20/09/2010 • Issue 3

Belgian EU Presidency Business Newsletter

Brussels calling
CONTENTS

Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Economic and Financial Affairs . . . . . . . . . . . . . . . . . . . . . . . 1
Foreign Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Events & meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
In the spotlight – State of the Union . . . . . . . . . . . . . . . . . 5
General Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
In the spotlight – Herman Van Rompuy at FEB . . . . . . . . 7
European Summit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Pension conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Links . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Team presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Editorial
European leadership in a multipolar world: a The Copenhague United Nations Climate Change Conferen-
wake-up call! ce showed once more that speaking with ‘one voice’ is the
The lack of a common European strate- only option for the EU. We Europeans should learn from
gy towards global developments has this, if we want to count in a globalized world. Furthermore,
hampered the EU to fully exercise its the economic dimension of EU foreign policy should be ad-
economic and potential political weight dressed urgently. Strengthening partnerships with the Uni-
on the international scene. Therefore, ted States, Russia, India, Japan, Brazil and, especially China
we should welcome Herman Van will generate enormous economic returns for the EU in
Rompuy’s initiative to strengthen the terms of jobs and growth. It is essential to target these mar-
EU’s relations with its strategic partners, kets by pursuing an ambitious international trade policy and
especially the emerging powers. by establishing an economic division in the European Exter-
Diane Struyven, nal Action Service. The latter should provide foreign com-
Director of the European
Department of the FEB Although current ‘world players’ might mercial services in key embassies and work closely with busi-
have different views on what the world ness, especially to promote European industries and servi-
should be, economically spoken, they become more and ces and to assist foreign investors in finding European part-
more interdependent. All of them are facing the same glo- ners. Moreover, the EU should give strategic bilateral dia-
bal challenges, for example, climate change, security of logues a more coherent negotiating structure. The upco-
energy supply and financial stability. If Europe wants to play ming EU Business Summits with Asia (October 4), China
an important role in a multipolar world, it should develop (October 6) and India (December 10), organized in the
sine die a clear and sound strategy towards other world framework of the Belgian Presidency, are a unique opportu-
players. In this respect, strategic partnerships are key. nity to develop strategic partnerships with these players.

Economic and Financial Affairs

Economic and Financial Affairs (ECOFIN) Finance Ministers attended a meeting of the Task Force on
Council & Eurogroup meeting (September 7, economic governance chaired by the President of the
European Council, Herman Van Rompuy.
2010)
On September 7, the Economic and Financial Affairs Council The Task Force held a discussion on which kind of sanctions
(ECOFIN) and the Eurogroup assembled in Brussels for their could be imposed on a member state that does not
monthly meeting. The day before, on September 6, the comply with the criteria set out in the Stability and

BrusselsCalling - 1 -
 The European semester
Growth Pact (SGP) or in the excessive imba-
lance procedure. The latter is a series of recom- The European semester will consist of a six-month cycle which will start
mendations that can be made based on a range every year in March. The semester will start with the presentation of a
of key indicators regarding competitiveness.The Commission report analyzing each member state’s economy. Based on
debate was focused specifically on getting a clear this report, the European Council will identify member states’ main
view on what could and could not be achieved economic challenges, and strategic policy advice will be given. After
within the legal framework of the Lisbon Trea- having received the advice, in April, member states will then review
ty. A first conclusion was that, in terms of enfor- their medium-term budgetary strategies and lay out national reform
cement mechanisms, it would be legally possible programmes. In June and July, before national budgets are being finali-
to financially sanction Eurogroup members, zed, the Council will again assist member states by giving policy advice.
whereas this would not be the case for non-mem-
bers. Secondly, making the allocation of EU sub-
sidies conditional on the state of public finances the Commission will present a proposal for ‘quasi-automa-
could be possible as well. In addition, Eurogroup mem- tic’ sanctions on September 29. The creation of the Euro-
bers could also develop new sanctions. In order to lead to pean semester is one of the first concrete results of the
more automaticity, this might work of the Task Force on economic governance chaired
sometimes involve a reversed by Herman Van Rompuy agreed upon by the Council.
voting procedure. This means
that, unless blocked by a The endorsement of the agreement reached on Septem-
qualified majority, sanctions ber 2 by the EU triangle – the Council of the EU, the Eu-
would be approved. Thirdly, ropean Commission and the European Parliament – to
as stated in the Lisbon Treaty, reform financial supervision in the EU undoubtedly is
setting minimum quality another key point decided upon during last week’s
requirements for national ECOFIN Council meeting. The establishment of four new
budgetary frameworks could supervisory bodies is the first important decision under
be a possibility as well. A the Belgian Presidency of the EU. According to Internal
fourth and final conclusion of Market Commissioner Michel Barnier this is “a crucial
the discussion was that, since milestone”. The agreement, sets out the establishment of
debt and deficit are equal cri- a European Systemic Risk Board (ESRB) for macro-pru-
teria in the SGP, another possibility would be to initiate an dential supervision and three European Supervisory
excessive deficit procedure for countries – with a debt Authorities (ESAs) for micro-prudential supervision (see
ratio of over 60% – of which the national debt does not boxed text). The supervisory bodies, which will be far
decrease quickly enough. more important than originally foreseen, will have the po-
wer to suspend trading of certain products under certain
In the next few weeks, the Task Force will focus on the circumstances. The deal was not struck easily however.
concretization of the agreements already rea- On the one hand, the European
ched to facilitate stronger economic coordina- Parliament feared that if too
tion in the EU. The results of this will be included weak, the bodies would not have
in the final report of the Task Force which will the power to act effectively. The
be presented to the European Council on member states on the other hand,
October 28-29. On September 16, at an informal feared losing sovereignty in one
meeting of the European Council, Herman Van of the core policy areas for a
Rompuy has again briefed EU leaders on the national government. In the end,
progress of the Task Force. In a reaction, all the much to the frustration of MEPs,
Heads of State or Government said they want to the member states obtained the
continue the work and to keep the momentum. right to appeal the decisions of
the new bodies. In addition, direct
Regarding the ECOFIN Council itself, the main oversight of companies is still left
result was the endorsement of the introduction with national supervisors. The new
of the so-called ‘European semester’ as from 2011 (see bodies can only coordinate actions. As a result, even
boxed text). In order to reinforce the implementation of though being an important step in redefining financial
the EU’s SGP, the European semester is aimed specifically supervision in the EU, there is some doubt as to how
at improving economic policy coordination, strengthen- effective these bodies will actually be. On September 20-
ing budgetary discipline, growth and macroeconomic 23, at the Parliament’s plenary session, the establishment
stability. As specific sanctions for countries ignoring the of the ESRB and the three ESAs should receive a final go-
Council’s and Commission’s advice are still to be discussed, ahead. The new bodies are expected to be operational

