Professional Documents
Culture Documents
July 2013
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N14 18th July 2013 SECTORAL POLICIES 1. Agriculture and Fisheries...........................................................................................................................................2 2. Defence ..............................................................................................................................................................................3 3. Energy and Environment ...........................................................................................................................................4 4. Financial Services ..........................................................................................................................................................5 5. Food and Beverage .......................................................................................................................................................6 6. Healthcare and Pharmaceuticals ............................................................................................................................8 7. Information and Communication Technology ..................................................................................................8 8. Media ............................................................................................................................................................................... 10 9. Sports and Gambling ................................................................................................................................................. 10 10. Transport .................................................................................................................................................................... 11
CROSS-SECTORAL POLICIES 11. Competition ............................................................................................................................................................... 13 12. Consumer .................................................................................................................................................................... 14 13. Intellectual Property and Copyright ................................................................................................................ 14 14. Research and Development................................................................................................................................. 15 15. Taxation ....................................................................................................................................................................... 15 16. Trade ............................................................................................................................................................................. 16
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SECTORAL POLICIES
1. Agriculture and Fisheries
Political agreement on CAP reform After months of negotiations, the European Commission, the Council of the EU and the European Parliament reached on 26 June political agreement on the reform of the Common Agricultural Policy (CAP). Based on the European Commissions proposal of October 2011, the agreement relates to four Regulations concerning direct payments, single common market organisation, rural development, as well as financing, managing and monitoring the CAP. The most important elements of the agreement include the following: Convergence: the CAP budget will be distributed in a way so as to ensure that no Member State receives less than 75% of the EU average by 2019. Within a given Member State, aid per hectare will have to amount to at least 60% of the average of the aid disbursed by 2019 in a single administrative area Active farmers and young farmers: the reform tightens the rules to ensure that only active farmers will receive payments. In order to encourage young farmers to set up a business, the basic payment awarded to new entrant young farmers under 40 will be topped up by an additional 25% for the first five years of installation. Coupled payments: Member States will have the option of providing coupled payments (payments linked to a specific product), which will be limited to 8% of the national envelope if the Member State currently provides coupled support or to up to 13% if the current level of coupled support is higher than 5%. Sugar quotas: sugar quotas will be abolished by 2017. Greening: 30% of direct payments will be linked to three environmentally-friendly farming practices, namely maintaining permanent grassland, crop diversification and maintaining an ecological focus area.
The agreement still has to be formally approval by the European Parliament and the Council of the EU. The new rules will take effect as of 1 January 2014. EMFF: Council of the EU adopts general approach On 15 June, the Council of the EU reached agreement on a full general approach to the proposal for a Regulation on the European Maritime and Fisheries Fund (EMFF), the third and last component of the reform of the Common Fisheries Policy (CFP). This agreement finished the work started in October 2012 when the Council of the EU adopted a partial general approach on the technical aspects of the proposal. The negotiations particularly focused on Articles 15 to 17 of the proposed Regulation, which deal with budgetary resources under shared and direct management as well as financial distribution for shared management "allocation criteria", as well as Article 101 on sanctions. Some of these issues had been left open in October, pending an agreement on the next multiannual financial framework for the period 2014-2020 among the EU institutions. This agreement was reached in June and sets a budget of 6.574 billion for the EMFF.
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Only the funds under shared management, namely 5.526 billion, were to be apportioned, because Member States are free to manage on their own the share of the funds under direct management allocated individually to them. Of the 5.526 billion to be apportioned, 4.385 billion will go to the sustainable development of fisheries and aquaculture, and at least 482 million to CFP implementation and monitoring. Data collection will receive 344 million. A maximum of 45 million will be reserved for storage aid. Member States also agreed to maintain aid for vessel modernisation, engine upgrading, the purchase of more selective gears, improved working conditions, as well as the reintroduction of fleet reduction aid, support for young fishermen and the historic criterion (taking account of the use of funds during the previous programming period) for the allocation of funds. On the basis of this full general approach, the Council of the EU can start negotiations with the European Parliament in autumn. The EMF Regulation and the other two Regulations forming the CFP reform package (Regulation on the basic provisions of the CFP and Regulation on the common market organisation) are expected to become operational in January 2014.
