18/10/2010 • Issue 5

Belgian EU Presidency Business Newsletter

Brussels calling
Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 EU – China relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
CONTENTS

Competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 EU – South Korea relations . . . . . . . . . . . . . . . . . . . . . . . . . 13

Events & meetings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3
In the spotlight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
EU – Asia relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
In the spotlight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Climate change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Justice and Home Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Transport, Telecommunications and Energy . . . . . . . . . . 16
Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Team presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Daily updated info on http://eupresidency.vbo-feb.be

Editorial
High expectations for the Commission’s areas, such as consumer protection legislation. Furthermo-
upcoming Single Market Act! re, access to credit for innovation remains difficult and
European research and development programmes are bur-
The euro crisis and critical public debt levels in most EU densome and complicated. This undermines SMEs’ capaci-
member states have clearly shown the need for enhanced ty to reap the benefits of the single market, not to speak
economic cooperation within the EU, as recently stated by about the long awaited EU patent, which would finally
former Internal Market Commissioner strengthen their innovation capacity.
Mario Monti during his visit to FEB. In
order to ensure Europe’s economic In addition, our companies need a well functioning capital
future in a globalised world, a fully market to raise funds for their investments. Unfortunately,
integrated internal market is needed important barriers to free movement still exist. One of
more than ever. However, the huge these is the widespread double taxation of dividends in a
potential of the EU single market to cross-border context. Last but not least, as services are the
drive growth and create jobs still engine of growth and employment in Europe, the imple-
remains underexploited. mentation of the services directive should be speeded up.
Diane Struyven,
Director of the European In this respect, absolute priority should be given to the
Department of the FEB establishment of interactive single points of contact.
Almost 20 years after the launch of the
internal market, enterprises – and SMEs in particular – are The Monti Report is a first step in the right direction to
still facing important obstacles to sell their products and revitalize the single market. What the business community
services across the EU. This is due, inter alia, to a lack of needs now, are concrete actions. Hence, its expectations
harmonization or gold-plating by member states in several regarding the upcoming Single Market Act are very high. 

Competitiveness
Competitiveness Council (October 11-12, 2010)
On October 11-12, a Competitiveness Council took place in
Luxembourg. The agenda was fully loaded with internal mar-
ket, industry and research topics. On October 11, the Coun-
cil discussed dossiers relating to the internal market under
the chairmanship of Vincent Van Quickenborne, Belgian
Minister of Economy and Administrative Simplification. On
October 12, discussions centred around industry items, with
sessions chaired by Jean-Claude Marcourt, Walloon Minister
of Economy, and around research, with talks presided by
Benoit Cerexhe, Brussels Minister of Scientific Research.

Brussels calling - 1 -
 EVENTS&MEETINGS
A first internal market dossier on the agenda on October
11 was the Single Market Act (officially a Commission 18/10/2010 Eurogroup meeting Brussels
communication called ‘Single market deliverping smart, 18/10/2010 Fifth newsletter ‘Brussels calling’
sustainable and inclusive growth’) which is supposed to 18-19/10/2010 Conference (organized with the Brussels
be made public by Internal Market Commissioner Michel support of the Belgian Presidency)
– “Implementation of European
Barnier on October 27. After a Commission presentation legislation on biodiversity at a
outlining the most important elements in the document, national level”
the Council held a public debate on the functioning of 18-19/10/2010 Conference (organized with the Brussels
the internal market. The Single Market Act will contain support of the Belgian Presidency)
– “Anticipating and managing re-
dozens of initiatives to complete the EU internal market structuring in a socially responsible
by addressing gaps and extending it to new areas, and is way. New partnerships to preserve
employment.”
partially based on the report by Mario Monti on the fu-
ture of the internal market which was published in May 18-21/10/2010 Plenary session of the European Strasbourg
Parliament
2010. At the Competitiveness Council, the Belgian Pre-
sidency invited the member state delegations to express 18-29/10/2010 Tenth meeting of the Conference Nagoya, Japan
of the Parties to the Convention
their views on a number of specific points: on Biological Diversity (COP 10)
• the follow-up of the Single Market Act, i.e. the
19/10/2010 Economic and Financial Affairs Luxembourg
process and instruments to monitor implementation, Council
with specific attention to the removal of identified
20/10/2010 International roundtable (organi- Brussels
internal market failures; zed with the support of the
Belgian Presidency) – “The role of
• citizens’ confidence in the internal market, by focu-
science in food policy”
sing on the proper enforcement of internal market
rules, the raising of awareness of the internal market 20/10/2010 Conference (organized with the Brussels
support of the Belgian Presidency)
benefits and the removal of difficulties encountered by – “Employment and poverty:
citizens when dealing with internal market rules; the role of social partners in the
fight against poverty and social
• the external dimension of the internal market, i.e. exclusion”
methods to assess and monitor the competitiveness of
21/10/2010 Conference (organized with the Brussels
the EU compared to third countries; support of the Belgian Presidency)
• the coherence of EU policies related to the internal – “Belgian Competition Day”
market; 21/10/2010 Employment, Social Policy, Health Luxembourg
• a roadmap for the Single Market Act, to be implemen- and Consumer Affairs Council
ted in close cooperation with the European Commis-
21/10/2010 Conference (organized with the Brussels
sion and the European Parliament. support of the Belgian Presidency)
– “Contributions from scientific re-
search to the risk assessment of
Second, the Commission briefed GMO”
the Council on the situation of
21-22/10/2010 Informal Foreign Affairs Council – Brussels
retail services in the internal Development cooperation
market. On 5 July 2010, it pu-
25/10/2010 General Affairs Council Luxembourg
blished a Retail Market Monitoring
Report which analyzes the func- 25/10/2010 Foreign Affairs Council Luxembourg
tioning of the entire retail chain
25-26/10/2010 Agriculture and Fisheries Council Luxembourg
from suppliers to consumers from
different perspectives and identi- 25-26/10/2010 Conference (organized with the Brussels
support of the Belgian Presidency)
fies issues preventing the retail – “Closing the salary gap, discus-
sector from realizing its full poten- sion of professional gender inequa-
lities in the employment market”
tial. Earlier, the Commission also launched a consultation
to determine future policy priorities, and on October 27 it 27/10/2010 Conference (organized with the Brussels
will organize a conference where stakeholders can express support of the Belgian Presidency)
– “Green triangle of knowledge
their views on the matter. (eco-technologies) for sustainable
co-development”
Third, views were exchanged on the highly contentious
27/10/2010 Conference (organized with the Diepenbeek
dossier concerning translation arrangements for a future support of the Belgian Presidency)
EU patent system (about which the fourth edition of this – “International Seminar
Technological Top Region”
newsletter reported extensively in the ‘Internal Market’
section). A political agreement was still not reached in the

Brussels calling - 2 -
Council. On July 1, 2010, the European Commission tabled EVENTS&MEETINGS
a proposal advocating three official languages (English,
27-29/10/2010 Conference (organized with the Liège
German and French) for the EU patent application process. support of the Belgian Presidency)
If the patent is granted, only one language version – either – “Reshaping Europe : addressing
societal challenges through entre-
English, German or French – would be legally binding preneurship and innovation”
throughout the EU. The Commission’s proposal was inten-
28/10/2010 Conference (organized with the Brussels
ded to make patent protection in the EU more affordable, support of the Belgian Presidency)
simplified and legally certain than in the current fragmen- – “Electronic commerce 10 years
after the directive of 8 June 2000”
ted system. This would be a great stimulus to innovation
in Europe and could yield savings to business of up to 250 28/10/2010 Tripartite Social Summit Brussels
million EUR per year. In the current regime however, a 28/10/2010 FEB lunch debate with Connie He- FEB premises,
‘European patent’ granted by the European Patent Office degaard, European Commissioner Ravensteinstraat
for Climate Action 4, Brussels
(EPO) in München must still be validated in each of the
designated member states. Often the latter require a trans- 28-29/10/2010 European Council Brussels
lation of the European patent in one of their official lan-
28-29/10/2010 Conference (organized with the Antwerp
guages, making patent protection in the EU a very cost- support of the Belgian Presidency)
– “Active labour market policies
ly and administratively cumbersome business. It was cal-
for the EU 2020 strategy: ways to
culated that in the current regime, the validation of a move forward”
patent in all 27 EU member states costs up to 25 000 EUR.
3/11/2010 Conference (organized with the Brussels
As a result, many companies choose to register their support of the Belgian Presidency)
patent only in a limited number of member states which – “The EU patent ten years on:
time is running out”
fragments the internal market. Moreover, due to this
incomplete geographical patent protection in the EU, 8-10/11/2010 Conference (organized with the Brussels
support of the Belgian Presidency)
countries where a particular patent is not registered often – “Careers and mobility of resear-
become hubs for counterfeit goods which can then circu- chers”

late freely within the internal market. 8-9/11/2010 Justice and Home Affairs Council Brussels

