New York City Regional Economic Development Council Priority Project Identifies Two High-Tech Anchor Tenants for New 222,000-Square-Foot Facility: Crye Precision, Body-Armor and Apparel Manufacturer for the U.S. Military; and New Lab, a Co-Design and Manufacturing Space

Mayor Michael R. Bloomberg, Governor Andrew M. Cuomo, Brooklyn Borough President Marty Markowitz and State and City elected officials today announced that the Brooklyn Navy Yard Development Corporation will invest $46 million to build a Green Manufacturing Center in the Navy Yard. This New York City Regional Economic Development Council priority project consists of the adaptive reuse of three former WWII-era Navy machine shops into a state-of-the-art industrial complex, creating nearly 300 new permanent jobs and approximately 400 construction jobs.

“The Brooklyn Navy Yard is an economic success story if there ever was one, and this investment in green manufacturing is more great news for the Navy Yard and for New York City’s economy,” said Mayor Michael R. Bloomberg. “Today the Navy Yard is home to the kind of innovation that is going to create the jobs of the future and keep our city competitive in the long-term.”

“This project is an example of how the Regional Council initiative is helping the state invest in a productive and sustainable innovation economy that will put New Yorkers back to work now and for years to come,” Governor Cuomo said. “This is an eco-friendly investment that will create almost 300 new jobs while making space available for a successful company to produce the tools needed to keep the heroic members of our armed services safe.”

“The Green Manufacturing Center at the Brooklyn Navy Yard – with its lead tenants Crye Precision and Macro Sea – will show the world how to successfully incorporate green manufacturing and sustainable practices into a state-of-the-art facility that will create hundreds of permanent and construction jobs,” said Brooklyn Borough President Marty Markowitz. “Bravo to Governor Cuomo, Mayor Bloomberg, Speaker Quinn, our Brooklyn Legislative and Council delegations, Brooklyn Navy Yard Development Corporation President Andrew Kimball and all their partners for transforming ‘navy blue’ into ‘navy green.’ There is no better example than the Navy Yard of Brooklyn’s dynamic, diverse – and green – economy, and I was proud to support the Green Manufacturing Center project.”

“The Navy Yard is a testament to New York City’s resilience and creativity,” said New York City Council Speaker Christine C. Quinn. “Through thoughtful redevelopment efforts, what was once a thriving shipbuilding facility is now a model urban industrial park that houses some of the City’s most cutting edge companies, and now soon, a Green Manufacturing Center. We are proud at the Council to have partnered with the Governor, Bloomberg Administration, Borough President Markowitz, and the Brooklyn Navy Yard to ensure that the Navy Yard continues to thrive and create more jobs for New Yorkers.”

The Brooklyn Navy Yard is a 300 acre industrial park on the Brooklyn waterfront that houses more than 275 businesses, employing 6,000 workers, up from 230 businesses and 3,600 workers in 2001. Over $200 million in infrastructure investments by the City, State, and federal governments have leveraged over $500 million in private investment for new and renovated industrial buildings and hundreds of millions more in tenant machinery, equipment and fit-out.

The development of the Green Manufacturing Center will continue the expansion underway at the Brooklyn Navy Yard – its largest growth since WWII, adding more than 1.8 million square feet of new space and over 2,500 new jobs over the next two years. Home to more than 30 green manufacturers, the development of green facilities has long been a priority at the Yard. This major new investment will transform buildings 28, 123, and 128, former Navy ship building machine shops, into a 220,000 square foot multi-tenanted, into the LEED Silver-certified Green Manufacturing Center. Major construction begins this summer and will take approximately 18 months to complete.

“The Navy Yard has become a thriving hub of high-tech and clean-tech manufacturing,” said Andrew H. Kimball, president & CEO of BNYDC. “We are thrilled to get this project underway with the support of our partners at every level of government and to have two fantastic anchor tenants secured.”

“The Green Manufacturing Center is a striking example of how Governor Cuomo’s Regional Council initiative is helping to forge the innovative public-private partnerships we need to create jobs and grow our economy,” said Lieutenant Governor Robert J. Duffy. “By investing in the expansion of our high-tech manufacturing industry, we are literally building the tools for a sustainable economy that’s prepared to last.”

