BUSINESSEUROPE expects GDP growth in 2013 of 0.0% in the EU and -0.5% in the Euro Area, in line with our spring forecast. Growth is expected to pick up through 2014, when GDP is expected to grow by +1.4% in the EU and 1.1% in the Euro Area.
PwC’s 17th Annual Global CEO Survey and 3rd Hungary CEO Survey: how do the CEOs of Hungary’s leading companies see the future trends of the global economy and the international and the local business climate? Where do they anticipate business opportunities or potential threats? In which areas do they think substantial improvement is needed in order to achieve growth? How are they adapting to the new volatile business environment, and how are they changing the way they manage their companies? These are the key questions we seek to answer through our survey.
On 29 October, Alexandre Affre, Industrial Affairs Director participated in a European Policy Centre meeting on « The Warsaw climate change conference – Time to move into high gear”. BUSINESSEUROPE advocates for the conclusion of a comprehensive international climate agreement in 2015 committing all major economies. Mr Affre stressed that to make it happen COP19 will have to achieve several steps providing clarity on scope and the legal form, but also reducing competitiveness concerns. Speaking about the EU’s role towards this 2015 agreement, he underlined that it should set a binding emission reduction target for 2030 under any scenario in Paris, but take a final decision and legislate on the level of ambition according to the outcome of the international negotiations. (BUSINESSEUROPE Headlines)
On 28 October, at a meeting of the “SMEs, Liberal Professions and Crafts” Category of the European Economic and Social Committee Daniel Cloquet, BUSINESSEUROPE’s Director of Entrepreneurship and SMEs welcomed the political agreement reached at the October European Summit on the launch of a new SME Finance Initiative. BUSINESSEUROPE has taken numerous actions to facilitate agreement on this new financial instrument and to clarify what design criteria it should meet. The new instrument will blend resources of the Structural Funds with the lending capacity of the EIB. Initially it will deploy a loan guarantee instrument with opening the door for the later development of an instrument for the securitization of SME loans. BUSINESSEUROPE calls for a sufficient number of Member States to participate in the instrument (on a voluntary basis), in order to generate a high impact on new SME lending. (BUSINESSEUROPE Headlines)
They exchanged views on a variety of topics, including progress in the Trans-Pacific Partnership negotiations and other trade talks being conducted by the EU and the US, the incoming 9th World Trade Organisation ministerial conference in December in Bali and BUSINESSEUROPE – US Chamber cooperation in the B20 framework.
On 24 October, Markus J. Beyrer led the employers’ delegation at the Tripartite Social Summit, held in Brussels. He called on the European Council to engage in consistent actions to feed emerging growth with pro-competitiveness measures in order to win the battle for employment. This requires urgent and tangible results in three critical areas: 1. Completion of the banking union to enhance access to finance for companies; 2. Further necessary national reforms, notably labour market reforms, to boost employment; 3. Development of the single market, notably in telecommunications, to develop the digital economy and regain Europe’s lost leadership. Markus J. Beyrer highlighted the need to strengthen EU investment as suggested in the joint letter sent by the leaders of the four European social partner organisations to the Commission, European Council and the Lithuanian Presidency before the summit. (BUSINESSEUROPE Headlines)
While the debate remains challenging due to the very different approaches to industrial policy among member states, he confirmed that the goal for the February Council was to decisively push the agenda for a European Industrial Policy forward and called for early business involvement. Dr. Peter Köhler, Chair of IACO, welcomed this approach. He underlined the need to focus on entire cross-border value chains, including related services, and emphasized the importance of private business spending on R&D.
In a joint letter sent to Commissioner Karel De Gucht and US trade representative Michael Froman on 23 October BUSINESSEUROPE, the National Association of Manufacturers (NAM) and the Transatlantic Business Council (TABC) highlighted the importance of joint action against misappropriation of trade secrets for businesses on both sides of the Atlantic. The Transatlantic Trade and Investment Partnership (TTIP) negotiations offer an opportunity for both the EU and US to improve their respective legal frameworks and act together against misappropriations in third countries – the letter says. (BUSINESSEUROPE Headlines)
BUSINESSEUROPE Senior Adviser Erik Berggren spoke at a panel debate of the EU Committee of the British Chamber on cutting red tape in Europe. He stressed that legislative proposals to remove unnecessary burdens should lead to an actual reduction of burdens in practice without new burdens being added by the legislator. He also welcomed the report Cutting Red Tape in Europe which was presented at the event. (BUSINESSEUROPE Headlines)
BUSINESSEUROPE’s Economics Director James Watson emphasised that while businesses are showing tentative signs of growing confidence, boosted by improvements in financial stability, which are leading to the first signs of growth, much more needs to be done in order to boost investment and see a job-rich recovery in Europe. In particular, the long-term investment and access to finance needed to drive a job-rich recovery requires strong policy choices, including a swift agreement and implementation of the banking union, and progress competitiveness-oriented product and labour market reforms.
On 22 October Senior Adviser, Rebekah Smith, addressed the European Club of Human Resources on Corporate Social Responsibility (CSR). She highlighted BUSINESSEUROPE's disappointment with the step-change in the European Commission, away from a purely voluntary approach to CSR and towards a more regulatory approach. She emphasised that CSR policy should respect the principle that it is business-driven and allow flexibility for companies in finding the approach best fitting their situation, including their stakeholders. This is where shared value lies in CSR. She gave BUSINESSEUROPE's position on the commission's proposal on disclosure of non-financial information, highlighting the areas of highest concern, in particular the risk that companies would enter into a box-ticking exercise rather than providing material information was highlighted.(BUSINESSEUROPE Headlines)
Speaking at the EU labour law conference on 21 October in Brussels, Renate Hornung-Draus, Chair of BUSINESSEUROPE Social Affairs Committee underlined that Member States should look at their labour law frameworks and adapt them to the changing world of work. Avoiding excessive levels of protection for open-ended contracts as well as ensuring efficiency of judicial systems is of particular significance. European semester process provides a useful platform for coordination and mutual learning between Member States in this respect. Ms Hornung Draus also emphasised there is no need for consolidation of information and consultation of workers directives, and expressed regret that Member States were unable to achieve a reasonable agreement on posting of workers enforcement directive, thus making it difficult to adopt this directive during the mandate of the current European Parliament.(BUSINESSEUROPE Headlines)
He argued that both sides have a great interest in expanding their bilateral trade and investments. Today's economic links between the EU and Indonesia are underdeveloped compared to the size of both regions.
Following the vote on 21 October in the European Parliament on data protection BUSINESSEUROPE Director General Markus J. Beyrer said that with this vote European businesses risk to face more obstacles in embracing the potential of the data-driven economy and in contributing to the development of the digital single market. This might have a serious negative impact on innovation and growth. BUSINESSEUROPE regrets that the European Parliament has decided to take back its support for business in grasping the full potential of the digital economy. It is vital for Europe's industry to regain momentum in digital products and services and to close the gap with our international competitors. (BUSINESSEUROPE Headlines)
Companies report a positive correlation between a diverse workforce and performance, international presence, innovation levels, market positioning and reputation. This demonstrates well that there is a business case for diversity. The platform of exchange on national Diversity Charters organised by the European Commission at EU level can play a useful role in spreading good practices across Europe, however, the Charters work best when designed at national level and/or by the companies themselves.
On 16 October Senior Adviser Carsten Dannöhl discussed the business priorities for the ongoing Transatlantic Trade and Investment Partnership negotiations with the EU chief negotiator and the employers' group in the European Economic and Social Committee. The focus was mainly on how to achieve regulatory coherence between the EU and the US as this would offer huge new business opportunities on both sides of the Atlantic, in particular for SMEs. Other key issues of the debate were elimination of tariffs, facilitation of investment and the opening up of public procurement markets. (BUSINESSEUROPE Headlines)
Speaking at the launch Commissioner Máire Geoghegan-Quinn welcomed the timely launch of the manifesto and stated that 2014 is “crunch time” for ERA. Alexandre Affre, Director of Industrial Affairs at BUSINESSEUROPE, participated in the launch alongside the European Research Council, ScienceEurope, European University Association and other stakeholders. BUSINESSEUROPE broadly welcomed the initiative and supports the ambition of completing ERA by 2014. However, there should be a cautious approach to certain actions under the manifesto including the full implementation of the Charter for Researchers and the development of a legal framework for ERA.
In a wide-ranging exchange of views Mrs Bowles discussed progress on the supervisory mechanism currently being finalized by the Council, the Commission and the European Parliament, as well as on bank resolution, the forthcoming asset quality review of Europe’s largest banks, bank recapitalization, the European semester and the proposed financial transaction tax. Members reiterated the importance of making strong progress on the banking union in order to strengthen access to finance and increase confidence in public finances. While it is important to improve financial integration in the EU, including by retaining access to the single market for all 27 EU members, regulation must strike the right balance between increasing financial stability and ensuring firms are able to access finance on reasonable terms.
In his opening speech, Markus J. Beyrer, Director General of BUSINESSEUROPE, stressed the need for an extensive pro-industry framework, which is adequately translated to the regional level. During the following panel discussion Daniel Calleja-Crespo, Director General of DG Enterprise and Industry, Christian Helmenstein, Chief Economist of the Federation of Austrian Industries IV and Ivica Mudrinic, President of the Croatian Employer’s Association HUP addressed various aspects of regions’ contribution to further facilitating industrial competitiveness in Europe. Special emphasis was laid on the Cohesion Policy 2014-2020, regional clusters and access to finance.
Today, EU exports to the US in the machinery sector - mainly comprised of small firms - face non-tariff barriers that increase costs by an estimated 46%. A strong regulatory chapter of TTIP would be a genuine achievement for business. This would significantly reduce regulatory compliance burdens for small firms and improve the time to market for new products. This is why BUSINESSEUROPE calls for an ambitious chapter on regulatory convergence in TTIP, both at horizontal and at sectoral level.
This is a debate that goes beyond the telecoms sector and it is crucial to evaluate the impact of the proposals on the entire economy. BUSINESSEUROPE appreciates the Commission’s effort in creating a pan-European market for telecoms. It is essential to put in place the right framework to stimulate investments in infrastructure. The EU must also ensure a coherent approach to innovation, ICT and industrial policy that allows these elements reinforce each other.
On 8 October, BUSINESSEUROPE’s Director General Markus J. Beyrer sent a letter on the 4th Railway Package to the European Parliament’s Transport and Tourism (TRAN) Committee, ahead of their consideration of amendments on 14 October. BUSINESSEUROPE has welcomed the package as it can improve quality and reduce costs of railway services in Europe. It is now key to ensure that the main elements of the package - namely to further open up passenger rail transport to competition, make approval procedures more efficient and improve the interoperability of national networks - are retained during the discussions. Improving rail transport throughout Europe also requires increased and continuous investments in infrastructure. Therefore it is fundamental to finalise the deal reached on the Connecting Europe Facility. (BUSINESSEUROPE Headlines)
On 7 October, BUSINESSEUROPE sent a letter to EU Commission Vice-President Almunia and other Commissioners ahead of the College orientation debate on the revision of the environment and aid guidelines. The letter stressed a number of critical points to ensure that European industry maintains its competitiveness, while minimising distortions within the Union. It is crucial to increase overall efficiency in renewable energies’ promotion through streamlining and greater coordination of national support schemes. In addition, the guidelines should permit measures that fully offset the cost impacts of decarbonisation policies on energy-intensive sectors, as well as reduction and exemption schemes currently compliant with the Energy Tax Directive. (BUSINESSEUROPE Headlines)
On 7 October, BUSINESSEUROPE Director General Markus J. Beyrer delivered a speech at the conference “A new era for EU-US trade”, organised by the Confederation of Danish Industry in Copenhagen. Mr Beyrer stressed that the US is not only Europe’s largest trading partner, but also a like-minded partner with which we share ideals and values. This gives an excellent basis for an ambitious outcome of the negotiations. The TTIP has a crucial role to play in promoting transatlantic investments further. According to recent studies, by reducing non-tariff barriers to investments alone, there would be a 10.9 % increase in employment of EU workers by US firms and in the long term, a deep liberalisation could lead to 1.300.000 new jobs in the EU. (BUSINESSEUROPE Headlines)
The meeting offered an opportunity to share ideas on different areas including regulatory cooperation, public procurement and data flows in the digital economy. The high level of participation was a clear indicator of the engagement of the business communities on the two sides of the Atlantic to maximise the potential benefits of the TTIP for our economies.
On 3 October, BUSINESSEUROPE participated the Lithuanian Presidency's Conference on Consumer Redress held in Vilnius. BUSINESSEUROPE highlighted the role of out-of-court means of redress for the further completion of the Internal Market. The implementation of the recent Alternative Dispute Resolution package will facilitate dispute resolution in the internal market whilst boosting business and consumer trust in engaging across borders. (BUSINESSEUROPE Headlines)
On 3 October, BUSINESSEUROPE issued a statement addressed to the upcoming October European Council’s discussion on digital economy and innovation. Technology today is crucial not only for digital industries, but also for traditional parts of the economy. Industry is witnessing a massive change as a result of using ICT. In this perspective, it is essential that the European Council gives directions for a flexible approach that stimulates innovation. In particular, an appropriate data protection framework is needed to provide companies with workable solutions for personal data transfers, while at the same time providing safeguards to enhance consumers’ trust. (BUSINESSEUROPE Headlines)
The conference discussed how to achieve better implementation of EU environmental law. Speaking at the opening roundtable Giuseppe Montesano stressed the importance of ensuring that environmental legislation is correctly and fully applied before modifying it. He also stressed the need of moving form a tradition of “policy-making stakeholder groups” to a new culture of “stakeholder networks”.
On 2 October, Markus J. Beyrer, BUSINESSEUROPE Director General, spoke at the Informal COP19 Pre-Sessional High-Level Consultations organised by the Polish Ministry for Environment together with our Polish member Lewiatan. He stressed the need for a rapid conclusion of a comprehensive international climate change agreement in 2015, committing all major economies to the reduction of greenhouse gas emissions. Mr Beyrer underlined that international climate negotiations must lead to fair burden sharing in climate protection efforts to avoid distorting the international competitiveness between companies and nations. (BUSINESSEUROPE Headlines)
Representatives to the WTO from the EU and the US, WTO representatives, academia and the business community had the opportunity to examine the contribution of global value chains to trade, growth and development, sought trade policy solutions that could increase productivity and diffusion of innovation. Panelists also discussed how a Trade Facilitation Agreement, which may be adopted at the WTO 9th Ministerial Conference in Bali in December, could especially help developing countries better participate in and grasp the benefits of global value chains.
On 1 October, BUSINESSEUROPE’s Director General Markus J. Beyrer sent a letter to the European Parliament’s Internal Market Committee (IMCO), outlining the views of business on the product safety and market surveillance package in view of the IMCO vote scheduled to take place on 17 October. After having initially welcomed the Package’s intention to simplify the current legal framework on product safety, BUSINESSEUROPE is disappointed to see that many of the amendments being discussed by the European Parliament would risk complicating the legislation and weaken the competitiveness of European business and industry. (BUSINESSEUROPE Headlines)
On 1 October, Markus J. Beyrer, Director General of BUSINESSEUROPE spoke at the conference organised by the Confederation of Norwegian Enterprise (NHO). He called for a revised approach to energy and climate change policy. This is urgently required and key to ensure competitiveness and growth. BUSINESSEUROPE has long argued that climate targets must be balanced with cost concerns and security of supply to facilitate an increase in industrial output. Beyrer underlined that industry strongly supports global efforts to reduce emissions and that the EU should set a binding 2030 target. However, the target should be aligned with the competitive needs of industry. (BUSINESSEUROPE Headlines)
On 25-27 September, BUSINESSEUROPE’s Director General and the Directors for Industrial Policy and Social Affairs attended the European Forum for New Ideas, organised in Sopot by our Polish member federation Lewiatan. “The coming year will be decisive for Europe. We must improve industrial competitiveness and this means improving access to finance, to energy and raw materials at competitive prices, flexible labour markets and availability of skills. Scaling up our markets is also crucial and the transatlantic trade negotiations are of strategic importance” - said Markus J. Beyrer. (BUSINESSEUROPE Headlines)
On 27 September, Emma Marcegaglia, BUSINESSEUROPE President and Director General Markus J. Beyrer wrote to José Manuel Barroso raising industry concerns about a recent decision by the European Commission on the cross-sectoral correction factor (C-factor) in the EU ETS Directive. The cumulative effect of policies around the pre-2020 EU Emission Trading Scheme that include this decision, the potential impacts of proposals on 'backloading' and 'structural measures' as well as revisiting the list of sectors deemed at high carbon-leakage list seem to ignore global competitive pressures on the industries impacted by the C-factor. This weakens the perspectives for an EU economic recovery and undermines long-term investment security. (BUSINESSEUROPE Headlines)
On 26 September, Markus J. Beyrer, Director General of BUSINESSEUROPE, addressed the EU Competitiveness Council and called for a revised approach to energy and climate change policy. This is urgently required and critical to ensure competitiveness and growth. BUSINESSEUROPE has long argued that climate targets must be balanced with cost concerns and security of supply to facilitate an increase in industrial output. Beyrer underlined the fact that industry strongly supports global efforts to reduce emissions and that the EU should set a binding 2030 target. However, the target should be aligned with the competitive needs of industry. (BUSINESSEUROPE Headlines)
Director General Markus J. Beyrer is invited to present BUSINESSEUROPE’s vision of EU energy and climate policies to the Competitiveness Council on 26 September. In a letter addressed to the Lithuanian Minister of Economy ahead of this meeting, BUSINESSEUROPE emphasised the need to transform EU energy and climate policies into real growth drivers for industry. BUSINESSEUROPE identified seven concrete solutions to improve energy and climate policies and establish the right framework for 2030. They must be implemented but this, alone, will not be sufficient. “Industrial competitiveness also depends on the availability of funds, energy and raw material and a skilled workforce at affordable prices, on the existence of a strong EU network of SMEs both in manufacturing and services activities, and on progress in developing the digital economy. Selling the goods produced also requires access to external markets as well as a vibrant single market” said Markus J. Bey rer. (BUSINESSEUROPE Headlines)
He asked for clarifications regarding technical points that will influence the impact of the scheme. The scheme should operate on the basis of voluntary participation by interested Member States. It could mobilize up to €10 billion of Structural Funds money and significant resources from the EIB and EIF with a high effect of leverage.
The presentation of Jean-Marc Peterschmitt held at the International Business Forum of BUSINESSHUNGARY.
Many projects have been realised, also with the help of the EU and the European Bank for Reconstruction and Development. Senior Adviser Christian Feustel delivered a keynote speech at the event to explain the upcoming challenges for the European Union, its member states and for BUSINESSEUROPE in the coming 18 months. He focussed on the highly political year 2014, its possible impact on states, companies and what it means for business federations.
This cooperation has brought about improvements on their procedures and practices to the benefit of companies. Participants at the Geneva meeting took stock of what has been achieved and discussed the way forward. Even though international patent cooperation has now expanded to China and Korea, the experience of this platform is a valuable basis to further build upon.
BUSINESSEUROPE’s tax experts welcomed the Council’s emphasis on extending automatic exchange of information between tax administration at EU and global levels to combat tax fraud and evasion, given the potential to increase tax transparency, reduce the costs and complexity of tax systems and encourage cross-border trade and investment.
The two sides exchanged views about the current conditions to do business both in Taiwan and the European Union, and discussed what kind of EU-Taiwan cooperation exists today. They agreed that the European Commission and the Government of Taiwan should assess the current state of play and explore possible future initiatives in order to further enhance bilateral trade and investments.
In a panel discussion on current challenges to social and labour relations he stressed the positive role social dialogue can play to modernise labour markets and the need to mobilise EU and national social dialogues to that end. Moreover, further efforts are needed in some countries in terms of implementation and follow-up of EU social dialogue instruments to ensure the credibility of the European social dialogue.
Filling the gaps in skills needed by SMEs was the core issue discussed by the Network of SME Envoys in Vienna on 18 September. On this occasion, Daniel Cloquet, Director of Entrepreneurship and SMEs stressed the need for initiating dual learning apprenticeships systems in the countries where they don't exist. A part of the European Social Fund should be allocated to providing seed funding to Member States that wish to set up and run such systems. (BUSINESSEUROPE Headlines)
They also discussed how a Free Trade Agreement works in practice, the role business associations play both during and after FTA negotiations, as well as the different challenges businesses face following the implementation of the Agreement. Finally, the “East-Invest II” project, which will bring together business organisations in Eastern Partnership (EaP) countries to promote trade opportunities through capacity building, was presented to the FEU delegation.
Mr Lobrano also stressed that only cases of clear antitrust violation should fall into the scope. In addition, the initiative must dissipate concerns that information provided in the context of leniency or settlements is used in damages actions, in order to avoid discouraging the use of these crucial public enforcement tools.
Remaining regulatory, administrative and technical barriers need to be removed and existing rules better implemented and enforced. In the next months, it is important to reach agreements on key proposals such as the 4th Railway Package and the Single European Sky 2+ that reflect these objectives. It is also fundamental to finalise the deal reached on the Connecting Europe Facility to ensure the continuous investments in infrastructure needed to maintain and improve Europe’s transport networks.
On 17 September, speaking at a workshop organized by the confederation of Italian industry Confindustria, BUSINESSEUROPE Adviser Bruno Pedrotti outlined the main policy recommendations for the 2030 energy and climate framework developed by BUSINESSEUROPE. In a debate involving companies, business associations and the European Commission, stakeholders exchanged views on how to ensure a workable policy framework adapted to the needs of different sectors. A broad support was found along three points: maintain the EU ETS as the cornerstone of the EU climate policy, support sectors at risk of carbon leakage beyond 2020 and invest in research and innovation to boost technology development. (BUSINESSEUROPE Headlines)
On 17 September, Annette Dragsdahl, from BUSINESSEUROPE’s Danish member federation DI, spoke at a working lunch on the product safety and market surveillance package, organised by the European Parliament’s ECR group and hosted by MEP Ashley Fox. After having initially welcomed the Package’s intention to simplify the current legal framework on product safety, BUSINESSEUROPE is concerned to see that many of the amendments (e.g. CE+ marking) being discussed by the IMCO Committee would risk complicating the legislation, adding unnecessary costs for companies, thereby weakening the competitiveness of European business. (BUSINESSEUROPE Headlines)
At a joint event on 17 September with EU Trade Commissioner Karel De Gucht, the EU Chamber of Commerce in China (EUCCC) presented its annual position paper on the situation of EU businesses in China. Speaking on that occasion, the Chairman of the BUSINESSEUROPE China network, Mario Vizzotto, called upon the EU and China to launch negotiations for a bilateral EU-China Investment Agreement at the next EU-China Summit. BUSINESSEUROPE strongly supports such an agreement, as it would provide legal certainty, clarify any limitations to foreign investors, facilitate joint ventures and provide important guarantees for investors against unjustified expropriations. (BUSINESSEUROPE Headlines)
BUSINESSEUROPE’s Economics Director, James Watson gave evidence on 13 September at the European Policy Centre’s (EPC) Industrial Policy Taskforce. He noted that whilst credit constraints and limited business confidence are both playing a role in constraining business investment at present, as the economy strengthens access to finance has the potential to becoming an increasing barrier to business growth, hence a need for urgent actions to address the situation. Mr Watson set out a 5 point strategy to improve long-term access to finance, including completing the banking union and making better use of EU funds to leverage SME lending. The EPC expect to submit their report ahead of the European Council meeting on Industrial Policy in February 2014. (BUSINESSEUROPE Headlines)
Participants from Denmark, Finland, Sweden and the United Kingdom discussed the state of play of the social dialogue in their respective countries, in the context of implementation of EU social dialogue instruments. A particular focus was put on initiating the follow-up process for the recent framework of actions on youth employment. Participants also discussed social partners’ involvement in renewed economic governance processes. The last seminar of the series will be in Budapest on 21-22 November.
In his meetings with US TTIP negotiator Daniel Mullaney, Acting Deputy Secretary of Commerce Patrick Gallagher, and Sharon Yuan from the Treasury Department, Mr Beyrer highlighted BUSINESSEUROPE’s commitment to an ambitious transatlantic agreement that would not only cut tariffs but would also cover public procurement, investments and services. The US administration showed a high level of engagement in the negotiations and a strong interest in input from industry especially on regulatory cooperation.
Mr. Beyrer will meet the US TTIP negotiator Daniel Mullaney; Deputy US Trade Representative Miriam Sapiro; Patrick Gallagher, Acting Deputy Secretary of Commerce and Lael Brainard, Under-Secretary for International Affairs at the Treasury Department. Mr. Beyrer will also have talks with Jose Vale de Almeida, EU Ambassador to the US; US Chamber of Commerce CEO and President Tom Donohue; the Director General of the Transatlantic Business Council Tim Bennett and James Quigley, the US Co-Chair of the Transatlantic Business Dialogue.
On 12 September, BUSINESSEUROPE spoke in the Conference on the Common European Sales Law (CESL) held in the European Law Academy (ERA) in Trier. It shared a panel with BEUC, the European Consumer Association, where it expressed business views on the current state of play of the Commission’s proposal. It highlighted, in particular, its opposition to the idea of converting CESL into a mixed harmonisation directive on consumer remedies and guarantees. This move would contradict the objective of fighting legal fragmentation. (BUSINESSEUROPE Headlines)
On 9 September, BUSINESSEUROPE and Eurochambres sent a letter urging MEPs to eliminate the most severe shortcomings in view of the EP plenary vote on the Environmental Impact Assessment (EIA) directive on Wednesday 11 September. In the revision of the EIA directive (Zanoni report), the European Commission’s first proposal and a number of amendments approved by EP’s ENVI Committee will lead to long and bureaucratic authorization procedures, although the revision of the directive should minimize regulatory burdens without undermining its environmental targets. As a result, investors could lose interest in Europe as a business location, causing a decline of infrastructure development and consequently a loss of competitiveness. (BUSINESSEUROPE Headlines)
BUSINESSEUROPE replied to the recent Commission consultation on the single-member limited liability company. BUSINESSEUROPE emphasises that a possible initiative could be positive provided sufficient empirical evidence is found that such harmonisation could help fight some of the hurdles impeding companies to move or expand their business across-borders. Also, the initiative should be clear, simple and not distinguish companies on the basis of size. (BUSINESSEUROPE Headlines)
On 4 September, BUSINESSEUROPE’s President Emma Marcegaglia took part in the Annual Conference of Heads of Delegation, EUSR and Chargés d’Affairs. She presented BUSINESSEUROPE’s vision for an EU economic diplomacy that should support the competitiveness of EU companies, especially via ambitious trade and investment agreements, and continue raising a strong voice against protectionism. The EU should devote more resources to facilitate economic partnerships with major trading partners and positive results – she said. Facilitation of local growth and development, creation of new business opportunities for EU companies could be achieved by further fine-tuning between trade, foreign and development policies, and by establishing contact points for business in EU’s Permanent Representations. (BUSINESSEUROPE Headlines)
BUSINESSEUROPE expressed its appreciation for the work done to restore the stability of the European economy, as well as the initial policy efforts to promote growth in Europe. However, European companies urgently need concrete actions to make growth a reality. President Marcegaglia argued that agreeing on a full Banking Union is part of the answer to improve access to finance for companies and is essential for growth as well as for the sustainability of public finances. Director General Beyrer for his part underlined the positive effect that the adoption of an industrial compact by the European Council would have for growth and job creation in all sectors, including services.
On 3 September, BUSINESSEUROPE published its views on the Commission’s proposal on cybersecurity, recognising the need of ensuring a high common level of network and information security across the Union. We share the Commission’s overall view of the importance of raising awareness about cybersecurity and taking action. However, BUSINESSEUROPE suggested that any burden stemming from the proposed legislation should be proportional to serious risks for network and information security, indicating that a specific definition of what should count as a relevant risk or incident is of great importance. (BUSINESSEUROPE Headlines)
In the presence of EU Trade Commissioner Karel De Gucht he explained that companies incorporate existing international instruments more and more – such as the OECD Due Diligence Guidance – in their management systems. He warned that binding legislation in the area of responsible sourcing from conflict-affected and high-risk areas would result in the opposite effect than the one initially intended – which is to effectively contribute in improving the conflict situation. There are better ways the EU, with the support of the private sector, could achieve this highly desirable result. Partnerships with resource-holders and a clear EU Raw Materials Diplomacy, using instruments from trade, development as well as foreign EU policies, are indispensable elements of addressing the problem in a global way.
Promoting smart regulation and launching a dynamic second phase of implementation of the Small Business Act (SBA) at both EU and national level are high on the agenda of the Lithuanian Presidency and the Commission. In that context, DG Enterprise launched a discussion paper in July to collect ideas for the future implementation of the SBA and for developing the EU SME policy. BUSINESSEUROPE contributed to this process with a position paper highlighting its priorities for the future SBA implementation and commenting on some ideas submitted by the Commission for possible new policy initiatives. (BUSINESSEUROPE Headlines)
A lively debate on the European Union growth agenda took place during the summer university of BUSINESSEUROPE’s French member federation MEDEF, organized near Paris on 29 August 2013. BUSINESSEUROPE President Emma Marcegaglia and Commissioner Barnier both saw fragile but positive signs of increased confidence in the European economy. Hence the importance of complementing the defensive anti-crisis agenda with pro-active pro-growth measures to have a sustained recovery. “Improving the competitiveness of European industry is key. We must stop regulating Europe to death or increase taxes and levies on companies. Public finances consolidation has to be accompanied by growth enhancing reforms ” said President Marcegaglia. (BUSINESSEUROPE Headlines)

