Author: SME Chamber

In 2011, the European Ombudsman, P. Nikiforos Diamandouros, helped more than 22 000 European citizens, companies, NGOs, and associations, either by investigating complaints, answering information requests, or giving advice via his online interactive guide. More than 18 000 citizens used the guide to obtain advice on where to turn with their problems.

The Ombudsman received 2 510 complaints in 2011, compared to 2 667 in 2010. He opened a record number of 396 investigations into alleged maladministration by the EU administration. This represents an increase of 18% compared to the previous year, when 335 inquiries were opened.

In 2011, Spain, with 361 complaints, overtook Germany (308) with the greatest number of complaints, followed by Poland (233) and Belgium (190). Relative to population, however, the greatest proportion of complaints came from Luxembourg and Cyprus.

At the presentation of his Annual Report 2011 in Brussels, Mr Diamandouros said: "As well as helping thousands of European citizens to find solutions to their individual problems, my inquiries also benefit citizens more generally by contributing to the improvement of the quality and responsiveness of the EU administration, and by clarifying what the administration is doing and why. The inquiries into radiation levels in imported food after the Fukushima disaster, into potential conflicts of interest in EU institutions, and into the range of languages used in public consultations all illustrate this broader impact".

As in the past, the most common subject matter of the Ombudsman's inquiries in 2011 was lack of transparency in the EU administration, including refusal to release documents or information. A welcome development this year was that the percentage of transparency-related cases decreased from 33% in 2010 to 25%. Other cases concerned problems with the execution of EU contracts or calls for tender, unfairness, and discrimination.

In 66% of all inquiries closed in 2011 (212 cases), the Ombudsman was able to achieve a positive outcome, because the institutions concerned accepted a friendly solution proposal, settled a problem, or submitted a satisfactory reply. He found maladministration in 47 cases, a slight increase compared to 40 cases in 2010. Most of the inquiries opened in 2011 concerned the European Commission (58%), followed by the EU Agencies taken together (13%), the European Personnel Selection Office (11%), and the European Parliament (4%). In 2011, the Ombudsman transferred 1 288 complaints to national or regional ombudsmen in the Member States, the European Parliament's Petitions Committee, the European Commission, and other problem-solving mechanisms, such as SOLVIT or Your Europe Advice.

The Ombudsman's Overview 2011 (in the 23 official EU languages) and the full Annual Report (currently available in English, with the 22 other language versions to follow in July) are available at: http://www.ombudsman.europa.eu/activities/annualreports.faces The European Ombudsman investigates complaints about maladministration in the EU institutions and bodies. Any EU citizen, resident, or an enterprise or association in a Member State, can lodge a complaint with the Ombudsman.

The Ombudsman offers a fast, flexible, and free means of solving problems with the EU administration. For more information: http://www.ombudsman.europa.eu

Selection of 2011 cases

Commission clarifies food contamination levels after Fukushima accident

In March 2011, an earthquake and tsunami damaged the nuclear power plant in Fukushima, Japan.

The accident led to increased radioactive contamination. The Ombudsman received several complaints from citizens about a lack of information concerning changes made to the maximum permitted levels of radioactive contamination for foodstuffs imported from Japan to the EU. After the Ombudsman's investigation, the Commission submitted the requested clarifications and explained that, initially, the maximum radiation levels permitted in imported foodstuffs were higher than those permitted in Japan itself, but were lowered to the Japanese levels a few weeks later. http://www.ombudsman.europa.eu/en/press/release.faces/en/10844/html.bookmark

NGO receives EUR 70 000 from the Commission

The Ombudsman helped settle a dispute between the European Commission and the NGO Migration Policy Group (MPG) concerning an EU project launched as part of the "European Migration Dialogue". After an audit, the Commission issued a recovery order for more than EUR 130 000 because MPG had delivered supporting documents for staff costs too late. MPG complained about the "disproportionate" nature of the recovery order. The Commission eventually accepted the Ombudsman's friendly solution proposal and refunded EUR 70 000 to the NGO. http://www.ombudsman.europa.eu/en/press/release.faces/en/11209/html.bookmark

