Tuesday, July 22, 2008

Open Europe press summary: 22 July 2008

Open Europe

Europe

Sarkozy denies "meddling" in Ireland but suggests second referendum be held on same day as EP elections;

Irish government confirms it is considering a second referendum in March

Following a meeting with Irish Taoiseach Brian Cowen in Dublin yesterday, French President Nicolas Sarkozy denied that he had last week suggested the Irish should be made to vote again on the Lisbon Treaty. He said: "I never said Ireland had to organise a new referendum. I said that at some stage or another the Irish had to be given the opportunity to give their opinion, they had to give their opinion. I never said there had to be a referendum. I didn't say on what question there would be a vote. I did not, in any way, meddle in Irish domestic affairs."

However he then went on to say, "Coming to Ireland would be to meddle, not to come would be indifference. What would you prefer, meddling or indifference? To come here shows the spirit of friendship." Sarkozy told the Taoiseach: "I'm trying to help you. You're better off making a deal with me, because afterwards you'll get the Czechs [EU presidency], and that won't be easy."

A joint statement issued by the leaders said Sarkozy respected the result of the Irish referendum but he was committed to the Treaty and that the ratification process was continuing in other member states. The Irish Times quotes Cowen saying, "The Irish Government for its part has made no decision in relation to a second referendum because the Irish Government have just begun a process of reflection, a process of assessment which is necessary now in the aftermath of the vote." However, Irish government officials told the Guardian that Dublin is considering going back to the electorate, possibly in March, for a second referendum.

The Irish Times however reports that "Although the Government is now keen to postpone a resolution until after the European Parliament elections next June, Mr Sarkozy proposed during private talks that a second poll should be held on the same day. Under the Sarkozy plan, which was made to Irish surprise, the strategy would be announced at the EU summit next December in Brussels." Under the plan, each EU state would be guaranteed a European Commissioner, while Ireland would also get declarations on issues perceived to be concerning Irish voters. Despite this, the paper reports that "The Minister for Foreign Affairs, Micheál Martin, dismissed suggestions that Mr Sarkozy wanted a second referendum or was exerting political pressure on Ireland. 'I don't think he was looking for solutions by October,' he said."

The Coulisses de Bruxelles blog notes, "Ireland will vote again, but it's a secret." It quotes Sarkozy saying, "We don't have a miracle solution and above all we don't want to impose one, we want the Irish people to feel respected in their choice, but we must equally take account of the fact that with Italy soon, it will be 24 countries that have ratified the Lisbon Treaty." The blog notes, "Decoded, that means we are not telling you to vote again, but we don't see how you could do otherwise."

The Irish Times reports that Sarkozy confirmed he would meet the Taoiseach again in Paris in September, before the EU summit the following month. He also reiterated his claim that there could be no future enlargement of the EU without the Lisbon Treaty. He said: "For there to be any further enlargement we must have moved to Lisbon. It's either Nice or Lisbon."

The FT notes that Sarkozy took part in a round-table discussion with leading proponents of the Yes and No camps, and quotes leading no campaigner Declan Ganley saying, "If there was a chink of light it was that he left himself with enough wiggle room to pronounce Lisbon dead in the future if he cannot revive it."

The Irish Times reports that Fine Gael leader Enda Kenny and Labour's Eamon Gilmore have warned that a second referendum cannot be held before next June. Gilmore said: "I put it bluntly that a second referendum is being floated. A second referendum, if it were put this minute, I know it would be defeated again. There is not a great deal of point in that." Former Green Party MEP Patricia McKenna said following the meeting: "We went through the motions. He is not getting the message. He wants the Irish people to put this treaty through by a referendum or by whatever means necessary."

The Irish Times reports that when Sarkozy and Cowen finally joined waiting ambassadors, ministers and advisers in the dining room following their one-on-one talks, a dispute broke out between the French Foreign Minister, Bernard Kouchner, and the President. Dr Kouchner was saying to the Irish side: "We understand, we're listening. . ." when Mr Sarkozy broke in: "There are no journalists around, Bernard. You can be tough." According to the paper, Kouchner, chastened by his pre-referendum experience (when he said the Irish would be the first victims of a No vote) told the paper that the visit was "a success because we are listening a lot and talking little". Sarkozy was nonetheless estimated to have talked at least two-thirds of the time.

