NEWSLETTER 25 – 29/01/2010

TABLE OF CONTENTS

EU / FINANCIAL SERVICES ..................................................................................... 2

Europe's winding road towards a payment revolution .................................................... 2
Pensions should be top priority in CEE, says IMF.......................................................... 3
ECB wants better exchange of information between macro- and micro-prudential levels
of financial supervision .................................................................................................. 4
EU / INTERNAL MARKET ......................................................................................... 5
Charlie McCreevy does not believe there should be single European supervisory
framework for financial services sector .......................................................................... 5
EU / SOCIAL .............................................................................................................. 5
Spanish Presidency to work closely with EESC on new social pact for the 21st century 5
'Social lobby' pins hopes on Spain's EU presidency....................................................... 6
ECONOMY ................................................................................................................. 7
Employment and social security needs in post-crisis period........................................... 7
OTHER NEWS AND EVENTS ................................................................................... 8
Barroso meets Bulgaria's new commissioner-designate ................................................ 8
EU / COURT OF JUSTICE....................................................................................... 10
Calendar of the Court of Justice................................................................................... 10
THE ANALYSIS IN DEPTH...................................................................................... 12
'Social lobby' pins hopes on Spain's EU presidency..................................................... 12

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 NEWSLETTER 25 – 29/01/2010

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EU / FINANCIAL SERVICES
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Europe's winding road towards a payment revolution

Payments in 31 European countries are about to get faster, cheaper and easier once the EU's ambitious
Payments Services Directive is fully translated into national law. However, member states have begun to
opt out of some parts of the rulebook, making a level playing field harder to attain.

In practice, all banking institutions will have to choose which parts of the new rules they
want to adopt and which will be the most
deliver payments as quickly as their
competitors, regardless of where they profitable, argue critics. "Customers may end
up footing the bill for lost or stolen cards,"
are located or whether they are domestic or
Marc Rothemund from Brussels-based think-
cross-border payments. Instead of five
tank the Centre for European Policy Studies
working days, payments should take place
within two working days or less according to (CEPS) told EurActiv. If your payments card

the new directive, which has been transposed is lost or stolen, member states can decide

in all but 11 of the 31 participating whether the payer is liable for the costs of the

countries. The PSD will apply across the 27 stolen card. Consumer group BEUC argues
that the PSD's rules on fraud - a payer can
member bloc in addition to Switzerland and
EEA (European Economic Area) countries request their money back up to eight weeks

Iceland, Liechtenstein and Norway. In the after a payment - are not good enough. "This

case of fraud, money can be recalled eight is a preventative not a curative measure,"

weeks after a payment has been made. And says Anne Fily from Brussels-based
consumer group BEUC. EuroCommerce, a
if these conditions are not respected, then the
retailers' lobby in Brussels, has long
user - whether a retailer or consumer - has
the legal grounds to do something about been tussling with the European Commission
to put an end to multilateral interchange fees
it. Though on paper the directive's benefits
(MIFs), which merchants pay for accepting
outweigh its weaknesses, observers agree
that it favours banks and card companies payments from certain cards. These charges

over the merchants, retailers and are higher on credit cards than they are on

consumers who will be using the debit cards. "Merchants should have the right
to compensation as they face charges as
scheme. The PSD's weaknesses lie in its opt-
outs, which allow member states to pick and high as 10% on any given transaction,"

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argues Cecile Gregoire from other countries already choosing to reject the
EuroCommerce. EuroCommerce, which was merchant's right to surcharge. "Most
consulted during the drafting of the PSD, merchants don't want to be in a position
insisted on a "merchant's right to surcharge" where they have to surcharge, because it
to recover the costs of an MIF on a card makes them unpopular with their customers,"
payment. However, this also became an opt- Gregoire added.
out, with Germany, France and Italy among
(Euractiv.com, 25/01/10)

Pensions should be top priority in CEE, says IMF

Central and Eastern European (CEE) countries should tackle pensions first when it comes to structural
reforms , according to a representative of the International Monetary Fund (IMF). And Romania is taking its
first step.

are set to go ahead in the region this year:

