Issue No. 314

26 October - 1 November 2000

Transition periods must not
have an impact on competition

by Ivan Brincat in Brussels

Transition periods should be few and must not have an impact on competition or last for long periods of time, European Commission sources said yesterday.
In general, the Commission considers transition periods to be problematic in certain cases. “We have tried to limit the number of these transitional periods to the minimum possible in previous enlargements and will follow the same approach now,” the sources told The Malta Business Weekly yesterday.
“We will be following the same rules as for previous enlargements. The transitional periods which are granted must not have an impact on competition and should not be long where possible,” they said.
The Maltese government has asked for a number of special arrangements and transitional periods for those chapters which are being negotiated under the French Presidency.
Sources said that it was virtually impossible that the Competition chapter which includes State aid and the Free Movement of Capital will be closed under the French Presidency.
On the other hand, the government is aware of this and make it a point to close the chapters on European Monetary Policy and Company law under the French presidency.
The number of chapters to be closed at the next meeting of deputies will be fewer than three, although the sources would not specify a figure. On Tuesday, Malta closed the Audio-visual Policy, Statistics and Consumers Health Protection chapters.
With regards to Malta’s requests, each one would have to be discussed in detail with member States.
“It is very difficult to move forward because most member States will look into the merits of all these requests. It is far more easier to close the chapters in which there are no requests for transition periods,” the sources said.
Of the chapters being discussed under the French Presidency, Malta has asked for a special arrangement under the Free Movement of Capital chapter, three transition periods under the Competition chapter, three transition periods and a
special arrangement under the Transport chapter and four transition periods under the social policy chapter. It has also asked for special arrangements under the Fisheries chapter and for which Malta is requesting a 25-mile conservation zone as well as the possibility to retain its quota for tuna.
The chairman of the core negotiating group, Richard Cachia Caruana, in an address yesterday, stressed that most of these requests were of a technical nature which arise from practical considerations relating to the time and cost of implementing the relevant provisions of the acquis.
European Commission sources said that there were different types of requests.
“We understand that Malta is a very small island and therefore is particular. We will find the solutions to different questions. The acquis communautaire is complex and the Maltese might not see room to manoeuvre. But there is room in the acquis where you can find solutions. We will try to meet Malta’s requests and find the best solutions within the acquis. Moreover, the acquis does not regulate everything. There are, for example, specific rules for small isolated areas,” the sources said.

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