Business in Brief

EU economy leaps ahead

The EU economy is strong enough to withstand a downturn in the US economy and a rise in oil prices, according to an autumn economic forecast released by Joaquín Almunia on Monday (6 November). Economic growth this year will reach 2.8% in the EU and 2.6% in the eurozone, a significant increase from last year. Seven million new jobs are expected to be created over the next couple of years. "After years of disappointing results, the European Union economy in 2006 will be at its best since the beginning of the decade," said Almunia.

Roaming survey upholds case

The Commission published on Tuesday (7 November) the results of a Eurobarometer survey in support of its proposals to cap roaming charges for mobile phone calls made or received abroad. Seventy percent of EU citizens are in favour of the proposal, according to the report, which was welcomed by Information Society Commissioner Viviane Reding, and 81% of citizens use their phones less when they are abroad because of high charges on cross-border calls. Industry lobby the GMA association slammed the findings as misleading, claiming that charges have fallen by 22% since last year.

Mandelson targets China piracy

On a visit to Beijing this week Trade Commissioner Peter Mandelson said intellectual property protection was the "top issue" for EU-China trade relations. Meeting officials from the state intellectual property body yesterday (8 November), he called for improved enforcement of anti-piracy laws, citing China as the main source for over half of counterfeit goods intercepted at EU borders.

EU interest rates must rise - IMF’s Rato

Further EU interest rate hikes are needed to keep inflation under control, according to International Monetary Fund chief Rodrigo Rato, speaking on Tuesday (7 November) after meeting EU finance ministers. Recent interest rate rises and labour reforms have put Europe on the road to recovery, he told finance ministers, but more rate rises are needed to keep inflation below 2%.

Steel giant Arcelor fined for price-fixing

The European Commission has fined the steel industry giant Arcelor €10 million for price-fixing. Company subsidiaries Arcelor Luxembourg SA, Arcelor International SA and Arcelor Profil Luxembourg SA were together found guilty of forming an illegal steel beams cartel.

Motorway merger wins Italian authorities

Italy has approved a merger between motorway toll managers Albertis of Spain and the Italian company Autostrade, the Commission confirmed on Tuesday (7 November). Last month the Commission found Italy in breach of the EU merger regulation for placing obstacles in the way of a cross-border merger between the companies.

It’s far too early to say whether Internal Market Commissioner Charlie McCreevy’s big gamble on financial market integration announced this week will pay off. But it’s certainly worth a try.