In the coming months the European Commission will implement key elements of the legislative framework for the third phase of the EU Emission Trading Scheme as required by the ETS Directive. In particular, decisions on the revision of the carbon leakage list and the cross-sectoral correction factor will have significant impact on the functioning of the carbon market and the installations concerned. In a letter signed by Director General Markus J. Beyrer on 16 July, BUSINESSEUROPE calls on Commissioner Hedegaard to ensure that these decisions are taken in a transparent and timely way with full engagement of the stakeholders.(BUSINESSEUROPE Headlines)
BUSINESSEUROPE supports an ambitious Lithuanian Presidency trade agenda, and called for progress in (a) trade relations with strategic partners – in particular TTIP as well as launching bilateral investment negotiations with China; (b) relationship with the EU Eastern neighbours – both EU Neighbourhood and the Eastern Partnership Summit, but also the relationship with Russia, (c) multilateral trade policy – especially preparations for the 9th WTO Ministerial Conference in December, in Bali and (d) trade legislation – including the modernisation of the EU Trade defence system and the international procurement.
The event, entitled "Transatlantic partnership: driving jobs and growth", included sessions exploring the regulatory dimension of the Transatlantic Trade and Investment Partnership, measures towards a transatlantic market in chemicals and financial services, and cooperation in fields like healthcare, innovation and standards.

Answering to the Commission’s questionnaire to the expert group on the transposition of Directive 2008/104/EC on temporary agency work, BUSINESSEUROPE underlined that the review of restrictions and prohibitions in accordance with Article 4 of this directive has not delivered the expected results yet. Unjustified barriers to the use of agency work still exist in several countries, hindering the contribution of agency work to job creation and economic growth. While Directive 2008/104/EC does not need to be revised, the Commission should ensure proper transposition and implementation of Article 4, for example through Country Specific Recommendations and by launching infringement procedures where needed. (BUSINESSEUROPE Headlines)
In his address Markus J. Beyrer outlined BUSINESSEUROPE’s role in Brussels and focused on three main priorities: industrial policy and re-industrialisation of Europe, climate and energy policy , and the Transatlantic Trade and Investment Partnership (TTIP) between EU and US.

A BUSINESSEUROPE delegation of customs experts met with the cabinet of Commissioner ©emeta on 11 July to discuss ways how to improve the current customs regime. Special focus was given to areas of temporary storage, non-preferential rules of origin and trustworthy companies (Authorised Economic Operators).In all of the issues BUSINESSEUROPE urged the Commission to ensure that the new provisions will provide real facilitations and are apt for companies of all sizes. The business delegation also illustrated with a number of practical examples why the introduction of multiple filing, currently under discussion at political level, would not work in practice. (BUSINESSEUROPE Headlines)

The main topic of conversation among European social partners and representatives of the EPSCO Council troika’s informal meeting on 11 July in Vilnius was apprenticeships. Renate Hornung-Draus, Chair of BUSINESSEUROPE’s Social Affairs Committee said that high levels of youth unemployment are symptoms of badly functioning labour markets. National labour market and education reforms are needed to overcome this structural problem. In particular, education reforms should focus on the better alignment of education and training curricula with labour market needs. An important aspect of this is to improve the contribution of apprenticeships. BUSINESSEUROPE supports the recently launched EU alliance for apprenticeships. Its goal should be to reinforce dual learning elements of apprenticeships to create a business case and invest efforts in improving the image of apprenticeships in the society. (BUSINESSEUROPE Headlines)

On 11 July, BUSINESSEUROPE Director General Markus J. Beyrer met EU Commissioner for Climate Action Connie Hedegaard to discuss EU climate and energy policies for the period 2020-2030. Mr Beyrer argued that EU energy and climate polices must be revised to transform them into true industrial growth drivers. BUSINESSEUROPE supports a 2030 EU emission reduction. However, he made clear that the EU should not repeat the mistakes of the past but rather take a flexible approach to be able to take into account the outcome of the 2015 international negotiations when deciding on the most appropriate level of ambition for the EU target. (BUSINESSEUROPE Headlines)
President Marcegaglia also stressed the importance of restructuring public finances to help private sector investment to drive economic growth and ensure a swift agreement and implementation of the Banking Union.

“Improving access to finance is crucial to increase growth and reduce unemployment. To improve lending capacity of banks, we must agree and implement the Banking Union. A strengthened bank resolution framework is key to building confidence in our banking system as well as for the sustainability of our public finances, and in turn, restoring bank lending, company investment and growth. We will of course have to look at the proposals in detail, but in principle a single resolution mechanism is an important part of such a framework” - said BUSINESSEUROPE President Emma Marcegaglia. (BUSINESSEUROPE Headlines)
The meeting was an opportunity to discuss employers’ priorities for the Eurofound Work Programme 2014 as well as the upcoming reform of EU agencies. Mr Beyrer underlined the importance of maintaining strong social partners’ involvement in the governance of Eurofound and other tripartite EU agencies.

On 9 July, Social Affairs Director Maxime Cerutti participated in an exchange of views in the European Parliament Employment Committee on the framework of actions on youth employment. With this framework European social partners provide solutions to promote employment opportunities for youth and ease young people’s transitions into the labour market. To be effective, measures primarily need to address the structural reasons that have led to high levels of youth unemployment in many European countries for a long time. Designing effective work-based learning systems across Europe, executing labour market reforms notably to ensure reasonable labour costs, and promoting better entrepreneurial mindsets would help more young people to get access to and stay in the labour market. (BUSINESSEUROPE Headlines)
Clarity on the responsibilities of public and private actors should also be improved. The EU should build on ILO’s work in this field, which tries to take governments, private sector, employers and trade unions on board. Finally, the EU should not be afraid to apply its own rules. The updated GSP schemes offer stricter control mechanisms and the EU should investigate cases where criteria are not met and consider the suspension of non-compliant recipients.
ADR can also be successfully applied in the antitrust context, where the EU should ensure that public enforcement work in a way complementary with damages actions. The focus should be on cases following-on authorities’ decisions finding an infringement. Protecting the good functioning of the leniency programme is also crucial to strengthen public enforcement.
The transit status has been abused by traffickers to penetrate the EU market. France, Germany and Italy are already used as counterfeit transit hubs. This harmful practice must be clearly addressed in the trademark legislation for the benefit of legitimate businesses and consumers. Since the Commission proposal concerns counterfeit products only, legal commerce is not negatively affected.

