espresso Your monthly shot of EU news May 2010 What’s Brewing? Another game of musical chairs espresso Black & White European Citizens’ Initiative: “You’re a great person, but…” CO2 tax: The good idea that France wished it never had. From 1 July the outgoing Belgian government could potentially chair all relevant meetings, as happened in the recent past when the Czech Government collapsed halfway through its Presidency Through the grinder Dawn breaks on the Attention Age Behind the counter Lieneke Slegers on the importance of focus groups Gasping for air Were you left high and dry by the volcanic eruption in Iceland? You were not alone. Business meetings were cancelled, the Fisheries Council meeting postponed, and the European Parliament forced to scale down its timetable and push back any votes until the May plenary. EU business is thought to have lost millions as a result, at precisely the time when an economic recovery was appearing on the – albeit distant – horizon. Though a largely unprecedented event, European countries appeared to dither and dally, before closing their airspace on their own terms. Never before has the need for a socalled European Single Sky been so obvious. If Eyjafjallajokull’s legacy is a harmonised European system for air travel, perhaps travellers’ suffering will not have been in vain. The fall of the Belgian government as a result of yet another linguistic dispute has thrown into all too stark relief the fragility of Belgium as a nation state. But that was then. This is now. And this is an EU governed by the Treaty of Lisbon, a Treaty that allows any of the Presidency triumvirate (Spain, Belgium, and Hungary) to chair a meeting within this 18-month period. Whilst Espresso may be tempted to draw a parallel between our country of residence and that of the EU as a whole, at this point in time it is worth focusing on what this means for the Belgian Presidency of the EU, scheduled to begin on 1 July. Thus, perhaps Spain will decide it wants to hang on to its role as mediator, compromiser, and agenda-setter in the Council Working Parties, or perhaps Hungary will sense an opportunity to make a name for itself on the Brussels stage? It may seem bad timing for the Belgian Prime Minister to hand in his resignation two months before his country takes on the honour/poisoned chalice (delete as appropriate) of the EU Presidency, but in truth, with Belgian governments falling roughly every six months, there was always a risk of this situation occurring. There is a real risk that Belgium will be left on the sidelines during its stint in the Presidency sun, all of which is a tad embarrassing for a country which is about as pro-European as they come. espresso The Lisbon Treaty was meant to do away with the rotating Presidency system and replace it with a permanent President of the Council (ex-Belgian Prime Minister Herman Van Rompuy – how apt!) and a so-called Team Presidency consisting of three Member States. But in reality, it is not Belgium, nor Hungary, but Spain, the current Presidency, which is continuing to chair every Council meeting besides EU Summits and Foreign Affairs Councils. Please send your comments to the editor: [email protected] Although Lisbon was meant to streamline EU decision-making, which it has done in parts, the EU Presidency remains a somewhat farcical and uncertain arrangement in a globalised world where constancy and consistency rule. Until this is resolved, whether or not the holder of the Presidency actually has a government is neither here nor there. Robert Francis Editor visit: www.grayling.com espresso Your monthly shot of EU news May 2010 espresso Black & White You’re a great person, but… espresso I think we should just be friends.” How many times has the EU heard this common one liner from its citizens? Yet the EU just keeps insisting. The latest flit comes from the European Citizens’ Initiative (ECI), a tool brought in by the Treaty of Lisbon. Espre o In a nutshell, the ECI allows citizens to propose initiatives to the Commission if they are able to collect one million signatures from 9 Member States within 12 months. The EU hopes that the ECI will help create greater cross-border debate between citizens and bring them together on a certain issue. But there are problems to this crossborder debate. The first is that the proposed Commission draft is fraught with administrative burdens, since a proposed initiative will need to go through various litmus tests to see if it is deemed abusive, devoid of seriousness, or goes against the Union’s values. The initiative will also need to fall within the Commission’s powers to propose legislation. The second problem is to jump over the EU’s linguistic and cultural barriers in 12 months. Finally, even if the Commission does decide to draft such a proposal, it will likely be butchered during the EU’s co-decision process, leaving but the bare bones of the citizens’ original concern. The basic idea of the ECI may seem wonderful, and it has been publicised as a great policy to integrate citizens into the EU. Yet the ECI is at root the archetypal policy “made in Brussels”, thwart with short-sightedness and technocracy – the reason why citizens step away from the EU in the first place. Maybe – just maybe – though, citizens will take up the EU’s offer this time round, if only to let off some much needed steam. CO2 tax: the good idea France wished it never had In the aftermath of the governing party’s defeat in the March regional elections, French President Nicolas Sarkozy flip-flopped on the planned introduction of a nationwide CO2 tax in July 2010. Instead of questioning this U-turn, the question should be how this crazy project got so far? The CO2 tax project is one of the outcomes of the Grenelle de l’environnement, a broad debate on the environment which commenced with much enthusiasm in the summer of 2007. The first project that came out of JeanLouis Borloo’s hat, the man behind the Grenelle, was the bonus/malus tax for vehicles based on their CO2 emissions. The pilot project has been quite successful, and in an excess of goodwill it appeared possible to apply this system to all products sold in France. Mais apparemment c’est pas possible, at least not on a national scale as it would create unacceptable barriers to the internal market within Europe. Not in the current economic situation with proposals that could harm a country’s competitiveness in the short term. Not with limited support, with proposals watered down to the point where everyone agreed that they would be