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 New EU supervisory bodies
as of January 1, 2011. According to a revision clause,
the effectiveness of the supervisory system shall be The European Systemic
assessed after a few years and reinforced if necessary. Risk Board (ESRB)
The ESRB will be responsible
The Finance Ministers also discussed the possible imposi- for macro-prudential oversight
tion of a levy on banks to offset future bail-out opera- of the EU’s financial system. It
will be chaired by the Presi-
tions of banks and financial institutions. Following the
dent of the European Central
destabilizing effects of such bail-outs in the past few
Bank (ECB), currently Jean-
years had on public finances, several member states
Claude Juncker, the ECB Vice-
already imposed some kind of bank levy or are in the
President, the 27 EU central
process of doing so. As differences in levies between dif-
bank governors, a Commission
ferent member states can create competitive distortions
member and the chairs of the
within the EU single market, the Commission urges the
three ESAs. In addition, a re-
EU to adopt measures to avoid these. It became clear
presentative from the national
that reaching a consensus regarding a bank levy is supervisory authority of each
becoming more and more likely. However, member EU country and the President
states are still hugely divided over whether to gather tax of Economic and Financial
revenues in one common pot – a resolution fund – or to Committee may attend ESRB
return it to national governments. This issue shall be dis- meetings but they have no
cussed more concretely on October 1 in Brussels at the voting rights. Concretely, the
next ECOFIN Council. ESRB’s work will focus on
decreasing systemic risks and
A tax on financial transactions was the second type of making sure the financial sec-
levy to be discussed at the ECOFIN Council. On this tor contributes sufficiently to
topic, Didier Reynders, Belgian Finance Minister and cur- the development of the real
rently holding the Presidency of the ECOFIN Council, economy. The Board’s objec-
said that it was a “very complex” matter about which tives include tackling fragmen-
member states reached no unanimity. Former defenders tation of nationally based risk
of the tax – Germany, Austria and France – all made con- analyses, improving early war-
siderably less efforts to back the idea. French Finance
Minister, Christine Lagarde, scaled down French support
for the idea by saying: “the financial transactions tax wasn't discussed very much. To me it seems somewhat redundant
if we have the bank levy.” In addition, widespread concerns over banks relocating outside the EU further undermined
the idea of a tax on financial transactions. Just as the bank levy, this issue will be further discussed on October 1.
ning mechanisms and translating
risk assessments into action by
the competent authorities.
European Supervisory
Authorities (ESAs)
To provide micro-prudential
oversight at European level, a
European Banking Authority
(EBA), a European Insurance
and Occupational Pensions
Authority (EIOPA) and a
European Securities and
Markets Authority (ESMA) will
be established. All three super-
visory bodies will have the
authority to overrule their
national counterparts when the
latter act in breach of EU law,
when two or more national
supervisors disagree or when
member states call an emer-
gency. Member states will have
the possibility to appeal the
decisions of the ESAs however.
The EBA will be based in
London, the EIOPA in Frankfurt
and the ESMA in Paris.

At the Eurogroup meeting, Finance Ministers took note of the progress made by the Greek government regarding
the implementation of measures to reduce its government deficit. Finally, the Council approved a second tranche of
the EU loan to Greece. 

