The Newsletter3819 févr. 2009

La Lettre

Jacques Charmelot

9 February 2009

Foundation

Influence / Conference

1 January 1970

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At the initiative of Jean-Dominique Giuliani, President of the Robert Schuman Foundation and Jérôme Bédier, President of the Medef Europe Commission, the Foundation is co-organising on 10th February, in partnership with Medef, a conference entitled "French influence in Brussels: the true and the false"

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Financial crisis

Latvia

1 January 1970

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On 3rd February the Latvian Council of Minister approved the Action Plan for Economic Stabilisation of the country. Designed by the Finance Minister, Atis Slakteris, the plan provides for measures in the fiscal, financial, monetary and economic competitiveness fields. "The Plan includes important measures aimed at improving the competitiveness of companies and accelerating the absorption of European structural funds", said the Minister.

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Ireland

1 January 1970

On 3rd February the Irish Prime Minister Brian Cowen announced a series of government economy measures, amounting to an annual total of 2 billion € within the context of its programme for stabilisation, social solidarity and economic recovery. They involve mainly the public service, reduction in development aid, a reduction in family allowances and improved administrative efficiency. In spite of these budgetary restrictions, Ireland will contine to invest massively in the highways, school and housing sectors as well as in research because such investment is essential to guarantee competitiveness, growth and jobs for the future.

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Commission

1 January 1970

By virtue of the new temporary framework applicable to State aid, the Commission has approved a series of measures concerning recovery plans in 3 Member States: Germany, France and the United Kingdom. On 3rd February it approved a system of French aid for loans at reduced rate for companies investing in the manufacture of green products. On 5th February, it approved a French system for loans at a reduced rate of interest for companies in difficulty. That same day it approved a British measure for the granting of aid of 500,000 € to companies facing difficulty due to the economic crisis or who are encountering financing problems due to the credit squeeze. It also approved a German regulation on capital-investment allowing for an increase in the amount of capital investments that the German Länder can grant to small and medium businesses. These aids are authorised until 2010.

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Microcredit

1 January 1970

The World Bank and the German State announced on 5th February a package of 500 million $ in support of microcredit institutes, which are having difficulty re-financing due to the world financial crisis. This package should finance over a hundred microcredit establishments in over 40 countries and enable the release of loans to about 60 million people on low incomes in the poorest areas of the world, according to a release from the World Bank. The programme was drawn up by the IFC, the World Bank's institution dealing with operations with the private sector, and the KfW, the financial arm of the German State.

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Croatia

1 January 1970

The Croatian economy is starting to stumble faced with the global crisis. After seven years of economic growth of between 4.3% and 5.3% per year in Croatia, the European Bank for Reconstruction and Development (EBRD) predicted last week "stagnation" in growth in 2009, whilst the Zagreb Economic Institute (ZEI) fears a drop in Gross Domestic Product (GDP) of 1.4%. "GDP fell by 0.5% during the third quarter 2008 compared to the second quarter, and a similar fall is expected for the fourth quarter", stated the ZEI, concluding that "the Croatian economy has now therefore entered recession". Despite this slowdown in GDP during the second half of 2008, the local economy should still record 2.1% growth for the whole of the year, according to the ZEI, but the government had forecast, at the start of 2008, annual growth of 4.5%.

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Spain

1 January 1970

In December Spain saw an historic fall in industrial production, which illustrates the deep crisis in the country, which entered recession at the end of 2008, announced the National Statistics Institute (NSI) on 5th February. Industrial production fell by 19.6% in December, over one year, in seasonally adjusted figures. Production of consumer goods dropped by 10.8% with a fall of 31.4% for consumer durables and a drop of 7.3% for non-durable goods, whilst capital goods dropped by 21.6% and intermediate goods by 33.6%. This is the highest fall for 16 years; the NSI began its statistical series in 1992.

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Italy

1 January 1970

On 6th February the Italian government adopted a series of anti-crisis measures representing an amount of 2 billion €, including specifically a scrap bonus in order to relaunch car sales, announced the head of government, Silvio Berlusconi. These measures provide for the creation of a scrap bonus of 1,500 €, for Italians to buy more recent, less pollutant cars. The plan represents a total amount of "two billion euros", said the head of government at a press conference held after the Council of Ministers. In exchange he asked the car industry, as did the French President Nicolas Sarkozy, to "keep their factories in Italy, to invest in new products and to maintain payments to parts' manufacturers."

