Free gift laws set for revamp

By Anna McLauchlin

Date: 16/09/04

MINISTERS are set to consider a new compromise proposal to create pan-European rules for sales promotions at next Friday's (23 September) Competitiveness Council.

Insiders say they are "cautiously optimistic" that a majority of EU ambassadors will approve the Dutch presidency's latest draft at a preliminary meeting tomorrow (17 September).

The proposal, fiercely debated by ministers since its adoption in 2001, will lay down ground rules for discounts and coupons, restrictions on what can be offered as free gifts and information requirements for promotions.

In its latest draft, the Netherlands has agreed to exclude certain games from the proposal after some member states, including Spain and Belgium, complained that EU lotteries would compete with national lotteries for consumers' money.

And promotions relating to alcohol and medicines have also now been stripped from the text at the request of the Nordic countries.

Internal Market Commissioner Frits Bolkestein will ask EU ministers to back the proposal at an informal dinner on Thursday evening (23 September).

Dutch Economy Minister Laurens Jan Brinkhorst, who recently branded the EU's Competitiveness Council a "Mickey Mouse Council", will host the dinner.

"There are always different member states' representatives from one Council to the next and there is no coherence," said one Dutch official. "Mr Brinkhorst wants to revive the club spirit."

Over dinner, ministers will also consider the "services directive" and several documents presented by the Commission to clarify its position. The EU executive insists that the directive will only open up those markets that are already liberalized and exclude all sectors, such as financial services or transport, already covered by separate EU law.

It also reassures ministers from Scandinavia and Germany, fearful of an influx of cheap labour, that workers posted to another EU country will be subject to the same social rules as that country.

But member states remain to be convinced about the lack of requirements when posting workers in another country.

Some, including the UK, France, Germany and Poland, have expressed concern that this will increase illegal immigration, particularly in the construction sector, which they want removed from the scope of the rules.

Article previews the Competitiveness Council of 23 September 2004.