On 5 July, BUSINESSEUROPE adopted its position paper on the Commission’s proposal for a directive amending the accounting directives on disclosure of non-financial and diversity information. This proposal would undermine the voluntary and business-driven nature of corporate social responsibility, which is central to its success. Therefore the Commission’s approach should be reconsidered – BUSINESSEUROPE says. European businesses aim to stabilise current EU legal requirements on disclosure of non-financial information, which correspond with companies’ diverse situations and needs. At the same time BUSINESSEUROPE highlights key messages aiming to improve the concrete content of the proposal. (BUSINESSEUROPE Headlines)

On 2 July, BUSINESSEUROPE Director General, Markus J. Beyrer sent a letter to MEPs expressing business community’s concerns in view of the Plenary vote on UCITS V (undertakings for collective investment in transferable securities). BUSINESSEUROPE was particularly concerned with the proposed cap to the ratio of fixed to variable pay of managers and its potential spillover effect on non-financial companies. We are pleased to learn that the European Parliament has rejected this option. (BUSINESSEUROPE Headlines)

On 2 July, in its response to the public consultation BUSINESSEUROPE highlighted that Carbon Capture and Storage (CCS), alongside with other low carbon technologies including renewables and energy efficiency, will play an increasingly important role to reduce the EU’s emissions over the next decades. European business therefore supports the European Commission’s work to assess the present economic and technical viability of this technology and to explore ways to promote it in the future. An in-depth study of the technical viability of CCS and an impact assessment of associated costs, including resulting energy prices for all industrial sectors concerned must be carried out before taking any decision on schemes to support the deployment of CCS. (BUSINESSEUROPE Headlines)
More information: http://europa.eu/rapid/press-release_IP-13-634_en.htm

In a letter sent to the Members of the European Parliament on 28 June, BUSINESSEUROPE strongly welcomed the political agreement reached on the Multiannual Financial Framework (MFF) 2014-2020 and called on the European Parliament to adopt the political resolution this week bringing discussions on the MFF a step closer to conclusion. An agreement is fundamental for providing the necessary certainty for companies to understand the EU’s priorities for the coming years and prepare their investment projects properly. When implementing the compromise reached, it will be paramount to optimize the use of funds which are most supportive of growth, such as Horizon 2020, Connecting Europe Facility, and SMEs. (BUSINESSEUROPE Headlines)

On 28 June, Alexandre Affre, BUSINESSEUROPE Senior Adviser, attended the European Ideas Network Summer University in Porto. EIN is a pan-European think tank sponsored by the EPP group of the European Parliament. Mr Affre participated in a panel debate with MEP Eija-Riitta Korhola and MEP Richard Seeber on the relation between climate change and energy policies in a post-2020 world. He underlined the high cost lessons from the current policy framework and the need to rebalance EU’s energy and climate policy to keep industry competitive, while addressing the challenge of energy security and climate. (BUSINESSEUROPE Headlines)
The package - comprising a Communication and a set of Guidelines on four technical issues – is currently subject to public consultation and a legislative proposal. European companies believes that this is a landmark opportunity to modernise the instruments, strengthen their effectiveness and streamline procedures for the benefit of the EU economy. A position paper highlighting BUSINESSEUROPE’s priority issues will be adopted shortly.
A coordinated approach with other polices is crucial. Deeper single market integration is key to exploit Europe’s business opportunities further. This needs a smarter regulatory environment and better use of standardisation, harmonisation and mutual recognition. Finally, state aid rules play a key role as Member States are looking for growth measures with limited budgets. The ongoing modernisation process has to consider the impact of the crisis on localisation and other industrial choices of enterprises like relocation and restructuring.
Under the Lisbon Treaty the Common Commercial Policy became full competence of the EU. The European Commission should, however, closely cooperate with the Member States to ensure a smooth transition from the old regime and guarantee that the level of protection offered via European agreements is not lower than the level offered through Member States’ agreements. As the issue of investment protection touches upon security and development policy aspects, different Directorates of the Commission should also coordinate their efforts, as well as with the EEAS.

On 27 June, BUSINESSEUROPE and the European Policy Centre co-organized the conference “Looking after 2020: creating a framework for climate and competitiveness”. Adrian van den Hoven, BUSINESSEUROPE Deputy Director General presented BUSINESSEUROPE’s policy recommendations to ensure a competitive EU energy and climate policy post-2020. During the panel discussion Philip Lowe, Director General for Energy, underlined that in 2007 the EU had diluted views on the internal energy market and on setting climate and energy objectives. (BUSINESSEUROPE Headlines)

On 26 June, BUSINESSEUROPE’s replied to the Commission’s public consultation on a possible EU initiative on responsible sourcing of minerals originating from conflict-affected and high-risk areas. In the reply and a cover letter BUSINESSEUROPE suggests that any future EU initiative should effectively contribute to improving the situation on the ground. A strong diplomatic / good governance angle should be put forward, giving a more prominent role for the EEAS and local EU Permanent Representations. BUSINESSEUROPE also calls on the EU to avoid binding legislation. As experience from the US has shown, such an approach does not contribute to the solution of a conflict, but creates a series of socio-economic problems in the conflict-affected areas, including trade embargoes, unemployment and social unrest. Binding legislation approaches also have negative effects on competitiveness. The EU should rather support and build on existing voluntary schemes, based on international standards, such as the OECD Due Diligence Guidance. (BUSINESSEUROPE Headlines)

Responding to the public consultation on 25 June , BUSINESSEUROPE stressed that governments must find ways to ensure that actions taken to address climate change can assist economic growth and development. This can only be achieved by a transparent and thorough assessment of the effectiveness, induced costs and positive impacts of climate policies over the economy and society at large. A positive engagement in discussions with all business sectors, in particular with the most affected ones, can be instrumental in supporting this process. As an example, setting of realistic targets should be built up by consensus and through interaction with those who are required to take actions to meet such targets, as well as taking technology developments into consideration. (BUSINESSEUROPE Headlines)

The conference - an initiative of Othmar Karas, Vice-President of the EP and Antonio Tajani, Vice-President of the Commission - took place on 25 June, a few days after the publication of a Commission-EIB report on possible new, joint initiatives on increasing lending, in particular to SMEs. Participants were representatives of a number of Member States and MEPs from various political groups. Daniel Cloquet called on the participants to use their influence in run-up to the 27 June European Council and ensure that the Council reaches positive conclusions on the launch of innovative financial instruments, blending the resources of the EIB and the Structural Funds. Indeed, a move in this direction has been done by the EU Council. There is however a need to finalise the CPR Regulation (Regulation on the common provisions for the Structural Funds), in a way that effectively allows the implementation of the new instruments. (BUSINESSEUROPE Headlines)
The EU must provide a growth and employment-enhancing regulatory environment to restore confidence in the economy and to increase industrial investment in Europe. BUSINESSEUROPE also called on the Commission to address the clear challenge of implementation and follow through EU policies at national level that also undermine EU policy support for industry.

For the first time ever, BUSINESSEUROPE and other European social partners were invited to attend the EU Council meeting on 25 June to discuss youth employment and access to finance in the European economy. “Youth unemployment is the painful symptom of badly functioning labour markets. It is a structural problem, exacerbated by the crisis. We must address the causes of this unacceptable waste of talents through structural reforms. Refocusing European and national policies on improving competitiveness is not a gift to companies. It is working for present and future generations. Heads of State and Government must adopt in full the Commission’s Country Specific Recommendations and Member States have to take these recommendations seriously.”– said Emma Marcegaglia, President of BUSINESSEUROPE. (BUSINESSEUROPE Headlines)

In a letter sent to Commissioner Semeta on 1st July, BUSINESSEUROPE Director General Markus J. Beyrer emphasized businesses’ support for the fight against tax fraud and evasion. But this must be taken forward in a way that enhances both the transparency and competitiveness of tax systems – he wrote. In this regard BUSINESSEUROPE welcomes the priority set out by European institutions and governments for reinforced administrative cooperation and automatic exchange of information. This can increase tax transparency and reduce cost and complexity of tax systems. It is important that the European policy response to tax fraud and evasion does not create uncertainty and complexity that would harm European companies’ competitiveness, and does not undermine efforts to remove cross-border obstacles to trade and investments. (BUSINESSEUROPE Headlines)
Europe has to put cost-competitiveness, security of supply and climate objectives on an equal footing. It must also closely monitor energy competitiveness and security of supply to ensure that all three objectives are well balanced. BUSINESSEUROPE will present a policy paper with detailed policy recommendations for the EU 2030 energy and climate framework on 25 June.

On 19 June, BUSINESSEUROPE President Jürgen R. Thumann participated in the Brussels Economic Forum to discuss European competitiveness in a global perspective with representatives of the ECB, the European Commission and other participants. President Thumann said while companies are ultimately the drivers of growth and employment creation, leaders must demonstrate their commitment to implement structural reforms and restore confidence. He stressed that we need to do much more in Europe to strengthen the fundamental determinants of our competitiveness, particularly by taking decisive action on research and innovation, education and training, energy costs and labour market. (BUSINESSEUROPE Headlines)

On 17 June, BUSINESSEUROPE Director General Markus J. Beyrer and MEP Reinhard Bütikofer, rapporteur of the EP industrial policy report, jointly hosted a panel discussion on “Promoting Industrial Growth in Europe” at the European Parliament. The panelists unanimously agreed that Europe needs a strong industry for a substantial recovery, but a lot needs to be done to overcome hurdles. “Europe’s way back to growth certainly requires a strong commitment from the European Parliament”, said Markus J. Beyrer, who called on Reinhard Bütikofer to continue the current momentum of his report in favor of reindustrializing Europe. A growth-enhancing regulatory framework that spurs investment in the European economy, tackling the issue of energy and raw material costs as well as investing in our talents are prerequisites for the European industry to compete effectively within the Single Market and in global context – he said. (BUSINESSEUROPE Headlines)

On 17 June, Trade Adviser Eleonora Catella represented BUSINESSEUROPE at a workshop entitled “Approaching Brazil”, organized by the Strategic Forum for International Science and Technology Cooperation (SFIC) and hosted by the Belgian Federal Science Policy Office. Participants to the event addressed the opportunities and challenges in research and innovation cooperation. They also discussed the potential for a more coordinated European approach to Brazil which would add value to existing successful cooperation activities put in place by the European Commission and the Member States. (BUSINESSEUROPE Headlines)
Participants of the seminar discussed the opportunities offered by the negotiations for a Transatlantic Trade and Investment Partnership (TTIP) and the recent Commission proposal for modernizing the EU’s Trade Defence Instruments.
James Watson welcomed the Commission recommendations that are ambitious and address, in its vast majority, national bottlenecks to growth and job creation. However, he stressed the need for Member States to accelerate the pace of reforms. Finally, he reiterated the need for the European Council not to water down these recommendations and to play an active role in ensuring their appropriate implementation.

On 17 June, the launch of negotiations for a Transatlantic Trade and Investment Partnership was announced at the G8 summit in Northern Ireland. BUSINESSEUROPE welcomes the timely start of talks for an unprecedented trade deal that could add more than € 86 billion to the EU’s annual economic output, increase EU exports by 28% and create thousands of jobs. We have been strongly supporting the launch of negotiations from the very beginning. On 14 June, on the eve of its Council of Presidents meeting in Dublin, Ireland, BUSINESSEUROPE urged Ministers of Foreign Affairs to adopt an ambitious mandate covering all the areas that can generate growth and employment on both sides of the Atlantic. (BUSINESSEUROPE Headlines)

On 13 June, BUSINESSEUROPE sent a letter to the European Commission expressing its views on the questionnaire on the European Small Claims Procedure. This instrument has filled an important gap in completing the European Justice Area by granting both businesses and consumers with more options when claiming their rights stemming from their cross-border relations. BUSINESSEUROPE suggests increasing the maximum threshold of € 2,000, simplifying the forms currently in use and intensifying information campaigns among legal practitioners and courts in order to help this instrument fulfil its full potential. (BUSINESSEUROPE Headlines)

In a letter sent to European Commission President Barroso on 13 June, Director General Markus J. Beyrer stressed BUSINESSEUROPE’s concerns about the proposed exclusion of the possibility for non-SMEs to receive regional aid in “c” regions. It is crucial to recognise the fundamental role of larger companies in supporting regional development, as the businesses often form important value chains with SMEs, with a positive impact on labour markets, in particular. Access to regional aid should not be evaluated on the size of the company, but on the quality of the investment, its impact on the economy and its effect on competition. (BUSINESSEUROPE Headlines)

On 13 June, speaking at a conference hosted by the European Centre for Vocational Training (CEDEFOP), Javier Calderon, Chair of BUSINESSEUROPE's education and training working group said that actions at EU level to fight youth unemployment need to focus on creating the right framework to help young people's transition from education to employment. Mr Calderon highlighted the role initial vocational education and training (VET) - in particular dual-learning apprenticeship systems - can play in facilitating young people’s entry into work, including the active involvement of companies in designing curricula for apprenticeships. Spain is an example where the employer's confederation - CEOE - is working together with a number of stakeholders to develop a dual-learning apprenticeship system. (BUSINESSEUROPE Headlines)

On 13-14 June in Dublin BUSINESSEUROPE’s Council of Presidents met the Irish Prime Minister, Taoiseach Enda Kenny. The Presidents and Directors General of our 41 member federations from 35 European countries expressed their appreciation for the Irish Presidency’s work to refocus European policies on growth and competitiveness. They underlined the crucial importance of the last 2 weeks of the Irish Presidency to endorse powerful country specific recommendations on national growth enhancing reforms and fiscal consolidation, and find an agreement with the European Parliament on the EU budget for 2014-2020. (BUSINESSEUROPE Headlines)

On 13-14 June in Dublin, BUSINESSEUROPE’s Council of Presidents, which is the General Assembly of the organisation, fully endorsed the nomination of Emma Marcegaglia as new President of BUSINESSEUROPE. Emma Marcegaglia will take over the helm of BUSINESSEUROPE on 1 July 2013. She succeeds Jürgen R. Thumann, who led successfully the organisation in the last four years. Emma Marcegaglia said “I am honoured to take over the Presidency of BUSINESSEUROPE. I will focus on how to grow out of the crisis”. (BUSINESSEUROPE Headlines)
More information: http://e15initiative.org/
On this occasion EUROCHAMBRES President Alessandro Barberis represented BUSINESSEUROPE. The event focused on developments in economic relations since closer economic ties were established through the 2011 EU-Korea Free Trade Agreement, touched upon emerging sectors in both regions’ markets as well as prospects for further cooperation.

On 12 June, BUSINESSEUROPE sent a letter to the European Parliament’s Employment and Social Affairs Committee in view of the upcoming Committee vote on the proposal for the posting of workers enforcement directive. European businesses underline that the decision to introduce joint and several liability for wages or other employment conditions should remain – as it is today - at the discretion of Member States. BUSINESSEUROPE also stresses the need of finding a balanced solution on national control measures, to allow Member States to carry out their control duties effectively and without creating unnecessary administrative burdens for companies. (BUSINESSEUROPE Headlines)

On 11 June, Anna Constable, Adviser in BUSINESSEUROPE’s Internal Market Department, presented BUSINESSEUROPE’s work on public procurement to a delegation from the municipality of Kristiansand in Norway. Ms Constable underlined that the main goal of public procurement must be to achieve efficiency in public spending and ensure the best economic value for taxpayers’ money. BUSINESSEUROPE is disappointed with the direction the current EU public procurement reform process is taking and does not believe it will lead to more simplification. Key areas of concern are proposals on the strategic use of public procurement towards social goals and the provisions that restrict the participation of private enterprises in the market. (BUSINESSEUROPE Headlines)

In a letter addressed to the EU institutions BUSINESSEUROPE Director General Markus J. Beyrer stressed: it is imperative to bring trilogue negotiations to a successful conclusion under the Irish Presidency, thereby allowing a timely start of the activities to be financed by Horizon 2020 in 2014. BUSINESSEUROPE has been advocating for a reimbursement model adapted to the different needs of businesses; however should the full-cost option be ruled out for industry, BUSINESSEUROPE would favour the model included in the Council partial general agreement. (BUSINESSEUROPE Headlines)

On 11 June, ETUC, BUSINESSEUROPE, UEAPME and CEEP presented to the press their Framework of Actions on Youth Employment, resulting from social dialogue negotiations. They support a multi-pronged approach focusing on the key priorities of learning, transition, employment and entrepreneurship. The objective is to foster dynamic, open and mobile labour markets for young people. BUSINESSEUROPE Director General Markus J. Beyrer stressed the need to modernise education and training systems and to implement labour market reforms to make youth employment a more attractive option for companies. (BUSINESSEUROPE Headlines)

BUSINESSEUROPE issued a position paper on gold-plating as the differing ways that EU single market legislation is transposed and implemented at national level can create barriers for business. The paper contains concrete recommendations that should increase transparency and accountability regarding gold-plating - with a view to avoid this practice in the interest of a well-functioning single market. (BUSINESSEUROPE Headlines)
The inauguration ceremony was held in the presence of HRH Crown Prince Frederik, followed by a gala dinner attended by the Danish Royal Couple HM Queen Margrethe and HRH Prince Consort Henrik, the Crown Prince Couple HRH Crown Prince Frederik and HRH Crown Princess Mary and HRH Prince Joachim.

On 7 June, taking the opportunity given by the Green Paper on the long-term financing of the European economy, BUSINESSEUROPE organised a workshop to discuss how to cope with factors of negative impact on banks’ ability to lend, and how to develop alternatives to traditional bank finance, in particular for SMEs. Keynote speeches were given by Hugh Morgan-Williams, Chair of BUSINESSEUROPE’s Entrepreneurship and SME Committee and Alain F. Berger, Vice-President, European Affairs, Alstom. Markus J. Beyrer, BUSINESSEUROPE’s Director General and Agnès Lépinay, Chair of the Financial Affairs Working Group outlined the broad content of BUSINESSEUROPE’s upcoming response to the Green Paper, which will develop some key recommendations included in BUSINESSEUROPE’s position on a pro-industrial growth framework. (BUSINESSEUROPE Headlines)

On 6 June, Alexandre Affre, BUSINESSEUROPE Senior Adviser took part in a panel discussion on the recently adopted Industrial Emissions Directive. The panel was organized as part of the 2013 edition of Green Week dedicated to Air Quality. The IED covers around 50,000 industrial sites in the EU and has contributed to the significant decrease in industrial emissions in Europe since the 1990’s. Mr Affre stressed that the new framework has yet to be fully implemented in close coordination with industrial sectors to ensure its cost-effectiveness. He did not see the need for new EU legal requirements targeting air emissions from industrial sources. (BUSINESSEUROPE Headlines)
On 6 June, BUSINESSEUROPE President Jürgen R. Thumann and Director General Markus J. Beyrer participated in the “European Industrial Policy: An industrial renaissance” conference in Brussels. In the presence of EC President José Manuel Barroso and Vice-President Antonio Tajani, President Thumann emphasized the importance of re-industrialising Europe as the road to growth and job creation, underlining that achieving the target to increase industry’s share to 20% of GDP would create 400,000 industrial jobs a year, as well as boosting associated services. Director General Markus J. Beyrer, speaking about the importance of access to finance, urged real progress in implementing the banking union; the right balance in prudential regulation of banks; the development of alternative sources of finance to bank lending; and better use of public funds to leverage private investment. (BUSINESSEUROPE Headlines)

On 5 June, Markus J. Beyrer, Director General of BUSINESSEUROPE, attended a working breakfast of the European Parliament Intergroup on Small and Medium Enterprises, coordinated by MEP Reinhard Bütikofer. The event provided an opportunity to share views on how to move towards a successful Transatlantic Trade and Investment Partnership from the SMEs perspective. In spite of representing 98% of all enterprises, only 13% of EU SMEs are active on international markets. BUSINESSEUROPE believes that the Transatlantic Trade and Investment Partnership will stimulate the internationalisation of SMEs by increasing convergence of regulations and therefore by reducing the regulatory risk, which represents a true obstacle to trade for small sized enterprises – said Markus J. Beyrer in his speech. (BUSINESSEUROPE Headlines)

On 5th June, James Watson, Director of Economics Department took part in a breakfast discussion on the financial transaction tax with representatives of the European Parliament, the European Commission and the financial sector. He reminded MEPS of BUSINESSEUROPE’s concerns regarding the initiative, which, instead of efficiently addressing financial instability, will damage growth and employment prospects. In particular, as outlined in BUSINESSEUROPE’s recent letter to finance ministers the FTT will undermine investment by increasing the cost of capital and damaging European companies’ competitiveness by making activities such as risk management more costly. (BUSINESSEUROPE Headlines)

At the annual meeting of French customs administrators on 5 June in Brussels, Deputy Director General Adrian van den Hoven discussed ways to achieve effective and smooth customs rules for companies. He highlighted the ongoing trade facilitation negotiations within the WTO Doha round and explained BUSINESSEUROPE’s expectations in the area of customs from the upcoming EU-US free trade negotiations. Concerning the ongoing reform of EU customs legislation, he singled out four key issues for business: the need for more simplifications granted to Authorised Economic Operators, workable non-preferential rules of origin, keeping current first-sale rule in customs valuation, and no introduction of multiple filing. (BUSINESSEUROPE Headlines)

On 4 June, BUSINESSEUROPE and DI, its Danish member, organised a breakfast meeting on the Product Safety Package at the European Parliament. The meeting, hosted by MEP Christel Schaldemose (S&D/DK) also included an intervention by BEUC, the European organisation representing consumers. Mr Paul Coebergh van den Braak, Chair of BUSINESSEUROPE’s Free Movement of Goods working group, voiced BUSINESSEUROPE’s support for the overall aim of the package while highlighting some concerns. Obligations on companies need to be proportionate and the concept of ‘risk’ needs clarification. Also, more should be done to tackle the growing tendency of the authorities to sometimes act arbitrarily when assessing the compliance of a product. (BUSINESSEUROPE Headlines)
Mr van den Hoven highlighted that TTIP represents an opportunity for the EU’s competitiveness and trade agenda. He called regulators to engage in a constructive dialogue with the business community to identify the most burdensome regulations for enterprises of all sizes and work out possible solutions to non-tariff obstacles to trade.

