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             EUbusiness Week - Issue 110
                     23 November 2001
             http://www.eubusiness.com
Your way through the EU information maze
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Top stories on EUbusiness
=========================
1. Bitter-sweet economic forecasts for the EU
2. Record EUR 855 million fine for vitamin cartel
3. Innovation gap with US widens
4. European judges rule for Levi Strauss jeans against Tesco
5. Final stamp of approval for money-laundering directive

Publisher's Note
================
The fact that national and Community rules remain overly 
complicated and burdensome will not come as a huge surprise to 
many of our members. A new Europe-wide survey of 4,000 
companies - part of the EU's regular Internal Market Scoreboard -
 estimates that at least EUR 50 billion could be saved by 
reducing the burden of red tape on businesses and better quality 
regulation.

Britain and Italy were found to be the most difficult EU Member 
States to trade with in terms of red tape; Finland was the 
easiest. The survey also found that most companies, particularly 
in France, Germany and Denmark, have yet to feel any benefit 
from government attempts to simplify legislation.

The competitivity of European business is badly hampered by red 
tape. The Laeken European Council next month - which will 
examine the Commission's Action Plan on Better Regulation - 
provides EU leaders with an ideal opportunity to create a better 
regulatory environment for businesses across the Union.
Full story: http://www.eubusiness.com/item/63939 

Regards,
Nick Prag
Publisher, EUbusiness 
mailto:nick@eubusiness.com 

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1. Bitter-sweet economic forecasts for the EU
---------------------------------------------
The Commission on Wednesday painted a bitter-sweet economic 
forecast for the EU over the next three years, with up-and-down 
GDP growth, mounting unemployment, falling inflation but 
seasoned with cautious optimism for recovery. On Tuesday, the 
OECD reported that EU growth would be 1.7% this year, 1.5% in 
2002 and 2.9% in 2003.
Full story: http://www.eubusiness.com/item/64185 
The latest forecasts for the candidate countries predict a sharp 
downturn of growth in 2001 and 2002. However, average growth 
rates between 2001 and 2003 are estimated at 4%, which should 
allow candidates some further catching up with the EU.
Full story: http://www.eubusiness.com/item/64242 
On Tuesday, the European Bank for Reconstruction and Development 
said in an annual report that almost all Central and Eastern 
European economies will enjoy average growth in gross domestic 
product of 4.3% in 2001 -- down from a record 5.5% in 2000.
Full story: http://www.eubusiness.com/item/64108 


2. Record EUR 855 million fine for vitamin cartel
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The Commission has imposed a record fine of EUR 855 million on 
vitamin producers, including BASF and Roche, found guilty of 
operating a price cartel. Roche was fined EUR 462 million and 
BASF EUR 296 million for their part in a conspiracy to fix the 
price for some highly popular vitamins. Both said they might 
appeal.
Full story: http://www.eubusiness.com/item/64186 


3. Innovation gap with US widens
--------------------------------
Underperformance in the field of innovation and slower 
introduction of information and communication technologies are 
major factors behind Europe's widening standard of living gap 
with the United States. The EU's Competitiveness Report 2001 
reveals that Gross Domestic Product (GDP) per head in the EU is 
now less than two thirds of that in the US, the widest gap since 
the 1960s.
Full story: http://www.eubusiness.com/item/64290 


4. European judges rule for Levi Strauss jeans against Tesco
------------------------------------------------------------
The European Court of Justice has ruled in favour of US jean 
maker Levi Strauss, saying the British supermarket chain Tesco 
had no right to import Levi jeans without going through its 
authorised agent in Britain. Tesco, Britain's largest 
supermarket chain, imported the jeans at below market prices 
from Levi retailers and wholesalers in Mexico, the US and Canada.
Full story: http://www.eubusiness.com/item/64059 


5. Final stamp of approval for money-laundering directive
---------------------------------------------------------
The EU's Council of Ministers has given its final stamp of 
approval to the proposal to upgrade the EU's money laundering 
Directive. Following the ministers' approval at their meeting in 
Brussels, the legislation will enter into force in eighteen 
months' time. The Directive, which previously only applied to 
proceeds of drug offences, now obliges Member States to combat 
laundering of the proceeds of all serious crime - including 
fraud against the EU budget.
Full story: http://www.eubusiness.com/item/64066 


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Other stories on EUbusiness this week
=====================================
* Top EU officials head for EU-India summit, Pakistan working 
visit 21-Nov 
http://www.eubusiness.com/item/64110 
* 2002-04 tobacco premiums lay ground for phasing out subsidies 
21-Nov 
http://www.eubusiness.com/item/64225 
* EU receives Microsoft response to competition query 21-Nov
http://www.eubusiness.com/item/64205 
* EU Energy Commissioner says oil prices have fallen too much 21-
Nov
http://www.eubusiness.com/item/64192 
* Blair ally attacks Britain's euro preparations 21-Nov
http://www.eubusiness.com/item/64141 
* Wallstrom says GMO 'deadlock' holding up research 21-Nov
http://www.eubusiness.com/item/64137 
* Italy hosts summit of central European states 20-Nov
http://www.eubusiness.com/item/64067 
* EU and South Korea pledge joint battle against US steel 
rulings 20-Nov
http://www.eubusiness.com/item/64035 
* Euro-zone industrial production down 0.5% in September 20-Nov
http://www.eubusiness.com/item/64063 
* European Commission backs commercial talks with Iran 19-Nov
http://www.eubusiness.com/item/64011 
* Six EU countries sign cooperation pact on air combat and tech 
systems 19-Nov
http://www.eubusiness.com/item/63931 
* Commission accepts two thirds of Parliament's FP6 amendments 
19-Nov
http://www.eubusiness.com/item/63849 