9-10/11/2010 Conference (organized with the Mons

Despite its obvious advantages, some member states are
still opposed to the Commission’s proposal, in particular
Italy and Spain. This is problematic as the draft regulation
establishing translation arrangements must be adopted by
the Council with unanimity. In essence, Italy and Spain
claim that the three-language proposal does not create a
level playing field between companies in different EU
member states. Instead they propose an English monolin-
gual system or the recognition of one of their own langua-
ges in the future EU patent system.
It should be noted however that
member states did agree on the
importance of an enhanced
patent system in Europe to
boost the competitiveness of
European innovative
industries. A very large majority
of member states, led by France
and Germany, supports the
Commission’s three-language proposal. There was also
broad agreement that any compromise may not imply sig-
nificant costs due to translation requirements and may not
result in legal uncertainty. In a letter to Vincent Van
Quickenborne, BUSINESSEUROPE stated that “it is now
time for EU member states to act and reach a final decision
on this long lasting issue, in order to reinforce Europe’s
position in the global knowledge economy”.
support of the Belgian Presidency)
– “Financing the mobility of
higher education students and
researchers”
10/12/2010 EU-India Business Summit Egmont Palace,
Brussels
In order to address the Italian and Spanish objections to the
Commission’s proposal, the Belgian Presidency recently
made a number of concessions. These included the full
reimbursement of translation costs for
companies not filing their application in
one of the three official languages consi-
dered, and a transition period during
which only English would be recognized
as official language until machine transla-
tions to other languages would be of suf-
ficiently high quality. However, this com-
promise was considered insufficient by
the Italian and Spanish delegation.
Nevertheless, Vincent Van Quickenborne and Michel
Barnier pointed out that a compromise is still possible
“within two red lines, namely lower costs and improved
legal certainty”.
Despite current disagreements, the Belgian Presidency felt
sufficiently encouraged to continue negotiations based on
the existing Commission’s proposal with a view to achieving

