Microsoft and EU Competition Policy March 2005, EU orders Microsoft to pay 497 million euros. Microsoft pays the fine and appeals the decision in the European Court of First Instance. In 2005 and 2006, additional fines for not fully complying with the ruling. In 2007, Microsoft loses the case and announces it will not appeal anymore In 2008, EU fined Microsoft 899 million euros for failure to comply with the decision. Microsoft lodged an appeal.

Industrial and Enterprise Policy Industrial policy is the antithesis of competition policy; state intervention to support certain sectors for socio-economic and strategic reasons. 1960s and 70s, national-level industrial policy Growing gap EU-US and EU-Japan Concorde, Airbus Growing belief that EC rather than national intervention is the key to Europe’s success Single market an integral part of EC’s industrial strategy Euro-champions instead of national champions Conflict between interventionist and market-oriented conceptions of industrial policy. Conflicting member state interests

Industrial and Enterprise Policy Enterprise policy: foster innovation, entrepreneurship, and competitiveness by providing a business-friendly climate and supportive regulatory environment. Entrepreneurship lagging behind US Small and medium enterprises (SMEs) Fr and Ger want to revive interventionist industrial policy 2005 New Industrial Policy Detailed screening of 27 sectors Cross-sectoral and sectoral initiatives.

Other issues Research and Development Education and Training Multi-annual framework programs Turkey became a member in 2002. Spending lower than the US Education and Training Preserve of national governments Mobility, exchange, and language teaching. Turkey participates.

Growth Rates 2003 2005 2007 EU 25 1.1 2.1 EU 15 0.5 0.9 1.8 USA 2.7 3.5 3.3 Germany -0.4 France 0.4 1.7 Italy -0.6 1.2 United Kingdom 2.2 1.6 Source: EUROSTAT, EUROMONITOR INTERNATIONAL

Employment Policy Employment is the weakest pillar of Lisbon strategy. Labor market rigidities in Europe 1997 European Employment Strategy: coordination of national employment action plans Lisbon Growth and Jobs Strategy Employment rate of 70% by 2010, 60% among women Effects of enlargement

Social Policy European Social Model –people’s Europe Reform of welfare states in Europe Social policy and employment Open method of coordination Historical Development Rome Treaty Labor mobility Equal pay for equal work by men and women European Social Fund

Social Policy Historical development (cont.) Single European Act QMV on health and safety of workers Dialogue between management and labor at Community level Fighting unemployment Social Charter (1989) Social consequences of single market British objection Social Protocol (1991) Maastricht Treaty –British objection Fears of social dumping

Social Policy Historical development (cont.) Amsterdam Treaty Labor Party in power in Britain Social Protocol becomes part of Treaty. Social Policy Agenda (2000) Concerns with unemployment and growth French activism for a ‘social Europe’. Britain emphasizes flexible labor markets