21/12/2010 • Issue 9

Belgian EU Presidency Business Newsletter

Brussels calling
Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 In the spotlight [EU-Russia Industrialists Round Table] . . . . . . . 10
CONTENTS

Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Climate change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

General affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
In the spotlight [EU-India Business Summit] . . . . . . . . . . . . . . . . 5
EU patent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Institutional affairs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
EU Summit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Six months of Belgian Presidency of the Council of the EU. . . . 14
Hungarian Presidency of the Council. . . . . . . . . . . . . . . . . . . . . 18
Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Team presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Daily updated info on http://eupresidency.vbo-feb.be

Editorial
Looking back at a successful Belgian guidelines for the employment policies of the member
states – intended to support the realization of the targets
EU Presidency
fixed by the Europe 2020 strategy, were adopted.
The Belgian Presidency of the Council of the European Then the TTE Council (October 15) also reached a political
Union comes at an end. An excellent opportunity to outline agreement on the new Eurovignette directive. The Belgian
its major achievements relevant for the business world. Presidency prepared the United Nations Climate Change
First, an agreement was reached Conference in Cancún, where the EU spoke with one voice
between the Council, the Commission and played its role as ‘bridge builder’. Not to speak about
and the European Parliament on the the historical breakthrough realized by the Presidency to
financial supervision package, with the launch the enhanced cooperation procedure as regards
creation of four new supervisory bodies: the EU patent (also see the respective articles on the EU
the European Systemic Risk Board patent and climate change further in this newsletter).
(ESRB) for macro-prudential supervision Moreover, the Foreign Affairs Council (September 16)
and three European Supervisory authorized the signing of the free trade agreement (FTA)
Agencies (ESAs) for micro-prudential between the EU and South Korea, the most ambitious FTA
Diane Struyven,
Director of the European supervision. ever signed by the EU. Last but not least, the establishment
Department of the FEB On economic governance, the ECOFIN of the European External Action Service (EEAS), the new
Council endorsed the European semester aiming at impro- EU diplomatic service to be led by High Representative
ving economic policy coordination. In addition, measures Catherine Ashton, was also decided during the Belgian
are being taken to strengthen budgetary discipline, growth Presidency.
and macroeconomic stability. The final report of the Task Finally, the Belgian Presidency managed to bring the EU
Force on economic governance, chaired by Herman Van budget for 2011 to a good end. Not an easy task in a new
Rompuy, was endorsed by the European Council on institutional environment created by the Lisbon Treaty in
October 28-29. And at the last European Council during the which the European Parliament is trying to step up its role
Belgian Presidency (on December 16-17), a milestone and make its voice heard.
agreement was reached on the creation of a permanent FEB wants to congratulate the Belgian Presidency for its
crisis resolution system to safeguard the euro’s stability. excellent work! It welcomes the Hungarian Presidency
Furthermore, on October 11-12, the Competitiveness which will ensure the continuity and will focus on the imple-
Council adopted conclusions on the simplification of mentation of the decisions taken in 2010.
European research programmes, and encouraged the Ladies and Gentlemen, this is the last edition of FEB’s
Commission to make participation in the 7th Framework Belgian EU Presidency newsletter ‘Brussels calling’. Thank
Programme (FP7) less cumbersome. you for reading us. We wish you a Merry Christmas and a
New so-called ‘Integrated Guidelines’ – including new Happy 2011! 

Brussels calling - 1 -
 Competitiveness

Competitiveness Council Second, the Council adopted conclusions on the EU 2020

(December 10, 2010) flagship initiative ‘An integrated industrial policy for the
globalisation era: putting competitiveness and sustainabi-
On December 10, the last Competitiveness Council under lity at centre stage’, after a ministerial debate. The conclu-
the Belgian Presidency was held in Brussels, under the sions deem a fresh approach to European industrial policy
chairmanship of Vincent Van Quickenborne (Belgian essential to achieve the Europe 2020 objectives and to
Minister of Enterprise and Simplification) and Jean-Claude make the transition to a competitive low-carbon, energy-
Marcourt (Walloon Minister of Economy and Small and efficient and knowledge-based economy. The Council inter
Medium Enterprises (SMEs)). alia calls for the development of more integrated and effi-
cient capital markets, clustering, and the development of
First, the Council adopted conclusions regarding the appropriate EU financial instruments to facilitate the access
Commission’s Single Market Act (SMA – see boxed text), a to finance, a key element for European industry and SMEs
2-year plan with 50 initiatives
aimed at completing and extend- Single Market Act
ing the EU’s internal market, in
order to support and align it with The Commission’s Single Market Act (SMA) was published on October 27, 2010 (with
the Europe 2020 strategy. a slightly adjusted version made public on November 11, 2010). The document is
partially based on the report of Mario Monti, former Commissioner for the Internal
In its conclusions, the Council
Market, which was drafted at the request of Commission President José Manuel
stresses that the single market is
Barroso and published on May 9, 2010. In his report, M. Monti made concrete
one of the EU’s greatest achieve-
proposals to address current bottlenecks and missing links in the EU’s single market.
ments. Between 1992 and 2009, it
Several of these proposals have been integrated into the SMA. Key initiatives are:
helped to increase growth by
1,85% and led to the creation of • creating an EU patent, including translation arrangements and a unified litigation
an additional 2,75 million jobs. system;
Nevertheless, it is recognized that • further developing electronic commerce in the internal market;
the single market remains frag- • making standard-setting procedures more effective, efficient and inclusive;
mented or incomplete in various • revising the energy tax directive to fiscally better
areas, which hampers activities of reflect the EU’s climate and energy objectives;
enterprises, in particular SMEs. • adopting an action plan to improve the access of
Hence, the Council endorses the small and medium enterprises (SMEs) to capital
priority given to the single market markets;
and the general approach of the • revising the current accounting directives to
SMA. It is deemed necessary to simplify financial reporting obligations, especially
for SMEs;
fully exploit the untapped poten-
• considering the creation of EU project bonds to
tial and address business and citi-
finance inter alia large infrastructure projects;
zens’ concerns, to use all internal
• proposing a directive introducing a common consolidated corporate tax base
market tools and instruments to
(CCCTB);
develop new growth sources (e.g.
• further developing regulatory cooperation with the EU’s main trading partners;
services, industry, digital market),
• proposing an instrument to enforce reciprocity in market access regarding public
to strengthen the external dimen-
procurement;
sion of the single market, and to
• adopting the proposed decision introducing a European radio spectrum action
build up partnerships with all rele- programme;
vant actors. Finally, the Council • adopting a proposal to improve the implementation of the posting of workers
invited the Commission to report directive;
on the results of the ongoing con- • launching a consultation with social partners to create a European framework for the
sultation (until the end of February advance planning of industrial restructuring;
2011), and committed itself to • proposing a legislative initiative reforming the recognition of professional
continue examining the SMA and qualifications to enhance worker mobility;
define priority measures which • launching a proposal to improve access to basic banking services for all EU citizens;
should be put in place before the • submitting an initiative on the use of alternative dispute resolution (ADR) in the EU;
end of 2012. • stepping up the enforcement of single market rules. 

