BELGIAN STEWPOT: March 20, 2007

UNCLAS BRUSSELS 000982

SIPDIS

SIPDIS

STATE FOR EB/OIA, EUR/ERA AND EUR/UBI
TREASURY FOR OASIA/ICN - ATUKORALA
USDOC FOR 4212/OECA/JLEVINE

E.O. 12958: N/A
TAGS: ECON EFIN EAIR EIND SENV BE
SUBJECT: BELGIAN STEWPOT: March 20, 2007

Ref: (A) 06 Brussels 1035 (B) 06 Brussels 1725

(C) Brussels 477 (D) Brussels 332


1. Pension Funds Basing in Belgium

2. Court Supports Residents' Rights

3. Belgium: A Kyoto Progress Report

4. US Company Cited as "Climate Saver"

5. Belgium: Less Than a Good European

6. Belgian Chocolate a Controlled Name?

7. Brussels Casino A Winner

8. The Grinch Who Stole Carnival

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Pension Funds Basing in Belgium
--------------

1. (U) Belgium is tailoring its legislation to
attract the European and international pension
fund business. Starting with EU Directive
2003/41, Belgium adopted legislation last fall to
facilitate cross-border institutional pension and
retirement fund activities, and is working on
additional laws. These include setting minimal
prudential rules such funds must meet, alitting
multinational cpe their pension fund managers
Belgium regardless of thei. A zero-taxation schenn. By hosting
these lptors, Brussels hopes to expertise of its financial , and hopes
to deepen ththat trade in Brussels Financial trading center larger venues.
At presenth(##)infractions and finr continued use of a frmits infractions
(refs Ament, to take effect as oQms that citizen groupsemand penalt
ies for notions.

-------------- Belgium: A Kyoto Progress --------------

3. (mmission told Belgium greenhouse gas
emssion quotas on their industries. Belgium was
told to cut the CO2 permits it issues to Belgian
industry by 7.5 percent, permitting only 58.5
million tons annually, not the 63.3 million tons
the government proposes to issue. Witout such
an adjustment Belgium risks missing Qts Kyoto
target; end-2005 data showed the coutry had
increased CO2 emissions by 2 percent rather than
reduced them to 7.6 percent under the 1990
benchmark. Regional environmental and political
leaders complain that industry hQs already been
pressed hard, and worry that further cuts will
cost industry both money and jobs. The release
of the UN's Inter-government Panel on Climate
Change verifying that global warming is both real
and man-made bolstered Belgian public support for
tighter emissions controls, however. (ref C)

--------------
US Company a Climate Saver
--------------
4.(U) The WWF's "climate saver" program cited US
Nike company in Belgium as a model participant.
This new voluntary group of 12 leading
multinational companies agreed to achieve an
annual 10 million ton reduction of CO2 among
themselves. Among the six US companies in the
group, Nike Sports Equipment was portrayed by a
Belgian WWF officer as a model corporate citizen.
Its newly expanded distribution center in
Lakdaal, Flanders, features designed-in "green"
technology and windmills to provide a large share
of its electric consumption ? CO2-free of course.

--------------
Belgium: Less Than a Good European
--------------

5. (U) Charlie McCreevy, the EU Commissioner for
Internal market and Services, released on
February 1 his annual scorecard of EU-wide
implementation of the Commission's directives,
and Belgium fared poorly. The average number of
un-implemented EU directives among the member
states is 1.2 percent, the lowest percentage
ever. Belgium, however, has failed to transpose
into national legislation 1.5 percent of the
1,634 EU directives tracked. The country thus
ranks in 20th place out of 25, while notorious
Euro-sceptics such as the UK and Denmark actually
have much better scores. In terms of
infringement procedures running against it (the
EU mechanism to enforce delinquent member-state
compliance),Belgium scores little better: there
are 68 infringement procedures recorded, placing
Belgium 19 out of 25 in compliance. Analysts
blame Belgium's multi-layered federal structure,
where new directives (e.g., on the environment)
need to be approved by regional parliaments, for
Belgium's poor record. The poor score does not
square with Belgium's openly proclaimed
allegiance to the EU and all things European.

--------------
Belgian Chocolate a Controlled-Origin Name?
--------------

6. (U) Belgium's chocolate and confection trade
industry group Choprabisco is moving to have
Belgian chocolate treated like wine: a controlled
origin denomination. No less than Chianti having
to come from that region of Italy, Belgian
chocolate should be of Belgian origin, they
believe. Currently the product risks becoming a
generic name. In coordination with Belgian
export authorities, Choprabisco is proposing a
code for use of the terminology "Belgian
Chocolate." EU legislation is amenable to this,
and controlled use of geographical indicators
like sherry and champagne is well established.
Outside Europe such regulation is far weaker;
Belgium's confection sector, with an annual
turnover of 4.1 billion euros (US$5.3 billion) of
which 68 percent is from exports (see ref D),
already faces indiscriminate use of the term
"Belgian" or outright counterfeiting of products
in Canada, Japan and China.

--------------
Brussels Casino Wins Big
--------------

7. (U) While the Brussels Casino marked its one
year anniversary January 19, the biggest
celebration may be on account of its phenomenal
success after just one year. In 2006, more than
250,000 visitors placed bets and played the
slots, netting the casino some 25 million euros.
On an international scale, this places the
Brussels Casino in 11th place out of 75 casinos
ranked by Casino Austria International, an
organization that compiles data from 17
countries. During an average day, the Brussels
Casino receives 700 visitors. The average
gambler is 42 years old and spends 101 euros per
visit. For 2007, the casino plans to expand
beyond its current 22 tables and 208 slot
machines and to stay open until 5 a.m., one hour
later than the current closing time. The casino
is also paying off big for the city of Brussels:
in addition to employing 261 workers, the casino
pays 250,000 euros in annual rent to the city and
contributes a 44 percent business tax to the
Brussels region.

--------------
The Grinch Who Stole Carnival --------------

8. (U) Federal Minister of Transportation Renaat
Landuyt, in between filing court cases against
Brussels Airport noise opponents, has found a
truly pressing matter of public safety:
regulating the floats in Carnival parades. He is
proposing amendments to four laws on the books
that could result in police citations being given
to the many carnival floats and decorated carts
that snake through Belgian cities like Binche,
Malmedy and Stavelot as part of the pre-Lent
Mardi Gras tradition. These unlicensed vehicles
have apparently caught the eye of the Minister.
The legislative procedure to implement the new
regulations, however, means they will only come
into effect in four months... well after Easter.

IMBRIE