Foreign Affairs

(Informal) Foreign Affairs Council (September
10-11, 2010)
Under the chairmanship of Belgian Minis-
ter of Foreign Affairs Steven Vanackere, on
the first day exceptionally replacing High
Representative of the EU for Foreign
Affairs and Security Policy Catherine
Ashton, the Foreign Affairs Council met in
Brussels on September 10-11. The overar-
ching theme of the Council meeting on
September 10 was trade, whereas other
topics relating to the EU’s external relations
were discussed under the presidency of
Catherine Ashton on September 11.
First of all, ministers voted on the adoption of
a decision authorizing the signature of a free
trade agreement (FTA) with South Korea.
The FTA would cover goods, services, intellec-
tual property, public procurement, non-tariff
barriers and a dispute settlement mechanism.
However, Italy initially put its veto out of fears
for the impact of the deal on its car industry,

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notably the small-car segment in which Italian car manu-
facturer Fiat is positioned. The FTA would among other EVENTS&MEETINGS
things imply significantly easier access of South Korean
cars to the EU market. The Italian authorities were asking 19-21/09/2010 Informal Agriculture and Fisheries La Hulpe
Council - Agriculture
for a delay in the entry into force of the agreement to
20-23/09/2010 Plenary session of the European Strasbourg
allow Italian car manufacturers to prepare for stronger Parliament
competition. Currently, the text foresees the elimination
23-24/09/2010 Informal meeting of EU Defence Ghent
of EU import barriers to South Korean cars over a period Ministers
of 3 years for high- and medium-powered vehicles and 27/09/2010 Agriculture and Fisheries Council Brussels
over 5 years for small cars.
27-30/09/2010 The EUROFI Financial Forum 2010 Flagey Center,
– “Optimizing EU financial reforms Brussels
Following Italy’s veto, the Belgian Presidency continued for achieving resilience, growth and
competitiveness”
consultations over the weekend in the hope that a politi-
cal agreement on the FTA could be found on September 27-29/09/2010 ICT 2010 conference (organized Brussels Expo,
with the support of the Belgian Brussels
13 during the General Affairs Council. When it turned out Presidency) – Conference on latest
that Italy needed more time ICT trends & EU priorities for ICT
R&D funding
to consider the issue, an
extraordinary Foreign 28-29/09/2010 Ministerial conference – La Hulpe
“Promoting green employment :
Affairs Council was held on a major and indispensable driver
September 16, where the behind a successful transition
towards a competitive low carbon
knot was finally cut under and green economy”
pressure of other member
29/09/2010 FEB lunch debate with Karel De FEB premises,
states which were strongly in Gucht, European Commissioner for Ravensteinstraat
favour of the deal. The com- Trade 4, Brussels

promise now foresees in a 29/09-1/10/2010 Conference (organized with the Charlemagne

support of the Belgian Presidency) building (Euro-
provisional entry into force – “World class clusters to re-launch pean Commis-
of the FTA as of July 2011, 6 European industry” sion), Brussels
months later than initially 29-30/09/2010 Informal Competitiveness Council – Brussels
planned. The text will now Internal Market
be forwarded to the European Parliament which also has 30/09-1/10/2010 Informal Economic and Financial Brussels
to give its consent, given the new legislative powers it Affairs (ECOFIN) Council
acquired under the Lisbon Treaty. Negotiations with the 30/09/2010 4brabant.eu – High-level networ- Cinquantenaire
Parliament should take place before the end of the month king event for entrepreneurs and Park, Brussels
government officials
and would cover among other things a regional safequard
clause, enabling special protection for European firms in 4/10/2010 Asia Europe Business Forum Egmont Palace,
(AEBF) Brussels
regions with high unemployment rates. After the signa-
ture of the deal together with South Korea, which is now 4/10/2010 Fourth newsletter ‘Brussels calling’

foreseen for October 6 in the margin of the Asia-Europe 4-5/10/2010 Conference (organized with the Ghent
support of the Belgian Presidency)
Meeting (ASEM), all EU member states will also have to – “Flexicurity to the benefit of wor-
ratify the text. The Council formulated a number of condi- kers: making transitions pay”
tions, notably the adoption of a regulation implementing 6/10/2010 EU-China Business SummitEU- Egmont Palace,
a bilateral safeguard clause, the demand that new trade India Business Summit Brussels

benefits accorded by South Korea to the United States 28/10/2010 FEB lunch debate with Connie FEB premises,
would also be extended to the EU, and the requirement Hedegaard, European Ravensteinstraat
Commissioner for Climate Action 4, Brussels
that South Korean CO2 emission regulations would not
impose an unfair burden on EU exporters. Negotiations 10/12/2010 EU-India Business Summit Egmont Palace,
Brussels
on a EU – South Korea FTA took off on October 15, 2009.
Two-way trade between the EU and South Korea was
worth approximately 62 billion EUR in 2009, and South EU and ACP countries in 2000, replace the non-reciprocal
Korea is the EU’s 8th most important trading partner. preferential trade agreements which were in place
between the EU and ACP countries up to 2008.
A second point of discussion was the question how a new Negotiations on the establishment of comprehensive
momentum could be given to the process of establishing EPAs have been difficult as they require ACP countries to
Economic Partnership Agreements (EPAs) with African, open their markets to EU exports as well. Out of eight
Carribean and Pacific (ACP) countries. EPAs, a key ele- EPAs, currently only six have been signed, and of those
ment of the Cotonou Agreement which was signed by the six only one is finalized (with CARIFORUM, i.e. a number

