Open Europe press summary: 7 October 2008

Europe

European leaders continue to struggle to find unified response to crisis
As stock markets around the world tumbled on Monday, Europe's leaders came under rising pressure to deliver a more coordinated response to the crisis threatening the European Union's financial system. EU finance ministers will meet today for talks on the financial crisis. PA reports that the ministers are considering raising the guarantee for savers to 100,000 euros.

The WSJ notes, "As European countries ponder more national actions, one thing is becoming clear: the EU's supranational institutions are barely relevant, despite decades of effort aimed at creating a politically united Europe. National governments so far have proved unwilling to take steps that would commit their taxpayers' money to supporting banks in other countries. Meanwhile, the governments are all but ignoring the bloc's rules meant to ensure fair competition and fiscal discipline." Gideon Rachman notes on his FT blog that "In a crisis, European unity quickly shatters. It happened over Iraq; it happened over the Balkans - and now it's happening over the banks."

According to Tagesspiegel German Finance Minister Peer Steinbruck has reportedly said that he agreed with Chancellor Angela Merkel that the German government should remain "in charge" as it "does not want to be dependent on a bureaucracy".

Le Monde notes that according to Italian Prime Minister Silvio Berlusconi, Berlin may now be more amenable to the idea of a pan-EU bailout fund - which it rejected previously.

Derek Scott, Open Europe's Vice-Chairman and former Economics Adviser to Tony Blair, appeared on the BBC Today programme arguing that coordination would work best, but that in practice EU countries will continue to look out for their own economies first. He argued that recapitalisation of banks is essential and needs to be done at the national level. He warned that the markets might start questioning whether the euro could survive. Former Europe Minister Denis MacShane, appearing on the programme earlier, said that without the stability of the euro, there would have been huge runs on individual currencies. On BBC's Newsnight, the German Ambassador to the UK kept insisting that the financial crisis is "an Anglo-Saxon problem".

One EU official told the FT that Ireland should be "punished" for its deposit guarantee scheme. The Irish Independent reports that Dublin's guarantee to six Irish banks may be restricted to their Ireland-based operations only, in a bid to get the 400bn euro guarantee past European competition laws. The paper has learned that at its meeting today, the Cabinet may rule out covering any branches and subsidiaries of Irish banks in Britain, the EU or any other countries.

Welt reports that the European Commission has announced in a paper it wants tighter control on the wages of CEOs, in the wake of the financial crisis. Another proposal includes making CEOs privately responsible for mistakes.

A leader in the FT argues that the EU stability and growth pact and competition rules are an obstacle to recapitalisation - and therefore need to be relaxed.

The Economist argues that "Blanket coverage of all deposits may encourage further recklessness on the part of banks and those whose money they hold. Moreover it is not entirely clear how governments would pay these bills, if they ever came due."
The Independent quotes Sylvester Eijffinger, of Tilburg University, a monetary adviser to the European Parliament, as saying: "This is a wake-up call. First we had economic integration, then we had monetary integration. But we never developed the parallel political and regulatory integration that would allow us to face a crisis like the one we are facing today."
Independent Times leader Irish Times Independent Editorial BBC NZZ Tagesspiegel SWR Welt WSJ BBC WSJ leader Economist FT FT 2 FT 3 FT leader FT 4 Irish Times leader Bloomberg Volkskrant Trouw PR Inside BBC Today Telegraph Yahoo News Economist blog Mail Mail-Brummer Mail-Osborne Mail-Comment Sun-Comment IHT EUobserver EUobserver-state aid AFP AFP2 Deutsche Welle Irish Independent Guardian Irish Independent Telegraph Irish Times Le Monde Le Monde BBC Today

Irish government says second referendum cannot take place before EP elections;
Andrew Duff MEP calls for end to 'fairer referendum rules'
The Irish Times reports that the Irish government will tell EU leaders at the summit next week that it will not be able to ratify the Lisbon Treaty before the European elections next June and that it will offer no plan on the way forward until the EU summit in December. Speaking to the European Parliament's Committee on Constitutional Affairs yesterday, Minister for Foreign Affairs Michéal Martin said, "It would be counterproductive to try and press ahead too hastily. A step-by-step approach is needed."

According to the Irish Independent, Martin told the MEPs, "I do not want to underestimate the difficulties we face. There is a stark reality that cannot be ignored -- we had a referendum in Ireland and our people voted against. Less than four months have elapsed since that decision and there has not yet been sufficient time for a national debate on the consequences of that decision."

It is noted that several MEPs urged Martin to push ahead with a swift re-run vote, with Irish MEP Colm Burke, who represents Ireland South, saying it was clear a new referendum was required, warning that the government could not tolerate leaving Ireland's EU commitment "in limbo".

The Irish Times quotes German MEP Elmar Brok, saying: "I think these decisions must be taken before the European Parliament elections because it will look like we are incapable of action," adding that he trusted the Irish people to help the parliament shore up democracy in the EU.

Meanwhile, British MEP Andrew Duff asked Martin if he would commit the government to scrap the 'fair referendum' rules in Ireland, which set out requirements for equal broadcasting time for both sides in a campaign. "Several bizarre judgments of the Supreme Court have put charlatans upon the same basis of parliamentarians," said Duff, who also asked Martin to clarify whether a second referendum was planned.