Brussels calling - 2 -
 in particular.
Member states are
invited to address
bottlenecks in net-
work infrastruc-
tures (e.g. energy
grids).
Furthermore, the
need for improved
and faster EU stan-
dardization proce-
dures is recognized. It is also stressed that – in its trade
and investment relations with strategic partners – the EU
should promote its interests and values more proactively
and in a spirit of reciprocity and mutual benefit. In this con-
text, the interface between industrial and competition
policy should be reviewed in the light of globalisation in
order to ensure a global playing field. The flagship initia-
tive’s approach of complementing horizontal measures
with targeted sectoral measures is welcomed. Finally, the
Commission, the Parliament, the member states and their
regions are invited to strengthen their cooperation in
developing, implementing and monitoring industrial poli-
cies.
Third, the Belgian Presidency managed to take a significant
step forward in the contentious dossier of the EU patent,
with the formal request of a dozen member states to
launch the enhanced cooperation procedure. Given the
high importance of this matter for the business community,
a special article on the latest developments regarding the
EU patent can be found further in this newsletter (see arti-
cle ‘EU patent’).
Fourth, an informal debate was held on a report by the
European Court of Auditors with recommendations to
improve impact assessments which the European
Commission carries out in support of the EU’s decision-
making process. The Council took note of Presidency con-
clusions on the report. The Court finds that impact assess-
ments have been mainstreamed into the Commission’s
legislative work and are a very useful tool for the ex-ante
examination of legislation. It is suggested that future
impact assessments should take more consideration of
implementation and enforcement costs of new legislation,
in line with the principles of smart regulation.
Under the header ‘any other business’, the Belgian
Presidency presented the general approach concerning the
proposed consumer rights directive, over which agreement
was found at the level of the Permanent Representatives
(COREPER) on December 9. The draft directive, which was
proposed by the Commission in October 2008, aims at har-
monizing and simplifying EU provisions for consumer pro-
tection in order to achieve a better functioning of the inter-
nal market. Current national regulatory frameworks are
fragmented, and this results in significant compliance costs
for businesses that want to sell cross-border. In order to
end the deadlock in this dossier, the Belgian Presidency
proposed to limit the scope of harmonization of the draft
directive to distance and off-premises contracts and
remove two contentious chapters: one on remedies (chap-
ter 4) and another one on unfair contractual clauses (chap-
ter 5). Certain provisions of the removed chapters could
however be maintained if member states want to, i.e. on a
maximum delivery period of 30 days, the passing of risk to
the consumer after delivery, and transparency require-
ments of contract terms. The general approach proposed
by the Belgian Presidency is expected to be adopted at
one of the next Council meetings. The text will then move
to the European Parliament,
which will probably cast its
vote in March 2011.
In addition, the Council
adopted its position on the
new EU draft budget for
2011, approving the infor-
mal agreement which had
been reached between the
Belgian Presidency and the
European Parliament on
December 6. A second draft 2011 budget had been pro-
posed by the Commission on November 26, after negotia-
tions between Council and Parliament collapsed mid-
November. The new draft 2011 budget was approved by
the European Parliament on December 15. It provides for
an expenditure increase of 2,9% compared to 2010, good
for 126,5 billion EUR. The Parliament agreed on the
Council’s position in exchange for a pledge by the up-
coming Presidencies (i.e. Hungary, Poland, Denmark and
Cyprus) to engage with the Parliament over its demand to
be involved in negotiations over the next multi-annual
framework (as of 2014). Furthermore, the Council adopted
a decision revising the current multiannual framework in
order to finance the extra needs of the International
Thermonuclear Experimental Reactor (ITER) project in
2012 and 2013.
A number of other items had been placed on the agenda.
The Council took note of progress made by member states
in the transposition and implementation of the services
directive since May 2010 and the ongoing mutual evalua-
tion, by which member states screen each other’s legisla-
tion for unnecessary obstacles to the cross-border delivery
of services within the internal market. Then the Council was
briefed by the Hungarian Minister of State, Zoltan
Cséfalvay, on the country’s Presidency work programme in
the field of internal market and industrial policy. The
Hungarian Presidency wants to focus on clear rules, value
creation and a single market which works for all, SMEs in
particular. The Council also authorized the Commission to
Brussels calling - 3 -
open negotiations on a cooperation agree-
ment with Switzerland in the area of compe-
tition. Such a cooperation agreement would
be aimed at reducing divergences of inter-
pretation in the field of competition policy in
bilateral negotiations. Furthermore, the
Council did not oppose a draft Commission
decision prolonging ecological criteria for
the award of the EU Ecolabel, which were
due to expire at the end of 2010. In addition, the Council
expressed its intention to adopt a draft regulation setting
criteria that determine when certain types of scrap metal
General affairs
General Affairs Council (December 14, 2010)
On December 14, the last General Affairs Council under
the Belgian Presidency was held, under the chairmanship
of Belgian Minister of Foreign Affairs Steven Vanackere. On
the agenda were inter alia the European citizens’ initiative,
enlargement, and the preparation of upcoming European
Councils.
First, the Council endorsed an agreement reached on
November 30 with the European Parliament and the
Commission on a draft regulation on the European
citizens’ initiative. On December 15, one day after the
Council session, the European Parliament approved as well
the text in first reading.
The Council is now
expected to adopt the
regulation without further
discussion. The European
citizens’ initiative is one of
the innovations of the
Lisbon Treaty. It intends to
strengthen the involve-
ment of EU citizens in EU
policymaking, by enabling
them to directly ask the
Commission to come for-
ward with a legislative pro-
posal on a particular topic
if at least one million signatures were collected, within a
period of 12 months, in a significant number of member
states (at least one quarter of the number of member
states, according to the Commission’s proposal). This
should enhance participatory democracy at the EU level.
Second, the Council adopted conclusions on the EU’s
enlargement. The Council welcomes the communication
which the Commission issued on November 9 on the
enlargement strategy, including the attached opinions and
(iron, steel and aluminium) should be
considered recyclable instead of waste.
The Council has submitted the text to the
European Parliament. When the latter does
not oppose the draft within 2 months, the
Council will adopt the regulation. Then the
Council mandated the Commission to nego-
tiate (on behalf of the EU) a globally binding
instrument on mercury, to the extent that
the EU has competences in this field. The EU’s negotiation
objective is to ensure that mercury releases into the envi-
ronment are reduced as much as possible. 
progress reports on several (prospective) candidate mem-
ber states. The Council continues to acknowledge that
enlargement reinforces peace, democracy and stability in
Europe, serves the EU’s strategic interests, and helps the
EU to better achieve its policy objectives. Key challenges
common to most enlargement countries are sound macro-
economic and fiscal policies, the rule of law and judiciary
reform, the fight against corruption and organized crime,
public administration reform, social and economic inclusion
of vulnerable groups and minorities, freedom of expres-
sion, and freedom of the media. Then the Council adopted
conclusions with regard to the several third countries cur-
rently involved in the enlargement process.
• Turkey. The Council welcomes Turkey’s continued com-
mitment to the negotiation process and the political
reform agenda. The recent constitutional reform pack-
age (adopted on September 12, 2010) is considered an
important step in the right direction. However, further
progress is needed in several areas, including property
rights, trade union rights, women’s, children’s and
minorities’ rights, and anti-discrimination and gender
equality. Furthermore, the Council encourages Turkey to
further improve the democratic involvement of the
Kurdish people, and to peacefully settle existing dis-
putes. In addition, the Council recognizes the impor-
tance of Turkey as a regional player and calls for coordi-
nation and alignment of Turkey’s and the EU’s foreign
policy. Finally, with deep regret, the Council notes that
Turkey continues to refuse to fulfil its obligation of full,
non-discriminatory implementation of the Additional
Protocol to the Association Agreement. Turkey currently
still refuses access to its harbours and airports for
Cypriot ships and planes, in violation of a legal obliga-
tion to do so following its membership of a customs
union together with the EU. Given the absence of
progress towards the normalisation of Turkey’s relations
with the Republic of Cyprus, the Council urges Turkey to
Brussels calling - 4 -