BrusselsCalling - 4 -

of small Carribean states). Together with the European Commission, mini-
sters therefore reflected on ways to accelerate the process.
Third, the Council asked European Commissioner for Trade Karel De Gucht
to prepare a scheme to grant trade preferences to Pakistan following the
floods which hit the country last month. The scheme, meant to help the
economic recovery of Pakistan on medium term and complementing short-
term humanitarian aid, was endorsed by the European Council on Septem-
ber 16. The arrangement, which would mainly benefit Pakistani textile
products and could be worth up to 230 million EUR, would require a wai-
ver from the World Trade Organiza-
tion (WTO). However, such a waiver is
expected to be challenged by China
and India that might claim similar trade
concessions under the WTO’s most-
favoured-nation (MFN) principle.
Fourth, Karel De Gucht addressed the
Council on the creation of a European
international investment policy, and
ministers held an exchange of views on
the matter. The Lisbon Treaty grants the
EU exclusive competence in the field of foreign direct investment (FDI). On
July 7, the European Commission issued a communication on the topic. It
then also launched a proposal for a regulation establishing transitional
arrangements for bilateral investment agreements between member states
and third countries. The Commission’s communication addressed matters
like the definition of FDI, selection criteria for prospective partners, stan-
dards for future investment agreements and dispute settlement.
Fifth, ministers decided to start FTA negotiations with Malaysia and start
discussions with China on the protection of so-called geographic indica-
tions (GIs, i.e. a type of intellectual property relating to products from a
region in a particular country – e.g. Parma ham, Roquefort cheese).
Over the last couple of weeks, Trade Commissioner De Gucht travelled
around the world to visit other important trade partners of the EU. At the
end of August, he attended the Economic Ministers Meeting of ASEAN
(Association of Southeast Asian Nations) where he announced together with
his Asian counterparts that an EU-ASEAN Summit, meant to raise aware-
ness about business and investment opportunities in the two regions,
would be held in 2011. In the past, the EU has been trying to conclude an
FTA with ASEAN, but when those negotiations were put on hold in 2009, it
switched to parallel bilateral strategies. Commissioner De Gucht also trav-
elled to Brazil and Argentina on September 13-16 to explore with his South-
American colleagues how ongoing negotiations for an FTA between the EU
and MERCOSUR could be advanced. These negotiations with the Latin-
American trade bloc, which currently includes Brazil, Argentina, Paraguay
and Uruguay, have been suspended since October 2004, but have recently
been relaunched at the Latin America & Carribean Summit in Madrid in May
2010. A first negotiating round took place in Buenos Aires in June 2010 and
the next one will be held in Brussels in October 2010. (For further details,
please refer to the second issue of the ‘Brussels calling’ newsletter.)
On September 11, the Foreign Affairs Council started with a working
breakfast together with the four candidate member states Turkey, the
In the spotlight
European Commission President
Barroso gives first ‘State of the
Union’ at European Parliament
On September 7, European Commission
President José Manuel Barroso delivered the
first ‘State of the Union’ address during a
plenary session of the European Parliament
in Strasbourg. He looked back on the way
the EU handled the economic and financial
crisis over the last year and concluded that
thanks to determined action and the
upcoming reforms in the fields of economic
governance and financial supervision, the
EU’s economic outlook looks better today
than one year ago. The President then set
out the Commission’s working programme
for the coming 12 months. Main challenges
for the Union according to J. M. Barroso
include:
• dealing with the economic crisis and gov-
ernance;
• restoring growth for jobs by implementing
the Europe 2020 strategy;
• building an area of freedom, justice and
security;
• starting negotiations on a modern EU
budget;
• pulling the EU’s weight in the world.
The Commission’s President said that the
monetary union now needs to be matched
by an economic union, and that he wants to
have a reformed financial sector in place by
the end of 2011 (several legislative initiatives
are still in the pipeline). Regarding competi-
tiveness, he stated that stimulating innova-
tion (including a breakthrough in the EU
patent dossier) and the cutting of red tape
will be a top priority. Also remarkable were
his intention to create 3 million ‘green jobs’
by 2020 and his proposal to issue EU pro-
ject bonds to finance large infrastructure
projects, needed particularly in the sphere
of energy. “This is Europe’s moment of
truth,” J. M. Barroso said. “We either swim
together, or sink separately.”
BrusselsCalling - 5 -
Former Yugoslav Republic (FYR) of Macedonia, Croatia and
Iceland. Under the presidency of Catherine Ashton, EU Fo-
reign Ministers discussed the renewed Middle East peace
talks and the European External Action Service (EEAS)
which was formally established last month and for which
recruiting is now ongoing. The first appointments for top
EEAS positions were made public on September 15. High
Representative Ashton briefed the Council of her recent
trip to China and stressed the importance of strong bilate-
ral relationships with the country. In a letter of September
3, she called upon EU Foreign Affairs Ministers to adopt
more coherent positions towards China. Current bilateral
issues between the EU and China include China’s refusal to
participate in new economic sanctions against Iran, and the