“The momentum of the Brooklyn Navy Yard in creating jobs and attracting investment is undeniable, and today’s announcement is the latest sign of the progress that’s been made at the Navy Yard during the Bloomberg Administration,” Deputy Mayor for Economic Development Robert K. Steel said. “The Brooklyn Navy Yard is proving that modern manufacturing has a bright future in New York City.”

“On behalf of the New York City Regional Economic Development Council, I congratulate the Brooklyn Navy Yard on moving forward with the development of a new Green Manufacturing Center, and on securing Crye Precision as its anchor tenant,” said City University of New York Chancellor and New York City Regional Council Co-Chair Matthew Goldstein. “This new center will be a crucial piece of the twenty-first century infrastructure needed to support environmentally sustainable advanced manufacturing in New York City.”

Crye Precision – a premier designer and manufacturer of body armor and apparel for the U.S. military as well as federal and state law enforcement agencies – which was awarded $1 million through the New York State Consolidated Funding Application (CFA) process, has agreed to become one of two lead tenants at the new Green Manufacturing Center. Crye currently operates in four separate spaces at the Navy Yard, with 110 employees, and will now lease 80,000 square feet, consolidating multiple sites into one central location. Crye decided to expand in the Navy Yard after considering numerous options for consolidation and expansion, including New Jersey.

The company’s expansion into the Green Manufacturing Center will create 100 new jobs over the next five years. Crye also has several commercial product lines under development; one uses locally recycled materials that are converted into fabrics.

“The Navy Yard has been exactly what our business needed to grow and we are thrilled that our future will remain here,” said Caleb Crye, Executive Director of Crye Precision. “We started here a decade ago with 4,500 square feet, today we’re up to 45,000 square feet with more than 100 employees and when the new facility is complete we’ll have a more efficient operation with room to grow and add at least 100 new jobs.”

A second anchor tenant, Macro Sea, will lease more than 50,000 square feet for New Lab, a cutting-edge facility that will promote design and manufacturing innovation using the latest in environmentally-conscious processes and machinery. Through traditional tenancies and co-working spaces, New Lab will encourage the collaboration between design and fabrication by hosting a dynamic mix of designers, digital manufacturers, architects, graduate research facilities, and others in a hive of sustainable design and innovation.

Working at the forefront of green technology advances, New Lab has received strong interest from the following universities and firms:
• The Cooper Union, Institute for Sustainable Design Innovation Laboratory;
• Rensselaer Polytechnic Institute’s School of Architecture and Center for Architecture Science & Ecology (CASE)
• Columbia University, Laboratory of Applied Building Science (L-ABS) at the Graduate School of Architecture Planning and Preservation;
• Terreform ONE, Brooklyn based nonprofit design group and unique laboratory for scientists, artists, architects, students, and individuals of all backgrounds to explore and advance the larger framework of green design; and
• Within Lab, a London-based design consultancy best known for creating tools which constantly push at the boundaries of the possible in the world of additive layer manufacturing.

“New Lab will bring together graduate students, designers, and high-tech manufacturers in a unique space that will encourage innovation and collaboration,” said David Belt, Macro Sea Managing Principal. “The Navy Yard’s community of manufacturers represents the future of urban industry and New Lab will seed the next generation of cutting-edge Yard businesses.”

The $46 million construction project will be built to LEED Silver standards and funded through capital grants from New York State ($6 million from Empire State Development), the New York City Council ($7.5 million), the Brooklyn Borough President ($2.5 million) and the U.S. Economic Development Administration ($2.5 million). In addition, Crye has been awarded $1 million in Excelsior tax credits from Empire State Development through the New York State Consolidated Funding Application process. BNDYC has financed the balance of construction through the federal EB-5 program. Crye will expend approximately $9 million on their fit-out and equipment and Macro Sea will expend approximately $10 million.

“This major investment in green manufacturing shows that Governor Cuomo’s efforts to build a new New York economy is starting to pay off with immediate and long-term job creation,” Empire State Development President, CEO & Commissioner Kenneth Adams said. “The Brooklyn Navy Yard should be commended for providing the strong foundation to help companies grow and create jobs that are as good for the environment as they are for our economy.”

“These types of projects are both good for the environment and good for the wallet,” said Senate Minority Leader John L. Sampson. “If we are truly going to turn this economy around and make it stronger we have to identify innovative solutions. The future of the United States and its businesses depend on the green economy—and here in Brooklyn we are doing something about it. I commend the Governor and his Regional Economic Development Council for not only securing a healthier and more environmentally-friendly future for the state but also enhancing our global competitiveness.”