Northern Irish MEP Jim Allister reportedly accused Martin of having no "sense of shame" for not respecting the No vote in Ireland, to which Martin responded - to applause from the MEPs: "You should know better coming from your part of the world that saying No forever doesn't work. Dialogue was the key to resolving common challenges and problems." Martin also repeated the Irish government's claim that people voted No due to "lack of information". He said, "Too many people are left unaware of the EU's achievements while those who oppose often succeed in peddling half truths".
Irish Independent European Voice Irish Times

MEPs to consider a range of environmental laws on 'Super Tuesday'
Reuters reports that the European Parliament will today vote on a number of environmental proposals in what has been dubbed "Super Tuesday" for the sheer volume of environment laws to be voted. During the morning session, MEPs will vote on how the EU target of reducing carbon emissions by 20 percent should be shared among the different member states - a persistent source of contention in the EU. They will also vote on how to spend 30 billion euros or more that EU member states will earn annually from 2013 and onwards from selling carbon emissions permits.

The afternoon session is devoted to subsidies for "carbon capture and storage" (CCS), which involves trapping CO2 from power stations and burying it underground. MEPs will consider the idea of selling emissions permits originally reserved for new-built factories and power plants to find the 10 billion euros needed to start CCS pilot projects. BBC Europe Editor Mark Mardell reported on the issue on Newsnight last night.
Reuters EU Referendum Euractiv

Nick Clegg brings back Lisbon Treaty rebels
Lib Dem Leader Nick Clegg has carried out a reshuffle of his frontbench team, with jobs going to the three MPs who were forced to quit the frontbenches back in March after deciding to uphold the party's election manifesto and vote in favour of a referendum on the EU Lisbon Treaty. Clegg had ordered the party to abstain in the vote, to prevent a referendum from being won.
OE blog

Mauritania fisheries destroyed by EU agreements: locals ask "where is the money?"
The FT reports that the EU, facing criticism from campaigners seeking fairer trade deals, has signed up to a reformed four-year fishing agreement with Mauritania. The EU will pay 300m euros (£233m) over four years for a reduced catch set at 250,000 tonnes a year. The paper reports that Mauritania's coastal population feel cheated out of the profits to be had from the rich catches of fish, shrimp and octopus in West Africa's fishing grounds. Yahya Ould Ndiaye, one of the founders of a local charity, is quoted saying "How many years have Europeans been fishing in Mauritania? Where is the money?"

Campaigners say the latest EU fishing deal is an improvement, but does not provide enough safeguards. "The problem with the new agreement is that it still allows EU vessels to take too much of the fish and octopus that local fishermen need," said Béatrice Gorez, of the Coalition for Fair Fisheries Arrangements in Brussels.
FT

FIFA President seeks EU help to 'protect' football
Nu Sport reports that FIFA President Sepp Blatter has been to the European Parliament to seek support for his 6 5 rule, currently forbidden by EU law, which would bring more home-grown talent into football. EUobserver notes that Blatter also called for the EU to deter foreign ownership of football clubs, particularly in England, but also across the 27-country bloc.
Nu Sport EU Observer

Monbiot: EU's green subsidy to car makers a "disguised corporate bail-out"
Writing in the Guardian George Monbiot criticises EU subsidies to car markers which suggest that the industry received the aid while "all eyes were fixed on the banking bail-out". The subsidies are ostensibly to help the auto industry comply with emissions targets but George Monbiot argues that the industry has simply moved to capitalise on the "smell of public money in the air," and in the past has "driven every useful green initiative into the wall."
Guardian-Monbiot
France opposes EU internet bill
French President Nicolas Sarkozy has put pressure on the European Commission to change proposed European legislation that would require legal action in order to cut off internet access. Although the amendment on internet access was passed by the European Parliament on 24 September, Sarkozy is keen to reverse the decision because the proposed law would clash with French national plans to punish internet users who illegally download films and music, in a "three strikes" approach. European Voice reports that according to EU sources, there is little support for French objections amongst other member states, and that the plans are part of upholding EU citizens' "fundamental rights".
European Voice

Arms trial turns spotlight on French elite
Several members of the French business and political elite, including the eldest son of the late French President François Mitterand, went on trial yesterday over allegations concerning the supply of illicit weapons to Angola during its civil war in the 1990s. According to the Irish Independent the main defendants have implied that the "French government knew of and allowed a secret arms channel to Angola".
Irish Independent Guardian Telegraph

The Green Party in Sweden, Miljöpartiet, has voted to drop its manifesto pledge to withdraw from the EU in a softening of its Eurosceptic credentials.
European Voice

Ireland could face fines from the EU of up to half a million euros every day unless it reduces household waste sent to landfills.
Irish Independent

World

Nato's Supreme Commander seeks authority to plan defence of former Soviet bloc
The Telegraph reports that General James Craddock, Nato's Supreme Commander, has demanded the authority to draw up detailed military plans to defend former Soviet bloc members for the first time since the alliance expanded eastward. Russia's offensive in Georgia has led political leaders from the Baltics and Eastern Europe to demand that Nato fulfil the requirements implied by its "Article 5" commitment to defend the territorial integrity of all its members.
Telegraph