Brussels calling - 3 -

an agreement by the end of its mandate in December. The Presidency
therefore announced plans to organize another ministerial meeting in
November to pave the way for a compromise. It reaffirmed its commit-
ment to a final agreement combining cost effectiveness and legal cer-
tainty with a fundamental respect for the EU’s linguistic wealth. If nego-
tiations fail again, a smaller group of at least nine member states could
decide to use the enhanced cooperation mechanism foreseen in the
EU treaties.
Fourth, the Council took note of the provisional agreement which was
reached with the European Parliament on the draft directive for com-
bating late payments in commercial transactions (‘late payments
directive’). More information on this breakthrough can be found in this
newsletter in the respective ‘In the spotlight’ article.
Fifth, the Council approved without discussion a number of items, inter
alia a directive establishing simplified rules in prospectuses for securi-
ties, a directive strengthening capital requirements and imposing condi-
tions in remuneration policies in the banking sector, a regulation establi-
shing measures to safeguard the security of gas supply, and a directive
aimed at reducing administrative formalities for ships entering or leaving
EU ports.
On October 12, the Council focused, in the presence of Antonio Tajani
(European Commissioner for Industry and Entrepreneurship) and Máire
Geoghegan-Quinn (European Commissioner for Research, Innovation
and Science), on the Commission’s communication on the Europe
2020 flagship initiative ‘Innovation Union’. EU Industry Ministers held
a discussion on the current situation and the future evolution of finan-
cing conditions for innovative enterprises. EU Research Ministers
expressed their views on how EU research programmes could better
support innovation and on ways to turn member states into more active
drivers of innovation.
The ‘Innovation Union’ initiative focuses Europe’s innovative efforts on
challenges such as climate change, energy, food security, health and an
ageing population. It intends to trigger private-sector investment
through public-sector stimuli, and aims to remove obstacles which cur-
rently prevent the commercialization of innovative ideas. These include
the lack of finance, fragmented research systems and markets, slow
standard-setting and the insufficient use of the public procurement le-
ver. Key elements of the Commission’s communication on an Innovation
Union include inter alia:
• European Innovation Partnerships which intend to mobilize stake-
holders in research projects to tackle important societal challenges
such as healthy ageing, energy, smart cities and mobility, water effi-
ciency and non-energy raw materials;
• an ‘Innovation Union’ scoreboard with 25 indicators;
• measures to improve access to finance, such as a cross-border ven-
ture capital regime and stronger cooperation with the European
Investment Bank;
• the completion of the European Research Area (ERA), implying
the cutting of red tape, the removal of obstacles to researchers’
mobility and more coherence between European and national
research policies;
In the spotlight
Late payments directive
On October 5, the Internal Market and Consumer
Protection committee of the European Parliament en-
dorsed the deal struck with the Council on September
13 regarding the draft directive for combating late
payments in commercial transactions. The final vote
by the full European Parliament is likely to take place
during the plenary session in Strasbourg in the week
of October 18. The Competitiveness Council of Oc-
tober 11-12 took note of the provisional agreement
reached with the European Parliament on October 5.
The proposal for a new late payments directive up-
dates the existing late payments directive which en-
tered into force in 2000. The new legislation aims to
address more effectively companies’ financial problems
due to the late payment of bills. This is especially
problematic for small and medium enterprises
(SMEs) which often face severe liquidity constraints.
The most important change to the late payments le-
gislation is the imposition of deadlines for the pay-
ment of goods or services. For business-to-business
transactions, the general rule will be a 30-day dead-
line. However, contracting parties are allowed to fix a
deadline of 60 days if this is explicitly stated in the
contract and if it is not grossly unfair to the creditor.
An interpretation of the term ‘grossly unfair’ is fore-
seen, but an objective application of the concept re-
mains difficult. For commercial transactions between
public institutions and business, the general rule is
also a 30-day deadline, which can – under certain con-
ditions – be extended to 60 days, but not more. An
exception to the general rule is foreseen for public
entities providing healthcare, to which member states
may grant a payment term of up to 60 days. The new
late payments directive also regulates the interest
rate which may be charged on overdue payments
(i.e. the reference interest rate plus at least 8%) and
the compensation for costs of recovery (minimum
40 EUR). Finally, the draft directive foresees a verifi-
cation period of 30 days for ascertaining that the pur-
chased goods or services comply with the contract
terms, with extensions possible under certain condi-
tions. However, such verification periods may not be
used to delay payment unnecessarily.
The new legislation aims to ensure transparency, avoid
loopholes and create a level playing field. Finding a
compromise has not been easy however due to the
question to what extent the term of payment aspect of
contractual freedom may be limited.
Brussels calling - 4 -
 • dedicated budgets for public procurement of innova-
tive products and services;
• a legislative proposal to speed up and modernize stan-
dard-setting;
• a modernized EU intellectual property regime, which es-
sentially implies the establishment of a cost-effective EU
patent.
The outcome of EU ministers’ discussion will serve as input
to the European Council in December which will be devoted
to research, development and innovation. The Belgian Presi-
dency already proposed draft Council conclusions on the
Innovation Union text.
A study ordered by the European
Commission pointed out that an
increase of the research and develop-
ment (R&D) share of EU gross domes-
tic product (GDP) to 3% could result
in up to 3,7 million extra jobs and a
GDP increase of up to 5,4% by 2025.
In the field of industry, the Council approved conclusions on
a new political framework for tourism in Europe. In its
conclusions, the Council states that actions in support of
tourism may inter alia be organized to stimulate its competi-
tiveness and promote its sustainability. However, the EU is
not allowed to harmonize national laws in the field of
tourism. Tourism is currently the third sector in the EU in
terms of employment and turnover (employing almost 10
million people in 1,8 million enterprises and generating over
5% of the EU’s gross domestic product (GDP)).
In the field of research, EU ministers first of all adopted con-
clusions on the simplification of EU research programmes.
EU – Asia relations
Europe Asia Meeting (October 4-5, 2010) &
Asia Europe Business Forum (October 4, 2010)
Europe Asia Meeting (political summit)
On October 4-5, the 8th Asia Europe Meeting (ASEM 8 –
see boxed text) took place at the Royal Palace in Brussels.
The EU was represented by European Council President
Herman Van Rompuy (who chaired the meetings) and
European Commission President José Manuel Barroso.
Other excellencies included Naoto Kan (Prime Minister of
Japan), Wen Jiabao (Prime Minister of China), Lee Myung-
bak (President of South Korea), Nguyen Tan Dung (Prime
Minister of Vietnam), Abhisit Vejjajiva (Prime Minister of
Thailand), Julia Gillard (Prime Minister of Australia), Angela
Merkel (German Chancellor), Nicolas Sarkozy (President of
The conclusions underline that a better balance must be
found between sound management of funds, financial con-
trol mechanisms and trust in researchers and that a clearer
and rationalized European research and innovation landsca-
pe is required. The European Commission is invited to acce-
lerate the administrative procedures for the publication, vali-
dation, selection and granting of research projects and as
such shorten the ‘time-to-grant’. In addition, the Commis-
sion should already take some actions with regard to the
7th Framework Programme (FP7), inter alia the provision
of clear guidelines and further reduction of paperwork, the
improvement of the research participant portal, the improve-
ment of access to information on parti-
cipation and research call results, the in-
troduction of more flexibility in the com-
position and size of consortia and the
development of synergies with other EU
research programmes and instruments.
Second, the Council gave green light
for the launch of three so-called ‘Joint
Programming Initiatives’ (JPIs) for
research, addressing three major societal challenges:
• agriculture, food security and climate change;
• cultural heritage and global change;
• a healthy diet for a healthy life.
JPIs are a new EU research initiative which aims to ad-
dress common challenges which member states cannot
deal with alone, by bringing together researchers, existing
research evidence and national funding bodies and by sha-
ring tools, techniques and other resources more efficiently
among member states. The first JPI was launched in Decem-
ber 2009 and aims at combating neurodegenerative
diseases (e.g. Alzheimer’s). 
France), José Luis Zapatero (Prime Minister of Spain) and
Yves Leterme (Prime Minister of Belgium).
Several topics were on the agenda of ASEM 8. A first topic
was quality of life, i.e. how to ensure greater prosperity
and more dignity for all citizens – the overarching theme of
this ASEM. A second important topic was sustainable de-
velopment. Third, views were exchanged on global securi-
ty dossiers. A fourth point for discussion were regional
matters.
At the end of the conference, two sets of ASEM conclusions
were adopted. A first set – the ‘Brussels Declaration on
more effective global economic governance’ – specifically
deals with the economic and financial situation, which was
considered a priority number one by Asian and European
Brussels calling - 5 -
 Asia Europe Meeting (ASEM)
leaders. A second set – the ‘Chair’s Statement’ on grea-
ter wellbeing and more dignity for all citizens – contains ASEM is a forum for dialogue between Europe and Asia where
shared points of view regarding various other dossiers. a large variety of topics is discussed. It was established in 1996 in
Bangkok, where the first ASEM summit was held. Currently there
In the first declaration on effective global economic gover- are 48 members. These include all 27 EU member states, 16
nance, European and Asian political leaders agree to give Asian countries (including China, India, Japan and Indonesia), 2
new momentum to the cooperation between the two con- international organizations (the European Commission and the
tinents with a view to inter alia the promotion of strong, Secretariat of the Association of Southeast Asian Nations
sustainable, balanced and inclusive growth, and the res- (ASEAN)), and 3 new member countries since this year’s ASEM
summit, i.e. Russia,
toration of market confidence. They pledge to streng-
Australia and New
then the sources of growth, conduct structural reforms
Zealand. As such,
and move away from excessive public deficits, non-sustai- ASEM covers virtu-
nable debts and development gaps. The measures taken ally the whole of
by European governments to ensure a proper functioning the European and
of the sovereign debt market are welcomed. The G20 is Asian continents.
encouraged to make rapid progress with strengthening Together, the 48
the resilience and transparency of the financial system. ASEM partners re-
This includes stronger liquidity and capital adequacy rules present roughly half of the world’s gross domestic product
(GDP), almost 60% of the world’s population and 60% of global
for financial institutions, the elimination of excessive leve-
trade. ASEM does not replace Europe’s bilateral relations and
rage practices, more attention to moral hazard associated
negotiations with Asian countries, but complements them.
with systemically important financial institutions, and
increased regulatory oversight over hedge funds, credit Economic ties between the EU and the Asian ASEM countries
rating agencies and over-the-counter derivatives. Leaders (including Russia, Australia and New Zealand) are increasingly
also agree that the financial sector should bear a fair share important. Between 2000 and 2008, goods trade nearly doubled.
of the cost incurred by governments during the recent In the first half of 2010, the EU ran a trade deficit with its Asian
financial crisis. With regard to the International Monetary partners of 129 billion EUR. China and Russia account for half of
Fund (IMF), credibility and legitimacy need to be enhan- Asian ASEM exports to the EU and almost two thirds of imports.
On the European side, Germany and France are responsible for
ced through a quota reform to give emerging markets a
more than half of EU exports to Asian ASEM partners.
stronger voice in the governance of the institution. Con-
cerning developing countries, actions should be taken to
ASEM summits with heads of state or government take place
encourage more sustainable models of development, every two years. ASEM also meets in other ‘ministerial’ configu-
which should combine market access and cross-border rations to discuss specific topics, such as finance, transport, edu-
investments, international assistance, debt initiatives and cation or culture. The next summit with country leaders, ASEM 9,
technology transfers. Finally, European and Asian leaders is scheduled to take place in Vientiane (Laos) in October 2012.
call for a successful conclusion of the Doha Develop-
ment Agenda in the framework of the World Trade Orga-
nization (WTO). Protectionism is rejected and adherence
Ministers’ meetings is also encouraged. Concerning environ-
to open markets is confirmed.
mental measures, leaders state that these may not lead to
arbitrary or disguised restrictions on international trade.
The second – more general – ASEM 8 declaration (‘Chair’s
With regard to social cohesion, it is agreed to promote
Statement’) first of all addresses aspects of the three sus-
decent work, adhere to fundamental principles of the
tainable develop-
International Labour Organization (ILO) and to encourage
ment pillars, i.e.
an effective dialogue between social partners to promote
economic develop-
mutual understanding on issues of productivity, working
ment, social cohesion
conditions, remuneration and economic change. Partner-
and environmental
ships with the private sector may facilitate the prepara-
protection. With
tion of the workforce for future opportunities in strategic
regard to economic
sectors such as ‘green industries’, healthcare and elderly
development, Asian
care. Leaders also call for the sharing of experiences and
and European lea-
technical assistance in implementing social welfare policies.
ders recognize the
Furthermore, the challenges related to overwhelmingly
importance of inter alia a balanced outcome of WTO nego-
young populations (e.g. access to basic education, child
tiations, innovation, the dissemination of clean technologies,
labour) as well as rapidly ageing populations (e.g. pension
intellectual property rights, the integration of financial mar-
systems) are touched upon. Regarding environmental pro-
kets, and information and communication technologies
tection, leaders underline the legitimacy of the United Na-
(ICT). The relaunch of the ASEM Economic and Trade