According to the Guardian, Sarkozy was met with cries of "No means No" from hundreds of protesters including groups such as the Campaign Against the EU Constitution. According to the Telegraph, over two thousand demonstrators gathered outside the government offices where the talks were held.

FT Guardian Coulisses de Bruxelles IHT IHT 2 Irish Times 1 Irish Times 2 Irish Times 3 Irish Times 4 Irish Times 5 Irish Times 6 Hennessy EUbusiness European Voice Deutsche Welle Independent Irish Independent Irish Independent 2 Irish Independent 3 Irish Independent 4 EUobserver Telegraph OE blog

The Coulisses de Bruxelles blog notes that Czech Prime Minister Mirek Topolanek has announced that his country will ratify the Lisbon Treaty before the end of the year, once the Constitutional Court has given its verdict.

Coulisses de Bruxelles

Commission admits EU offer at Doha trade talks is "nothing new";

Mandelson accused of a "propaganda" exercise and "statistic gimmickry"

The Times reports that a dispute erupted at the outset of the world trade talks in Geneva yesterday as Peter Mandelson, the European Union's top negotiator, attempted to kick-start the proceedings with what he presented as an offer of a bigger cut in European farm tariffs. The proposal to reduce farm tariffs by 60 per cent - up from the existing offer of 54 per cent -was dismissed by Brazil as "mere propaganda", with Foreign Minister Celso Amorim describing it as "meaningless... purely statistic gimmickry."

AFP notes that even Mandelson's fellow EU Commissioner Mariann Fischer-Boel (Agriculture) said the offer was "nothing new". French Trade Minister Anne-Marie Idrac admitted that the substance of the EU offer had not changed, explaining that the difference between the two figures was merely down to whether tropical products were included in the tariff cut calculations or not. "Was there new progress, new percentages? The answer is no. Peter Mandelson this morning had clarified... what technical discussions have come up with - nothing more, nothing less," Idrac said.

Mandelson himself subsequently described the 60 percent proposal as a "reiteration" of the EU's position. "The more we clarify, the clearer it becomes exactly what we are offering in this round," he told journalists.

Michel Barnier, the French Agriculture Minister, said that no EU state would be prepared to accept new proposals. In the run-up to this week's make-or-break negotiations, the French government insisted that it would accept no further concessions on the European farm support regime.

In Ireland the Irish Farm Association has urged Taoiseach Brian Cowen to veto any deal following comments from the Irish government which stated that the current proposals were unacceptable to Ireland. The IFA has already threatened to withdraw support for the Lisbon Treaty in any future referendum should the EU not change its negotiating position.

The Brazilian delegation said the lack of progress meant that yesterday's talks were a waste of time: "Maybe it was a necessary meeting, maybe we have to go through that but it was actually totally useless from my point of view, because I did not hear any new ideas, any new suggestion", Amorim said.

NGOs were also highly critical of the EU stance. Oxfam International Executive Director Jeremy Hobbs said it was "very hard" to see how the US and the EU could say they were making big concessions in agriculture. "I think it's outrageous that they (the EU and US) come here (saying) it's time for the emerging markets to play ball, the hypocrisy is breathtaking - Oxfam is sceptical that a deal is possible in this context," he said.

Dr Dirk Willem te Velde of the Overseas Development Institute argues in a letter in the FT that the EU's international development policy is "incoherent", and warns that the protectionist pressure being heaped on Mandelson by members states such as France would endanger the Doha round.

FT FT te Velde Times AFP AFP 2 Independent leader Irish Times Irish Independent

The Sun reports that new incapacity benefit proposals will clamp down on so-called 'welfare tourists' from EU states. Any benefits claimant will have to work for at least six months before they can claim. The paper says the rules are to, 'stop EU arrivals landing a spurious job for a month then going "on the sick"'.

Sun

Commentators call for EU to offer Spain an IMF style bailout

The Fistful of Euros blog comments on Wolfgang Munchau's article in the FT calling for the EU to offer Spain an IMF style bailout. The blog notes that the problems currently experienced by Spain, in particular the ailing banking and construction sectors have been caused by the eurozone's one-size-fits-all monetary policy. In return for any relief Spain would lose control of some of its internal affairs: "this possibility was already implicit in the creation of the euro zone in the first place... one day or another this situation had to arise. And now it has."

