Annual Report 2005
Foreword
2005 was a year marked by change for the EFTA Surveillance Authority. Mr Bernd Hammermann ended his tenure as a College Member in June, after 10 years with the Authority. In August, the Authority lost its President when Mr Hannes Hafstein sadly passed away.
During the second half of the year, a new College with Mr Kurt Jaeger and Mr Kristján Andri Stefánsson started to function. At year's end, Mr Einar M. Bull's term with the Authority came to an end, and Mr Bjørn T. Grydeland took over as the Authority's President.
28 participating States with more than 455 million people make the EEA the world's largest Single Market. For Iceland, Liechtenstein and Norway, the EEA Agreement ensures open and free access to their most important trading partner, the EU. The Authority is one of the cornerstones upon which the EEA Agreement is based.
In 2005, the Authority initiated tasks in several new areas. During the year, it took up its new inspection functions in accordance with the new aviation security package. In the field of electronic communications, it handled its first notification under the eCOM notification procedure.
The Authority maintains its focus on ensuring the timely and correct implementation and application of EEA legislation by the three EFTA States. This emphasis helps to ensure that the EFTA pillar of the EEA reaches and maintains the same level of compliance with Common Market rules as the EU. The Internal Market Scoreboards issued by the Authority and the European Commission bear witness to the EFTA States' progress in this regard. Nevertheless there is room for improvement. The last Scoreboard shows that Iceland's and Liechtenstein's transposition deficits slipped back to 1.9% and 2.1%, respectively. The Authority will work to ensure that these deficits are reduced. A continued success will however require a persistent focus in the EFTA States.
The Authority's work in the field of competition law is centered on potential areas of individual breaches of the EEA Competition rules. The Authority is however increasing its use of sector inquiries to gauge the competitive situation in entire sectors of the economy. During 2005, the Authority completed a sector inquiry into the sale of sports content to new media such as 3G mobile telephones. One new sector inquiry was initiated to examine competition in the electricity markets in the EFTA States. Two other inquiries currently scrutinize the situation with regard to retail banking and business insurance. With respect to state aid the Authority took action to ensure recovery of aid that has been granted unlawfully.
The Authority's role is to ensure that the EEA Agreement is respected. In its work, it is bound to seek a proper balance between the rights and obligations under the Agreement. It is positive, both for the EEA/EFTA States and for the Authority, if disputes about the functioning of the EEA Agreement can be settled in due time and without time-consuming processes. A swift resolution of cases is important to all parties involved. Many cases have in the past year been closed with a positive outcome – also for complainants – in a short time. This has often been possible because of constructive dialogue. It is the Authority's view that these possibilities can be developed further.
Bjørn T. Grydeland, President
