Brussels, 28/05/2013 (Agence Europe) - The Competitiveness Council on Wednesday 29 and Thursday 30 May will have a lot on its plate - see also specific articles on space and research.
Auditing. The ministers will hold their first discussion of reforms in the auditing industry, but are not expected to reach agreement in principle. The Irish Presidency of the Council of Ministers hopes to be given political guidelines on three key issues - the possible compulsory rotation of auditing companies, restriction in the number of services they can supply in connection with audits, and cooperation among national authorities.
In the light of the differences in national opinions, the Irish Presidency suggested last week as a compromise that a system of compulsory rotation be introduced after seven years (eight years for joint auditing), which can be renewed as long as a number of criteria are met for a further seven years (eight years for joint auditing). It also suggests that, on an exceptional basis, an audited company should be allowed to ask the competent authority to grant a further extension so that the auditing of the accounts can be done by the same company for up to two more years (three years for joint auditing).
Copyright. The ministers will be asked to examine the way copyright and royalties collection companies operate. Draft legislation was published on this in July 2012 (see EUROPE 10653). They will also discuss a report by former European commissioner Antonio Vitorino, who in January recommended improvements to the national charging schemes for private copies and clarification of the ways authors are remunerated (see EUROPE 10776). The Vitorino report was given a frosty reception by the Society of Audiovisual Authors (SAA), which fears that the measures recommended would damage the interests of rights holders and only benefit the manufacturers of multimedia devices. The ministers will be asked to come up with ideas on how to reduce fragmentation in this domain and to decide on the definition of what constitutes a private copy.
Industrial policy. After a first discussion over lunch about key generic technologies, the ministers will assess the situation facing European industry in a public debate. They will be informed by the Commission about follow-up on special measures to boost industries facing particular problems due to the economic crisis, such as the steel industry, automobiles, construction, and ship-building. With the danger of a trade war breaking out with China and splits in the EU27 over what to do about unfair Chinese competition, particularly for solar panels, the debate is likely to get heated (see related article).
Based on an update of the industrial policy unveiled by the Commission in the autumn of last year, the Council published a four-pronged conclusions document in December 2012, examining how to encourage investment in new or innovative technology; how European companies can take the best advantage of the internal market and international markets; how to improve access to finance; and how to increase investment in human resources and skills (see EUROPE 10748).
State aid. The ministers will try to reach agreement in principle on updating two major regulations on EU state aid rules - Regulation 659/1999, a so-called procedural regulation, and Regulation 994/98, an empowerment regulation. The update is part of a wider reform of state aid rules, to focus cash on sectors that contribute to economic growth, competitiveness or job creation and to rationalise and simplify control procedures by drawing the Commission's attention to aid that genuinely might cause an uneven playing field.
Against this backdrop, the procedural directive lays down rules to be followed in state aid investigations. The amendments to it aim to focus the Commission's work on cases having a significant impact on competition and trade in the single market. The empowerment regulation aims to make it possible for the Commission to introduce exemptions for specific categories under certain conditions, to rule that some types of aid are compatible with the EU treaty and to exempt them from the prior notification and approval requirements. The changes to it will extend the exemption to new types of aid, like aid for culture or for repairing damage caused by natural disasters.
Single Market Act. The Competitiveness Council will make a fresh assessment of the Single Market Act I and II (SMA), unveiled in April 2011 and October 2012. Announcing key initiatives for the single market, the two acts aim to boost the growth potential of the EU. Ministers will examine outstanding issues, such as the measures that have not yet been introduced (the directive on posted national workers, for example) or which have not yet been finalised (like the updates to the public procurement directive, electronic signatures and professional qualifications). (MB, SP, EH, FG/transl.fl)