support ongoing
negotiations aimed at
a fair, viable and com-
prehensive settle-
ment of the dispute
within the United
Nations framework.
• Croatia. The country’s good overall progress towards
meeting the membership criteria is welcomed.
Accession negotiations are at their final stage and their
conclusion is within reach. Further efforts are still
required regarding judicial independence and efficien-
cy, the fight against corruption at all levels, public
administration reform, minorities’ rights, refugee return
and war crime trials. Croatia’s cooperation with the
International Criminal Tribunal for the Former
Yugoslavia (ICTY) and its efforts aimed at regional
reconciliation are welcomed.
• Iceland. Access negotiations with Iceland were opened
under the Belgian Presidency on July 27, 2010. Due to
the country’s membership of the European Economic
Area (EEA) and the Schengen agreement, Iceland is well
prepared to meet the EU ‘acquis’ requirements. The
Council awaits the results of the currently ongoing
legislative screening process, a typical first step in the
enlargement process.
• Western Balkans (i.e. Former Yugoslav Republic of
Macedonia (FYROM), Montenegro, Albania, Serbia,
Bosnia and Herzegovina, Kosovo). The Council reaf-
firms its commitment to the European perspective of
the Western Balkans, recognizing that EU membership
should be the ultimate goal for the countries in that
region. The visa-free
regime for citizens of
Albania
and Bosnia and
Herzegovina as of
December 15 is
welcomed. The
Council furthermore
welcomes the
progress made by the
Western Balkans countries regarding reconciliation and
regional cooperation, and stresses the importance of
protecting all minorities. Concerning the FYROM, the
Council will return to the Commission’s recommenda-
tion to open accession negotiations during the next
rotating Presidency. Regarding Montenegro, the
Council notes that the Commission’s recommendation
of granting candidate status will be considered by the
European Council. On December 16-17, the European
Council indeed decided to make Montenegro an
candidate EU member state.
In the spotlight
EU-India Business Summit (December 10, 2010)
On December 10, the Federation of Enterprises in Belgium
(FEB) organized the 11th EU-India Business Summit in the
Egmont Palace in Brussels, in cooperation with BUSINESSEU-
ROPE, the Confederation of Indian Industry (CII), and the
Federation of Indian Chambers of Commerce and Industry
(FICCI). The key theme of this edition was sustainable
development.
The conference started with an opening address by Rudi
Thomaes (CEO of the FEB), Philippe de Buck (Director General
of BUSINESSEUROPE), Chandrajit Banerjee (Director General
of CII), and Amit Mitra (Secretary General of FICCI). Keynote
speakers included R.K. Pachauri (Chairman of the Intergovern-
mental Panel on Climate Change (IPCC)) and Jos Delbeke
(Director General of Directorate-General ‘Climate Action’ of
the European Commission). The opening ceremony was fol-
lowed by two panel sessions: one on clean technologies in
energy, and a second one on transport and infrastructure.
Over lunch, a CEO round table was held on growth and part-
nership opportunities, especial-
ly in the context of the soon to
be concluded free trade agree-
ment (FTA) between the EU and
India.
In the afternoon, a political
leaders plenary session was
held, featuring Herman Van
Rompuy (European Council
President), Anand Sharma (Indian Minister of Commerce and
Industry), José Manuel Barroso (European Commission
President) and Karel De Gucht (European Commissioner for
Trade). The political leaders all looked forward to the conclu-
sion of the free trade area negotiations between the EU and
India, expected in spring 2011. At the end of the plenary
session, Philippe de Buck handed over the Joint Business
Declaration (of BUSINESSEUROPE, FEB, CII and FICCI) to the
political leaders. The latter declaration encourages the Indian
government and the EU to use the current political momentum
to make progress towards the conclusion of an ambitious, bal-
anced and comprehensive FTA, which should inter alia offer
substantial tariff elimination, improved market access, less non-
tariff barriers and strong intellectual property rights.
Furthermore, the EU and India are recommended to strive
towards a comprehensive international climate change
agreement which distributes the burden of mitigation and
adaptation costs fairly. Also, the EU and India should increase
their bilateral cooperation in the area of clean energy research.
In the field of trade, both the EU and India should engage into
achieving a balanced outcome in the Doha round multilateral
trade negotiations.
The Business Summit took place in the margin of a political
EU-India Summit, during which Herman Van Rompuy and José
Manuel Barroso met with the Indian Prime Minister Manmohan
Singh. 
Brussels calling - 5 -
 A third element on the General Affairs Council’s agenda
was the preparation of the next European Councils
(i.e. the one which was held in the meantime on December
16-17, and the one that will be held in February 2011).
For more information on the European Council of
December 16-17, please refer to the article ‘EU Summit’ in
this newsletter. The European Council of February 2011 will
deal with energy policy and innovation. Regarding energy
policy, the EU Heads of State and Government are expec-
ted to set orientations on improving the functioning of the
European energy market, especially regarding key missing
links, the promotion of innovative solutions for sustainable
energy, and coordination and coherence of the EU’s exter-
nal energy action. On innovation, the Council will discuss
how to boost Europe's innovation potential. European
leaders are expected to set orientations concerning the
completion of the European Research Area, the improve-
EU patent
The EU patent: a historical breakthrough thanks to the Belgian Presidency
On December 10, the Competitiveness Council launched
the enhanced cooperation procedure with regard to the
long-awaited EU patent. This procedure requires the partici-
pation of at least 9 member
states. Thanks to the efforts of
the Belgian Presidency, 12 EU
countries have now made a joint
request to the European
Commission to formulate a pro-
posal to initiate this procedure
which makes it possible to
create a unique EU patent
system. The following countries
are involved: France, Denmark,
Estonia, Finland, Germany, the
United Kingdom, Lithuania, Luxembourg, the Netherlands,
Slovenia, Sweden and Poland. Belgium will join later.
On December 14, the European Commission presented a
proposal in response to the aforementioned request. As a
next step, the Council should authorize the enhanced coop-
eration by qualified majority, after having obtained the con-
sent of the European Parliament. Once the procedure is
authorized, only member states participating in the
enhanced cooperation will have the right to vote in the
Council. Nonetheless, it should be underlined that the pro-
cedure is always open to any member states wishing to join.
The Federation of Enterprises in Belgium (FEB) congratu-
lates the Belgian Presidency for succeeding to end the
impasse in which the thorny patent dossier has been stuck
for more than 30 years. If the enhanced cooperation proce-
dure is brought to a positive end, the cost of filing a patent
in the countries that participate in the procedure will signifi-
ment of framework conditions for innovation, the facilita-
tion of access to finance, and the simplification and
rationalization of EU programmes.
Finally, the Council took note of a Presidency report on the
implementation of the Europe 2020 strategy. The report
was also submitted to the European Council of December
16-17. In the field of the Stability and Growth Pact (SGP),
the Council approved a report examining how the impact
of pension reforms should be accounted for in the EU’s
GSP which is currently being reformed. The text was also
forwarded to the European Council of December 16-17.
Some member states are currently introducing so-called
‘multi-pillar pension systems’, which generate significant
costs in the short term but improve the sustainability of
public finances in the longer term. 
cantly decrease thanks to less translation charges. In addi-
tion, companies situated in a member state which does not
participate in the enhanced cooperation, can nevertheless
use the EU patent as soon as
it enters into force.
Nowadays, almost 20 000
EUR – of which 14 000 EUR
solely for translation costs –
are required to file a
European patent which is
valid in only half of the EU
member states, compared to
only 1 850 EUR for filing a
patent in the United States.
The enhanced cooperation procedure should in time reme-
dy this situation which is unfavourable to innovation and the
competitiveness of our companies.
Nevertheless, it should be noted that this enhanced
cooperation raises strong opposition by Italy and Spain
which argue that the three-language regime (English,
French, German) of the European Patent Office is discrimi-
natory, and hence incompatible with the principles of the
internal market. Yet the Council’s legal service considers the
procedure to be in line with the Lisbon Treaty’s provisions.
The FEB and its sectors are pleased about this important
progress. Hungary, which will take over the rotating
Presidency of the Council on January 1, has already com-
mitted to taking the work forward with a view to achieving
an agreement on the patent issue as soon as possible. 
Diane Struyven,
Director of the European Department of the FEB
Brussels calling - 6 -
 Institutional affairs
Comitology and trade defense
As required by the Lisbon Treaty, the European
Commission proposed in March 2010 a new regulation on
comitology. The term ‘comitology’ refers to the system of
committees which are composed of member state repre-
sentatives and chaired by the Commission, and which are
charged with the supervision of
the use by the Commission of the
implementing powers that were
conferred to it by Parliament or
Council. Normally, implementation
of European legislation falls on the
EU member states, but when EU
legally binding acts require uni-
form implementing conditions (to
avoid diverging implementation
approaches in the member states),
the aforementioned implementing
powers allow the Commission to adopt so-called ‘imple-
menting acts’.
Recently, the Council reached an agreement on an amen-
ded version of the Commission’s text, which was subse-
quently adopted in the European Parliament on December
15. The new regulation, which will probably enter into
force in March 2011, brings the number of comitology
procedures down from 4 to 2: a ‘light’ advisory procedure,
and a more elaborate examination procedure where
member states’ control over the use of the Commission’s
implementing powers is larger.
The innovative aspect of the new comitology regulation is
the fact that it would fully integrate implementing acts in
the domain of the EU’s common commercial policy –
notably the ones relating to the use of the EU’s trade
defense instruments, such as antidumping and antisubsidy
measures – into the normal comitology framework.
Currently, separate regulations are still in force regarding
the use of antidumping or antisubsidy measures. In the
current regime, the Council can reject a Commission’s pro-
posal for an implementing act to impose definitive trade
defense measures on third countries with a simple majority.
However, when the new comitology regulation enters into
force, the definitive use of these trade defense measures
will become subject to the new examination procedure.