Ahead of the Justice Council meeting on 6 -7 June, BUSINESSEUROPE Director General Markus J. Beyrer sent a letter to the Irish Minister for Justice, Equality and Defence highlighting the impact of the proposed General Data Protection Regulation on Europe’s growth and innovation. Europe must grab the opportunity for global leadership with a regulation that enables innovation and unleashes the growth potential stemming from the use of data. The current draft fails to grasp these opportunities and creates impediments for providing new services – the letter says. (BUSINESSEUROPE Headlines)
The discussion was part of a seminar on eco-innovation organized by the European Journalism Centre. Mr. Affre underlined the business case for eco-innovation and how European companies are able to gain a competitive edge over competitors. He stressed that this process can only work if supported by the right policy and regulatory framework both at European and national level. Competitiveness checks and cumulative impacts of policies in particular need to be thoroughly assessed.
The meeting provided an opportunity to share views on the importance and the differences of the EU and US approaches towards future key negotiating chapters as regulatory cooperation and Intellectual Property Rights.
Social Affairs Adviser Guillaume Cravero said an important precondition to boost senior entrepreneurship is to remove barriers to business creation through better access to finance. In this respect, it is worth noting that older people may be in a better starting position than younger generations. More positive attitudes towards taking risks should also be encouraged. Mentoring can also be helpful to improve integration of younger generations into the labour markets while facilitating skills’ transmission and mutual learning.

The EU Council’s Employment Committee met on 30 May to discuss the implementation of the 2012 country specific recommendations’ (CSRs) employment aspects. Maxime Cerutti, BUSINESSEUROPE’s Director of Social Affairs, underlined the importance of a strong focus on labour market reforms in CSRs. It can be seen that reforms, where implemented, are paying off. The objective is to achieve more open, dynamic and mobile labour markets through increased labour market flexibility. BUSINESSEUROPE also welcomes the work done by the Committee to associate social partners more closely to its work. (BUSINESSEUROPE Headlines)

On 30 May, Maxime Cerutti, BUSINESSEUROPE’s Social Affairs Director, participated in the debate "Inequality: A Global Problem, a European Challenge" organised in Brussels by Bertelsmann Stiftung. Commenting on the recent PEW survey on public perception of inequalities, he underlined that European countries have extensive social protection systems compared to other regions in the world. Contrary to individuals’ perception, there is no uniform pattern in terms of income inequality in Europe. In fact, several European countries have experienced a reduction of inequalities in the last years. The main policy question for Europe is how to improve competitiveness, restore economic growth and create jobs to ensure the sustainability of social protection systems in the context of ageing societies – he said. (BUSINESSEUROPE Headlines)
They had the opportunity to learn more about the Timber Regulation, as this is one of the legislative options for a possible EU initiative and discussed issues of good governance related to conflict minerals, especially how to engage more effectively with other international players, like China. Participants agreed that the EU should take a multi-stakeholder approach that does not undermine existing industry-led voluntary schemes and has a strong EU diplomacy perspective.

On 29 May, Paul Coebergh van den Braak, Chair of BUSINESSEUROPE’s Free Movement of Goods working group, took part in a panel on Market Surveillance at a hearing of the European Parliament. BUSINESSEUROPE welcomes the proposal to strengthen market surveillance efforts to keep non-compliant products off the market – he said, adding that more legal certainty for business is needed regarding how the authorities assess a product’s compliance and more effective appeal procedures for companies should be put in place. Under no circumstances should mandatory third-party certification be introduced as a way of bringing funds into the currently underfinanced market surveillance system. (BUSINESSEUROPE Headlines)

On 29 May, Director General Markus J. Beyrer wrote to Commissioner Barnier on the green paper on unfair trading practices in the business-to-business food and non-food supply chain. BUSINESSEUROPE agrees on the vital role played by the supply chain in the creation of growth and jobs in Europe. It highlights the development of self-regulatory initiatives aimed at further improving transactions between companies. If successful, these can serve as a model for other areas. BUSINESSEUROPE also stresses that further reflection is needed before any EU initiative is taken in the supply chain arena. The fundamental principles of better regulation and contractual freedom are of utmost importance in that reflection. (BUSINESSEUROPE Headlines)

Ahead of the 29-30 May Competitiveness Council meeting BUSINESSEUROPE Director General Markus J. Beyrer sent a letter to the Irish Minister for Jobs, Enterprises and Innovation, urging to create a positive competitiveness shock in order to re-industrialise Europe and develop the Single Market. Credible impact assessments and competitiveness checks must be carried out on all legislative proposals and the impact on industrial competitiveness needs to be systematically taken into account. The cumulative impact of legislation must be taken into account. Banning regional state aid for non-SMEs would not be a smart move. Value chain effects between SMEs and larger companies must be taken into account when defining new EU state aid rules. (BUSINESSEUROPE Headlines)

On 28 May, WTO working group Chairman Reinhard Quick participated in a panel discussion on the future of global trade. Speaking to members of the International Trade Committee in the European Parliament, he underlined BUSINESSEUROPE’s strong support to the WTO and its core principles. He outlined a number of areas where the WTO should increase its activities in future – non-tariff measures, investment, competition, export restrictions. This is increasingly important as products nowadays are „made in the world‟ and therefore international trade rules should support global value chains. He also explained BUSINESSEUROPE’s support for preferential trade agreements as they also advance free trade. The exchange of views in the EP was organised on the occasion of the recent launch of the WTO Report by the High-Level Panel on Defining the Future of Trade – a group of prominent non-state stakeholders where BUSINESSEUROPE President Jürgen R. Thumann was earlier a member.(BUSINESSEUROPE Headlines)

On 28 May, at a CSR Europe workshop on “Is Europe at a turning point for corporate reporting? The voice of stakeholders”, Maxime Cerutti, Director of Social Affairs, expressed BUSINESSEUROPE’s disappointment about the European Commission’s decision to propose a legislative initiative on disclosure of non-financial information. Making reporting on specific Corporate Social Responsibility (CSR) areas compulsory would transform CSR into a mere box-ticking exercise. The business-driven purpose of CSR tailored to the needs of individual companies must be safeguarded. (BUSINESSEUROPE Headlines)

On 28 May, Director General Markus J. Beyrer – together with Commissioner Oettinger and Niki Tzavela, Member of the European Parliament - participated a conference organised by the Bureau of European Policy Advisers and the German Marshall Fund to discuss the implications of the exploitation of shale gas for Europe’s competitiveness. Fostering industrial competitiveness across the European economy has to be a key priority for Europe, this also presupposes an energy policy which supports all sectors, and industry in particular. “The world has significantly changed since the adoption of the 2020 package. Europe must adapt its approach regarding energy and climate policy. Shale gas should be part of Europe’s energy mix”, said Markus Beyrer. Adopting a strategy to exploit shale gas in a sustainable way to benefit from the advantages it offers to the European economy is therefore necessary. (BUSINESSEUROPE Headlines)
BUSINESSEUROPE expects the Council to give the European Commission an ambitious mandate for the EU-US TTIP negotiations where it is fundamental that all issues be on the negotiating table. BUSINESSEUROPE also supports ambitious trade and investment negotiations with other economic partners in the form of trade (Canada, ASEAN, Japan) or investment (China) agreements. It is also imperative that the EU addresses the growing challenge of non-tariff barriers through an ambitious market access strategy and full enforcement of global trade rules.

On 28 May, BUSINESSEUROPE sent its views on the Commission’s ‘Product Safety and Market Surveillance Package’ to the European Commission. BUSINESSEUROPE supports the Package’s aim to clarify and simplify the current legal framework on product safety and strengthen market surveillance to identify unsafe products. However, the paper also voiced some concerns. In particular proportionate obligations for economic operators are needed as well as more legal certainty for business regarding how the authorities assess a product’s compliance. (BUSINESSEUROPE Headlines)

Discussing the trade impacts of the EU Tobacco Products Directive with members of the European Parliament International Trade Committee on 27 May, Senior Adviser Carsten Dannöhl voiced BUSINESSEUROPE’s concern that some of the proposed measures would be both WTO non-compliant and not proportionate. He stressed that the EU has the full right to regulate in this area in order to achieve legitimate public health objectives, but must also ensure that its proposed measures are proportionate in order to achieve its aims. BUSINESSEUROPE is particularly worried that third countries could use the EU regulation as a pretext for measures that could dramatically affect the ability of European companies to export to them. Therefore the EU should not set such a precedent. (BUSINESSEUROPE Headlines)

On 27 May, BUSINESSEUROPE released its Spring Economic Outlook, which provides further evidence that the recovery is at a critical point. We expect EU output to be unchanged overall in 2013, but there is the potential for a modest expansion of 1.4% in 2014, assuming business confidence picks up through 2013. Large divergences in growth and labour-market developments across countries persist, and the outlook for 2013 and beyond is surrounded by uncertainty. Current main sources of uncertainty stem from financial instability, precarious state of public finances, risk of further tax increase and precautionary household savings. The Outlook highlights the need for urgent and resolute policy actions to rebuild business confidence, improve competitiveness and restore private investment. (BUSINESSEUROPE Headlines)
During the event, debating “The role of Entrepreneurship in the EU”, Markus J. Beyrer focused on BUSINESSEUROPE’s key priorities, such as re-industrialization, industrial competitiveness, access to energy and raw materials at competitive prices and the 2030 energy and climate framework. The President of the Government of the Republic of Croatia, Mr Zoran Milanović, the President of the Republic of Croatia, Mr Ivo Josipović, and the President of Croatian Employers’ Association Mr Ivica Mudrinić also addressed participants of the Entrepreneur Day.

In its submission to DG Competition regarding the revision of the rules for the assessment of licensing agreements for the transfer of technology under EU competition law, BUSINESSEUROPE welcomed the principle of a block exemption regulation. This could ensure legal certainty for technology transfer licensing agreements for the benefit of the European economy, growth and employment. However, BUSINESSEUROPE criticized a number of elements of the current proposals including – for example - the exclusion of termination clauses, that can create unjustified imbalances between the technology transfer partners. (BUSINESSEUROPE Headlines)

BUSINESSEUROPE believes that the current ceiling set under the state aid de minimis rules should not be increased. In its comments to proposals to revise the rules, BUSINESSEUROPE argued that an increase in the threshold would entail a higher risk of distorting free and fair competition. This would especially be the case in sectors with overcapacity – in combination with a large number of smaller undertakings – where even small aid amounts could have detrimental effects on competition. (BUSINESSEUROPE Headlines)

At a joint seminar in Berlin on 23-24 May the European social partners discussed the role of apprenticeships in facilitating the transition between education and work. In his opening remarks Maxime Cerutti, Director of Social Affairs at BUSINESSEUROPE emphasised that the role of European social partners is to help set the right framework conditions for apprenticeships and to encourage employer participation in such schemes. Participants gained a unique insight into the involvement of companies in apprenticeships through a visit to the Siemens professional education centre. Subsequent discussions focused on the costs and benefits associated with apprenticeships; how to improve their perception. They also looked at case studies from Denmark and Italy on recent reforms to their apprenticeship systems. (BUSINESSEUROPE Headlines)
An ambitious trade agreement with the US would deliver huge growth and jobs benefits on both sides of the Atlantic. On the Eastern Partnership, BUSINESSEUROPE expressed its concern with the slow progress in free trade talks with Eastern Partners. In addition, political challenges in some Eastern Partner countries such as Ukraine are making it impossible to advance economic integration. BUSINESSEUROPE asked the Polish government to take a stronger stance to promote free trade with Eastern Partners as a key tool to boost growth and jobs.

Commenting on the Commission proposals to revise the Environment and Energy State Aid Guidelines, BUSINESSEUROPE highlighted that the pursuit of environmental objectives has had such a profound impact on energy markets that it is appropriate for the Commission to enlarge the scope of the environmental aid guidelines to include energy issues. The ultimate goal of state aid control should be to improve competitiveness in energy production and supply but existing market structures can be an obstacle to this objective. (BUSINESSEUROPE Headlines)
Mr Beyrer reiterated the business community’s concerns about the exclusion of non-SMEs from the productive investment part of the European Regional Development Fund and highlighted the potential negative consequences of such a move for businesses, including SMEs. Specific conditions that are hampering investment in the different member states have also been discussed. Markus J. Beyrer also stressed the importance of reaching an agreement in the Multiannual Financial Framework and on the regional policy package in order to ensure an effective and timely start of regional programs in 2014.

In a press release, ahead of the European Council on 22 May, BUSINESSEUROPE urged Heads of State and Government to focus on lifting obstacles to growth. BUSINESSEUROPE President Jürgen R. Thumann said the EU must re-shape its energy and climate polices to tackle high energy prices and reflect on the very limited progress in global climate talks. Director General Markus J. Beyrer highlighted that fiscal consolidation should be accompanied by growth-enhancing reforms and focus primarily on reductions in current public expenditure, protecting investment, not tax rises. He also expressed businesses full support to the objective of combatting fraud and tax evasion. (BUSINESSEUROPE Headlines)
He stressed that the improvement of Europe’s competitiveness will be key to foster growth and employment in Europe. To achieve this, more importance must be given to better regulation principles, flexible labour markets, better access to finance, a competitive energy market and having education systems that match skills with employment needs. He also called for greater efforts to re-industrialise Europe and support to the target of increasing industry’s share of European GDP to 20% by 2020.

On 21 May, business leaders from the G8 business organisations – including BUSINESSEUROPE’s incoming President Emma Marcegaglia - met with UK Prime Minister David Cameron In London. During a wide-ranging discussion which focused on trade, investment, taxation and transparency, they urged all of the G8 Governments to use the June meeting in Northern Ireland to really drive forward the growth and jobs agenda. (BUSINESSEUROPE Headlines)
BUSINESSEUROPE agrees with the Commission that there is room for improvement on the explanations companies give when they depart from corporate governance codes. BUSINESSEUROPE and its member federations are ready to play their part to improve ‘comply or explain’ implementation. With regard company law, mobility is key, which is why initiatives like the European Private Company should not be set aside.

On 16 May, at a press conference of the 11 European Business Summit in Brussels several business organisations announced the creation of a Business Alliance for TTIP. The aim of the Alliance is to give EU trade negotiators the strongest support possible for negotiations for a Transatlantic Trade and Investment Partnership. Participants of the Alliance - BUSINESSEUROPE, EUROCHAMBRES, the European Services Forum, the Transatlantic Business Council, AmCham EU, the US Chamber of Commerce, AmChams in Europe, the Transatlantic Policy Network and the European Association of Craft, Small and Medium-Sized Enterprises (UEAPME) – say they will do everything possible to bring this agreement to fruition and pledge to assist governments in the negotiating process. They will work together to revive the economy and to create jobs on both sides of the Atlantic. (BUSINESSEUROPE Headlines)
Europe needs a strong and competitive industrial base to create growth and jobs. This was also underlined by BUSINESSEUROPE President Jürgen R. Thumann to European Council President Hermann van Rompuy as well as the European Commission President José Manuel Barroso. The event gathered CEOs and Presidents of industry associations from across Europe, as well as European Commissioners for industry, trade, energy, climate, digital economy, and social affairs, Members of the European Parliament, Ministers of the Council and representatives of the EIB, ECB and the WTO. During the closing plenary debate with President Barroso, President Thumann put forward 5 key recommendations for industrial growth: access to open markets; cost-competitive energy prices; access to finance; affordable access to raw materials; investment in education and training. He warned that the current economic and social situation in Europe, in particular high youth unemployment, needs to be rapidly turned arou nd. If European industry can compete more effectively within the Single Market and in global context, it will create much needed jobs and growth. As companies are eager to re-industrialise the European economy, now policy makers need to implement reforms and drive pro-investment, pro-competitive European policies.
Under the theme of “Unlocking Industrial Opportunities – An EU Strategy for Competitiveness” the summit, an initiative of BUSINESSEUROPE and the Federation of Enterprises in Belgium (FEB/VBO), will explore how to achieve an ambitious industrial target of 20% of European GDP and put Europe’s economy and job market back on track. Industry remains a central driver of competitiveness, accounting for the lion’s share of investment in research and development, exports and jobs. Europe has to think outside the box of its common political thinking and must put industrial competitiveness back at the centre of EU’s policymaking. The President of the European Council Herman Van Rompuy and Vice-President of the Commission Antonio Tajani and Energy Commissioner Oettinger will join the President of BUSINESSEUROPE, Jürgen R. Thumann to kick off the Summit.
Several EU Commissioners (including Commissioners De Gucht, Kroes, Hedegaard and Andor as well as President Barroso) will join the event on 16 May. More about EBS in next week’s Headlines.
More information: http://www.ebsummit.eu/

On 14 May, MEP Paul Rübig and BUSINESSEUROPE organized a policy breakfast in the European Parliament on EU’s energy and climate framework for 2030. Dr Jens Perner of Frontier Economics outlined the main findings of a study prepared for BUSINESSEUROPE on lessons learnt from the current energy and climate policy. Markus J. Beyrer, BUSINESSEUROPE Director General, stressed that the cost lessons from the current EU policy need to be addressed while taking game-changers like the shale gas revolution in the US and the progress in global climate talks into account. MEP Rübig said the EU Energy and Climate Framework 2030 should focus on the competitiveness aspect and propose measures that are in line with the re-industrializing goal of the EU and help to keep most of the production value chain within Europe. (BUSINESSEUROPE Headlines)

In letters sent to Commissioners Michel Barnier and Karel De Gucht BUSINESSEUROPE called for further work on a draft World Intellectual Property Organisation treaty to improve access for the visually-impaired and persons with print disabilities to copyrighted works, before a convened Diplomatic Conference in June 2013. Effective solutions are needed to challenges these groups face in accessing copyrighted works, including the conclusion of a balanced and workable international agreement in favour of the visually-impaired. However, the current draft does not reflect the appropriate balance between copyright protection and limitations/exceptions to it. An unworkable treaty, creating gaps to the current global IPR framework and facing uncertain ratification prospects in many countries, would benefit neither right-holders nor the visually-impaired. (BUSINESSEUROPE Headlines)
However, Mr Beyrer expressed concerns about the proposed data protection regulation, as the proposal may seriously harm growth and competitiveness in Europe. It is important to prevent that too strict and unworkable data protection rules have a negative impact on the digital economy, which is increasingly based on the use of data, often for societal objectives.
Discussing the prospects and challenges of the bilateral free trade negotiations, he called for effective new market access, which can only be achieved when regulatory and technical hurdles are removed. He urged the EU and Japan to ensure that the highest political commitment will be translated into concrete trade liberalisation action at ministries and regulatory agencies.
Last year the European Commission has put forward a proposal for an instrument to promote market access for procurement internationally, which is under review in the EP and Council. The instrument would introduce possibilities for the EU to investigate markets where EU companies face restrictions in access to foreign procurement markets and would, under certain circumstances, authorize Member State authorities to exclude foreign companies from EU procurement markets where reciprocal market access is lacking. The European Parliament is expected to issue a report bridging very different views on this Commission proposal next month under the rapporteurship of MEP Daniel Caspary. BUSINESSEUROPE put forward the many challenges faced by EU companies in trying to access foreign procurement markets and the need to find solutions, while recognizing the different views expressed by companies on the most effective tools to promote market access.

