EU Heads of State and Government gathered on 27 October for an Informal European Council at Hampton Court Palace, United Kingdom.

UK Prime Minister and current President of the European Council Tony Blair tried to get the EU's 25 Heads of State to reach a 'strategic consensus' on how to tackle the challenges of globalisation and demographic ageing. They discussed six main priorities proposed by the European Commission:

• Research: the 25 Member States aim to give new impetus to European research and innovation, and to the budget devoted to research. They even suggested setting up a European Council dedicated to Research.
  
• A common energy policy: EU leaders discussed sudden oil price increases and the exhaustion of oil stocks. They decided to negotiate with oil and gas producing countries at European level.
  
• Education: European universities are lagging behind their American, Indian and Chinese counterparts. EU Heads of State identified a set of measures to fight the decline of European universities.
  
• Immigration: EU leaders agreed that the Union must find a coordinated solution to illegal immigration, while recognising the benefits of legal immigration to the European economy.
  
• Demographic change: Heads of State and Government discussed how the EU could help the employed better reconcile their work and family lives. They also addressed the issue of Europe's ageing population.
  
• The creation of a Globalisation Adjustment Fund:  EU leaders discussed setting up a Globalisation Adjustment Fund to help workers who fall victim to globalisation.

The European Council did not deal with the controversial, but most important issue of the 2007-2013 financial perspectives in detail, but all EU leaders highlighted that an agreement should be reached at the European Council in December.  

On 25 October the European Commission presented a three-year programme to simplify thousands of pages of EU legislation adopted since 1957. Its intention is to reduce the administrative burden and cut over-regulation, which put most businesses at a disadvantage.

The Commission proposes to repeal, codify, recast or modify 222 basic legislations - all in all more than 1400 legal acts - in the next three years.

"Better regulation is a corner stone of our Partnership for Growth and Jobs", said Commission President José Manuel Barroso. "It will boost the competitiveness of our companies."

The simplification process kicks off with the most heavily regulated sectors, such as cars, waste and construction.

Other sectors such as food, cosmetics, pharmaceuticals and services will follow soon.

The Commission also intends to cut red-tape, especially for small businesses, by simplifying cumbersome statistics form-filling or modernising the customs code to facilitate electronic exchange of information.

"But better regulation is not de-regulation," warned Günter Verheugen, Commission Vice-President responsible for enterprise and industry. "The policy objectives do not change, but the way to get there will be much easier, cheaper and more effective for citizens and business."

Bulgaria  and Romania should be able to meet the requirements of EU membership in time for the provisional date of accession of 1 January 2007, on condition that they keep up the pace of reform. This was one of the key findings of the Commission's comprehensive monitoring report, published on 25 October, which examined the two countries' preparations for EU accession.

"Bulgaria and Romania have achieved significant progress so far in the preparations for accession. But, the jury is still out," said Commissioner for Enlargement, Olli Rehn. "In the months to come particular attention must be paid to actual implementation and enforcement of the reforms."

The Commission's report confirms that Bulgaria and Romania meet the political criteria for membership.

Bulgaria and Romania fulfil the requirement of being a functioning market economy. Bulgaria's continuation of the current pace of its reform path and Romania's vigorous implementation  of its structural reform programme should enable them to withstand competitive pressure and market forces within the EU.

The report shows their progress in adopting and implementing EU legislation. In most areas they are well advanced.

Nevertheless, further efforts are needed to address certain shortcomings which give cause for serious concern. Both must strengthen the rule of law, by improving public administration and the justice system and by fighting corruption effectively.

It is crucial that Bulgaria and Romania also increase food safety, reinforce the structures and mechanisms for participation in EU structural funds, and tackle industrial pollution and organised crime more effectively.

In April/May next year the Commission will review the situation. It may then recommend to postpone the accession of Bulgaria or Romania until 1 January 2008 if there is a serious risk of any of those states being manifestly unprepared to meet the requirements of membership by January 2007 in a number of important areas.

The EU is soon to open negotiations with Bosnia and Herzegovina on a Stabilisation and Association Agreement (SAA), a first major step in the European integration process.

The Commission underlined, however, that Bosnia and Herzegovina must, in particular, continue to improve cooperation with the International Criminal Tribunal for former Yugoslavia (ICTY), adopt the remaining Law on Public Broadcasting and ensure the implementation of the police reform.

