Towards an integrated European market for card, internet and mobile payments: online consultation

Brussels, 11.1.2012.COM(2011). The European Commission is looking at ways to spur competition and spark innovation. As a first step, the EU is seeking the public’s views on achieving these goals. A discussion paper  outlines some of the issues, and possible ways of addressing them: competition – improving market access for existing payment providers and making it easier for new companies to enter the market security and data protection – encouraging people to use alternatives to cash by making them more secure clear information on charges – protecting consumers from hidden charges and keeping prices down by helping them compare like with like systems that work throughout Europe – introducing common technical standards for greater compatibility. Currently national differences mean that bank cards often can't be used outside the country of issue, for example. 

Our online consultation is open until 11 April 2012. The comments we receive will inform decisions on the next steps to be taken, expected to be announced before July. 

Any proposals arising out of the consultation would complement common pan-European standards already developed for credit and direct debit transfers. 

Encouraging e-commerce

They would also support EU measures to boost online trade (e commerce), such as the 16 recent proposals  to encourage e commerce. 

Protecting consumers online 

Enforcing EU rules for online trading is essential to protect shoppers and build consumer trust. The EU has been conducting regular investigations into websites offering consumers products or services. The latest is a sweep of about 500 consumer credit websites. Of these, 70% were found to breach EU consumer protection rules. The companies behind them will be asked to correct their websites – and could face legal action if they do not comply.

Towards an integrated European market for card, internet and mobile payments

Secure, efficient, competitive and innovative electronic payments are crucial if consumers, retailers and companies are to enjoy the full benefits of the Single Market, and increasingly so as the world moves beyond bricks-and-mortar trade towards e-commerce. The way goods and services are purchased in Europe is fundamentally changing. As EU citizens and businesses become increasingly active outside their country of origin, electronic payments that work smoothly across borders significantly facilitate their daily lives. Building on achievements in the field of retail payments, Europe has an opportunity to be at the cutting edge of what ‘making a payment’ could mean in the future, be it with a payment card, on the internet or by using a mobile phone.

A first important milestone on this journey is the Single Euro Payments Area (SEPA), which is based on the premise that there should be no distinction between cross-border and domestic electronic retail payments1 in euro across the EU. The SEPA project covers the key retail payment instruments: credit transfers, direct debits and payment cards. From this basis, SEPA should be a springboard to creating a competitive and innovative European payments market in two ways. The first concerns the ever-growing proportion of on-line or internet payments (e-payments) and mobile payments (m-payments). Above all, the mass take-up of smart phones is changing the payments landscape and is leading to new payment applications, for example electronic purses, replacing wallets and physical cards, or virtual public transport tickets stored in a mobile phone. Here, the pan-European SEPA payment instruments can provide the basis for more integrated and secure payment innovations. Secondly, the existing standards and rules developed under SEPA could be re-applied to payment instruments in non-euro currencies, thereby taking the boundaries of a Single Market for payments beyond euro-denominated transactions.

The benefits of more market integration would mainly stem from four drivers:

1) More competition — in a network industry, such as payments, market access for new entrants or competitors from other Member States is facilitated through integration. Based on common open standards, service providers could offer their existing payment solutions in more than one country. This would expand their business base and hence create an additional incentive for innovation. As a result, the costs and prices of providing payments would converge downwards. Moreover, more competition could mitigate the current domination of the payment cards market by the two existing international card schemes.

2) More choice and transparency for consumers — with a broader range of competitive services, payment users could choose the payment instruments and providers that best serve their needs. Today, the cost implications of the choice they make are often not visible to consumers2. Due to hidden costs, often the most expensive payment method is used and costs are indirectly passed to all consumers through increased prices. By contrast, an integrated and transparent market would steer consumers towards the most efficient payment instruments.

3) More innovation — an integrated market increases scale effects. This means that existing players would have more opportunities to save costs or increase revenue. Furthermore, the incentives for innovation by new market entrants would be higher and the geographical scope of innovation would increase.

4) More payment security and customer trust — in line with the progress achieved in safe and secure payments at the point-of-sale, an integrated market would increase the security of, and consumer’s trust in, remote payments, such as e-payments and m-payments.