Potential conflicts of interest in 'revolving door' cases

The European Food Safety Authority (EFSA) in Parma is in charge of risk assessment in the EU regarding food and feed safety. Its role is to provide independent scientific advice, in collaboration with national authorities and other stakeholders. A German NGO turned to the Ombudsman, complaining that EFSA did not adequately address a potential conflict of interest concerning the move of the Head of EFSA's Genetically Modified Organisms (GMO) Unit to a biotechnology company. After his investigation, the Ombudsman called on EFSA to strengthen its rules to avoid potential conflicts of interest in 'revolving door' cases. In March 2012, EFSA published new rules with a view to avoiding potential conflicts of interest. http://www.ombudsman.europa.eu/en/press/release.faces/en/11106/html.bookmark

Commission should publish public consultations in all EU languages

The European Commission regularly carries out public consultations in order to allow citizens, companies, and other stakeholders to participate in the EU's decision-making process. A Spanish lawyer complained that public consultations are often only published in English. The Ombudsman shared the complainant's view that citizens cannot be expected to participate in a consultation which they are unable to understand. According to the Ombudsman, multilingualism is essential for citizens to exercise their right to participate in the democratic life of the EU, which is guaranteed by the Lisbon Treaty. He called on the institution to publish its public consultation documents in all 23 EU languages or, alternatively, to provide translations upon request. http://www.ombudsman.europa.eu/en/press/release.faces/en/11057/html.bookmark

Progress towards a low-carbon economy in the EU and some of its Member States is falling dangerously behind current targets, the European Economic and Social Committee (EESC) has warned. To avoid missing its energy targets, the EU must accelerate progress and take society with it.
The warning came in the EESC's opinion on the Energy Roadmap 2050, which was adopted by the body's plenary session.

In the view of the Committee, the EU fails to recognise the extent to which it is falling short of its own targets. "The decline of heavily polluting production processes in the EU, their growth in other parts of the world and subsequent import into the EU disguise the extent of the shortfall", says Pierre Jean Coulon (Workers' Group, France), the opinion's rapporteur.

The EU aims to cut its greenhouse gas emissions by 80-95% by 2050 whilst simultaneously guaranteeing security and competitiveness of supply. The EESC is not urging new long-term targets, but it is pushing for clear medium-term goals that, if well monitored, would guide progress over the coming years.

As energy investments take decades to implement and pay off, it is in the best interest of the EU and its Member States to set indicative targets for 2030 and to back them up with appropriate policies, the EESC argues. Investment decisions are not helped by the pricing of carbon emissions, which the Committee deems "too low and volatile to give a useful signal to investors". "Changing this would avoid the lock-in of carbon-intensive plants", says Richard Adams, co-rapporteur of the opinion.

Energy efficiency is not being driven fast enough and Europe must step up its action to establish common standards for energy efficiency in all sectors, the EESC argues. Turning to renewables, it cites unsteady government support and in some cases local resistance as barriers to progress.

It is particularly dismayed at the slow pace of modernisation of grid and energy storage facilities. "Reaching the 2050 renewable targets will require very determined and consistent political leadership", says Mr Coulon.

In the short term, the investment needed to meet these targets will lead to energy price increases and extra costs for consumers and businesses, according to the Committee. This makes it more urgent to have all the effects "fully costed, debated and accepted by all concerned", it notes. "In the longer term, it will make the European economy more resilient and competitive globally than if it simply continues with present policies".

"Public acceptance of energy choices is a challenge for Europe's democracies today", says Mr Adams, adding: "The 2050 Roadmap must be used not only to launch the widest possible debate among Europeans, it should also promote engagement at every level – personal, regional, national and EU". "The challenge is not just to reach our objectives but to convince civil society that they are attainable", added Mr Coulon.

The Committee reiterated its call for the establishment of a European civil society forum to boost the flow of information within the EU by regularly bringing together all stakeholders for discussion of the energy transition up to 2050. 

As Libya gears up for its first elections in more than 60 years, EU foreign affairs chief Catherine Ashton calls on Europe to rise to the challenge of assisting Libya in its post-revolutionary transformation. "The EU must be tireless in supporting the transition to a democratic, stable and prosperous Libya," she writes.

Ashton also says, "During none bitter months of conflict… the EU stood by the Libyan people in their efforts to create a better future. It is essential that we now renew our support." Newly appointed head of the EU delegation to Libya Peter Zsoldos writes that he is "optimistic" for Libya's future, but warns the EU to be prepared for "emotional political confrontation as Libyans find their democratic voice". The Parliament Magazine's Libya feature also includes exclusive coverage from Tripoli of the first EU-Libya civil society forum.