The opening of negotiations on an SAA agreement requires the Council's green light. The agreement aims to promote economic and trade relations, with the perspective of establishing WTO-compatible free trade after a transitional period.

It will also bring the country closer to the European standards in regulating the movement of workers, freedom of establishment, supply of services and movement of capital. It will include a commitment by Bosnia and Herzegovina to progressive harmonisation of its legislation with that of the Community.

What is the Stabilisation and Association Process (SAP)?

The SAP is the EU's policy for the countries of the Western Balkans region. The Stabilisation and Association Agreement (SAA) is the final stage of that policy, creating a contractual relationship between a country and the European Union. The SAP is accompanied by a generous financial assistance programme, called Community Assistance for Reconstruction, Development and Stabilisation (CARDS).

The EU has already signed an SAA with the former Yugoslav Republic of Macedonia and Croatia, and is currently negotiating an SAA with Albania and Serbia and Montenegro.

On 26 October the European Commission set out a plan to harmonise the corporate tax base across the EU. The plan includes a number of existing taxation and customs initiatives, and proposes a set of new measures to modernise the EU's taxation and customs system.

"With globalisation and increasing cross-border activity, a Community approach on some tax and customs issues would be of considerable benefit to business and trade," said Taxation and Customs Commissioner László Kovács.

At present, the 25 national tax systems represent an obstacle to the smooth functioning of the single market, and impose extra costs on businesses across the EU. As such, they hamper investment in research and development (R&D) and pose a threat to sustainable economic growth.

The Commission's move to simplify and improve customs and taxation systems across the EU is part of a broader strategy to cut red tape and stimulate growth.

Commissioner Kovács has already unveiled plans to combat counterfeiting and introduce a more unified approach to car taxation.

Other Commission tax proposals will concern the modernisation of the Customs Code, the modernisation of VAT rules and a communication on R&D tax incentives.

If you want to know more about the EU's taxation and customs, go to: http://europa.eu.int/comm/taxation_customs/taxation/index_en.htm

On 24 October the European Commission presented a Thematic Strategy to protect and conserve Europe's marine environment.

Their goal to ensure that all EU marine waters are environmentally sound by 2021 is without doubt an ambitious one.

"Europe's seas and oceans make a huge contribution to our quality of life and our economic prosperity, but they are deteriorating because of over-exploitation, pollution, climate change and a range of other factors," warned Environment Commissioner Stavros Dimas. "This is an area where there is a strong need for a European overarching and integrated approach."

The strategy proposed sets out common objectives and methods to reach the required quality levels for the various marine regions (the Baltic Sea, the North-East Atlantic, the Mediterranean).

Member States will be responsible for designing and implementing plans to ensure a good environmental status in their respective marine waters, and to work in close cooperation with other countries sharing a marine area, whether these be Member States or third countries.

The Thematic Strategy will form a key component of the future Maritime Policy which will be proposed by the Commission in 2006.

Following on from the thematic strategy on improving air quality that was presented on 21 September, the marine strategy is the second in a set of seven thematic strategies proposed for the Sixth Environmental Action Programme. The other strategies will address waste prevention and recycling, the sustainable use of resources, soils, pesticides and the urban environment.

The EU and eight countries in South-East Europe met in Athens on 25 October to sign the Energy Community Treaty, which foresees the liberalisation of the region's power and gas markets by 2008. The Treaty brings 34 countries together to form the world's largest internal market for electricity and gas; the 25 EU Member States and Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Albania, the Former Yugoslav Republic of Macedonia, Romania, Bulgaria, and, last but not least, UNMIK Kosovo. Modelled on the European Coal and Steel Community that is the basis of the European Union, the Treaty seeks to allow the countries of post-war South East Europe to agree on one area of policy and to develop a shared outlook. The agreement, building on the  'Athens Memoranda', signed in 2002 and 2003, responds to the countries' objective of joining the EU as soon as possible and presents them with the opportunity to become part of the EU single market in the area of electricity and gas as a first step towards that goal.
If you want to know more about the Energy Community Treaty, have a look at the Commission's fact sheet on the topic.