Speaking at the annual CEE Forum in
Vienna, Austria this week, Jeffrey Franks, Ukraine (Jan-Feb 2010), Hungary, the Czech
Republic, Slovakia (Spring 2010), Latvia, and
adviser at the European Department of the
Poland (Autumn 2010). In Romania this year
IMF, said: “The most important reform step
will see a reform of the first pillar, explained
countries in the CEE region have to take is to
reform their pension system. “European Andreea Paul Vass, personal advisor to the

countries share a common problem of ageing Romanian prime minister. For the reform the

but in some CEE countries birthrates are actual retirement age, which currently is often

even lower and there is emigration as well,” below 50, will be tackled as well as the

he explained. While many countries in the number of invalids (close to one fifth) with

region have already introduced a mandatory special pension arrangements, Vass told IPE.
Furthermore there will be no indexation of
second pillar, in some cases the state
pension system is still ill-equipped to remain state pensions for 2010 and there might be a

sustainable over the long-term. Other hike in the statutory retirement age as well.

participants in the panel discussion including “There is no consensus on that last proposal

representatives from Serbia, Slovakia and yet but I think we will get there in the end,”

Romania, all of whom agreed that pensions she pointed out. In the second pillar

should be top on the agenda. However, contributions have been raised to 2.5% again

decision making might be hindered in the – going back to the original schedule of

region this year as at least seven elections

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increasing them every year after a crisis- (IPE.com, 22/01/10)

induced freeze in 2009.

ECB wants better exchange of information between macro- and micro-

prudential levels of financial supervision

The opinion of the European Central Bank (ECB) on the legislative package reforming the European system
of financial supervision was published in Official Journal C13 of Wednesday 20 January. The Bank says it
“broadly welcomes the proposed institutional framework” provided for: - the creation of a European Systemic
Risk Board (ESRB) responsible for giving warning of systemic risks to financial stability; - the conversion of
the three European national regulators' committees in banking, insurance and securities into European
Supervision Authorities (ESAs) with binding powers over national supervisors on condition that these
powers do not impinge on national budgetary sovereignty.

So that the proposed institutional framework
functions properly, the ECB takes the view
that cooperation between the ESRB and the
ESAs requires “effective information sharing
procedures” and “timely access of the ESRB
to all relevant information required to perform
its duties, including micro-prudential
information relevant for macro-prudential
analysis”. In order to remove any obstacles to
the smooth flow of information, it proposes
strengthening the texts on the table requiring
ESAs to share information with national
supervisors, the European System of Central
Banks and the ESRB. The ECB also wants to
be able to ask the Commission to decree an
emergency situation, as an ESA, the Council
or the ESRB can, and it wants the
Commission to consult it before taking such a
decision. The ECB wants to be invited, just
like the Commission and the ESRB, as an
observer at meetings of the joint committee
of European supervision authorities, whose
purpose is to ensure cross-sectoral
consistency in ESA activities. The ECB gives
unreserved support to the European Council
request for the establishment of a single
rulebook applicable to all financial institutions
in the single market. It says that “the ESAs …
are well placed to assist in the process of
harmonisation in the financial sector by
contributing to the establishment of high
quality common regulatory and supervisory
practices, in particular by providing opinions
to the EU institutions and by developing
guidelines, recommendations, and draft
technical standards”.
(Ed Agence Europe, 28/01/10)

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EU / INTERNAL MARKET
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Charlie McCreevy does not believe there should be single European supervisory
framework for financial services sector

The outgoing commissioner for the internal market, Charlie McCreevy, has expressed scepticism about the
possibility of having, in time, a single European supervisory framework in the field of financial services.

During an interview with the Irish Independent, government. We don't even have a European
he said: “It is illogical to try to have a single government. Some people think we do -
market without having a single supervisory especially in the Commission - but we don't”.
framework. But there will have to be national The former finance minister for Ireland said he
supervision as part of that, because the would withdraw from political life once his
national taxpayer stands behind the system. I mandate as European commissioner was over.
don't believe we'll ever have just one (Ed Agence Europe, 27/01/10)
supervisory body. Not unless there is a world

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EU / SOCIAL
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Spanish Presidency to work closely with EESC on new social pact for the 21st century

The day after Spanish Premier José Zapatero presented his country's EU Presidency Programme to the
European Parliament, EESC Members discussed the Presidency's priorities with Mr Diego López Garrido,
Spanish Secretary of State for European affairs. "This timing underlines the importance we attach to the
social dialogue and to the EESC's role in facilitating it", stressed López Garrido.

