Germans pick internal market à la carte

Germany faces a heavy workload on the internal market front with some issues it wants to push through under its six-month presidency of the EU and others which will cause it some discomfort.

One of the highest profile issues will be the attempt to reduce mobile phone roaming charges. Berlin has made getting an agreement on the proposal from Telecoms Commissioner Viviane Reding a major priority of its presidency. Germany will work hard to get a deal on this portfolio in first reading with the European Parliament. If successful, this could mean an agreement as early as May although some EU officials believe that it will need a second reading to get a deal, which could take until June. There is broad support for Reding’s proposal to cap roaming charges at no more than 30% above the cost of domestic calls. But the UK and France oppose the Commission’s approach, favouring instead a ‘sunrise clause’ which would give mobile phone operators a deadline to bring charges down to a certain level or face legislation.

The German presidency may also have to deal with the planned review of the regulatory framework for electronic communications. This dossier has the potential to cause some embarrassment to Berlin because the Commission has been critical of the performance of Germany’s national regulator especially over moves to allow Deutsche Telekom to have monopoly use of its new VDSL high-speed fibre- optic cable. Whether Berlin does have to deal with this thorny issue will depend on the timing of when the Commission presents its assessment and proposals.

Berlin’s desire to make progress on liberalisation of the postal sector could also run into problems. The Commission has confirmed 2009 as the target date for liberalising the market for items under 50 grams. But France, which faces elections for a new president and the national assembly next May, seems unlikely to budge on this before the end of the German presidency - if at all. This week the French Industry Minister François Loos said that the 2009 deadline should be treated flexibly.

In the transport sector, Berlin wants to make progress on the liberalisation of ground handling services as well as advancing with the third railway liberalisation package which deals with opening the passenger rail market to competition.

Chancellor Angela Merkel has also given very strong backing to attempts by Commissioner Günter Verheugen to cut red tape. Verheugen has said that the regulatory burden of EU laws could be cut by 25%, making a saving of €150 billion. Merkel has backed this target in the past but the figure is not found in the presidency programme, although the presidency does call for a common approach to measuring the regulatory burden.

Germany will also have to follow up on the recommendations of the review of the internal market the Commission is to publish early next year.

Germany faces a heavy workload on the internal market front with some issues it wants to push through under its six-month presidency of the EU and others which will cause it some discomfort.