficient coordination among the different countries on social security benefits.

"The modernisation and constant development of social security coordination is a key issue in the European Union, all the more since it has a direct impact on the lives of many citizens moving between the Member States and looking for new jobs", emphasised Őry.

The Regulation plays an important role in the realisation of one of the fundamental freedoms of the EU - the free movement of people - and enables EU citizens moving from one Member State to another to enjoy their social security benefits granted by the country of origin.

"The role of the European institutions consists of granting legal certainty to migrant workers within a constantly changing world. For this reason, small details can become of the utmost importance and have to be taken care of. This is one of the essential legislative tasks the European Parliament has to assume", concluded Őry.

Broad majority for action programme on lifelong learning

By Knut Goelz

The importance of adult education will increase further as a result of demographic change in the European Union. This was pointed out by Doris Pack (D), EPP-ED Rapporteur on the action programme on 'Lifelong Learning': "Economic and social change in the European Union requires the constant development of qualifications and skills in professional life. Therefore, ensuring employability through lifelong learning and improving people's motivation to participate in adult education must be made a particular priority."

The plenary of the European Parliament approved this own-initiative report on lifelong learning by a large majority thus acknowledging the fact that education is an important factor also for personal development, social integration and cross-cultural dialogue. Further important aspects are a better work-life balance as well as between cultures and generations. There is, for instance, also a substantial need for action regarding working times, flexible time accounts or the transfer of knowledge and skills. The special needs of migrants must also be taken into account in this overall action plan. Learning the language of the host country is of particular importance to migrants, whereas all other citizens should get the chance to learn the language of a neighbouring country and at least one international language.

European Parliament adopts report on EU strategy on rights of the child

By Atilla Agárdi

Edit Bauer (SK), Shadow Rapporteur for the EPP-ED Group on the report on the EU Strategy on the Rights of Child, has expressed her satisfaction at the adoption of the report.

The Shadow Rapporteur has highlighted some urgent issues that have to be solved. The demographic crisis revaluates every child's life. The rate of child poverty continues to be appalling. The report stresses that the European Communities cannot overlook the growing phenomena of child trafficking either, especially the situation of thousands of street children and homeless children across the Member States.

While the European Community has no internal legal act to ensure the rights of the child, the responsibility of the Community to observe the rights of the youngest generation is indisputable.

According to the Lisbon Treaty, children's rights are guaranteed by Article 24 of the Charter of Fundamental Rights. This report is the first step by the EU institutions, including the EP together with Member States, to take serious steps towards the improvement of the situation of children. Edit Bauer also stresses the importance of stepping up efforts by Member States in order to launch the unique European children's helpline 11600.