Nice, 08/12/2000 (Agence Europe) - After 30 years of hedging, the Heads of State and Government of the European Union managed, on Friday, to reach a compromise on the social chapter of the European company, which should allow for the rapid adoption of the statute so long awaited by European business. The agreement among the Fifteen had been in suspense since 1999 waiting for the regulation that would establish this statute (that must be adopted through unanimity) and for the connected directive concerning worker participation. Spain was against it, fearing it would have to import the German system of co-management, during company mergers. It finally secured a kind of exemption, as the compromise provides for leaving Member states the "faculty of transposing, or not, into their national law, the reference provisions relating to participation applicable to European companies constituted by mergers". There are, however, conditions: For the European company to be able to be registered in a Member state not having transposed the reference provisions, there has to be agreement on the modalities relating to worker involvement, including participation, or that no participating companies have been governed by the rules of participation before the registration of the European company, say the Summit's conclusions. On that basis, the Summit calls on the Council "to polish off the two texts left in suspense by the end of the year. The European Parliament's opinion on the regulation dating back to 1991, further consultation may be necessary, which could delay definitive adoption until early next year", said a European Commission spokesperson.
Before the Summit, many bilateral contacts had taken place between Spain and the French Presidency. European Commissioner Fritz Bolkestein also had talks last week with Jose Maria Aznar in Madrid. According to him, the statute of the European company will be of great use to European companies operating in several Member States, and enable them to considerably reduce their administrative costs. "In 1995, a group of experts evaluated at 30 billion ecu a year savings that could stem from this for companies", said a spokesperson for the Commissioner. "European companies will possibly hesitate twice before opting for this statute in the sense that no specific tax system has been provided for the European company", however, says a European source.