Open Europe press summary: 15 October 2008

Europe

Italian government: EU green targets will cost us 181bn euros up to 2020;
Package in "crisis" ahead of EU summit
The Guardian reports that the EU's proposed package of climate change measures - which would impose targets of 20% renewable energy use, and 10% biofuels use as part of efforts to reduce overall emissions by 20% by 2020 - are in "crisis". It notes that "A European summit tonight in Brussels will fail to agree on the means to the end of meeting the EU's ambitious target."

According to Roman daily Il Messaggero, Italian Industry Minister Claudio Scajola has said the EU's controversial climate action and renewable energy package will cost the country 181 billion euros between 2011 and 2020. He underlined that "there is still a long way to go to reach a normative climate-energy package that is balanced and sustainable for both business and citizens." The Irish Times notes that Italian Foreign Minister Franco Frattini asked the Commission yesterday to recost the entire package, claiming that it would cost 1.14 per cent of GDP.


The IHT reports that Poland's Environment Minister yesterday underlined his country's staunch opposition to the plan. "The package in its current shape that the European Commission proposes at this time is unacceptable for Poland," Maciej Nowicki told reporters.

Euractiv cites Open Europe warning of "huge economic costs" for Europe (73bn euro pa) and the UK (£9bn pa) and rises in fuel poverty. Open Europe is quoted saying that "The politicians who sign up to this deal will be out of office in ten years time, but pensioners and the poor will be left with the biggest bills."

EUobserver reports that the French Presidency - backed by the European Commission - has been trying to include a strong political confirmation of the green targets, and a list of issues on which member states have already reached agreement in the summit conclusions. The article notes however that "after endless debates among ambassadors over the past days without agreement on a common text, Paris decided to present the document only as a legally non-binding paper, called 'presidency guidelines.'"

"We discussed it for three hours without moving anywhere although the document only had two pages," one diplomat told EUobserver, adding "So you can imagine how divided we are on this."

In Britain, Transport Minister Andrew Adonis claimed the Government would be taking a more cautious approach to binding targets for biofuels, which are a key part of the EU package, amidst concerns about the indirect environmental and social impacts of producing them. However, this amounts only to launching a consultation on slowing down the rate of biofuel incorporation into the transport fuel mix. Crucially, London will still support the EU target of 10% biofuel use in transport fuels by 2020.

A leader in the Guardian argues that the case for focusing climate change mitigation efforts on stopping deforestation is "obvious".
FT Euractiv Sapo Reuters IHT BBC Il Messaggero Euractiv EUobserver Irish Times Guardian Guardian-leader Irish Times IHT European Voice BBC Today

Brown uses new role as 'financial statesman' to push for global system of regulation
The FT reports that after the US and EU's plans to adopt a British approach to the financial crisis, Gordon Brown will attempt to rally European leaders behind the "second stage" of a plan to stabilise the world economy at the EU Autumn Summit today. Yesterday, Brown faced questions from foreign journalists, one of whom asked how it felt to be described as "the saviour of the world".

The WSJ describes the new proposals as a "global system of financial supervision" where international bodies including the International Monetary Fund will monitor global markets and act as early-warning systems. The FT notes that Brown, regarded as an outsider in European circles, is expected to receive a warm reception in Brussels, having advised the eurozone on the British bail-out plan in Paris last Sunday.

According to the BBC, EU leaders are expected to extend a 2 trillion euro rescue scheme for Europe's ailing banks, decided by the 15 eurozone countries on Sunday, to all 27 EU members. The FTD reports that a new debate on budget deficit policy may emerge in the EU but Commission President José Manuel Barosso has said the stability pact offers flexibility for "exceptional economic circumstances".

Meanwhile, there is continuing debate over what the financial crisis means for the future of the EU. John Thornhill in the FT writes the "ad-hoc style of European leadership, springing from national capitals more than Brussels, may have been surprisingly effective in the short run...but some observers question its longer-term sustainability." Thornhill however highlights that the EU leaders' recent cooperation shows that they can "take decisive collective action to address the financial crisis even in absence of the Lisbon reform treaty that was rejected by Irish voters."

