Press release - 3147th COMPETITIVENESS Council meeting (provisional version)- Brussels, 20 and 21 February 2012 - Main contents
COUNCIL OF THE EUROPEAN UNION
PROVISIONAL VERSION
items taken on 20 February only PRESSE 56 PR CO 8
PRESS RELEASE
3147th Council meeting
Competitiveness (Internal Market, Industry, Research and Space)
Brussels, 20-21 February 2012
President Mr Ole SOHN
Minister for Business and Growth of Denmark
PROVISIONAL VERSION
20.-21.II.2012
Main results of the Council
The Council discussed the Europe 2020 strategy for growth andjobs in relation to the Commission's Annual Growth Survey, in preparation of the EU Spring summit on 1 and 2 March.
It held public deliberations on three priority areas, included in the Single Market Act, which are designed to help EU companies increase their competitiveness and their ability to create jobs:
- the reform of accounting rules, with a specific focus on a proposal for transparency on payments made to governments;
- the modernisation of the public procurement policy; and
- the improvement of SME's access to finance through the establishment of an EU passport for the managers of venture capital funds and social entrepreneurship funds.
The Council adopted conclusions on the smart regulation agenda, which is aimed at simplifying the regulatory environment in which EU enterprises operate, with a strong focus on end users.
Delegations also took note of information by the Presidency on the state of play concerning the patents package.
PROVISIONAL VERSION
CONTTS1
20.-21.11.2012
PARTICIPANTS................................................................................................................................4
ITEMS DEBATED
ANNUAL GROWTH SURVEY: PREPARATIONS FOR THE SPRING EUROPEAN COUNCIL............................................................................................................................................7
REFORM OF PUBLIC PROCUREMT POLICY..........................................................................9
REVIEW OF ACCOUNTING REQUIREMTS FOR COMPANIES..........................................11
VTURE CAPITAL FUNDS AND SOCIAL TREPREURSHIP FUNDS.........................13
SMART REGULATION AGDA - Council conclusions..............................................................14
ANY OTHER BUSINESS.................................................................................................................15
OTHER ITEMS APPROVED
TRANSPORT
— Interoperability of European railways - telematics applications for freight services.............................................16
— Common rail safety targets....................................................................................................................................16
FOOD LAW
— Food colours - Control of dioxins and other contaminants in foodstuffs...............................................................17
CULTURE
— European Heritage Label panel - Appointments....................................................................................................17
Where declarations, conclusions or resolutions have been formally adopted by the Council, this is indicated in the heading for the item concerned and the text is placed between quotation marks. Documents for which references are given in the text are available on the Council's Internet site (http://www.consilium.europa.eu)
Acts adopted with statements for the Council minutes which may be released to the public are indicated by an asterisk; these statements are available on the Council's Internet site or may be obtained from the Press Office
PROVISIONAL VERSION
20.-21.II.2012
PARTICIPANTS
Belgium:
Mr Johan VANDE LANOTTE Mr Jean-Marc NOLLET Mr Kris PEETERS
Mr Paul MAGNETTE
Bulgaria:
Ms Julieta HUBOVA Mr Peter STEFANOV
Czech Republic:
Mr Martin TLAPA Mr Ivan WILHELM
Denmark:
Mr Ole SOHN
Mr Morten 0 S TERG AARD
Mr Michael DITHMER
Germany:
Mr Peter LflNTZE
Ms Birgit GRUNDMANN Mr Georg SCHÜTTE
Estonia:
Mr Gert ANTSU Ireland:
Mr Richard BRUTON Mr Sean SHERLOCK
Greece:
Mr Andreas PAPASTAVROU Spain:
Ms Carmen VELA
Mr José Pascual MARCO MARTINEZ France:
Mr Jean LEONETTI
Mr Philippe LEGLISE-COSTA Italy:
Mr Enzo MOAVERO MILANESI Mr Francesco PROFUMO
Cyprus:
Mr George ZODIATES Latvia:
Mr Daniels PAVLUTS Ms Mareks GRUSKEVICS
Deputy Prime Minister and Minister for the Economy, Consumers and the North Sea
Vice-President and Minister for Children, Research and the Civil Service
Minister-President of the Flemish Government and Flemish Minister for the Economy, Foreign Policy, Agriculture and Rural Policy
Minister for Public Undertakings, Science Policy and Development Cooperation, with responsibility for the Large Cities
Deputy Minister for Economy, Energy and Tourism Deputy Permanent Representative
Deputy Minister of Industry and Trade
Deputy Minister for Research and Higher Education
Minister for Business Affairs and Growth Minister for Science, Innovation and Higher Education Permanent Secretary of State, Danish Ministry of Economic and Business Affairs
Parliamentary State Secretary to the Federal Minister for
Economic Affairs and Technology
State Secretary, Federal Ministry of Justice
State Secretary, Federal Ministry of Education and
Research
Deputy Permanent Representative
Minister for Jobs, Enterprise and Innovation Minister of State with responsibility for Research and Innovation (Departments of Jobs, Enterprise and Innovation and Education and Skills)
Deputy Permanent Representative
State Secretary for Research, Development and Innovation Deputy Permanent Representative
Minister with responsibility for European Affairs, attached to the Ministre d'Etat, Minister for Foreign and European Affairs
Deputy Permanent Representative
Minister for European Affairs
Minister for Education, Universities, and Research
Deputy Permanent Representative Minister of Economics
State secretary, Ministry of Education and Science
PROVISIONAL VERSION
20.-21.11.2012
Lithuania:
Mr Giedrius KADZIAUSKAS Ms Nerija PUTINAITE
Luxembourg:
M. Etienne SCHNEIDER Ms Michèle EISBARTH
Hungary:
Mr Zoltan CSÉFALVAY
Malta:
Mr Jason AZZOPARDI
Netherlands:
Mr Derk OLDBURG
Austria:
Mr Karlheinz TÖCHTERLE Mr Harald GÜNTHER
Poland:
Ms Barbara KUDRYCKA Mr Andrzej DYCHA
Portugal:
Mr Carlos OLIVEIRA
Ms Maria Leonor PARREIRA Romania:
Mr Dragos Mihael CIUPARU
Mr CristianBADESCU
Slovenia:
Mr Uros VAJGL
Slovakia:
Mr Peter .TAVORCIK Finland:
Mr Lauri IHALAIN Mr Jyri HAKAMIES
Sweden:
Ms Ewa BJÖRLPNG Mr Stefan ATTEFALL Mr Peter HONETH
United Kingdom:
Mr Norman LAMB
Mr Andy LEBRECHT
Vice Minister of Economy
Deputy Minister for Education and Science
Minister for Economic Affairs and Foreign Trade Représentant Permanent adjoint
Minister of State for Strategic Affairs, Ministry for National Economy
Minister for Fair Competition, Small Business and Consumers
Deputy Permanent Representative
Federal Minister for Science and Research Deputy Permanent Representative
Minister for Science and Higher Education Deputy Minister of Economy
State Secretary for Entrepreneurship, Competitiveness and Innovation
State Secretary for Science
State Secretary, President of the National Authority for
Scientific Research
Deputy Permanent Representative
Deputy Permanent Representative
Deputy Permanent Representative
Minister ofLabour
Minister od Economic Affairs
Minister for Trade
Minister for Public Administration and Housing State Secretary responsible for higher education and research, Ministry of Education
Minister for Employment Relations, Consumer and Postal Affairs
Deputy Permanent Representative
Commission:
Mr Antonio TAJANI Vice President
Mr Michel BARNIER Member
Ms Androulla VASSILLIOU Member
Ms Maire GEOGHEGAN-QUINN Member
PROVISIONAL VERSION
20.-21.II.2012
The Government of the Acceding State was represented as follows:
CROATIA
Mr Zeljko JOVANOVIC
Ms Tamara OBRADOVIC MAZAL
Minister of Science, Education and Sports Deputy Minister of Economy
PROVISIONAL VERSION 20 -21 112012
ITEMS DEBATED
ANNUAL GROWTH SURVEY: PREPARATIONS FOR THE SPRING EUROPEAN COUNCIL
The Council discussed the Annual Growth Survey 2012, as a part of all relevant Council deliberations in preparation for the Spring European Council on 1 and 2 March
It put emphasis on the measures that, under the remits of the Competitiveness Council, can improve the economic performance and create added value on both short and long term, including:
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-the promotion of competitiveness through sustainable growth, which implies concrete deliverable actions by the Digital Single Market and the internal market for services, as well as helping EU companies in developing their external trade potential;
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-to facilitate access to finance to European companies, which includes increasing the use of financial instruments such as loan guarantees and venture capital investments; and
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-modernising the public administration, namely by simplifying the business regulatory environment and by facilitating e-Government initiatives
Last November the Commission published the Growth Survey for 2012, which is an analysis of the progress on the Europe 2020 targets for the creation of economic growth and jobs
In order to encourage growth and competitiveness, the communication recommends that EU and national level efforts should focus on the following five priorities: pursuing differentiated, growth-friendly fiscal consolidation; restoring normal lending to the economy; promoting growth and competitiveness; tackling unemployment and the social consequences of the crisis; and modernising public administrations
PROVISIONAL VERSION
20.-21.II.2012
The Annual Growth Survey launches the European semester, which makes part of a new governance architecture to review member states' budgetary and structural policies in order to detect inconsistencies and emerging imbalances. The aim is to reinforce coordination while major budgetary decisions are still under preparation
The Spring European Council will identify the main economic challenges facing the EU and give strategic advice. Taking this guidance into account, the member states will present their budgetary strategies in their stability and convergence programs. At the same time, they will draw up national reform programs setting out the action to be undertaken to strengthen their policies in several areas
PROVISIONAL VERSION
REFORM OF PUBLIC PROCUREMT POLICY
20.-21.II.2012
The Council held an orientation debate on the modernisation of the public procurement policy
It was the first ministerial debate since the presentation by the Commission, in December 2011, of the proposals for a major overhaul of public procurement rules across the EU
The outcome of the debate provides guidance for the continuation of technical work. The intermediate target is to reach an agreement on the main principles of the reform at the Competitiveness Council in May, with the final purpose of getting the reform approved in co-legislation with the European Parliament before the end of 2012
The three proposals for modernising public procurement are:
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-a draft directive setting up the new legislative framework (replacing directive /EC) ():
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-a draft directive on procurement by entities operating in the water, energy, transport and postal services (replacing directive /EC) (): and
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-a draft directive on the award of concession contracts ().
The revision of the current public procurement rules, which date back to 2004, is one of the twelve key priority actions contained in the "Single Market Act1,1
The debate focused on the new general legal framework. More specifically, it concentrated in two aspects put forward by the Presidency ():
1 http://ec.europa.eu/internal market/smact/index en.htm
PROVISIONAL VERSION
20.-21.II.2012
1. The degree offlexibility that should apply in the use of competitive procedures with negotiation.
A majority of delegations stated that it should be possible a larger use of negotiated procedures in public contracts, and that certain safeguards should also be put in place in order to guarantee equal treatment for tenders. Some other delegations would prefer a limited use to this procedure in accordance with the Commission proposal
Compared to the current rules, the Commission proposes to increase the list of cases in which member states may allow for the competitive procedure with negotiation, but not at to the extent to provide for unrestricted access to this procedure
