login
login
Image header Agence Europe
Europe Daily Bulletin No. 10622
Contents Publication in full By article 19 / 23
SECTORAL POLICIES / (ae) competitiveness

Agreement hoped on COSME 2014-2020

Brussels, 29/05/2012 (Agence Europe) - European ministers responsible for competition and research are to meet on Wednesday 30 May and Thursday 31 May, with a particularly full agenda before them. They will seek to reach a political agreement in principle on two legislative proposals, one introducing the 2014-2020 programme for the competitiveness of enterprises (COSME), and the other a system for alternative dispute resolution of consumer disputes. No breakthrough is expected on the European patent.

Business activity. The Council will seek to reach an agreement on the main elements of the programme relating to competitiveness and small and medium-sized enterprises (SME) for the period 2014-2020, the COSME instrument, which was proposed by the Commission end 2011. A partial general approach by the Council, marking its agreement on the content of COSME, should facilitate the start of discussion with the European Parliament with a view to speedy adoption of the agreement. With a budget of €2.5 billion (still to be finalised in the context of the general EU budget), COSME will be a substitute for the Competitiveness and Innovation Framework Programme (CIP) over the 2014-2020 period in order to remedy market failings and promote access by SMEs to funding, and encourage entrepreneurship and the creation of businesses. Regarding access to funding, the programme's number one priority (with €1.4 billion being devoted to this), COSME will support SMEs through a risk capital facility for investment in the growth phase and direct loans or other risk-sharing mechanisms with financial intermediaries in order to cover loans. COSME also helps SMEs to gain access to the EU's internal markets and markets worldwide. Finally, COSME aims to encourage the creation of businesses by promoting the development of skills and entrepreneurial proficiency, especially among young people and women.

Consumers. The Council is to hold a policy debate on a proposal for a directive on the out-of-court-settlement of consumer disputes, as well as on a proposal for a regulation establishing online dispute resolution for consumer disputes. The aim of this is to reach general guidelines on the legislative package presented by the Commission end November 2011 (EUROPE 10505) pending the European Parliament's opinion in first reading. Member states have added “so many safeguard clauses” that the future rules are becoming “difficult to apply”, the diplomat explained, speaking of two groups of countries with, on one hand, those such as France and Germany that do not wish to question their well-furnished consumer protection system and, on the other, countries wishing to consolidate the internal market.

Patent. No breakthrough is expected on the European patent (see EUROPE 10619). Despite the call made by the European Council in favour of reaching a solution by the end of June, the issue still comes up against the matter of where the central division, responsible for settlement of patent-related disputes, is to be located. Three member states - Germany, France and the United Kingdom - hope to set up the jurisdiction on their territory. As was the case in the past regarding the place where the seat of a European body should be located, one may imagine that it will be up to the European leaders to settle the matter during the forthcoming summit at the end of June one diplomatic source explained.

Reactivating the internal market. Over lunch, ministers will discuss with Internal Market Commissioner Michel Barnier about the course to be taken for reactivating the internal market. Concrete proposals are expected this autumn. Ministers will be briefed on the results of the Vilnius meeting for the more “liberal” countries in favour of greater liberalisation of the single market. On Wednesday, they will adopt conclusions on better governance of the single market, including the need to shorten the duration of infringement proceedings opened against member states. The draft text, however, does not raise the European Parliament's idea of creating an independent single market prosecutor (see EUROPE 10620). It underlines the urgent need for initiatives aimed at creating a true digital internal market, especially when it comes to payments, intellectual property and the dematerialisation of public contracts.

Professional qualifications. Ministers will hold an exchange of views on the proposal for a directive aimed at improving the effectiveness of the system for recognition of professional qualifications. Ministers will discuss the Commission's idea of introducing a European professional card in order to facilitate worker mobility. Discussion will also turn to the timeliness of reducing the number of regulated professions - of which there are some 800 in the EU - by using a screening process. This process, which has already proven its worth with the “services” directive, would allow a country to justify the rules that it imposes, and also to question rules in force elsewhere in the EU.

Public procurement. The Competitiveness Council is to discuss a legislative package aimed at revising European legislation on procedures for awarding public procurement contracts. The Danish Presidency hopes ministers will provide clear guidelines regarding the use of electronic means that the Commission hopes to generalise by 2016 throughout procedures. The European Council is calling for a political agreement on the package by end 2012.

State aid. Competition Commissioner Joaquin Almunia is to present the Commission's recent communication on the modernisation of European rules relating to the control of state aid (see EUROPE 10611). Reform, the main elements of which should be in place by end 2013, has three main objectives: - control of state aid must support sustainable growth and contribute to the good use of limited public funding, in a context of budgetary consolidation, by discouraging aid that does not create true added value and which distorts competition; - controls must be focused on aid that has the greatest impact on the internal market and which may create competition distortion; - and rules and procedures must be simplified in order to speed up decision-making.

Research. On Thursday, the Research Council will seek to reach a political agreement in principle on the new Horizon 2020 framework for research and innovation called upon to replace the current 7th Framework Programme for Research. It will note the state of work on three other chapters of the future programme, namely the specific programme for implementation of Horizon 2020, the rules for taking part in the research projects, and the Euratom programme on nuclear research. The Council will be briefed on work underway aimed at amending the regulation establishing the European Institute of Innovation and Technology (EIT). Finally, it will adopt conclusions on European innovation partnerships. (MB with AN/FG/EH/transl.jl)