Transport ministers from the member states met up on Tuesday 5 December in Brussels during a Council of the European Union transport group. At a debate organised as part of the 868/2004 regulation review and focusing on the persisting unfair competition affecting airlines established in the Union due to company practices in third countries, ministers expressed their concerns and wishes in this connection.
The revision of the regulation was proposed by the European Commission on 8 June last in view of effectively combating these unfair practices (see EUROPE 11804). Ministers based their discussions on a progress report from the Estonian Presidency of the Council on 27 November last (see EUROPE 11917), which was welcomed by all the different speakers, including Transport Commissioner, Violeta Bulc. In the report, the Presidency proposed to give member states the option of ensuring that a bilateral aviation agreement on this text prevails in the event of any damages being suffered. The paper, however, is subject to sharp differences of interpretation, with some delegations considering that it is insufficient, whilst others believe it too binding.
There are two opposing camps: on one side, a group of countries gathered together around Germany and France would like the future regulation to be robust and really capable of imposing penalties on behaviour and breaches of international obligations or practices affecting competition. This group believes that this should be done by way of imposing financial sanctions or reducing the flying rights of airlines in third countries and follows the proposal by the European Commission in its text.
In contrast, many peripheral states or those in central and eastern Europe are concerned about possible retaliation measures against the European Union, which they believe could have an impact on the connectivity of certain regions. This is certainly the position of Slovakia, Ireland, Portugal and Greece. The delegations from these latter states were also quick to affirm that these kinds of measures could be counter-productive towards citizens in the Union who may subsequently have to pay higher fares to travel. This group of states is therefore of the opinion that the final text should take into account the geographical and economic situations of each Union country.
In reply to their arguments, the German delegation stated that, “They should not be worried about any reprisal measures”.
As explained to EUROPE by one diplomatic source, the positions are still very far removed from the aims and means attached to this text but that compromises could be possible in the future. (Original version French by Lucas Tripoteau)