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A brief history of the EUPauli Leimio, CEO
United Magazines Ltd
Milestones of the EU19
50
Sch
uman
Dec
lara
tion
1951
Eur
opea
n C
oal a
nd S
teel
Com
mun
ity
(Tre
aty
of P
aris
)
1957
E
urop
ean
Eco
nom
ic C
omm
unity
&
Eur
atom
(Tre
aty
of R
ome)
1960
Th
e E
urop
ean
Free
Tra
de A
ssoc
iatio
n (E
FTA
)
1973
Fi
rst E
nlar
gem
ent o
f Eur
opea
n C
omm
unity
(UK
, Den
mar
k &
Irel
and)
1981
S
econ
d E
nlar
gem
ent (
Gre
ece)
1986
Th
ird E
nlar
gem
ent (
Spa
in &
Por
tuga
l)
1986
S
ingl
e E
urop
ean
Act
1989
Fa
ll of
the
Ber
lin W
all
1992
Tr
eaty
on
Eur
opea
n U
nion
(Maa
stric
ht) s
igne
d
1995
Fo
urth
Enl
arge
men
t (A
ustri
a, S
wed
en, F
inla
nd)
1997
Tr
eaty
of A
mst
erda
m s
igne
d
1999
E
cono
mic
and
Mon
etar
y U
nion
beg
ins
2002
In
trodu
ctio
n of
EU
RO
fina
lised
Coming European challenges
Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovak Republic, Slovenia
Coming challenges• globalisation• environmental safety• safe food• consumer rights• social differences
2004 Proposed Fifth enlargement- ten new members to be admitted
Decision making processwithin the EU
Pauli Leimio, CEO
United Magazines Ltd
Three levels of power-sharing
The European Commission plays a role similar to national political parties only organ that is allowed to initiate draft
legislation
The European Parliament plays a role similar to national parliaments can challenge and amend the initial proposal
The Council of Ministers shares the same powers as the European
Parliament
Shared powers
in co-decision
Individual Member States retain total sovereignty over
Education Health Culture Tax Internal security Foreign affairs
The European Commission
Drafts legal proposals A Directive
must be transposed into national legislation and passed at national level by the national parliament
A Regulation
has a direct effect at national levelleaves no flexibility for national
circumstances
From idea into Commission proposal
Consulting interested parties (lobbying)
1 – 3 years
Legal proposal draft
Discussion and approvalby relevant Commission
services(Directorate-Generals)
Adoption by College of Commissioners
Formal Commissionproposal
European Parliament Council of Ministers
Translation
Basic notions
Green Paper
• Commission Green Papers are intended to stimulate debate and launch a process of consultation at European level on a particular topic
• May then lead to the publication of a
White Paper
• Documents containing proposals for Community action in a specific area
The European Parliament
626 Members (MEPs) directly elected by the citizens of each Member State
Made up of policy-based Committees with overall responsibility for coordinating the parliament’s resolution on a proposal One MEP appointed as Rapporteur
“Advisory” Committees
From first text into First Parliament Reading
Discussion atCommittee level
3-6 months
time
Adoption
Vote in PlenarySession
Termination of FirstReading in Parliament
The Council of Ministers
Consists of Working Groups
Discusses proposals simultaneously with the Parliament
From Parliament Report into Directive
Report adopted by the Parliament
Translation
Comparison with original text from
Commission with the Parliament’s report
Adopts ”compromise common position”
(2-3 years)
Translation
Second Reading inParliament
Directive adopted
The Impact of the European Union
on Publishing in EuropeFrancisco Pinto Balsemao
President and CEO
Impresa, Portugal
What is the European Publishers Council?
Senior group of publishers with interests in common
Express role of reviewing and taking action on EU legislation
Securing the future viability of private media companies
Safeguarding the freedom of expression
Welcome to the European Constitution
The Convention and the “future of Europe”
Greater visibility and transparency More legal certainty and efficiency in
rules and decision-making
Competition policy – highly responsive to fast changing business environments
Media mergers considered from 3 angles:• ensuring open markets / preventing
foreclosure• promoting access to quality content• balancing different interests at stake
Media concentration is not regarded as anti-competitive
THE POSITIVE IMPACT OF THE EU
1.Competition, Mergers, Acquisitions
Frequent calls from the European Parliament for EU-wide legislation to restrict media ownership, particularly cross-media ownership
MEPs don’t accept that concentration is often a pre-requisite to diversification, expansion and…
…ultimately the only way of protecting our own future viability
Many positive aspects to cross-media ownership – eg. new digital channels, internet content
No technical barriers to entry, not even in broadcast media - no spectrum scarcity
THE NEGATIVE IMPACT OF THE EU
1. Competition, Mergers, Acquisitions
Systematic anti-competitive behaviour by publicly funded media hurts the private sector as a whole
Many outstanding complaints from TV and publishing companies against state funded broadcasters, including their activities in the online market
Commission failing in its duty to deal with the complaints and to investigate anti competitive practices
Competition is for all!