Under this new procedure, a Commission’s proposal to
impose definitive antidumping or antisubsidy measures can
only be rejected if a qualified majority of member states
represented in the supervisory committee votes against.
The shift from a simple majority to a qualified majority
obviously raises the bar for member states to block a
Commission’s act implementing trade defense measures.
This news was already picked up in Asia, where inter alia
the Hong Kong Trade Development Council (HKTDC)
devoted an online article on the new comitology regulation
in its biweekly newsletter.
Apart from other aspects of the new comitology regula-
tion, this stricter condition to be
fulfilled in order to prevent the
adoption of trade defense
measures proposed by the
Commission can be considered
as a step forward for the
European business community.
It should imply that it will become
more difficult for third countries
to effectively lobby member
states, often small ones with few
trade interests, to vote against
the imposition of EU antidumping or countervailing duties
which run against those third countries’ interests. Over the
past couple of years, the old rule of a simple majority has
made it possible for third countries to lobby and undertake
actions by which, for example, particular member states’
exports to or investments in the third country in question
were threatened with retaliation if the member states in
question did not oppose particular trade defense measures
proposed by the Commission. Therefore, the introduction
of the qualified majority rule for the prevention of the
adoption of antidumping or antisubsidy measures against
third countries would significantly reduce the commercially
harmful ‘divide and conquer’ strategy which some third
countries have been exercising against the EU and its
member states. The new qualified majority rule in the field
of trade defense will become active after a transition peri-
od of 18 months, i.e. most probably in September 2012.
It should be noted that for the adoption of multilateral
safeguard measures (almost never used), a separate
regime has been
worked out. Current
procedures for the
adoption of provisio-
nal safeguard
measures, which
precede definitive
measures, will remain
in force. 
Brussels calling - 7 -
 EU Summit
European Council (December 16-17, 2010)
On December 16-17, EU Heads of State and Government
gathered in Brussels for the last European Council of 2010
under the Belgian Presidency. The agenda of the summit
was limited to the creation of a permanent crisis resolution
mechanism to safeguard the euro’s stability, and the
limited treaty change which is required to give a legal
basis to this new mechanism.
After weeks of uncertainty and nervousness regarding the
sustainability of public debt levels in some euro area coun-
tries, EU Heads of State and Government have once again
taken a decisive step forward to preserve the financial
stability of the euro and hence create the right conditions
for a return to a sustainable growth path. The European
Council agreed on the text of a limited amendment to the
Lisbon Treaty which will allow the establishment of the
European Stability Mechanism (ESM), a permanent mecha-
nism to safeguard the financial stability of the euro area as
a whole, as from January 2013 at the earliest.
In May 2010, euro zone countries decided to set up in
great haste a temporary 3-year 750 billion EUR safety net
to reassure financial markets, following an acute sovereign
debt crisis in Greece which threatened to spill over to
other weak European economies. The safety net was crea-
ted by bringing together 60 billion EUR of the European
Financial Stability Mechanism (EFSM), 440 billion EUR of
the European Financial Stability Facility (EFSF), and 250
billion EUR
of the
International
Monetary
Fund (IMF).
The EFSF, the
most impor-
tant contribu-
tor to the
rescue scheme,
is in fact a
company which can issue bonds or other debt instruments
on the market to raise funds for the provision of loans to
euro area countries in financial distress. Issues are backed
by guarantees given by euro area members worth up to
440 billion EUR on a pro-rata basis, in accordance with
their share in the paid-up capital of the European Central
Bank (ECB). As such, the access of a euro zone country in
financial distress to fresh loans is safeguarded, as the coun-
try in question is offered an alternative to international
capital markets which are no longer accessible or only at
extraordinarily high interest rates.
The financial safety net of 750 billion EUR agreed upon in
May eventually turned out to be insufficient to calm down
worried sovereign debt holders in international financial
markets. During the past couple of weeks, a 85-billion EUR
rescue plan had to be put together to support Ireland
which reported a 2010 budgetary deficit of over 30% of its
gross domestic product (GDP). Interest rates on govern-
ment bonds of Spain, Portugal and Italy have been on the
rise as well, indicating that investors consider the risk of
putting money in those debt instruments increasingly risky.
Hence, there
was a growing
body of opin-
ion among EU
policymakers
that a stronger
signal of confi-
dence was
required.
Hence, on
October 28-29,
the European Council agreed to establish a permanent
mechanism to safeguard the financial stability of the euro
area as a whole. To that end, it instructed its President
Herman Van Rompuy to undertake consultations within the
European Council on a limited treaty change. The latter
change is necessary as the current EU treaties do not pro-
vide for a sufficiently robust legal basis (article 125 of the
Treaty on the Functioning of the European Union (TFEU) is
also referred to as the ‘no bail-out’ clause), which could
have led to the German constitutional court striking down
the EFSF and EFSM, leaving the euro area without a rescue
mechanism. In order to avoid this, the agreed upon ESM –
permanent in character - will replace the temporary EFSM
and EFSF (which will expire mid-2013) on January 1, 2013
at the earliest.
On November 28, in parallel with the European Council,
the Eurogroup reached agreement on the high-level
modalities of the ESM, following a proposal of the
European Commission. The ESM is defined as a crisis
mechanism set up to safeguard the financial stability of the
euro area and will build on the main features of the current
EFSF. It will complement the new framework for reinforced
economic surveillance in the EU, and the euro zone in par-
ticular. The ESM will provide assistance to euro area mem-
ber states in financial distress, subject to strong condi-
tionality, and following a unanimous decision by the
Eurogroup. Both liquidity and solvency crises will be
addressed, and the distinction between the two types of
crisis will be made on the basis of a thorough debt sustai-
nability analysis (DSA) conducted by the European
Brussels calling - 8 -
Commission and the IMF, in liaison with the ECB. In case of
a liquidity problem, ESM support will be provided, condi-
tional to an adjustment programme, and private investors
will be encouraged to maintain their exposure. In the
extreme and unlikely case of a sol-
vency crisis (i.e. a euro area coun-
try risks defaulting on its sovereign
debt), the member state in ques-
tion will have to negotiate a com-
prehensive plan with its private
creditors, while liquidity assistance
under the ESM may be provided.
The legal basis for the negotiation
process with creditors in case of a
solvency crisis will be provided by
standardized so-called ‘collective
action clauses’ (CACs) which will be included in the terms
and conditions of all new euro area government bonds as
of June 2013. The CACs will enable creditors to pass – by
qualified majority – a decision agreeing a legally binding
change to the terms of payment of the bonds (e.g. a stand-
still, maturity extension, interest rate cut, or haircut).
Finally, in the past couple of weeks, a lot of confusion
existed regarding the involvement of the private sector,
should the ESM be activated. It has been decided that pri-
vate sector involvement will be decided on a case-by-case
basis, and its nature will depend on the nature of the pro-
blem to be addressed. In case of insolvency, it should be
noted however that loans issued under the ESM will enjoy
preferred creditor status, junior only to IMF loans. This
means that – in case of insolvency of a euro area country,
private creditors will be compensated for their loss only
after the IMF and the issuers of the ESM loans. The latter
has been decided in order to send a clear signal to private
creditors that taxpayers’ money will be protected first, and
that their claims are subordinated to those of the official
sector (i.e. IMF and ESM). It should be stressed however
that any private sector involvement based on these terms
and conditions will not be effective before mid-2013.
Moreover, the overall effectiveness of the ESM framework
will be assessed in 2016 by the European Commission, in
liaison with the ECB.
In order to provide a strong legal basis for the ESM, as
presented above, the European Council decided on
December 16 to launch a simplified treaty revision proce-
dure to adopt the necessary amendments. Concretely, one
paragraph would be added to article 136 of the TFEU:
“The Member States whose currency is the euro may
establish a stability mechanism to be activated if indispen-
sable to safeguard the stability of the euro area as a whole.
The granting of any required financial assistance under the
mechanism will be made subject to strict conditionality.”
The simplified revision procedure, one of the innovations
of the Lisbon Treaty, makes the process of amending par-
ticular parts of the TFEU less cumbersome. The European
Council hopes to conclude the necessary consultation of
institutions in time so the formal adoption of the decision
setting out the treaty amendment can take place in March
2011. National approval procedures should be completed
by the end of 2012, so the
amended version of the TFEU
can ideally enter into force on
January 1, 2013.
In the meantime, the Commis-
sion and Finance Ministers of the
euro area are invited to finalize
their work on the intergovern-
mental arrangements setting up
the future ESM by March 2011.
Member states who have not
yet introduced the euro in their respective territories,
can get involved in this work if they wish to. They may
also decide to participate in operations conducted by
the mechanism on an ad-hoc basis.
A separate statement by the Heads of State and
Government of the euro area and the EU institutions,
annexed to the European Council’s conclusions, states that
“they stand ready to do whatever is required to ensure the
stability of the euro area as a whole”. This is obviously
meant to further calm down sovereign debt markets. In the
statement, the Eurogroup leaders call for determined
action on:
• the implementation of economic restructuring packages
in Greece and Ireland;
• maintaining fiscal responsibility;
• stepping up growth enhancing structural reforms;
• strengthening the SGP and the implementation of the
new macroeconomic surveillance framework;
• ensuring the availability of adequate financial support
through the EFSF pending the entry into force of the
permanent crisis mechanism;
• strengthening the financial system, including through
new stress tests in the banking sector;
• expressing full support to the policy actions of the ECB.
Also in the field of economic policy, the European Council
calls for the acceleration of the work on six legislative pro-
posals on economic governance, which were issued by the
Brussels calling - 9 -