An integrated EU market for payment services could also produce, as a by-product, administrative data that could be used for the production of harmonised statistics. This would increase the quality and scope of EU statistics, with no additional costs for companies and limited investment for the statistical community.

This Green Paper assesses the current landscape of card, internet and mobile payments in Europe, identifies the gaps between the current situation and the vision of a fully integrated payments market and the barriers which have created these gaps. The objective of the Green Paper is to launch a broad-scale consultation process with stakeholders to validate or contribute to the Commission’s analysis and to help identify the right way to improve market integration.

Towards an integrated European market for card, internet and mobile payments

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Growing the EU’s online economy

European Commission.11/01/2012. Proposals to encourage more online commerce would make it easier to shop on the Internet across the EU – contributing to economic growth and job creation.

Electronic commerce offers many potential benefits for consumers and businesses: lower prices, increased access to goods, development of innovative services and creation of new jobs.

Online purchases account for about 3% of all retail business in the EU, but many barriers remain to the further development of a seamless Internet marketplace across its 27 member countries.

For example, the rules governing online sales are often ignored or unclear, sites do not provide enough information for consumers, and it can be difficult to compare prices.

Such problems can turn consumers away from shopping online, despite the potential savings (currently estimated at around €11.7bn annually for purchases of goods). More people could benefit if there were a safer, more open Internet marketplace.

The Commission is proposing 16 measures  aiming to double online retail sales by 2015 by providing better protection for consumers, more information and a wider range of choices.

The new proposals would:

make it easier to buy products and services online (including music and films)

ensure more efficient, affordable delivery of products across Europe

require online sellers to provide more information about their products and prices

help develop high-speed Internet services and better communications infrastructure, so more people enjoy access, especially in rural and remote areas

provide consumers with better information and protection against abuses on the Internet.

Businesses would also benefit from the measures, encouraging them to invest in online sales and services. For example, the proposals aim to prevent illegal downloading of copyrighted content (such as films and music) and establish a clear legal framework for doing business online.

The proposals complement the EU’s electronic commerce law, which sets out common rules for cross-border online sales.

Growing the EU’s online economy

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EU reinstates trade preferences for the Western Balkans until 2015

European Commission-Press release. Brussels, 30 December 2011 - The European Union today re-established the exceptional autonomous trade preferences, which it grants to all Western Balkans until the end of 2015. Western Balkan economies will therefore continue as of 1 January 2011 to benefit from an unlimited duty-free access to the EU market for nearly all products. Together with the bilateral Stabilisation and Association Agreements (SAAs) in place with all Western Balkans except Kosovo1, these trade preferences support economic integration with the EU and hence foster political stability and economic progress in the entire region.

The autonomous trade preferences should allow all Western Balkans to further benefit from the preferential trade regime, where this is more beneficial than the treatment foreseen in the SAAs. It should notably allow Kosovo to benefit from the current duty-free, quota-free treatment for almost all its exported products, since it does not have an SAA with the EU. Total exports of Kosovo to the EU amounted to about €147 mio in 2010.

Background

In 2000 the European Union established for the first time exceptional unlimited duty-free access to the EU market for nearly all products originating in the Western Balkans (Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Kosovo) in Regulation (EC) No 2007/2000). Only wine, sugar, certain beef products and certain fisheries products enter the EU under preferential tariff quotas, as negotiated under the SAAs. The regime was renewed in 2005, and due to expire on 31 December 2010.

Therefore, on 22 February 2010, the Commission proposed to extend this autonomous preferential regime until 31 December 2015. The European Parliament voted in favour of the Commission's proposal on 13 October 2011 and the Council adopted it on 24 November 2011. The tariff reductions under the new Regulation amending Council Regulation (EC) No 1215/2009, adopted today, are applied retroactively to allow exporters to claim compensation for the duties paid in 2011.

For further information:

On EU trade relations with Western Balkans

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European Commission report concludes progress on fiscal, economic and structural reforms in Portugal

MEMO/11/941.Brussels, 21 December 2011. European Commission report concludes progress on fiscal, economic and structural reforms in Portugal. The European Commission publishes its staff assessment following the second review of the EU and IMF-supported financial assistance programme for Portugal, carried out in Lisbon from 7 to 16 November 2011. The report concludes that, overall, Portugal has made good progress on a number of fronts, as requested by the Council of Ministers (implementing Decision 2011/344/EU). This paves the way for the third instalment of €5.3 billion in European funding to Portugal in January 2012.