Fistful of Euros

FT: Sarkozy plan threatens ECB independence

A leader in the FT argues that a new ECB reform package presented by Nicolas Sarkozy is flawed. It says that making the bank transparent through the introduction of minute-taking would open it up to political pressure, depriving it of true independence at a time when it needs it most.

FT leader

Belgium's linguistic divide overshadows political dialogue

Writing in the Irish Times, Jamie Smyth comments on the continuing political problems in Belgium. In a public television address Belgium's King Albert II issued a plea for the two groups to "invent new ways to live together". However Carl Devos, a political scientist at Ghent University, said: "I think compromise is unlikely before the June 2009 regional and European elections in Belgium". It was also pointed out by some politicians that amongst all these political problems Belgium is also experiencing a significant economic slowdown.

Irish Times Smyth

Romania defends record on corruption

The Romanian Foreign Minister, Lazar Comanescu, yesterday defended the country's fight on corruption claiming the laws were being firmly applied and the structure for tackling corruption was being put in place. This comes despite a report written for the European Commission by Willem de Pauw, a Belgian prosecutor, which said the authorities in Romania were still doing too little to reform the judicial institutions.

IHT

Sarkozy secures victory on constitutional change

In an extremely close and significant political victory, French President Nicolas Sarkozy yesterday won the backing of French lawmakers to push through a package of constitutional changes by a single vote. The changes were put forward as a way to bring French structures into line with other Western democracies, setting a two-term limit for the head of state and giving more powers to MPs.

It was noted in Le Figaro that "The idea is to turn the Fifth Republic, often described as a Monarchical Republic, into a little less of a Monarchy and a little more of a Republic." At a news conference in Dublin, Mr Sarkozy added "It's not one camp that has won against another this evening; it is French democracy that has won."

However, the opposition remain critical, as Socialist Senator Robert Badinter labelled the changes as a "consolidation of 'monocracy'".

IHT Times BBC NY Times

Austria's far-right poised to play key role in September election

Recent polls indicate that Austria's far-right Freedom Party (FPÖ) could hold the balance of power in September's elections, following the coalition government's collapse this month. At an estimated 20 percent support, Heinz-Christian Strache's party is rising in popularity and influence. Despite being outside the government, the FPÖ's position has led to the two main parties adopting a more eurosceptic tone, partly to blunt Mr Strache's popularity. However, the FT notes that with other opposition leaders viewed as 'political veterans', Mr Strache appears refreshing to many voters.

FT

Merkel backs EU 'associate' status for Ukraine; "no automatic mechanism concerning [EU] membership"

During her visit to Kiev, Angela Merkel, the German Chancellor, backed French plans to give the Ukraine 'associate member' status to the EU. However she hastened to add that the agreement "would mean that progress [in EU-Ukraine relations] had been achieved but there would be no automatic mechanism concerning [EU] membership". When asked if she had discussed the prospect of Ukraine joining the EU she replied: "This question is not on the agenda". In addition Merkel also supported Ukraine's bid to join NATO, refusing however to be drawn on when this might take place.

EUbusiness EUobserver Reuters - Deutschland FAZ

European leaders hail capture of Radovan Karadzic

Former Bosnian Serb leader Radovan Karadzic has been arrested. Karadzic is accused of being responsible for more than 20,000 deaths including Europe's worst atrocity for 60 years, the slaughter of 8,000 Muslims in the Bosnian town of Srebrenica. A statement from the EU presidency said the arrest was "an important step on the path to the rapprochement of Serbia with the European Union."

EUobserver EUbusiness European Voice Deutsche Welle BBC Der Standard Economist Independent Daily Telegraph El Pais

World

EU Foreign Ministers have finalised sanctions against Zimbabwe's President Mugabe. The new sanctions were agreed last week and extend existing restrictions to an additional 37 people and 4 companies connected to the Mugabe government.

Reuters

Indian government on verge of collapse

A forthcoming vote on a nuclear deal with America has left the Indian government on the verge of collapse. The government's communist allies withdrew support, arguing that the deal made India an American pawn. Now facing a vote of confidence the government is in disarray, calling in favours from MPs convicted of murder and bribing parliamentarians.

Guardian

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