EUROPE has obtained a revised annotated compromise from the Bulgarian Presidency of the Council of the European Union of regulation 868/2004 dated 3 April. This compromise does not suggest any major changes compared to the last text we reported on (see EUROPE 11983). Nonetheless, it does reveal the still very real differences between the respective national delegations on the means and action to tackle unfair competition by third country airlines.
Judging by the document, it does appear that there is still opposition between the first grouping of states from which a majority comes from central, eastern and peripheral Europe which are eager to protect the EU’s connectivity, and a second group of states based around Germany and France, which would like the revision of the 868/2004 regulation proposed by the Commission on 8 June last (see EUROPE 11804), to help introduce a more robust text. This is despite the fact that the current regulation has still never been used.
Therefore, although the Bulgarian Presidency of the Council is still suggesting that the threat of damages against a European airline due to the violation of international obligations or practices that distorts trade can justify the opening of an investigation by the Commission, 15 national delegations including Spain, Hungary, Italy, Poland and the United Kingdom, are proposing to rule out this possibility.
Although the most recent text also proposes that the Commission should be able to initiate an investigation from the moment it contains ‘prima facie’ evidence of a violation of international obligations or distortion to competition, Greece, Ireland, Finland, Malta, Poland and Sweden consider that this proof is insufficient for justifying the opening of an investigation.
On the basis of what the former Estonian Presidency of the Council was already pointing out, the Bulgarian Presidency has been examining the possibility of the procedure included in a multilateral agreement prevailing over this regulation (see EUROPE 11958). This has been maintained in this text. Moreover, France, supported by Belgium, Croatia and the Netherlands, support the idea of a Commission-led investigation being carried out at the same time as a procedure included in an aviation agreement.
Germany, Belgium, Croatia, France and the Netherlands also consider that the method advocated by the Bulgarian Presidency of the Council for deciding the interests of the Union which could decide on what investigation or measures could be taken, is complicated and rather unclear.
The dual opposition is also still visible with regards to the institution responsible for adopting sanctions in the event of violations to international obligations or practices that involve distortions to competition between those responsible for a decision emanating from the Council and those preferring that the Commission introduces implementing acts. On the question of sanctions in the event of practices that distort competition being observed, the text still does not involve the possible suspension or limitation of flying rights, contrary to the proposal from the Commission. On this point, Cyprus and Hungary agree that sanctions should not exclusively be financial, whereas Finland, Malta, Poland and Portugal would like the withdrawal of EU airport timetable slots not to be made possible.
The Bulgarian Presidency is ultimately in favour of restricting the entire procedure to 18 months, although the compromise text last February suggested a two year duration period.
Reaching an agreement this June is the objective
The Council’s experts “aviation” working party will be working on this new draft compromise at their the meeting on 16 April. The objective is to obtain a general approach under the Bulgarian Presidency of the Council and therefore, for this June. It should be recalled that MEPs at the Parliament’s transport committee reached their position on 20 March last and gave their rapporteur, Markus Pieper (EPP, Germany), a mandate for carrying out inter-institutional negotiations with the Council (see EUROPE 11985). (Original version in French by Lucas Tripoteau)