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Norway

1 January 1970

On 8th February the Norwegian government presented a new 100 billion krone plan (11.4 billion euros) aimed at boosting credit to businesses and individuals. The government proposes setting up two funds of 50 billion kroner each, the first to increase bank liquidities and the second to supply credit lines directly to companies having difficulty in finding finance. "We're doing this to help strengthen the job situation, strengthen the Norwegian economy and help with the creation of businesses", declared the Prime Minister, Jens Stoltenberg, at a press conference. This plan comes on top of a 20 billion krone recovery plan announced last month and another 350 billion krone plan to save the banking sector announced in October.

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United Kingdom

1 January 1970

The British economy is set to witness its worst recession in 60 years, weighted down by a fall in consumer spending and investment, warned the National Institute for Economic and Social Research (NIESR) on 4th February. According to this private institute, which publishes estimates on the British GDP every month, the UK economy is set to shrink by 2.7% this year, after growth that fell to just 0.7% in 2008. This slowdown in economic activity will be the result of a fall by 3.8% in consumer spending, households preferring to save, and corporate investment falling by 8.8%.

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Sweden

1 January 1970

On 3rd February the Swedish government proposed injecting up to 50 billion kronor (4.7 billion €) into the capital of Swedish banks in order to relaunch credit, a plan that will be combined with financial compensation. If the banks increase their capital, the Swedish State is also willing to contribute up to 70% of this new issue, said the government. "Getting the credit market moving again is essential to avoid the economic climate worsening still further. That is why we are presenting new measures to facilitate credit", declared the Finance Minister, Anders Borg and the Minister for Financial Markets, Mats Odell in a joint communiqué.

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European elections

Belgium

1 January 1970

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On 5th February, Michele Cercone, spokesman for the European Commission, declared that he wished to contact the Belgian authorities to obtain information regarding the refusal by several local authorities in the Brussels area to organise the forthcoming European elections. He stated that the fact of depriving some citizens of their voting rights was not in line with the principle of universality of the European elections. Three Flemish local authorities have currently decided to boycott the elections as a sign of protest against non-scission of the Brussels-Hal-Vilvorde (BHV) district. Scission of the district has been demanded by all Flemish parties seeking to ensure continuity of Flemish territory.

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Commission

1 January 1970

On 6th February Johannes Laitenberger, spokesman for the European Commission, confirmed that the European Commissioner for Information Society, Vivianne Reading, was an official candidate in the European elections to be held next June. He denied rumours regarding the candidatures of Jan Figel and Janez Potočnik, respectively commissioners for Education and Research, and warned against excessive speculation. He recalled the rules governing candidature for the elections: members of the Commission have the right to stand for elections, including elections to the European Parliament, but if they choose to play an active role in the campaign they must inform the President of the Commission, who may decide on leave from the Commission and interim arrangements for the management of files.

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Presidency

Family

1 January 1970

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At a meeting held on 4th and 5th February, the 27 ministers for the family discussed the Barcelona objectives in terms of child care. These objectives, adopted in 2002, aim to establish between now and 2010, childcare structure of at least 90% of all children between the age of 3 and school age and for at least 33% of children aged under 3. The Czech minister, Petr Nečas, underlined the fact that these objectives were adopted before the entrance of new Member States, which may have different approaches, and that a quantitative objective is not necessarily appropriate if parents wish to care for their children at home. He suggested a re-assessment of unpaid work done by parents looking after their own children. The discussion confirmed that Member States have different positions on the subject. They agreed on the need to take account of the child's interest, the quality of care and freedom of choice for families.

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Parliament

Climate

1 January 1970

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On 4th February MEPs adopted the initiative report by Karl-Heinz Florenz (PPE-DE, DE) aiming to define a future integrated policy for the European Union on climate change. MEPs believe that climate change should be the top priority for the Union's forthcoming financial framework. They plead for a target reduction by 25 to 40% of greenhouse gas emissions between now and 2020. A certain number of recommendations have been put forward: making energy efficiency legally binding, creating a European Community of renewable energy, accentuating efforts in terms of research and development, encouraging citizens to reduce their emissions and finally the creation of a European climate fund.

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Innovation

1 January 1970

In order to encourage European innovation, MEPs adopted on 3rd February the report by Malcolm Harbour (PPE-DE, UK) aimed at encouraging the signing of pre-commercial procurement contracts in the field of research and development. This instrument would mean that the public authority would not benefit from all the advantages of research and mean that companies concerned would retain legal security and the ownership of ideas. The reports reminds its readers that use of procurement contracts with a view to stimulating innovation has proved its worth in the United States and in Japan, and that it is a useful instrument for the development of small and medium businesses.