2. Defence
Arms export: MEPs calls for uniform application of Council Common Position Meeting in Strasbourg on 4 July, the European Parliament adopted by a large majority a Resolution on the implementation of Council Common Position 2008/944/CFSP defining common rules governing control of exports of military technology and equipment. This Common Position lays down eight criteria that must be met for the provision of an arms export licence: respect for the Member States international obligations and commitments; respect for human rights and international humanitarian law in the destination country; the internal situation in the destination country; the preservation of regional peace, security and stability; national security; and the risk of diversion or re-export. In their Resolution, MEPs note that these criteria are applied and interpreted very differently in the Member States, and thus called for a more uniform interpretation and implementation of the Common Position with all its obligations. MEPs also expressed the view that the Common Position should contain a regularly updated, publicly accessible list indicating how far exports to certain countries comply with the criteria and that the powers of the EU Council Working Party on Conventional Arms Exports (COARM) should be increased. Leaders urged to halt military decline At the Security & Defence Day (SecDef) on 27 June, high level officials called upon European leaders to take action to reverse the decline of the EUs military capacities and to reverse the widening defence gap with the US when they meet for a special European Council devoted to defence issues in December 2013.
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A number of past and present ministers and senior officials argued that austerity measures forcing European countries to cut defence budgets should give fresh impetus to multinational cooperation in the form of pooling and sharing military capacities. Yet, they also highlighted that this so-called smart defence should not be a pretext for further cuts in defence spending. SecDef is an annual conference organised by the Security and Defence Agenda, the Compagnie Europenne dIntelligence Stratgique (CEIS), and the Konrad Adenauer Stiftung taking place in Brussels. It gathers key actors from civilian and military backgrounds to exchange ideas and to discuss the future of the security and defence policies in Europe.
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sign of its position, because it was waiting for the European Parliament to take a stance first. However, an increasing number of delegations now tend to express their support to the reform, but Germany and Spain still have not finalised their position. On 17 July, the European Commission also adopted two separate Decisions on German support schemes in favour of energy-intensive industries. First, it has concluded that a scheme compensating energy-intensive users for CO2 costs in their electricity price as of January 2013 is in line with EU state aid rules, in particular because it maintains incentives for the beneficiaries to further reduce their CO2 emissions. In contrast, the European executive found that a 2009 scheme supporting non-ferrous metal producers (aluminium, copper and zinc) for alleged ETSrelated costs was incompatible with the internal market, notably because it would have entailed serious distortions of competition to the detriment of producers in other Member States. Biofuels: ENVI Committee includes ILUC factor in the proposal On 11 July, the European Parliaments Committee on the Environment (ENVI) voted by a comfortable majority in favour of the inclusion of the ILUC factor (the production of greenhouse gas from indirect land use change) in the proposal for a revision of biofuel products. MEPs decided to cap at 5.5% the share of first generation biofuel used to reach the target of 10% of renewable energies in total energy consumption for transport by 2020 (the European Commission had suggested a 5% cap). They also set a 2% target for advanced biofuels produced from seaweed and certain types of waste, provided that this share does not deprive others sectors of raw materials, leads to an overexploitation of forests or reduces biodiversity. The inclusion of the ILUC factor was previously rejected by the European Parliaments Committee on Energy (ITRE), which set a merely indicative target. On this issue, the ENVI Committee has the lead, while the ITRE Committee has associate status. The rapporteur for the ENVI Committee, Corinne Lepage (ALDE, France), will now seek a compromise with the ITRE Committees rapporteur, Alejo Vidal Quadras (EPP, Spain), before the plenary vote in September.
4. Financial Services
European Commission proposes a Single Resolution Mechanism for Banking Union The European Commission proposed on 10 July a Single Resolution Mechanism (SRM) for the Banking Union. The aim of the proposal is to ensure that, in case of bank failures, their resolution could be managed efficiently with minimal negative impacts on the financial stability and with limited costs to the taxpayers. The SRM would apply EU-wide rules for bank recovery and resolution, due to be adopted this autumn. The SRM would work as follows: the European Central Bank (ECB) would have the responsibility of signalling cases where banks need to be resolved. A Board, consisting of representatives of the European Central Bank (ECB), the European Commission and national authorities, would prepare the bank resolution, while the execution of the resolution plan is the duty of national resolution authorities. In case of non-compliance of a national authority, the Single Supervisory Board could directly give instructions to the bank in financial difficulties. A single Bank Resolution Fund would be created in order to guarantee the availability of funding support.
