Europe
Several papers report that the UK has been forced to accept the Temporary Agency Workers Directive. The UK has consistently opposed the Directive since 2002, but no longer had enough allies to block it. Under the proposal, agency workers would get the same pay and conditions as permanent staff from day one. However, the qualification period in the UK is likely to be extended to 12 weeks, following recent CBI and TUC agreement over the issue, which could allow Britain to derogate from the day one requirement. This, however, is dependent on the continued agreement of the TUC as an official "social partner".
Business organisations are very critical of the deal, saying it will undermine the UK's competitive edge and cost jobs. In addition, organisations have objected to the CBI-TUC agreement. Tina Sommer, FSB chairman for EU and international affairs, said: "While British ministers pop champagne corks and hail this deal as a triumph, Britain's entrepreneurs will be drowning their sorrows. In these difficult economic times, small businesses need to be flexible in order to grow, and this directive will be like a steel rod for their backs. The back-room manner in which this deal was negotiated by big business and trade unions should be of great concern to all those who will suffer the consequences." The Irish Examiner reports that the Directive would push up labour costs by 30% in Ireland.
The FT reports that last night ministers also voted to keep the British opt-out from the EU's 48-hour working week cap. But the UK was also forced to accept a review of the opt-out within eight years time. The British Government had hoped that accepting the Agency Directive would allow the UK to secure a "permanent" opt-out from the 48 working week.
Business Secretary John Hutton described the outcome as "a very good deal for Britain".
Times Irish Examiner Mail Telegraph BBC FT Telegraph AFP El Pais
French government threatens Irish voters: they will be "first victims" if they vote 'No' to Lisbon; Cowen predicts a 'Yes' vote
French Foreign Minister Bernard Kouchner said that the Irish would be "punishing themselves" and that they would be the "first victims" should they vote 'No' to the revised EU Constitution. He said, "Yes, they're not happy because maybe nobody told them that Europe is confronting the rest of the world and that to have advantages for themselves, for the Irish...well, Europe has to develop, has to go in the direction of the Treaty of Lisbon. It would be very, very, very troubling...that we could not count on the Irish, who themselves have counted a lot on Europe's money."
Neil O'Brien, Director of Open Europe, is quoted in the Evening Standard accusing Kouchner of trying to "bully" Ireland, adding: "This is a despicable threat and deeply hypocritical too given that the French people overwhelmingly rejected it [the original constitution]." Lorraine Mullally appeared on CNBC Europe.
Thomas Rupp from the European Referendum Campaign said in response to Kouchner: "The French Foreign Minister's threat is the latest in a series of attempts to use the politics of fear to coerce the Irish into voting 'yes' to the Lisbon Treaty."
Meanwhile EU Justice Commissioner Jacques Barrot is quoted in La Nouvelle République saying an Irish no vote "would be a major inconvenience because very quickly London and Prague, whose governments are hesitating, would take this pretext to follow on Ireland's heels. Each country must be conscious of its responsibilities."
BBC Europe Correspondent Mark Mardell predicts on his blog that if the Irish vote 'No', the EU Constitution will be salvaged in piecemeal, gradual form. Le Figaro reports that Germany and France have said they will take a common position after the Irish referendum, whatever the result. They said "You can predict that there will be a common Franco-German reaction, whatever the result of the poll."
Reuters reports that Irish Prime Minister Brian Cowen is now predicting that the Irish will vote yes. He said, "I believe we are going to win this referendum. I think we will win because more and more people are coming to the conclusion that this is in Ireland's interests."
Euractiv reports that Irish MEP Kathy Sinnott has hit out against secret French plans for EU defence after it was reported that France would set a target for member states to spend 6% of GDP on defence - which would mean 10 billion euros for Ireland. She demanded that Paris make an immediate public announcement of its plans.