The Malta Information Technology Agency (MITA) through the eSkills Alliance and MEUSAC would like to invite the general public to a seminar on eSkills for Employment and Growth.

Wednesday, 6th June 2012 | 08:30 – 13:00 | MITA, St. Venera

The demand for eSkills has been growing rapidly in the last decade. Indeed it is envisaged that by 2015 90% of all jobs in Europe will require some set of eSkills whatever the service or service sector. Nevertheless a number of eSkills shortages, gaps, mismatches as well as a persistent digital divide are affecting productivity growth, competitiveness, innovation, employment and social cohesion in Europe. Malta, like other EU Member States, needs to secure a sufficient professional eSkills base and to enable its citizens to strengthen their eSkills in a process of effective lifelong learning. During this seminar, a number of speakers will highlight the relevance of eSkills across Europe, including Malta.

There will be two workshops which will tackle Lifelong learning in ICT, and the Industry’s perspective and employment opportunities arising from eSkills. The workshops will provide a platform to discuss the challenges and benefits arising from a strong eSkills base in Malta. This discussion will be helpful for policy-related discussions and formulations.

Refreshments will be served during the workshops.

Should you be interested in attending kindly contact by not later than Tuesday, 5th June 2012.

Olli Rehn, the European commissioner for economic and monetary affairs and the euro, issued a gloomy forecast about economic performance in the European Union on Friday (11 May) – but he insisted that there could be no alternative to the path of austerity.

The eurozone, where gross domestic product (GDP) is expected to decrease by 0.3%, is in recession and is not expected to start to recover until the second half on this year. The European Commission's spring economic forecast made particularly dismal reading for countries struggling to get their budget deficits under control. For Spain, where the economy is expected to contract by 1.8% in 2012, the Commission predicted “difficult times ahead”. Spain's deficit is now expected to be 6.4% of GDP, a long way above the government's target, agreed with the EU, of 5.3%.

Next year, the Commission predicts it to be barely reduced, at 6.3%, well above what is supposed to be a celing of 3%. The deficits of Greece, Portugal and France are all also likely to be larger than previously forecast. Rehn said that all the predictions were based on the assumption that government policies would not change – and that Spain's outlook could alter once the plans of the country's autonomous regions were confirmed. “The Commission has full confidence in the determination of the Spanish government to meet the fiscal target in line with the [stability and growth] pact,” Rehn said. “For Spain, the key to restoring confidence and growth is to tackle the immediate fiscal and financial challenges with full determination.

This calls for a very firm grip to curb the excessive spending of regional governments.” Luis de Guindos, Spain's economy minister, responded by saying that the country remained committed to the 5.3% target for this year and 3% for 2013. The latest forecasts for the EU and eurozone are worse than those predicted in the last report, in autumn 2011, but Rehn said that this was no reason for governments to stray from their austerity programmes. “We cannot pile debt over debt,” he said. “It is essential that we are continuing fiscal consolidation and in parallel boost growth by targeted investments.”

French challenges

François Hollande, France's president, said that he was aware of the worse-than-forecast deficit figures and blamed the former administration. “I've known for several weeks that there's been a worse deterioration of our public accounts than what the outgoing government has said,” he said on Friday. “Now we have the confirmation, and it's worth looking at and analysing. I will wait for the report from the Cour des Comptes [France's national audit office, expected at the end of June] before taking the necessary decisions.”

GDP is expected to stagnate across the EU as whole this year, contracting by 0.3% in the eurozone. Next year, growth is expected to return: it is forecast at 1.3% in the EU and 1% in the 17 countries of the eurozone. Rehn said that the recovery would be slow and “uneven” across member states. Unemployment is expected to remain at 10% in the EU and 11% in the eurozone, while inflation is forecast to edge down.

“A recovery is in sight,” Rehn said. “But the economic situation remains fragile, with still large disparities across member states.” Rehn said that there was “an ongoing adjustment of the fiscal and structural imbalances built up before and after the onset of the crisis”, and that this had been made worse by continuing weak economic sentiment.