“The Brooklyn Navy Yard continues to prove that no matter how difficult the times, success is possible,” said Senator Daniel Squadron said. “The new Green Manufacturing Center will provide Brooklyn with even more jobs and creatively put to use this historic space in a sustainable way – all while helping to drive our community’s growth and revitalization. Thank you to Governor Cuomo, Lieutenant Governor Duffy, Borough President Markowitz, EDC, and BNYDC for working to make this a reality, and to Crye Precision and New Lab for bringing your talent to Brooklyn.”

“The future will be built on a foundation of green jobs and the sooner we invest in this emerging industry, the more stable our long-term economic recovery will be,” said Senator Velmanette Montgomery. “Green technology makes good environmental sense and good economic sense. I commend the Governor for his efforts to ensure New York will be at the forefront of the new economy and look forward to working with him in the future to bring more good, green jobs to our community and state.”

“We are happy to roll out the green carpet for new manufacturing here in Brooklyn,” said Assemblyman Joe Lentol. “Welcome to Brooklyn Crye Precision. You are clearly part of New York’s new manufacturing revolution that is clean, lean and green. The Navy Yard continues to make Brooklyn proud as it demonstrates its flexibility to foster large scale manufacturing and creative entrepreneurship at the same time.”

“The Brooklyn Navy Yard never ceases to impress me,” said NYC Council Member Stephen Levin. “Today we are celebrating support for the Green Manufacturing Center, the re-purposing of a 215,000 square foot space and the creation of hundreds of new jobs. The BNYDC is driving an incredible resurgence of activity and growth here and we owe a debt of gratitude to Andrew Kimball for steering the ship. I am very proud to represent the Brooklyn Navy Yard in the City Council and I know there are going to be many more great stories to tell in the coming years.”

“The collaboration of the city, state and the private sector has once again put the Brooklyn Navy Yard on the map with the Green Manufacturing Center creating 300 new permanent jobs and approximately 400 construction jobs. Furthermore, this $46 million green facility is an investment in our environment,” said Council Member Letitia James. “I want to thank Governor Andrew M. Cuomo, Mayor Michael M. Bloomberg, Brooklyn Borough President Marty Markowitz, City Council Speaker Christine Quinn and Brooklyn Navy Yard Development Corporation President Andrew H. Kimball for securing the funding for this project.”

The Brooklyn Navy Yard Development Corporation is a non-profit corporation that manages operations of the Brooklyn Navy Yard for New York City. It is tasked with leasing space, promoting local economic development and redevelopment of underutilized areas, and modernizing the Yard’s infrastructure. Prior to its reopening as an industrial park, the Brooklyn Navy Yard served one of America’s preeminent military facilities for more than 150 years. The rich past, thriving present and promising future of the Yard is captured in a newly opened exhibition, visitors and employment center: the Brooklyn Navy Yard Center at BLDG 92.

Contact:           Stu Loeser/Julie Wood                                   (212) 788-2958

A SICAV or “Societé d’Investissement á Capital Variable” is an open-ended collective investment scheme common in countries such as Luxembourg and Switzerland. It is an open-ended vehicle with variable capital equal to the net asset value of the Fund.

Investment funds in Ireland which use a corporate structure are incorporated as public limited companies (“plc”) under the Companies Acts.  The new SICAV will be specifically designed for investment funds and therefore will not be subject to the rules of other forms of companies, thereby reducing the need for compliance with certain inappropriate requirements under the Companies Acts. The legislation will also increase the range of structures open to investment managers and promoters establishing funds in Ireland.

One of the main advantages of SICAV will be the ability of this structure to “check-the-box” for US tax purposes, which an Irish plc cannot do at present.

It is anticipated that the proposed legislation will be enacted by the end of 2012 prior to the entry into force of the Alternative Investment Funds Managers Directive (“AIFMD”) in July 2013.

Brought to by EACC Member Mason Hayes & Curran

In his address to the UN General Assembly, he pointed out that “there is a tendency to view the ongoing crisis in the eurozone as distinct from the financial crisis that struck the United States in 2007. But in fact, their causes are the same.”

President Barroso highlighted Europe’s robust response to the crisis that follows a twin track approach of stability and growth. “That means restoring sustainability to our public finances – because the crisis has shown that debt fuelled growth is unsustainable. And it means creating the conditions for growth and jobs, through structural reform and targeted investment.”

