Tanaiste Chairs Competitiveness Council Meeting in Brussels

Tánaiste chairs Competitiveness Council Meeting in Brussels

Ministers urge more spending on quality research and innovation in Europe

Failure to reach agreement on Community Patent "deeply disappointing," - Harney

European Enterprise Ministers have issued a strong recommendation to the forthcoming European Summit urging the "simplification and streamlining" of rules and regulations for European industry and business. This follows an earlier agreement by the Ministers to screen a range of existing EU legislation for its cumulative impact on competitiveness and innovation.

The Competitiveness Council, chaired by the Tánaiste (Deputy Prime Minister and Minister for Enterprise, Trade and Employment, Mary Harney TD has also agreed to enhance the "competitiveness-proofing" of key proposals across other Council formations. The Draft Chemicals Regulation is the first such legal instrument to be subject to rigorous impact assessment as part of the new policy process.

The Competitiveness Council has also advised the Heads of Government that a higher proportion of the EU budget should be invested in scientific research and development. "The best approach to improving Europe's R & D performance, which faces clear challenges, particularly from the US, is to generate genuine competition among the best researchers, supported by independent global peer review", the Tánaiste said.

The Council, in its first formal meeting of Ireland's EU Presidency, noted that the expected improvement in the world economy this year and the accession on May 1^st of ten new member states provided a new opportunity to address the 10-year growth and employment targets set at the Lisbon summit in 2000.

"At the heart of this challenge is the promotion of conditions which foster investment, innovation and greater competition. The regulatory regime must not only be fair and effective but must be proportionate and avoid stultifying enterprise" the Ministers stated, in a formal communication to the Heads of Government which will be considered at the European Summit on March 25^th.

Analysis of on-going industrial restructuring within the EU, including concerns about "out-sourcing" of elements of European industry, notably to India and the far-East, "as well as the challenges facing particular sectors, including those with a strong research base such as the pharmaceutical industry", will remain to the fore of the Council's work programme, they stated.

The Ministers also welcomed a European Parliament vote yesterday for a Directive on the Enforcement of Intellectual Property Rights. The directive will be formally adopted next month. The activities of counterfeiting and piracy had given rise to serious difficulties for governments and industry and carried a high cost in terms of lost revenues and jobs, the Tánaiste told the Council. The proposed measure would give new powers to national authorities to seize infringing goods and to force offenders to pay compensation for lost income.

The Competitiveness Council also endorsed a EU Commission proposal for a new regime of cooperation between national authorities responsible for the enforcement of consumer protection laws. "Under the proposal bodies such as our Office of the Director of Consumer Affairs would have a legal framework within which to link up with other national enforcement bodies and take coordinated action against rogue traders and cross-border scams" the Tánaiste said.

Ministers also heard a presentation by the Commission on a new draft directive on services in the internal market which, the Tánaiste said, was one of the key elements of the Lisbon agenda. The proposed directive covers most services provided to consumers and businesses, including construction, leisure services, IT services, advertising, employment agencies and security services. It also includes services provided by the medical and legal professions.

"The Competitiveness Council should give the highest priority to this comprehensive proposal", the Tánaiste said; "It is a real test for our role as a champion of the Lisbon goals. It is a complex and ambitious proposal. However it is clear that the target set in Lisbon to make the European economy the most competitive in the world cannot be met unless barriers to cross border services are removed as a matter of urgency".

The proposal would cut excessive documentation requirements by limiting the number of documents required and establishing electronic procedures, she added: "Complex, lengthy and costly authorisation and licensing procedures would disappear. Those procedures that remain would have to be based exclusively on objective criteria, known in advance. It would ensure that businesses could obtain all necessary information and complete all formalities through a single point of contact instead of having to deal with a multitude of different authorities".

The Council took note of a Presidency progress report (6200/04) on the discussions at the Ad Hoc Working Party on the Draft Regulation on Chemicals (REACH). It also noted a commitment by Commissioner Liikanen that the draft Regulation will be subject to further targeted impact assessment, in co-operation with industry.

Both the Competitiveness and the Environment Council will hold policy debates on REACH at their sessions in May and June, respectively.

The main goals of the Community's chemicals policy are to provide a single, harmonized regulatory system for new and existing chemicals in use in the EU. It is aimed at preserving a sensitive balance between environmental benefits of REACH and its effects on the competitiveness of European industry.

The Tánaiste described as "deeply disappointing" the Council's failure to reach agreement today on the Community Patent. She said that the Irish Presidency, like their predecessors, had worked very hard to try to forge an agreement and had put forward a compromise approach to the meeting in good faith. "I regret very much that neither that approach nor the other options on the table have been acceptable to some Member States," the Tánaiste said. She added that the Presidency would now reflect for a short while as to what the basis should be for continuing work. "We have to bring this matter to a conclusion very soon either in the form of an agreement or otherwise, the Tánaiste concluded.

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