Brussels calling - 6 -

tions Framework Convention on Climate Change (UNFCCC)
and express their shared willingness to urgently achieve a fair,
effective and comprehensive legally binding outcome. They
also recognize the principle of common but differentiated
responsibilities according to countries’ capabilities, and
that economic development and poverty eradication remain
overriding priorities for developing countries. The ‘fast-start
financing’ commitments of developed countries to support
developing countries in their preparation for climate change
are welcomed. Furthermore, the declaration calls for the
development, transfer, deployment and dissemination of
affordable, safe and environmentally sound energy tech-
nologies, as well as the diversification of sources, routes and
types of energy supplies. The importance of sustainable for-
est and water resources management is stressed as well,
and both Asia and Europe urge the 10th meeting of the
Conference of the Parties to the Convention on Biological
Diversity (COP 10) in Nagoya (on October 18-29, 2010) to
agree on an international regime for the restoration and
preservation of biodiversity. Finally, the declaration
expresses the rising interest of ASEM partners to develop
an international carbon market to raise the necessary funds
for the transition towards a green low-carbon economy.
Other points addressed in the more general ASEM 8 de-
claration include global issues, like sea piracy, terrorism
and transnational organized crime, disaster prevention and
relief, human security and human rights, nuclear non-proli-
feration and the reform of the United Nations (UN) system.
Regarding cooperation on sustainable development, lea-
ders confirm internationally agreed development goals,
including the Millennium Development Goals (MDGs), as
their guiding princi-
ples. The declaration
also includes state-
ments on regional
issues, namely Iran’s
nuclear program, the
recent Afghan elec-
tions, the renewed
Middle East peace
process, the political situation in Myanmar and the division
of the Korean peninsula. A last part of the declaration
deals with soft aspects of Europe-Asia relations, namely
people-to-people contacts and civil society interactions.
The political leaders take note of the conclusions of the
Asia Europe Business Forum (see below), which took
place on October 4.
In the margin of ASEM 8, several other important events
took place. First of all, on October 5, the launch of free
trade area (FTA) negotiations between the EU and
Malaysia was announced. The agreement is expected to
cover inter alia tariffs and non-tariff barriers, public pro-
curement, competition policy and sustainable develop-
In the spotlight
Ministerial conference on flexicurity
On October 4-5, the Belgian Presidency organized a ministeri-
al conference in collaboration with the European Commission,
under the title ‘Flexicurity to the benefit of workers: making
transitions pay’. The conference took place in Ghent and was
presided by Joëlle Milquet, Belgian Minister of Employment
and Equal Opportunities. European Commissioner for
Employment, Social Affairs and Inclusion László Andor was also
present. Both of them underlined that flexicurity only makes
sense when its two aspects, flexibility and security, are proper-
ly balanced and lead to better jobs, upward mobility and ta-
lent development.
The conference mainly focused on the security aspect of flex-
icurity. Participants had in-depth discussions on the factors
that contribute the most to the development of high-quality
professional transitions. The latter include inter alia transi-
tions from school onto the labour market and transitions within
the labour market. Views were exchanged on the issue of
school dropouts, the improvement of qualifications, training
and life-long learning. The conference also addressed
increased worker vulnerability due to the multiplication of
so-called ‘atypical labour contracts’, which have led to a seg-
mented labour market in some EU member states. Especially
women, youth and older people are affected by this.
Flexicurity has become a guiding principle for the EU’s strate-
gy concerning employment. It could facilitate the transition
towards a green low-carbon economy. It should be noted how-
ever that the flexibility aspect of the concept is at least as
important as the security aspect in this perspective.
ment. Second, Japan has expressed its wish to negotiate a
commercial agreement with the EU on the short term, fol-
lowing the signature of a deep FTA between the EU and
South Korea. Third, the EU and Vietnam signed a new
Partnership and Cooperation Agreement as a framework
for cooperation on various topics, such as business, trade,
investment, energy, education and training, poverty allevi-
ation and human rights. The two parties also agreed to
launch as soon as possible technical preparatory discus-
sions for a bilateral free trade agreement. Fourth, Euro-
pean Commission President Barroso had a discussion with
the Prime Minister of Thailand about ongoing negotiations
on a Partnership and Cooperation Agreement. Finally, the
EU and India discussed their plans for an FTA, just
before bilateral negotiations continued on October 6 in
New Delhi. Earlier, the EU and India announced their
intention to finalize negotiations by the end of 2010. The
negotiations are contentious due to the question of the
inclusion of social and environmental norms in the text.
Asia Europe Business Forum
Parallel to the political summit, the Federation of Enter-
prises in Belgium (FEB) organized the 12th edition of the
Asia Europe Business Forum (AEBF), which took place in
the Egmont Palace in Brussels on October 4. The overar-
Brussels calling - 7 -
 ching theme of AEBF was the financial services industry.
More than 180 high-level representatives from the finan-
cial and public sector in Europe and Asia, as well as from
industry at large, exchanged views on the opportunities
and challenges posed by the financial services industry
to both continents. More than 40 ASEM countries were
represented. Herman Daems, member of the Board of
Directors of FEB and President of BNP Paribas Fortis Bank,
chaired this AEBF edition.
The opening session in the
morning was attended by
inter alia His Royal Highness
Prince Filip of Belgium, Bel-
© jj@triptyque.be
gian Foreign Affairs Minis-
ter Steven Vanackere, and
Lim Hwee Hua, Second
HRH Prince Filip & Thomas Leysen Minister of Finance in Sin-
(FEB) gapore. The importance of
the dialogue between Asia
and Europe in the fields of financial sector supervision and
the financing of the economy was stressed.
Then followed three plenary sessions: a first one on the
restoration of financial stability, a second one on an
integrated market for financial services, and a third one
on the growing role of Asia on the world’s financial
stage. The plenary sessions were followed by a keynote
speech by Dominique Cerutti, President and Deputy CEO
of NYSE Euronext. He emphasized that the traditional
financial centres in Europe and the United States (e.g.
London, New York) are still dominant, but that the latter
are gradually being joined by Asian centres, such as Hong
Kong, Singapore, and even Seoul, Beijing, Shanghai and
Shenzhen. He underlined that a sound regulatory frame-
work will be the key driver of competitiveness for financial
services centres in the future.
Next item on the programme were three paral-
lel breakout sessions, one on financing trade
between Europe and Asia, a second on the
role of finance in reaching sustainable deve-
lopment, and a third on climate change chal-
lenges. One of the guest speakers in the latter
session was Jos Delbeke, Director-General at
the European Commission’s Directorate-Ge-
neral Climate Action led by Commissioner
Connie Hedegaard. He stressed the need for a
comprehensive climate agreement in which the United
States and China should also find their place. “The incor-
poration of all major emitters will stabilize carbon mar-
kets,” Jos Delbeke said. He defended the EU’s market-
based approach – the EU Emissions Trading Scheme (EU
ETS) – which currently already has a turnover of around
100 billion EUR per year. He also stated the open charac-
ter of the EU ETS, which can be linked to emission-redu-
cing projects abroad through the Clean Development
Mechanism (CDM). “It is our mission to create a global
carbon market out of the EU ETS,” Jos Delbeke said.
Several countries around the world are currently in the
process of setting up similar cap-and-trade systems which
put a price on carbon and aim to gradually reduce green-
house gas emissions. Finally, Jos Delbeke emphasized the
importance of market-based instruments to raise the ne-
cessary money to fight climate change. “Government
money alone will not be sufficient for that,” he stressed.
At the end of the day, AEBF chairman Herman Daems pre-
sented the conclusions of the business summit. In their
joint statement, European and Asian business leaders first
of all call for caution and a determination to act sensibly.
“An increased interdependency makes uncoordinated uni-
lateral communications and actions counterproductive and
potentially detrimental to all,” the statement reads. The
conclusions consist of two parts: a first part with financial
recommendations and a second part with general recom-
mendations for the promotion of a business-friendly
environment.
The financial recommendations include first of all the res-
toration of financial stability, mainly through an interna-
tionally consistent regulatory and supervisory framework
which avoids overregulation, contains the risk of regulatory
arbitrage and creates a level playing field. In this perspec-
tive, the importance of sustainable public finances were
also stressed. Second, an integrated market for financial
services, complemented by regional financial integration,
is called upon. Third, participants to AEBF agree that the
financial services industry should in the first place serve
the needs of a changing world. Support to SMEs and
micro-enterprises as well as a contribution to sustainable
development and
the fight against
climate change are
very important in
this respect.
The general re-
commendations for
the promotion of a
business-friendly
environment in-
clude, first and
foremost, a reference to the importance of a balanced
and ambitious conclusion of the Doha Development
Agenda in the framework of the WTO. The multilateral
process can be complemented by bilateral and regional
trade agreements. A second important point concerns
intellectual property (IP) protection. ASEM leaders are
encouraged to establish and maintain a strong and cost-
Brussels calling - 8 -
 effective patent system and enhance enforcement of
patent rights. Also in the field of IP, counterfeiting
remains an impor-
tant issue. Third,
cooperation
between Asia and
Europe is required
in the field of ener-
© jj@triptyque.be
gy (in view of
increasing energy
efficiency and deve-
Asia Europe Business Forum
loping alternative
energy technologies), commodities (in view of commodity
substitution and cleaner technologies) and climate
Climate change
United Nations Climate Change Conference
– sessions of the Ad-Hoc Working Groups
(October 4-9, 2010)
In the run-up to the United Nations (UN) Climate Conferen-
ce to be held in the Mexican city of Cancún from November
29 to December 10, a last formal negotiation session took
place in Tianjin, China from October 4 to 9. As to prepare
a global climate agreement for the period post 2012, UN
climate negotiations were launched at the end of 2007.
Until now, the talks did not yield any notable
results however.
Nonetheless, Christina Figueres, Secretary-
General of the United Nations Framework Con-
vention on Climate Change (UNFCCC), said the
Tianjin meeting produced some concrete results.
More specifically, negotiators have produced a
draft text in which they identify “what is
doable in Cancún and what will be left after-
wards”. The text, which will be submitted to the
Cancún conference, includes key operational ele-
ments such as finance, technology, capacity
building and the future of the Kyoto Protocol.
Notwithstanding the fact that negotiators could not come
to an agreement on the allocation of the 30 billion USD
‘fast start’ fund, views on a new fund of long-term finance
to cope with change have converged significantly. As a re-
sult, Christina Figueres expressed confidence that the issue
will be resolved in Cancún.
European Commissioner for Climate Action, Connie
Hedegaard, was less enthusiastic however. She said that the
change. With regard to the latter, it is stressed that the
private sector could do more “if provided with clarity, pre-
dictability, flexibility, and a fair level playing field achieved
through a global framework agreement”. Fourth, ASEM
governments are encouraged to adopt ambitious and
compatible information and communication technology
(ICT) policies in favour of increased market access. Finally,
the AEBF conclusions underline the need to strengthen
interregional cooperation between SMEs.
The AEBF conclusions were submitted to the ASEM politi-
cal leaders which took note of them during a lunch debate
on October 5. The next ASEM business summit is expec-
ted to take place in 2012. 
progress made was “very patchy and much too slow”.
Mrs. Hedegaard especially criticized the lack of progress
made in translating key elements of the Copenhagen
Accord into UN texts. In addition, the Commissioner stated
that “signs of backtracking on the Copenhagen Accord
by certain parties are an extra cause for concern about the
balance of the Cancún package”.
Nonetheless, Connie Hedegaard expressed her belief that a
satisfactory outcome can still be reached in Cancún. The
Commissioner said that the Tianjin
meeting resulted in a convergence
of views and that next month’s cli-
mate conference must result in a
balanced package of decisions that
takes global climate action forward.
She also said that the content of the
package is gradually becoming
clearer, especially in terms of criti-
cal issues such as climate change
finance, technology cooperation,
reducing tropical deforestation and
adaptation to climate change.
Furthermore Mrs. Hedegaard said
that “the EU will do its utmost
through intensive bilateral and multilateral contacts with its
partners - including host country Mexico - to help ensure
that Cancún achieves the strong outcome that is needed to
keep the international fight against climate change on