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“The rules we are proposing are crucial: once adopted, they will profoundly alter the behavior and solidity of financial actors,” said Internal Market and Services Commissioner Michel Barnier.

“Our overall objective remains to strengthen the resilience of the banking sector in the EU while ensuring that banks continue to finance economic activity and growth. The final compromise must contribute to financial stability, the necessary basis for growth and employment.”

The proposals will turn into law a comprehensive set of international standards known as the Basel III agreement. It is expected that the EU will thereby become the first area in the world to enact the measures developed by the Basel Committee for Banking Supervision and endorsed by the G20 leaders in 2010.

“In the coming weeks, we need to find a global agreement to meet our Basel III commitments on time,” added Commissioner Barnier. “Now more than ever, we need unity on bank regulation. Weak bank capitalization, weak and poorly harmonized liquidity rules, and fragmented and uncoordinated supervision were all contributing factors to the financial crisis.”

The agreement provides a basis for negotiations with the European Parliament.

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This event was clear recognition of the European-American Chambers of Commerce by the European Union as the leading European organization in the United States for transatlantic  trade. Follow up strategy and coordination among the chapters on both sides of the Atlantic are expected to lead to future business growth and opportunities.

Vice-President Tajani directs at the EU level enterprise and industrial policies holding a wide range of responsibilities for SME and industrial innovation; regulation of manufactured goods; and standardization.

Vice-President Tajani’s visit served to foster industrial cooperation with the United States in order to support growth on both sides of the Atlantic. Prior to his New York City stop, Vice President Tajani met senior political representatives, members of Congress and key industry federations in Washington, D.C.

The background:

The Taxation trends report compiles tax indicators that allow comparison of the tax systems and tax policies between EU Member States. It offers a breakdown of tax revenues raised either from consumption, labour or capital. It also contains data on energy taxation and on the top rates for personal and corporate income taxes. Its country chapters give an overview of each of the 27 EU countries covered, their revenue trends and recent tax policy changes. The data published in the Taxation trends report will also feed into the Country Specific Recommendations which will be published by the Commission at the end of May.

The event:

A technical briefing on the main results of the Report will be organised on Monday 21 May 2012 in the press room of Berlaymont Building at 11:00 by experts from the European Commission.

• Available on EbS

The sources:

Taxation trends in the European Union: http://ec.europa.eu/taxation_customs/taxation/gen_info/economic_analysis/tax_structures/index_en.htm

The contacts: Emer Traynor: +32 2 292 15 48 – Emer.Traynor@ec.europa.eu

The G8 summit continues to play an important role in shaping global responses to global challenges. This year, G8 Leaders will address the following main topics:

• regional and political developments and security issues
• the global economy
• energy and climate issues
• food security

There will be an outreach working lunch on 19 May to discuss food security with the following African leaders: President John Mills (Ghana), President Jakaya Kikwete (Tanzania), Prime Minister Meles Zenawi (Ethiopia), and the current Chairman of the African Union, President Yayi Boni from Benin. Leaders will also be joined by representatives of international organisations and the private sector involved in the global work on food security.

The background:
The European Union is, together with Canada, France, Germany, Italy, Japan, Russia, the United Kingdom, and the United States, a full member of the G8. European Commission President José Manuel Barroso participates for the 8th time in the G8. President Barroso has attended his first G8 summit in Gleneagles (2005). Last year’s G8 summit was held in Deauville (France) and the 2013 edition will be hosted by the UK. The G8 summit in Camp David will be the first major international event for the new French President Hollande.

The event:
Participation of the President of the European Commission, José Manuel Barroso, and the President of the European Council, Herman Van Rompuy, in the G8 summit in Camp David (U.S.)

Pre-G8 summit briefing on Wednesday 16 May, 11.15 (OFF the record). Council premises (info: press.president@consilium.europa.eu).

Press events at the G8 summit in Camp David: to be confirmed.

G8 media accreditation has been closed. Please note that the G20 media accreditation deadline is Sunday 13 May. All media interested in covering the G20 Leaders’ Summit in Los Cabos, Baja California, Mexico, on 18 and 19 June are invited to fill out the online press accreditation form at http://www.g20.org/en/acreditaciones.