On 7 May, speaking at a conference about labour migration and mobility, Maxime Cerutti, BUSINESSEUROPE’s Director of Social affairs highlighted the importance of economic migration for the EU. In particular there is high demand for highly skilled workers in science, technology, engineering and mathematics related occupations in the short run. In a speech at a separate panel on skills matches, Robert Plummer, social affairs adviser, said there needs to be more mobility within the EU, both of EU citizens and third country nationals living and residing in the European Union legally. This mobility can help to overcome skills mismatches and address employers' demand for labour. (BUSINESSEUROPE Headlines)
They exchanged views on next year’s European elections and the role MEPs could play in the campaign. They also discussed the energy and climate debate, the trade agreements with the US, Japan and India, the Euro and the economy at large. Sir Graham was also briefed about the latest developments in the social dialogue with the European trade unions, including last week’s debate with the College of Commissioners. Markus J. Beyrer underlined the continuing firm commitment of European companies to the European integration process in general, and the Euro in particular. He also warned that the reform process must be continued both at national and European level in order to be able to preserve our European social systems.

As a number of EU Member States continue to discuss a financial transaction tax (FTT) under the EU enhanced co-operation process, BUSINESSEUROPE Director General Markus J. Beyrer sent a letter to EU finance ministers warning of the dangers for European growth and competitiveness of such an initiative. The FTT will do nothing for financial stability, but instead will put European financial services at risk of being off-shored, undermine investment by raising the cost of financing for firms, and damage European companies’ competitiveness. By withdrawing their support for the FTT, European leaders still have time to show they are serious about putting Europe on a strong recovery path – the letter said. (BUSINESSEUROPE Headlines)
During the meeting, the discussion focused on the current economic situation in the European Union and the Czech Republic, on strategic policy areas for European competitiveness, such as industrial policy, energy, state aid and European trade policy overall.

Access to finance is a growing problem for small and medium sized enterprises (SMEs). More attention needs to be paid to ensuring that financial market reforms strike the right balance between safeguarding financial stability and the financing needs of SMEs. At the same time it is imperative to support the market-led development of alternatives to traditional bank finance more actively. These were the messages highlighted by Daniel.Cloquet, BUSINESSEUROPE’s Director for Entrepreneurship and SMEs at the SME Finance Forum organized by the European Commission in Dublin on 2 May, on the eve of the 3 May informal Competitiveness Council. The Forum was attended by Commission Vice-President AntonioTajani; the President of the Competitiveness Council, Richard Bruton; Philippe De Backer, EP Rapporteur for SME finance issues, as well as high-level EIB and EIF representatives. (BUSINESSEUROPE Headlines)

On the eve of the 2 May College of Commissioners debate, BUSINESSEUROPE Director General Markus J. Beyrer wrote to EU Commission Vice-President Joaquin Almunia highlighting key points for the on-going revision of rules applicable to regional state aid. It is crucial to recognise the fundamental role non-SMEs play in supporting regional economic development, and access to regional aid should be evaluated on the quality of the investment. Other important substantial aspects also need to be re-evaluated – the letter said. A major procedural point is the need to allow projects to start without prejudging the positive assessment of the incentive effect of the aid measure. (BUSINESSEUROPE Headlines)

On 2 May, Markus J. Beyrer, BUSINESSEUROPE’s Director General participated in a meeting of the College of Commissioners together with representatives of the other EU social partners: UEAPME, CEEP, and ETUC. The purpose was to discuss the social dimension of the Economic and Monetary Union. He explained that tighter economic policy coordination is a must for the common currency and that closer coordination on labour market aspects also makes sense. The social dimension of EMU must be shaped so as to contribute to its better functioning. For BUSINESSEUROPE, this means pursuing employment and social policies that support competitiveness, growth and job creation. The European social partners’ role in EU economic governance should be focused on issues affecting employment and the functioning of labour markets. European social dialogue must go beyond procedural aspects and contribute to the promotion of growth and jobs. Europe must not repeat the mistakes made in 2003. We can be flexible on the time scale provided there is progress in structural reforms but we must not repeat the mistakes made ten years ago. If the European Union shows complacency on fiscal consolidation, this time, the entire European project could be jeopardised. (BUSINESSEUROPE Headlines)

A well-functioning copyright legislation and collection practice are key for creativity and innovation. In its comments to a compromise proposal presented by the Irish Presidency BUSINESSEUROPE says that the current non-transparent, seemingly random and nationally fragmented system of collective rights management is an obstacle to the development of new business models, the evolution of the single digital market and multi-territorial licensing. Transparency, accountability and efficiency should be the key principles of the future system. With the advent of new technological means, the legal framework should remain flexible enough and allow options for new kinds of services. (BUSINESSEUROPE Headlines)

On 30 April, BUSINESSEUROPE was invited to speak at the closing session of a conference in Dublin on “Women’s Economic Engagement and the Europe 2020 Agenda”, organised under the Irish EU Presidency. Ms Anu Sajavaara, Chair of BUSINESSEUROPE’s Equal Opportunities Network, stressed the need of boosting economic growth in Europe to create jobs, in an effort to increase and improve the position of women in the labour markets. Member States and EU institutions should also overcome the negative image of temporary work. Addressing gender stereotypes, promoting STEM skills, facilitating entrepreneurship, as well as improving the availability of childcare services should continue to be areas to focus on in the coming years. (BUSINESSEUROPE Headlines)
On 29-30 April at the EU-Japan Business Round Table in Paris BUSINESSEUROPE Deputy Director General Adrian van den Hoven called for courageous and ambitious steps towards NTB elimination. Otherwise the negotiations would run the risk of being suspended after the first year, in line with the review clause which is part of the EU's negotiating mandate – he said.
Examples include the need to allow investments, improve distribution and maintenance, and allow technical experts to move to global industrial locations and servicing points. At the event, the Swedish Board of Trade also presented a study on how manufacturing companies were increasingly developing the services aspects of their businesses globally.

Speaking at a conference on 25 April, organised by BUSINESSEUROPE member federations IV, BDA, DA, VNO-NCW and the Confederation of Swiss Employers, Maxime Cerutti, Director of Social Affairs said that where they are well organised at national level, apprenticeships can be a very cost-efficient means for companies to address their skills needs.. With the support of BUSINESSEUROPE, the conference built on work undertaken last year by a BUSINESSEUROPE task force, exploring the value of apprenticeships for young people and employers and making a series of recommendations for action at EU and Member State level as well as for employers’ organisations and companies. (BUSINESSEUROPE Headlines)

On 24 April, a debate in the European Parliament, co-organized by the European Minerals Foundation and the Committee of Regions discussed the proposal for a new Environment Impact Assessment (EIA) Directive. The Parliament’s rapporteur, Andrea Zanoni MEP (IT, ALDE) and Karl Falkenberg, Director General of DG Environment presented the institutions’ perspective. On behalf of BUSINESSEUROPE Alexander Kessler outlined industry’s concerns about this proposal and called for a smart regulation with clear definitions and without overlapping with other legislations. He also stressed that in the current economic situation an intelligent look at the possible increase of the Environmental Impact Assessment’s overall costs with regard to its increase of benefits would be required. (BUSINESSEUROPE Headlines)
Markus J. Beyrer underlined that the EU needs a more realistic and cost-competitive approach to energy and climate challenges. They also discussed the EU’s approach to shale gas exploration and exploit in Europe. Energy issues will be discussed by Heads of State and Government at a special European Council at the end of May.
On 23 April BUSINESSEUROPE Director General Markus J. Beyrer and Senior Adviser Christian Feustel met Martin Schulz, President of the European Parliament. They discussed next year’s European elections, the role of the EP, BUSINESSEUROPE’s views on topical items such as the energy and climate debate, an EU-US trade agreement and the economy at large. President Schulz was also briefed about the latest developments of the Social Dialogue with the European trade unions. Markus J. Beyrer underlined the continuing firm commitment of European companies to the European integration process in general, and the euro in particular. He also warned that the reform process must be continued both at national and European level in order to be able to preserve our European social systems.

On 24 April, BUSINESSEUROPE and MEP Koch-Mehrin co-organised a European Parliament breakfast on ‘Diversity in boards: perspectives of Politics and Practice’, bringing together business representatives, headhunters and MEPs. During the good exchange of views business participants agreed that diversity is essential for good corporate governance, innovation and creativity. However, quality and competences are still the main criteria. Furthermore, in line with the subsidiarity principle, it is up to Member States to find their own ways how to achieve these goals, based on their national culture and a number of other factors. (BUSINESSEUROPE Headlines)

On 23 April, BUSINESSEUROPE Social Affairs Director Maxime Cerutti spoke at a Bertelsmann Stiftung conference on “Fostering Corporate Responsibility through Self- and Co-Regulation: The Case of Sector-specific Initiatives”. He stressed that the Commission’s recent publication of principles on self- and co-regulation in place of the code for effective open voluntarism, originally planned, goes in the right direction. To be effective, self- and co-regulation should be demand-driven and provide the possibility to tailor initiatives to the specific characteristics of the company or sector. As it regards sectoral initiatives, industry representatives in the sectors concerned are placed the best to assess the added value of self- and co-regulation to serve their needs. The role of public actors should not interfere with this. (BUSINESSEUROPE Headlines)
On 23 April, BUSINESSEUROPE’s Deputy Director General Adrian van den Hoven took part in a panel discussion with Johannes Hahn, European Commissioner for Regional Policy, at the 4th Bruges European Business Conference. “Europe must improve its competitiveness and its attractiveness as a business location” said Adrian van den Hoven. “A key element to achieve this is a research and innovation policy which spurs growth and strengthens its industrial base.” Europe managed to reduce the gap to the US and Japan but is still lagging behind and risks being overtaken by emerging economies, such as China, in the medium term. A new holistic approach to R&I is needed, which includes the improvement of the research and innovation legal framework as well as providing adequate financing to EU programs.
On 22 April, Deputy Director General Adrian van den Hoven participated in this year’s Brussels Think Tank Dialogue to present BUSINESSEUROPE’s view on how industrial policy can contribute to bring back employment to Europe He underlined that Europe’s worsening employment situation needs to be reversed. Dynamic, open and mobile labour markets, re-training programs and national structural reforms are needed to enhance competitiveness and productivity as well as to set the conditions that encourage investment in the European economy. Europe must support jobs in industry along the whole value chain to generate the added value urgently needed – he said.

On 22 April, BUSINESSEUROPE Director General Markus J. Beyrer was invited to the 24th international Europe Forum in Luzern to address the need of re-industrialising Europe. In his speech he emphasised the importance of a strong industrial policy and growth strategy to put Europe back on a growth path. Europe is still an attractive business location but loses ground to the US when it comes to foreign direct investment. Restoring confidence in the European economy and improving the investment climate are necessary to attract investment and generate the added value needed along the entire value chain. A strong and coherent industrial policy must become an imperative for the European Union and all Member States. (BUSINESSEUROPE Headlines)

On 19 April, BUSINESSEUROPE discussed the Commission’s priorities in the area of transport with Keir Fitch, Deputy Head of Cabinet of Commissioner Kallas. BUSINESSEUROPE stressed that companies need more efficient and cost-effective transport networks to be more competitive. Remaining regulatory, administrative and technical barriers need to be removed. In the coming months, many different Commission initiatives are expected from actions on the Single European Sky, road pricing and maritime policy to the follow-up on the 4th Railway Package, clean fuel and the size and weight of trucks. Improving Europe’s transport networks requires increased and continuous investments in infrastructure, therefore BUSINESSEUROPE urges political leaders to safeguard the budget of the Connecting Europe Facility proposed by the Commission. (BUSINESSEUROPE Headlines)

On 18 April, BUSINESSEUROPE Vice-President Julie O’Neill and Deputy Director General Adrian van den Hoven attended the EU-US Business Roundtable, organized in Dublin by BUSINESSEUROPE and IBEC, the Irish industry federation. Commissioner Karel De Gucht represented the EU Commission. Vital Moreira, Chairman of the International Trade Committee of the European Parliament and Richard Bruton, Minister for Jobs, Enterprise and Innovation (Irish Presidency) were also in attendance. Ambassador William Kennard and Mike Froman represented the US Government. The Irish Taoiseach Enda Kenny and Deputy Prime Minister Eamon Gilmore also participated in the event which took place in parallel with the informal EU Trade Ministers Council. (BUSINESSEUROPE Headlines)

On 18 April, BUSINESSEUROPE, UEAPME, CEEP and ETUC held a joint conference in Brussels on the “promotion of active ageing through lifelong learning”. This initiative, as part of the EU social dialogue work programme 2012-2014, was to discuss challenges in the updating and upgrading of skills of older workers, taking into account the findings of two separate projects of EU cross-industry employers and ETUC last year on active ageing. Speaking in the concluding panel, BUSINESSEUROPE’s Social Affairs Director Maxime Cerutti highlighted that lifelong learning has become a permanent feature of human resource management. More action is needed in some countries to ensure that the training provided matches business needs or to raise the awareness to the benefits of training. (BUSINESSEUROPE Headlines)

On a letter sent to the President of the European Commission José Manuel Barroso on 18 April, BUSINESSEUROPE President Jürgen R. Thumann and Director General Markus J. Beyrer asked for the withdrawal of the proposal for ETS backloading. BUSINESSEUROPE supports the EU ETS as a cost-effective policy instrument to reduce emissions and recognizes the role it will play in the future EU climate policy. However, European businesses oppose ETS backloading as it would interfere in a market-based system, thereby reducing predictability for industry and investor’s faith in the market. This measure would lock the EU into high energy prices and put further burden on energy-intensive industries, struggling to recover from the current crisis. (BUSINESSEUROPE Headlines)

On 16 April, Director General Markus J. Beyrer wrote to the European Parliament and the Irish Presidency on the reform of market abuse rules, now in trilogue phase. Although supportive of the current revision, BUSINESSEUROPE suggested a number of changes to make the proposed legal framework more effective and legally certain. These relate to the extension of the definition of insider information and to the rules governing the disclosure of insider information and of managers’ transactions. (BUSINESSEUROPE Headlines)
On 16 April, BUSINESSEUROPE hosted a meeting with the US Chamber of Commerce to discuss a new study “The Economic Importance of Getting Data Protection Right” , published by the European Centre for International Political Economy (ECIPE). Amongst its main findings the study shows that the new data-driven economy affects every industry sector, including manufacturing, which largely depends on services. If cross-border data flow is disrupted as a consequence of requirements imposed by the new data protection regulation, EU GDP could drop by up to 1.3%. The proposed regulation could also lead up to 11% decrease in EU manufacturing exports to the US and is likely to hurt the domestic economy more than the EU’s foreign trading partners.
Australian Minister Greg Combet and BUSINESSEUROPE’s Director General Markus J. Beyrer met to discuss possible cooperation between the EU and Australia in the field of climate policy. The Minister, joined by Australian Ambassador Lewis, explained the main features of the Australian carbon market, including measures to support energy-intensive industries and provisions for linking to other carbon markets. BUSINESSEUROPE supports the development of a global carbon market. This will help stimulating investments in innovative technologies and products where they deliver the greatest possible climate benefits at the lowest economic cost. The linking of the EU ETS and Australian carbon market may be good in this perspective but its impact of the EU carbon price must be carefully assessed beforehand.
On 10 April 2013, Reinhard Quick, Chairman of BUSINESSEUROPE’s Free-Trade Agreements Working Group, participated in the High-Level Regulatory Forum meeting held in Washington. Reinhard Quick highlighted the benefits of regulatory cooperation, which provides for necessary regulatory protection, increased efficiency for regulators, greater ease of compliance, increased economic growth, jobs, and expanded trade. BUSINESSEUROPE calls on the EU and US to foster their cooperation and seek an agreement that creates a “mandate” for regulators to work actively when regulating in order to minimise unnecessary differences between regulatory frameworks and to examine existing regulatory frameworks for equivalence.
On 9 April, BUSINESSEUROPE’s Director General Markus J. Beyrer and representatives of Confindustria and BDA met Commission Vice-President Antonio Tajani. Mr Beyrer stressed the need to engage in concrete and ambitious actions that can underpin the goal of re-industrialising Europe by increasing the share of industry in GDP to 20% by 2020. At the same time, the Commission should be consistent and avoid proposing initiatives that would run counter this objective. In this respect, European businesses are deeply concerned about the idea of imposing on companies stronger requirements on disclosure of non-financial information. This would create unnecessary new burdens and hamper innovation and dynamism in company practices in the field of corporate social responsibility.
On 8 April 2013, BUSINESSEUROPE hosted a meeting with a delegation of the Canada-Europe Parliamentary Association comprising members of Parliament and senators, representatives of the Conservative, New Democratic and Liberal Parties of Canada visiting various institutions and stakeholders in Brussels. Deputy Director General Adrian van den Hoven welcomed the delegation and exchanged views on a number of topics, including the ongoing negotiations of the Canada-EU comprehensive economic and trade agreement.
On 7 April 2013, Director General Markus J. Beyrer together with – inter alia - BDI President Ulrich Grillo took part in a panel discussion on “the future of industry in Europe” organised during the opening of the Hannovermesse 2013. In his address, Markus J. Beyrer stressed the need to set concrete steps to encourage re-industrialisation of Europe as the window of opportunity is very small. Europe’s attractiveness as a business location must improve further in the future. It requires a new industrial policy strategy which ensures the realignment of EU policies towards generating sustainable industrial growth and employment. A competitive European industry is central for Europe’s prosperous future.