Growth in 2011 is likely to be somewhat better than foreseen in the Programme. By contrast, the recession in 2012 is now projected to be more pronounced, with GDP expected to contract by 3% and risks to the outlook tilted to the downside. The economy is expected to recover, albeit at a gradual pace, in 2013.

Budget execution in 2011 has seen sizable slippages. These were, however, partly counteracted by a one-off surcharge in the personal income tax and an increase in the VAT rate on electricity and natural gas, brought forward from next year to 1 October 2011. The transfer of banks' pension funds to the state social security system will close the remaining gap for achieving the 2011 deficit target of 5.9 percent of GDP. This one-off measure will only be exceptionally used to meet the deficit target for this year and has to be seen in the context of a highly ambitious 2012 budget. This budget contains bold and credible measures of a permanent nature that rely mostly on cutting government expenditures. If implemented rigorously, the fiscal target of a deficit of 4.5% of GDP next year should be attained.

Public financial management has been strengthened through improved reporting and monitoring and reforming the budgetary framework. The government is preparing a strategy for the validation and settlement of arrears for entities inside the general government as well as for state-owned enterprises classified outside the general government. The government is committed to deep restructuring of state-owned businesses.

In the financial sector, banks are working towards meeting the higher capital requirements as required under the Programme. A legal framework to provide temporary public support to banks is under preparation. A balanced and orderly deleveraging of the banking sector remains critical, whilst safeguarding adequate credit for dynamic sectors to spur growth.

Structural reforms are a major pillar of the Programme as its success depends crucially on restoring competiveness and raising potential growth. Labour market reforms to align the protection and rights under fixed and open-ended contracts and to establish an employer-financed fund for paying out workers’ severance entitlements are advancing. The privatisation programme is being implemented under a new framework law. Reforms are also moving ahead in the housing market and the judicial system, but further progress is needed to lower entry barriers to the sheltered sectors of the economy.

The mission for the next Programme review is scheduled for February 2012.

Full staff report available on:

http://ec.europa.eu/economy_finance/publications/occasional_paper/2011/op89_en.htm 

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European Commission gives guidance to Europe's insurance industry to ensure non-discrimination between women and men in insurance premiums

European Commission.Press release. Brussels, 22 December 2011. The European Commission has today adopted guidelines to help the insurance industry implement unisex pricing, after the Court of Justice of the European Union ruled that different premiums for men and women constitute sex discrimination. In its ruling on the Test-Achats case on 1 March 2011, the Court of Justice gave insurers until 21 December 2012 to treat individual male and female customers equally in terms of insurance premiums and benefits (MEMO/11/123). Vice-President Viviane Reding, the EU's Justice Commissioner, met with leading EU insurers in September 2011 to discuss how the industry should adapt to the Court's ruling (MEMO/11/624).

Following consultations with national governments, insurers and consumers, the new Commission guidelines respond to the need for practical guidance on the implications of the ruling. They aim to benefit both consumers and insurance companies.

"When the Court of Justice issued its decision in the Test-Achats case on 1 March this year, I promised that the Commission would help insurers and consumers adapt to the ruling," said EU Justice Commissioner Viviane Reding, the Commission’s Vice-President. "By adopting these guidelines a full year ahead of the deadline to comply with the court’s ruling, we have lived up to our commitment. It is now up to the insurance industry to ensure that there is a smooth transition to fully equal treatment of men and women in insurance. The Commission will remain vigilant in how the industry implements the court’s ruling. I expect that insurers that move to a unisex tariff first will have a competitive advantage on the European market."

EU Commissioner for the Internal Market and Services, Michel Barnier said: "There have been some concerns among insurers as to the impact and consequences of this important judgment, in particular at this time when insurers as all other financial market participants face important challenges. I believe that these guidelines will be helpful for the industry and assist them in adapting their contracts and premiums to be able to ensure timely and full compliance with the judgment. This will be beneficial for both the industry and policyholders."

The guidelines adopted today cover a series of issues which emerged from in-depth consultations with Member States and stakeholders. For example, they clarify that the ruling applies only to new contracts, in particular to contracts concluded as from 21 December 2012. They also give specific examples of what is considered a "new contract" to ensure a comprehensive application of the unisex rule at EU level from the same date.