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SME

1 January 1970

The initiative report by Cristiana Muscardini (UEN, IT) on the role of European small & medium businesses in international trade was adopted on 5th February by MEPs by 437 votes in favour, 77 against and 69 abstentions. Whereas European small & medium businesses represent 99% of all companies, only 8% export outside their own national frontiers. MEPs are therefore calling on the Commission and Member States to accelerate the removal of barriers and to encourage international trade by simplifying and harmonising provisions on standards. They support the creation of an international multilateral register enabling small & medium businesses to protect their indications.

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Energy

1 January 1970

On 3rd February MEPs adopted Anne Laperrouze's report (ADLE, FR) presenting a strategic examination of the European energy policy. The report invites the Commission to propose a review of the 2004 directive on the safety of gas supplies. This review should include obligatory emergency action plans at national and community levels ensuring 90-day gas reserves and including the creation of a single European gas distribution network. MEPs advocate the conclusion of a tripartite agreeemnt between the EU, Russia and Ukraine, including an energy security clause in order to avoid disturbances due to commercial disputes. They underline the importance of diversity of supply channels.

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Guantanamo

1 January 1970

On 4th February MEPs adopted a resolution by 542 votes to 55 with 51 abstentions in which they congratulate the American President Barack Obama on closing the Guantanamo detention centre. MEPs also invited Member States to assist the American administration. This assistance will consist of envisaging the holding of some prisoners on European territory. A European delegation led by Jacques Barrot, vice-president of the European Commission, with responsiblity for justice and security, will go to Washington on 16th and 17th March to look at the file on prisoners and to discuss the fate of those being held.

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Kosovo

1 January 1970

On 5th February, MEPs adopted a resolution by 424 votes to 133, with 24 abstentions, in which they support the European prospects of Kosovo. They congratulated themselves on the agreement signed with Serbia regarding deployment of EULEX, a justice and police mission in Kosovo, and insisted on the need for a multi-ethnic polic force in every region of Kosovo. MEPs called on the Commission and Union Member States to help Kosovo to attain European standards in the public sector and to achieve economic transparency. Finally, the resolution invites those Member States that have not yet done so, to recognise Kosovo's independence.

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China

1 January 1970

Oon 5th February MEPs adopted the initiative report by Corien Wortmann-Kool (PPE-DE, NL), aimed at establishing a new partnership and cooperation agreement between the European Union and China. They call on China to open up its markets for goods and services still further, to comply with intellectual property rules and to continue with its economic reforms. Although they underline that cooperation with China is necessary for solving the current financial and economic crisis, MEPs believe that the development of commercial relations with China must go hand in hand with the development of political dialogue. They call on the Commission to implement restrictive clauses on Human rights, the environment, sustainable development and social questions in negotiations with China for the renewal of the partnership and cooperation agreement.

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Commission

Tax fraud

1 January 1970

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Within the context of its strategy on tax evasion and tax fraud, the European Commission adopted on 2nd February two proposals for new directives aiming to improve mutual assistance between the tax authorities in Member States for the the establishment of the amount and recovery of taxes and duties. These two proposals set forth joint procedural rules, enabling officials to carry out enquiries in other Member States and to extend the scope of application of existing directives. The European Commission suggests abolishing banking secrecy in relations between tax authorities. This proposal is aimed particularly at Luxembourg, Austria and Belgium, the three States within the Union that retain banking secrecy. On 3rd February, the Prime Minister of Luxembourg, Jean-Claude Juncker, stated that his country was "open to discussion" with the European Commission.

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Social dialogue

1 January 1970

On 3rd February the Commission published the 2008 Report on industrial relations. This report highlights the fact that collective bargaining continues to play a major role in Europe, particularly in the "old" Member States where 68% of employees are subject to a collective agreement compared with 43% in countries that have joined the European Union since 2004. The rate of union membership fell by 25.6% in 2005 compared to 27.4% in 2000, but varies between 8 and 80% depending on the Member States, whilst the rate of membership of employers' organisations remains stable, varying between 20 and 100%. The Commission notes that structured dialogue between employees' representatives and managers can help the European Union to face up to the economic crisis.

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Transport

1 January 1970

On 4th February the European Commission published a green paper on future challenges facing European policy in the development of the trans-European transport network (RTE-T). In view of what has been learned from implementation of this policy since 1996, the Commission suggests directing this policy towards three new objectives: the combat against climate change, improvement of connections between Europe, its neighbours and the rest of the world and support for economic and social development within the context of the Lisbon strategy. It also proposes three options for the development of intermodal transport services for both freight and passengers: combining all transport modes, making the best of fully interoperable intelligent transport systems and assimilating new technologies.

