Eight Member States who have signed bilateral air transport agreements with the US referred to the European Court of Justice (ECJ)

The European Commission took the final step in legal action against the eight Member States (Austria, Belgium, Denmark, Finland, Germany, Luxembourg, Sweden and the UK). The Commission believes that the cumulative effect of a series of bilateral government-to-governement agreements, granting US Airlines access to the European civil aviation market, interferes with the operation of that market to the detriment of European carriers.

To ensure that aviation agreements negotiated with the US guarantee free and fair competition for all EU airlines, the Member States have given the Commission a mandate to negotiate on behalf of the EU. But as its scope is not broad enough, the Commission has no option but to pursue legal action.

Background:

Since 1995, these eight Member States have signed bilateral aviation agreements with the US. The Commission has constantly informed Member States that the conclusion of such agreements would weaken the EU and that without a common position, no Member State should enter into any agreement with the US.

Nevertheless, Member States proceeded to do so. Therefore, in 1995 and 1996, the Commission initiated the procedure under Article 169 of the EC Treaty.

On 25 July1996, as the Council of Ministers agreed on the first stage of a mandate to negotiate an EU agreement with the US, the Commission decided to suspend the procedure of Article 169. After completion of this first stage, it became apparent that the Council was not willing to provide a full mandate to successfully finalise the negotiations with the US. Moreover, in the meantime, several Member States continued individual negotiations with the US.

With this background, the Commission decided to reactivate the procedure under Article 169. Thus in March 1998, the Commission authorities (DG IV) addressed reasoned opinions to the eight Member States and requested them to take the measures necessary to comply with this reasoned opinion within two months following notification. Regrettably, the Member States did not follow this request.

In a last attempt, the Commission raised the issue of a common EU approach again in the Council in September and in October 1998, but no tangible progress was made. Therefore the Commission has decided to pursue the procedure under Article 169 to the finish and has today submitted applications to the ECJ against the eight Member States.

It is the hope of the Commission that substantial progress leading to the granting of a full negotiating mandate will be made in the coming months.

This article is based and incorporates information provided by the European Commission (Press releases) and is intended for general information. Specialist advice should be sought before acting on it.