totally ineffective. In short, only a freshly elected government which had the CO2 tax on its programme could push such a project through. After the defeat of President Sarkozy’s UMP party in the regional elections, the government had to do something – anything! - but it had to be big. Killing the CO2 tax was an excellent idea, since nobody had asked for it, and it is probably not a measure that would have led to voters’ support. Thus, Sarkozy managed to demonstrate change whilst simultaneously getting rid of this deadweight. Whilst France may have given up going it alone, it also committed to push for the adoption of an EU-wide CO2 tax. While the EU appears to be a much better forum for the introduction of a tax system that could allow it to achieve its environmental targets, it remains to be seen if this French government still has the political power and will to obtain even the slightest progress on this in Brussels. Talander Jansen Mike Bourguignon Please send your comments to the editor: [email protected] visit: www.grayling.com espresso Your monthly shot of EU news May 2010 espresso Through the grinder! Dawn breaks on the Attention Age espresso Information explosion Consumers are already exposed to information overload, yet an increasing amount of information is produced all the time. For instance, at the current rate, the number of photos uploaded to the social networking site facebook will quickly reach 30 billion/year. Espre o No-ads mentality With the advent of Web 2.0 technologies and social media in the last decade, some are referring to the times we live in as the Attention Age. The Attention Age, seen as overlapping with the Information Age, can be described as a time during which the “commoditization of attention” will be ever increasing in relation to the mushrooming amount of information available, especially online. This poses a predicament for businesses seeking growth, since attention is quickly becoming a very scarce commodity, and grabbing it demands a new understanding of the marketplace. Whether one wants to sell or buy a product or service, today’s highly digitalised marketplace presents several key ‘barriers to attention’ including: Too much choice Business prospects, as well as customers, have never before been faced with as many solutions for solving their problems or as much choice for finding the solutions they seek. Blurred vision With broadband penetration on the rise globally and an increasing number of connected mobile devices, more and more people are constantly connected, and by trying to focus on everything at the same time, we end up with no clear focus of attention. With individual social networking sites such as facebook, LinkedIn, and Google Buzz having up to as many as 400 million users, advertisers are desperately trying to push ads out onto every available online avenue, leading many connected users to simply block, or ignore the ads. So what can business to do thrive in this lush desert of “attention commoditization?” There are few basic lessons that are worth heeding. • Do not underestimate the importance of social media; it’s here to stay in one form or another, so rather than ignoring it, try to understand it and engage your brand in the discussions that are already taking place. • Regard social media as an open, transparent, communications approach. • Remember to listen and learn before acting; learn to crawl before you walk. • Dedicate internal resources to social media. Engage actively in discussions online. Set clearly defined goals, expectations, and establish metrics for success analysis (contrary to common belief, the impact of social media on the bottom line is measurable). Taking the step from being a traditional company to becoming a company fully steeped in social media technologies is a scary one, but one that businesses will ignore at their own risk. “Now, as we are getting back to normal our focus can shift to relief measures for the industry. This is about practical measures to provide relief to the air transport sector so they can weather this crisis. The Commission is also proposing structural changes to ensure we do not face this situation again.” EU Transport Commissioner Siim Kallas on the fallout from the recent disruption in air travel 27 April 2010 Please visit our blog - The EU Lobby - at www.theeulobby.eu Emil Valdelin Please send your comments to the editor: [email protected] visit: www.grayling.com espresso Your monthly shot of EU news May 2010 espresso Behind the counter! espresso Name - Lieneke Slegers Espre o Job Title - Director Office - Brussels Nationality - Dutch Lieneke Slegers on the importance of focus groups Grayling Brussels Director Lieneke Slegers recently organised a major pan-European perception audit and a series of focus groups for a client. Espresso caught up with Lieneke to see how it went. valuable to be able to work with our experts on the ground, and it is true that we went about the discussion groups differently depending on the country. What was the main purpose of the audit? The main purpose was to identify which concerns consumers have with regard to a certain industry and to find out which issues related to this industry struck a chord with consumers. What did you think of the outcome of the groups? It was striking to see that globally there are issues which are very similarly perceived, whilst there are also obvious cultural differences to be taken into account. I recently read an article in the Financial Times explaining why discussion groups “tell you the obvious”. Although it’s true that much of what we concluded had already been predicted through our research, a lot of surprises also arose. How did you go about organising the focus groups? We made extensive use of our network to organize these groups in several countries in Europe, including the “big three” (France, UK and Germany) and Poland, as well as in the US, Brazil and Japan. We carried out a consumer-profiling exercise to ensure that we had discussion groups not just with random consumers but also with those related to our client’s sector and/or with social and political backgrounds. It was very I feel that Discussion Groups remain an extremely useful tool, although admittedly the targeted profiling of the participants adds a great deal of value to the success of the groups and their outcomes. Robert Francis Editor Rue du Luxembourg 14a, 1000 Brussels, Belgium Please send your comments to the editor: [email protected] visit: www.grayling.com
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