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Balkans

1 January 1970

On 3rd February the European Commission published a document containing an inventory of European Union activities in the Balkans in 2008 and 2009. The document focuses on over 90 actions and concrete initiatives financed by the EU in 2008 or planned for 2009. The Commission is up-dating its initiatives aimed at supporting political and economic development in Western Balkan countries, thereby helping to accelerate their progress on the road to EU membership. Its initiatives include liberalisation of the visas system, an increase in the number of scholarships and an extension of possibilities in the field of research. The Commission has proposed extending its plan for economic recovery in the Western Balkans and will allocate at least 120 million € of the budget of the instrument for pre-accession assistance (IPA) to support economic and social consolidation in the region.

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Russia

1 January 1970

On 6th February the President of the European Commission José Manuel Barroso and 9 members of the Commission went to Moscow to meet the Russian President Dimitri Medvedev and the Russian Prime Minister Vladimir Putin, to negotiate the major outlines of a new partnership and associative agreement between the EU and Russia. They specifically referred to ways by which to avoid a repetition of the gas crisis which affected the continent of Europe in January. On this subject, the Russian Prime Minister, Vladimir Putin, asked for EU observers to be deployed in Ukraine to supervise the transit of Russian gas to Europe, staying "at least" until the end of the first quarter of 2009. The European Commission also criticised the Human Rights position in Russia after the recent murders of journalists and defenders of public freedoms.

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ECB

USA

1 January 1970

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The European Central Bank (ECB) and the American Federal Reserve decided on 3rd February to extend their temporary reciprocal currency lines (swap lines) until 30th October 2009 in place of 30th April. This system was set up in mid-October 2008. The extension was sought by the American Federal Reserve in order to deal with tension on the dollar on world money markets.

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Euro

1 January 1970

On 2nd February the European Central Bank published its annual report "Euro Money Market Study, 2008". This report highlights the impact of the current financial crisis on several segments of the European money market, with a fall for the first time since 2004 in the aggregate value of euro money markets. The Swaps sector has been particularly badly affected. With the exception of this turbulence whcih is affecting a few specific segments, the ECB has not observed any structural change in maturity distribution in most money market segments, although it does underline the fact that from a qualitative point of view, the turmoil is affecting the liquidity and efficiency of several money market segments.

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Rates

1 January 1970

On 5th February the European Central Bank decided to leave its interest rate on main refinancing operations unchanged at 2%, as well as its two other rates for marginal lending facility and deposit facility at 3% and 1%. The President of the ECB, Jean-Claude Trichet, indicated that he considered the rate of 2% to be appropriate but did not exclude any future interest rate reductions.

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EIB

Mediterranean

1 January 1970

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On 30th January the European Investment Bank and 9 other financial establishments signed a memorandum of agreement in Paris firming up the memorandum of intent signed last July in Paris, on the fringe of the Summit meeting of Heads of State and government creating the "Union for the Mediterranean". These 10 financial establishments will be joined in the near future by the African Development Bank. The memorandum provides for the implementation of 20 concrete projects involving financial transfers by migrants, banking, insurance and property products, small and medium businesses and the financing of major projects and infrastructure.

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Germany

Security

1 January 1970

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At the security conference held in Munich from 6th to 8th February, the American Vice-President Joe Biden undertook, on behalf of the Obama administration, to adopt a "new tone" with other countries after the Bush years, but warned his own allies that he would be making demands in return. "I have come to Europe in the name of a new administration that is determined to establish a new tone, not only in Washington, but also in America's relations with the rest of the world", he declared. To illustrate his words he suggested a new beginning with Iran and Russia. The French President Nicolas Sarkozy thought that "the time is coming" to explain to the French people that the alliance with the United States does not harm French independence, taking another step towards reintegration into NATO, left in 1966. He did set a "condition" however, in that "France wants to renew its relationship with NATO by being an independent ally, a free partner of the United States".

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France

1 January 1970

The French President Nicolas Sarkozy and the German Chancellor Angela Merkel announced a "joint initiative" on the economy on 7th February. In terms of the economy "we are going to take a joint Franco-German initiative to make Europe stronger", stated Angela Merkel at a joint declaration made to the press with the French President. "We will take a joint initiative to ensure that Europe is more united, more determined and more reactive" faced with the economic crisis, added Nicolas Sarkozy.

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Resignation

1 January 1970

The German Economy Minister, Michael Glos (CSU), handed his resignation to the Chancellor Angela Merkel on 9th February. He is replaced by Karl-Theodor zu Guttenberg, 37, member of the Bundestag since 2002 and general secretary of the CSU for the past 3 months.

