Framework for Public-Private Partnerships

The European Commission presents a framework for encouraging the use of public private partnerships (PPPs) to meet existing and future needs for investment in public services, infrastructure and research in Europe.

The framework involves:

• increased funding for PPPs through working with the EIB, by re-focusing existing Community instruments and by developing guarantee instruments for PPP financing;
• in cases involving EU funding, better rules and procedures in order to ensure a level playing field between wholly publicly managed projects and those managed under PPPs;
• a more effective framework for innovation, including the possibility for the EU to participate in private law bodies and directly invest in specific projects;
• considering an EU legislative instrument on concessions, based on the ongoing Impact Assessment;
• improved information dissemination and exchange of best practice; including the creation of a new PPP group in which relevant stakeholders can share their concerns and further ideas with regard to PPPs.

New Energy Saving Package Agreed

The Council and the European Parliament have agreed on a new energy saving package, including a new Energy Performance of Buildings Directive and a new Energy Labeling Directive.

By the end of 2020 all newly-constructed buildings in the European Union should have a “very high energy performance”. Their energy needs must be covered to a very significant extent from renewable sources, including energy produced on-site or nearby.

The following buildings will be excluded from the scope of the directive: small houses (with a floor area of less than 50m2), holiday homes used for less than four months a year (or that use less than 25% of all-year energy consumption), buildings for religious activities, temporary buildings used for two years or less, industrial sites, workshops and agricultural buildings with low energy demand and protected historic buildings.

 

New EU Legislation on Investment Issues

Two new legal acts have been published in the Official Journal that deal with the investment process. Regulation (EC) No 1060/2009 on credit rating agencies introduces a common regulatory approach in order to enhance the integrity, transparency, responsibility, good governance and reliability of credit rating activities. Directive 2009/65/EC applies to undertakings for collective investment in transferable securities (UCITS) established within the territory of the European Union.

Both acts are quite detailed.

 

Valuing Ecosystem Services

TEEB – a study on The Economics of Ecosystems and Biodiversity was launched by germany and the European commission to develop a global study on the economics of biodiversity loss.

A new report has been published, summarizing the study findings for policy makers. The main points:

1. Valuing ecosystems makes economic sense

Losses in the natural world have direct economic repercussions that we systematically underestimate.

2. It is essential to measure nature and biodiversity

Developing our capacity to measure and monitor biodiversity, ecosystems and the provision of services is an essential step towards better management of our natural capital.

3. Investing in nature pays off

Investing in natural capital supports a wide range of economic sectors and maintains and expands our options for economic growth and sustainable development.

4. The social dimension needs to be fully taken into account to develop successful strategies to protect biodiversity

This involves making sure the right people pay – both locally and globally. It also means looking at property and use rights and potentially easing any transition pains.

5. Nature is an asset in future economic strategies

Biodiversity and ecosystem services are natural assets with a key role to play in future economic strategies seeking to promote growth and prosperity.

 

Solvency II is Adopted

The directive on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II) has been adopted by the Council. It will provide a common legislative framework for the insurance and reinsurance businesses in the European Union.

Report on Trade Restriction Measures

The European Commission has published a report on potentially trade restrictive measures introduced between October 2008 and October 2009 by the European Union’s (EU) major trade partners. 223 new trade restrictive measures were reported as planned or introduced since October 2008.

The report says that a protectionist worst-case scenario has been avoided as the measures taken so far are rather limited in scope, relative to fears and previous experience with economic downturns.

 

Common EU Rules for Exports

The new Regulation (EC) No 1061/2009 establishing common rules for exports has been published in the Official Journal.

The principle set out in the regulation is that the exportation of all goods from the European Union shall be free, with the exception of the restrictions provided for in that regulation.

 

GM Drops Opel Deal with Magna and Sberbank

The board of directors of General Motors has decided not to finish the deal for the sale of carmaker Opel to a consortium of the Canadian Magna and Russian Sberbank. The has been a subject of investigation by the European Commission for illegal state aid.

The European Commission has said that it is now ready to examine any revised state-aid package that might be offered by the German government in the light of GM’s surprise announcement.

The German government has claimed that the financial aid for Opel was not conditional. I fail to understand, then, the reaction of Jürgen Rüttgers, premier of North Rhine-Westphalia, who said: “General Motors’ behaviour shows the ugly face of turbo-capitalism. That is completely unacceptable.” Rainer Brüderle, Germany’s new economics minister, has also said: “The behaviour of General Motors towards Germany is totally unacceptable.”

To my humble opinion the wording of the German reaction is utterly unacceptable itself. The German government has said in writing to the European Commission that the €4.5bn of government aid for the deal was not dependent on Magna and Sberbank being the winner, and is available to all bidders.

Is it available to all bidders or is it not available or what?

 

Commission Moves Forward with Bulgarian Bar Act Case

The European Commission has decided to move forward with the Bulgarian Bar Act case and has sent a reasoned opinion saying that some provisions of Bulgarian legislation relating to lawyers constitute a violation of the freedom of establishment of lawyers and law firms in Bulgaria as enshrined in Article 43 EC and also infringe Directive 98/5/EC, which aims to facilitate practice of the profession of lawyer on a permanent basis in a Member State other than that in which the qualification was obtained.

Post-2013 EU Budget Overhaul?

The EU Observer says that the first principle draft of EU budgeting post-2013 shows significant changes in budget priorities. Agricultural and regional aid in its current form is significantly reduced. Regional aid for wealthy Member States is scrapped to a large extent. Jobs, climate change and foreign policy are the three priorities in the budget draft.