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The mechanism would complement the Single Supervisory Mechanism (SSM), which should confer direct supervisory powers to the ECB in late 2014. National Ministers reiterated their will of reaching an agreement on the mechanism by the end of 2013, so that it could be adopted in the current parliamentary legislature. It would then be possible to enter into force at the beginning of 2015. Reform of CRD IV-CRR prudential rules for banks adopted After the Council of the EU formally adopted the reform of capital requirements rules for banks (CRD IV-CRR) on 21 June, the new provisions entered into force on 17 July. This reform package, built on the lessons learnt from the financial crisis, consists of a Regulation and a Directive that transpose into EU law the Basel III international rules for more stringent prudential requirements for banks. The new rules will apply to more than 8000 banks in the EU from 1 January 2014. They set stricter capital requirements and liquidity obligations for banks, namely: an additional systemic risk buffer; conditionality on the qualification of capital as high quality; increased risk oversight by boards; reinforced transparency rules; and the possibility to take temporary measures at European level to deal with systemic risks.
Member States are also allowed to apply stricter requirements if justified by national circumstances. In addition, the European Parliament succeeded in using the reform to introduce a strong restriction on bankers bonuses.
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In the wake of the horsemeat scandal, the need to tackle the shortcomings in the food supply chain and the issue of food fraud have been raised. Thus, the European Commission stressed in its action plan of March 2013 the need for developing synergies between enforcement authorities and for modernising the controls currently carried out in the EU. The two documents form an integral part of this plan, which is intended to be fully implemented by 2014. European Parliament approves new rules for food for vulnerable persons On 11 June, the European Parliament gave its approval to new strengthened rules for food for babies and young children, food for specific medical purpose, and total diet replacement for weight control. The adopted Regulation will replace various pieces of legislation in order to streamline the rules on the labelling and composition of these food products. The new legislation will soon be published in the EU Official Journal, but will only apply from 2016. This transitional period should allow businesses to adapt their commercial practices and the European Commission to adopt more detailed rules. In the meantime, the existing legislation will continue to apply and no products will have to be removed from the market. New database on food additives As of 1 June, a new list of approved additives is applied in the EU. The European Food Safety Authority (EFSA) considers the more than 370 additives to be safe, technologically justified and not misleading consumers. A rigorous re-evaluation programme has been set up with a view to ensuring the permanent safety of the additives. Consultation on Bisphenol The European Food Safety Authority (EFSA) consults on an updated and extended assessment of exposure to Bisphenol A. Stakeholders can give their views from mid-July to mid-September. At the beginning of 2014, EFSA will launch a second public consultation on the human health aspects of its risk assessment. After having thus gathered enough inputs, EFSA should be in a position to finalise its scientific opinion in the course of 2014. Consultation on food wastage With a view to reducing the annual wastage of 89 million tonnes of food, the European Commission launched on 15 July a consultation on the European food production and consumption system. Stakeholders can submit their opinion until 1 October. The European Commission plans to present ideas later this year with a strong focus on food waste in a Communication on Sustainable Food. The Communication will look at food waste and at reducing resource inefficiencies across the food chain.
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describe the information affected and the measures that will be applied, and the details of the elements companies should pay attention to when assessing whether to notify subscribers. All relevant stakeholders were involved in a public consultation in 2011, which showed the need for greater harmonisation in this field in order to ensure the timely information of consumers. The European Commission Regulation has direct effect and requires no further transposition at national level. It will enter into force two months after publication in the EU Official Journal. Stricter penalties for cybercrimes across the EU On 4 July, the European Parliament adopted by a large majority a Directive on attacks against information systems, which toughens sentences for cyber-attacks. Under the new rules, Member States will be required to set their maximum terms of imprisonment at two years minimum for illegally accessing or interfering with information systems. In addition, penalties for attacks against critical infrastructure, such as power plants, and for illegally intercepting communications will also be increased to a maximum of five years. The Directive also aims at facilitating prevention, and at boosting police and judicial cooperation. Denmark has chosen to opt out from the rules, because the country wants to keep its own system in place. Despite having opted out from EU police and criminal laws, Ireland and the UK have decided to apply the Directive. The draft Directive has already been informally agreed with the Member States and the latter are expected to formally adopt the new rules very shortly. Afterwards, they will have two years to translate them into national law. EU funding for future Internet projects On 28 June, the European Commission published a 100 million call for proposals for the Future Internet public-private partnership (FI-PPP). Around 1,000 start-ups and innovative companies will receive grants to develop applications and other digital services in fields such as energy, health, media, smart manufacturing and transport. Funding for this third and final stage of the FI-PPP will be channelled through 20 consortia, which include crowd funding platforms, venture capitalists, co-working spaces, regional funding organisations and technology companies. The winners will be selected according to how they propose maximising the impact of their financing in the internet ecosystem. The 500 million FI-PPP was launched in 2011 to help businesses and governments capitalise on the mobile Internet and data revolution, to stimulate innovation, and to create jobs in the European digital industry. The funding also forms part of the StartUp Europe project launched by the European Commission to connect European entrepreneurship ecosystems. European Commission provides 77 million to high-tech manufacturing sector SMEs The European Commission announced on 13 June that it will contribute 77 million from its 7 th Research and Development Framework Programme (FP7) to an innovation initiative for the manufacturing sector.