Commission at the end of September 2010, on the basis of
the final report of the Task Force on economic governance
which was led by President Herman Van Rompuy. The
ambition is to have this legislative package adopted by
June 2011. In the framework of the current reform of the
Stability and Growth Pact (SGP), the European Council wel-
comes the Council’s report on the treatment of systemic
pension reforms under the SGP, and calls for the report to
be reflected in the specifications on the implementation of
the SGP.
Furthermore, the European Council welcomed the
progress which was already achieved with regard to the
objectives of the Europe 2020 strategy. It also looked for-
ward to the Commission’s proposals for the new multian-
nual financial framework (2014-2020) which are expected
by June 2011. During the European Council’s meeting,
British Prime Minister David Cameron circulated a draft let-
ter in order to build an alliance of member states in favour
of a freeze in long-term EU spending, excluding inflation.
His initiative was reportedly backed by French President
Nicolas Sarkozy and German Chancellor Angela Merkel.
On December 17, the European Council discussed the EU’s
relations with its strategic partners, based on a first
progress report presented by High Representative
Catherine Ashton. It also endorsed the Council’s conclu-
sions of December 14, 2010 on enlargement, and gave
Montenegro the status of candidate member state.
Finally, the European leaders welcomed the successful out-
come of the United Nations Climate Change Conference
in Cancún as an important step forward in global efforts to
reach the agreed objective of staying below a 2°C increase
in global temperatures. 
In the spotlight
EU-Russia Industrialists Round Table
(December 7, 2010)
On December 7, in the margin of the EU-Russia Summit, the
EU-Russia Industrialists Round Table (IRT) made some recom-
mendations to improve the Partnership for Modernisation,
which provides a policy framework to govern EU-Russia busi-
ness interactions. Via giving business recommendations to poli-
cymakers in the EU and Russia, the IRT hopes to see in the
long run the creation of an EU-Russia common economic area.
D. Medvedev, H. Van Rompuy, J. M. Barroso.
To stimulate this, the IRT reconfirmed its support to Russia’s
accession to the World Trade Organisation (WTO), as it would
benefit both Russian and European companies. In addition, it
would have positive effects on competition in the Russian eco-
nomy. The IRT also stated it continues to support the aim to
reach an updated agreement governing EU-Russia relations.
This agreement should be based on WTO membership – other-
wise all WTO provisions would have to be incorporated in the
new agreement – but it should provide greater trade liberalisa-
tion than normal membership. According to the IRT, this agree-
ment should result in greater predictability and certainty
regarding direct investments, market access and investment
protection. The IRT also recommended that in order to support
these goals, an efficient mechanism for dispute settlement
should be established.
Furthermore, the IRT suggested the Summit to agree on three
specific policy initiatives to stimulate technology transfer
between the EU and Russia to facilitate innovation. Firstly, the
IRT called for an EU-Russia initiative to broaden up coopera-
tion in the area of standardisation. This is important since
investment in manufacturing and other sectors involving tech-
nological transfers can be hampered due to differences in tech-
nical standards. More specifically, the IRT calls for the applica-
tion of existing European technical standards in Russia.
Secondly, the private sector will only invest in innovation if it
expects significant returns. This can only be guaranteed if intel-
lectual property rights (IPRs) are enforced. The IRT therefore
recommends the creation of an effective IPR enforcement
mechanism. Thirdly, since knowledge is a driver for innovation,
and knowledge is embedded in people, free travelling between
the EU and Russia is also essential to stimulate innovation.
A modern visa regime therefore is key to improve the
Partnership for Modernisation. 
Brussels calling- 10 -
 Climate change
United Nations Climate Change Conference
in Cancún
(November 29 – December 10, 2010)
From November 29 to December 10, the 16th Conference
of the Parties (COP 16) was held in Cancún, Mexico. After
the disappointing outcome of the Copenhagen Summit
last year, the expectations for this United Nations Climate
Change Conference were moderate. As a result, the
atmosphere was more relaxed and the pressure less high.
Only a few Heads of State and Prime Ministers were pres-
ent and most delegations were headed by Environment the implementation of enhanced action on adaptation in a
Ministers. This time, the negotiating process was also very coherent manner. It was agreed that parties should submit
different. The Mexican Presidency negotiated in a transpa- their views on the composition and the work program of
rent and inclusive way which was very much appreciated this committee to the UNFCCC by February 21, 2011.
by all delegations. This was very much in contrast with the
On deforestation, the Parties agreed to slow, halt and
Copenhagen Summit which left many delegations to feel
reverse the loss of forests insofar national circumstances
excluded from the negotiating
allow it. Since deforestation is mainly a problem in deve-
process. As a result, confi-
loping countries, considerable support will be provided for
dence in the United Nations
it by developed countries. This should be achieved through
multilateral process was
national forest strategies, robust monitoring systems and
restored.
safeguard measures.
Regarding the Cancún agree-
As for finance, the COP took note of the developed
ment itself, Prof. Jean-Pascal
world’s collective commitment to provide so-called ‘fast-
Van Ypersele, Vice-Chair of the
start finance’ approaching 30 billion USD for the period
Intergovernmental Panel on
2010-2012. Regarding long-term finance, in the context of
Climate Change (IPCC), stated that it officially reconfirmed
meaningful mitigation actions and transparency on imple-
the international community’s objective to do everything
mentation, developed countries committed to mobilizing
possible to limit the increase of global temperatures
100 billion USD per year by 2020. Reconfirming and secu-
below 2°C above pre-industrial levels. This decision was
ring these decisions – which were taken at the Copenhagen
already taken at the Copenhagen Conference but it initially
Summit – was extremely important to show goodwill to
did not specify the important reference ‘above pre-indus-
developing countries. An important decision in Cancún
trial temperature’. In addition, it lacked the legitimacy of
was to establish a Green Climate Fund, through which a
the text adopted in Cancún. Therefore, it is safe to say this
significant share of the multilateral funding for adaptation
is an important decision.
should go. It was decided that the board of the Fund in the
Concerning mitigation of the effects of climate change, it long run should consist of an equal number of members
is of major importance that all countries managed to strike from developing and developed countries. Initially, the
a deal on cutting emissions. This confirms the idea that World Bank will be the interim trustee to manage the finan-
emerging economies like India and China eventually will cial assets. After three years, the World Bank’s work will be
have no choice but to cut their emissions as well. assessed. The transitional committee which will be respon-
sible for designing the Green Climate Fund will consist
As for market mechanisms, the tendency is to strengthen of 15 members from developed countries and 25 from
Clean Development Mechanisms (CDMs) so as to stimu- developing countries.
late major investments in environmentally sound and sus-
tainable emission reduction projects in developing coun- Tricky items on the agenda were technology development
tries. There also appeared to be a clear political will to and transfer. The Federation of Enterprises in Belgium
reduce current CDMs in India and China and to increase (FEB) intervened during the discussions in order to main-
them in Africa. tain the link between an agreement on a technology
mechanism and clear rules on intellectual property rights
Adaptation received a lot of attention as well. The parties (IPRs). In the final deal the establishment of a Technology
decided to establish an Adaptation Committee to promote Mechanism was confirmed. Priority areas for this