Open Europe Director Lorraine Mullally is quoted in the Express as saying, "With financial markets in meltdown, EU leaders should not be wasting any time at all trying to breathe life back into the Lisbon Treaty. The recent coordination between EU leaders on the financial crisis shows they don't need a complicated new EU treaty to work together. In fact, it is the last thing the EU needs right now".

In Le Monde Jean-Jacques Mével writes, "The crisis is the best publicity for the advantages of a strong European presidency and a more united Union".
WSJ Irish Times FT FT 2 FT analysis FT Thornhill IHT Sun Euractiv EUobserver Telegraph-leader European Voice BBC DW FTD France24

ECJ Advocate-General says harmonised data retention is a single market issue
The Advocate General of the ECJ has said that an EU law on harmonising telephone and internet data retention rules is an internal market matter, not a justice and home affairs issue. The Directive - which was approved by a qualified majority of EU states in February 2006, seen as a response to the 7 July bombings in London - sets a time period of six months to two years during which telecom operators are obliged to keep phone and internet data. Ireland has challenged the decision, arguing that it was made on the wrong legal basis, and should have been decided by unanimity, under the justice and home affairs provisions in the EC Treaty. The Advocate General's opinion is not binding, but it does give an indication as to how the ECJ will rule.
EUobserver Irish Times Independent OE blog

EU to agree common immigration and asylum rules
EUobserver reports that at the summit in Brussels today, EU leaders are expected to approve the European Pact on Immigration and Asylum, which would involve political commitments in five areas including border controls, asylum policies and illegal immigration. On illegal immigration, the EU is set to put into action the principle that, "illegal immigrants on member states' territory must leave that territory". EU leaders would seek re-admission deals with countries of origin, to boost voluntary return and "the possibility of forced expulsion."

The European Council on Refugees and Exiles (ECRE) has expressed concern over the "pact's overall tone", particularly with regards to refugees' access to asylum procedures. ECRE's Secretary-General, Bjarte Vandvik, is quoted as saying, "Much more general scrutiny is required of Frontex, the EU borders agency, for ensuring its operations are respectful of human rights".
EUobserver

The UK Government is facing a record £230 million fine from the EU, over "financial irregularities" involving regeneration money from the EU's Structural Funds, parliamentary questions have revealed.
Hansard CLG accounts

Fresh evidence links Mandelson to oligarch
The Evening Standard reported that
document.getElementById('sky').innerHTML = document.getElementById('INVsky').innerHTML;document.getElementById('INVsky').innerHTML = ''; Peter Mandelson faced new questions yesterday over his relationship with Russian billionaire Oleg Deripaska. The newly-appointed Business Secretary is at the centre of a row over a potential conflict of interest, after two European companies sought his help following allegations that Deripaska's company cheated them over a $1 billion deal in Moscow. Mandelson's spokesman is quoted in the Standard saying "There is no conflict of interest".
Evening Standard Mail Times-Miles

WSJ notes that Danish Prime Minister Anders Fogh Rasmussen has said the financial crisis has highlighted the disadvantages of staying out of the euro, reaffirming his commitment to holding a new referendum on joining the single currency.
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Dublin will breach EU rules with a budget deficit of 6.5%, and is projecting the largest budget deficit in 20 years, as the economy slows amid a housing slump and international credit crunch.
FT

German Foreign Minister Frank-Walter Steinmeier appears to have expressed his support for Turkish EU membership.
EUobserver Focus

World

US follows in partial bank 'nationalisation'
The IHT looks at how the nine largest banks in the US agreed to sell shares to the US government, setting in motion the largest government intervention in the American banking system since the Depression and retreating from the rescue plan Treasury Secretary Henry Paulson fought to get through Congress only two weeks ago.
Irish Independent IHT