In addition, the guidelines provide examples of gender-related insurance practices which are compatible with the principle of unisex premiums and benefits, and therefore will not change because of the Test-Achats ruling. These practices are very diverse, ranging from the calculation of technical provisions to reinsurance pricing, medical underwriting or targeted marketing.

Background

The implications of the judgment were discussed on 20 June with Member States and stakeholders at the Forum on Gender and Insurance set up by the Commission in 2009. European Justice Commissioner Viviane Reding also met leaders of European insurance companies on 21 September.

The Test-Achats ruling does not mean that women will always pay the same car insurance premiums as men.

At the moment, a careful young male driver pays more for auto insurance just because he is a man. Under the ruling, insurers can no longer use gender as a determining risk factor to justify differences in individuals' premiums. But the premiums paid by careful drivers – male and female – will continue to decrease based on their individual driving behaviour. The ruling does not affect the use of other legitimate risk-rating factors and price will continue to reflect risk.

Gender is a determining risk-rating factor for at least three main product categories: motor insurance, life insurance/annuities and private health insurance. In all three categories, it is likely that a transition towards unisex pricing will have consequences on premiums and/or benefits at the individual level for men and women. Depending on the product concerned, premiums might increase or decrease for certain categories of consumers.

The insurance industry is competitive and innovative. It should be in a position to make these adjustments and offer attractive unisex products to consumers without unjustified impact on the overall price level. Price reductions resulting from unisex pricing should be passed on to consumers with the same level of fairness as price increases.

The Test-Achats case (C-236/09), which was referred by the Belgian Constitutional Court, concerned gender discrimination in insurance pricing. On 1 March 2011, the Court of Justice of the European Union declared invalid as from 21 December 2012 an exemption in EU equal treatment legislation which allows Member States to maintain differentiation between men and women in individuals' premiums and benefits.

Council Directive 2004/113/EC on equal treatment between men and women in regards to the access to and supply of goods and services (adopted unanimously by the EU Council of Ministers) prohibits direct and indirect gender discrimination outside of the labour market.

Article 5(1) of the Directive says that "Member States shall ensure that in all new contracts concluded after 21 December 2007 at the latest, the use of sex as a factor in the calculation of premiums and benefits for the purpose of insurance and related financial services shall not result in differences in individuals' premiums and benefits."

Before the ruling, Article 5(2) of the Directive gave Member States a right to derogate from the unisex rule with regard to insurance contracts: "Member States may decide before 21 December 2007 to permit proportionate differences in individuals' premium and benefits where the use of sex is a determining factor in the assessment of risk based on relevant and accurate actuarial and statistical data. The Member States concerned shall inform the Commission and ensure that accurate data relevant to the use of sex as a determining factor are compiled, published and regularly updated."

All Member States made use of this derogation for some or all insurance contracts. Belgian law includes a derogation for life insurance in its national legislation. A dispute about the legality of Belgium’s derogation led to the Court of Justice’s Test-Achats ruling.

The Court found the exemption to the unisex rule in Article 5(2) incompatible with the purpose of the Directive as laid down in Article 5(1) and, therefore, with the EU's Charter of Fundamental Rights. The Court ruled:

"Article 5(2) of Council Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services is invalid with effect from 21 December 2012."

For more information

Justice Directorate General Newsroom:

http://ec.europa.eu/justice/news/intro/news_intro_en.htm

Homepage of Vice-President Viviane Reding, EU Justice Commissioner:

http://ec.europa.eu/reding

Contacts :

Matthew Newman (+32 2 296 24 06)

Mina Andreeva (+32 2 299 13 82)

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The Balance of Payments Programme for Romania

MEMO/11/944.Brussels. December 2011. European Commission report concludes balance-of-payments assistance programme remains on track in Romania Today, the European Commission publishes its staff assessment following the latest review of the joint EU-IMF financial assistance programme for Romania, carried out in Bucharest from 25 October to 7 November 2011. The mission concluded that the programme remains on track. The Romanian authorities have made good progress in implementing programme policies under very difficult conditions. Looking forward, prudent macroeconomic policies and accelerated structural reforms are important to ensure strong economic performance and instil market confidence.