Brussels calling- 11 -
 Mechanism are, inter alia,
the deployment and diffu-
sion of environmentally
sound technologies and
know-how in developing
countries, increased public
and private investments,
and improved climate
change observations. On
IPRs the text remains silent
however.
An important element of
the deal was the decision
to periodically review the adequacy of the long-term
global goal of limiting the increase of global tempera-
tures to less than 2°C above pre-industrial levels. This
implies that a stricter target could possibly be adopted
after the 5th IPCC evaluation report. The first review
should start in 2013 and should be concluded in 2015. The
agreement explicitly states that the COP shall take appro-
priate action based on this review.
Concerning the Kyoto Protocol, no decision on a second
(post 2012) commitment period was taken. To ensure that
there will be no gap between the first and the second
commitment period, the Kyoto Protocol signatories agreed
to complete their work as early as possible. Developed
countries were asked to raise their level of ambition con-
cerning – joint or individual - emission reductions in accor-
dance with the 25% - 40% IPCC range by 2020.
In general it can be concluded that the deal reached in
Cancún is a relatively weak deal. It does not produce the
ambitious, legally binding cuts in emissions that European
business asked for in order to move to a global level play-
ing field. Nonetheless, considering the low expectations
for this climate conference, many praised the agreement to
be a success. In addition, negotiators from both developed
and developing countries called this deal a good basis for
moving forward. Many decisions of the Copenhagen
Accord were incorporated and anchored in the Cancún
agreement. Notably, the implementation of the financial
engagements provided in Copenhagen Accord is impor-
tant in this context. All this, plus the fact that the United
States and China, and to
a lesser extent Russia and
Canada, were remarkably
more constructive, has
made that the expecta-
tions for the 2011 COP 17
in the South African city
of Durban are again sky
high. 

Environment
Environment Council (December 20, 2010) directive on CO2 emission standards for light vans was
held in the context of informal negotiations between the
On December 20, the 27 EU Environment Ministers con- European Parliament (EP) and the European Council on
vened in Brussels for the last session of the Council of the December 15. The newly proposed directive introduces an
European Union during the Belgian Presidency. Chaired average limit of 175g CO2/km for new light vans regis-
by Flemish Environment Minister Joke Schauvliege, the tered in the EU. The Council proposed phasing in this
Environment Council’s main issues addressed were a pro- objective between 2014 and 2017. To give industry the
posed directive on CO2 emission standards for light vans, a opportunity to plan this operation, a long-term target for
proposal for a regulation on biocidal products such as CO2 emissions of light vans has been included for 2020. The
insecticides and disinfectants, a progress report on a pro- Council and the EP are still discussing on the level of this tar-
posed recast of the get. On the one hand, the Council started the inter-institu-
electrical waste direc- tional discussions with a proposed target of 155 CO2/km
tive, the restriction of whereas the EP’s Environment Committee voted in favour of
genetically modified 140 CO2/km. From 2014 onwards, as to incentivise invest-
organisms (GMOs) ment in new technologies, producers failing to produce a
cultivation, and sustai- fleet meeting the objective will have to pay a fine of 95
nable materials man- EUR per car, both the Council and the EP argued.
agement and sustai-
nable production and The Council also reached an agreement to make pest con-
consumption. trol products and other everyday products safer to use.
The draft regulation proposes to harmonise the authorisa-
The discussion regar- tion of the use of certain chemicals in biocides. Current
ding the proposed rules provide for an EU-wide list of active substances per-

