Europe

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EU Commission Approves Passenger Vessel Subsidy

The Commission has approved a Finnish scheme providing a subsidy to passenger vessels. This permits a 97% reduction of withholding tax on the marine work income of European seafarers working on board Finnish passenger vessels. This allows Finland to align with similar measure in neighbouring countries.

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UK Scheme to aid Airlines

The EU Commission has approved an UK Scheme which compensates airlines for the costs incurred 11-15th September after the attacks in New York and Washington. Those are for costs occured as a result of flights cancelled or delayed by national authorities. The scheme applies to all UK airlines and is expected to cost £45m ($72m). A similar French scheme was approved in January.
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Airline Trade War

Loyola de Palacio, the EU Transport Commissioner, has put forward proposals to the Commission to hit state-aided airlines flying into the EU with penalties, including duties and landing right restrictions. Although it is stressed that this is not aimed at a particular country, it is viewed by some observers as retaliation against the USA, which provided $15bn in aid to carriers following September 11th. There have been complaints by EU airlines that this has been used as a means of unfair competition.

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Demolition of Famous Hotel

Work has begun on the demolition of the Intourist Hotel, one of Moscow's most famous landmarks. It was erected in 1970 to cater for foreign tourists. It was notorious for its Cold War standards, with surly staff, buged hotel rooms and illegal money changers. It was also the setting for many spy novels. The hotel is no longer needed as there is a plethora of western style hotels in the city. The hotel will be mourned by few as it was a large concrete and glass monstrosity.

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Lockerbie Conviction Upheld

Abdelbaset ali Mohmed al-Megrahi, the Libyan man found guilty of the Lockerbie bombing, has lost his appeal against conviction. The High Court of Justiciary jailed him for life in January 2001 for the bombing of Pan Am Flight 103 over Lockerbie in December 1988. 270 people were killed, including all those on board and others in the small Scottish border town.

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Plan to Lure Tourists Back

Mike Watson, the Tourism Minister, has unveiled "The Tourism Framework for Action" in Oban, which aims to make Scotland a world-class tourism destination. The document is the outcome of a 5-month consultation excercise following the decline in tourist arrivals. Scotland lost £500m ($800m) last year, exacerbated by the aftermath of September 11th. Tourism employs 193,000 people in Scotland.

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Lufthansa's First Full Year Losses for a Decade

Lufthansa has suffered a pre-tax loss of 745m euros ($660m). Its operating profits plummeted from 1bn euros to 20m euros. It has announced that it will not be paying shareholders a dividend. The results follow the aftermath of September 11th, the economic downturn and a series of pilot strikes.

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Bathing Water Directive

The Bathing Water Directive 1976 is to be reviewed. A key aim is to improve information available to the public. It will also bring in more robust standards. the new proposal is expected to be published in June or July 2001.

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Airlines Price Fixing to be Reviewed

The Commission issued a consultation paper on 8 February 2001 indicating that it intends to review the block exemption from EU Competition Rules given to airlines.This would affect the "passenger tariff conferences" held by IATA to deal with interlining agreements. The exemption will continue until June 2002 when the new policy should be announced.
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Languages

A Eurobarometer survey (16000 people in EU interviewed) reveals that English is the most widely-spoken second language in the EU (41%). 53% have a second language. French is second in the league (19%), German (10%) and Spanish (7%). 2001 is European Year of Languages.

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