EU 2020 STRATEGY UNVEILED
On 3 March the European Commission published the EU 2020 Strategy to boost the EU competitiveness and stimulate growth and jobs. The document underlines the need for stronger economic co-ordination within the EU to overcome the fundamental weaknesses exposed by the financial and economic crisis. Three drivers for growth are identified: smart growth, based on knowledge, innovation and education; sustainable growth, based on resource efficiency; and inclusive growth. The Strategy also proposes a list of five goals for 2020, which will form the basis for national targets: 75% of the population aged 20-64 in employment; 3% of the EU's GDP invested in R&D; successful implementation of the EU environmental goals, including a 20% reduction in CO2 emissions and a 20% increase in the use of renewable energy; 40% of the younger generation with a degree or a diploma; and 20 million less people at risk of poverty. In order to meet the targets the Commission set out seven flagship initiatives, which will be implemented with shared responsibility by the EU, member states, local and regional authorities. These initiatives address the following issues: innovation and R&D; youth education and professional mobility; digital agenda; resource efficiency; green industrial policy; new skills and jobs; poverty reduction. National targets will be discussed at the European Summit on 25-26 March 2010. 
 
EU CLIMATE ACTION POST - COPEHAGEN
At a meeting of the European Parliament’s Environment Committee this week, chairman Jo Leinen said that, should international climate negotiations fail to reach an international agreement, sectoral global agreements, for example in the cement or steel sectors, could offer an alternative solution to tackle climate change. Such plurilateral agreements would allow countries to agree on new rules on a voluntary basis without the need to have global consensus. A new round of international negotiations is due to start in April in Bonn, Germany. Meanwhile, the European Commission is in the process of preparing the rules for auctioning of carbon allowances under the EU's emissions trading scheme from 2013, which are to be adopted by June this year. Publication has further been delayed due to internal disagreements, as the Commission's enterprise department has allegedly accused the environment department of neglecting the views of other commission services. The rules had already been delayed because of disagreements amongst member states, with the UK, Germany, Poland and Spain opposed to a centralised auctioning platform.
 
FORTHCOMING LEGISLATIVE INITIATIVES ON TAXATION
At the annual Brussels Tax Forum, Taxation Commissioner Algirdas Šemeta refrained from giving detailed insights into forthcoming legislative initiatives. The Commissioner nevertheless expressed his support for a Common Consolidated Corporate Tax Base (CCCTB), called for the promotion of information exchange in all tax areas and for the US and Swedish examples of “stabilisation taxes” to be studied. He also confirmed that he has instructed his services to complete the impact assessment and issue a legislative proposal on the CCCTB within 12 months. An advisory report to Commission President Barroso by one of the speakers at the conference, former Commissioner and professor Mario Monti, is due in a few weeks. The report will address the relaunch of the Single Market, the effects of unfair tax competition, taxes for a low-carbon economy and the need for coordination of exit strategies due to the current situation. Commission legislative proposals on taxation are expected in the course of 2010.
 
COMMISSION CONSULTS ON UNIVERSAL SERVICE
On 2 March the European Commission launched a public consultation on the approach to ensure all citizens have access to basic telecoms services. Current EU rules on universal service obligations for telecoms date from 2002 and guarantee that all EU citizens have access to public telephone networks and to services like basic internet access. With the current consultation the European Commission aims to establish whether existing rules and definitions on universal service need to be updated for the digital age, and extended to cover broadband access. The consultation closes on 7 May 2010 and the Commission will report on the results in a Communication, which may be followed by legislative proposals before the end of 2010, if necessary. 

  
COMING UP NEXT WEEK

• 8 - 11 March: European Parliament Plenary Session, Strasbourg. Agenda: low carbon technologies, electric vehicles standardisation.
• 9 March: weekly Commission meeting, Brussels. Agenda: climate change after the Copenhagen conference.

 
Karl Isaksson, Managing Partner Brussels, Kreab Gavin Anderson
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Kreab Gavin Anderson • Tel: +32 2 737 6900 • kisaksson@kreabgavinanderson.com • www.kreabgavinanderson.com