The Joint Research Centre (JRC), the Commission's in-house research facility, has launched a study on the social, economic and environmental consequences and challenges of modern biotechnology. "The study will be a very useful and timely contribution. It will help to inform the debate on biotechnology at European level and provide a scientifically sound basis for future decisions," said Research Commissioner Janez Potočnik when launching the study on 21 October. Biotechnology is driving innovation in medicine, agriculture and industry. Biotech-based industrial techniques consume fewer resources, clean up the environment and provide substitutes for more harmful chemical processes. And new possibilities are opening up for preventing, treating and curing hitherto incurable diseases: it is estimated that over 8 percent of biotechnology activity in Europe is health-care related. The Commission is currently updating its Biotechnology Strategy of 2002 in preparation for the Spring European Council 2007.
If you want further information on the EU's policy regarding biotechnology, consult the Commission's fact sheet.

Parliament's ambitions for the EU will be translated into figures as the Plenary voted at first reading to restore much of the 2006 budget cut by the Council. Areas set to benefit include research, education and youth programmes, which were reduced by the Council in July, as well as external policy. The grand total after today's vote is €121.4bn in commitment appropriations and €115.4bn in payments, equalling 1.04% of the EU's Gross National Income.

• Budget 2006: Amendments to the Council budget proposal adopted by Parliament in first reading; Report[s] on the draft general budget of the European Union for the financial year 2006;
  
• Azerbaijan: Situation in Azerbaijan before the elections
  
• Barcelona Process: Report on the Barcelona Process revisited
  
• European Ombudsman (2004): Annual report on the activities of the European Ombudsman for the year 2004
  
• Human Rights in Western Sahara: Resolutio
  
• Uzbekistan: Resolution
  
• Case of Tenzin Delek Rinpoche: Resolution
  
• Greenhouse Gases: Council common position, Second reading recommendation
  
• Emissions from Car Air-Conditioning: Council common position, Second reading recommendation
  
• Noise Emission: proposal for a directive, First reading report
  
• Trans-European Transport Networks and Energy: Proposal for a regulation, First reading report
  
• Food Additives: Proposal for a directive, First reading report
  
• Fight against Organized Crime: Proposal for a Council framework decision, Consultation Report
  
• Bird Flu: Environment committee resolution
  
• Biotechnological Patents: Joint resolution
  
• Economic Migration: Own-initiative report
  
• EC-Azerbaijan Agreement on Air Services: Proposal for a Council decision, Report
  
• Amending Budget 6/2005: Draft amending budget, Report
  
• Waste shipments: Council common position, Second reading recommendation
  
• Rail freight quality requirements: Proposal for a regulation, First reading report, Parliament rejects the Commission's legislative proposal.
  
• Lifelong Learning: Proposal for a decision, First reading report
  
• Youth in Action: Proposal for a decision, First reading report
  
• Culture 2007: Proposal for a decision, First reading report
  
• Media 2007: Proposal for a decision, First reading report
  

President Borrell in Britain.  Parliament's President, Josep Borrell, will make an official visit to the United Kingdom on 9-10 November.  In London, he will have an audience with Queen Elizabeth II, and hold separate meetings with the Prime Minister and the leaders of the main opposition parties (Tuesday). He will also visit Edinburgh, where he will meet the Scottish First Minister and address members of the Scottish Parliament (Wednesday).

Groups prepare for Strasbourg plenary.  Parliament's political groups will devote much of the week ahead to preparations for the plenary session of 14-17 November in Strasbourg.  The main issues include the debate and vote of chemicals regulatory package REACH, a debate on the outcome of the Hampton Court summit, plus discussions of climate change and nuclear power.  A directive promising better information for air passengers on which company is operating flights will also feature.  Institutional matters include the presentation by José Manuel Barroso of the Commission's work programme for 2006 and the annual report of the Court of Auditors for 2004.  

Pre-session press conference.  Any changes to the agenda decided by the Conference of Presidents will be announced at the press briefing at 11am on Friday in Brussels.

Election observation missions in Azerbaijan and Egypt. A delegation of MEPs will be concluding their observation mission for the parliamentary elections of 6 November in Azerbaijan, while another delegation will be heading to Egypt to observe the first round of the legislative elections on 9 November.

Tony BLAIR, President-in-Office of the EU Council, told MEPs that it was necessary to get Europe moving again and get it moving in the right direction. There were three main aims: first, to get agreement at the Hampton Court summit on what was the right direction for Europe and its economy; second, to agree on a set of new priority areas reflecting that direction; third, to get a budget deal in December in the light of these priorities.