track”. She also mentioned that it is vital for the EU that the
decisions taken in Mexico capture the progress made so far
in the international climate negotiations. They should be
starting point for reaching an ambitious and legally binding
climate agreement as soon as possible. 
Brussels calling - 9 -
 EU – China relations
EU – China Summits (October 6, 2010)
EU-China political summit
On October 6, a high-level political summit between the EU
and China took place in Brussels. China was represented by
its Prime Minister Wen Jiabao, whereas European Council
President Herman Van Rompuy and European Commission
President José Manuel Barroso were present on behalf of
the EU. The politicians ex-
changed views on various
topics.
A first point on the agenda
concerned trade and in-
vestment. The EU stressed
the importance of improved
market access, a better
investment climate, more
effective enforcement of intellectual property (IP) rights and
the opening up of the Chinese public procurement market.
Trade barriers on both sides must be reduced or removed.
In addition, China is often criticized by Europe for not step-
ping up enough against technology theft, counterfeiting
and dumping practices. On the other hand, during the
political summit, Wen Jiabao urged the EU to recognize
China as a market economy. Such recognition would make
the country less vulnerable to anti-dumping charges under
the rules of the World Trade Organization (WTO).
Second, with regard to the global economic situation, the
EU representatives underlined the need to reduce global
imbalances. This does not only require struc-
tural reforms in Europe and China, but also
an appropriate exchange rate between the
yuan and the euro. Europe, as well as the
United States, have been accusing China of
keeping the value of its currency vis-à-vis
their currencies artificially low, as such un-
dermining European (and American) compe-
titiveness, economic growth and job creation.
During a meeting between Wen Jiabao on
the one hand, and Olli Rehn (European
Commissioner of Economic and Monetary Affairs), Jean-
Claude Trichet (European Central Bank President) and
Jean-Claude Juncker (Eurogroup President) on the other
hand, the euro zone chiefs stressed once more that
Chinese structural reforms should go hand in hand with an
orderly and broad-based appreciation of the Chinese
currency. Letting the adjustment fall entirely on Europe
would be unfair and could undermine European economic
recovery. In June 2010, China did announce its intention to
reform its exchange rate regime and make yuan exchange
rates more flexible, but “it was not exactly what we had
hoped for,” Jean-Claude Trichet commented. Also
European Commissioner for Trade Karel De Gucht had
said earlier that “there is a real problem with the value of
the Chinese currency”. On October 4, at the beginning of
the Asia Europe Meeting (ASEM) in Brussels, Wen Jiabao
said that China intends to keep the relative value of
major reserved currencies stable. France, which will take
over the presidency of the G20 from South Korea in
November, intends to put the future of the global curren-
cy order on top of the G20 agenda. In 2009, the EU’s
trade deficit with China amounted to 133 billion EUR. In
the first half of 2010, China was the EU’s second most
important trading partner after the United States.
A third topic dealt with was global economic cooperation
and governance. Beijing has been asking for a reform of
the International Monetary Fund (IMF). The EU supported
China’s call for a better representation of emerging econo-
mies in general and a shift of quota shares from overre-
presented to underrepresented countries to improve IMF
governance. However, The Commission and Council Presi-
dents underlined that enhanced representation should go
hand in hand with enhanced responsibilities in global
governance. The matter is expected to be addressed
during the G20 Summit in Seoul in November 2010. The
importance of the G20 as a new forum for economic policy
coordination was also acknowledged.
Finally, the EU repeated its position with regard to the rule
of law and the respect for human rights in China. A
number of dossiers which
concern global security (e.g.
Afghanistan, piracy in the
Gulf of Aden) were also
discussed.
Prior to the EU-China politi-
cal summit, on September
30, BUSINESSEUROPE had
sent a letter to European
Council President Van Rom-
puy and European Commission President Barroso in which
the organization expressed its hope that the summit would
enable the EU to advance its economic relationship with
China based on the principles of reciprocity and global
responsibility. The letter stated that business leaders are
increasingly concerned about the deteriorating business
climate for foreign companies in China, due to Chinese
policy initiatives such as the national indigenous innova-
tion policy, compulsory certification and licenses, state-
directed technology transfer and discriminatory pro-
Brussels calling - 10 -
curement policies. BUSINESSEUROPE urged the two
Presidents to raise the following issues with priority:
• China’s revised offer to join the Government
Procurement Agreement of the WTO, which is consi-
dered insufficient;
• the negotiation of a bilateral investment agreement with
China, which has not opened up its market for foreign
investments as much as the EU;
• China’s decision to reduce export quotas for rare earth
elements, which might result in strong price increases
and delivery shortages;
• China’s role in achieving an ambitious global agreement
to cut emissions and in facilitating private-sector coope-
ration on clean and energy-efficient technologies;
• the sustainability of Chinese macroeconomic and
exchange rate policies.
The above issues were also dealt with extensively during the
EU-China Business Summit which took place on the same
day (see below).
EU-China Business Summit
Just before the political EU-China summit, the Federation of
Enterprises in Belgium (FEB), the China Council for Promo-
tion of International Trade (CCPIT) and BUSINESSEUROPE
organized the 6th edition of the EU-China Business Summit
in the Egmont Palace in Brussels. The main theme this time
was innovation as a win-win solution for steady growth.
More than 500 participants,
both from the European and
Chinese public and private
sector, were present.
In the morning, four sessions
with high-level speakers on
various topics took place.
© jj@triptyque.be
During a first session, parti-
cipants exchanged views on
how innovation can contri-
bute to the efficient use of José Manuel Barroso
resources, and how coopera-
tion in research and development (R&D) can help in find-
ing new recycling applications and closing the material
loop. A second session dealt with the role of information
and communication technology (ICT) in transport and
logistics. ICT-enhanced traffic management has the poten-
tial to make traffic flows significantly more efficient and to
reduce their environmental impact. In a third session, a
panel discussed the global race for talent. They talked
about which kinds of talents are needed nowadays to
strengthen innovative capacity in the future, and about the
requirements for educational systems to accommodate the
development of these talents. A fourth session dealt with
innovation in health and pharmaceuticals.
The highlight of the EU-China Business Summit was sche-
duled for the afternoon. After a presentation by consultancy
firm McKinsey & Company on what it takes to become
innovation champions in the 21st century, a political lea-
ders plenary ses-
sion took place.
High-level speak-
ers in this session
were Wen Jiabao
(Chinese Prime
© Gaëtan Miclotte
Minister), Herman
Van Rompuy
(European Council
President), José
Manuel Barroso (European Commission President) and
Yves Leterme (Belgian Prime Minister). In his opening
address, the Belgian Prime Minister underlined that Europe
and China share “a firm belief in enterprise and trade as
well as the conviction that prosperity can be achieved
through excellence, hard work and innovation”.
Yves Leterme’s introduction was followed by a speech by
European Commission President Barroso. He said that the
common worldwide challenges which Europe and China
face, imply huge commercial opportunities, but to make
mutually beneficial cooperation work, openness is required.
“The European Union’s economy is very open and we wel-
come more Chinese investment. At the same time there is
a general feeling that economic openness
in China could be greatly enhanced,”
Barroso said. He underlined however that
European business people are not asking for
preferential treatment, but for a level playing
field with clarity, stability and predictability.
The Commission President touched upon a
number of European concerns regarding eco-
nomic ties with China, namely restrictions on
access to rare earths (i.e. a number of chemi-
cal elements which are mostly used in high-
technology products), China’s Indigenous
Innovation Product Accreditation Programme
(which favours Chinese-grown technology over foreign inno-
vation, e.g. in government tenders) and the enforcement of
IP rights. He reiterated Europe’s demand to let the
Chinese currency appreciate against the euro so that the
European economy recovery would not be hampered.
After President Barroso’s speech, Chinese Prime Minister
Wen Jiabao took the floor. He left aside his prepared
speech on paper and decided to speak about issues which
currently concern European business leaders in order to
overcome misconceptions. Wen Jiabao offered three possi-
ble explanations of the general feeling that business con-
ditions in China have been deteriorating lately: China’s
Brussels calling - 11 -
exchange rate policy, the Chinese investment climate and
the protection of IP rights in China.
With regard to China’s management of yuan exchange
rates, the Chinese Prime Minister repeatedly urged EU
leaders not to put pressure on his country to let its cur-
rency appreciate. “Doing so,” he warned, “might imply
the closure of many Chinese export-oriented firms which
could lead to social unrest in China.” “This would be a di-
saster for the world,” he added. He also put
Chinese trade surpluses into perspective by
stating that the EU-China trade structure,
rather than an undervalued currency, lies at
the basis of the latter. He said that China
currently runs trade deficits with Japan,
Korea and ASEAN (Association of Southeast
Asian Nations) member countries. Wen
Jiabao emphasized that it is China’s objec-
© jj@triptyque.be
tive to have balanced and sustainable
trade relations with the rest of the world.
Wen Jiabao
Concerning China’s investment climate and IP
rights, the Chinese Prime Minister assured the audience
that China would continue reforms to further open up its
markets. He claimed that foreign companies active in China
enjoy the same treatment as Chinese companies. “Products
of your companies in China are Chinese products,” he said.
“We will protect your intellectual property.”
Wen Jiabao also talked about a number of other topics.
With regard to the recent euro debt crisis, he said that
Europe is a strategic partner of China and that China
would not stand aside but take the necessary action in
case of future problems. He said that in recent months,
China purchased government bonds
from Greece, Iceland, Spain, Portu-
gal and Italy. During a visit to
Greece on October 2, Wen Jiabao
offered to buy Greek debt in the fu-
ture to support a stable euro, show-
ing his willingness to work with
the EU to confront the financial
crisis. Concerning resources, Wen
Jiabao claimed that China would not
close its market for rare earth ele-
ments. A large share of the world’s reserves of rare earth
elements are located in China and recently there have
been indications that the country intends to lower its
export quota drastically for some of these elements. How-
ever, Wen Jiabao stated that the country only has the sus-
tainable exploitation of these resources in mind. In this
respect, he condemned the ambiguous attitude of some
countries which on the one hand urge China to accelerate
extraction of rare earth elements and coal, and on the
other hand reprimand the country for the pollution it
causes. Wen Jiabao emphasized that it is China’s objective
to make growth sustainable.
Finally, European Council President Van Rompuy took
the floor. He touched upon the conditions which Europe
and China need to fulfil in order to ensure steady econo-
mic growth in the coming years, notably innovation, the
promotion of the exchange of talents, a global level pla-
ying field characterized by undistorted competition and
strong economic cooperation in the frame-
work of the G20. For China, this implies
inter alia appropriate exchange rates and
the continuation of reforms. He concluded
by saying that Europe’s pillars for growth,
i.e. economic development, social cohesion
and environmental protection, are increa-
singly becoming China’s pillars of growth
as well.
Finally, after the political leaders plenary
session, a business leaders plenary session
took place. On the European side, the panel
included among other participants Rudi Thomaes, CEO of
the FEB, and Philippe De Buck, Director General of BUSI-
NESSEUROPE. Rudi Thomaes mentioned a number of
challenges in EU-China business relations, such as stan-
dardisation, IP rights and a level playing field in market
access. At the end of the session, Philippe De Buck pre-
sented the joint business declaration of the 6th EU-
China Business Summit.
The declaration states that European and Chinese authori-
ties should remain vigilant and continue pursuing neces-
sary improvements of business conditions in order to
sustain the economic recovery. A
return to protectionist measures
would be damaging to both
Chinese and European economies.
In this perspective, China and the
EU should join forces to move
towards a successful conclusion of
the Doha Round negotiations in
the framework of the WTO.
Business leaders also express their
hope that an acceptable agreement
on China’s accession to the WTO’s Government
Procurement Agreement can be found. In addition,
European and Chinese businesses call for bilateral and
multilateral cooperation in the fight against counterfeiting
and piracy. With regard to innovation and creativity, the
exchange of talents between Europe and China should
be promoted and university cooperation should be
