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This WEEK in the European Union

ELITSA VUCHEVA

04.07.2008 @ 15:34 CET

EUOBSERVER / AGENDA (6 – 13 July) – Next week will be marked by the launch of the EU's Union for the Mediterranean, as well as by French President Nicolas Sarkozy's presentation in the European Parliament of his priorities for France's six-month EU presidency.

The Mediterranean Union was proposed by France last year to boost ties with the EU's southern neighbours, and its official launch is planned to take place during a summit in Paris on Sunday (13 July).

The launch of the Mediterranean Union in Paris is expected to be one of the cornerstones of the French EU presidency. (Photo: French presidency of the EU)

It is a major project of the French presidency and the brainchild of Mr Sarkozy – but its initial version was met with opposition by some member states and was eventually watered down.

The Mediterranean Union (officially: "Barcelona Process: Union for the Mediterranean") is still seen with scepticism by many analysts.

Additionally, it is not yet clear who exactly will attend the Paris summit on Sunday.

Leaders of all 27 EU members, plus 17 Mediterranean states, have been invited to the event, but some countries, including Algeria and Turkey, have still to decide whether they will accept the invitation or not. Meanwhile Libya's leader, Muammar Gaddafi, who has spoken out strongly against the idea, has said he would not go.

Before hosting the launch of the project and the celebrations in Paris, Mr Sarkozy will pass by Strasbourg on Thursday (10 July), where he will present the priorities of his country's EU presidency to MEPs gathered for their monthly plenary session.

Parliament plenary in Strasbourg

The deputies will also host European Central Bank (ECB) president Jean-Claude Trichet on Wednesday (9 July) for a debate on the parliament's annual report on the ECB, following the bank's decision to raise interest rates and in a global context of rising prices.

On Wednesday, MEPs will also debate and vote on a report on the EU's future enlargement strategy, stressing that the bloc's own capacity to absorb new states should be taken into account when considering membership applications in the future.

The report - which also says the EU will respect the commitments it has already taken, was approved by MEPs in the parliament's foreign affairs committee on 24 June.

Other issues on the parliamentarians' agenda will include a first-reading vote on the EU's energy package, in particular on the part focusing on gas unbundling – or the extent to which gas suppliers should be separated from gas distribution networks – on Wednesday, preceded by a debate on the issue on Tuesday.

They will also debate on Tuesday in a second reading and vote on a plan to include aviation in the EU's emissions trading system; a package of reforms to EU rules on food additives; and rules on airline ticket pricing that aims to do away with the annoyance of hidden taxes and charges in online ticket pricing.

On Thursday, MEPs will also vote on resolution on Zimbabwe and China, preceded by debates with the commission and the EU presidency on Wednesday.

G8 summit in Tokyo

This week (7 - 9 July), leaders of the group of eight largest economies in the world - US, Canada, Russia, Japan, the UK, Germany, Italy and France, collectively referred to as the G8 – will meet in Tokyo to discuss, among other things, the challenge of climate change and increasing concerns about global inflation, which is being driven by soaring oil and food prices.

With only a few days left before the summit, World Bank president Robert Zoellick this week called on the G8 leaders to act immediately to address the issue of increasing food prices, calling the crisis "a man-made catastrophe … [that] must be fixed by people."

Meanwhile, the European Commission will on Monday (7 July) present a proposal to change the current directive on value added tax (VAT) in the EU, so as to allow member states to apply reduced VAT on a permanent basis in some sectors.

On Tuesday, the EU executive is to adopt a package aiming to make transport greener; a proposal for a School Fruit Scheme with the goal of increasing the share of fruit and vegetables in the diets of children at school; and two communications on the situation in the fisheries sector following the surge in oil prices.

On the same day, the commission will present a proposal for a special financing tool to help farmers from poorest countries boost their food production in the context of soaring food prices.

According to press reports, Brussels is to offer €1 billion from the EU's unspent agriculture funds to achieve this goal.