Monitoring European Issues PRGN - April-May

HOT ISSUES FROM BRUSSELS

EU DOWNBEAT ON ECONOMY AMID RISING INFLATION SKIES

Slower growth and record-high inflation are the gloomy economic forecasts for the EU's near future. Growth in the EU is expected to cool down from 2.8% to 2% this year and to 1.8% in 2009. Among the reasons: overall less favourable global environment with a US recession looming, ongoing financial turmoil and rising commodity prices for oil and energy. Despite the expected slowdown, prospects for the EU remain much more positive than for the bloc's main competitors (the US, Japan).

BRUSSELS DROPS OPPOSITION TO TRADE IN TAKE-OFF SLOTS SKIES

The European Commission abandoned its opposition to the trade in take-off and landing slots at congested airports. A range of airlines are taken advantage of the opportunities provided by the EU-US aviation agreement, which creates new levels of competition.

IN-FLIGHT MOBILE PHONE USE : THE FIRST PAN-EUROPEAN TELECOM SERVICE

The Commission will harmonise the technical and licensing requirements for the use of mobile phones on board aircrafts. Passengers' phones will be linked to an onboard cellular network connected to the ground via satellite. A number of telecom operators and airlines are planning to launch this service in 2008. Commercial considerations, such as pricing of in-flight mobile-phone use, are not yet addressed.

EU CONSUMERS TO GET RIGHT TO ANTITRUST DAMAGE

European consumers and businesses will have greater scope to pursue claims for damages if they are victims of anti-competitive conduct. Competition commissioner launched a White paper aimed at establishing a European Union-wide system of compensation, by the end of the year. The consultation is opened until 15 July 2008.

PATIENT'S RIGHT TO MEDICAL TREATMENT AND CHEAP MEDICINES

The Commission will present in June the long awaited legislation that would tackle a patient's rights to receive medical treatment in another EU member state and set out clear rules on who is responsible for covering the costs and secure quality of medical treatment provided abroad.

A PUBLIC-PRIVATE RESEARCH INITIATIVE TO BOOST THE COMPETITIVENESS OF EUROPE'S PHARMACEUTICAL INDUSTRY

The European Commission and the pharmaceutical industry began work on implementing the Innovative Medicines Initiative (IMI). IMI aims to remove severe bottlenecks in the drug development process through innovative research projects, hence to accelerate the discovery and development of new medicines. IMI will boost Europe's competitiveness in biopharmaceutical innovation and foster Europe as the most attractive place for pharmaceutical R&D.

CONSUMERS: 50% OF MISLEADING AIRLINE WEBSITES CORRECTED

EU Consumer Commissioner Meglena Kunevatoday published the mid term report on an EU wide enforcement investigation against misleading advertising, unfair practices on airline ticket selling websites. The report shows that there are "serious and persistent consumer problems" throughout the airline industry as a whole : 1 in 3 consumers going to book a plane ticket online is being ripped off or mislead and confused. The Commission threatens the operators saying that it will need to see credible evidence of improvement within the airline sector by May 1st next year or we will be left with no choice but to intervene.

For full report contact Camilla Englund at Coast Communications.