MEPs’ warning over Liikanen telecoms plan

Date: 07/12/00

By Peter Chapman

EURO MEPs are preparing to fight for changes in draft rules governing the Union's telecoms markets amid fears that the European Commission is usurping too many executive powers to police the sector.

At the heart of the debate is enterprise chief Erkki Liikanen's package of reforms to the existing regulatory regime, which was set up two years ago to nurture competition in the market.

Under the proposed 'frame-work directive' unveiled this summer, the Commission wants to eradicate differences in the way telecoms markets are regulated from country to country in a bid to give firms operating in this increasingly pan-European sector greater legal certainty. But MEPs are balking at the Union executive's attempt to give itself the right to impose 'binding harmonisation measures' on member states if it finds national divergences.

Finnish Socialist MEP Reino Paasilinna, rapporteur on the issue for the industry committee, argues that the Commission should have a key role in ensuring a level regulatory playing field despite attempts by member states to water down its proposed power.

But he says the "Parliament does not like" the new plan, which would let the Commission bypass the normal EU legislative system for ensuring oversight by MEPs and member states.

The Paasilinna report, set to be debated by MEPs early next month, calls for the proposals to be changed so that market players and consumer groups are included in a 'high-level communications group' of national regulators advising the Com-mission on telecoms policy.

The Finn also wants to widen the criteria the Commission would use to regulate operators which enjoy 'significant market power' (SMP). He suggests borrowing from the World Trade Organisation's rule book, which he claims gives a better definition of SMP.

Euro MPs are preparing to fight for changes in draft rules governing the Union's telecoms markets amid fears that the European Commission is usurping too many executive powers to police the sector.