1. 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.

2. 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

3. 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.

4. 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.

5. 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

6. 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

7. 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

8. 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

9. 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