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Spain

Unemployment

1 January 1970

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On 3rd February, the Spanish Employment and Immigration Ministry published its unemployment figures, which show an increase of almost 200,000 job seekers since January 2009 (+6.35%). With unemployment at over 3.3 million the unemployment rate in Spain reached 13.9% during the 4th quarter 2008, the highest in the European Union. The Spanish head of government, José Luis Rodriguez Zapatero, reiterated his call on banks to promote credit. He announced the creation of 300,000 jobs, planning for the creation of 32,000 new projects. The ministry's report indicates that unemployment is increasing more particularly in the building, industrial, service and agricultural sectors. It indicates that men and young people are particularly affected by this increase.

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Finland

Security

1 January 1970

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The Finnish President, Tarja Halonen, spoke on 4th February to the Eduskunta (Finnish parliament) for the opening of the parliamentary session. In her opinion Finland must be consensual in terms of security questions: a governmental report should be presented to Parliament in the near future. This report will raise the possibility for Finland of applying to join NATO and reaffirms Finland's participation in the international management of crises. With regard to the economic crisis, she believes that this should not divide the country and that measures must be taken to correct the system, specifically by means of international cooperation.

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France

France-Germany

1 January 1970

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On 4th February the French President Nicolas Sarkozy and the German Chancellor Angela Merkel signed in "Le Monde" and "Süddeutsche Zeitung" an article on "Security, our joint task". Just a few weeks after the election of the American President, Barack Obama, and a few weeks before the 60th anniversary of the Atlantic Alliance, which will be celebrated in Strasbourg and Kehl on 3rd and 4th April, they consider that "faced with the world's uncertainties, a concerted policy is essential", "convinced that it is in our interest to make the building of Europe and the Atlantic partnership the two sides of the same security policy". The second part of the article is given over to military cooperation.

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Unemployment

1 January 1970

The statistics department at the French Employment Ministry indicated on 2nd February that the number of job seekers registered with the ANPE (National Employment Agency), which has been the official barometer since 1995, reached 2,114,300 at the end of December, up by 11.4% over the year. This figure includes only those people who are looking for a full-time, permanent job. The increase is affecting men (+16.3%), women (+ 6.4%), young people (+ 19.5%) and the over 50s (+ 8.8%), and occurred mainly as from the month of August. In December the number of registered job seekers was up by 2.2% (+ 45,800).

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Defence

1 January 1970

The first German unit to be posted on French territory since 1945 will be located in Illkirch, near Strasbourg, and will include over 600 soldiers, said the French President Nicolas Sarkozy and the German Chancellor, Angela Merkel, on 7th February. This battalion "will include companies of reconnaissance and infantry soliders and a general staff corresponding to a force of between 600 and 700 men and will be operational". Installation will be the object of "gradual increase in strength over several years; France and Germany are "thus turning a page in their history". "It is an honour and a joy for us that, for the first time since the Second World War, France has declared that the Franco-German Brigade will not be stationed in Germany alone but also in France", declared the German Chancellor.

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Luxembourg

Investments

1 January 1970

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Jeannot Krecké, Luxembourg Minister for the Economy and Overseas Trade, and Jean-Louis Schiltz, Minister of Communications, presented on 3rd February the plan for investement in electronic communications infrastructures. "In view of the difficult economic situation, greater investment will mean support for Luxembourg companies facing difficulties in the current economic climate" believes the governement. With regard to mobile networks, 15.5 million € will be invested in 2009. This is above all investment in broad bank networks and in improvement of the UMTS network. For 2009, investments in I.T. amounted initially to 14 million € but have been increased to 22.8 million €.

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Italy

1 January 1970

Within the context of the State visit to Luxembourg by the President of the Italian Republic, Giorgio Napolitano, the Prime Minister Jean-Claude Juncker and the Italian President held a joint press conference on 3rd February. This was an opportunity to recall the strong links that unite the 2 countries, for both historic and political reasons, as well as referring to the challenges facing the European Union: European solidarity in terms of the economic crisis and ratification of the Lisbon treaty. The conference was also an opportunity for the Luxembourg Prime Minister to condemn firmly the discriminatory language used in the United Kingdom with regard to the influx of immigrant workers.

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The Netherlands

Iraq

1 January 1970

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At the request of the Dutch Prime Minister, Jan Peter Balkenende, an independent commission was created on 2nd February to look into the Netherlands' decision to take action in Iraq alongside the American army in 2003. The commission will be headed by Willibrord Davids, former President of the Supreme Court and its report should be published between now and 1st November 2009.