After two years of negative growth, real GDP is expected to grow by around 1½-2% in 2011, above previous projections. A further slight acceleration towards 1¾-2¼% is expected for 2012. Inflation has come down sharply this summer - thanks to easing food prices and the base effects linked to last year's VAT hike - to the inflation target range of 3.0% ±1 percentage point defined by the National Bank of Romania (NBR). The current account deficit is projected to remain below 5% of GDP in both 2011 and 2012.

The on-going deterioration in asset quality and increasing loan-loss provisions continue to weigh on the profitability of the banking sector. In spite of tensions in global financial markets and deterioration in the quality of domestic assets, the banking sector has remained resilient with the capitalisation of the banking sector being kept at adequate levels (13.4%).

Public finance developments until the end of September are consistent with meeting the 4.4% of GDP cash deficit target in 2011. For 2012, the Romanian authorities target a 1.9% of GDP cash deficit which should make it possible to comply with the below 3% deficit target (based on the standards of the European System of Accounts, ESA) for 2012, by a comfortable margin.

The Romanian authorities are implementing structural reforms, mainly in the energy and transport sectors, and restructuring state-owned enterprises. This autumn, the Romanian Government appointed a new Minister to be specifically in charge of coordinating EU funds, with a view to make better use of EU funds.

The mission for the next programme review is scheduled for late January - early February 2012.

First Review-Autumn 2011. Directorate-General for Economic and Financial Affairs.

The Balance of Payments Programme for Romania

For information about Projects in Romania see EASTERN EUROPA Projects

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Restoring confidence in financial statements.the European Commission aims at a higher quality, dynamic and open audit market

European Commission.Press release.Brussels, 30 November 2011- The 2008 financial crisis highlighted considerable shortcomings in the European audit system. Audits of some large financial institutions just before, during and since the crisis resulted in 'clean' audit reports despite the serious intrinsic weaknesses in the financial health of the institutions concerned. Recent inspection reports by national supervisors have also criticised the quality of audits.

Under the proposals adopted today by the European Commission, this situation is to change by clarifying the role of the auditors and introducing more stringent rules for the audit sector aimed in particular at strengthening the independence of auditors as well as greater diversity into the current highly-concentrated audit market. Furthermore, the Commission is also proposing to create a Single Market for statutory audit services allowing auditors to exercise their profession freely and easily across Europe, once licensed in one Member State. There are also proposals for a strengthened and more coordinated approach to the supervision of auditors in the EU. Taken together, all the measures should enhance the quality of statutory audits in the EU and restore confidence in audited financial statements, in particular those of banks, insurers and large listed companies.

Internal Market and Services Commissioner Michel Barnier said: "Investor confidence in audit has been shaken by the crisis and I believe changes in this sector are necessary: we need to restore confidence in the financial statements of companies. Today's proposals address the current weaknesses in the EU audit market, by eliminating conflicts of interest, ensuring independence and robust supervision and by facilitating more diversity in what is an overly concentrated market, especially at the top-end."

Background:

Auditors are entrusted by law to give an opinion on the truth and fairness of the financial statements of the companies they audit. The financial crisis highlighted weaknesses in the statutory audit especially with regards to banks and financial institutions. Concerns around conflicts of interest have been expressed as well as the potential for an accumulation of systemic risk as the market is effectively dominated by four companies ("the Big Four"), namely Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers.

Key elements of the proposal:

The proposals regarding the statutory audit of public-interest entities, such as banks, insurance companies and listed companies, envisage measures to enhance auditor independence and to make the statutory audit market more dynamic. The key measures in this respect are:

Mandatory rotation of audit firms: Audit firms will be required to rotate after a maximum engagement period of 6 years (with some exceptions). A cooling off period of 4 years is applicable before the audit firm can be engaged again by the same client. The period before which rotation is obligatory can be extended to 9 years if joint audits are performed, i.e. if the entity being audited appoints more than one audit firm to carry out its audit, thus potentially improving the quality of the audit performed by applying the "four-eyes principle". Joint audits are not made obligatory but are thus encouraged.

Mandatory tendering: Public-interest entities will be obliged to have an open and transparent tender procedure when selecting a new auditor. The audit committee (of the audited entity) should be closely involved in the selection procedure.

