Open Press summary - 23 September 2008

Europe

German Justice Minister sees European Court of Justice as a "political problem that the member states should deal with"
In line with previous criticism by former German President Roman Herzog, German Justice Minister Brigitte Zypries has criticised the European Court of Justice (ECJ) in an interview with the Frankfurter Allgemeine Zeitung, saying "the ECJ has considerable competences that are not supposed to be used to extend the meaning of the actual treaty provisions, for example with regards to penal law. This is a political problem that the member states should deal with".
FAZ

Stoiber: Commission is ignoring proposals for cutting red tape
During a hearing in the European Parliament's Legal Affairs Committee yesterday, Former Bavarian Prime Minister Edmund Stoiber criticised EU Internal Market Commissioner Charley McCreevy for not responding to his proposals for cutting red tape. Stoiber is currently head of the "high level" advisory group charged with coming up with proposals on how to reduce the administrative burden for companies across the EU, as part of the Commission's goal of cutting 25% of the EU's red tape by 2012.

Stoiber said, "I hope the European Commission, especially Commissioner Charlie McCreevy will say yes or no to these proposals, which are not only consultative documents, but proposals to be taken seriously. Currently, there are 344 different reporting obligations for European companies. The total cost for all the companies to provide this information is around 20 billion euros. Now, the EU has set a 25% reduction target, which is a bold one, and the high level group has put forward a proposal that 7.3 euros could be saved if these obligations were reduced."

He went on, "We presented these proposals already in May to Commissioner McCreevy and he said a decision will be taken in the near future, but actually we haven't heard anything more from him since. It would be awful if you set up a high level group with all the pipes and drums in the attempt to move the Commission, and this high level group makes proposals, but then nothing happens."
EUobserver

MEPs blame Pentagon for Irish No vote
- investigation lanched on outside "interference" in referendum
It is reported that MEPs will this week investigate Irish press reports that the anti-Lisbon Treaty group Libertas received US funding for its campaign. Daniel Cohn-Bendit, joint leader of the Greens/EFA group in the Parliament, issued a statement which said, "We are awaiting confirmation of reports in the media regarding funding of Libertas' campaign for a no vote to the Lisbon treaty in Ireland. If proved true, this would clearly show that there are forces in the United States willing to pay people to destabilise a strong and autonomous Europe. If this can happen for the treaty vote, it raises grave concerns for interference in next year's European elections." The move is backed by European Parliament President Hans-Gert Poettering.

Cohn-Bendit is quoted in the Irish Independent as saying "There is now a direct link between the Irish referendum, the US military and the Pentagon. I call on the authorities to probe the matter".

In an 18 September article, the Irish Examiner said that Libertas founder Declan Ganley had contracts worth over 200m euros with the US military, which the paper suggested was opposed to the strengthened EU military capability foreseen under Lisbon.Parliament.com Irish Independent Irish Times Irish Independent-Letters OE blog

British Government and Ofcom attack EU plans to further regulate phone charges
The British Government and the UK telecoms regulator Ofcom yesterday attacked as "ill-judged" and "premature" the European Commission's plans to further regulate the price of international telephone connections. The plans include setting a maximum of 11 eurocent or 9 pence to overseas sms prices, demanding mandatory billing by the second, rather than the first minute, after the first 31 seconds, and curbing the price of downloading data via the internet. Critics claim this could mean an end to free handsets and drive up the cost of owning a mobile phone.
AFP Buzzle

Ministers fear Labour MEPs will rebel on working time opt-out
The FT reports that ministers fear that Labour MEPs in Brussels will be encouraged to vote against the UK keeping its opt-out from European Union rules restricting working hours, after Labour delegates supported an emergency motion to scrap the opt-out yesterday.
FT

McCreevy dismisses MEP calls for new financial regulation
EUobserver notes that Internal Market Commissioner Charlie McCreevy has told MEPs that no new regulations are needed for hedge funds and private equity, following the recent financial turmoil.