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"Economic union will be the leitmotiv of our
Presidency, nothing more, nothing less",
Mr López Garrido said. He underlined the need
to fully implement 20-year old agreements that
paved the way for the single currency. He
pointed out that economic union should have
preceded monetary union, but this had not
happened. He then pledged to strive for an EU-
wide cooperation between economic,
employment and social policies. "The EESC
will support you in this endeavour. We also
hope and call on Member States to muster the
political will required to achieve this", added
EESC President Mario Sepi. In the same vein,
Mr López Garrido hammered home the need for
the 2020 Growth Strategy to be based on
binding commitments, rather than on
recommendations. The Lisbon Strategy's failure
to achieve economic convergence was largely
due to its voluntary character, he said. Mr
López Garrido also called for "a new European
social pact for the 21st century". Such a pact
would encompass active job creation policies,
equal opportunity policies and appropriate
migration and asylum policies. He called for
greater civil society participation in designing
policies and underlined the importance of social
dialogue. Lastly, he announced that the
Presidency will trace out a major blueprint for
future developments in the EU insofar as it will
tackle practical issues glossed over by the
Lisbon Treaty. In their statements, EESC
Groups' Presidents insisted on the need to
consolidate a social Europe and to strengthen
the internal market; they called for the EU not
only to speak with one foreign policy voice, but
also to deliver a single message based on
shared values.
(eesc.europa.eu, 25/01/10)

'Social lobby' pins hopes on Spain's EU presidency

Dismayed by the lack of a social dimension to the European Commission's draft '2020 Strategy', centre-left
MEPs and trade unions told EurActiv that the Spanish EU Presidency was their best hope of securing a
genuine social commitment in Europe's next ten-year economic plan.
(Euractiv.com, 28/01/10)

IN DEPTH ANALYSIS BELOW (page 12)

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ECONOMY
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Employment and social security needs in post-crisis period

EU employment and social security ministers will be gathering at an informal meeting in Barcelona on 28 and
29 January, under the chairmanship of the Spanish minister for employment and immigration, Celestino
Corbacho. The EU 2020 strategy will be at the heart of the work, to be divided into three plenary sessions
focusing on the following themes: - end of the crisis, safeguarding employment and inclusive labour markets; -
new skills and changes in the employment sector; - and social security and social cohesion. In order to fuel
discussion on these three themes, the EU Presidency has put a series of questions to those taking part, asking
them for their opinion.

The social Troika (Spanish, Belgian and
Hungarian ministers for employment and social
security) will also meet in Barcelona on
Wednesday 27 January, with the European
social interlocutors (representatives
European trade unions and European
employers' organisations) and with those of the
European Social Platform (representing
European NGOs). Despite the diversity of
situations between member states, “social
protection systems are performing a key role as
automatic stabilisers of the social impact of the
crisis”, the Spanish EU Presidency's note
reads. This stabilising role will continue during
coming months and it is important to bear this
in mind when one defines an exit strategy and
the future post-2010 European strategy. On this
last point, the Presidency considers
necessary to pay greater attention to promoting
the ILO's Decent Work Agenda and to
extending social security beyond borders, while
ensuring that the regional economic integration
process in the world is also accompanied by
progress in terms of social cohesion in these
sectors. The Presidency therefore calls on the
of ministers to answer the following questions: (1)
Are you on the same wavelength when it
comes to the importance of reinforcing work at
European level, in the aim of addressing issues
of adequacy and sustainability of pension
systems? Do you consider it important for this
integrated approach to contribute to a better
articulation of social security with other related
policies? Which would be the policy areas, from
your national perspective, on which we could
focus our joint work? (2) In your view, which,
among the different mechanisms available
within the open method of coordination on
it pension and social protection, is of particular
interest or added value? (3) If social security
systems take on greater importance in the
future EU external dimension, what would be