The sources:
Press material on the 2012 G8 summit (forthcoming)
G8/G20 section on President Barroso’s website: http://ec.europa.eu/commission_2010-2014/president/g8-g20/index_en.htm

Twitter: http://www.twitter.com/EC_live

The contacts: Pia Ahrenkilde-Hansen +32 2 295 3070/+32 498 953 070 pia.ahrenkilde-hansen@ec.europa.eu

Jens Mester +32 2 296 3973/+32 498 963 973 jens.mester@ec.europa.eu

Speech by Herman Van Rompuy, President of the European Council at the Europe Conference in Copenhagen “Building the Europe of the Future: Post Crisis Reflections”

It is a pleasure to be in Copenhagen today and to speak here at the “Europe Conference”. I accepted this invitation with all the more pleasure that it allows me to also meet the Danish Prime Minister in her capital. Her government is running an outstanding rotating Council Presidency.

I am no doubt not the first speaker to say this today, but the subtitle of this Conference – “post crisis reflections” – is rather optimistic! However, I do understand the longing for this crisis to end! The strong wish to say: Basta. Ça suffit…

Yet there is no quick fix, no magic formula. Bringing this crisis to an end will require hard work and time. Yet in the meantime, we should indeed keep thinking about “the Europe of the future”. This conference is therefore most timely.

The banking and public debt crisis has affected public confidence in the strength of our economies. “Can Europe remain an attractive and competitive continent in a world which is changing so quickly?” Yet there is also an anxiety related to the European project. “Can the European Union offer the right answers?”

The focus of your debate today is on the second question. Yet the two are closely linked. The mistrust that we witness towards the EU is first and foremost due to the fact that the economic crisis is still very much with us. That the results are not there yet. That is why today I should like, first, to say something about the impact of the crisis, summed up in one word: “interdependence”.

Second, about how we dealt with it institutionally, including at the level of the European Council. How co-responsibility was our answer to interdependence.

Third, I will try to get to the root cause of the current disenchantment, and offer my thoughts on how we can counter it and enhance the Union’s legitimacy and appeal. In my view, it is not by entering the field of institutional engineering, but rather by delivering results and by speaking frankly.

For decades now, European leaders have strived to bring Europe “closer to the citizens”. Yet, paradoxically, one of the reasons why Europe is being questioned today is precisely because it has become so close to its citizens! (Finally!)

The single currency and also the Schengen area bring the Union, more than ever, into people’s daily lives. That is why European issues play a major role in domestic politics. We saw it last Sunday in elections in France, in Greece. In a way, we are the victims of our success.

This is something we must keep in mind when thinking about our Union’s future. Until recently, it seemed natural to imagine that Europe would become more centralised. Instead we are seeing member states and national leaders take centre stage in particular in dealing with the public debt crisis. In my view this is not contradictory. Unlike some, I do not see the return of the ghosts of the past and the “renationalisation of European politics”. No, in my view, what is in fact happening is the “Europeanisation of national politics”.

The financial crisis has had a catalytic effect. Its key lesson is how interdependent we have become. Among euro countries of course, but also beyond. A deficit in Greece, a banking crisis in Ireland, a recession in the Baltic states can impact all neighbours, all economies in the Union. We discovered that our financial interdependence was stronger than our economical integration, and much stronger than our political integration.

Our work was aimed at stabilising the situation and overcoming it. Two years of small steps (often decried as “too little, too late”) add up to a big leap. Stronger surveillance of budgets, bubbles and banks. Better means to enforce the rules. Conditional rescue loans to three countries in difficulty. A permanent firewall against contagion. Two years ago, none of this existed.

Of course, we are not there yet, but nobody should underestimate the road we have travelled. The answer to the crisis is “more Europe”, whilst a part of public opinion wants “less Europe”. A paradox, one amongst many.

We answered interdependence with “co‑responsibility”. Working together, with all institutions and all governments. Now on this particular point, some have criticised the heavy involvement of national leaders in the management of the crisis. I, for one, am not surprised, for two reasons:

First of all: there is a lot of money at stake. The public debt crisis requires taxpayers’ money (albeit largely in loans and guarantees). Given that the central EU budget is relatively small (ca. 1 % of GDP), the EU institutions as such cannot act decisively alone. Member States have to step in. And the amounts are such that within countries the decision can only be taken at the highest political level. National leaders and parliaments simply have to be involved. In Denmark, a country with a strong and self-confident national Parliament, I do not have to explain this!

