The COREPER meeting of member states’ representatives of the EU on Friday 4 May reached unanimous agreement on revision of Regulation 868/2004 on tackling unfair, anti-competitive practices by non-EU airlines.
Agreement by all the sherpas was not necessarily expected at this stage, explains a source, since the talks had revealed recent marked disagreements between an initial group of countries, mostly from central, eastern and peripheral Europe, which are anxious to protect the connectivity of Europe, and a second group, headed by Germany and France, which call for strict rules, despite the fact that the current text has never been able to be used.
While the parties to the talks are pleased that agreement has been reached, the text agreed by the national representatives is less prescriptive than that unveiled by the European Commission on 8 June 2017, which is only natural given the various sides’ starting positions (see EUROPE 11804).
Compared with the 3 April draft compromise prepared by the Bulgarian Presidency of the Council of the EU and discussed in this newsletter (see EUROPE 11995), the agreed text no longer states that violation of an international obligation or a threat of damages caused by anti-competitive practice against a European airline could justify the opening of an investigation by the European Commission. Only damages resulting in an uneven playing field could now be subject to an investigation and possible penalties.
In terms of the type of penalties, while the agreement does not include the option of suspending or restricting flight rights, unlike the European Commission’ proposal, operational measures may be taken in addition to financial penalties.
There was also disagreement over the competent authority for issuing penalties. The member states suggested that it should depend on the type of penalties. The European Commission would thus be competent for financial penalties and the Council, via implementation acts adopted following a proposal from the Commission, would deal with issuing operational measures.
The agreement will now be submitted to transport ministers at the Transport Council on 7 June. A general approach will then be adopted so that interinstitutional talks can begin in trialogue with the European Parliament. MEPs on Parliament’s transport committee adopted a more demanding negotiating position on 20 March in line with the spirit of the European Commission’s initial proposal (see EUROPE 11985). (Original version in French by Lucas Tripoteau)