Subscribers only
****************
* Hariri sees accord with EU as catalyst for Lebanon's economic 
revival 21-Nov 
http://www.eubusiness.com/item/64219 
* Keep French francs after Jan 1 for future use says ex-minister 
21-Nov 
http://www.eubusiness.com/item/64213 
* German roadhogs to benefit from euro changeover 21-Nov
http://www.eubusiness.com/item/64212 
* January 1, in comes the euro, out go 12 currencies 20-Nov 
http://www.eubusiness.com/item/64015 
* Euro-zone monetary reserves increase 20-Nov 
http://www.eubusiness.com/item/64083 
* Euro switchover is leading to price rises in some areas: 
Bundesbank 19-Nov
http://www.eubusiness.com/item/63957 
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Inside the EU Institutions
==========================

Council Watch
------------- 
Justice and Home Affairs: Italy and Ireland blocked an accord 
late last Friday on the spectrum of application of an eventual 
EU-wide arrest warrant aimed at prosecuting international 
terrorist rings by eliminating complex and time-consuming 
extradition procedures.
Full story: http://www.eubusiness.com/item/63848 

General Affairs Council, 19 November conclusions 
http://ue.eu.int/Newsroom/LoadDoc.cfm?MAX=1&DOC=!!!&BID=71&DID=68536&GRP=3973&LANG=1 

Agriculture Council: Commissioner Franz Fischler told ministers 
that he expects to see a gradual recovery in the beef market, 
which was seriously affected by both mad cow disease and the 
foot and mouth outbreak.
Full story: http://www.eubusiness.com/item/64133 

Euro Parliament Watch
---------------------
At committee meetings in Brussels this week, the Environment 
Committee gave strong backing for the European Food Safety 
Authority; the Transport Committee endorsed with amendments a 
proposal for a directive designed to improve the training of 
professional drivers carrying goods or passengers by road; and, 
following rejection by plenary of the Commission proposal on 
tobacco excise duties, the Economic and Monetary Affairs 
Committee agreed to explore possible ways forward and negotiate 
in good faith with Council and Commission. In conciliation, 
Parliament and Council moved closer to agreement on the 2002 
Budget prior to second reading, but could not agree on working 
time in road transport.
Press: http://www.europarl.eu.int/press/index_en.htm 


EU diary
--------
23 November, EU-India Summit, New Delhi
26 November, Internal Market, Consumer Affairs & Tourism 
Council, Brussels
27 November, Fisheries Council, Brussels
28-29 November, European Parliament Plenary, Brussels
29 November, Education & Youth Council, Brussels


Internet Monitor
================

Trading with the euro-zone
--------------------------
This guide has been prepared by the FEE (Federation des Experts 
Comptables Europeens) for companies outside the euro area. (PDF) 
http://europa.eu.int/comm/enterprise/euro/doc/feee-trading-euro.pdf 


The drugs problem in the EU
---------------------------
The European Monitoring Centre for Drugs and Drug Addiction 
(EMCDDA) this week published its 2001 Annual report on the state 
of the drugs problem in the EU. 
http://annualreport.emcdda.org/en/download/ 


Transfer of personal data to third countries
--------------------------------------------
The Commission has produced an explanatory note on developments 
regarding the Commission Decision (2001/497/EC) on standard 
contractual clauses for the transfer of personal data to third 
countries not declared as providing an adequate level of data 
protection (so far Switzerland, Hungary and the US Safe Harbor 
System are deemed to provide adequate protection). 
http://europa.eu.int/comm/internal_market/en/dataprot/news/01-497.htm 


Community
=========

Comments of the Week
--------------------
On the question of clearing euro cheques from other eurozones, 
Peter Barron writes: "there is a proposal for legislation in the 
EU system on this subject which might bring the cost down. The 
European Commission has suggested that money transfer charges 
across the borders of the single market should be the same as 
transferring them outside (including for cheques)."

Anthony McHugh-Jewell comments: "Marion Bywater says that there 
is a decision to be made on the November 26th as to whether 
cheque clearing should be taken out of the Commissions proposed 
regulation. Is there any means of exerting pressure on behalf of 
the small business at this late stage?"

Paula Norris would like "information on a 'ball-park' figure 
regarding pricing differentiation between the UK and the 
countries of mainland Europe.  A British company is interested 
in setting sales targets for mainland European countries for its 
products for 2002 and would like some idea of the generally 
accepted price differentiation that is necessary in order to 
succeed in European markets."

If you can answer a question, or have one of your own, see our 
Any Answers section. 
http://www.eubusiness.com/anyanswers/ 

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