Secondly: in times of crisis, we reach the limits of institutions built on rules and competences set in the past. The European Council (27 country leaders, the President of the Commission and myself), is well placed to play its part when we enter uncharted territory, when new rules have to be set. Keeping out of day-to-day business which the other institutions do much better, yet springing into action to deal with the special cases – changing the treaty, letting new members in the club, dealing with crises. In all these cases it draws upon the collective legitimacy of its members.

Nevertheless, not everybody is satisfied by this situation. Some say the traditional “Community method” is abandoned. I have a more nuanced view. Even if we had to use the “intergovernmental” road…, the work we have been doing has actually resulted in stronger “Community” institutions. Again a paradox!

The Commission has received unprecedented supervisory power. The Court of Justice will control the transposition of the debt brake into national constitutions. The European Parliament played a decisive part in designing the new budgetary and macro-economic surveillance.

The work is not over. We have to deepen our monetary union. Capital markets are becoming more and more fragmented for instance. We need new and fresh ideas, a road map for the next decade. We have to prepare it right now.

This “interdependence”, this lesson of the financial crisis, is not an unintended consequence of our actions. No, it was a prime motive behind uniting Europe in the first place! Tying the economies and societies on our continent ever closer together, in order to guarantee: Peace, between states. Prosperity, for the citizens. Power (or influence), for Europe in the world.

To achieve stability on the continent and good neighbourly relations between former enemies, we chose the road of the economy, of the common market, and later that of a common currency.

It is no coincidence that in many countries — Denmark among them — the European project was perceived and even referred to as the “Common Market”! Prosperity for each and every European citizen was thus both a means and a goal in itself.

This implicit pact underwriting the European project has come under pressure, partly because of the crisis and partly for reasons that predate it. Firstly, interdependence entails risks. As we have seen all too well recently, this includes the risk of “contagion”, or that of having to pay for others or to depend on their decisions. Secondly, Europe is often used as a scapegoat for globalisation. The fact is that all our economies have to adapt to a changing world.

The rise of emerging economies brings huge opportunities, and Denmark is among those seizing them, but also serious challenges. To remain competitive, we Europeans must work more, better; be innovative and creative, and we can no longer afford to live beyond our means. Reforms must be done – EU or no EU. A public deficit of 15 % and a public debt of 160 % of GDP are unsustainable – EU or no EU. The competitiveness of our economies must increase – EU or no EU.

But in the public eye, even when the decisions are taken by national leaders, the blame often falls on the Union. The truth is, we did not change in good times, or not enough, so we have to change in bad times. However, we are still better off changing together! All Europe’s political leaders know this, and act accordingly, as I witness at every summit. But how can we convince citizens? That is the ultimate challenge and it is my last point.

Results is the first answer, economic results and jobs. We must convince people that Europe is good for jobs. That our market does not only help businesses to sell more and consumers to buy cheaper products, affordable flights or pay lower roaming tariffs, but that it creates employment. For millions of people. We can do more. We can do better in deepening our market.

We must convince people that, as a Union, we invest together in education, training, in transport or technology, in research and development, and in projects for growth, some of which are so ambitious that we can only take them up together. It is essential to increase structural economic growth.

Europe is not a threat to jobs, but a source of jobs!

Likewise, we must show that Europe can defend its interests in the global competition, against unfair practices, making sure that the same rules and standards apply to all. Or think of the global climate negotiations, where Commissioner Hedegaard is so active.

It is a constant theme in many bilateral international summits that I attend with President Barroso on behalf of the European Union, and we will continue to press the point. The single market, trade, investment and reforms are the heart of Europe’s growth and jobs agenda.

As regards the stability of the Eurozone, we must make it clear, to consumers, to investors, that the euro is irreversible and that this crisis will be overcome. This will take time. But we can do it. The mild recession, or mild recovery, is partly due to a lack of confidence of consumers and investors in the future of the euro zone. Austerity is not the only cause!

I’m very concerned about the situation in Greece. This is the defining moment for the country. I appeal to the sense of national responsibility of all political leaders to reach an agreement respecting the country’s engagements and ensuring its European future. I should like to underline that alongside financial support for the programme, the European Union is developing a huge effort to revive growth in Greece, through investments in projects and technical assistance.

Jobs, growth, and their prerequisite, political and financial stability: these are the main ingredients to bringing back people’s confidence: their confidence in the strength and resilience of our continent, of Europe’s economies, and their confidence in the European project. Once again, the two are closely linked.