2. Rules for certain categories of services: social, cultural, health, etc.
Many of delegations emphasised that the new system should reach the right balance between promoting efficiency through competition in contract awards and delivering on the objective of lighter public procurement rules for certain services
The Commission proposes to abolish the current distinction applying to certain services that can be externalised (social, cultural, health, education, etc.), so that standard rules would apply to all services unless explicitly exempted
PROVISIONAL VERSION 20 -21 112012
REVIEW OF ACCOUNTING REQUIREMTS FOR COMPANIES
The Council held an orientation debate on the review of the accounting rules applicable to EU companies, specifically dealing with reporting on payments to governments
The outcome of the debate provides guidance for the continuation of technical work with the purpose is to reach an agreement on the simplification of the accounting requirements directive by the end of 2012, in line with a request made by the European Council
The proposal for payments to goverments (also referred to as country-by-country reporting) is part of the Commission's "socially responsible business" strategy. It is therefore included in the draft directive that will replace the current "accounting directives" ().
The "accounting directives" deal with the annual and consolidated financial statements of limited liability companies in Europe. These are:
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-the Fourth Council Directive on the annual accounts of certain types of companies (78/660/EEC), of 25 July 1978), and
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-the Seventh Council Directive on consolidated accounts (83/349/EEC), of 13 June 1983
The new draft directive, which was presented last December as part of the priority actions of the Single Market Act, is to be approved in co-decision with the European Parliament
The key objectives of the proposed review are:
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-the reduction of administrative burden and the application of simplified accounting rules for SMEs;
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-to increase the clarity and comparability of financial statements; and
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-to enhance transparency on payments made to governments by the extractive industry and loggers of primary forest
Based on a Presidency questionnaire (), the discussion focused on the last-named objective
PROVISIONAL VERSION
20.-21.II.2012
In order to promote governments' accountability, transparency and good governance, the proposal introduces new reporting requirements for large undertakings and all public interest entities active in the extractive industry or in the logging of primary forests. The draft directive proposes that these companies shall disclose the payments they make to governments in each country where they operate and for each project
The ministerial discussion showed that there is a clear acceptance of the objective to improve transparency in this field. Some delegations, however, expressed the need to examine the proposal in more detail as well as the need to take into consideration every angle of the impact that the proposed legislation will have on the competitiveness of European undertakings
A large number of delegations expressed concerns about reporting on a "project" level. In addition, most delegations expressed preference to include a definition of "materiality" in the future directive
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PROVISIONAL VERSION 20 -21 112012
VTURE CAPITAL FUNDS AND SOCIAL TREPREURSHIP FUNDS
The Council held an orientation debate on draft regulations concerning European Venture Capital Funds () and European Social Entrepreneurship Funds ().
The proposals were submitted last December and are part of the Single Market Act and of the Commission's action plan to improve access to finance for SMEs ().
Ministers endorsed the overall objective of the proposals and committed to a swift calendar for starting negotiations with the European Parliament, with a view to reaching an agreement by June 2012, as requested by the European Council ().
The overall objective of the proposals is to foster the growth of SMEs by improving their access to finance through the establishment of an EU wide passport to venture capital fund (EuVECA) and social entrepreneurship fund (EuSEF) managers in relation to the marketing of their funds
The proposals introduce uniform requirements for the managers of collective investment undertakings that want to operate under the EU wide passport. They introduce requirements as to the investment portfolio, investment techniques and eligible undertakings that a qualifying fund may target. They also introduce uniform rules on which categories of investors a qualifying fund may target and on the internal organisation of the managers that market such qualifying funds. Identical substantive rules across the EU will help create a level playing field for all market participants
The Commission introduced separate draft regulations for EuVECA and EuSEF, as the nature of these two types of funds are different. EuVECA normally focus on providing equity finance to SMEs in the start-up phase of business, whereas EuSEF often have a larger range of qualifying investment tools available, such as combined public and private sector finance, debt instruments or small loans
Venture capital funds are operators that provide mostly equity finance to companies that are generally very small, in the initial stages of their corporate development. In the EU, venture capital funding has high, but largely unexploited, potential. SMEs backed by venture capital can create high-quality jobs, as venture capital supports the creation of innovative businesses
PROVISIONAL VERSION
20.-21.II.2012
SMART REGULATION AGDA - Council conclusions
The Council adopted conclusions () on a future smart regulation agenda with a strong focus on end-users: businesses, especially SMEs and micro-enterprises, consumers, public administrations, etc
By means of these conclusions, the Council will call on the Commission to further improve the smart regulation agenda by, among other things, keeping end-users in mind and involving them in evaluations of regulation in order to identify excessive burdens, inconsistencies, obsolete and ineffective measures, in order to reduce unnecessary regulatory burden
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PROVISIONAL VERSION
20.-21.II.2012
ANY OTHER BUSINESS Unitary patent protection
The Presidency recalled the statement made on 30 January by the heads of state and government of the member states participating in the enhanced cooperation for the creation of unitary patent protection to reaching a final agreement on the last outstanding issue in the patent package at the latest in June 2012 (5/12. point 4).
