Open Europe press summary 24 September 2008

Europe

Telecoms industry says EU price-capping for texts is "politically motivated" and will spell the end of free handsets
There is widespread coverage of the EU Commission's plans to cap the price of text messages. The plans were immediately criticised by the telecoms industry, Britain's telecom regulator Ofcom and the British Government.

The Telegraph reports that phone companies warned that the moves would harm consumers by spelling the end of phone contract packages that include free handsets. Vodafone said the new EU price caps could make it more expensive to own a handset as phone operators seek to pass on the burden of reductions to the consumer. The GSM Association, which represents operators such as Vodafone, said that industry revenues had fallen by 26 per cent since the EU first moved to cap roaming voice calls last year, and accused the Commission of "politically motivated regulation".

David Pringle, a spokesman for the Association, told AFP that "A short-term political agenda should not take precedence over the long-term economic impact of regulation."

The mobile phone industry has the support both of Britain's telecoms regulator, Ofcom and the Government. "We consider such an important change should include a more complete consideration of the impact, including the wider effect of the proposals on the retail prices faced by mobile and fixed subscribers," said a joint statement from Ofcom and the Department for Business.

The proposal is part of the "Telecom package", which, as Der Spiegel reports, leaves even experts struggling with the vast size of the document.
Mail WSJ Telegraph BBC FT AFP Spiegel

European Parliament set to vote on anonymous blog ban
The European Parliament is preparing to vote today on proposals for the EU regulation of blogs with the aim of extending similar rules to blogs that currently apply to the broadcast and print media. Marianne Mikko, an Estonian centre-left MEP, is concerned that growing numbers of blogs are being used by individuals with "malicious intentions or hidden agendas". She has proposed that bloggers should be required to identify themselves and that some popular blogs shouldbe made to declare their interests. Opponent Chris Heaton Harris MEP said: "Mrs Mikko obviously does not understand that blogs have become the life blood of a vibrant democracy."

Thursday's vote in the European Parliament is not legally binding but is an indicator of growing EU concern over the influence of blogs on the internet. A recent internal European Commission report, leaked three weeks ago, found that the EU was losing the battle for hearts and minds online. "Blog activity remains overwhelmingly negative [towards the EU]," it said.
Telegraph EU Referendum Blog Open Europe blog 1 Open Europe blog 2

EU regional development funds given to Italian national football team;
EU official: The deal might fall within EU rules on promoting tourism
The Telegraph reports that the regional government in Calabria in southern Italy - classed as one of Europe's poorest regions - has allocated economic development money from the EU's structural funds to pay Italy's national football team for promotional branding during the current World Cup campaign. The funds were originally meant to pay for ports to be built in the region. Included in the cash transfer is a "testimonial" payment of £398,000 to a charity established by the Italian footballer Gennaro "Rino" Gattuso, who plays for AC Milan, one of the world's wealthiest football clubs.

Beniamino Donnici, the Italian MEP who revealed the reallocation, has asked the European Commission to investigate why the funding has been diverted to one of the world's wealthiest football federations. He said, "This is madness on a scale worthy of the Guinness Book of Records. Why is this public money being spent on the world champion football team and not on Calabria?" It is noted that Calabria is home to the N'drangheta, one of Italy's most powerful and violent mafia organizations, which has in the past been accused of siphoning off EU regional funding. A spokesman for the European Commission said that Calabria's decision might fall within EU rules on promoting tourism. Meanwhile, President of the Calabrian regional government, Agazio Loiero has defended the "sponsorship" deal saying it would promote the "positive image" of Calabria, adding that only £1.4 million will go directly to the Italian national team out of the £6.4 million EU grant, with the rest being spent on advertising related to the World Cup sponsorship.
Telegraph Open Europe research

Labour MEPs vow to end British opt-out from EU working hours rules
The FT reports that Labour MEPs have said they may vote against a proposal to extend the British opt-out from the EU's rules restricting the working week to 48 hours. A revised version of the Working-Time Directive is due for a second reading in the European Parliament shortly and a final vote is due at the end of the year.

Labour MEP Stephen Hughes said that a vote opposing the exemption at the party's annual conference in Manchester this week had given MEPs a green light to go against government policy and vote and against the opt-out. Hughes said: "The overwhelming adoption of this emergency resolution makes the position of the Labour party crystal clear - there is no place for opt-outs from health-and-safety laws like the working-time directive."

It is reported that business leaders fear that Labour MEPs will join forces with MEPs from other member states to kill off the British opt-out. David Frost, Director-General of the British Chambers of Commerce, is quoted as saying, "Maintaining the UK's opt-out from the working-time directive must be an absolute priority for the government." Business Minister Pat McFadden said the Government will continue to argue for the retention of the opt-out.
FT

Justice Commissioner Jacques Barrot yesterday said that Italy's strict immigration laws, notably on the automatic expulsion of "undocumented" migrants from other member states, "pose problems of compatibility with community law".
EUobserver

Sarkozy joins MEP calls for tougher EU regulation in the face of financial crisis
EUobserver reports that French President Nicolas Sarkozy is calling for a global regulation summit, saying that capitalism should be more "regulated" and less "opaque". In a speech to the UN General Assembly Sarkozy said, "Let us build a capitalism where ratings agencies will be subject to controls and punished when necessary, where transparency of transactions will replace opaqueness", adding, "Let us rebuild together a regulated capitalism in which whole swathes of financial activity are not left to the sole judgment or market operators."

In Le Monde, Dominique Strauss-Kahn, Managing Director of the IMF, writes "whilst Europe considers its banks to be healthier than its American counterparts, it cannot afford not to react in the face of a crisis which is shaking confidence in its markets".
IHT FT EUobserver Deutsche Welle FT-Gros BBC WSJ Euractiv Coulisses de Bruxelles Le Monde-Strauss-Kahn

Ruth Kelly to quit Cabinet, potentially sparking a reshuffle which could see Geoff Hoon become new EU Commissioner
On Newsnight, Geoff Hoon did not deny that he may be under consideration by Gordon Brown to replace Peter Mandelson as EU Commissioner.
Mail

There have been fresh calls to scrap the European Parliament's 'travelling circus' after it was revealed that repairs running into millions of euros are needed to secure the Parliament building in Strasbourg after the roof collapsed.
Independent

Austria joins calls to pressure Ireland to ratify Lisbon Treaty
In an op-ed in the run-up to the elections in his country, Austrian Chancellor Wolfgang Schüssel dismisses the more critical stance towards the EU of the Austrian social democrats. He also urges Ireland to put forward very concrete proposals on how to solve what he calls the present EU institutional reform crisis, saying "soon 26 member states will have ratified the Lisbon Treaty, and thus it would not be wise for one country to block the ability to act of the whole Union."
Standart

EU court adviser backs UK in retirement challenge
The ECJ's Advocate General Jan Mazak said yesterday that British retirement law, under which the over-65s can be forced to stop working, does not breach EU law, despite a claim by British rights' group Age Concern.
AFP Reuters

EDF has finalised its deal to buy British Energy.
FT

Le Monde: Social democracy to be "paralysed by its contradictions" across Europe
A news feature in Le Monde notes that only seven of the twenty-seven member states are run by social democrats. Recent elections in Italy, Ireland, Belgium, Poland, Denmark, Greece, Estonia and Finland have confirmed the tendency towards right-wing government. The left faces an "identity crisis" as it struggles to accommodate its ideology with free market forces and the challenges of globalisation, Le Monde reports.
Le Monde

A report from Eurostat shows that Europe's total population will decrease without immigration.
EUobserver

The EP is to adopt new European legislation to combat terrorism.
Euractiv