Of course I am aware that, in an attempt to address some of the legitimacy questions triggered by the crisis, some circles have reopened reflections on the European Union’s institutional set-up. Yet I hope to have made clear why I consider this off the mark.

We need to get our economies going again, we do not need years of institutional navel‑gazing.

Electing directly the President of the European Commission, to take one example, will hardly bring down public debts or deficits! (On the contrary: as an elected politician he or she may well prefer to be nice to voters rather than be strict with governments…)

Looking at some of the proposals floating around, I sometimes wonder how their proponents — who usually favour stronger European institutions — can be so sure of the outcome.

To take another example en vogue: the idea of one day merging the positions of President of the Commission and President of the European Council. To me it is unclear how that person could be at the same time a strong advocate for the Commission’s proposals and an honest broker among governments.

Some imagine that the President of the Commission would become the President of the European Council. Have they considered that it could also be the President of the European Council who could become President of the Commission? Again a paradox! Such a merger could compromise the Commission’s independence as guardian of the Treaty, its main source of success and authority.

Creating a European constituency for a limited number of European seats is another such idea. There are good arguments in favour, for instance that it would bring a stronger European dimension, but also against, such as that it would favour candidates from larger Member States or languages. It would create two kinds of parliamentarians: those with more and those with less legitimacy. And redesigning constituencies can also be highly sensitive: my own country lived a 3‑year political deadlock over cutting one constituency in two!

As things stand, national election campaigns are already followed across Europe. It is the Europeanization of national elections! In such elections, people express something about Europe, too. They have a voice. What is important is that their political leaders listen and bring this voice to the European negotiating tables.

Whether we like it or not, like our economies, our political systems are already deeply interdependent. It reflects the very nature of our Union. We cannot make it go away, however hard we would try, but we can make it work better.

By working together, to achieve results. There is another way to deal for politicians to regain the confidence of the public. Leaders must tell the truth.

One such truth is that the impact of reforms on growth and jobs takes time. Another, that the ultimate answer to the crisis does not lie in the creation of financial instruments (funds and bonds), but in changes in the real economy. Yet another, that the cost of non-Europe would be unbearable.

Those who pretend that their country can succeed on its own do not just sell illusions, but lies! Populism and nationalism cannot provide answers to the challenges of our times. Politicians must set out clearly what is at stake. They also have to speak out loudly their European convictions.

How can you ask to favour the European cause if the leaders themselves do not have the courage to defend and promote European integration? It is as simple as that. We need European policies, but also European language. I’ve tried to give you a taste of both. Thank you.

Sea ports play an important role facilitating the European Union’s external trade (90% of the total, in terms of weight) and internal market exchanges (40% of the total). They provide a service to many other industrial sectors and are nodal points of inter-modal logistic chains of key importance for the sustainable growth of transport in Europe.

European ports are also important job generators. At EU level, the extent of the employment effects of port activity (direct, indirect, induced and related activities) represents million of jobs¹ and a significant contribution to economic growth (GDP).

In the perspective of the economic recovery, there is a question of ensuring that economic growth and the creation of jobs are not hampered by constraints in ports and in the links to and from them. Good port services are of key importance for reinforcing the competitiveness of European export companies in world markets.

However, the development of ports and the integration of ports in wider logistic chains remain uneven at European level. Some European ports are important generators of added value and employment at the local, regional, national and even European levels. They serve hinterland areas that go far beyond national boundaries. Some other ports are lagging behind in terms of efficient use of available facilities, reliability in the handling of freight and passenger’s services and contribution to sustainable transport effort.

The disparities of performance between different European ports affect the distribution of cargo flows and on the organisation of logistic chains across Europe.

Poor-performing ports represent a missed opportunity – and wasted resources – for the creation of added value and jobs for the concerned regions. Moreover, ports are key nodal points of the Trans-European Transport Networks (TEN-T). Poor-performing ports represent a problem for the smooth functioning of the whole network.

The need for a transparent framework of financing and efficient use of public funding

There is a need to ensure the transparency of financing and accounting in ports in order to be able to verify if public funding is used at an optimal level.

The Commission intends to create a level-playing field across Europe and is assessing if there is a need to provide for clear and transparent rules on port charges and port services. The services need to be efficient and the charges to be cost-based, proportional to the service provision and non-discriminatory. This transparency should avoid access-barriers to ports and allow the ports to be developed to their full potential.