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Poland

Defence

1 January 1970

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Poland is suspending its missions to Chad, Lebanon and on the Golan Heights, "because of budgetary cuts" due to the world crisis, annnounced the Polish Defence Mininster, Bogdan Klich, on 4th February. "These three missions are being cut, notably due to budget cuts, but also due to the fact that missions under the aegis of the United Nations (UN) are not a priority for Poland", declared Bogdan Klich to the all-day news channel Tvn 24. "NATO and EU (European Union) missions are Poland's priority", he added, the most important currently being in Afghanistan, where Warsaw has deployed 1,600 soldiers.

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Czech Republic

Treaty / Postponement 2

1 January 1970

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Members of the Czech parliament decided on 4th February to postpone to 17th February at the earliest their vote on the Lisbon Treaty. When debates opened on 3rd February, the Czech Prime Minister Mirek Topolanek requested that the vote be postponed to give ad hoc parliamentary commissions time to submit their findings. Members of Parliament decided by 115 votes in favour, 73 against and 6 abstentions, to follow this advice. The vote had already been postponed once, from December to the beginning of February.

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Defence

1 January 1970

On 4th February the Czech parliament postponed the vote on deployment in the Czech Republic of a radar station within the context of the American anti-missile defence project. This vote was initially set to be on the agenda for the current session of the lower chamber, which opened on 3rd February. Of all 194 parliamentarians present, 100 voted in favour of postponement. Postponement was proposed by the Greens governmental party, which wishes first to know the exact position of the administration of the new American President Barack Obama on the anti-missile shield project, promoted by his predecessor, George W. Bush.

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United Kingdom

China

1 January 1970

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At a joint press conference held in London on 2nd February, the British Prime Minister Gordon Brown welcomed a series of agreements made between China and the United Kingdom, and specifically a protocol of agreements on the promotion of British trade in some Chinese cities, which should allow the United Kingdom to double its exports up to 10 billion pounds sterling between now and 2010. Like his Chinese opposite number, Wen Jiabao, Gordon Brown is convinced that protectionism is the "main threat" to resolution of the world economic crisis. He added that the two countries were favourable to reform of international financial institutions and the creation of an early warning system for the world economy. The two heads of government also referred to the matters of human rights and Tibet.

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Rates

1 January 1970

The Bank of England has cut is bank rate from 1.5% to 1%, the lowest since the bank was founded.

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Sweden

Energy

1 January 1970

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Further to adoption, by the European Council, of the Energy-Climate package, the Swedish government presented on 5th February a document entitled, "A sustainable energy and climate policy for the environment, competitiveness and long-term stability". The Swedish energy policy must be based on three pillars: ecological sustainability, competitiveness and security of supply. This document provides notably for a five-year programme to improve the country's energy efficiency. The Swedish government has also announced that it is going back on its decision to close its nuclear fleet within the next thirty years. Nuclear energy represents nearly half of all electricity generation in Sweden.

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Iceland

EU?

1 January 1970

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After her appointment to the head of the Icelandic government, the new Prime Minister, Johanna Sigurdardottir, declared on 4th February that Iceland's membership of the European Union and then of the euro zone seemed to her to be "the best option" to get her country out of the crisis. "In my opinion the best option is to join the European Union and adopt the euro", she said at a press conference.

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Russia

A new URSS?

1 January 1970

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On 4th February, Russian, Armenian, Belarus, Kazak, Uzbek, Tajik and Kyrgyz leaders decided to create a "collective rapid reaction armed force". This decision, deemed "urgent", is a response to possible "external threats", such as the fight against terrorism, drug trafficking and organised crime. In parallel, Russia, Belorus, Kazakhstan, Kyrgyzstan and Tajikistan decided, within the context of the Eurasian Economic Community Council, to create a joint fund of 10 billion $ to combat the consequences of the economic crisis. On 3rd February, Russia signed with Belarus an agreement on the creation of a unified anti-air defence system and obtained agreement from Kyrgyzstan for the closure of a major American military base set up on its territory in 2001.

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Serbia

EU/integration

1 January 1970

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At the end of a regional conference organised in Belgrade on 3rd February on the financial crisis, the Serbian deputy Prime Minister with responsibility for European integration, Bozidar Djelic, called on the European Union to provide economic aid to western Balkan countries to help them deal with the financial crisis and assist in the prospect of their membership of the European Union. He said that countries in the region wished to see the EU remove the visa obligation for their citizens in 2009. This conference included representatives from Serbia, Montenegro, Bosnia, Croatia, Albania and Macedonia. The same day the first deputy Prime Minister and Interior Minister Ivica Dacic met with representatives from the European Commission to discuss the integration process and specifically the policy on visas. The accent was put on progress made by Serbia. The European Commission is to present its report on Serbia in the spring.

