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Senior EU officials are warning that it is proving harder than ever to reach an agreement on the European Union’s next multi-annual budget.

Ministers are meeting on Monday for further talks and EU leaders will hold a special summit in November to try to strike a budget deal.

The European Commission has proposed an overall budget of 1,033 billion euros ($1,337 billion) for 2014-2020.

Senior EU officials are warning that it is proving harder than ever to reach an agreement on the European Union's next multi-annual budget

Senior EU officials are warning that it is proving harder than ever to reach an agreement on the European Union's next multi-annual budget

Every six years or so, the EU has a big political fight about the size and structure of its next multi-annual budget.

At a time of economic crisis, that looming row is once again upon us.

The Commission points out that the budget it has proposed represents only about 1% of Europe’s income, and many countries are supportive.

They want to protect spending programmes from which they benefit, such as the Common Agricultural Policy or Regional Funding for poorer areas of the European Union.

But a number of influential countries argue that increased spending is not tenable and they want a real freeze in the size of the budget.

 

Employees who fall sick during their annual leave are entitled to take corresponding paid leave at a later date, the EU’s top court has ruled.

The European Court of Justice (ECJ) ruling is legally binding throughout the EU.

Thursday’s ruling was prompted by a Spanish trade union case against a group of department stores.

“The right to paid annual leave cannot be interpreted restrictively,” the court says.

The court in Luxembourg said the EU Working Time Directive grants workers a right to at least four weeks’ paid annual leave “even where such leave coincides with periods of sick leave”.

Employees who fall sick during their annual leave are entitled to take corresponding paid leave at a later date, the EU's top court has ruled

Employees who fall sick during their annual leave are entitled to take corresponding paid leave at a later date, the EU's top court has ruled

The ECJ says “the point at which the temporary incapacity arose is irrelevant”.

“Consequently, a worker is entitled to take paid annual leave, which coincides with a period of sick leave, at a later point in time, irrespective of the point at which the incapacity for work arose.”

According to an earlier ECJ ruling, workers who fall sick before a period of annual leave can also reschedule that leave period so that it does not clash with their sick leave.

At least 15 EU countries use the opt-out, which enables workers voluntarily to work more than 48 hours a week.

An EU source said the ECJ ruling has full, immediate effect EU-wide, regardless of the type or size of employer.

Workers who believe their employer has infringed their right to paid annual leave can seek justice in their national courts.

Infringement cases against employers who violate the directive can also be brought by the European Commission or national governments.

In cases where workers fall sick towards the end of the year, and are unable to take all of their annual leave, they can under EU law carry over their unused leave into the next accounting period.

The ECJ has also ruled that the long-term sick have the right to accumulate at least a year of unused annual leave. But the ECJ says the amount is not open-ended and member states can set an upper limit.

 

 

The European Commission has said Google has “a matter of weeks” to allay concerns it is abusing its dominant position in the search engine market.

An investigation by Europe’s antitrust head Joaquin Almunia looked at whether Google gave preferential treatment to its own services in its search results.

Joaquin Almunia said the company must now “offer remedies” swiftly.

A Google spokesman said the company disagreed with the conclusions, but would work to resolve the matter.

“We’re happy to discuss any concerns they might have,” Google spokesman Al Verney said.

“Competition on the web has increased dramatically in the last two years since the commission started looking at this and the competitive pressures Google faces are tremendous.”

An investigation by Europe's antitrust head Joaquin Almunia looked at whether Google gave preferential treatment to its own services in its search results

An investigation by Europe's antitrust head Joaquin Almunia looked at whether Google gave preferential treatment to its own services in its search results

The commission had been investigating Google since November 2010 following complaints from several rivals.

In a statement, Joaquin Almunia said Google had the chance to outline steps to address the claims, rather than face formal action.

“Should this process fail to deliver a satisfactory set of remedies, the ongoing formal proceedings will of course continue,” he said.

The investigation outlined four areas where Google’s practices “may be considered as abuses of dominance”, Joaquin Almunia said.

Those practices are:

• The manner in which Google displays “its own vertical search services differently” from other, competing products.

• How Google “copies content” from other websites – such as restaurant reviews – to include within their own services.

• The “exclusivity” Google has to sell advertising around search terms people use.

• Restrictions surrounding portability of advertising content which prevents “seamless transfer” to other non-Google platforms.

Joaquin Almunia said he had outlined these concerns in a letter to Google’s executive chairman Eric Schmidt.

 

The European Commission warns Hungary that it faces legal action if it fails to change reforms to its central bank, data protection and judiciary.

Hungary’s PM Viktor Orban was given a month to respond, Reuters news agency reports.

Critics say the new central bank law puts the bank’s independence at risk. It allows Viktor Orban to install a new deputy governor.

Viktor Orban’s conservative Fidesz party has a two-thirds majority in parliament.

The European Commission launched an “infringement procedure” against Hungary on Tuesday, the first stage of which is a warning calling for changes to the controversial laws.

“We do not want a shadow of doubt on respect for democratic principles and values to remain over the country any longer,” Commission President Jose Manuel Barroso said.

There are fears that a new data protection authority will come under Fidesz influence and that a plan to make hundreds of judges retire early will undermine the judiciary’s independence by enabling new pro-Fidesz appointees to replace them.

The European Commission can go as far as imposing fines and taking Hungary to the European Court of Justice.

Thousands of Hungarians have demonstrated over what they see as Fidesz authoritarianism. A new media authority set up by Fidesz is also highly controversial.

The changes are part of a new constitution which took effect on 1 January.

Viktor Orban says the criticisms are politically motivated. He argues that partisan bickering has for too long handicapped Hungarian politics and that the last vestiges of communist influence need to be rooted out.

Correspondents say a compromise may be found because Hungary is struggling to service its debts and wants to reach a new deal with the EU and International Monetary Fund on a standby loan.

Hungary’s total debt has risen to 82% of its output, while its currency, the forint, has fallen to record lows against the euro.

The EU Economic and Monetary Affairs Commissioner, Olli Rehn, has already warned that Hungary could face a suspension of EU cohesion funds – support for regional projects.

Nearly a year ago a row between Hungary and the Commission was defused when Viktor Orban’s government agreed to amend the wording of the new media law, in the sections on balanced reporting, country of origin and media registration.