Research, development and innovation should take a larger share of the EU budget, but there should also be a better coordinated approach between the Member States by setting up a European Research Council along the lines of America's National Sciences Foundation.  This would give us a chance to form world beating companies in the technologies of the future.

Those countries which opened their labour markets to the 10 new Member States have benefited from it

If we are to get agreement it will be better if we have agreed a direction for Europe and let that influence the deal, and get a forward perspective on a more rational way of organising the EU budget in future.

Council, Commission and Parliament should work closely together, if not always in agreement.  Europe has much to be proud of - let us show our citizens the next 50 years can be as good as the last.

Commission President José BARROSO said that the Hampton Court Summit would be an opportunity to face up to the economic and social challenges that Europe faces.
For the EPP-ED group, Hans-Gert POETTERING (DE) reminded Mr Blair it was his duty to represent all EU citizens, not just the UK.  

[Globalisation] means we are one world.  This is a spiritual, cultural, economic and moral challenge.

If we do not open our markets to their products, including agriculture, progressively, not, of course, overnight, those young people [from Morocco] will be knocking on the doors of Europe.

The leader of the Socialist group, Martin SCHULZ (PES, DE) [...] On the European social model, he warned that many so-called economists were calling for lower wages, longer working hours and fewer trade union rights as the way to boost growth.

We do not accept the destruction of the European social model, the idea that economic and technological progress leads to social progress.  We want free provision of services, but not social dumping.

Graham WATSON (UK), leader of the ALDE group, said it was sad that some people were unable to see beyond a simplistic debate between a liberal and a social Europe.

The German welfare state model no longer works. It is 'kaput'. If the EU is to properly combine reform of its economic system... to provide the wealth needed to pay for social policy, we need a common response to the common challenge [of globalisation]

For the Greens/EFA group, Monica FRASSONI (Greens/EFA, IT) said Mr Blair had once again shown off his performance skills, but she wanted to know what, other than nuclear power, Mr Blair had in mind for the energy policy.

We should promote our principles of solidarity, democracy, rights and healthcare around the world.

Francis WURTZ (FR), for the GUE/NGL group welcomed the fact that Mr Blair's speech to the Parliament in June had identified three main problems with today's European Union.  Namely, crises of confidence, a need to change a Europe that has delivered 20 million unemployed  and that a substantive debate on the future of Europe is needed.  [...] He said that it was the conviction of his group that the European social model was too precious to be tampered with. He warned MEPs that the chilly winds of the market are too cold for Europe.
Nigel FARAGE (UK), for the IND/DEM group, welcomed the European Commission's initiative to withdraw proposals for European legislation saying this was music to euro-sceptics' ears.
Irish MEP Brian CROWLEY for the UEN group [...] said that the deliberations of European leaders should be guided by the following four principles; solidarity so that the social model is protected, generosity towards the new members of the European Union, responsibility towards others and finally the capacity to implement policy.
Roger HELMER (UK), representing the non-attached (NI) Members of  Parliament, said Mr Blair had disappointed pro-Europeans by not living up to the expectations they had of his pro-European intentions when he was first elected in 1997.
Mr Blair's response to group leaders

There is a danger if citizens see globalisation as a threat, when it could really be an opportunity.  Yes, China and India are scaling up their economy in a striking way, and are competing on top-end products as well.  Other countries like Vietnam are also coming up fast.  This is a huge competitive challenge and an opportunity.  They will need financial services and technology and will start importing our goods.

Are we really incapable of modernising our social model in the way we want? No, we can do it if we listen to our people.  They are not saying they don't want Europe; they say that want Europe to answer the concerns they have on globalisation, terrorism and the environment.  Pro-Europeans must lead the case for change - it is Eurosceptics who want no change in the EU as this will allow their nationalist agenda to gain ground. Let's act together to make Europe relevant to our citizens.

• Optical Radiation: Directive on minimum health and safety requirements regarding the exposure of workers to the risks arising from physical agents (optical radiation)
  
• Mining Waste: Directive on the management of waste from extractive industies
  

Both Colman and I have it and use it occasionally for stories.

In the long run, we're all dead. John Maynard Keynes