enhanced in order to encourage capabilities in science,
technology and innovation. Concerning the investment cli-
mate, businesses from both sides call upon their leaders to
Brussels calling - 12 -
improve investment conditions and remove impediments
to cross-border investment. Finally, regarding climate
change, the importance of the Clean Development
Mechanism (CDM) as a key instrument to reduce global
greenhouse gas emissions is underlined. EU and China
EU – South Korea relations
EU – Republic of Korea Summit (October 6,
2010)
On October 6, the 5th EU – South Korea summit took place
in Brussels. The EU was represented by European Council
President Herman Van Rompuy and European Commission
President José Manuel Barroso. South Korea was represen-
ted by its President Lee Myung-bak.
Highlight of the summit was the signing of the
free trade agreement (FTA) between the EU
and South Korea, which was authorized by the
Foreign Affairs Council on September 16. The
FTA is the most ambitious ever signed by the
EU, requiring the two parties to eliminate 98,7%
of duties (expressed in trade value) for both in-
dustry and agriculture over a period of 5 years.
The agreement also addresses non-tariff barriers, competi-
tion and state aid, intellectual property, public procure-
ment, customs and trade facilitation. A dispute settlement
mechanism is also provided for. It has been agreed on the
EU side that the provisional application of the agreement
will start in July 2011, provided that the European Parlia-
ment has given its consent and that a regulation imple-
menting a bilateral safeguard clause has entered into
force. The Parliament is scheduled to vote on the latter
clause during its plenary session on October 19. With re-
gard to the FTA, Herman Van Rompuy stated that “it sends
a strong signal that trade liberalisation is a key element for
the recovery of the world economy”. José Manuel Barroso
said that the agreement “demonstrates our belief in open
Justice and Home Affairs
Justice and Home Affairs Council (October
7-8, 2010)
On October 7-8, the Justice and Home Affairs Council held
a meeting in Luxembourg. Several topics where on the
agenda, among which a Commission presentation and sub-
sequent ministerial discussion on draft directives on the
should intensify their cooperation in the development of
clean and energy-efficient technologies.
The next EU-China Business Summit will take place in
China in 2011. 
markets”. South Korea is the EU’s eighth largest trading
partner, with goods trade between the EU and South Korea
being worth around 54 billion EUR in 2009.
During the summit on October 6, the political leaders also
decided to upgrade their relations to a strategic partner-
ship. In May 2010, a new Framework Agreement between
the EU and South Korea was signed. It provides a basis for
strengthened cooperation
on major political and glo-
bal issues such as climate
change and development
cooperation.
The European and South
Korean representatives also
exchanged views on global
issues, such as the global economic situation and climate
change, as well as regional issues, like the situation on the
Korean peninsula, in Pakistan and Afghanistan, and the
developments in wider East Asia. They stressed the impor-
tance of G20 actions in securing the global economic
recovery and strengthening financial regulation and supervi-
sion. They agreed on the importance of trade for the eco-
nomic recovery, which implies an urgent conclusion of the
Doha Round in the framework of the World Trade Organi-
zation (WTO). Finally, the EU and South Korea pledged to
keep pursuing a high level of ambition to tackle climate
change challenges, and stressed the importance of market-
based mechanisms to realize emission reductions. 
conditions of entry and residence of third-country
nationals in the framework of intra-corporate transfers
and for the purposes of seasonal employment. On July
15, 2010, the European Commission issued proposals for
two directives regulating entry and residence conditions of
non-EU citizens coming to the EU in the framework of an
intra-corporate transfer or for the purpose of seasonal
Brussels calling - 13 -
employment. With the proposals, the Commission intends
to guarantee equal treatment throughout the EU to
admitted workers.
The draft directive regarding intra-corporate transfers con-
cerns highly qualified people, inter alia managers, specialists
and graduate trainees. The proposal first of all establishes
EU-wide criteria for
the admission of
applicants to an EU
member state, i.e. a
valid work contract
proving employment
with the employer in
question of at least
12 months, an
assignment letter
specifying the duration and location of the transfer, a valid
travel document and evidence of sickness insurance. An
accelerated application procedure is foreseen, suggesting
that a decision must be taken within 30 days. If the out-
come is positive, the intra-corporate transferee would
receive a combined work and residence permit valid for a
specific period of time (1 to 3 years depending on the func-
tion of the concerned individual). Rejections would be open
to legal challenge. Furthermore, the draft directive stipu-
lates that admitted transferees must receive equal treat-
ment as compared to nationals in areas such as workers’
representation, payment of statutory pensions and access
to public goods and services. The recognition of diplomas,
certificates and other professional qualifications is also pro-
vided for. To increase the attractiveness of EU member
states to intra-corporate transferees, a provision is included
regarding the treatment of family members and intra-EU
mobility. Finally, the proposal establishes the grounds for
refusal, withdrawal and non-renewal of permits and sets out
procedures to be followed when an application is received.
Simplified procedures would be possible under certain con-
Environment
Environment Council (October 14, 2010)
On October 14, the first formal Environment Council under
the ongoing Belgian Presidency was held in Luxembourg.
Apart from the EU Environment Ministers, the meeting was
also attended by EU Environment Commissioner Janez Poto-
cnik, Health and Consumer Protection Commissioner John
Dalli and Climate Action Commissioner Connie Hedegaard.
Main points on the agenda were the adoption of conclusions
with regard to the EU policy for the upcoming United Na-
tions (UN) conferences on biodiversity and climate change,
ditions. Member states would however retain the right to
decide how many intra-corporate transferees they want
to admit to their respective territories.
The draft directive concerning seasonal workers regulates
for a large part the same issues as those addressed in the
directive on intra-corporate transferees, i.e. conditions of
entry and residence, seasonal workers’ rights, procedures to
be followed when an application is received, grounds for
refusal, withdrawal and non-renewal, the term within which
a decision must be rendered and the possibility of legal
challenge. Permitted individuals would receive a seasonal
worker permit, which would be valid only for the host
member state and for a maximum of six months. However,
a ‘multi-seasonal worker permit’ is also foreseen, which
implies the issue of up to three permits covering up to
three subsequent seasons within one administrative act.
Again, member states would retain the right to decide how
many intra-corporate transferees they want to admit to their
respective territories.
During the Council discussion on the two draft directives,
EU ministers pointed out that the impact of the proposals
on national labour markets should be taken into account.
Some delegations asked for more flexibility, e.g. with re-
gard to the proposed duration of stay and the terms within
which a decision must be given. Another point of discussion
was whether third-country seasonal workers should be gi-
ven long-term visas instead of temporary residence per-
mits. Regarding social security benefits, several member
states questioned the principle of equal treatment. Finally,
some ministers raised their doubts on whether the seasonal
workers proposal was in line with the subsidiarity principle.
Finally, the Council adopted without discussion a regulation
on administrative cooperation and the combating of value-
added tax (VAT) fraud. The regulation creates ‘Eurofisc’, a
network of national officials to detect and combat new
cases of cross-border VAT fraud. 
a discussion about genetically modified organisms (GMOs)
and a discussion on the options for moving beyond the
20% target for reducing greenhouse gas emissions.
With regard to the UN conference on biodiversity, which
will take place in the Japanese city of Nagoya from October
18 to 29, the Council agreed on the main EU negotiating
positions and it reconfirmed the bloc’s main target of halting
– and restoring insofar possible – biodiversity and ecosystem
services by 2020. Concretely, the Council acknowledged that
the EU will not meet the 2010 global biodiversity targets,
Brussels calling - 14 -
 Convention on Biological Diversity (CBD)
and that the objectives of the Convention on The Convention on Biological Diversity was signed by 150 heads of govern-
Biological Diversity (CBD, see boxed text) ment at the 1992 Earth Summit in Rio de Janeiro. It is dedicated to promo-
cannot be achieved given the current level of ting sustainable development, equal access to genetic resources and benefit
sharing (for example, to facilitate the development of pharmaceuticals from
resources. Therefore, the EU’s policy at the
plant species) and to prevent biodiversity loss from persisting.
Nagoya meeting will be to strive for an am-
bitious, widely implemented new CBD stra- Since the European Commission estimated the annual cost of loss of ‘ecosys-
tegic plan for the period 2011-2020, and to tem services’ on roughly 50 billion EUR, and as OECD countries barely spend
increase the amount of resources to achie- 3 billion EUR on biodiversity protection, the issue has gradually been clim-
ve the plan’s timely implementation. How- bing up the political agenda. Therefore, the European Parliament recently
urged the EU to play a leading role at the biodiversity conference.
ever, given the current economic situation,
Joke Schauvliege, Flemish Environment Mi-
nister and current president of the Environ-
ment Council, stated that Europe will not come up with new Finally, the Council analyzed the options to move beyond
money for other countries. Furthermore, the EU will pursue 20% greenhouse gas emission reduction and it assessed
the agreement of a protocol on access to genetic resour- the risk of carbon leakage. More specifically, the Council
ces and benefit sharing. Finally, the EU will also plead for a took note of the Presidency report on the follow-up of the
stronger relationship among the Rio Conventions (the communication about a move beyond the 20% reduction
CBD, the United Nations Framework Convention on Climate target and the risk of carbon leakage. In this context, the
Change (UNFCCC) and the United Nations Convention to Council invited the Commission to further examine options
Combat Desertification (UNCCD)) to reach their objectives. for a move beyond 20% and to further analyze the im-
pact it would have on member states. It was also decided
As for the UN climate change conference, to be held from that the roadmap for a safe and sustainable low-carbon
November 29 till December 10 in Mexico, the Council ex- economy by 2050, which is expected to be published early
pects the Cancún meeting to result in the adoption of a ba- 2011, should also outline a long-term, low-development
lanced set of decisions that will provide a solid basis for a strategy to put the 2020 target into perspective. Concretely,
binding, international climate agreement. Furthermore, the the roadmap should set out a trajectory for emission reduc-
main discussion topic was possible the continuation of the tions with intermediate targets for 2030 and 2040. Looking
Kyoto Protocol. In a joint statement, Joke Schauvliege and ahead to the spring 2011 European Council, participants
Connie Hedegaard stated that, provided that this would be decided to again address the options to move beyond 20%
part of a global framework engaging all major economies, after the Cancún climate conference.
the EU would be willing to consider a second commitment
period under the Kyoto Protocol. As set out in the Com- In the light of this discussion, BUSINESSEUROPE warned
mission’s March communication, the Council also agreed to the Council for the detrimental effects of a unilateral
adopt a ‘step-wise’ approach in its strategy to secure an move to a 30% reduction target. In a letter to Joke Schau-
international, legally binding vliege, BUSINESSEUROPE wrote that, in the
climate agreement. absence of an international, legally binding
agreement, this would be counter-productive
Regarding GMOs, the Com- for European business.
mission’s proposal to let
member states decide for In the margin of the above item, the Council
themselves whether or not took note of the progress made by the EU with
to allow the cultivation of regard to achieving its greenhouse gas reduc-
GMOs on their territory – tion objectives. The Commission concluded that
provided that they are no 25 out of 27 member states would meet, and
threat to the environment or consumers’ health – was at the even overshoot their Kyoto targets.
center of the discussion. Since opinions on their impact on
the environment, public health, a possible fragmentation of Finally, the Council was briefed on a Commission proposal
the common agricultural policy and the functioning of the that aims for the phasing-out of subsidies for the closure of
internal market diverge greatly among member states, the uncompetitive coal mines.
authorization for the use of GMOs is almost impossible to In the margin of the Environment Council, a directive con-
receive. Since the participants’ opinions did not converge, cerning the refund of value added tax (VAT) to taxable per-
no majority could be found for the Commission’s proposal sons established in a member state other than the one of
among the Environment Ministers. As a result, until further refund was adopted as well. The directive allows the dead-
progress is made, the right to decide over whether or not to line for refund applications to be extended from September
allow GMOs still lies with the Commission. 30 2010 to March 2011. 

