On the second day of the Competitiveness Council, ministers adopted conclusions on a future patent system and a general approach on EU patents. Ministers also adopted conclusions on priorities ahead of the work with the EU’s future strategy for growth and jobs of which a transition to a eco-efficient economy is an integral part. The situation on the European car market was discussed at an informal lunch.

Common patent system for better climate for innovation in the EU
The ministers reached an agreement on a general approach on the Community Patent Regulation. A Community patent would mean that a patent covering the entire EU could be obtained through one application. Today it may be much more expensive to get patent protection in the EU than in our competing markets. An improved patent system is therefore a key element for European innovation and competitiveness not the least now during the financial crisis. The Treaty of Lisbon, which entered into force on 1 December, means that co-determination for the European Parliament now applies to the Community patent regulation. The general approach will therefore form the basis of the negotiations with the European Parliament during the Spanish Presidency.

The Council conclusions also contain the main elements of a single European Patent Court that will try cases on both the EU patent and existing European patents. In today’s system, patent processes for one and the same invention, must be conducted separately in each Member State. The establishment of a single court could mean annual savings of up to SEK 300 billion for European companies. Earlier this year, the Council requested an opinion from the European Court of Justice on the new European Patent Court. The European Court of Justice has not delivered an opinion yet, and today’s agreement sets out conditions for the coming opinion. The Commission is also to present a proposal on how the issue of translations of patents is to be solved.

“I am very pleased that we have finally seen a political breakthrough in these difficult negotiations that have gone on for so long. The EU patent will make it much easier and cheaper to protect innovations in the EU. This will give European industry better opportunities to compete on the global market,” says Minister for Trade Ewa Björling.

Competitiveness Council priorities for growth and jobs after 2010
The ministers adopted conclusions on priorities on the future EU strategy for growth and jobs after 2010. The conclusions will then be passed on to the heads of state and government at the European Council on 10–11 December.

The conclusions address issues such as:

• A transition to an eco-efficient economy to improve competitiveness for European industry by turning environmental challenges into business opportunities. Important issues focuses on energy and resource efficiency, promote public-private cooperation, investment into and development of environmental technology as well as working for a global carbon dioxide price. The importance of a global climate agreement is also emphasised.
• good framework conditions for businesses including better legislation to reduce administrative burdens and simplify regulations to strengthen companies’ competitiveness.
• A well developed innovation policy where the needs of even small and medium-sized companies are met and where all elements of innovation are emphasised and the importance of non-technological innovations is recognised.
• The importance of small and medium-sized companies, including women’s entrepreneurship, for growth and competitiveness is also emphasised in the conclusions.

“The Competitiveness Council has today stated that in the future, focus will be on a transition to a competitive, innovative and eco-efficient economy. In this work, regulatory simplification and investment in innovations within both services and products is important”, says Minister for Enterprise Maud Olofsson.

The situation in the European car industry
At an informal lunch, the Presidency, the Commission and representatives for GM, discussed the situation on the European car market. GM gave a report on the situation for Opel (Vauxhall). During the discussion it emerged that a restructuring of the automotive industry was required to safeguard the future. Such a restructuring must build on the internal market’s principles and goals to create “greener” vehicles that can contribute to the climate goals. The Commission and the Member States play an important role in promoting research and innovation. The role of the industry must be to create a well functioning entrepreneurship without subsidies that risk distorting the market. Potential subsidies must be reviewed and approved by the Commission.  It is important to avoid a competition in state subsidies between different Member States.

Better legislation and simplified regulations
Ministers adopted conclusions on continued work on better legislation and simplified regulations to reduce the administrative burden and make it easier for the EU’s companies.

European Private Company
The Council reached no agreement on the new company form, the European Private Company.