THE NEGATIVE IMPACT OF THE EU
1. Competition, Mergers, Acquisitions
THE POSITIVE IMPACT OF THE EU
Limited powers of the Commission to regulate media content
No independent mandate to shape the area of the media
Content regulation is subject to test of proportionality
Can only act in matters necessary for the internal market
2. Content
THE NEGATIVE IMPACT OF THE EU
Directive designed to provide transparency in financial markets and to prevent insider trading
If left untouched, would have introduced “content regulation” for journalists reporting on financial markets
Exposed journalists to criminal prosecution Replaced tried and tested editorial self-
regulation with inflexible laws
2. Content
Council of Europe produces Conventions and Recommendations for 45 countries
A new Recommendation to give access to journalists and broadcasters to major events
For every reporter barred, dozens of readers or viewers are denied access to news and what should be public information
Need to reconcile our views on copyright with freedom of expression
THE POSITIVE IMPACT OF THE COUNCIL OF EUROPE
2. Content
THE NEGATIVE IMPACT OF THE EU
3-Advertising
Constant attempts to limit our freedom to carry advertising
Total ban on tobacco advertising Possible restrictions coming on alcohol
and food advertising Rules to determine when advertising is
fair, or unfair Is advertising to children fair? Or unfair?
THE POSITIVE IMPACT OF THE EU
Not all forays into marketing practices are negative!
New rules to facilitate cross border sales promotions, prize draws, competitions
Generally supported by publishers
4. Marketing, Consumer Protection
THE NEGATIVE IMPACT OF THE EU
New regulations creating uncertainty in areas including
Defamation Invasions of privacy
Publishers face claims e.g. for libel in different countries…
Consumers already have the right to go to Court in their country of residence
Publishers should have the right to have cases heard according to the laws of the country of publication
4. Defamation, invasions of privacy
THE POSITIVE IMPACT OF THE EU
Zero and/or reduced rates of VAT on the printed press
Proposals expected later in the year Unlikely to undermine a Member State’s
right to continue with existing zero or reduced rates
MEP’s generally supportive
5. VAT
THE POSITIVE IMPACT OF THE EU
6. Data protection
Data Protection Directive Exemption for ‘journalistic purposes’ Currently under review Need to fight abuses of data protection
‘rights’ which undermine fundamental rights of publishers
THE NEGATIVE IMPACT OF THE EU
Data protection in electronic communications
Rules on the use of cookies Stringent ‘opt-in’ requirements for email
marketing and Directory entries High cost of compliance for industry Dubious consumer benefit
6. Data protection
THE POSITIVE IMPACT OF THE EU
Directive designed to increase transparency and user-friendliness of public sector information
Benefits to business and tax payers alike Commission and Parliament support these
objectives Governments resist ! Some changes are needed
7. Public sector information
THE POSITIVE IMPACT OF THE EU
8. Copyright
Increasing copyright protection in the digital age
Modernising collective management of rights
Digital rights management
THE NEGATIVE IMPACT OF THE EU
8. Copyright
The EU should recognise that the ownership of rights is as important as their harmonization
Profound and mixed impactof the European Union
The EU affects every aspect of our business lives
We must not lose sight of the fundamental right to the freedom of expression
No EU regulation should hinder the future viability of Europe’s media companies without which that freedom falls
The Impact of the European Union
on Publishing in EuropeFrancisco Pinto Balsemao
President and CEO
Impresa, Portugal
HOW TO ACT WHEN YOUR ORGANIZATIONNEEDS GUIDANCE IN THE EU ISSUES?
Pauli Leimio, CEOUnited Magazines Ltd
FEDERATION OF EUROPEAN PUBLISHERS
EUROPEAN NEWSPAPER PUBLISHERS’ ASSOCIATION
EUROPEAN ASSOCIATIONOF DIRECTORY AND
DATABASE PUBLISHERS
EADP
FEDERATION OF EUROPEAN
MAGAZINE PUBLISHERS
Federation of europeanmagazine publishers
7,000 publishers 50,000 magazine titles 80 % European adults reached € 40 billion revenues 20 billion copies sold annually 200,000 EU citizens employed
FAEP’S MISSION
To ensure the long-term survival and prosperity
of a diverse and economically successfull magazine publishing
industry within the EU
MAGAZINE TRENDS
Branch is consolidating and fragmenting.
Target groups are getting smaller.
Number of magazines is increasing.
Publishers are approaching the heart of
knowledge society.
Thank you