Brussels begins legal action over 'open skies' deals

Brussels has opened legal proceedings against 11 national governments over bi-lateral aviation pacts with the US.

The deals were ruled illegal by the European Court of Justice in 2002 on the grounds of discrimination as they only give individual airlines the right to make flights, not all EU carriers.

"It is over one and a half years since the European Court of Justice ruled that the discrimination between EU airlines embodied in the member states' bil-ateral agreements with the US is contrary to EU law, yet that discrimination still remains in place," said EU transport chief Loyola de Palacio in a statement.

"Member states must take the necessary measures to comply with the court rulings. It is unacceptable that member states continue to be party to agreements that deny consumers and airlines the benefits of the European Single Market more than one and a half years after the court judgments."

De Palacio's plans, unveiled in Strasbourg on Tuesday, demand that Austria, Belgium, Denmark, Finland, Germany, Luxembourg, Sweden and the UK all renounce their deals.

Brussels also confirmed that it was opening separate legal proceedings against France, Italy and the Netherlands over other bi-lateral arrangements with the US.

And the transport commissioner also wrote to all member states forbidding them to engage in any new bi-lateral deals with the US.

If these countries do not comply, the cases will be heard again by the ECJ and national capitals could face daily fines for non-compliance.

Brussels stressed in the statement that Tuesday's decision would have no impact on the day to day running of airlines as any ruling would take 12 months to come into effect.

The European Commission hopes that by that time it will have brokered a satisfactory 'open skies' deal with the US.

National governments gave the commission a mandate in 2003 to negotiate a so called "open skies" deal on behalf of all EU countries.

After six rounds of talks with US authorities progress has stalled over EU market access, and national governments rejected the terms of an interim deal in June this year.

EU transport chief Loyola De Palacio has been threatening for some time to force member states to tear up their agreements with the US, but Brussels is confident that Tuesday's decision will not affect the on-going "open skies" negotiations.

Technical level talks are expected to resume in September 2004.

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