The spring Consumer Scoreboard published this week on the occasion of the European Consumer Summit 2012 shows that in 2011 for the second year running after the fall in 2009 there were improvements in many EU countries. Consumer conditions are measured e.g. by consumer trust in authorities, retailers and consumer organisations, in the safety of products, the effectiveness of solving disputes and satisfaction with handling complaints. The Scoreboard also shows that consumers still cannot shop as easily across borders as they can at home, thereby missing out on greater choice and savings, with potential gains of as much as EUR 204 billion per annum.

John Dalli, Health and Consumer Policy Commissioner, said: "I call on national policymakers and stakeholders to use today's Scoreboard results to build a quality environment for consumers. Only consumers who are aware of their rights and know how to use them can fully exploit the potential of the Single Market to enhance innovation and growth, so it is vital to create the right conditions to harness that power to the benefit of the European economy, consumers and businesses."

The Scoreboard

The Consumer Scoreboard provides evidence and alerts about how the single market is performing for EU consumers in terms of choice, prices and protection of consumer rights. The spring edition ('Consumer Conditions Scoreboard') looks at the integration of the retail market and national conditions for consumers. It includes the Consumer Conditions Index which is calculated based on the quality of regulation concerning consumers and businesses, the effectiveness of resolving disputes and handling complaints, consumer trust in authorities, retailers, advertisers and consumer organisations, and the degree of trust in the safety of products on the market. This data allows Member States to benchmark their performance over time.

The Scoreboard is mainly based on surveys of consumers and retailers, Eurostat data as well as information received from Member States. Key findings Progress in national consumer conditions The 2011 index shows that consumer conditions have improved for the second year running after the fall in 2009. Consumers enjoy best conditions in Luxembourg, UK, Denmark, Austria, Ireland, Finland, the Netherlands, Belgium, Germany, France and Sweden (Member States above the EU average). The e-commerce gap The Scoreboard shows that while e-commerce continues to grow, it remains largely domestic despite the clear potential in terms of choice and savings across borders. Efforts must be stepped up to exploit the full benefits of a truly single digital market. Consumers can be more confident shopping from other EU countries, as their worries about foreign sellers are shown to be largely unfounded and cross -border e-commerce appears to be at least as reliable as domestic e-commerce.

The findings suggest a key role for more effective information about existing cross-border advice, enforcement and redress mechanisms (network of national enforcement authorities, and the European Consumer Centres, which provide free help and advice to consumers shopping in the Single Market). Knowledge of consumer rights worryingly low Many consumers do not know their rights. Only 12% of respondents EU wide could answer questions about their consumer rights in relation to guarantees, cooling- off periods and what to do if they receive goods they never ordered. Many businesses were not aware of their legal obligations towards consumers. For example, only 27% of retailers knew how long consumers have to return defective products.

Unfair commercial practices persist Illegal business practices persist. Since 2010, more EU consumers and retailers have come across advertisements and offers which were misleading and deceptive, or even fraudulent and many more received goods they never ordered. 7 years after the adoption of the Unfair Commercial Practices Directive this is a cause for concern and must be addressed more actively. Authorities must enforce the rules which already exist to protect consumers, particularly vulnerable consumers, against such practices; consumers must be empowered to spot and avoid them; and it must be possible to have faster, easier and cheaper solutions to disputes with traders, both online and offline (see IP/11/1461).

The Commission will look into ways to step up enforcement in order to strengthen consumer confidence in cross-border transactions. This will be set out in a report in 2012 on the implementation of the Unfair Commercial Practices Directive. Looking to the future The new EU Consumer Agenda 2014-2020 aims to empower consumers and build their awareness and confidence by giving them the tools to participate actively in the market, to make it work for them, to exercise their power of choice and to have their rights properly enforced. Once adopted, the proposals currently on the table for mechanisms to solve disputes with traders without having to go to court (Alternative and Online Dispute Resolution – ADR/ODR), will help European consumers to sort out their problems, wherever and however they purchase a product or service in the EU.

Full Scoreboard: http://ec.europa.eu/consumers/strategy/facts_en.htm#5CMS

For more information: http://ec.europa.eu/consumers/consumer_research/editions/cms7_en.htm

Malta Enterprise is inviting businesses wishing to explore business opportunities in Sweden and Denmark to participate in a business and trade delegation to the cities of Stockholm and Copenhagen from the 3 – 8 September 2012.