Further transparency in the accounting would also allow for a clear check of public funding and to assure that only compatible state-aid flows into port financing. It should be noted that while compatible state-aid is of great importance to port development, on the other side, the Commission cannot allow for distortion of competition in Europe.

Commission’s approach to port services

For many years, the Commission has tried to develop a specific EU policy framework for sea ports. On two occasions in the past 10 years, the Commission unsuccessfully proposed secondary legislation implementing the EU Treaty rules on the freedom to provide services in the port sector.

Today, there is no EU legislation on the provision of port services. There is a patchwork of national regulations, with striking differences from one Member State to another. Exclusive rights in favour of particular operators and market entry obstacles still exist in the port sector.

The most recent Communication on Ports Policy, from 2007, is based on the promotion of soft law measures. Since then, the economic context has changed dramatically. The divide in performance between ports in different regions has continued to grow. While some ports in the EU have been engines of economic growth sustaining the recovery from the crisis, other ports are lagging behind.

The absence of a level playing field for ports and port services in Europe will accentuate the differences between ports. For several European regions, this would represent a lost opportunity of economic growth and jobs’ generation. At EU level, it would affect the performance of trans-European networks and negatively affect the overall competitiveness of companies. There is scope for considering that an appropriate, better focused regulatory framework at EU level could ensure a more systematic implementation of the Treaty rules on access to the port services market.

The Transport White Paper adopted by the Commission in 2011 foresees establishing a Single European Transport Area. A framework for ports is part of those initiatives. It is related to the “Blue Belt” initiative (simplification of administrative requirements in ports) and also to the implementation of the Transport Trans-European Networks (TEN-T). The smart pricing and funding proposals of the White Paper are related to the financing of port infrastructures. The White Paper foresees a social agenda for maritime transport, including social dialogue and training of port workers in different fields of port activities.

The impact assessment on the revision of the EU framework for ports services has been launched in 2011 and will take until the end of 2012. It will involve extensive consultation with all concerned stakeholders and the conduct of various fact-finding studies. It will also rely on dialogue with the social partners in the sector. The Commission will draw conclusions and come with fine-tuned proposals in 2013.

Background: Commission’s previous action

The first attempt by the Commission to move towards a coherent policy on ports and maritime infrastructures was made in 1997, with the publication of a Green paper on that subject.

In 2001, following the Green Paper consultation the Commission issued a Communication pointing out the necessity for action for reinforcing quality service in sea-ports and proposing, inter alia, a Directive on market access to port services.

In spite of widespread support from stakeholders and Member States’ authorities, the Commission’s attempts to address the problems identified in the Green Paper by means of legislation were rejected twice by the European Parliament (in 2003 and 2005).

In 2007, after a new consultation with stakeholders, the Commission adopted a new Communication on ports policy, announcing a number of “soft” measures in the form of guidelines (state aids, environment), best practices (benchmarking, indicators) and close cooperation and dialogue with stakeholders.
For more information see also: SPEECH/12/352

¹ : The study carried out by DG MARE concluded that all sea related sectors generated approximately five million jobs in 2004/2005. See: http://ec.europa.eu/maritimeaffairs/studies/employment/summary_report.pdf
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In this context: Transport: Steering Europe’s ports into the 21st century

Today in Sopot, Poland, at the ESPO conference on port financing and investment, Vice-President Siim Kallas outlined the European Commission’s ports policy review. Vice-President Kallas underlined the importance of transparency in financing and the need for a level playing field for ports competing across Europe, so ports can fully be exploited in the logistical chain and serve the European economy.

This will boost the performance of the ports, create more quality employment and ensure a stable environment for investment. The Commission wants to ensure that ports can operate in an efficient and transparent way, make use of their strategic role in the transport system and allow people to do business in the most sustainable and efficient way. Transparency and access to the market could be granted by establishing clear rules, without disrupting longstanding business models if they are working well, not least as an incentive to attract long-term investments. Ports also need adequate financing – public and private – to cope with rising demand.

Public financing should be used in a transparent and effective way. Connections to the hinterland must be facilitated by integrating the ports seamlessly into the trans-European transport network (TEN-T). This week, the Commission launched a stakeholder consultation to collect their opinions on the state of play and the way forward. In September the Commission will organise a high-level conference to discuss the outcome of this consultation with the sector. The Commission intends to present proposals by spring 2013.