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This so-called I4MS initiative is designed to help high-tech small and medium sized enterprises (SMEs) exploit the potential of ICT, helping their businesses to grow. It targets suppliers and users of ICT solutions, and covers innovation in four areas: advanced robot solutions; high performance cloud-based simulation services; intelligent sensor-based equipment; and innovative laser applications. I4MS, which is part of the European Commissions wider efforts to strengthen the EUs manufacturing sector, officially starts this month and will conduct more than 150 innovation experiments over the next three years. The initial set of SMEs comes from 12 Member States and five Associated Countries, with participation being expected to increase with the Calls for Experiments to be launched in 2014 and 2015.
8. Media
Consultation on converging audiovisual world In view of the rapid convergence of technologies and content in the audiovisual sector, the European Commission opened a consultation on media freedom, the independence of audiovisual regulatory bodies, the changing media landscape and borderless Internet. Stakeholders, including business representatives, viewers and internet users, are invited to share their views on the changing media landscape and borderless Internet. The questions concern in particular market conditions, interoperability and infrastructure, and implications for EU rules. On the basis of the results of the consultation, which is open until 31 August, the European Commission might explore regulatory and policy responses, including self-regulation.
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10. Transport
Railway: Progress in negotiations on the 4th Railway Package On July 11, the five rapporteurs on the proposals for a 4th Railway Package presented their views to the European Parliaments Committee on Transport (TRAN). The biggest changes to the liberalisation of the railway sector are introduced by the report of Mathieu Grosh (EPP, Belgium), who proposed to delay by ten years the opening to competition of railway lines covered by public service contracts. 90% of trains in the EU currently travel in the framework of such contracts, which are still awarded directly to operators without any call for tenders. While the European Commission had proposed to impose a tendering procedure by December 2019, Grosch suggests putting the target back to 2029 with the argument that a new legislation would undermine on-going contracts. Nonetheless, several MEPs and the European Commission remain sceptical about this approach. The deadline for tabling amendments is 16 September. They will be put to the vote in TRAN Committee on 26 November, before the plenary session scheduled for January 2014. In the Council of the EU, Member States delegations managed to adopt on 11 June a general approach on the interoperability chapter. While the European Commissions proposal granted greater powers to the European Railway Agency (ERA), delegations supported a compromise that advocates a dual approach to certification rather than a generalised centralisation of procedures through the ERA. Under the new provisions, only vehicles used in international transport will have to be certified by ERA in cooperation with national safety agencies. As for the equipment for the exclusive use of domestic purposes, Member States decided to let operators choose whether they go to the ERA or their respective national agencies. These provisions express Member States reluctance to rely on ERA, which is regarded as not having enough experiences and resources to carry out these certification tasks. Aviation: Single sky reform presented in a tense climate On June 11, the European Commission presented its proposal to review the four Regulations that make up the Single European Sky (SES), as well as the rules relevant to the European Aviation Safety Agency. The proposal comes in response to the need for limiting the fragmentation of the European sky and the fact that European airports are close to saturation point. The most controversial provision of the package is of the separation of ancillary services (weather, aeronautical information, technical maintenance and repair of radar equipment) from air traffic services per se (traffic control and flight information). According to the European Commission, these services are currently the main cost factor in air traffic management and are almost always provided by large monopolistic entities. Tendering procedures could bring down the cost of traffic management by 20%. Trade unions, however, fear that jobs will be lost and have organised protest movements in many Member States. On surveillance authorities and Eurocontrol, the package proposes to separate air traffic control operators from their regulator to guarantee the latters independence. France has already expressed doubts on this issue, as the two functions are currently exercised by the DirectorateGeneral for Civil Aviation. In addition, Eurocontrol would be strengthened to provide new services to the smaller control bodies, thus bringing large scale savings in the sector.
