A flurry of EU activity just before the Christmas break will probably not get the publicity it deserves.
First, on 20 December, EU environment ministers agreed to include
airlines in the Emmission Trading Scheme as of 2012. Airlines will have to meet pollution-reduction quotas either by reducing their own emissions or buying credits from other industries.
All airlines coming to and leaving the EU's 27 member states - not just intra-EU flights - will be included, which will guarantee another clash with the USA.
The decision comes just after the international climate change meeting in Bali last week in which the EU took a strong position in persuading other countries to commit to long-term environmental targets. Hilary Benn, Britiain's Environment Secretary, said "This is a bold step by Europe - in the week after the Bali agreement - which shows the EU leading in the fight against dangerous climate change."
The same week, the European Commission finalised its proposals (which must now come before Environment ministers and the European Parliament for approval) to force car makers to make
greener cars from 2012 or face fines. Under the plans, cars should emit an average of 130 grammes of carbon dioxide in four years time or be subject to fines rising to €95 per gramme over the limit. Practically it is expected to mean that big gas-guzzling cars will become more expensive while smaller more efficient cars will be relatively cheaper, and have thus been strongly resisted by the manufacturers of large cars.
On another front, that of
consumer protection, Neelie Kroes, the EU’s Competition Commissioner, has threatened to fine MasterCard for breaching EU competition law. This follows an extensive investigation by the Commission into competition in the financial services sector.
The Commission criticised MasterCard because of the fees it charges consumers who make cross-border transactions on credit and debit cards in other countries. The fees - known as multilateral interchange fees - apply to both MasterCard credit cards and Maestro debit cards and range from 0.4% to 1.2% of a transaction.
"Consumers foot the bill, as they risk paying twice for payment cards - once through annual fees to their bank and a second time through inflated retail prices paid not only by cards users but also by customers paying cash" said Neelie Kroes. She pointed out that the fees also make it more expensive for retailers to accept cards and that these costs are inevitably passed on to customers
The Commission has informed MasterCard that they have six months in which to get rid of the fees, otherwise they will be fined daily fees worth up to 3.5% of global turnover, which translates into fines of £4.5million per day.
Finally, the EU's borderless ("
Schengen") zone expanded to nine mostly eastern European countries at midnight on Friday (21 December) in its biggest enlargement so far. Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia, Slovakia and the Czech Republic - which all joined the EU in 2004 - are involved. Land and sea border checks between them and the other Schengen countries are now abolished, while air borders are set to follow on 30 March 2008.
Practically it means that as of today, people can travel hassle-free between 24 countries of the Schengen area without systematic border controls - from Portugal to Poland and from Greece to Finland. Celebrations were held throughout Friday on several border points to mark the occasion. Britain's and Ireland's position outside this area remains unchanged.
Labels: Commission, competition, environment, Schengen