Brussels calling - 15 -
 Transport, Telecommunications and Energy
Transport, Telecommunications and Energy
(TTE) Council (October 15, 2010)
On October 15, the Council met in its Transport confi-
guration in Luxembourg under the presidency of
Etienne Schouppe, Belgian State Secretary for Mobility.
EU Transport Ministers reached a political agreement
on the Commission’s proposal for a new ‘Eurovig-
nette’ directive –
the most recent
accomplishment of
the Belgian
Presidency. The
initial directive
entered into force
in 1999 and
allowed member
states to levy user
charges (i.e. time-based charges or distance-based
charges such as tolls) on heavy goods vehicles (above
3,5 tonnes) to cover the costs of maintaining, opera-
ting and replacing road infrastructures that are part of
the trans-European network. If member states decided
to introduce such charges, the directive obliged them to
ensure that they would not result in discrimination, and
prohibited that charges were used to recover so-called
‘external costs’ (e.g. related to noise or air pollution),
which should be borne by society at large. The directive
intended to preserve the smooth functioning of the
internal market by preventing any abusive
and discriminatory charging by member
states.
The new directive proposed by the Commis-
sion in July 2008, over which political agree-
ment has now been reached, allows for the
internalisation of external costs and as such
implements the ‘polluter pays’ principle in the
legislation. Concretely, member states will be
allowed to calculate tolls based not only on
road infrastructure costs, but also the cost of
traffic-based air pollution and noise (so-called
‘external cost charges’). Charges will be diffe-
rentiated: they will vary depending on the type
of vehicle, emissions, the distance travelled, the location
and the time of road use. The directive eventually does
not introduce a specific ‘congestion charge’, but gives
permission to member states to modulate the infrastruc-
ture charge to take road congestion at peak hours into
account. The field of application of the directive would
be extended from only trans-European network motor-
ways to all motorways in Europe. Interoperable elec-
tronic systems (which have to be in place by 2012) will
collect the charges, and distributed receipts will clearly
indicate the amount of the external cost charges so
hauliers can pass the cost to their clients. Finally, the
directive includes a provision which recommends mem-
ber states to earmark part of the revenues generated
by the external cost charge for projects in the trans-
port sector.
By giving clearer price signals and differentiating char-
ges, it is expected that road users will change and
adapt their travel behaviour by better planning their
transport, e.g. driving less polluting vehicles or avoiding
the rush hour. This should lead to greener and more
efficient transport.
The European Parliament already completed its first
reading of the draft directive in March 2009. The
Council however needed more time to come to an
agreement. Contentious questions included the use of
the revenues raised by the external cost charges and
the introduction of a specific congestion charge. The
text will now move back to the European Parliament
for a vote.
The Transport Council also exchanged views on the
future of transport in the coming decade. The discus-
sion will serve as input for the white paper the
European Commission
will draft on transport
policy for the coming
decade which will be pub-
lished by early 2011.
Ministers first of all dis-
cussed what the general
priorities and strategies
of the future EU transport
policy should be to ensure
sustainability and address
other challenges such as
climate change and other
environmental issues,
migration, scarcity of fossil
fuels and urbanisation. Second, they expressed their
views on what measures should be taken to foster the
role of new technologies in the transport sector. 
Brussels calling - 16 -
 LINKS