General Affairs
General Affairs Council (September 13,
2010)
On September 13, the General Affairs Council convened
under the presidency of Steven Vanackere, Belgian Mi-
nister of Foreign Affairs and Institutional Reforms. EU
Foreign Affairs Minis-
ters were charged with
the preparation of the
work of the European
Council which took
place on September
16 (see article ‘Euro-
pean Summit’ in this
newsletter), and it took
note of the draft annotated agenda for the European
Council of October 28-29. The latter European Council is
expected to have four main points on the agenda:
• the discussion of the final report of the Task Force on
economic governance (chaired by European Council
President Herman Van Rompuy), as well as the state of
play in financial services regulation and the introduction
of levies and taxes on financial institutions;
• the preparation of the EU’s position for the G20 Summit
in Seoul (South Korea) on November 11-12;
• the preparation of the United Nations Climate Change
Conference in Cancún (Mexico) from November 29 until
December 10;
• the definition of the EU’s core political messages in view
of the bilateral Summit with the United States sched-
uled for November 20.
The General Affairs Council continued its meeting with
the adoption of, among other things, a regulation on the
creation of a European rail network of international
freight corridors. In addition, several amendments to the
EU’s general budget for 2010 were approved. One of
arms embargo which European countries imposed on
China after the 1989 Tiananmen bloodbath.
Turkey, a candidate for EU membership since 2005, was
discussed as an emerging strategic partner, given its
growing influence in the world. Ministers exchanged views
on how the EU could cooperate more effectively with
Turkey in the field of its Common Foreign and Security
Policy (CFSP). Turkey’s Foreign Minister Ahmet Davutoglu
however stressed at the meeting that “Turkey would never
accept any alternative to the accession process”. More
news about EU-Turkey relations can be found in the
‘General Affairs’ article in this newsletter. 
these adjustments enables the EU to foresee financial
resources for the recently established European External
Action Service (EEAS). Furthermore, a political agreement
was reached on a draft regulation updating EU rules on
textile labelling. The Council’s position on this draft leg-
islation will now be forwarded to the European Parliament
for a second reading. Then the Council also adopted its
first-reading position on a draft directive on patients’
rights in cross-border healthcare. The position first of all
clarifies to what extent patients receiving healthcare in
another member state can be reimbursed for the services.
It also stipulates that member states may limit reimburse-
ment of cross-border healthcare in case of overriding rea-
sons of general interest (e.g. the undermining of the
financial balance of a social security system). The Coun-
cil’s position on the matter will now be forwarded to the
European Parliament for a second reading.
Recent events in Kosovo-Serbia relations were also
briefly discussed. After a ruling at Serbia’s request of the
International Court of Justice (ICJ) in The Hague which
stated that international law was not violated by Kosovo’s
secession from Serbia in February 2008, Serbia decided
BrusselsCalling - 6 -
to take the matter to the United Nations (UN). On Sep-
tember 9, the EU and Serbia passed a compromise reso-
lution during the UN General Assembly, after Serbian
President Boris Tadic agreed to drop a condemnation of
Kosovo’s declaration of independence from the resolu-
tion. Although President Tadic stressed that the resolu-
tion in no way implied Serbian recognition of Kosovo’s
independence, the text opens new
avenues for reconciliation between Serbia
and Kosovo, with the EU playing the role
of mediator in view of a European future
for both nations. Currently 22 out of 27 EU
member states recognize Kosovo as an
independent state. Spain, Romania,
Greece, Slovakia and Cyprus have not rec-
ognized Kosovo until now.
In response to this positive signal from Serbia, EU
Foreign Affairs Ministers agreed that Serbia’s applica-
tion for EU membership should be pushed forward. In
name of the Council, Belgian Minister Steven Vanackere
said that at the General Affairs Council of October 25, he
would ask his European homologues to forward Serbia’s
application for EU membership to the European
Commission, which would then have a mandate to start
assessing the country’s readiness to start EU accession
negotiations. Serbia applied for EU membership in
December 2009. However, several EU member states are
still opposed to pursue Serbia’s membership application
due to insufficient efforts of Serbia to arrest war criminal
Ratko Mladic.
Regarding Turkey, the Council took note of the positive
outcome of the Turkish constitutional reform referen-
dum which took place on September 12. According to
Turkish Prime Minister Recep Tayyip Erdogan, “the
reforms are simply what
is required to meet EU
membership criteria”.
In name of the Council,
Belgian Foreign Affairs
Minister Steven
Vanackere welcomed
the outcome of the
referendum and urged
the Turkish authorities
to now get on with the implementation of the new con-
stitution’s provisions. European Parliament President
Jerzy Buzek and European Commissioner for Enlarge-
ment Štefan Füle conveyed a similar message and asked
for further and deeper reforms. At the end of the year,
the European Commission will publish the latest pro-
gress report on Turkey’s accession process. Turkey
obtained the status of candidate EU member state in
2005, but the pace of negotiations has been very slow.
Despite the EU’s commitment, France and Germany
among other member states are known to oppose full
Turkish membership. 