Independent Guardian Times FT BBC-Mardell El Pais Reuters Euractiv
European Parliament expenses row spreads to Labour and Lib Dems
Following the scandal over use of expenses by Conservative MEPs, Labour's Michael Cashman yesterday was found to be paying £30,000 a year to his civil partner, Paul Cottingham, despite the fact that he runs his own PR firm. Open Europe's Neil O'Brien was quoted on page 2 of the Sun as saying: "The row is widening. It's not just the Tories who are enjoying the lavish expenses. It will soon become clear everyone's at it." Neil is also quoted in the Mail, and appeared on Five Live's Simon Mayo Show.
It also emerged yesterday that Den Dover, a Conservative MEP forced to quit over the EU expenses scandal, has used European Parliament funds to donate to party finances. Electoral Commission figures show that MP Holdings, which is paid to give Den Dover secretarial and administrative support from European Parliament funds, gave the Chorley Conservative Party a donation of £1,200 in December last year.
The Independent reports that four Liberal Democrat MEPs channel parliamentary allowances to pay their staff through the party's Cowley Street headquarters. The party confirmed that Andrew Duff, Fiona Hall, Bill Newton Dunn and Sarah Ludford paid the party a fee for payroll and other administrative services, but insisted that funds were kept entirely separate from party finances.
The paper also notes that Conservative MEP David Sumberg has been branded "Britain's laziest MEP" for asking only two questions and giving two speeches since the last European elections in 2004. It was revealed earlier this year that the MEP made payments to his wife, Carolyn, of up to £60,000 a year for her services as a secretary.
The front page of the Times reports that the Conservative Party's poll ratings have climbed despite the MEPs' expenses scandal. The Conservatives are up five points at 45 per cent; Gordon Brown's poll rating is now below that of former Conservative leader Ian Duncan Smith, standing at 25 per cent; the Lib Dems are on 20 per cent. The number of voters saying the Conservatives are tainted by sleaze has increased 10 points since February to 61 per cent, however.
Times Independent Times Sun Mail Open Europe blog Open Europe blog 2 Guardian European Voice Le Figaro FT Telegraph Guido
UK to snub Ireland and support EU common corporate tax base?
The FT reports that Britain may weaken its opposition to a European Commission plan for a common corporate tax base in the hope that it would stem the tide of multinationals moving their tax domicile to Ireland, according to Brussels lobbyists. Irish opponents of the Commission's EU-wide tax project fear they will lose Britain's support as tax competition becomes a growing threat to UK revenues. The Treasury has repeatedly underlined its deep scepticism of the proposal, but it was unclear whether it would try to block other countries from adopting the plan.
Christine Lagarde, the French Finance Minister, has said France would push the proposal, known as the common consolidated corporate tax base (CCCTB), during its presidency of the EU later this year. Although the proposal is unlikely to make progress when it is first brought forward in September, a core group of countries, including France and Germany, have a good chance of winning enough votes under the "enhanced co-operation" procedures to adopt it next year.
Conor Foley of Hume Brophy, a lobbying firm based in Brussels, London and Dublin, said there was growing speculation about the British government's position since it would have an important role in determining the outcome of the vote on enhanced co-operation. Hume Brophy said the UK could be a winner from the proposal as it would secure extra revenues and mitigate tax competition. "In public, the UK government states that it does not support CCCTB. CCCTB as a Brussels-led tax plan would be a hard sell for any British government. However, in private the UK has a more considered position."
But the Treasury says its opposition is based on a principled objection. It said: "Like a number of other EU member states the UK is deeply sceptical of the case for a common consolidated corporate tax base. In an increasingly globalised world, countries need the flexibility to respond to shocks, and stimulate investment, employment and economic growth in different ways. Adopting a single set of rules for calculating the tax base within the EU would restrict flexibility and be counterproductive to achieving these goals."
A separate article reports that the Irish government has reassured the UK that it played no role in wooing UK multinationals. Ireland's department of finance held talks with the UK Treasury last month in response to the announcement by Shire the pharmaceuticals company, and United Business Media that they were establishing new holding company structures - Jersey-incorporated but tax resident in Ireland, where there are less onerous rules on the treatment of foreign subsidiary earnings. Irish officials insist they will contribute little new tax, create few new jobs as they are essentially headquarter operations, and that they will play into the hands of those in the European Union who allege Ireland is some sort of tax haven. A finance ministry official said: "We do not encourage the establishment of so-called 'brass plate' operations which seek simply to avail of our low tax rates."