Non-audit services: Audit firms will be prohibited from providing non-audit services to their audit clients. In addition, large audit firms will be obliged to separate audit activities from non-audit activities in order to avoid all risks of conflict of interest.

European supervision of the audit sector: In addition, given the global context of audit, it is important that coordination of and cooperation on the oversight of audit networks is ensured both at EU level as well as internationally. Therefore, the Commission proposes that the coordination of the auditor supervision activities is ensured within the framework of the European Markets and Securities Authority (ESMA).

Enabling auditors to exercise their profession across Europe: The Commission proposes the creation of a Single Market for statutory audits by introducing a European passport for the audit profession. To this end, the Commission proposals will allow audit firms to provide services across the EU and to require all statutory auditors and audit firms to comply with international auditing standards when carrying out statutory audits.

Cutting red tape for smaller auditors: The proposal also allows for a proportionate application of the standards in the case of small and medium-sized companies.

MEMO/11/856

The proposals can be found at:
 http://ec.europa.eu/internal_market/auditing/reform/index_en.htm

Developing a Maritime Strategy for the Atlantic Ocean Area

European Commission.Brussels, 21.11.2011. The Atlantic Ocean, which marks the western boundary of the EU, is the secondlargest of the world's oceans. This Communication responds to a request from the Council of the European Union (EU) and the European Parliament. It proposes a coherent and balanced approach that is consistent with the EU 2020 agenda and its flagship initiatives that promotes territorial cohesion and that takes into account the international dimension.

Whilst this proposed approach will largely focus on helping communities living and working on the Atlantic coast deal with new economic realities, it also recognises that the EU shares responsibility for stewardship of the world's oceans. Broadly speaking the strategy will cover the coasts, territorial and jurisdictional waters of the five EU Member States with an Atlantic coastline – France, Ireland, Portugal, Spain and the United Kingdom as well as international waters reaching westward to the Americas, eastward to Africa and the Indian Ocean, southward to the Southern Ocean and northward to the Arctic Ocean. In addition to actions concerning the five EU Member States, both at a national and local level, engagement is also sought with other EU states that use this space and with international partners whose waters touch it. The implications of Iceland joining the EU need to be considered.

All the proposed actions are to be financed within existing programmes and will not create any additional impact on the EU budget

COM(2011) 782 final. COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Developing a Maritime Strategy for the Atlantic Ocean Area.

Developing a Maritime Strategy for the Atlantic Ocean Aread

EU.Call to strengthen Internal Market Information System

European Data Protection Supervisor. Done in Brussels, 22 November 2011. The European Data Protection Supervisor supports establishing an electronic system which gives administrations the necessary flexibility, but insists that it be accompanied by legal certainty.

Opinion of the European Data Protection Supervisor on the Commission Proposal for a Regulation of the European Parliament and of the Council on administrative cooperation through the Internal Market Information System ('IMI').

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 16 thereof,

Having regard to the Charter of Fundamental Rights of the European Union, and in particular Articles 7 and 8 thereof,

Having regard to Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data,

Having regard to Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data2, Having regard to the request for an opinion in accordance with Article 28(2) of Regulation (EC) No 45/2001

EU.Call to strengthen Internal Market Information System

European Commission. Proposals to improve product safety

Brussels, 21.11.2011.COM(2011) 773 final-2011/0357 (COD)-NEW LEGISLATIVE FRAMEWORK (NLF) ALIGNMENT PACKAGE-(Implementation of the Goods Package).Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the harmonisation of the laws of Member States relating to the making available on the market of electrical equipment designed for use within certain voltage limits (Recast) (Text with EEA relevance). The measures cover electrical and electronic products, lifts, measuring instruments, explosives, and pyrotechnic articles and equipment used in potentially explosive atmospheres.

This proposal is presented in the framework of the implementation of the “goods package” adopted in 2008. It is part of a package of proposals aligning ten product directives to Decision No 768/2008/EC establishing a common framework for the marketing of products.

Union (EU) harmonisation legislation ensuring the free movement of products has contributed considerably to the completion and operation of the Single Market. It is based on a high level of protection and provides economic operators with the means to demonstrate conformity, thus ensuring free movement through trust in the products.

