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Olympic aid
- The European Commission launched on Wednesday (19 December) a new investigation into state aid from the Greek government to Olympic Airlines and Olympic Airways Services. In 2005 the Commission ruled that aid granted to the affiliated companies was unlawful and ordered repayments of hundreds of millions of euros.
Wine reform deal
- EU farm ministers reached an agreement on Wednesday on wine reform after Agriculture Commissioner Mariann Fischer Boel compromised in the face of opposition from big producer states. The reform, due to enter into force in August 2008, encourages the uprooting of vines and foresees the phase-out of planting controls by 2018 in an attempt to make EU wines more competitive in world markets.
Spirits ruling
- EU farm ministers decided on Monday (17 December) on new rules on the production and labelling of spirits. Producers in Poland, Finland and Sweden opposed the new rules, which allow spirits made from ingredients other than grains or potatoes to be sold as vodka, while other items regulate whisky.
Trichet warns of ‘prolonged upswing in inflation’
- Jean-Claude Trichet, president of the European Central Bank (ECB), warned of a prolonged upswing in inflation when he appeared before MEPs yesterday (19 December). He signalled that growth in the 13-nation eurozone could fall below current predictions. On the recent liquidity crisis, he denied that increased lending to banks would affect the ECB’s balance sheet, stating that collateral requirements had not "loosened" in recent times. Banks and financial institutions, he said, should not "rely blindly" on ratings agencies.
Japan Tobacco agrees €400m counterfeit-cigarette deal
- Japan Tobacco International (JTI) agreed on Friday (14 December) to pay EU governments $400 million (€277m) over the next 15 years to combat the sale of illegal and counterfeit cigarettes. In return, the European Commission and member states have offered the company legal immunity for past practices in manufacturing and sales. JTI will work together with the Commission, anti-fraud office OLAF and national law enforcement authorities in the fight against contraband, including the problem of counterfeit cigarettes, which costs the EU an estimated €6 billion a year in lost revenue.
Browser minnow complains to Commission about Microsoft
- Opera, the Norwegian developer of web browsers, lodged a formal complaint with the European Commission against Microsoft on Thursday (13 December). Opera claims that Microsoft’s bundling of its Internet Explorer browser with the Windows operating system makes it difficult for third-party browser manufacturers to compete and limits consumers’ buying options. The complaint was the first since a landmark ruling in September from the European Court of First Instance, which backed the Commission’s 2004 crackdown on the IT giant’s business practices.
US opens sectors to EU in return for closing door to online betting
- The US reached a bilateral deal with the EU on Monday (17 December) on compensation for lost trade opportunities denied by its closed gambling sector. In return for not meeting its World Trade Organization obligations to open up gambling and betting services, including online gambling, the US will open its postal and courier, research and development, and storage and warehouse sectors. European online gaming companies were hoping for increased access to the US gambling sector, arguing that the EU was entitled to as much as $100bn in compensation for being denied access to the US market.
EU backs extra trade restrictions on Brazilian beef
- Member states yesterday endorsed a Commission decision to impose increased restrictions and controls on imports of beef from Brazil. From 31 January, Brazilian cattle ranchers will have to meet strict EU import requirements. Only imports from an approved and restricted list of holdings in Brazil will be allowed into the EU. Ireland, a major producer of beef, had pushed for an outright ban, claiming that Brazil’s produce did not meet EU standards.
European retailers yesterday (19 December) welcomed moves by Competition Commissioner Neelie Kroes to abolish fees levied on the use of credit and debit cards by MasterCard and called for similar action next year on identical fees charged by Visa Europe.
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