Legal action against Government's broken referendum promise underway
Stuart Wheeler's legal action against the Government's broken promise of a referendum on the EU Constitution began yesterday. Rabinder Singh, QC, representing Mr Wheeler said: "The Government promised a referendum and should keep its promise." He said that at stake were the fundamental principles "of good administration, fair play and straight dealing with the public".
Express Express-leader El Pais
UK referendum on EU Constitution would not be a foregone conclusion
A ComRes survey for Daily Politics programme of 1,010 UK voters finds that 64% of UK voters believe that the UK should hold a referendum and 26% think Parliament should decide. 33% say that they would vote to accept the Treaty if given the opportunity. 40% say that they would reject it. 27% don't know.
Franco-German deal on EU car emissions plan
The FT reports that at their meeting yesterday France and Germany ended a disagreement over future EU targets for car emissions. Success in the talks between the two countries, Europe's largest carmakers, was seen as necessary for a wider agreement in the EU. "We have achieved a breakthrough," said Ms Merkel. Germany had feared Sarkozy would use France's EU presidency to push through rules that would penalise German car manufacturers, whose models are more powerful and polluting than those of French competitors.
Berlin had insisted all models of cars should contribute equally to the European Commission's proposed goal of cutting CO2 emissions to 120g per km by 2012. It had said an early version of the proposal put a disproportionate burden on German carmakers. In a joint statement, the two governments said they supported the Commission's goals but called for the final directive to include a "substantial phasing-in" to take into consideration the technological capacities of the car industry. The compromise, which states that the emission target should be an average figure for a manufacturer's entire fleet, should buy German carmakers time to invest in less-polluting technologies as they add new models to their fleet. The governments said in a statement that carmakers should be allowed to deviate marginally from the emissions target.
Ussher to sooth City fears on executive pay
The FT reports that Treasury Minister Kitty Ussher will today tell a top City audience that Britain will lead the fight against growing European calls for a crackdown on executive pay and bonuses. Ussher will attempt to quash fears that the Government could act to curb remuneration packages, as proposed by some trade union leaders and in sympathy with concern in other EU capitals. She will tell an international banking conference that pay and bonuses are not a matter for governments.
According to the FT her comments are intended to highlight Britain's position as a free-market champion in Europe and to counter growing fears that Gordon Brown's government is bowing to anti-business pressure from Labour's trade union paymasters. Ussher will say: "We will resist the calls that have been made for direct regulation of executive pay. "Of course remuneration packages should be strongly linked to effective performance and incentives should be aligned with the long-term interests of the business and shareholders; and we don't support rewards for failure." But she adds: "I'm clear that executive pay is a matter for boards and shareholders, not for governments and regulators."
Meanwhile George Osborne, the Shadow Chancellor, will tell the same conference that Gordon Brown is partly responsible for the slump in sterling values, after the banking regulation system he designed failed to avert the Northern Rock crisis. Mr Osborne, writing in today's FT, says: "It is surely no coincidence that the start of the sharp devaluation of sterling dates almost precisely from the moment when the world saw depositors queuing on British high streets."
Bayrou calls for "European social project"
François Bayrou, President of the French centrist party the Democratic Movement, has called for a "European social project", saying that Europe should "defend Europeans from globalisation" and not "defend globalisation to Europeans." He said "Europe is not first and foremost a market, it is about the defence of values and a project of society - the nature of this project is social. The vocation of the European institutions is not to defend competition, more competition, and only competition."
World
Le Figaro reports that Paris is preparing to send 1,000 troops to Kapisa, one of Afghanistan's most dangerous provinces in the country to the northeast of Kabul.
The EU is to freeze Iranian bank assets if it continues uranium enrichment.
No comments:
Post a Comment