It highlighted the significant benefits that the new system will provide to the European companies in terms of innovation potential, economic savings and legal certainty, and committed to strive for facilitating a final compromise
Several delegations and the Commission urged the finalisation of a draft agreement by the member states for establishing a Unified Patent Court
Last December the Council and the Parliament reached a provisional agreement on the two draft regulations implementing enhanced cooperation in the area of unitary patent protection
The third pillar of the patent system, the creation of a Unified Patent Court that would judge patent litigation cases, is still pending of final agreement on the seat of the Court
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PROVISIONAL VERSION
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OTHER ITEMS APPROVED TRANSPORT
Interoperability of European railways - telematics applications for freight services
The Council decided not to oppose the adoption by the Commission of a regulation amending the technical specification for interoperability relating to the subsystem "telematics applications for freight services" of the trans-European rail system ().
The amendment updates the modalities of application of this technical specification and the rules on management of change, to be applied by railway undertakings, infrastructure managers and wagon keepers
The draft regulation is subject to the regulatory procedure with scrutiny; now that the Council has given its consent, the Commission may adopt it, unless the European Parliament objects
Common rail safety targets
The Council decided not to oppose the adoption by the Commission of a decision on common safety targets for the rail system ().
The common safety targets (CSTs) define the safety levels that must at least be reached by the rail system, expressed in quantitative risk acceptance criteria for different risk categories such as risks to passengers, staff, level crossing users or the society as a whole
The decision is based on the experience gained from the implementation of a first set of CSTs, which were adopted in 2010 and are now to be replaced by this second set
The draft legal act is subject to the regulatory procedure with scrutiny; now that the Council has given its consent, the Commission may adopt it, unless the European Parliament objects
PROVISIONAL VERSION
20.-21.II.2012
FOOD LAW
Food colours - Control of dioxins and other contaminants in foodstuffs
The Council decided not to oppose the adoption by the Commission of two draft regulations:
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-amending annex II to regulation as regards the conditions of use and the use levels for the food colours Quinoline Yellow (E 104), Sunset Yellow FSF/Orange Yellow S (E 110) and Ponceau 4R, Cochineal Red A (E 124) (/11 REV 2); and
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-laying down methods of sampling and analysis for the official control of levels of dioxins, dioxin4ike PCBs and non dioxin4ike PCBs in certain foodstuffs ().
These draft regulations are subject to the regulatory procedure with scrutiny. This means that now that the Council has given its consent, the Commission may adopt them, unless the European Parliament objects
CULTURE
European Heritage Label panel - Appointments
The Council appointed Mr Francisco Prado-Vilar, Ms Csilla Hegedüs, Ms Irma Grigaitiené and Mr Michel Thomas-Penette, as members of the European panel that will be responsible for selecting the sites to be awarded the European Heritage Label ().
The European Heritage Label may be granted to sites which have a strong symbolic - and not only esthetical - value, in terms of European history and heritage (such as monuments, natural, underwater, archaeological, industrial or urban sites, cultural objects, etc). It aims at strengthening European citizens' sense of belonging to Europe, especially among young people
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