Brussels calling- 12 -
mitted in biocides to which member states may add pro-
ducts if they fulfil certain conditions. Concretely, the regu-
lation will identify which active substances must not be
used in biocidal products. This will mainly concern sub-
stances that can cause cancer, mutations, fertility problems
and chemicals
that are harmful
to the environ-
ment.
Furthermore,
the Council also
agreed that
everyday pro-
ducts such as
sleeping bags, sofas and socks treated with pest control
products should be labelled as such. Finally, the regulation
also introduces the possibility of authorising biocidal
products at EU level in order to reduce the administrative
burden on producers. This would leave the European
Chemicals Agency instead of national bodies in charge of
issuing permits for substances and products.
The Belgian Presidency presented the progress made in
recasting the directive on electrical waste and electronic
equipment. The so-called WEEE directive promotes recy-
cling and recovery of electrical and electronic waste, and
was proposed to be reviewed by the Commission in 2008.
The WEEE directive currently requires member states to
annually collect a minimum of 4 kg of electric and elec-
tronic waste per inhabitant. In the new proposal this
would be changed into a percentage of electrical and
electronic products sold in the two preceding years. The
aim of this revision is to improve the effectiveness of collec-
tion and to take variations of consumption across member
states into account.
The Belgian Presidency also presented a report on a pro-
posal to allow member states to restrict the cultivation of
GMOs in their territories. The issue was also raised at the
October Environment Council when several member states
expressed their concern about the conformity of national
GMO bans with the internal market and WTO rules.
Meanwhile, some legal analyses have indeed cast doubt on
such conformity whereas the Commission has continued to
defend its text. In this context, many member states asked
the Commission to draw up a list of possible grounds on
which member states can decide to restrict GMO cultiva-
tion. In addition, they also call for stronger environmental
risk assessments in the GMO authorisation process as well
as a report on the socio-economic risks and benefits of
placing GMOs on the market. The draft act covering this
topic would allow member states to restrict cultivation of
GMOs on their territory on grounds other than normal
health and environment considerations. These measures
would have to be in compliance with the EU treaty and
WTO obligations.
The Council also debated on the outcome of the United
Nations Climate Change Conference in Cancún. More
specifically, the Council discussed decisions such as the
pledge to hold the increase in global average tempera-
tures below 2°C above pre-industrial levels, the commit-
ment to reduce greenhouse gas emissions as well as their
monitoring and verifying by both developed and develo-
ping countries. Also the finance of climate action and the
continuation of the Kyoto Protocol were discussed. More
information regarding this topic can be found in the article
‘Climate change’ in this newsletter.
Furthermore, the Council gave the Commission the green
light to start negotiations with Switzerland to link the EU
emissions trading system (ETS) with the Swiss system.
Being a complement to the extension of the EU ETS to
Norway, Liechtenstein and Iceland, such a link would con-
tribute to mitigating the effects of climate change and
increase incentives to invest in green technologies.
Negotiations are expected to start early next year and aim
for speedy progress.
The Council also adopted conclusions on sustainable
materials management and sustainable production and
consumption. This was a first concrete result of the infor-
mal Environment Council which was organised at the
beginning of the Belgian Presidency on July 11 - 13 in
Ghent and which put these topics central on the agenda.
In this context the Council expressed its concern regarding
the negative environmental effects and possible resource
shortage the EU’s extensive use of resources causes.
Therefore, and to boost competitiveness and business
opportunities, the Environment Ministers stated that the
shift to a sustainable and resource efficient economy is
very much needed. Concretely, to put this into practise,
an integrated approach is needed, taking into account the
full life-cycle of materials, from the extraction of raw mate-
rials to production and final treatment. In order to achieve
this, the Council urges both the member states and the
Commission to stimulate eco-design, reducing the use of
hazardous substances and strengthen recycling markets. In
addition, the Council encouraged member states to tax
energy and resource use and to remove subsidies with
negative impacts on the environment. Finally the
Commission was invited to develop a common metho-
dology to assess the environmental impact of products
throughout their life-cycle so as to support product
assessment
and
labelling. 
Brussels calling- 13 -
 Six months of Belgian Presidency
of the Council of the EU
This week, the Belgian Presidency of the Council of the
EU comes to an end. The Belgian Presidency is consid-
ered as having been very successful. Therefore, this last
edition of our ‘Brussels calling’ newsletter gives an
overview of the accomplishments of the Belgian
Presidency, which are considered key for the business
community.
Economic and financial affairs
In the field of economic and financial affairs, many land-
mark decisions have been made in the past 6 months,
mainly in response to the recent financial, economic and
sovereign debt crisis, but yet always in the direction of
more European
integration.
First, the
Economic and
Financial Affairs
(ECOFIN)
Council of
September 7
endorsed an
agreement reached with the European Parliament and the
Commission on the establishment of new financial supervi-
sory bodies: the European Systemic Risk Board (ESRB) for
macro-prudential supervision, and three European
Supervisory Agencies (ESAs) for micro-prudential supervi-
sion. The latter three ESAs are the European Banking
Authority (EBA), the European Insurance and Occupational
Pensions Authority (EIOPA), and the European Securities
and Markets Authority (ESMA). In specific cases, they will
be able to overrule national watchdogs. The ESRB and the
ESAs will become operational as of January 1, 2011. The
regulations necessary for that were adopted at the
ECOFIN Council of November 17. During the Belgian
Presidency, discussions were also held on a possible bank
levy and a financial transactions tax to make the bank and
financial sector contribute to the costs of the recent finan-
cial crisis.
Second, on October 28-29, the European Council
endorsed the final report of the Task Force on economic
governance, led by its President Herman Van Rompuy. The
final recommendations include the achieving of greater fis-
cal discipline by reinforcing the Stability and Growth Pact
(greater attention to public debt levels, as well as progres-
sive semi-automatic sanctions), strengthening macroeco-
nomic surveillance (the so-called ‘economic pillar’ of the
European Monetary Union), introducing the European
semester, setting up a credible crisis resolution framework
(to address future sovereign debt crises), and strengthen-
ing institutions (e.g. sounder statistical data, and more
independent analyses, assessments and forecasts). On
September 29, the European Commission had already
issued its own proposals to strengthen economic gover-
nance in Europe – broadly in line with the Task Force’s
recommendations. The European Council of December
16-17 called for the adoption of his economic governance
package by mid-2011.
On July 26, the General Affairs Council adopted a regula-
tion aimed at improving the quality and reliability of sta-
tistical data used under the EU’s excessive deficit proce-
dure. On September 7, the ECOFIN Council already
endorsed the European semester which aims at improving
economic policy coordination, in order to strengthen
budgetary discipline, and foster growth and macroeco-
nomic stability. It will consist of a 6-month cycle, starting in
March every year, during which member states will have
their medium-term budgetary strategies and national
reform programmes scrutinized by the Commission and
the European Council. Then the European Council of
December 16-17 also agreed upon a limited treaty change
to enable the setup of the European Stability Mechanism
(ESM) as a permanent crisis resolution system, following
continued nervousness on sovereign debt markets and the
85-billion EUR rescue package for Ireland of November 28
(also see the
‘EU Summit’
article in this
newsletter).
Third, on
October 19,
the ECOFIN
Council
reached an
agreement on a draft directive on alternative investment
fund managers (AIFM), with a view to concluding negotia-
tions with the European Parliament in first reading. The
proposed directive aims to create a comprehensive and
effective regulatory and supervisory framework for AIFMs
(i.e. managers of hedge funds and private equity funds in
particular) in the EU. Substantial powers are given to the
new EU financial supervision bodies, and a passport is fore-
seen for AIFMs from third countries wishing to place their
products on the EU market.
Fourth, in the field of taxes, on October 14, the Council
adopted a directive concerning the refund of value added
tax incurred in another member state. The deadline for
Brussels calling- 14 -
refund applications was extended by 6 months until March
31, 2011, because many national electronic portals through
which applications have to be made are not yet opera-
tional. During the ECOFIN Council of December 6-7, a
draft directive was adopted aimed at strengthening admi-
nistrative cooperation between the member states in the
field of direct taxation to enable countries to better
combat tax fraud and tax evasion.
Fifth, on July 13, the ECOFIN Council formally decided to
allow Estonia to become the 17th member state to adopt
the euro (as of
January 2011).
Finally, during
the Belgian
Presidency, 10
new so-called
‘Integrated
Guidelines’ were
adopted which
underpin the
goals of the Europe 2020 strategy. They contain 6 broad
economic policy guidelines for the member states (adopted
on July 13), and 4 guidelines for the employment policies
of the member states (adopted on October 21).
Competitiveness
First, after months of negotiations and intense lobbying
over two Presidency compromise texts, and a record num-
ber of sessions of the Competitiveness Council, the
Belgian Presidency managed to realize a historical break-
through in its top-priority dossier of the EU patent. The
result was not the unanimous agreement on patent transla-
tion arrangements the Federation of Enterprises in
Belgium (FEB) and the overwhelming majority of the busi-
ness federations in the member states hoped for, but by
December 10, the Presidency had convinced 11 member
states (including Germany, France and the United
Kingdom) to make a formal request to the Commission to
come up with a proposal for enhanced cooperation
regarding the EU patent (also see the ‘EU patent’ article in
this newsletter). The Commission already tabled its propos-
al on December 14. Next steps now are the authorization
by the Council (by a qualified majority vote) and a consent
of the European Parliament to go ahead with
the enhanced cooperation. Any member state
currently not included in the coalition may join
if it wishes to. Poland already did so, and
Belgium will join in early 2011. Throughout the
Belgian Presidency, Spain and Italy in particular
have maintained their opposition to the 3-lan-
guage regime for a future EU patent which had
initially been proposed by the Commission,
arguing that it was discriminatory.
Second, after the
endorsement of the
European Parliament on
October 20, a new direc-
tive for combating late
payments in commercial
transactions got adopt-
ed. The directive imposes
a deadline for the pay-
ment of goods and services of 30 days for business-to-
business transactions and for commercial transactions
between public institutions and business. Extensions up to
60 days are possible in certain cases. The new directive will
also regulate the interest rate which may be charged on
overdue payments and the compensation of costs of
recovery. The new legislation is especially relevant for
SMEs as it aims to address more effectively companies’
financial problems due to the late payment of bills.
Third, the Belgian Presidency managed to reach an agree-
ment at the level of the Committee of Permanent
Representatives (COREPER) on the general approach con-
cerning the proposed consumer rights directive (also see
article ‘Competitiveness’ in this newsletter). In order to end
the deadlock in this dossier, the Belgian Presidency pro-
posed to limit the scope of harmonization of the draft
directive to distance and off-premises contracts. The gen-
eral approach proposed by the Belgian Presidency is
expected to be adopted at one of the next Council meet-
ings. The text will then move to the European Parliament,
which will probably cast its vote in March 2011.
Fourth, with regard to the Europe 2020 strategy,
Commission communications were published on a number
of the 7 flagship initiatives enshrined in the strategy, i.e.
‘Youth on the move’ (September 15), ‘Innovation Union’
(October 6), and ‘An integrated industrial policy’ (October
28). Council conclusions on the latter two initiatives were
adopted on November 25-26 and December 10 respec-
tively. Furthermore, on December 2-3, Council conclusions
were adopted on the cross-fertilization between the
Europe 2020 flagship initiatives ‘A digital agenda for
Europe’ and ‘Innovation Union’. In addition, on November
25-26, a resolution of the Space Council was adopted.
And on October 27, the European Commission also pu-
blished its Single Market Act (SMA), a 2-year programme
with 50 initiatives to
complete and extend the
internal market, one of
the cornerstones of the
EU construction.
Conclusions on the SMA
were adopted by the
Competitiveness Council
of December 10.
Brussels calling- 15 -
Finally, in the field of research, the Council of October
11-12 adopted conclusions on the simplification of EU
research programmes, underlining the need for a better
balance between trust in and control of researchers, and
for a rationalized European research and innovation land-
scape. The Commission was furthermore encouraged to
already take some actions regarding the Seventh
Framework Programme (FP7) to make participation in the
programme less cumbersome. During the Belgian
Presidency, Council discussions were also held on how to
make innovation policy more tailored to the
needs of small and medium enterprises (SMEs),
and on gaps in the financing of research, devel-
opment and innovation. Finally, on November
25-26, conclusions were adopted on joint pro-
gramming initiatives (JPIs), one of the corner-
stones of the European Research Area set up to
foster research and development (R&D) coop-
eration in order to better address major societal
challenges of European and global scale.
Employment, social policy, health and
consumer affairs
First, regarding the directive on the safety and health at
work of pregnant workers and workers who have recently
given birth or are breastfeeding – also referred to as the
maternity leave directive – the Council rejected on
December 6-7 amendments made by the European
Parliament on October 20 to extend maternity leave from
14 to 20 weeks (instead of the initially proposed 18 weeks),
at full pay. Many member states, as well as the business
community, considered 20
weeks as a bridge too far,
given the financial impact of
such an extension of maternity
leave, expected problems in
work planning at SMEs, and