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Switzerland

Referendum

1 January 1970

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On 8th February the Swiss people massively approved renewal and extension to Bulgaria and Romania of agreements on the free movement of workers with the European Union. According to official results, the Yes vote won 59.6% of votes cast in the Helvetian Confederation where 22 of the 26 cantons voted in favour of collaboration with Brussels, which has enabled 200,000 Europeans to work in Switzerlands since 2002. The No vote obtained 40.4% of votes cast. The Swiss authorities saluted the "choice for the future", which backs up the "bilateral route" between the Confederation and its leading economic partner. For its part Brussels has passed on its "congratulations" to the Swiss who have accepted to prolong a "key agreement" opening "the way to strengthening of the existing fabric", between the Confederation and its neighbours, explained the President of the European Commission, José Manuel Barroso.

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Unemployment

1 January 1970

Unemployment continued to increase in Switzerland in January, reaching 3.3% during the month of January compared with 3% in December; its highest level in two years, according to figures published on 6th February by the Swiss authorities.

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Turkey

Climate

1 January 1970

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On 5th February the Turkish Parlimaent ratified the Kyoto protocol, the international treaty aimed at combatting climate change. The protocol currently commits 37 developed countries to reducing their greenhouse gas emissions between now and 2012 by an average of 5% compared to 1990 levels. Just a few months ahead of the forthcoming international conference on climate change to be held in Copenhagen, this ratification represents an encouraging sign in terms of commitment by the international community to combat climate change.

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UN

Black Sea

1 January 1970

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On 3rd February the International Court of Justice handed down an order on delimitation of the Black Sea continental shelf between Romania and Ukraine, a case that was submitted to it in 2004. The decision, which is final and irrevocable, confirms that Serpents' Island, which is Ukrainian territory, does not give the island rights over the 12,000 nautical miles of the continential shelf that surround it. In its order, made unanimously, the Court set a delimitation line that goes from the intersection point between the territorial waters of Romania and the territorial waters of Serpents' Island, which belongs to Ukraine. The maritime boundary then follows the arc with a radius of 12 marine miles which surrounds Serpents' Island through to its intersection with the line equi-distant from the adjoining Romanian and Ukrainian coasts. It then continues along the length of a line that is equi-distant from facing Romanian and Ukrainian coasts. Representatives from both Ukraine and Romania declared that they were satisfied with the Court's decision.

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ICJ

1 January 1970

A Japanese man, Hisashi Owada 76, was elected President of the International Court of Justice (ICJ) in The Hague on 6th February, taking over from the British judge Rosalyn Higgins. The Slovakian, Peter Tomka, 52, has been elected vice-President. He takes over from the Jordanian judge, Awn Shawkat Al-Khasawneh. Mr Owada and Mr Tomka, members of the ICJ since 2003, will remain in office for 3 years.

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Eurostat

Industry

1 January 1970

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According to figures published by Eurostat on 3rd February, industrial production prices fell by 1.3% in the euro zone and by 1.4% within the European Union during December 2008 compared to November 2008, even though, compared to 2007, the average industrial production price index increased in 2008 by 6.2% in the euro zone and by 8.1% in the European Union. This drop concerns mainly prices in the energy sector, which fell by 3.7% and 3.8% respectively.

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Trade

1 January 1970

According to the latest figures published by Eurostat on 4th February, the volume of retail sales remained stable in the euro zone and throughout the European Union in December 2008 compared to November 2008. In December 2008, compared to December 2007, the sales index was down by 1.6% in the euro zone and by 0.8% in the whole of the European Union.

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Studies / Reports

WTO

1 January 1970

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The Bruegel Institute has published a study by Henrik Horn, Petros C. Mavroidis and André Sapir entitled "Beyond the WTO? An anatomy of EU and US preferential trade agreements." The authors analyse the provisions of the preferential trade agreements of the two powers, agreements that are often criticised for their inequality despite WTO rules. The authors believe that although the European Union and the United States have taken very different approaches concerning these agreements, they are both seeking to protect their priorities in world regulation.

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EU-Russia

1 January 1970

The German Society for Foreign Policy (DGAP) has just published a study on developments in EU-Russia relations since the Russian-Georgian conflict in the summer of 2008 and the gas crisis between the Ukraine and Russia at the start of 2009. According to the authors, Stefan Meister and Alexander Rahr, Russia is attempting at all costs to impose its policy, without taking any account of European interests and is showing itself to be reticent in terms of the pro-western orientation taken by some of the former Soviet republics, which is working against the European policy with regard to its neighbours.