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While France and Germany have informed the European Commission of their reticence towards the new package, debate in the Council of the EU and the European Parliament has started in July. Consultation on new state aid rules for airports and airlines The European Commission published on 3 July a draft of revised state aid rules on the public funding of airports and start-up aid to airlines. Under the proposed rules, state aid for investment in airport infrastructure would be allowed if necessary to improve transport and the accessibility of a region. Operating aid to airports would be allowed for a transitional period of 10 years under certain conditions. Finally, start-up aid to airlines to launch a new route would be permitted if it remained limited in time. A public consultation launched the same day invites stakeholders to provide feedback on the proposal. The consultation will last until 25 September. In light of stakeholders contributions, the European Commission will adopt the revised rules at the beginning of 2014.
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CROSS-SECTORAL POLICIES
11. Competition
EU to facilitate damage claims by victims of antitrust violations The European Commission adopted on 11 June a proposal for a Directive on how citizens and companies can claim damages for infringements of EU antitrust rules. The proposal aims to make it easier for whoever has been harmed by competition law infringements to obtain damages by removing a number of practical difficulties, such as diverging national rules. The proposal sets out measures to facilitate damages actions available in Member States: National courts will be able to order companies to disclose evidence when victims claim compensation. Decisions of national competition authorities finding an infringement will automatically constitute proof before national courts that the infringement occurred. Rules on limitation periods (the period of time within which victims can bring an action for damages) and liability in cases where price increases will be clarified. Rules to facilitate consensual settlements will be put in place to allow faster and less costly dispute resolution.
In parallel, the European Commission has adopted a Recommendation encouraging Member States to set up collective redress mechanisms in order to improve access to justice for victims of violations of EU law and a Communication on quantifying antitrust harm to provide guidance to Courts. The proposal will now be discussed in the European Parliament and the Council of the EU. Once it had been adopted. Member States will have two years to transpose the provisions into national law. European Commission consults on possible improvements to EU merger control On 20 June, the European Commission opened a public consultation, which will run until 12 September, on possible future improvements to the EU Merger Regulation in two areas: minority shareholdings; and case referrals between the European Commission and the national authorities. Stakeholders are invited to give their view on whether any improvements of the current framework are necessary. Concerning minority shareholders, the European Commission raises the question of whether the Merger Regulation, which currently only applies to transactions leading to an acquisition of control over the target company, should be amended to include non-controlling minority shareholdings, which can in some cases harm competition and consumers. Concerning case referrals, the European Commission seeks input on how to streamline the system, which currently allows Member States to refer cases to the European Commission on vice versa, in order to avoid delays and to improve its effectiveness.
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12. Consumer
European Commission proposes a modernised set of rules on package holidays On 9 July, the European Commission proposed a revision of a 1990 Directive on package travels (Directive 90/314/EEC) that would bolster consumers rights. The proposal responds to a transformation of traveller practices. Indeed, the digital age has enabled holiday makers to customise their travel arrangements to their specific requirements. These customised arrangements were not covered before, but would now be protected by the Directive. Furthermore, the reform aims at bringing additional protection for consumers. The main amendments are stricter controls for price surcharges, a reinforced right to cancel a reservation, information about tour operators liabilities, guarantees of compensation in case of material or immaterial shortcomings and a single point of contact in the event of problems.
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15. Taxation
European Parliament approves Financial Transaction Tax The European Parliament on 3 July approved massively in a show-of hands vote the financial transaction tax (FTT) being developed by Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovenia, Slovakia and Spain. At the same time, it proposed amendments, with a view to harmonising tax rates, to extend the scope to spot currency transactions and to add more exemptions. However, the European Parliament only plays a consultative role. The 11 Member States have been discussing plans to introduce a financial transaction under the EUs enhanced cooperation procedure, which was authorised by the Council of the EU in January, and the European Commission adopted a corresponding proposal in February. The countries are intensively working on this proposal, because they have to agree unanimously on the design of the FTT. The intention is to introduce this tax in 2014.