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the possible lines for tackling this strategic and
necessary debate? Would it be a good thing to
have closer collaboration with the ILO on such
matters? On the subject of crisis
maintenance of employment and inclusive
labour markets, the Presidency asks ministers
how they feel on the following points: - Which,
in your opinion, are the main lessons to be
drawn from this crisis which has had an impact
on the EU lowering its growth
competitiveness prospects? According to your
experience, which are the major challenges
faced by the EU, in terms of labour market
markets, and which are the opportunities
generated by the labour markets? Which are
the most effective policy measures to reduce
the impact of unemployment for young people?
Finally, the slogan “new skills and changes in
exit, employment” remains valid. Minsters will give
their opinions to the Presidency on the
following points: changes to be included in life-
long learning in order to match it with the
capabilities and skills required by future jobs;
political measures implemented in countries to
and stimulate the development of training and skills
targeted at growing sectors such as green jobs,
social and health services, and sectors linked
to new technologies.
(Ed Agence Europe, 28/01/10)

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OTHER NEWS AND EVENTS

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Barroso meets Bulgaria's new commissioner-designate

European Commission President José Manuel Barroso commended new Bulgarian Commissioner-designate
Kristalina Georgieva after meeting her in Brussels yesterday (21 January), reports Dnevnik, EurActiv's
partner in Bulgaria.

Georgieva will inherit the portfolio initially Tuesday (19 January) following a questionable
attributed to Rumiana Jeleva (International performance at her hearing and various
Cooperation, Humanitarian Aid and Crisis accusations of wrongdoing. Kristalina Georgieva
Response). Jeleva withdrew her candidacy on , a vice-president of the World Bank,

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commented that she was very happy with her
portfolio. "I was very lucky, because my portfolio
relates to a field where I feel the best prepared.
In the World Bank we deal a lot with
humanitarian assistance, we work closely with
organisations which provide such assistance,
like the UN, the International Red Cross. I have
worked in conflict zones, and, frankly speaking,
I feel best prepared for this field of activity,
rather than any another Commission portfolio,"
she stated. Her meeting with Barroso was also
aimed at reaching agreement on the conditions
of her joining the Commission, as Georgieva is
still employed by the World Bank. "I am sure
that a solution can be found so that both
obligations under the World Bank [for phasing-
out] and the Commission [for phasing-in] will be
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25 – 29/01/2010
respected," Georgieva said. The European
Parliament's development committee is
expected to audition Georgieva on 3 February.
If confirmed, the entire Commission would be
voted upon on 9 February in Strasbourg. The
Bulgarian daily '24 chasa' wrote yesterday that
by appointing Georgieva, Bulgaria's Prime
Minister Boyko Borissov had "reverted to plan
A". Georgieva should have been Bulgaria's first
choice is the irony of its message. By appointing
Nickolay Mladenov , a young politician well-
trained in foreign affairs, to replace Jeleva as
the country's foreign affairs minister, Borissov
also made an obvious decision that should have
been made earlier, the daily writes.
(Euractiv.com, 22/01/10)
 NEWSLETTER 25 – 29/01/2010

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EU / COURT OF JUSTICE
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Calendar of the Court of Justice

