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The latest from CBI Brussels
Lisbon, WTA and Georgia top agenda
Whilst the European Institutions have been in recess since mid-July, attention in Brussels this summer has turned away from individual policy issues to the broader institutional and external challenges facing the EU, notably the Lisbon Treaty. There has been significant debate about how to find a way forward after the Irish ‘No’, but the ‘period of reflection’ is yet to yield a breakthrough. French President Nicolas Sarkozy, who currently chairs the rotating EU Presidency, travelled to Ireland, to discuss the issue with both the government and ‘No’ campaigners. EU Heads of State will return to the matter at their next Summit in October.
The collapse of the WTO talks has also been high on the agenda. Echoing the disappointment of Trade Commissioner Peter Mandelson, the breakdown of the Doha round of negotiations has been described as ‘a lost opportunity for the global economy’ by the CBI. Similarly, the military conflict between Georgia and Russia over South Ossetia prompted EU intervention. Together with the OSCE, a truce was brokered, prior to Russia’s ceasefire. A busy policy agenda is however in store when the Institutions reconvene at the end of August. Dossiers in the fields of employment and social policy, energy and climate change and telecoms will be a focus of CBI activities.
Contact: brusselsstagiaire@cbi.org.uk
Agency work directive latest
The European Parliament recently began its deliberations on the Agency Work Directive, following agreement in the Employment and Social Affairs Council last month, with discussions being led by its Employment Committee. The Directive is now moving forward in part due to the agreement reached in the UK between the CBI and TUC that established equal treatment for agency workers after a 12 week qualifying period, removed occupational benefits from the definition of pay and allowed for a derogation for workforce agreements. Whilst this deal will be damaging for business and for workers, nevertheless it represents the least worst option on the table and it is important that this is maintained moving forward. The current draft, while still damaging to the UK labour market, will allow for the CBI-TUC deal to be implemented in the UK Regulations, meaning that approximately 60% of assignments will be completed before the equal treatment regime is applied, while providing ‘adequate protections’ for workers. Amendments that threaten the agreement could have a substantial negative impact on employers and workers and the CBI will be lobbying strongly so that this is avoided.
Contact: guy.bailey@cbi.org.uk or sean.mcguire@cbi.org.uk
SME Council discusses Small Business Act
The European Commission’s recent proposal for a Small Business Act for Europe formed a basis for discussion at the July meeting of the SME Council last week. A key priority of the French Presidency, the act comprises ten common principles, combined with recommended policy actions for the Commission and member states, and four legislative proposals in order to promote entrepreneurship, make legislation SME-friendly and help SMEs grow. Since publication of the act, the Commission has already adopted proposals for a directive on reduced VAT rates, a General Block Exemption Regulation on state aids and a regulation on a European Private Company Statute.
These will be followed by a revision of the Late Payment Directive in 2009. The legislative initiatives – in particular the last two – are considered to be of particular significance by CBI members. The CBI has already briefed representatives from the Department for Business, Enterprise and Regulatory Reform (BERR), the French Embassy in London and the UK Permanent Representation in Brussels on the outcome of the SME Council meeting, with discussions focusing on prioritisation, responsibility, monitoring and the timetable for delivery. The act is due to be adopted at the European Council in December, and the CBI will ensure members are fully involved in formulating our response and subsequent lobbying on our key messages.
Contact: lucy.findlay@cbi.org.uk or paul.davies@cbi.org.uk
CBI briefing on Renewables Directive
As part of our ongoing work on the EU’s Climate Change and Energy Package, the CBI recently briefed UK members of the European Parliament’s Industry, Trade and Energy Committee ahead of their debate on the proposed Renewable Energy Directive. The CBI emphasised the importance of cost-effectiveness for the draft Directive, but reiterated our opposition to proposals for an EU role in determining the national energy mix due to the additional cost involved. The CBI urged MEPs to provide the right support for large-scale renewable energy projects, and stressed a range of key points aimed at providing a level playing field for network access for all energy sources. The CBI will continue to monitor and influence the progress of this and the related Directives as they continue through the European Parliamentary process.
Contact: murray.birt@cbi.org.uk or emma.watkins@cbi.org.uk
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