On 5 April Director General Markus J. Beyrer wrote a letter to MEPs asking them to reject the ETS backloading proposal in the upcoming plenary vote on the Groote Report. BUSINESSEUROPE is opposed to short-term measures such as backloading which would contribute to locking the EU into high energy prices while failing to address substantial shortcomings of the current climate and energy framework. European business believes instead that it is time for a debate involving all stakeholders on the structural reform of climate and energy policies for 2030. BUSINESSEUROPE is working on concrete solutions to be presented later this year. (BUSINESSEUROPE Headlines)

In a letter sent to all EU policy-makers involved in the trilogue negotiations on Horizon 2020, BUSINESSEUROPE Director General Markus J. Beyrer urged to take measures to reverse the declining participation rate of industry in EU-funded programmes for research, development and innovation. BUSINESSEUROPE strongly recommends maintaining the well balanced allocation of budget shares among the three pillars of Horizon 2020 as originally proposed by the Commission. Moreover, providing a viable reimbursement model adapted to the need of business with funding rates not below the level of the Framework Programme 7 will be essential. (BUSINESSEUROPE Headlines)
On 4 April 2013, Deputy Director General Adrian van den Hoven took part in a seminar on transatlantic trade opportunities in anticipation of the negotiations for a Transatlantic Trade and Investment Partnership organised by the Ministry of Foreign Affairs of the Kingdom of the Netherlands. Adrian van den Hoven emphasised the need for negotiators first to negotiate an agreement that maximises gains in terms of jobs and economic growth and then to focus on possible trade concerns. BUSINESSEUROPE believes that the agreement will represent an unprecedented trade deal and will provide an opportunity to benefit Europeans and Americans equally.
On 27 March Deputy Director General Adrian van den Hoven participated in a panel discussion on industrial policy in the European Parliament, organised by BUSINESSEUROPE’s member federation SN – the Confederation of Swedish Enterprise. Together with Reinhard Bütikofer, MEP, and Diego Canga Fano, Head of Cabinet Commissioner for Industry, Adrian van den Hoven underlined the importance of follow-up actions to successfully implement the proposals given in the European Commission communication on industrial policy published in October 2012. It certainly requires pro-competitiveness policies at European and national levels as well as smart regulation tools to bring more growth and jobs in Europe.

Reacting to the Commission Green Paper on energy and climate 2030 published on 27 March, Markus J. Beyrer said: “BUSINESSEUROPE cannot accept a “business as usual” scenario for EU energy and climate policy that would put our economy at a permanent disadvantage in comparison with our main trading partners. The EU needs a cost-competitive, secure and climate-friendly energy policy for 2030. The Green Paper rightly stresses the importance for Europe’s competitiveness; I look forward to an open debate in this fundamental discussion.” (BUSINESSEUROPE Headlines)

On 26 March, Maxime Cerutti participated in a policy debate hosted by Katarína Neveďalová, the MEP in charge of drafting the EP report on the Commission’s communication on “re-thinking education”. Mr Cerutti stressed that labour market needs should be put at the centre of education, in particular vocational education and training. The priority is to address skills mismatches and shortages. This will contribute to ease transitions to the labour markets and reduce unemployment. To achieve that, Scientific, Technological, Engineering, and Mathematics (STEM) skills should be prioritised at all levels of education and training. Moreover, work-based learning can provide young people with the work experience they need to find a first job. BUSINESSEUROPE and its members will contribute actively to the exchange of national practices foreseen as part of the EU alliance on apprenticeships. (BUSINESSEUROPE Headlines)

In the context of the adoption of a draft bill introducing class actions in Japan, a joint letter was sent by BUSINESSEUROPE, the Japan Chamber of Commerce and Industry (JCCI) and the U.S. Chamber of Commerce Institute for Legal Reform to the Japanese authorities. It expresses business concerns about the negative impact of this initiative. (BUSINESSEUROPE Headlines)

On March 25, BUSINESSEUROPE’s President Jürgen R. Thumann participated in the annual colloquium of the Walter Raymond Foundation in Berlin. In his address he underlined the achievements of European integration and the importance of the single market. He called for a stronger, unified European Union and urged, despite current challenges and uncertainties, not to dismiss the vision of a European political union. (BUSINESSEUROPE Headlines)
On 25 March, Deputy Director General Adrian van den Hoven took part in an EPC policy dialogue along with the Austrian Federal Chamber of Labour and the Austrian Trade Union Federation who presented their joint study “1000 billion Euros at stake: How boosting employment can address demographic change and public deficits”. Adrian van den Hoven emphasised the need for Europe to improve its competitiveness, driving a coherent industrial policy to bring growth and jobs back to Europe. At present, Europe faces a worsening of its employment situation which must be reversed. National structural reforms are needed to enhance competitiveness and productivity and to set the conditions that encourage investment in the European economy. Dynamic, open and mobile labour markets, re-training programmes and tapping into the experience of older workers are necessary to re-vitalise Europe and its industry.

Ahead of their bilateral summit on 25 March when Japan and the EU officially launched free-trade negotiations, Director General Markus J. Beyrer sent a letter to European Council President Herman Van Rompuy, European Commission President José Manuel Barroso and EU Trade Commissioner Karel De Gucht. BUSINESSEUROPE requests from the Commission to strive for not just paper concessions by Japan but clear measures that open the Japanese market. This means elimination of non-tariff barriers, removal of obstacles in the areas of goods and services, investment, competition and IPR, effective market access in public procurement, and in general the resolution of all issues of significant economic interest to either party. In line with the review clause in the mandate, negotiations should be suspended in the event that Japan does not deliver on its NTB commitments. (BUSINESSEUROPE Headlines)

BUSINESSEUROPE on 22 March participated in a panel discussion organised by the European Economic and Social Committee on the gender dimension of the Europe 2020 strategy. Anu Sajavaara, Chair of the Equal Opportunities Network, emphasised the need to foster economic growth to create jobs and bring more women into the labour markets. In the majority of EU countries, women’s participation rate is still below 60%. The priority is to find effective ways to reap the full benefits of women’s talents and identify the barriers they face on labour markets. We should look for sustainable solutions and address country-specific challenges, such as availability of childcare, segmentation and segregation of the labour market, to ensure a more equal participation of men and women in employment. (BUSINESSEUROPE Headlines)

On 21 March 2013, Adrian van den Hoven, Deputy Director General of BUSINESSEUROPE, participated in a panel discussion organised in the framework of the Russian International Affairs Council (RIAC) conference in Moscow, dedicated to the topic of potentials for partnership between Russia and the EU. In his intervention, Mr van den Hoven argued that EU-Russia cooperation can develop at three levels. More specifically, (1) at multilateral level through the WTO and the G20 coalition, (2) at regional level for instance through technical cooperation between both partners and (3) at bilateral level, through cross-border investment and achieving a liberalised visa regime. (BUSINESSEUROPE Headlines)

BUSINESSEUROPE has expressed several concerns about the proposal put forward by the Commission to amend the environmental impact assessment directive and stresses the need to use each opportunity to streamline and reduce burdens associated with existing provisions. Industry needs clear environmental planning rules to push ahead with industrial and infrastructure projects. The proposal of the European Commission to amend the environmental impact assessment risks leading to considerable delays for consent procedures, increasing administrative costs and creating greater legal uncertainties. The draft Zanoni report of the European Parliament is expected to be published in May already. The Committee vote is scheduled for July followed by the plenary vote after summer. (BUSINESSEUROPE Headlines)
On 20 March, Kristo Lehtonen, Chair of BUSINESSEUROPE’s Digital Agenda Taskforce, spoke at a breakfast on cloud computing organised by the European Parliament SMEs Intergroup in cooperation with BUSINESSEUROPE, together with representatives from the European Commission and the Parliament. BUSINESSEUROPE underlined the need for flexibility for cloud contracts and standards, fundamental to ensure that the EU cloud framework is future-proof. It is also important to take into account that the future EU data protection framework will have a huge impact on cloud computing and thus should not be an obstacle to its development. Mr Lehtonen highlighted that without a well functioning, widely developed and secure network the potential of cloud computing would remain unexploited.
In his second round of meetings with key MEPs, Director General Markus J. Beyrer is presenting our new 2013 Reform Barometer. Whilst many Members States made progress in structural reforms during 2012, companies continue to be concerned that such reform efforts lack the urgency that is clearly required. But reform progress in a number of areas impacting on productivity and investment, as well as trade and competitiveness, was much too slow. Markus J. Beyrer therefore explains why European companies see consolidation of public expenditure as a key priority for 2013. Other topics discussed include the upcoming plenary vote on ‘ETS backloading’, a future EU-US trade agreement, data protection, public procurement or the MFF.
On 20 March, Director General Markus J. Beyrer met Robert Madelin, Director General of DG CONNECT, to discuss implementation of the digital agenda, particularly with relation to data protection, cloud computing and digital infrastructure deployment. Markus J. Beyrer stressed that the digital agenda does not only impact the technology industry, but is also a key enabler of growth in the “traditional” sectors of the economy. Ensuring coherence and effectiveness in the efforts to achieve a full digital single market is therefore crucial. In particular, it is important to take fully into account the impact of the future EU data protection framework on the economy and on key growth-enabling technologies like cloud computing.

BUSINESSEUROPE published its European Reform Barometer, setting out the need for Member States to press ahead with structural reforms, ahead of the March European Council. (BUSINESSEUROPE Headlines)

BUSINESSEUROPE President Jürgen R. Thumann spoke at the European Banking Federation conference "Banks for Growth" on 20 March to address the challenge of financing business. Europe is entering a critical phase of its recovery and access to finance remains a major concern. Policy-makers need to reinforce the euro and ensure that financial market reforms strike the right balance between safeguarding financial stability and the financing needs of companies. They should also develop alternative sources of financing for companies. (BUSINESSEUROPE Headlines)

Setting out BUSINESSEUROPE’s priorities for the ongoing Union Customs Code (UCC) trilogue negotiations, Deputy Director General Adrian van den Hoven wrote a letter to Ambassador Tom Hanney, Deputy Permanent Representative at the Permanent Representation of Ireland to the European Union. Four areas are essential in which the Union Customs Code rules must be operational for companies. These are: the need for further simplifications for authorised economic operators (AEO), workable non-preferential rules of origin by keeping the rule of “last substantial transformation”, keeping the existing first-sale rule in the area of customs valuation, and some requests to simplify export procedures. (BUSINESSEUROPE Headlines)

BUSINESSEUROPE is very much concerned about several policy initiatives on innovation, intellectual property, procurement and technology taken recently by the Indian government. Examples are policies of “compulsory licensing”, a number of questionable decisions regarding patents, India’s advocacy of weakening IPR in certain global for (United Nations climate negotiations, World Intellectual Property Organisation), and domestic manufacturing requirements for technology purchases by both public and private-sector customers. In a letter sent to Prime Minister Manmohan Singh on 19 March, Director General Markus J. Beyrer wrote that among all major emerging economies India probably has most to gain from a business and policy environment that stimulates advanced manufacturing investment, innovation and technology. He encouraged the government of India to adopt and maintain policies that reassure foreign and domestic technology providers. (BUSINESSEUROPE Headlines)

On 19 March, Social Affairs Director Maxime Cerutti participated in a seminar organised by Euractiv on “jobs and growth EU strategy”. He underlined that the creation of jobs can best be achieved through mobile, dynamic and open labour markets. An effective EU employment policy should aim to provide the framework for national labour market reforms to achieve more flexible labour markets in the interest of companies, workers and job seekers. There are some positive examples of recent national labour market reforms. However, the current pace of labour market reforms is not enough to stimulate employment. BUSINESSEUROPE looks forward to entering into a negotiation with ETUC on an in-depth study on employment later this year. (BUSINESSEUROPE Headlines)
On 19 March, BUSINESSEUROPE’s Internal Market Committee members hosted Henrik Morch, Head of Unit in DG Internal Market and Services in the Commission, and Martynas Barysas, Internal Market Attaché at the Permanent Representation of Lithuania, to discuss the priorities in single market policy for the coming months. It was an opportunity to have an insight on preparation of the upcoming Lithuanian Council Presidency, as well as a chance to exchange views on the ongoing implementation of the SMA 1 and SMA 2 proposals with the Commission. It is crucial that all EU institutions step up their efforts to finalise the measures that can help further integrate the single market and support European companies in creating growth and jobs.

On 19 March, Markus J. Beyrer participated in a high-level panel discussion in the framework of the third annual European raw materials conference in Brussels. Reiterating BUSINESSEUROPE’s support to the raw materials strategy launched by the European Commission, Mr Beyrer focused his intervention on the external dimension of the strategy. Acknowledging the efforts conducted by the Commission with regard to increasing security of raw materials supply, either through WTO mechanisms or at bilateral level, Mr Beyrer did not neglect to raise European industry concerns about recent legislative proposals, such as the fuel quality directive and the transparency directive, that could not only undermine cooperation with major trading partners but also jeopardise the competitiveness of European companies. (BUSINESSEUROPE Headlines)
On the occasion of the 2013 European Consumer Summit organised by the Commission on 18-19 March 2013 in Brussels, Jérôme Chauvin, Director of BUSINESSEUROPE's Legal Affairs Department, participated in a high-level panel on consumer enforcement. He stressed the importance of enforcement to further build a single digital market for both businesses and consumers. BUSINESSEUROPE reiterated that enforcement begins with a correct implementation of consumer legislation. Timely and proper transposition of the consumer rights directive and the ADR legislation is therefore key. Enforcement also implies a shared responsibility driven by constructive dialogue among businesses, consumer organisations and public authorities.

The Horizon 2020 package will support sustained economic growth and strengthen the role of European business as a leading global actor if properly designed, implemented and funded. BUSINESSEUROPE recognises the contribution of all EU institutions to the Horizon 2020 package and would like to highlight key issues which must be properly addressed to avoid a further decline in business participation. Among them: reimbursement rules, certification of the methodology for calculating eligible costs, the fast-track instrument, interfaces between Horizon 2020 and cohesion funds. (BUSINESSEUROPE Headlines)

Proposals for developing a standard for research and innovation processes by the International Standardisation Body (ISO) are not considered necessary or helpful by European business. BUSINESSEUROPE warns that most businesses would be confronted with more bureaucracy, higher costs, less flexibility and no clear benefit deriving from the standardisation of R&I processes. However, more research about the current level of standardisation of R&D&I processes may help understand related benefits and costs. Finally, BUSINESSEUROPE underlines how existing ISO standards, like ISO 9001, already provide a viable framework which can be applied for improving R&I processes. (BUSINESSEUROPE Headlines)

In a letter signed by its Director General, Markus J. Beyrer, on 14 March, BUSINESSEUROPE expressed serious concerns about the ramifications that certain technical aspects of the transparency directive will have on the competitiveness of the European extractive sector as well as the security of supply of raw materials for the European industry as a whole. The letter further highlights problems stemming from the definition of projects and potential conflict of laws in resource-holding countries, providing concrete and constructive proposals on how to improve the wording of the directive to address these concerns. (BUSINESSEUROPE Headlines)
On 14 March, BUSINESSEUROPE’s VAT working group discussed proposals to improve Europe’s VAT system with high-level representatives from DG TAXUD. BUSINESSEUROPE expressed its support of the Commission’s proposals for an EU system in which VAT is levied in the country where the good is consumed, and welcomed the Commission’s efforts to achieve a uniform EU scheme for taxation of vouchers. But members also reiterated their concern about the detrimental impact that the proposed quick reaction mechanism would have on cross-border business in Europe. They underlined the need to focus on lasting EU-wide solutions to fight VAT fraud involving a closer cooperation between the tax authorities of Member States.

On 14 March, Markus J. Beyrer headed the employer delegation at the Tripartite Social Summit on “addressing the challenges of the recovery and the social dimension of the EMU, including the social dialogue”. Europe is entering a critical phase of its recovery. There are some positive signs, in particular less financial market uncertainty. The crisis has not washed the European social model away. Structural reforms are more than ever needed to bring back prosperity in Europe. The focus should be on providing the right framework for labour market reforms to be undertaken at national level. Social dialogue contributes to solutions when both partners have realistic economic expectations. (BUSINESSEUROPE Headlines)

On 14 March Hubert van Breemen, from BUSINESSEUROPE’s Dutch member federation VNO-NCW, took part in a panel on product safety at this year’s European Consumer Day, organised by the European Economic and Social Committee. BUSINESSEUROPE welcomes the objective of the Product Safety Package which aims to simplify and clarify the current product safety legislation and to strengthen market surveillance. However, Mr van Breemen stressed the importance of proportionate legislation and is concerned about excessive traceability requirements for certain products. (BUSINESSEUROPE Headlines)

In its message to the 14-15 March 2013 European Council BUSINESSEUROPE warned Heads of State and Government that unless Europe focuses on policy measures increasing competitiveness, building business confidence and boosting economic activity, the post-crisis divergence in growth performance that emerged in 2012 between the EU and other major economies can become a long-term phenomenon. “Europe is entering a critical phase of its recovery. There are signs of improvement but we are walking on thin ice. The pendulum can quickly swing back if doubts about the ability to pursue necessary reforms in the European Union re-emerge. The European Council and the EU Commission must ensure that the 2013 European Semester strengthens implementation of structural reforms to support growth and job creation” – said BUSINESSEUROPE President Jürgen R. Thumann. (BUSINESSEUROPE Headlines)
On 12 March in Warsaw, BUSINESSEUROPE Director General Markus J. Beyrer met the board of the Polish Confederation of Private Employers – Lewiatan, composed of, among others, Lewiatan President Henryka Bochniarz, Director General Lech Pilawski, and Deputy Director General Jakub Wojnarowski. During the meeting, the discussion focused on European politics and the current economic situation. During his stay in Warsaw, Mr Beyrer, together with Mr Wojnarowski and Piotr Sarnecki, Lewiatan’s Permanent Delegate in Brussels, met former Polish Prime Minister, Jan Krzysztof Bielecki, the Minister of State in the Chancellery of President of Poland, Olgierd Dziekonski, the First Vice President of National Bank of Poland Piotr Wiesiolek, and the Secretary of State for European Affairs, Deputy Minister for Foreign Affairs, Piotr Serafin. During these meetings, Mr Beyrer and the ministers went through several strategic policy areas for the European business community, among which labour market reforms in Poland and in the EU, competitiveness, economic issues, EU budget, budget and conditions in eurozone and Polands’ future accession to the euro area.