Language
Date Case of the Courtroom
case
Tuesday 12/01/2010 Judgment Social policy DE New Great
09:30 C-229/08 Wolf Courtroom
Court of Justice - Grand Chamber
Reference for a preliminary ruling – Verwaltungsgericht Frankfurt am Main (Germany) –
Interpretation of Articles 6(1) and 17 of Council Directive 2000/78/EC of 27 November 2000
establishing a general framework for equal treatment in employment and occupation (OJ
2000 L 303, p. 16) – Prohibition of discrimination on grounds of age –Differences of treatment on
grounds of age which are ‘objectively and reasonably justified’ and the ‘need for a reasonable
period of employment before retirement’ – National provision laying down a maximum recruitment
age of 30 for officers in the fire service
Advocate General : Bot
Tuesday 12/01/2010 Judgment Social policy DE New Great
09:30 C-341/08 Petersen Courtroom
Court of Justice - Grand Chamber
Reference for a preliminary ruling – Sozialgericht Dortmund (Germany) – Interpretation of Article
6 of Council Directive 2000/78/EC of 27 November 2000 establishing a general framework for
equal treatment in employment and occupation (OJ 2000 L 303, p.16) – Prohibition of
discrimination based on age – Concepts of “legitimate aim” which may justify different treatment
based on age and “appropriate and necessary means” of achieving that aim – National provision
fixing a maximum age for a panel dentist, with the aim of protecting patients’ health
Advocate General : Bot
Thursday 14/01/2010 Judgment Social policy FR New Great
09:30 Joined AGIM and Others Courtroom
cases C- Court of Justice - Third Chamber
471/07
C-472/07
Reference for a preliminary ruling – Conseil d’État (Belgium) – Interpretation of Article 4(1) of
Council Directive 89/105/EEC of 21 December 1988 relating to the transparency of measures
regulating the prices of medicinal products for human use and their inclusion in the scope of
national health insurance systems (OJ 1989 L 40, p. 8) – Price freeze in respect of medicinal
products imposed by the competent authorities of a Member State – Scope of the obligation on the
Member State to carry out a review, at least once a year, to ascertain whether the ‘macro-economic’
conditions justify that that freeze be continued – Review only as to whether healthcare expenditure
is manageable, or need to take account of the macro-economic effects of the price freeze on the
pharmaceutical industry?
Advocate General : Trstenjak
Thursday 14/01/2010 Judgment Social policy CS New Great
09:30 C-343/08 Commission v Czech Republic Courtroom

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Court of Justice - Third Chamber

Failure of a Member State to fulfil obligations – Failure to adopt, within the prescribed period, all
the provisions necessary to comply with Directive 2003/41/EC of the European Parliament and of
the Council of 3 June 2003 on the activities and supervision of institutions for occupational
retirement provision (OJ 2003 L 235, p. 10)
Advocate General : Bot

Tuesday 19/01/2010 Judgment Social policy DE New Great

09:30 C-555/07 Kücükdeveci Courtroom
Court of Justice - Grand Chamber
Reference for a preliminary ruling – Landesarbeitsgericht Düsseldorf (Germany) – Interpretation of
the principle of non-discrimination on the ground of age, and of Council Directive 2000/78/EC of
27 November 2000 establishing a general framework for equal treatment in employment and
occupation (OJ 2000 L 303, p. 16) – National legislation relating to dismissals establishing notice
periods which increase with length of service but in which any period of employment before the
employee reaches the age of 25 is disregarded
Advocate General : Bot
Thursday 21/01/2010 Opinion Social policy IT Courtroom
09:30 Joined Bruno and Pettini III - Level
cases C- Lotti and Matteucci 6
395/08 Court of Justice - Second Chamber
C-396/08
Reference for a preliminary ruling – Corte d’Appello di Roma (Italy) – Interpretation of Council
Directive 97/81/EC of 15 December 1997 concerning the Framework Agreement on part-time work
concluded by UNICE, CEEP and the ETUC – Annex: Framework agreement on part-time work (OJ
1998 L 14, p. 9) – Part-time workers working some months of the year and resting in the other
months – Exclusion of periods not worked in the calculation of pension rights
Advocate General : Sharpston
Thursday 21/01/2010 Hearing Social policy DE New Great
09:30 C-486/08 Zentralbetriebsrat der Landeskrankenhäuser Tirols Courtroom
Court of Justice - First Chamber
Reference for a preliminary ruling – Landesgericht Innsbruck – Interpretation of Clause 4(1) and (2)
of the Annex to Council Directive 97/81/EC of 15 December 1997 on part-time work concluded by
UNICE, CEEP and the ETUC (OJ 1998 L 14, p. 9), of Clause 4 of the Annex to Council Directive
1999/70/EC of 28 June 1999 concerning the framework agreement on fixed-term work concluded
by ETUC, UNICE and CEEP (OJ 1999 L 175, p. 43), and Article 14(1)(c) of Directive 2006/54/EC
of the European Parliament and of the Council of 5 July 2006 on the implementation of the principle
of equal opportunities and equal treatment of men and women in matters of employment and
occupation (OJ 2006 L 204, p. 23) – National legislation governing workers employed under a
private law contract excluding from its scope certain categories of workers, part-time, casual or
those employed under a fixed-term contract – Disadvantageous provisions foreseen concerning the
right to annual leave, for staff changing from full-time work to part-time work and for staff taking
parental leave for two years – Principal of equal treatment of men and women workers, of part-time
and full-time workers, and of workers employed under a fixed-term contract and workers employed
under a contract of indefinite duration
Reference for a preliminary ruling – Verwaltungsgerichtshof (Austria) – Meaning of an economic
activity – Hunting for sport and without a profit motive – Sale of game to cover part of the hunting
costs – No profit
Wednesday 27/01/2010 Hearing Social policy EL Courtroom
09:30 T-44/06 Commission v Hellenic Ventures and Others II - Level 8
General Court - Seventh Chamber
The text is not available in English

