During initial discussions with the Commission on 25 September, a majority of MEPs meeting in the transport committee welcomed the draft revision of Regulation 868/2004 on the protection of EU airline handlers against subsidies and unfair pricing practices by third country operators.
First of all, Filip Cornelis, the acting Director for Aviation at the Directorate General Mobility Services and Transport (DG MOVE) at the European Commission provided a summary of the Commission’s proposal. On 8 June, the European Commission published a proposal as part of an aviation package of initiatives, to revise Regulation 868/2004 (see EUROPE 11804) and to protect EU airline handlers against subsidies and unfair pricing practices by third country operators. The current regulation has never been used due to the lack of sufficient instruments and the Commission would like a binding mechanism in order to impose financial sanctions on “practices affecting competition” or those that breach international obligations. The Commission considers that the use of such a mechanism will only take place when negotiating and bilateral solutions cannot be adopted.
Markus Pieper (EPP, Germany), rapporteur for the text, was the first MEP to speak and said that the presentation by the European official had been “convincing”. He welcomed the proposal to introduce an instrument of deterrence and said he was “very optimistic” about what would happen. The proposal was also received positively by Gabriele Preuss (S&D, Germany), who used this occasion to point out that the introduction of this kind of instrument did not seek to “eject” certain non-EU companies from the European market. Although Pavel Telička (ALDE, Czech Republic) and Marie-Christine Arnautu (ENF, France) had far more misgivings about the impact study and timing, they did welcome the text proposed by the Commission. Only Michael Cramer (Greens/EFA, Germany) was more critical and highlighted the need to tackle unfair competition in the European Union, before attacking third country practices. During the first discussion, the speakers appeared determined to co-operate in this dossier, in an effort to reach a solution that was acceptable to all.
Negotiations to begin at Council. Ministers had already had an opportunity to debate the issue during a meeting of the Council of the European Union’s transport meeting on 8 June last (see EUROPE 11805), which witnessed differences between Western European countries, which are more likely to take binding measures against unfair practices by non-EU airlines, and Eastern European countries, which have more reservations about the matter, due to their concerns their territorial connectivity. Although all the states took a position against the practices in question, it is the way in which they respond to them that could prove problematic and make this a politically sensitive dossier. Cornelis acknowledged the existence of divergences at the Council on the issue of connectivity but was eager to highlight the fact that connectivity would be “the beneficiary” and not “the victim” of the proposal to revise the text.
It is, however, difficult to analyse the position of each national delegation at the Council today, given that the working groups on aviation have just finished examining the European Commission’s impact study. The first round of negotiations is expected to begin this week between the national experts. (Original version in French by Lucas Tripoteau)