Participating on 11 March in a debate with young people from across Europe about the role of vocational education and training (VET) in tackling youth unemployment, Robert Plummer, Social Affairs Adviser at BUSINESSEUROPE, commented that labour market needs should be put at the centre of VET. By doing this and fostering the greater involvement of companies in the design and implementation of VET programmes young people’s prospects of successfully moving from education to employment can be significantly increased. The event, which was hosted by the Organising Bureau of European School Students Unions (OBESSU), also discussed the importance of apprenticeships, which with their combination of classroom and work-based learning are a key tool for raising young people’s employment potential. (BUSINESSEUROPE Headlines)
On 8 March, the Alliance for a Competitive European Industry (ACEI) met J. Potocnik, EU Commissioner for Environment. Following the meeting with President Barroso in 2012, the ACEI is meeting a number of Commissioners to discuss how EU policies can be supportive of industrial growth. Markus J. Beyrer, ACEI co-chair, stressed that the idea of absolute targets on resources consumption goes against the concept of resource efficiency and poses risks for Europe’s future growth prospects. Resource efficiency is to do more with less, and not forcing to do less with less, he continued.
Maija Laurila, Head of Unit at DG SANCO, and Hans Ingels, Head of Unit at DG ENTR, participated in BUSINESSEUROPE’s Free Movement of Goods Working Group on 7 March to discuss the Product Safety Package, published by the European Commission on 13 February. The package has been generally welcomed by members as it aims to simplify product safety legislation and get rid of many of the legal uncertainties in this area. A number of concerns nevertheless remain, such as for example ensuring that the legislation is proportionate with regard to the traceability obligations of companies.

On 7 March, Director General Markus J. Beyrer sent a letter and position paper to Rapporteur Anna Maria Corazza Bildt and all IMCO MEPs calling for further integration of Europe's services markets to generate growth, in view of the European Parliament's upcoming report on the single market for services. Despite progress made by the 2006 services directive, companies still face many regulatory and administrative barriers when offering their services across borders. (BUSINESSEUROPE Headlines)
On 6 March, Director General Markus J. Beyrer met Director General of BEUC Monique Goyens to exchange views on the main priorities of the two organisations. It was agreed that consumer protection accompanied by a strong business-consumer dialogue is key for strengthening the internal market. Both organisations are also committed to find ways to cooperate in future initiatives as alternatives to legislation.

On 6 March, René van Sloten, Chairman of Market Access Working Group, represented BUSINESSEUROPE at the seminar “Thai-EU Free-Trade Agreement: opportunities, challenges and expectations” organised inter alia by the Thailand Board of Investment and the Royal Thai Embassy in Brussels, in co-operation with BUSINESSEUROPE and its Belgian member federation FEB-VBO. The event was organised on the occasion of Thai Prime Minister Yingluck Shinawatra’s visit to Brussels and was attended by a delegation of high-level Thai and European businessmen. Mr van Sloten stated that BUSINESSEUROPE is looking forward to the start of negotiations for an ambitious agreement with Thailand. (BUSINESSEUROPE Headlines)

On 6 March, August Mesker, Chairman of the Transport Working Group, spoke at a conference on EU rail freight organised by FERRMED. BUSINESSEUROPE strives for a true single market for transport by removing remaining barriers in all modes of transport to enhance Europe's overall competitiveness. In this context, Member States need to step up their efforts to better implement already existing European railway legislation, further open up rail transport markets to competition and improve the interoperability of national networks. The 4th railway package contains many proposals that can contribute to achieving these aims. Improving rail freight services throughout Europe also requires increased and continuous investments in infrastructure. Therefore, BUSINESSEUROPE urges political leaders to safeguard the budget for the Connecting Europe facility proposed by the European Commission. (BUSINESSEUROPE Headlines)

On 6 March 2013 Adrian van den Hoven, Deputy Director General of BUSINESSEUROPE, took part in the conference “Smart Industrial Policy – Key Condition to Economic Growth” in Vilnius. He stressed the need for a coherent and cost-effective EU energy and climate policy to support industrial growth and competitiveness. A strong industrial base is vital and needs a long-term energy strategy for investment, growth and jobs in Europe, which gives predictability regarding cost-competitiveness, security of supply and climate objectives. (BUSINESSEUROPE Headlines)
On 6 March, Director General Markus J. Beyrer met Commissioner Michel Barnier to discuss how further to improve the functioning of the single market. Mr Beyrer supported the approach taken in the SMA I and SMA II, and appreciated the efforts made to improve the governance of the single market. During the meeting he raised a number of concerns about reporting obligations related to non-financial issues and the public procurement revision. Important areas where progress is needed also relate to integration of the single market for services, banking union and implementation of the unitary patent agreement.
BUSINESSEUROPE recently organised or participated in a series of events that look at the future of the multilateral trading system, discussing both the future of the WTO as an institution and the prospects of the stumbling Doha round negotiations. The main initiatives have been: organisation of a BUSINESSEUROPE seminar with Anabel González, candidate of Costa Rica for the post of WTO Director General, participation in meetings with several other candidates – Mari Elka Pangestu from Indonesia, Tim Groser from New Zealand, Herminio Blanco from Mexico – for the succession to Pascal Lamy. Represented by Reinhard Quick, Chairman of WTO working group, and Senior Adviser Carsten Dannöhl, BUSINESSEUROPE also takes part in the E15 Initiative, an expert group dialogue process proposing solutions to the global challenges facing the multilateral trading system.
Director General Markus J. Beyrer, in a series of meetings with key MEPs, has outlined the pillars on which a European growth strategy should rely on: a modern, sustainable European industrial policy, fiscal consolidation, reforms at national level, and smart investment in research and investment (Horizon 2020), SMEs (COSME) and interconnections (CONNECT). With a view to the April plenary vote on ‘backloading’ of the ETS, Mr Beyrer urged MEPs not to meddle with a system that functions. Its prime objective, to reduce 20% of CO2 emissions by 2020, will be achieved. Much more important will be the key debate on how to devise a smart, flexible system until 2030 that does not put European companies in a competitive disadvantage vis-à-vis its global competitors. He reminded MEPs that EU industry will emit less than 4% of global CO2 emission by 2030.
On 5 March 2013 a high-level delegation from the Association of European Business (AEB) in Russia visited BUSINESSEUROPE. Participants had the opportunity to discuss recent economic and trade policy developments in Russia as well as progress in implementation of Russia’s WTO accession protocol. The overall outlook for the Russian economy is relatively positive and bilateral trade and investment relations at an increase. Nevertheless, a lot remains to be done on implementation of Russia’s WTO commitments. The European business community – both in Russia and the EU – is closely monitoring recent worrying developments. AEB and BUSINESSEUROPE members agreed that ways of cooperation between the EU, Russian and possibly Customs Union (Russia-Kazakhstan-Belarus) authorities should be found in order for European companies to take full advantage of new investment opportunities.

On 5 March 2013 a workshop meeting took place in the context of the European Commission’s Advisory Committee on Vocational Training to discuss the role of SMEs in work-based learning. In particular, the discussions focused on how to put in place the infrastructure that will help and encourage more SMEs to offer apprenticeships. BUSINESSEUROPE was present at the meeting and highlighted the need for stronger partnerships between companies of all sizes, social partners and education and training providers. One such example is the Employer Ownership of Skills pilot project in the UK, which is a competitive fund open to employers to invest in their current and future workforce in England, either individually or working with colleges or other businesses in innovative partnerships. (BUSINESSEUROPE Headlines)
BUSINESSEUROPE held a seminar on 4 March to discuss China’s approval process for foreign investors and compare it with the treatment of domestic Chinese investors. A special emphasis was put on the upcoming negotiations for a bilateral investment treaty between the EU and China. Participants outlined some priorities that will have to be dealt with in the negotiations, in particular on market access. The discussion was based on a recent report by the US Chamber of Commerce which is BUSINESSEUROPE’s partner organisation in the US.

On 4 March, Markus J. Beyrer, BUSINESSEUROPE’s Director General, wrote to EU Commissioner for Environment J. Potocnik regarding DG Environment’s work on a common methodological approach to measure the environmental performance of products. BUSINESSEUROPE is calling on the Commission to define strictly the objective and scope of this tool in the forthcoming communication on the single market for green products. In particular, further work is needed on the definition of product categories for which it could be applicable cost-effectively, depending on the complexity of products. (BUSINESSEUROPE Headlines)

On 4 March, BUSINESSEUROPE's Director General Markus J. Beyrer participated in the macro-economic dialogue at political level. At the meeting, EU social partners discussed the current economic situation and policy responses with ECB President Mario Draghi, Irish Finance Minister and ECOFIN President Michael Noonan and Commissioner László Andor. Markus J. Beyrer highlighted that, while businesses remain heavily affected by uncertainty, European and national decision-makers have now a unique chance to address Europe’s economic challenges. He explained that the priority is to restructure public expenditures and reform labour and product markets to help private-sector investment to drive economic growth. He also stressed the importance of EU leaders refocusing on EU industry expansion, which is vital for Europe’s prosperity. (BUSINESSEUROPE Headlines)

BUSINESSEUROPE has continuously supported the Patent Cooperation Treaty (PCT) as the main tool for international patent protection and cooperation. This is why it has taken part in a consultation from WIPO on proposals from the United Kingdom and the United States on the one hand and the European Patent Office on the other hand to improve PCT. BUSINESSEUROPE welcomes in principle these proposals along the lines of its objective “to simplify and render more economical the obtaining of protection for inventions where protection is sought in several countries”. (BUSINESSEUROPE Headlines)

On 1 March, Director General Markus J. Beyrer met Jonathan Faull, Director General of DG Internal Market and Services, to present BUSINESSEUROPE’s views and priorities on key single market issues. The discussion focused on how to remove remaining barriers and address the outstanding challenges to unleash the single market’s full potential. (BUSINESSEUROPE Headlines)
On 28 February, BUSINESSEUROPE took part in a workshop on the EU trade and economic relations with the Association of Southeast Asian Nations (ASEAN) organised by the Committee on International Trade of the European Parliament. Eleonora Catella stated that BUSINESSEUROPE is looking forward to closer economic ties with a key region composed of emerging economies where many EU companies have strategic interests. We welcome the Commission’s efforts and support the country-by-country approach that can be followed by a region-to-region agreement. We support ambitious negotiations recognising the levels of development of each ASEAN country.

On 28 February 2013, BUSINESSEUROPE's Director General Markus J. Beyrer spoke at the opening session of the conference 'The business of Europe' organised by its Irish member federation IBEC in Dublin. After a short video on the strength and scope of the European economy, he explained the central role that companies play for growth and employment and outlined the road ahead to drive the next stage in the European recovery. The high-level event – a huge success – welcomed many prominent speakers, including President José Manuel Barroso and the Irish Prime Minister, Enda Kenny. (BUSINESSEUROPE Headlines)

On 28 February, Director General Markus J. Beyrer met the Irish Prime Minister, Taioseach Enda Kenny, whose country is holding the rotating Presidency of the European Union. He presented BUSINESSEUROPE’s priorities for the Irish Presidency. He underlined that clear choices will need to be made and the approach in some policy areas will need to be radically changed if we want more growth and more jobs in Europe. Tackling youth unemployment, concluding trade agreements with key economic partners and developing the single market is essential. But it will not be enough. The necessary re-industrialisation of Europe also requires moving to more competitiveness-friendly solutions to Europe’s energy and climate 2030 challenges. (BUSINESSEUROPE Headlines)

Barriers to youth employment existed before 2008 and the onset of the crisis has only served to exacerbate the situation. To counter the structurally high levels of youth unemployment BUSINESSEUROPE’s position paper on the Youth Employment Package highlights the longer-term need for the reform of labour markets and education systems. Labour market-related measures should aim to encourage employers to create new opportunities for young people. This includes through offering different forms of contractual arrangements. Finally, each national government should be able to appraise the need, scope and objectives of a possible youth guarantee scheme.(BUSINESSEUROPE Headlines)

In its response to the public consultation on structural optiond for the EU ETS, BUSINESSEUROPE calls for a stronger coordination of the EU energy, climate and industrial policies towards 2030. Short-term measures such as the ETS “backloading” proposal are opposed by BUSINESSEUROPE as they undermine the regulatory predictability through to 2020 as established under the EU ETS and further deteriorate the global competitiveness of Europe. Similarly, all the options proposed within the “Report on the state of the European carbon market in 2012” are only short-term measures that would not provide a comprehensive solution which would stimulate long-term growth and investment in Europe. (BUSINESSEUROPE Headlines)

On 27 February, during a workshop organised by the European Commission, BUSINESSEUROPE presented its concerns about the proposed guidance on gender-neutral job evaluation and classification systems. Once again, the Commission is taking the wrong approach by assuming that gender-based wage discrimination is common practice. In view of this workshop, BUSINESSEUROPE, CEEP and UEAPME in a joint letter expressed their concerns and doubts about this initiative, both its purpose and content. They also reaffirmed that the gender wage gap is caused by a range of interlinked factors such as segregated labour markets, the prevalence of stereotypes as well as different individual choices. (BUSINESSEUROPE Headlines)
On 21 February Françoise Le Bail, Director General of the Commission’s DG Justice, met BUSINESSEUROPE’s Advisory and Support Group to discuss data protection. Discussions focused on the risk that the current proposal could hamper data transfers in third countries. In ensuring a satisfactory level of data protection for European businesses, it is fundamental not to undermine their capacity to operate in a globalised world. The overall approach to the regulation needs to take into account that future rules must not represent an excessive burden for companies, which would jeopardise European competitiveness.

On 21 February, Director General Markus J. Beyrer spoke at the Commission Conference “Scientific support to the internal market” stressing how a scientific and fact-based approach to policy can boost the single market’s potential for growth and job creation. Promoting digital tools can drive up productivity and innovation in many “traditional” sectors and benefit society as a whole. Examples of this are e-procurement – which can improve efficiency and competition – and e-commerce, an enabler for new business opportunities which can provide more savings and choice for consumers. However, a number of trust and interoperability issues need to be addressed to make e-commerce and e-procurement work better, together with the remaining fragmentation of applicable national rules. (BUSINESSEUROPE Headlines)

BUSINESSEUROPE’s Entrepreneurship & SME Committee met Joanna Drake, Director at DG ENTR, on 20 February, and had a very fruitful discussion on current work for refining the design of the 2014-2020 SME-geared financial instruments (COSME and Horizon 2020 in particular), in the light of the 7-8 February European Council. It is vital that the COSME financial instruments are as properly funded and as easily accessible as possible for SMEs. Other subjects covered were: (1) follow-up of the Commission “Top 10 most burdensome EU acts” enquiry, (2) implementation of the 2020 Entrepreneurship Action Plan and (3) internationalisation of SMEs. (BUSINESSEUROPE Headlines)

On 20 February 2013, BUSINESSEUROPE sent a letter to the members of the European Parliament Internal Market and Consumer Protection Committee in view of their vote last Thursday on the opinion on the posting of workers enforcement directive. European businesses support amendments aiming at deleting the article in the Commission’s proposal establishing joint and several liability in subcontracting. Moreover, the need to find a balanced solution to allow Member States to put in place proportionate national control measures was also stressed. (BUSINESSEUROPE Headlines)

On 20 February Director General Markus J. Beyrer wrote to the European Parliament ahead of the Employment Committee vote on data protection, stressing the importance of being able to use employees’ consent when processing their personal data in an employment relation. The current proposal does not allow organisations to process employers’ data even if employees agree. This risks affecting negatively employees themselves, as in many cases processing of employees personal data is done in their own interest. (BUSINESSEUROPE Headlines)

On 20 February, Mechteld Oomen, Vice-Chair of BUSINESSEUROPE’s Internal Market Policy Committee, spoke at a hearing on the state of the internal market for services organised by the European Parliament, which will feed into its upcoming report on the issue drafted by MEP Anna Maria Corazza Bildt. Ms Oomen underlined the great growth potential of further integrating Europe’s services markets. However, to do this we need an integrated approach for services looking at all the remaining barriers for companies. It requires maximizing the impact of the services directive, but also clearly identifying all other administrative and legal obstacles that businesses still face, in particular in a cross-border setting, and addressing them decisively. More trust, more mutual recognition, transparency and openness are key elements in this respect. (BUSINESSEUROPE Headlines)
On 19 February, Director General Markus J. Beyrer participated in a meeting that was convened by László Andor, Commissioner for Employment, Social Affairs and Inclusion, to draw lessons from European social partners’ negotiations on working time. Now that the negotiations have failed, the Commission should go for a revision of the working time directive following a focused review. The priority is to reconcile EU law with practice by addressing the adverse effects of the European Court of Justice’s rulings on on-call time. The concept of on-call time should be defined in the directive besides existing definitions of working time and rest periods. This would naturally reduce the need to use the opt-out in some countries. At the same time, the opt-out should remain a permanent provision of the working time directive.

On 19 February, MEP Anna Maria Corazza Bildt attended a meeting of BUSINESSEUROPE’s Free Movement of Services Working Group to discuss the remaining obstacles for service providers in the single market in view of the European Parliament’s upcoming report on this issue. It is essential to fully implement the services directive and further improve the points of single contact, but also to tackle the remaining barriers for companies outside the remit of the directive, such as a lack of recognition of professional qualifications, the high number of regulated professions, conflicting national standards, double-insurance issues, lack of mutual recognition and other hurdles that hamper free movement. These barriers need to be addressed urgently to boost cross-border services for a more competitive EU economy that creates growth and jobs. (BUSINESSEUROPE Headlines)
On the occasion of the signature by 24 Member States of the international agreement establishing a unified patent court on 19 February 2013, the Commission organised a conference to present the new system and the implementation work. Thierry Sueur, Chairman of BUSINESSEUROPE’s Patents Working Group, called on Member States to ensure the quality and timeliness of the implementing work, stressing the importance of training judges to build up confidence in the new system. Users should be directly involved and consulted in the preparatory work before the new system becomes a reality.
On 18 February, BUSINESSEUROPE discussed the current economic situation and appropriate macro-economic policy responses with Commission, ECB and trade union representatives at macro-economic dialogue meeting at technical level. BUSINESSEUROPE’s Economics Director James Watson emphasised that, despite some signs of stabilisation in financial markets, improving business confidence and progress in macro-economic adjustments within the euro area, more needs to be done in order to boost investment and growth in Europe. In particular, difficult lending conditions and weak competitiveness in a number of European countries require a strengthening of the Economic and Monetary Union, progress in implementation of competitiveness-oriented product and labour market reforms, and measures to promote businesses’ access to finance.
Carsten Dannöhl, Senior Adviser, on 18 February met representatives from the Taiwanese Mission to discuss current trends in EU-Taiwan trade and investment. He was joined by Helen Kao from the Chinese National Association of Industry and Commerce in Taiwan. Taiwan ranks 20th among Europe’s major trade partners, and overall the trade relationship functions well. However, there are a number of bilateral issues on which both sides could accelerate their joint work, notably regarding the promotion of mutual investment, cooperation on technology and further opening-up of services markets.

