Brussels, 14/11/2002 (Agence Europe) - The European Commission is to adopt, next Tuesday in Strasbourg, a communication following the decision by the Court of Justice on 5 November condemning eight Member States (United Kingdom, Denmark, Sweden, Finland, Belgium, Luxembourg, Austria and Germany) for having concluded "open sky" agreements with the United States (EUROPE of 6 November, p.13). The Commission is expected to call on: (1) Member States found guilty to give up the agreements declared unlawful by the Court; (2) Member States not yet found guilty but which have concluded similar agreements (Netherlands, France, Italy and Portugal) to also give up the agreements; (3) all EU Member States not to conclude new agreements in the field of air transport before the Commission has analysed the consequences of the ruling; and (4) the Council, for a mandate to negotiate with the United States on an agreement in this respect. Furthermore, the communication should suggest the possibility of negotiating similar agreements with other third countries, such as Russia or Japan, at a later date.
According to the Court of Justice, by passing such agreements the Member States concerned were treading on Commission powers, and the nationality clause contained in the agreements (giving traffic rights to US carriers to, from and on the territory of the EU in exchange for similar but strictly limited rights for the national companies of these eight States) entailed competition distortion within the EU. The Member States concerned should therefore denounce these agreements independently of the retaliatory measures that the United States could take towards them. Otherwise, it is likely that the Commission will go back before the Court for non-application of the ruling. Over and beyond the legal issue, there is also the political side at stake. "If the United States sees that Europeans are divided, they will take advantage of this in negotiations", one Community source explains, considering that "mass withdrawal" would be more comfortable for the EU. The Commission should take advantage of the transitional one year period, between denouncing the agreements and the time when the agreements no longer have an effect, in order to actively negotiate with the United States on an agreement to create "a common transatlantic air space", as Commissioner Loyola de Palacio explained.