Transport In the spotlight

Herman Van Rompuy at FEB
Informal Transport, Telecommunications and Energy (TTE)
Council (September 15-16, 2010) On September 7, the Federation of Enterpri-
ses in Belgium (FEB) organized at its premises
On September 15-16, an informal Transport Council was held. EU Transport in Brussels a lunch debate with guest speak-
Ministers exchanged views on the integration of waterborne transport into er Herman Van Rompuy, President of the
the EU transport and logistics chain. Location of the two-day political European Council. Before an audience of
meeting was the city of Antwerp, hosting one of the largest ports in Europe more than 100 participants, he reflected on
and even worldwide. The opening address on September 15 was given by
Belgian State Secretary for Mobility Etienne Schouppe in the presence of
Siim Kallas, European Commissioner for Transport.

Sustainable economic growth relies on sustainable mobility and efficient

intra-EU transport and logistics networks. The Belgian Presidency is con-
vinced that co-modality (i.e. the combination of several transport modes in
an optimal way) is a key principle in this field. However, the opportunities
offered by some transport modes, such as intra-EU short sea shipping (SSS)
and inland waterway transport (IWT), which are characterized by a huge the economic and financial crisis of the last
amount of unused transport capacity, have not yet been fully exploited. One year and stated that in the field of crisis ma-
of the reasons for this is the absence of a level playing field between differ- nagement, EU leaders delivered on what they
ent transport modes. More specifically, the impediments to the full integra- had to do. H. Van Rompuy elaborated on the
tion of SSS and IWT into EU transport and logistical chains need to be pending reinforcement of the Stability and
Growth Pact (SGP) and the establishment of
removed. Ministers thus discussed which EU policy measures could con-
the European Financial Stability Fund (EFSF)
 created following the Greek debt crisis. The
tribute towards enhancing the competitiveness of EU waterborne trans- President stated that softening the SGP in
port compared to other transport modes. 2005 had been a mistake and that strong
economic growth up to 2008 had served as a
During a first session on September 16, the topic of a ‘blue belt’ for compet- “sleeping pill” for policymakers. Furthermore,
itive waterborne transport in the internal market figured on the agenda. The during the economic boom before the start of
blue belt is defined as the sea area surrounding the EU complemented by the crisis, expansionary macroeconomic poli-
inland waterways which should enable waterborne transport without barriers. cies had been implemented in a discretionary
The streamlining and integration of maritime transport according to the manner, while unhealthy imbalances in mem-
blue belt concept requires integrated maritime transport surveillance tools ber states’ balances of payments and in com-
petitiveness continued to grow. Concerning
and the development of technological e-maritime services and applications,
current budgetary problems, H. Van Rompuy
based on electronic data on ships, cargo, routes, crew, passengers and other
noted that many governments are taking bold
aspects of water-based transport.
and difficult decisions to address them, as
major challenges like ageing and declining
A second session, chaired by Flemish Mobility Minister Hilde Crevits, dealt
competitiveness remain. He concluded: “The
with the role of ports in the full integration of waterborne transport in logis-
EU can play a steering, coordinating and
tical chains. Ports play an interface function as they link transcontinental
even coercive role, but at the end of the day
transport with inland regions on the one hand, and connect waterborne it is up to the member states to take and
transport with landborne transport modes such as road or rail haulage on the implement the necessary decisions.”
other hand. Therefore ports are essential to the seamless integration of
waterborne transport in European distribu-
tion chains. EU Transport Ministers discussed
the integration of SSS into land-based transport networks. More specifically, they
exchanged views on the idea of uniform intra-EU cross-modal transport documentation and a
single multimodal liability regime, and on which measures could strengthen ports as nodal
points and enhance further integration of SSS with land-based transport modes. Such initia-
tives would ensure the rapid transit of goods.

The adoption of a reviewed ‘Eurovignette’ directive would be an important step towards

creating a level playing field between waterborne transport and landborne transport modes,
such as road transport. However, the proposal for a review of the ‘Eurovignette’ directive,
one of the priority dossiers of the Belgian Presidency, was not discussed during the informal
Transport Council in Antwerp. The Eurovignette directive (adopted in 1999 and amended in 2006) harmonized levy systems
applicable to heavy goods vehicles (> 3,5 tonnes) across the EU in order to pay for the costs relating to the construction,
maintenance and operation of road infrastructures. In July 2008, the European Commission proposed a new amending
directive which would among other things allow member states to internalize external costs related to pollution and con-
gestion as well, following common rules. This proposal is now still on the negotiating table. Currently, the most important
obstacles to an agreement are the question which external costs the new Eurovignette directive would exactly cover (with con-
gestion costs as the most contentious element), the allocation of revenues (to the sustainable development of transport or to
central budgets), and the geographical coverage of the new directive (all European highways or only trans-European trans-
port networks). At the beginning of the Belgian Presidency in July, an exchange of views was held on the directive proposal
which showed that member states were highly divided over the issue. Discussions were now resumed on September 10
and lasted until September 13. It is unlikely that the Council will reach a common position during the Transport Council of
October 15. Instead, the Belgian Presidency is expected to come with a progress report on the matter. The dossier will figure
on the agenda of the Transport Council of December 2-3. 

European Summit

Informal European Council (September 16, 2010)
On September 16, an informal meeting of the European
Council was organized in Brussels. Two main topics were on
the agenda: first of all, the EU’s relations with its strategic
partners (notably the emerging powers in Southeast Asia),
and secondly, an oral report by European Council President
Herman Van Rompuy on the progress of the Task Force on
economic governance he chairs. The Summit was some-
what overshadowed by the current row between France and
the European Commission concerning the expulsion of
Roma by the French authorities.