the potentially adverse effects
on the participation of women
in the labour market.
Second, on October 21, the
Employment, Social Policy,
Health and Consumer Affairs
(EPSCO) Council adopted
conclusions regarding the
governance of the European Employment Strategy within
the context of the Europe 2020 strategy and the European
semester. The importance of employment policies in the
macroeconomic development of the EU, as well as the role
of the EPSCO Council in the framework of the Europe
2020 strategy and the European semester were empha-
sized.
Finally, also at the EPSCO Council of December 6-7, con-
clusions were adopted on the fight against inequalities in
salaries between men and women, on employment poli-
cies for a competitive, low-carbon, resource-efficient and
green economy, and on the impact of ageing on employ-
ment policies. The Council also adopted conclusions on
the future of pension systems and on social services of
general interest (SSGIs).
Transport, telecommunication and energy
First, on October 15, the
Transport,
Telecommunication and
Energy (TTE) Council
reached a political
agreement on the
Commission’s proposal
for a new Eurovignette
directive. The new legi-
slation allows for the
internalization of external costs relating to air pollution and
noise, in addition to infrastructural wear. Charges can be
differentiated according to time, place, distance and type
of vehicle. A specific congestion charge is not included.
The directive recommends to use revenues generated by
the external cost charge for projects in the transport sec-
tor. The text will now move back to the European
Parliament for a second reading.
Second, in the field of energy, on October 26 a compro-
mise was reached to allocate 146 million EUR of uncommit-
ted funds from the European Energy Recovery Programme
(EERP) to a new instrument to finance energy efficiency
and renewable energy initiatives. In addition, thanks to
the participation of the European Investment Bank (EIB)
and the German banking group KfW, the instrument will
have several hundreds of millions EUR at its disposal.
Also in the field of energy, conclusions on an energy policy
for consumers (with particular attention to so-called ‘vul-
nerable consumers’) were adopted. Furthermore, on
November 10, the Commission adopted its ‘Energy 2020’
communication, followed
by a communication on a
new energy infrastructure
package.
Third, the TTE Council of
December 2-3 adopted
conclusions on the inte-
gration of waterborne
transport into the EU
transport and logistics
chain. Waterborne tran-
sport, which includes
short sea shipping (SSS)
Brussels calling- 16 -
and inland waterway transport (IWT) currently remains
underexploited within the EU, but could contribute to
more environmentally friendly transport patterns.
Finally, the TTE Council of December 2-3 adopted conclu-
sions on the Commission’s communication on a European
broadband strategy.
Environment and climate change
First, in the field of environment and climate change, many
of the Presidency’s efforts went at preparing the United
Nations Climate Change Conference in Cancún (Mexico)
from November 29 to December 10 (also see ‘Climate
change’ article in this newsletter), as well as the United
Nations conference on biodiversity in Nagoya (Japan)
which was held on October 18-29.
Despite limited progress in preparatory talks for the
Cancún conference in Bonn (Germany, August 2-6) and
Tianjin (China, October 4-9), Cancún eventually yielded an
agreement which calls on rich countries to reduce their
greenhouse gas emissions as
pledged in the Copenhagen
Accord, and on developing
countries to plan to reduce
their emissions, to limit global
warming to less than 2°C
above pre-industrial levels. A
green climate fund was also
agreed upon, which is sup-
posed to be worth 100 billion
USD a year by 2020 (also see
‘Climate change’ article in this
newsletter). In the run-up to
the conference, the EU reaf-
firmed its willingness to con-
sider a second commitment period under the Kyoto
Protocol, as well as increase its greenhouse gas emission
reduction target from 20% to 30% if other major
economies would make similar commitments.
Regarding the biodiversity summit, the EU made it clear
that it would strive for an ambitious, widely implemented
Convention on Biological Diversity strategic plan for the
period 2011-2020, and for an increase of
resources to this end. The conference itself
yielded significant steps forward towards pro-
tecting biodiversity, with participants pledging
to set up national biodiversity plans and
increase the share of protected zones on land
and in oceans considerably. The Strategic Plan
of the Convention on Biological Diversity (‘Aichi
Target’) was also confirmed. Conclusions on the
Nagoya conference were adopted by the
Environment Council on
December 20.
Second, also at the
Environment Council of
December 20, conclusions
were adopted regarding sus-
tainable materials manage-
ment to ensure sustainable
production and consumption
patterns, and on the
improvement of environmental policy instruments.
External relations
First, on September 16, the Foreign Affairs Council autho-
rized the signing of a free trade agreement (FTA) between
the EU and South Korea. It is considered the most ambi-
tious and comprehensive FTA ever signed by the EU, co-
vering duties, non-tariff barriers, competition and state aid,
intellectual property, public procurement, customs, trade
facilitation and dispute settlement. The provisional appli-
cation of the FTA would start in July 2011, provided the
European Parliament has given its consent by then and
that a bilateral safeguard clause has entered into force.
In the meantime, bilateral talks on FTAs with MERCOSUR
and India continue. The conclusion of talks with India is
expected for 2011.
Second, on October 25, the Foreign Affairs Council adop-
ted conclusions on a comprehensive European interna-
tional investment policy. With the entry into force of the
Lisbon Treaty, international investment policy has become
an exclusive competence of the EU.
Third, thanks to the Belgian Presidency, the necessary
steps were taken for the establishment of the European
External Action Service (EEAS) – the new EU diplomatic
service to be led by High Representative Catherine Ashton
– as of December 1, 2010. These steps included amend-
ments to the Financial Regulation and Staff Regulation (fol-
lowing an agreement with the Parliament on October 20),
as well as to the 2010 budget. In the meantime, Catherine
Ashton made appointments for top positions in the EEAS.
Fourth, in the field of enlargement, accession talks with Ice-
land at ministerial level
were formally opened on
July 27. In November,
the Commission started
to assess Iceland’s readi-
ness to start negotia-
tions, a process known as
‘screening’. In Turkey, an
important constitutional
reform addressing a
Brussels calling- 17 -
number of criticisms of the EU regarding the country’s
accession process was approved during a referendum in
September, but the General Affairs Council of December
14 noted with deep regret that no progress had been
made in mending relations with the Republic of Cyprus.
Accession talks with Croatia are expected to be concluded
soon. Montenegro was granted the status
of EU candidate member state at the
European Council of December 16-17.
Regarding Serbia, the General Affairs
Council of October 25 invited the Euro-
pean Commission to submit an opinion
on Serbia’s readiness to become an official
EU candidate member state, following the
country’s constructive attitude towards
Kosovo in a resolution of the United
Nations General Assembly of Septem-
ber 9, 2010.
Finally, several bilateral meetings were
held over the past 6 months, inter alia
with ASEM countries (October 4-5), China
(October 6), South Korea (October 6), the United States
(November 20), Ukraine (November 22), Russia (December
7) and India (December 10). Moreover, on November 11-
12, a G20 Leaders Summit was held in Seoul (South
Korea). Recent international economic relations have been
overshadowed by fears for a currency war. At the G20 min-
isterial meeting in Gyeongju (South Korea), European
countries agreed to cede power to emerging countries in
the IMF. This IMF quota and governance reform could be
considered historic.
Hungarian Presidency of the Council
Overview of the programme of the
Hungarian Presidency
On January 1, for the first time, Hungary will take on the
rotating Presidency of the Council of the European Union.
Since the Hungarian Presidency is the last of the Spanish-
Belgian-Hungarian trio, its programme fits into the trio pro-
gramme and its priorities are built on the results delivered
by the Spanish and the Belgians. The draft programme of
Institutional and budgetary affairs
First, with the green light of the European Parliament on
December 15, a second draft EU budget for 2011 was
adopted, after negotiations between the Parliament and the
Council on a first draft budget proposed by the Commission
collapsed mid-November. The Parliament
fully played out its increased powers in
budgetary affairs following the entry into
force of the Lisbon Treaty. It struck a deal
with the upcoming Presidencies that a
debate will be held on how it will be
involved in negotiations about the next
multiannual framework (2014-2020).
Second, after adoption at the European
Parliament on December 15, a new comitology
regulation was adopted, laying down rules and
procedures for the supervision of member states
on the implementing powers of the
Commission. The most innovative aspect of the
new regulation is that it changes the rules for the
use of the EU’s trade defense instruments (also see article
‘Institutional affairs’ in this newsletter).
Finally, the General Affairs Council of December 14
endorsed an agreement reached on November 30 with the
European Parliament and the Commission on a draft regu-
lation on the European citizens’ initiative. The draft direc-
tive is now expected to be adopted by the Council without
further discussion. The European citizens’ initiative is aimed
at enhancing participatory democracy at the EU level. 
the Hungarian Presidency was adopted on November 10,
and on December 20 it was officially presented in the
Council’s Justus Lipsius building in Brussels.
The Hungarian Presidency programme will be built on four
main priorities. The first one is growth, jobs and social
inclusion. Since 2011 will be the year in which decisions
taken in 2010 will have to be implemented, and since it is a
necessary precondition for the first priority to be a success,
the Hungarian Presidency first and foremost will focus on
the consolidation of the European economic recovery.
Therefore, the Presidency aims to reach an agreement on
the Commission’s legislative proposals concerning the
enhanced economic governance as soon as possible.
More specifically, this refers to launching of the European
semester, strengthening of fiscal discipline and the creation
of a macroeconomic surveillance mechanism. Since the
Brussels calling- 18 -
Europe 2020 strategy is the best tool to boost employ-
ment, social inclusion (which will focus on child poverty and
the social integration of the Roma population) and com-
petitiveness, the Hungarian Presidency will start the imple-
mentation of the strategy both at national and European
level. Also, the
discussions on
the flagship ini-
tiatives will con-
tinue. These dis-
cussions will
focus on the
implementation
and elaboration
of the
‘Innovation
Union’, the ‘An agenda for new skills and jobs’, the ‘Digital
Agenda’, ‘Youth on the Move’ and ‘Resource-efficient
Europe’ initiatives. Furthermore, since the Europe 2020
strategy requires the completion of the single market, the
adoption of the Single Market Act (SMA) will be a key
issue on the Hungarian agenda. The Small Business Act will
also be on the agenda. As SMEs are key factors to the
European economy’s competitiveness and to creating jobs,
the importance of revising the Small Business Act should
not be underestimated. Finally, since financial markets
require predictability and stability to prevent the recur-
rence of the global economic crisis, negotiations regarding
the efficient regulation and the modernisation of financial
services roadmap will continue during the Hungarian
Presidency.
A second priority of the Hungarian Presidency is making
Europe stronger and to prepare it for the future. Since
the future of Europe is determined by its common policies,
thorough discussions will be held on the review of the
common agricultural policy (CAP) and the cohesion policy.
Being a new priority for the EU, the creation of a common
energy policy will also be on the agenda. In this context,
the special European Council of February 4 will be fully
dedicated to energy policy and innovation. In addition, the
Europe 2020 energy efficiency is another focal point for
the Hungarians. In the light of this, an informal Energy
Council will be held to prepare a low-carbon energy
LINKS
• Website of the Belgian Presidency of the Council of the European Union
http://www.eutrio.be
• Website of the Belgian EU Presidency of the Federation of Enterprises in Belgium (FEB)
http://eupresidency.vbo-feb.be
roadmap for 2050. Regarding climate change, the
Hungarian Presidency commits itself to the implementa-
tion of the Cancún decisions as well as to continue negoti-
ations to prepare the next negotiation rounds.
Furthermore, the Hungarian Presidency also plans to
launch preparatory discussions to tailor the multiannual
financial framework to the future needs and develop-
ments of the EU.
As a third priority, the Hungarian Presidency wants to bring
the EU closer to its citizens. Concretely, this means that
tangible results have to be achieved in the field of free-
dom, security and justice. Since these areas affect the
everyday life of the citizens, work will continue to enhance
cooperation in the field justice and home affairs. The pro-
tection of citizens’ rights is a priority as well. Therefore,
increasing the efficiency of the fight against organised
crime as well as the compensation of victims of crimes will
be discussed during the upcoming Presidency. Other key
issues in this field are cross-border inheritance cases, ma-
trimonial property regimes and the creation of a common
European asylum system. The Hungarian Presidency also
supports the accession of Romania and Bulgaria to the
Schengen area in the first semester of 2011.
The Hungarian Presidency’s fourth priority is the continua-
tion of the EU’s enlargement process. Within this context,
the integra-
tion process
of the
Western
Balkans has
to be contin-
ued. In addi-
tion, provi-
ded that the
member
states agree to start the accession talks with the Former
Yugoslav Republic of Macedonia (FYROM), Hungary
declared to be ready to take on the necessary Presidency
tasks. The Hungarian Presidency will also start discussions
in the wake of the Commission’s upcoming proposal on
the renewal of the common development cooperation
policy. 
Brussels calling- 19 -
TEAM PRESENTATION

Arnaud Thysen
at@vbo-feb.be

Michiel Humblet Michael Voordeckers

mv@vbo-feb.be
guesteurop@vbo-feb.be

Diane Struyven
ds@vbo-feb.be Pieter-Jan Van Steenkiste
guesteurop2@vbo-feb.be

This was the last issue of the ‘Brussels calling’ newsletter.

The European Department of the Federation of Enterprises in

Belgium wishes you a Merry Christmas and a Happy New Year!

FEB – Federation of Enterprises in Belgium

Ravensteinstraat 4 – 1000 Brussels – Tel. 02 515 08 11 – Fax. 02 515 09 15

PUBLISHER: Olivier Joris – Wolvenbergstraat 17 – 1180 Brussels

PUBLICATION MANAGER: Stefan Maes – Tel. 02 515 08 43 – sm@vbo-feb.be
GRAPHIC DESIGN: Vanessa Solymosi, Landmarks – sm@vbo-feb.be
COPYRIGHT: Reproduction with acknowledgement of source is permitted

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Brussels calling - 20 -