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EUROPEAN REVIEW

ISSUE 9 - Page 5

EU and its people face up to e-Commerce in eEurope

With the ever-quickening progress of Information Technology the EU is anxious for Europe to take it up, if only to compete with the USA. In this feature we outline the efforts they are making to get us online.

The European Commission has recently been considering how to legislate for the burgeoning business activity which is taking place on the Internet. The Council of Ministers has also arrived at a 'Common Position' which will be sent to the European Parliament for a second reading under the 'co-decision procedure'.

At stake is the desire among EU leaders to foster the growth of this so-called e-commerce to create employment and new businesses; in the United States Internet-related companies alone today account for 2.3 million direct jobs. Opposed to this is the desire of some Member States to control the net as regards pornography, fraud, racial hatred etc. 'Doing business electronically is increasing rapidly both for companies and for consumers. But without security and trust, there won't be a notable shift towards commercial and financial transactions on the Internet' said Erkki Liikanen, Commissioner responsible for the Information Society. Internal Market Commissioner Frits Bolkestein noted that the legislation is a foretaste of how the Commission intends to help develop the whole area of electronic commerce. 'We can expect half of the European population to be connected to the Internet by 2005 and our integrated approach to electronic commerce - an effective mix of government regulation, [and] self-regulation that allows for technological development - is designed to put Europe in the forefront of this revolution' he said.

The Commission is also looking forward to the next stage of Internet development, where developments in television and mobile telephone technology are expected to bring in a 'wireless Internet'. 'Europe needs to build on its strengths', says Mr Liikanen. 'It has a leading role in mobile communications and digital TV. Yet the uptake of the Internet has been relatively slow. These industries are currently converging, giving Europe the opportunity to capitalise on its technological strengths and to harness its educational excellence and release its entrepreneurial potential. By combining digital literacy with strength in mobile communications, Europe can lead the next great leap to a wireless Internet world'. After earlier protests from industry groups, the new proposals seem to have won widespread support. The UK European Competitiveness Minister, Helen Liddell, said the rules would give confidence to both consumers and businesses.

'This directive must come into force as soon as possible', she said. 'We all know that technology is rapidly developing. This progressive legislation is about giving Europe a competitive advantage'. The directive lays down a minimum set of rules for consumer protection so that online sellers would not have to deal with 15 different national legal systems as business previously feared. It also allows Member States to take legal action against web companies but only under certain conditions such as when the country where the company is based has refused a request to deal with the problem. It is hoped that the new framework will allow Europe's $16.8 billion in Internet revenues to overtake the $71.4 billion forecast in the US this year. Meanwhile the Commission President, Romano Prodi, has launched a new initiative which aims to make all Europeans members of the information society.

Commissioners
Liikanen and Bolkestein

His 'eEurope' document proposes 10 priority areas for action with ambitious targets to be achieved through joint action by the Commission, the Member States, industry and the citizens of Europe. These areas include bringing the new technology to various social groups such as youth and the disabled, seeking to reduce the price of Internet access by stimulating competition and to speed up the web for use by the research and academic community. Other aims mentioned in the communication include the greater use of smart cards, maximising the availability of risk capital for high-tech small businesses (SMEs), sharing and accessing healthcare information online as well as applying technology to transport and government information. Mr Prodi stated that 'these changes, the most significant since the Industrial Revolution, are far-reaching and global. They are not just about technology. They will affect everyone, everywhere. Managing this transformation represents one of the central economic and social challenges facing Europe today. The eEurope Initiative is intended to help overcome these challenges and thereby accelerate the modernisation of the European economy, with a positive impact on employment, growth, productivity and social cohesion'.

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The Commission is also looking forward to the next stage of Internet development, where developments in television and mobile telephone technology are expected to bring in a 'wireless Internet'. 'Europe needs to build on its strengths', says Mr Liikanen. 'It has a leading role in mobile communications and digital TV. Yet the uptake of the Internet has been relatively slow. These industries are currently converging, giving Europe the opportunity to capitalise on its technological strengths and to harness its educational excellence and release its entrepreneurial potential. By combining digital literacy with strength in mobile communications, Europe can lead the next great leap to a wireless Internet world'. After earlier protests from industry groups, the new proposals seem to have won widespread support. The UK European Competitiveness Minister, Helen Liddell, said the rules would give confidence to both consumers and businesses.		'This directive must come into force as soon as possible', she said. 'We all know that technology is rapidly developing. This progressive legislation is about giving Europe a competitive advantage'. The directive lays down a minimum set of rules for consumer protection so that online sellers would not have to deal with 15 different national legal systems as business previously feared. It also allows Member States to take legal action against web companies but only under certain conditions such as when the country where the company is based has refused a request to deal with the problem. It is hoped that the new framework will allow Europe's $16.8 billion in Internet revenues to overtake the $71.4 billion forecast in the US this year. Meanwhile the Commission President, Romano Prodi, has launched a new initiative which aims to make all Europeans members of the information society.

	Commissioners Liikanen and Bolkestein