Directive 2006/95/EC is an example of that Union harmonisation legislation, ensuring the free movement of electrical equipment. It sets out the safety objectives that electrical equipment must comply with in order to be made available on the EU market. Manufacturers must demonstrate that electrical equipment has been designed and manufactured in compliance with the safety objectives and affix the CE marking.

Experience with the implementation of Union harmonisation legislation has shown – on a cross-sector scale - certain weaknesses and inconsistencies in the implementation and enforcement of this legislation, leading to

– the presence of non-compliant or dangerous products on the market and consequently a certain lack of trust in CE marking

– competitive disadvantages for economic operators complying with the legislation as opposed to those circumventing the rules

– unequal treatment in the case of non-compliant products and distortion of competition amongst economic operators due to different enforcement practices

– differing practices in the designation of conformity assessment bodies by national authorities

Furthermore the regulatory environment has become more and more complex, as frequently several pieces of legislation apply simultaneously to one and the same product.

Inconsistencies in these pieces of legislation make it increasingly difficult for economic operators and authorities to correctly interpret and apply that legislation.

To remedy these horizontal shortcomings in Union harmonisation legislation observed across several industrial sectors, the “New Legislative Framework” was adopted in 2008 as part of the goods package. Its objective is to strengthen and complete the existing rules and to improve practical aspects of their application and enforcement. The New Legislative Framework (NLF) consists of two complementary instruments, Regulation (EC) No 765/2008 on accreditation and market surveillance and Decision No 768/2008/EC establishing a common framework for the marketing of products.

Proposals to improve product safety

European Comission. Rules for safer and more transparent use of food additives adopted

The new rules establish two lists to identify authorised additives, one for ingredients and one for foodstuffs, which will be available online. They also determine under which conditions substances can be added to food.

Welcome to the database on Food Contact Materials.

This database is a tool to inform about the substances to be used in materials and articles intended to come into contact with food (Food Contact Materials).

€17 million additional EU support for the promotion of fresh fruit and vegetables following the E-coli crisis

Brussels, 18 November 2011. The European Commission has approved 14 programmes in 11 Member States to promote fresh fruit and vegetables both on the internal market and in third countries. The total budget for the programmes, running for a period of three years, is € 34.1 million of which the EU contributes € 17.0 million (50%). This was one of a set of measures proposed by the Commission this summer to address the difficult market situation faced by this sector as a consequence of the E-coli crisis (see IP/11/829).

In light of the E-coli crisis that hit the fruit and vegetables sector, Dacian Cioloş, Commissioner for Agriculture and Rural Development pledged support to the sector by accelerating the approval procedures for promotion programmes.

"This additional envelope comes in addition to the emergency measures put in

place during the summer to help the fruit and vegetables sector come to terms with the e-coli crisis. In this period, the Commission has shown its capacity to react quickly and proportionately to support those producers most hit by the crisis. In the medium term, we can also provide measures to help producers climb back up the slope to where they were before the crisis" he stated today.

A Regulation was adopted in July which cut by more than half the length of the usual adoption procedure associated with co-financed programmes of this sort.

Under this schedule, the Commission services received 17 programmes (worth a total budget of €40.1 million). 14 programmes were selected for co-financing out of which 11 target the internal market and 3 target third countries. Among Member States, Germany is the main target country, while third country programmes aim at the Chinese, Russian and Ukrainian markets.

The full list of programmes and budgets adopted today is available in the annex.

Background

In 2000 the Council decided that the EU could assist in financing measures that provide information on or promote agricultural products and food on the EU single market and in third countries. The total budget available for these promotion programmes is €55 million a year. The EU finances up to 50% of the cost  of these measures (up to 60% in programmes promoting the consumption of fruit and vegetables by children or concerning information on responsible drinking  and the dangers of excessive alcohol consumption). The remaining 50% are met by the professional/inter-branch organisations which proposed the measures and/or by the Member States concerned.

For promotion on the single market and in third countries, interested professional organisations can submit their proposals to the Member States twice a  year. The Member States then send the list of programmes they have selected to the Commission along with a copy of each programme. Subsequently the Commission evaluates the programmes and decides whether they are eligible.

In addition, a decision concerning promotion programmes in third countries is expected to follow by the end of November 2011.

€17 million additional EU support for the promotion of fresh fruit and vegetables following the E-coli crisis