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Crisis

1 January 1970

The Centre for European Reform has just published a study on new Member States of the European Union and the financial and economic crisis. These countries have been severely affected by credit restrictions and by the collapse of their export markets. Central and eastern European countries have the feeling that their post-Cold War growth model, based on liberalisation and European integration, has broken down. The risk is not so much that of political agitation but rather that of postponement of their policies, whereas they must prepare for ageing of their populations and for evolution towards a more ecological and more diversified growth model, based on innovation.

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Publications

Turkey

1 January 1970

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The Center for European Studies (CES) and the Constantin Caramanlis Institute for Democracy (CKID) have published a book directed by Constantine Arvanitopoulos entitled "Turkey's Accession to the European Union – An Unusual Candidacy".

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Territorial Authorities

1 January 1970

Dexia Editions has published a joint work under the direction of Dominique Hoorens, Study Director, on "Les collectivités territoriales dans l'Union européenne – Organisation, compétences et finances" ("Territorial Authorities in the European Union - Organisation, jurisdiction and finances"). This book presents a transversal analysis of the various problems facing the infra-national European public sector (survey of efficieny in management methods used by local public departments, inter-authority cooperation, etc.) and detailed monographs for each of the 27 Member States of the European Union.

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Kyoto

1 January 1970

The February issue of the Internationale Politik magazine is devoted to climate change. According to two American researchers, the Kyoto protocol should be forgotten as it will do nothing to prevent climate change. In their opinion it would be better to invest more in green technologies, which would also involve the two main emitters of CO2, the United States and China.

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Europe/crisis

1 January 1970

The new issue of the "Revue politique et parlementaire" ("Political and Parliamentary Review")(directed by Bertrand Cluzel) has just come out. Its theme is "Europe in crises: towards domesticated capitalism?" and includes contributions from, amongst others, Jacques Barrot, vice-president of the European Commission, with responsiblity for justice, liberty and security, Christian de Boissieu, deputy president of the Economic Analysis Council, Jean-Dominique Giuliani, president of the Robert Schuman Foundation and Bruno Le Maire, French Secretary of State for European Affairs.

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Germany

1 January 1970

Lignes de repères publications have just published a book by Claire Demesmay and Daniéla Heimerl entitled "Allemagne, une mystérieuse voisine, portrait en vingt tableaux" ("Germany, a mysterious neighbour, portrait in twenty pictures"). The book is a portrait of this country in the throes of renewal, using twenty "places of memory" that are emblematic of the new German reality: Germany remembers, affirms itself, provokes, innovates and has fun.

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Culture

Memorial / Leipzig

1 January 1970

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Bernd Neumann, government delegate for culture and media, announced on 29th January that a new monument would be built in Leipzig between now and 2014 to commemorate the peaceful revolution of former GDR in 1989. Leipzig was an important venue for demonstrations by human rights militants against the regime in former GDR. He indicated that the government was prepared to subsidise the building of a monument commemorating unity and liberty, in the amount of 5 million €.

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Cinema/Europe

1 January 1970

Last year cinemas hosted an audience of 920 million in Europe, marginally up by 0.3% over the year, announced the European Audiovisual Observatory in Strasbourg on 9th February. The most marked increase was observed in Russia, where attendance increased by 16.2% with 124 million seats sold, taking the country for the first time into the ranks of the five top countries in terms of cinema attendance. However, increases seen in Russia, which is in 4th place in terms of seats sold, are less than those seen in Turkey (+23.6% with 38.5 million tickets) and Slovakia (+18.2%, 3.3 million). The most cinema-loving nations remain France, up by 6.2% with 188.8 million tickets sold, followed by the United Kingdom (164.2 million,+1.1%) and Germany (129.4 million, +3.2%).

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Agenda

Newsletter Archives

The European Union and its islands as they face today's challenges

Ukraine: Behind the Kremlin's ill will lies the risk of eternal war

Up against Trump, Canada's unlikely European destiny

A Danish Presidency that is embracing the European Union like never before

Ukraine's path to the EU: reform, resilience and the politics of enlargement

The Editors of the Newsletter :
Stefanie Buzmaniuk, Helen Levy

N°ISSN : 2729-6482

Editor-in-Chief :
Eric Maurice

Director of Publication :
Pascale Joannin

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The Newsletter n°381- version of 9 févr. 2009