Eligible enterprises include:

Manufacturers

Service providers

Licensing and Franchising

Companies seeking joint ventures and strategic alliances

Technology Transfer

Companies seeking R&D opportunities

 

Companies seeking to import finished products are NOT eligible.

 

As part of its assistance Malta Enterprise will endeavour to set-up one-to-one meetings for participants through its institutional networks. Malta Enterprise will also refund eligible participants up to 60% of flight costs and a per diem allowance. Refund is for one representative per participating company.

Application forms together with a €250 deposit should be sent to us or forwarded by hand by Friday 1st June, 2012. This deposit will be fully refunded together with the financial assistance referred to above after the event. In cases where a company cancels its participation, any cancellation costs incurred by Malta Enterprise on behalf of the company will be deducted from this deposit. For further information please contact Robert Falzon on 25423239 or

Why did you become an entrepreneur?
I didn't have a choice really, I was put in it, but I enjoy every minute of it.
How have you come to choose your line of business?
It wasn’t my choice really.

Where did you go on your last holiday? The UK to visit my daughter What is your earliest memory? As a young child playing on the beach If you could chose to be someone famous who would you be and why? Pavarotti. He had a passion for what he did for a living.

Some significant legislative measures have been introduced recently under the Employment and Industrial Relations Act which may have an impact on many businesses. Legal Notice 44 of 2012 amended by Legal Notice 110 of 2012 which came into force on 31 January 2012 reviews the employment status of individuals who are self-employed and defines a number of criteria which would indicate the existence of an employment relationship.

 

Employment Status National Standard Order, 2012 The Order stipulates that if five of the following eight conditions are met the individual would be considered to be an employee with comparable conditions of employment. The criteria are as follows:• The individual derives at least 75% of his income for the year from one source;

• The type and volume of work required are determined by the person to whom the service is provided;

• The tools, equipment and materials required for the work are provided by the person receiving the service;

• The individual is subject to work time schedules or minimum work periods which are set by the person receiving the service;

• The individual must perform the service himself and cannot sub-contract the work to others;

• The individual is integrated within the production process or work organisation or hierarchy of the entity requiring the service;

• The activity performed by the individual is a core element in the organisation and the pursuit of the objectives of the person to whom the service is provided;

• The individual performs similar tasks to existing employees or, where work is outsourced, to those performed by former employees.

Implications

Self employed persons who are deemed to be employees will have an indefinite contract period from the date of the initial continuous provision of services and any seniority and due notice will be considered to be with effect from that date. The date of employment shall be the date of the first contract unless there was a break of six months between successive contracts.

The probationary period will be deemed to have commenced on the date of first provision of services and if this was before coming into force of the Order it will be presumed that the probationary period will have lapsed unless proven otherwise. Working hours must be similar to that of a comparable whole time employee or if no comparable employee exists, to the hours specified in the applicable Wage Council Wage Regulation Order or, if none is available, a forty hour week.

Wages shall also be that of a comparable employee, or, in the absence of a comparable employee, the same wages provided as part of the self-employed conditions. All other conditions must be comparable to whole time employees or as provided by the Wage Council Wage Regulation Order. Any penalty clauses in the previous contract of service relating to events before the Order came into force will not be enforceable unless authorised by the Director of Labour.

However, this does not preclude the right by any party to initiate civil procedures for damages applicable under the contract of service. Employer’s Obligations If the status of the individual is deemed to be that of an employee at the time the regulations come into force, the employer is obliged to provide the employee with a letter of engagement or signed statement within eight weeks of the regulations coming into force, setting out the conditions of employment including the information required in accordance with the Information to Employees Regulations 2002 (LN431 of 2002).

If the individual does not agree with the conditions of employment or the amount of wages to be paid and leaves employment, he has a right to institute proceedings claiming unfair dismissal with the Industrial Tribunal. Exemptions The Director of Labour may, in exceptional cases or for activities of a short duration, upon his written request to retain his self-employed status, exempt an individual from the provisions of the Order. Approval of Change of Status by Director of Labour Any conversion of a contract of service from that of a self-employed person to an employee or vice versa must have the approval of the Director of Labour. Penalties The fine, on conviction for contravening any of the provisions of the Order is €1,000 per employee.

Information from: www.deloitte.com.mt