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European Commission proposes to extend mandatory automatic exchange of tax information On 12 June, the European Commission proposed to amend the Directive on administrative cooperation on tax matters (2011/16/EU) to apply automatic exchange of information as the general rule in the EU. The objective is to expand the scope of automatic exchange of information beyond that provided for in the Directive on administrative cooperation. The five categories of income and capital covered by the Directive and where bank secrecy will be abolished from 2015 are earned income, directors fees, life insurance products not covered by other Directives, as well as pensions and ownership of, and income from, immovable property. The proposal extends the list to dividends, capital gains, other financial income and account balances. The proposal forms part of the measures taken by the European Commission to increase transparency and to fight tax evasion in Europe. Finance Ministers adopt package combatting VAT fraud The ECOFIN Council adopted on 21 June two Directives aimed at combatting VAT fraud. The first Directive will expand the list of goods and services to which a reverse charge mechanism can be applied, while the second Directive seeks to create a quick reaction mechanism to tackle cases of sudden and massive VAT fraud that can occur in other undetermined sectors. The Directives lay down a sunset clause, which stipulates that the reverse charge mechanism and the quick reaction mechanism will end on 31 December 2018, unless a prolongation is unanimously agreed by the Council of the EU.
16. Trade
TTIP: EU and US conclude first round of negotiations On 12 July, EU and US negotiators concluded the first round of negotiations on the Transatlantic Trade and Investment Partnership (TTI). This round, which started on 8 July in Washington, was meant to be a warm-up session before substantive talks will be held at a later stage. 15 different working groups were set up during the week to discuss approaches and ambitions on a wide array of topics, including government procurement, investment, energy and raw materials, regulatory issues, intellectual property, as well as dispute settlement and competition. The first round of talks followed the official launch of the negotiations announced on 17 June. Beforehand, the Member States had agreed to give the European Commission the green light to start negotiations and defined their negotiating mandate. The start of TTIP talks had been threatened by revelations that the US secret service had wiretapped EU buildings in Brussels and Washington, but on 4 July the EU decided that the first round of negotiations should not be delayed. At the same time, the European Commission made clear that it expects that the oversight of intelligence activities, intelligence collection, as well as the question of privacy and data protection will be discussed in the relevant working groups.
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The aim of the TTIP is to liberalise trade and investment between the two blocs, with the reduction of non-tariff barriers being a key element of transatlantic liberalisation. According to a report published by the European Commission in March 2013 and entitled Reducing Transatlantic Barriers to Trade and Investment, the TTIP could increase EU exports to the US by 28%, equivalent to an additional 187 billion worth of goods and services exports. This would translate to an extra 545 in disposable income each year for a family of four in the EU. The second round of negotiations will take place in Brussels during the week of 7 October and a third round should be scheduled before the end of 2013. The aim is to conclude the deal by the end of 2014. EU takes Russia to WTO over car levy After having for eleven months threatened to take action against Moscow, the EU on 9 July officially requested consultation over a recycling fee imposed by Russia on imports of vehicles at the World Trade Organisation (WTO). According to the EU, the fee that was introduced in September 2012 is discriminatory, because it does not only concern almost exclusively imports and not domestic production, but also because Belarus and Kazakhstan, which form a customs union together with Russia, are exempted from paying the fee. The EU also argues that this fee is progressive, as it illegally differentiates between new and old cars, ranging from 420 for the former to up to 17,200 for the latter. Russia has until 19 July to respond to the EUs request for consultation and both sides have 60 days to reach a satisfactory solution through consultation before the EU can request the WTO to set up a panel to rule on the legality of the Russian fee. The EU hopes to find a solution and has good reasons to believe that a positive outcome is possible, because the Kremlin has in May presented an amended bill to Russias parliament, which would level the playing field by imposing the tax on all exporting countries, as well as domestic production. Solar panels: EU and China close to reaching settlement A settlement between the European Commission and the Chinese authorities concerning duties imposed by the EU on imports of solar panels originating from China is increasingly likely to be reached soon. On 4 June, the European Commission had decided to impose temporary customs duties on imports of solar panels originating from China. Starting at 11.8% until 6 August, the rate will subsequently go up to around 47%. The European Commissions strategy to apply low duties for a two-month period, which was meant to pressure China to come to the negotiating table, seems to work: on 5 July, China put forward a proposal for a deal that could potentially end the dispute. Under this proposal, China would limit its exports of photovoltaic modules to the EU to ten gigawatts per year and impose a minimum price of around 0.5 per watt, which is the actual cost of production. The European Commissions decision on whether or not to accept the Chinese proposal is expected next week.
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