Brussels Update

4 May 2007


Commission gives German drinks packaging system “all clear”

The European Commission has dropped legal action against Germany's deposit and return scheme for drinks packaging, concluding that reforms stopped it being an illegal restriction of trade within the EU. The German government had initially said retailers should only accept returned bottles and cans of the exact type, shape and size in stock, while Euro0.25 deposits were charged regardless. Brussels took legal action, claiming this deterred drinks imports, and the European Court of Justice agreed. But reforms last May, with bottles and cans being returned to “every shop selling beverages in packaging of the same material type” have worked, making the system legal, Brussels says.

European Parliament committee accepts prepackaging liberalisation

There are indications the European Parliament may give into pressure from the European Commission and the EU Council of Ministers and accept close-to-maximum liberalisation of EU prepackaging size restrictions. The parliament's internal market and consumer protection committee has indicated MEPs will accept the abolition of various EU-approved prepackaging sizes for food and drink products previously backed by it: drinking milk, butter, ground or unground roasted coffee, dried pasta, rice and brown sugar. The committee is now suggesting national prepackaging rules continue for pre-packed bread and EU sizes for white sugar, wines and spirits. A full parliamentary session will consider these proposals.

Swiss packaging deal blocked

A planned forced merger of the carton packaging businesses of Norway Elopak and Switzerland's SIG has been abandoned, after the European Commission opened a detailed competition inquiry. Brussels has acknowledged the deal has collapsed, with a public tender offer for SIG shares by Elopak owner Ferd and Luxembourg-based investment fund CVC failing. The move had sparked an in-depth probe by the Commission over “serious concerns the transaction could significantly impede effective competition” in the European Union. Elopak and SIG both supply carton filling machines and carton material for non-carbonated liquid food products packaging. Brussels has now abandoned the investigation.




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