BrusselsCalling - 8 -
After a meeting with European Parliament President Jerzy
Buzek, EU Heads of State or Government, accompanied
by their Ministers of Foreign Affairs, held an exchange of
views on how to give a new momentum to the EU’s
external relations with its strategic partners. Currently,
the EU has nine strategic partners: the
United States, Canada, Japan, Brazil,
Russia, India, China, South Africa and
Mexico. However, a coordinated Eu-
ropean foreign policy strategy is often
still lacking. Herman Van Rompuy stat-
ed that with its weight of 500 million
people and 22% of world GDP, the EU
is punching below its weight. In a
world that is changing fast, common
challenges need to be jointly addres-
sed by EU member states in an effec-
tive and coordinated way. President
Herman Van Rompuy made it clear that
he wants the European Council to play
a major role in this field, in terms of providing guidance
and defining the EU’s strategic objectives and interests.
The new European External Action Service (EEAS),
created by the Lisbon Treaty, will play an important in-
strumental role in this respect. Herman Van Rompuy made
it clear he saw the European Council of September 16
as the beginning of a process in which foreign policy
would increasingly be present on the European Council’s
agenda in the future. Future EU external relations should
be based on the principle of reciprocity, i.e. mutual
interests.
EU leaders held a discussion about the many upcoming
international meetings: the Asia-Europe meeting (ASEM)
on October 5-6, the EU-China Summit on October 6, the
G20 Summit in Seoul (South Korea) on November 11-12,
the EU-US Summit on November 20, the United Nations
Climate Change Conference in
Cancún (Mexico) from Novem-
ber 29 until December 10, and
an EU-India Summit at the end
of the year. They provided input
and strategic guidance on the
common positions the EU
should take during these events.
A debate was held on measures
to improve the effectiveness of
EU external actions, inter alia in
terms of planning, preparation
and output of international summits and summits with
partner countries. Regarding the G20 Summit in Seoul,
the European Council will continue to stress the impor-
tance of maintaining strong momentum in the area of
financial reform, and send a clear signal on the need to
conclude the Doha trade negotiations in the framework of
the World Trade Organization (WTO). In addition, the
French President Nicolas Sarkozy outlined his ideas for the
2011 French Presidency of the G20.
Especially relations with the EU’s Asian strategic part-
ners received a lot of attention during the European Coun-
cil meeting. Catherine Ashton (High
Representative of the EU for Foreign
Affairs and Security Policy) reported on
her recent visit to Southeast Asia. With
regard to the upcoming EU-China Sum-
mit specifically, the European Council
decided to pursue strategic interests
such as the promotion of bilateral trade,
market access, investment conditions,
the protection of intellectual property
rights, the opening up of public procure-
ment markets, stronger discipline in the
field of export subsidies and the dialo-
gue on exchange rate policies.
At the occasion of the strategic partnership discussions at
the European Council, BUSINESSEUROPE issued a posi-
tion paper in which it calls for an economic dimension in
EU foreign policy to help European business operate and
invest abroad. This could, among other ways, be done by
setting up an economic division in the European External
Action Service (EEAS) which could provide foreign commer-
cial services in key embassies and cooperate closely with
business in the preparation of international summits and
conferences.
Over lunch, Herman Van Rompuy updated the EU Heads of
State or Government on the work done so far by the Task
Force on economic governance since its establishment in
March 2010. The Task Force made considerable progress
on a number of points. First, broad agreement now exists
to broaden macroeconomic surveillance by not only loo-
king at budget deficits as was
the case in the past, but also at
the wider macroeconomic pictu-
re. This will be done by a regular
assessment based on a score-
board with specific indicators
(e.g. with regard to a member
states’ competitiveness). When
indicators exceed their normal
parameters, an in-depth assess-
ment, as well as an ‘excessive
imbalance procedure’ might fol-
low. A second success is the agreement over the so-called
‘European semester’, an annual cycle of fiscal, structural
and macroeconomic policy coordination between member
states that should enable the detection of inconsistencies
and emerging imbalances. Despite this progress, a couple
of issues are still left on the negotiating table: first of all,
sanctions by which the Stability and Growth Pact (SGP)
BrusselsCalling - 9 -
could be strengthened in case of continued non-compli-
ance of a member state with the Pact’s rules, and second-
ly, the question whether the SGP’s public debt criterion
should already play a role in the preventive arm of the
SGP. The discussion on sanctions does not only deal with
the nature of the sanctions, but also with how they would
be triggered. With regard to debt, the Task Force is con-
sidering whether an excessive deficit procedure should
also be launched for a member state with a budgetary
deficit of less than 3% of gross domestic product (GDP)
but with a public debt level superior to 60% of GDP which
does not fall fast enough. The Task Force now still has
more than one month to settle the remaining issues: its
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
Pension conference
“Assuring adequate pensions & social benefits
for all European citizens” (September 6-8, 2010)
On September 6-8, the Belgian Presidency and the Belgian
Ministry of Social Security organized a conference titled
“Assuring adequate pensions & social benefits for all
European citizens” in Liège. On September 6, Belgian
Minister of Pensions Michel Daerden welcomed
all delegations. The next day, views were first of
all exchanged on the interim joint report on pen-
sions drafted by the Social Protection Commit-
tee (SPC) and the Working Group on Ageing
Populations and Sustainability (AWG) under
the European Policy Committee (EPC).
Subsequently, a panel debate was held with rep-
resentatives from BUSINESSEUROPE and ETUC
(European Trade Union Confederation). In the
afternoon, EU Ministers for Social Affairs and
Social Security shared insights on how their respective coun-
tries tried to assure the sustainability and adequacy of
pensions. The day was closed with a discussion on the
green paper on pensions published by the European