He said, "I don't believe it is necessary at this stage to tar hedge funds and private equity with the same brush as we use for the regulated sector. The issues relating to the current turmoil are different. Our role should be to monitor closely these and other developments in the market and be ready to respond if and when necessary."

He also insisted that the investment funds should not be blamed for the turmoil, but rather that the focus should be on better monitoring of international banks. "It has turned out that it was the regulated sector that had been allowed to run amok with little understood securitisation vehicles," he said.

EUobserver reports that the Commission next week will table a proposal which would require banks to retain 5 percent of securitised products they originate to deter lax underwriting standards.

MEPs, many of whom are critical of the Commission's lack of response, are later this week set to adopt a report by Danish socialist Poul Nyrup Rasmussen calling for the Commission to strengthen the control over "all relevant financial market participants, including hedge funds and private equity."

Meanwhile, in the FT, IMF Director Dominique Strauss-Kahn argues that the financial crisis has shown that a "systemic solution" including liquidity provision, purchasing of distressed assets and capital injections into financial institutions - is needed for the global economy to function with normality.
FT FT-Strauss-Kahn Reuters Euobserver

Germany to push for exemption for industry in EU Emissions Trading Scheme
The German government will back an almost total exemption for industry from changes to the EU Emissions Trading Scheme that would force companies to pay for the carbon dioxide they emit, reports the FT. German industry feared European Commission proposals for an auction of carbon emission permits would cost billions of euros and restrict its ability to compete internationally. German Chancellor Angela Merkel said she "could not support the destruction of German jobs through an ill-advised climate policy."

The article notes that Berlin will push for the aluminium and steel sectors to be given almost all their permits free. Remaining sectors (other than power generation) would have their purchase of permits capped at 20% of total emissions.
FT Reuters EUobserver

Commission proposals frustrated by Irish No vote
Irish Times Brussels Correspondent Jamie Smyth has an article describing the mood in Brussels following the Irish No vote. He says that Irish people working in Brussels have suffered hostility for trying to "ruin Europe for everyone else". An Irish official who works at the European Commission told him, "Almost every meeting begins with a summation of how the Irish 'No' will affect a particular proposal."
Irish Times Smyth

The EU says it will deploy observers to Georgia by 1 October.
IHT Le Figaro WSJ

Western Europeans wary of Russia but against increased defence spending
According to a survey for the FT, Russia's recent military incursion into Georgia has led many more western Europeans to regard Russia as a greater threat to global stability than states such as Iran, Iraq and North Korea. However, the majority of people in western Europe remain opposed to their governments spending more on defence and diverting funds away from public health and social programmes. The survey also revealed that in Germany, Italy and Spain, more people said they would oppose the notion of their national troops defending eastern Europe from Russian attack than would support the idea, conflicting with their countries' Nato commitments.
FT

Number of foreign cricket players in the UK set to decrease as EU labour rules are re-interpreted
Proposals by the England and Wales Cricket Board to change work permits for foreign players are set to decrease the number of so-called "Kolpak-Cotonou" players by an estimated 60 percent. A sports lobby group has discovered that many of the cricketers thought to be eligible under the Kolpak ruling, especially those from Africa and the Caribbean, were actually using the EU's Cotonou Treaty, signed in 2000, to play in the UK. While the Cotonou Treaty allows for trade between those involved and the European Union, it does not allow the same freedom of movement for labour, something many of cricket's recent imports have relied upon.
Telegraph Daily Times

Lau: the SPD's new leadership will cause trouble for Merkel at the polls
In the Wall Street Journal Miriam Lau looks at the challenges facing the German SPD and its new leadership duo of Frank-Walter Steinmeier, who will be the SPD's Chancellor candidate in next year's general election, and Franz Müntefering, who will take over as party Chairman. Lau describes the pair as a "formidable campaign duo" with Steinmeier the "competent bureaucrat" and Müntefering capable of "fiery speeches" and "flaming oratory".
WSJ-Lau