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Europe Daily Bulletin No. 7920
Contents Publication in full By article 16 / 42
GENERAL NEWS / (eu) eu/internal market/consumers

Public debate Monday with view to Stockholm Summit - Community patent and distance selling of financial services - Food Safety Agency

Brussels, 09/03/2001 (Agence Europe) - The Internal Market and Consumer Council is to open its work on Monday, in Brussels, with a public debate on the priorities of the internal market and regulatory simplification, with a view to the Stockholm Summit on 23 and 24 March. The Community patent and the distance selling of financial services will be the other main points on a full agenda. The working lunch will be devoted to parallel import systems, the trade marks regime and the Commission's proposal on the patentability of software. During the afternoon, ministers will tackle the question of the future food safety agency for the third time, the aim being to reach policy conclusions in June. The meeting will be placed under the chairmanship of Leif Pagrotsky, the minister responsible for trade at the Swedish Foreign Ministry, on the internal market side, and under Brittan Lejon, minister responsible for consumer policy at the Ministry of Justice, on behalf of consumers.

The public debate on internal market aspects of the Stockholm Summit will begin at 10h15. Commissioner Bolkestein will insist that ministers give concrete content to the conclusions of the Lisbon Summit, calling for "less poetry and more action", said his spokesman.

Discussions will be based on four Commission documents: 1) The annual Commission report on the functioning of the Community goods and capital market, presented in January this year (see EUROPE of 10 January, p.11). In the context of this annual review of internal market priorities, the so-called "Cardiff process", ministers should adopt conclusions identifying priority reforms. 2) The new strategy for the internal services market, also presented in January (see EUROPE of 11 January, p.11). The Commission proposes accelerating the adoption of several initiatives this year, concerning the recognition of qualifications and advertising. It also proposes to make a "horizontal" analysis of the current obstacles to trade. In 2002, it plans to present a second package of measures to overcome these obstacles. "The application of internal market rules in the services sector should be facilitated by Thursday's Court of Justice ruling on the ban on alcohol advertising in Sweden, which will set a precedent", a Commission spokesperson said on Friday (see other article p.14). 3) The interim report on regulatory simplification, adopted this week by the Commission (see EUROPE of 9 March, p.9). 4) The Commission communication on the "new labour markets in Europe", presented on 1 March (see EUROPE of 1 March, p.10).

In this context, the Presidency suggested that ministers should focus on three issues: 1) What should the priorities be for accelerating and completing the internal market? 2) Does the Council support the horizontal and two-stage approach proposed in the Commission's strategy on services? 3) What are the key elements of legislative simplification and what should the Community mechanisms be?

Community patent. The discussion will cover relations between the future Community patent and international legislation. The Commission called on Member States to request the convening of a diplomatic conference so that the current revision of the Munich Convention on European patents may take into account the future Community patent, expected in principle for end 2001. Ministers are expected to define a common direction, but the continuing divide could prevent adoption of this common position. We recall that the question of "Community patent" is still blocked over issues concerning the linguistic regime (Spain is opposed to a trilingual regime), the legal regime (Germany, especially, is opposed to a new centralised Community jurisdiction), and the future statute of national patents agencies.

Strategy for customs union. The Commission will give an oral presentation of its last communication on the challenges and priorities of European customs (see EUROPE of 17 February, p.9).

Distance selling of financial services. The ministers will hold a further policy debate on a draft directive presented in 1998 in order to adjust the framework directive on the distance-negotiated contracts specific to the sale of financial services. The aim is to facilitate electronic commerce while guaranteeing a high degree of protection for consumers.

Divergence on this complex issue mainly concerns: 1) information to be provided to consumers; 2) the right for consumers to withdraw after signing contracts; 3) relevant jurisdiction in the case of dispute: a majority of Member States hope legislation will be applied in the State which provides the service, while a minority hopes the relevant case law will be that of the consumer State. In its recent communication on electronic commerce and financial services (see EUROPE of 7 February, p.10), the Commission urges for competence to be given to the State that provides the service; 4) the introduction of a taxation regime in the legislation: most Member States, the Commission and the Presidency hope the legislation will remain neutral.

The Swedish Presidency has proposed a draft compromise based above all on: 1) harmonisation of the main information to be given to consumers, together with a system allowing Member States to introduce additional requirements; 2) harmonisation of the right to withdraw, payment rules and rules on

unsolicited information and services. Taxation and jurisdictional issues may, on the other hand, be forwarded to the Ecofin Council, which will examine the work of the financial group on the integration of the financial markets in May (see EUROPE of 28 February, p.17). The aim, however, is to reach an agreement in June on this dossier, which should have been settled at the end of last year.

E-Europe. The Council will take stock of the situation on the follow-up to the action plan on "an information society for all", adopted at the Lisbon Summit.

Integration of the environment in the Internal Market Council. The Council will be briefed by the Presidency on progress achieved in the development of a strategy that the Council must endorse on 5 June with a view to the European Summit of Gothenburg on sustainable development.

European Food Authority. The Council will note the state of progress in work on the new food legislation that will establish this new authority to be operational early 2002.

Labelling and traceability of GMOs. The Council: - will be informed by Commissioner David Byrne on the state of progress of work by the Commission that plans to submit further proposals this month on the labelling and traceability of GMOs, in order to increase the safety guarantees provided by revised Directive 90/220/EEC (voluntary dissemination of GMOs into the environment); - will hear the presentation of: a) the White Paper of 7 February on integrated product policy; b) the White Paper on the future strategy for chemical products.

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