Commission in July 2010. On September 8, the topic of dis-
cussion was broadened to social protection systems in
general. Again a panel discussion between European social
partners and between EU ministers took place. The confer-
ence was concluded by Michel Daerden and by László
final report is expected to be presented during the
European Council of October 28-29.
EU Heads of State or Government also mandated ministers
to agree on a comprehensive package of short, medium
and longer term measures, including in the field of trade,
to support Pakistan’s recovery after the country was
severely hit by floods last month.
The next European Councils during the Belgian Presidency
will deal with economic governance and the further prepa-
ration of important international summits (October 28-29)
and research, development and innovation (December 16-
17). The first European Council of 2011 will be dedicated
to energy policy. 
Andor, European Commissioner for Employment, Social
Affairs and Inclusion.
Over the last decades, pension system reforms have
emerged as a key issue in most EU member states. The
phenomenon of ageing is the largest challenge in this field
and is the result of three evolutions: an increase in life
expectancy, a reduc-
tion of birth rates
and the labour mar-
ket exit of the ‘baby
boom’ generation.
Also labour markets
have evolved from
stable long-term
contract jobs to
more flexible jobs
and from mainly
male employment to higher participation levels of women.
On top of that came shifts in family structures and occa-
sional economic crises which made it difficult for most
governments to prepare financially for a higher share of
retirees in the overall population in the future.
Anticipating this evolution, the AWG was created in 1999
to assist the EPC in quantifying the long-term sustainability
of public finances and the economic consequences of age-
BrusselsCalling - 10 -
ing populations in the EU member states. Together with
the SPC it received a mandate in December 2009 to carry
out an analysis of pension systems in the EU, among
other matters to update the agenda for securing ade-
quate and sustainable pensions in the light of the eco-
nomic crisis. An interim version of the joint report was
discussed during a first session of the conference on
September 7. The final version of the joint report is
expected to be adopted in October 2010 and will most
likely be the subject of European Council conclusions in
December 2010 under the Belgian Presidency. In the
report, a holistic
approach to pen-
sion policy, com-
prising adequacy,
sustainability and
modernization, is
called for.
During another
session on Sep-
tember 7, the Com-
mission’s consul-
tation paper on the
future of pensions was debated. Next to the balance be-
tween pension sustainability and adequacy, the paper seeks
contributions on the balance between work and retire-
ment, the facilitation of a longer active life and removal of
obstacles in the field of pension rights for individuals wor-
king in different EU member states. To complement the
debates, Pension Ministers of several member states
presented their national pension systems to each other.
In his concluding remarks for the conference, European
Commissioner Andor first of all addressed the issue of
finding an optimum balance between pension sustai-
nability and adequacy. A sound definition of
pension adequacy is also still to be elaborated:
does the term only cover the prevention of
poverty or also the maintenance of a certain liv-
ing standard? Secondly, he stressed that social
protection is not only about providing replace-
ment income and preventing poverty, but also
concerns facilitating labour market transitions
and maintaining skills and employability. In this
sense, social security is intimately linked with
the concept of flexicurity. About European
social security models, the Commissioner stated
that we have to ask ourselves whether our sys-
tems still deliver on adequacy, and if certain promises can
no longer be fulfilled, whether individuals then have the
possibility to compensate via other means. New innova-
tive solutions need to be looked for. Finally, László Andor
admitted that the recent economic crisis had made the
European pension challenge ever the more difficult, espe-
cially with regard to public finances. In order to address
the issue, the Commissioner clearly expressed his prefe-
rence for higher employment rates over lower pension
benefits and higher contribution rates. He refuted the
rumour that the Commission wants to increase the pen-
sion age to 70 years and stressed that this is a matter to
be decided by EU member states themselves. Following
his July green paper, Commissioner Andor called upon
all stakeholders to actively contribute to the ongoing
consultation which lasts until November 15.
Also on the topic of pensions, only last month, nine EU
member states (i.e. Bulgaria, the Czech Republic,
Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and
Sweden) called upon the European Commission and the
European Council to take into account the financial bur-
den of pension system reforms in the calculation of
budgetary deficits under the Stability and Growth Pact
(SGP) to create a level playing field between countries
which already implemented reforms and those who did
not. Germany has already expressed its opposition against
such a weakening of the SGP which is currently being
reinforced. Countries that have taken pension system
reform measures are likely to see their budgetary situa-
tion aggravate on the short term, paradoxically increasing
their chances to be subjected to an excessive deficit pro-
cedure and all its consequences, whereas such reforms
would actually imply more sustainable public finances in
the long run.
Despite the limited powers of the EU in the field of pen-
sions (and social policy in general), the topic turns up
more and more frequently on the European agenda. On
October 29, the European Commission will organize a
high-level conference on its green paper on pensions.
Participants will include delegates from the European
Parliament and
Commission, as well as
of member states,
international organisa-
tions, social partners
(including BUSI-
NESSEUROPE), the
academic world and
civil society. On the
agenda will be the
added value of the EU
in the field of pensions
(e.g. with regard to the
cross-border portability of complementary pension rights)
and the link between pension systems on the one hand
and sound public finances and worker mobility on the
other hand. In addition, the year 2012 is likely to be the
European Year of Active Ageing. 
BrusselsCalling - 11 -
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

BrusselsCalling - 12 -