In a letter addressed to Minister Bruton and Minister Sherlock, BUSINESSEUROPE underlined different ways of streamlining competitiveness in EU policies on the agenda of the Competitiveness Council meeting on 18-19 February 2013. Our concrete recommendations include measures such as avoiding to oppose small and medium-sized enterprises and “non-SMEs” in cohesion policy and regional state aid, signing the international patent agreement, distinguishing between access to publicly funded research and commercial exploitation of research results, implementing the priority structural reforms identified in the Annual Growth Survey and key recommendations of the single market integration report, ensuring that efforts to support new entrepreneurs as part of the 2020 entrepreneurship action plan are not undermined by unnecessary administrative burden for companies, etc. (BUSINESSEUROPE Headlines)


In a letter sent to the President of the European Parliament Martin Schulz, BUSINESSEUROPE Director General Markus J. Beyrer called for involvement of the EP plenary on the backloading proposal to ensure a full, democratic assessment of all views expressed and to provide the required political support for whichever decision is taken. The ITRE Committee negative vote on backloading proved that many question the approach proposed by the Commission to solve the inconsistencies in the existing climate and energy framework. On the same line, BUSINESSEUROPE has expressed its opposition to backloading and called for a debate on the structural reform of climate, energy and industrial policies for 2030. (BUSINESSEUROPE Headlines)

Speaking at the Foundation Forum “Social and employment policies for a fair and competitive Europe” in Dublin on 15 February, Renate Hornung-Draus, Chair of BUSINESSEUROPE’s Social Affairs Committee, stated that improving Europe’s international competitiveness and economic performance is a precondition for maintaining a high level of social aspirations. Social partners should be ready to take responsibility for contributing to labour market reforms, which – along with other measures such as reducing sovereign debts, restructuring economies and strengthening infrastructure – will help achieve a sustainable and job-rich recovery. (BUSINESSEUROPE Headlines)


On 14 February, BUSINESSEUROPE Director General Markus J. Beyrer wrote to President Barroso stressing the importance of the upcoming debate on a 2030 energy and climate policy for the future of Europe’s competitiveness. The competitiveness of European industry is harmed by significantly lower energy prices in the USA. The current energy and climate framework is further contributing to an increase in energy costs. Mr Beyrer calls on the Commission to set new foundations for Europe’s post-2020 energy and climate policy which truly guarantee competitiveness and energy security as well as a fair contribution to the global fight against climate change. (BUSINESSEUROPE Headlines)

European industry calls for a well functioning internal energy market. Its completion is decisive to support Europe’s competitiveness and ensure the objectives of security of supply at European level. Given the far-reaching impacts of capacity mechanisms, a careful impact assessment is certainly required. Interests of all market participants have to be balanced thereby taking into account existing investment challenges for future electricity capacities, the need for cost-effectiveness of implemented mechanisms and especially impacts on costs to final energy consumers. (BUSINESSEUROPE Headlines)

Europe needs a strong and competitive industry to ensure sustainable growth and economic recovery. This fact has been neglected by European policy-makers over the last years. BUSINESSEUROPE has approved a new position paper “Manufacturing a prosperous Europe” to address the need for an ambitious and comprehensive industrial growth strategy to contribute to a successful re-industrialisation of Europe. To compete in global markets, Europe must improve on labour productivity, support deployment of innovation and invest in talents. (BUSINESSEUROPE Headlines)
Led by Fabio Aromatici, Vice-Chairman of the International Relations Committee, a ten-member delegation, composed of BUSINESSEUROPE members and Advisory and Support Group companies, visited Moscow from 5 to 8 February. The delegation met officials of the Russian Ministry of Economic Development, the Eurasian Economic Commission as well as representatives of the business community in Russia, and exchanged views on progress made in implementation of Russia’s commitments under the WTO and the integration process in the Eurasian region. Both sides stressed the importance of increasing harmonisation of standards and regulations that would boost bilateral trade and investment and agreed to maintain cooperation in the future.

As a follow-up to its 2012 contribution to the Commission “Top 10” enquiry, BUSINESSEUROPE has drawn up 20 technical fiches giving details on administrative and regulatory burdens for SMEs that are linked to existing EU legislative acts, or that would be generated by some recent EU legislative proposals. These fiches have been sent to Commission Vice-President Antonio Tajani and to Commission Secretary General Catherine Day in particular. BUSINESSEUROPE calls on the Commission to engage in an ambitious work programme for simplifying/correcting past EU legislation. Member States should in parallel address the problems due to gold plating. D.Cloquet stressed these points at the meeting of the EU Network of SME Envoys on 8 February. (BUSINESSEUROPE Headlines)

Frank Maughan from the Permanent Representation of Ireland to the EU, presented the Irish Presidency’s programme for regional policy to BUSINESSEUROPE’s Regional Policy Working Group on 13 March. BUSINESSEUROPE members reiterated their concerns about excluding large enterprises from the productive investment of the European Regional Development Fund and outlined the potential negative consequences of such action for businesses, including SMEs. On the issue of revision of the regional state aid guidelines, BUSINESSEUROPE reiterated that excluding regional aid to large enterprises in most developed regions is not justified by unfounded arguments that such support is ineffective or potentially distortive to competition. (BUSINESSEUROPE Headlines)
Director General Markus J. Beyrer met the board of the American Chamber of Commerce in the EU on 7 February. He outlined BUSINESSEUROPE’s views on industrial competitiveness and free trade as part of a wider growth and jobs strategy. He underlined the need for the EU to stop over-regulating industry and to promote business-led innovation. On trade, he highlighted our strong support for the launch of EU-US trade negotiations and called on American investors in Europe to work closely with BUSINESSEUROPE to make this negotiation a success for jobs and growth.

Speaking at the informal Employment, Social Policy, Health and Consumer Affairs Council meeting in Dublin on 7-8 February, Renate Hornung-Draus, Chair of BUSINESSEUROPE’s Social Affairs Committee, stated that the current mismatch between the skills needed on labour markets and the skills developed in education and training institutions is an inefficient use of resources and is detrimental to growth and jobs. To overcome this closer cooperation is needed between education providers and employers, such as in the form of work-based learning models and apprenticeships in particular. (BUSINESSEUROPE Headlines)
On 7 February, business priorities for the upcoming EU-Japan free-trade negotiations were the subject of discussions between the Japan experts of BUSINESSEUROPE's members and high-level trade officials from the European Commission and the Mission of Japan to the EU. Following a presentation by Antonio Parenti (DG Trade) and Minister Manabu Miyagawa on their respective expectations, BUSINESSEUROPE made it clear that European companies want an ambitious deal that will remove longstanding barriers to trade and investment, creating new real business opportunities. Particular emphasis must be put on eliminating non-tariff barriers.


Director General Markus J. Beyrer wrote to Mathias Groote, ENVI Committee Rapporteur on the decision to clarify the ETS directive in view of implementing backloading, urging him to reconsider his approach on the issue. The letter was also addressed to shadow rapporteurs and group leaders in the ENVI Committee. BUSINESSEUROPE is opposed to backloading and believes it is necessary to have a debate involving all stakeholders on the structural reform of climate, energy and industrial policies for 2030. In preparation for this debate, BUSINESSEUROPE is working on competitiveness-friendly solutions for the energy and climate policy 2030 and looks forward to engaging in constructive exchanges on these very important issues later this year. (BUSINESSEUROPE Headlines)

On 6 February, speaking at a conference on the European Commission’s analysis of employment and social developments in 2012, Maxime Cerutti, BUSINESSEUROPE’s Director of Social Affairs, observed that the current pace of labour market reforms is not enough to hasten Europe’s recovery from the economic crisis and to stimulate employment. In particular, labour market and education reforms are needed urgently to address the structurally high levels of youth unemployment. (BUSINESSEUROPE Headlines)

On 5 February, BUSINESSEUROPE participated in a meeting of the structured dialogue between the European Commission, social partners and other regional bodies. BUSINESSEUROPE welcomed the clear effort by the Commission to simplify implementation of the cohesion rules currently under discussion, and stressed the importance of the common strategic framework to overcome an artificial separation of structural funds. Regarding the partnership principle, BUSINESSEUROPE supported the inclusion of the partnership principle in the regulation, as proposed by the Commission, but insisted on the distinctive nature of economic and social partners in the process. (BUSINESSEUROPE Headlines)

On 4 February, Senior Adviser Carsten Dannöhl discussed business trade priorities with H.E. Mari Pangestu, candidate from Indonesia for the position of WTO Director General. He highlighted that BUSINESSEUROPE strongly supports the WTO but also expects it to deliver some clear results, irrespective of the current stalemate in the Doha round negotiations. Hereby a trade facilitation agreement seems to be a low-hanging fruit that could be agreed at this year’s Bali WTO Ministerial Conference. The WTO also urgently needs to tackle further issues that affect day-to-day business in companies nowadays, such as guaranteeing free and undistorted access to raw materials, facilitating and protecting investment or the need for multilateral competition rules.

Speaking at the extraordinary Employment Committee meeting on wage developments on 1 February 2013, Renate Hornung-Draus, Chair of BUSINESSEUROPE Social Affairs Committee, underlined that the proposed EU tripartite wage forum is not the right approach. Wage bargaining is a national competence. The EU institutions should refrain from intervening in issues which are best addressed by national social partners. Instead, social partners should be consulted by the EU and national authorities on the labour market aspects of the Annual Growth Survey and Country-Specific Recommendations as part of the European Semester process. (BUSINESSEUROPE Headlines)

On 31 January, Adrian van den Hoven spoke at a transatlantic event organised by the Federation of Enterprises in Belgium (VBO-FEB) and Belgian Business for Europe. He presented the European business perspective on a possible EU-US free-trade agreement and stressed the impact that an economic deal would have on bilateral economic growth and employment creation in both economies, on strengthening the competitiveness of the main industries and finally on restoring transatlantic leadership in trade policy. BUSINESSEUROPE recommends the launch of ambitious EU-US negotiations and stresses the importance of addressing regulatory issues and non-tariff barriers. (BUSINESSEUROPE Headlines)

On 30 January, Cecilia Zappalà represented BUSINESSEUROPE in a stakeholder meeting organised with MEP Jan Philipp Albrecht, rapporteur for the data protection regulation. The draft report published in January needs to better balance the protection of citizens’ privacy and the free flow of data within the single market. The current draft imposes significant burdens on industry in terms of data protection impact assessments and documentation requirements, without proportionate benefits for consumers. BUSINESSEUROPE addressed specifically the issues of data processing in employment context, the reference to the possibility of collective redress and the heavy administrative burdens imposed by the regulation. (BUSINESSEUROPE Headlines)

On 29 January, Maxime Cerutti spoke at a debate on “public-private partnerships to develop social policies” organised by Edenred and Policies & Practices. BUSINESSEUROPE believes that, especially in times of pressure on public budgets, Europe can gain a lot from stronger cooperation between the public and private sectors in the delivery of public services. Public-private partnerships (PPPs) offer value for money, enforceable quality standards, wider choice, innovative solutions and new sources of financing. They can also support social policies and create added value through integration of public and private-sector skills, knowledge and expertise. Yet, deployment of PPP structures is underdeveloped in Europe. Therefore, the opportunities they offer need to be better promoted, notably by creating more public awareness and offering more guidance and training to public authorities responsible for public tendering. (BUSINESSEUROPE Headlines)

Labour market needs should be put at the centre of education through developing stronger partnerships between education providers and employers. This is the central message of BUSINESSEUROPE’s position paper, which responds to the Commission communication on “Rethinking Education”. To achieve this, continuous and resource-efficient investment in education, on a cost-sharing basis between those who benefit from education – the state, companies, young people and workers, is necessary. Moreover, in line with the proposed EU Alliance for Apprenticeships, BUSINESSEUROPE advocates the principles of work-based learning and the strengthening of dual-learning elements in Member States’ existing systems. (BUSINESSEUROPE Headlines)

On 28 January, speaking in Madrid at a conference celebrating the 40th anniversary of the European Trade Union Confederation (ETUC), BUSINESSEUROPE Director General Markus J. Beyrer stressed that employers agree with trade unions that the main problem in Europe is that we don’t have growth. This raises serious questions about the financial sustainability of national social systems. If we want to preserve them, we need growth to create jobs and finance social security in the long run. In this context, he urged the trade unions to support BUSINESSEUROPE and its member federations’ efforts to increase competitiveness and re-industrialise Europe. (BUSINESSEUROPE Headlines)

The 6th EU-Brazil business summit on 23 January 2013 brought together the highest-level CEOs from Europe and Brazil. Organised by BUSINESSEUROPE, the Brazilian National Confederation of Industry (CNI) and EUROCHAMBRES, the event served as an important forum for an open discussion about the current and future challenges and opportunities shaping the business environment in Brazil and the EU. European Commission President José Manuel Barroso and Fernando Pimentel, Brazilian Minister of Development, Industry and Foreign Trade, also addressed the participants. In a joint statement, EU and Brazilian business leaders called for action to expand trade and investment opportunities for companies in agribusiness, telecommunications, pharmaceuticals, infrastructure, energy and sustainable technologies. (BUSINESSEUROPE Headlines)

A working lunch was organised on 23 January by Ms Darmanin and Mr Lannoo, respectively Rapporteur and Co-rapporteur for the EESC report on the Commission action plan to improve SME access to finance. While repeating BUSINESSEUROPE’s call for beefing up the full spectrum of EU SME-geared financial instruments, Daniel Cloquet underlined the increased demands SMEs face in terms of the collateral that they have to mobilise for getting a loan. Hence the importance of the guarantee schemes and other risk-sharing arrangements planned under COSME, Horizon 2020 or the Cohesion Fund. In the short term, the EIF (European Investment Fund) should step up its efforts for disseminating, at national and regional level, the best practices in the area of guarantee schemes. The EIF should also intensify initiatives aimed at blending national, regional and EIF resources in joint guarantee schemes. (BUSINESSEUROPE Headlines)

Director General Markus Beyrer called on the MEPs from the ITRE and ENVI Committees to reject the backloading proposal in a letter sent on 22 January. He stressed that backloading must not be regarded as a tool to quickly start implementation of the structural options for the ETS included in the carbon market report presented by the European Commission. The letter highlights the need for a debate involving all stakeholders on real structural reforms of climate, energy and industrial policies post-2020. (BUSINESSEUROPE Headlines)

On 22 January Director Jérôme Chauvin participated in a roundtable debate organised by British MEP Malcolm Harbour, Chairman of the European Parliament Internal Market Committee, on the review of the balance of competencies between the EU and Member States, focusing especially on the UK. BUSINESSEUROPE stressed that since 1992 the single market has helped create almost 3 million new jobs in Europe, and EU countries currently trade twice as much with each other as they would do in the absence of a single market. With annual cross-border investment flows of €430 billion and 70% of Member States’ exports being to other EU countries, the benefits from closer integration are undeniable. More information: http://www.businesseurope.eu/content/default.asp?PageID=568&DocID=30727
The steady increase of patent applications globally has prompted a growing cooperation between patent offices in Europe, the US, Japan, China and South-Korea. BUSINESSEUROPE has led efforts to improve cooperation between industries and patent offices in the five regions. A number of projects are underway to align processes and tools with the aim of reducing costs for companies and avoiding duplication of work. On 22-23 January, representatives of the five patent offices met industry representatives in The Hague to further discuss how to bring the operations of patent offices closer in order to reduce costs, improve quality and timeliness for companies.

With a view to the trialogue negotiations on the Horizon 2020 package, BUSINESSEUROPE stresses that the budget proposed by the European Commission for Horizon 2020 - EUR 80 billions over the period from 2014 to 2020 - is the minimum amount required if the 2013 level of funding is to be continued for projects in the Framework Programme 7, the European Institute of Innovation and Technology and the Competitiveness and Innovation Framework Programme. BUSINESSEUROPE puts forward six key issues to be addressed when the dossier is finalised. (BUSINESSEUROPE Headlines)
On 15 January, Stephen Eule, Vice-President for the US Chamber of Commerce’s Institute for 21st Century Energy, was welcomed as keynote speaker at BUSINESSEUROPE’s Energy Working Group meeting. Mr Eule presented current energy opportunities and challenges in the US and outlined recent developments in the energy market resulting from the shale gas revolution. At present, shale gas production represents a big driver of employment in oil industry and US economic growth. Mr Eule further highlighted its contribution to reducing US dependency on import of energy sources significantly, as well as its evolvement into a substantial competitive advantage for US industries on global markets.
On 15 January, BUSINESSEUROPE Director General Markus J. Beyrer, together with Fedil President Robert Dennewald and Director Nicolas Soisson, met Luxembourg Minister of Economy and Foreign Trade, Etienne Schneider, and Minister of Labour, Employment and Immigration, Nicolas Schmit. Mr Beyrer and Minister Schneider discussed reindustrialisation of Europe, energy policy and internal market (digital agenda), whereas with Minister Schmit the discussion covered the situation of European labour market and the posting of workers directive. At the end of his visit, Mr Beyrer attended an official Fedil reception during which Luxembourg Prime Minister Jean-Claude Juncker addressed representatives of the business community.

BUSINESSEUROPE has expressed clear support to the Entrepreneurship 2020 Action Plan adopted by the Commission on 9 January. In a press release, BUSINESSEUROPE underlined that the launch of the plan is a first important step. Full attention must now be paid to its effective implementation, and to ensuring that all EU policies contribute to creation of an environment that stimulates entrepreneurship along the various phases of a company’s life. (BUSINESSEUROPE Headlines)
On 8 January, Adrian van den Hoven, BUSINESSEUROPE’s Deputy Director General, met MEP Reinhard Bütikofer, Rapporteur for the European Parliament report on industrial policy, to address the need for a strong pro-competitive EU agenda. The Commission communication and its emphasis on re-industrialising Europe is a step into the right direction, however requires commitment from all EU institutions, in particular the European Parliament. A. van den Hoven stressed the importance of smart regulation and protecting intellectual property rights, as they represent essential pillars to spur industrial competitiveness.