• Website of the Belgian Presidency of the Council of the European Union

http://www.eutrio.be
• Website of the Belgian EU Presidency of the Federation of Enterprises in Belgium (FEB)
http://eupresidency.vbo-feb.be

TEAM PRESENTATION

Presentation of the European Department of the FEB

Diane Struyven
Director of the European Department of the FEB – Permanent Delegate to BUSINESSEUROPE
Tel: +32 (0)2 515 08 34
ds@vbo-feb.be

Michael Voordeckers
Advisor at the European Department of the FEB
Tel: +32 (0)2 515 09 82
mv@vbo-feb.be

Arnaud Thysen
Deputy Advisor at the European Department of the FEB
Tel: +32 (0)2 515 09 31
at@vbo-feb.be

Michiel Humblet
Intern at the European Department of the FEB
Tel: +32 (0)2 515 08 04
guesteurop@vbo-feb.be

Pieter-Jan Van Steenkiste

Intern at the European Department of the FEB
Tel: +32 (0)2 515 09 84
guesteurop2@vbo-feb.be

FEB – Federation of Enterprises in Belgium

Ravensteinstraat 4 – 1000 Brussels – Tel. 02 515 08 11 – Fax. 02 515 09 15

PUBLISHER: Olivier Joris – Wolvenbergstraat 17 – 1180 Brussels

PUBLICATION MANAGER: Stefan Maes – Tel. 02 515 08 43 – sm@vbo-feb.be
GRAPHIC DESIGN: Vanessa Solymosi, Landmarks – sm@vbo-feb.be
COPYRIGHT: Reproduction with acknowledgement of source is permitted

FEB – member of

Brussels calling - 17 -