13 March Internal Market Council

Date: 20/03/1997

INTERNAL Market Commissioner Mario Monti's attempts to boost competition in the market for car spare parts was rebuffed by ministers, who rejected his call for a 'repairs clause' to be included in design protection rules so that independent manufacturers could copy visible spare parts, such as windscreens and door panels, for a fee. However, Monti is threatening to return to the issue on the back of European Parliament pressure for changes to current regulations which protect car companies' hold on the lucrative spares market. A wider political agreement on harmonising industrial design rules and protecting them against illegal copying was reached.

MINISTERS backed Monti's plans for an ambitious action plan to complete the single market in time for the scheduled arrival of the single currency in January 1999. However, further discussion highlighted differences over what the priorities should be. The UK and Scandinavian countries stressed the need to clamp down on state aid while, in the wake of the furore over Renault's closure of its Belgian car plant, France and Belgium insisted priority should be given to social and employment issues. Expanding industries such as biotechnology and information technology should not be hindered by single market barriers, ministers agreed.

CENTRAL and eastern European countries were warned they must bring their laws into line with EU rules on health and safety in order to pave the way for Union membership. Poland, which is aligning its laws with those in the Union according to an agreed timetable, was held up as an example to other applicant countries. Technical advice and access for products which conform to EU rules was offered to Poland. The Commission said other countries would be set a timetable for the progressive alignment of their rules.

AS PART of the Commission's ongoing programme to simplify single market rules, expert groups will be set up in April to make recommendations about aspects of the value added tax regime, financial services and external trade, reported Monti.

THE Dutch presidency put together a compromise proposal to end a long-running conflict over what types of dietary foods should be covered by harmonised rules. The Commission originally intended harmonisation to apply to a narrow list of dietary foodstuffs including cereal-based foods, baby foods, items intended for weight-control diets and dietary preparations for medicinal purposes. Foodstuffs for diabetics were added after parliamentary pressure and the deal was sealed when the Dutch included special foods for athletes.