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_______________________________________________________________________________________

THE ANALYSIS IN DEPTH

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'Social lobby' pins hopes on Spain's EU presidency

Dismayed by the lack of a social dimension to the European Commission's draft '2020 Strategy', centre-left
MEPs and trade unions told EurActiv that the Spanish EU Presidency was their best hope of securing a
genuine social commitment in Europe's next ten-year economic plan.

The so-called 'social lobby' has mobilised
strongly in recent months, vocally criticising the
method - as well as the message - of the draft
'EU 2020' strategy, arguing that it was agreed
behind closed doors between member states
without proper consultation of civil
society. Social partners and trade unions
scored a strategic victory when pressure from
their member organisations led the European
Commission to put back the final deadline for
approval of the new plan from March to June
2010. This has created an extended "window
of opportunity" during which the social lobby
can fight for a revised plan, German Green
MEP Elisabeth Schroedter, vice-president of
the European Parliament's committee on
employment and social affairs, told
EurActiv. The committee, which met yesterday
(27 January), wants to see commitments to
tackle inequality, social exclusion and low
wages explicitly woven into the final text of the
EU 2020 strategy. Meanwhile, social NGOs
want European Commission President José
Manuel Barroso to move beyond "social term-
dropping," in the words of one leading
member, and move towards outlining detailed
policy prescriptions. With Spain's centre-left
government now at the helm of the EU, many
social partners believe José Luis Rodríguez
Zapatero and his ministers present the best
and arguably last chance to make these
changes happen. Social groups endorsed
Zapatero's proposal, presented to the
European Parliament last week, for a broad
social pact to advance a new model of
economic growth over the next ten
years. Indeed, following his speech to MEPs,
the Spanish prime minister stressed that "if this
major European commitment, known as 'EU
2020', receives the support of trade unions, it
will be much stronger". He also stressed the
need to include social agents in the task, a
move that went down well with social NGOs
across Europe. Schroedter told EurActiv that
MEPs on the Parliament's social affairs
committee also approved of his speech, as it

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highlighted divergences between doing". However, Reuter cautioned against

Spain's views and those of the centre-right over-optimism, arguing that many of Europe’s
Barroso Commission. With this in mind, social governments – most of whom are centre-right
partners are today gathering in Barcelona for – would resist far-reaching changes in this
crunch talks with the EU's 27 social and policy area. Nevertheless, he believes a
employment ministers at an informal coordinated campaign by the social lobby can
council. Speaking to EurActiv on his way to succeed if it supported by the Spanish
Barcelona, Conny Reuter, president of the presidency. “Independently of political
Social Platform, a network of social NGOs, majorities, there is a need for commitment on
said that "we expect a lot from the Spanish social policy,” he said, “and it is a social need –
Presidency as they have put the social the crisis is not over, and its effects will
question on the EU agenda far more than any continue to be felt unless we make these
recent presidency, and certainly far more than changes”.
Barroso or the Commission have been (Euractiv.com, 28/01/10)

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