Open Europe press summary: 13 November 2008

Europe

Czech President accuses Irish government of 'hypocrisy' over Lisbon Treaty;
Bruton: Ireland should only hold referendums the government thinks it can win
The FT reports that the Irish government became embroiled in a row with Czech President Vaclav Klaus last night after he attacked the Lisbon Treaty. Irish Foreign Minister Micheál Martin accused Klaus of "inappropriate intervention" by meeting Irish anti-Lisbon group Libertas on his state visit. Klaus defended his actions stating, "I didn't visit someone who is against the state. I visited someone who is just opposing the government". The Irish Times reports that Klaus branded Martin a "hypocrite" adding that Martin's reaction had confirmed his concerns about the erosion of democracy in Europe.

According to the BBC, the Irish government was angered by Klaus' endorsement of Libertas founder Declan Ganley's rejection of the Lisbon Treaty at a joint press conference. The FT notes that Klaus' acrimonious visit to Ireland will exacerbate fears among EU officials over the Czech Presidency of the EU, commencing January 1 2009.

Writing for European Voice, former Irish Prime Minister John Bruton argues that Ireland should amend its laws on the criteria for referendums on EU treaties in order to ensure popular votes only take place when the government thinks it can win. In a new framework, "Future negotiators would be able to assess the benefits and the risks of inserting particular provisions in EU treaties and to decide whether, if those changes required a referendum in Ireland, they would be sufficiently attractive and easy to explain to have a good chance of getting a 'Yes'."

Bruton goes on to argue that "If Ireland continues to operate as a roadblock to the reform of the EU, its influence will decline - that much is plain."

EUobserver reports that Lib-Dem MEP Andrew Duff said of referendums, "It's insulting the intelligence of the people to ask them if they agree with this extraordinarily obscure text they are not going to read or understand."

The Irish Times also notes that Mouvement pour la France leader and French MEP Philippe de Villiers has said that he is prepared to stand as a Libertas candidate in the forthcoming European elections.

According to the Irish Times, Spanish Europe Minister Diego López Garrido said that if Ireland rejected Lisbon in a second referendum, it would signal the end for the Treaty. "We need the Irish vote. Without the Irish vote, there is no Lisbon Treaty. It's a question of 27 countries, not 26. We will have to think of new possibilities to co-operate within Europe. That will be a problem for Europe, not only for Ireland."
Irish Times FT BBC Irish Times Irish Times 2 Irish Times 3 Irish Times 4 Irish Times Editorial European Voice Reuters IHT Irish Times EUobserver

EU Commissioner: CAP forces consumers to pay "two to three times more for food"
EU Budget Commissioner, Dalia Grybauskaite, has called for reform of the CAP at the start of the EU budget review, arguing that it fosters protectionism and forces consumers to pay "two to three times more for food than we would pay without this policy", according to the Irish Times. She also denied that the CAP supported small farmers, when three-quarters of the beneficiaries received just 14% of the budget with the rest going to "very large farms or industries."

In an interview with European Report, the Commissioner said that issues such as cohesion and agriculture were of the past and "future-looking policies" such as climate change and new technologies guaranteeing energy security would be financed as a matter of priority. She also denied that uncertainty over the financial crisis or the Lisbon Treaty would affect the timetable of the budget, and that strategic proposals would be presented in 2009.
Irish Times

EU directive risks creating blackouts in UK within a decade
Nine oil and coal-fired power plants are to close by 2015 as a result of the EU Large Combustion Plant Directive, raising the possibility of blackouts, according to a group of energy experts.

Dr Jon Gibbins, of Imperial College, warned that "You can't guarantee that the lights will stay on... You are just taking a tremendous risk. You don't want to take a risk with the electricity supply. People die when you lose electricity supplies." Dr Gibbins was one of 31 experts quizzed by BBC News in a survey which delivers an alarming picture of blackouts unless urgent action is taken.

Thirteen of the group said there is an unacceptable risk of blackouts in the next ten years, seven warned of problems within just five years.
Daily Mail Sun BBC

Comment: At a conference yesterday organised in Brussels by the Major Energy Users Council, many participants shared Dr Gibbins' concerns over the Large Combustion Plant Directive.

One important point that arose was that, although the Directive works towards a 2015 deadline, the British Government will have to make a decision very soon indeed if it wants to try and negotiate an opt-out or special dispensation from the Directive at EU level. This is because, as a result of the LCPD, power generation companies are unlikely to invest to maintain the plants in the run-up to 2015, and may even begin to 'cannibalise' parts of the equipment. This means that the damage to UK coal plants may already have been done within a few years, meaning that they will not be able to stay open in any scenario - even if the Government attempted to withdraw from the LCPD in three or four years time.

Continued EU budget controversy as Open Europe's investigation exposes fraud and waste
There is continued coverage of the Court of Auditors' report of EU accounts and Open Europe's briefing on EU fraud and waste. A feature on the BBC website entitled 'EU Budget Woes' discusses the various elements of EU funds, and quotes Open Europe's Mats Persson as saying that the Common Agricultural Policy and cohesion funds are "highly prone to fraud and mismanagement" and arguing that "There has hardly been any improvement in terms of the actual amount of taxpayers' money that is being wasted on fraud".

The Irish edition of the Mail quotes Open Europe as saying that the EU budget is "misspent, badly targeted and wide open to fraud", and Sun columnist Fergus Shanahan had examples of EU waste from Open Europe's briefing, saying in his article that Open Europe's investigation "shows where your cash is being squandered". Czech weekly news magazine Tyden also has a story on Open Europe's briefing.
BBC Tyden Open Europe briefing

Cameron expels expenses abuse MEP - criminal investigation launched
David Cameron is to expel one of his MEPs after an official inquiry found him guilty of expenses abuses and ordered him to repay more than £500,000. Den Dover, a former Conservative chief whip in the European Parliament, faces a criminal investigation over payments to a family company, according to the Times. Dover paid £758,146 over seven years in allowances to the company run by his wife and daughter. The company is understood to have bought two BMWs and paid for repairs on two houses used by the Dovers, as well as making a donation to the Conservative Party last year of £1,200.

Dover's expulsion follows controversy this summer over expenses arrangements for MEPs. Giles Chichester, the former leader of the Conservative MEPs, was forced to quit in June for breaking the rules by paying £445,000 in expenses over the past 12 years to a map company of which he was a paid director. Chichester claimed he did not understand the rules governing the £160,000 a year MEPs can draw on for running their offices, confessing to a "whoops-a-daisy" moment. However, Chichester will retain the Conservative whip, after being cleared in an internal investigation by the European Parliament's authorities.

A European Parliament report in February suggested there is lax control of the allowances scheme, citing examples where MEP assistants' wages were used to pay for daycare services or wood.

The Guido Fawkes blog mentions Open Europe's Transparency Initiative, a survey launched in the Spring requesting all UK MEPs to answer questions relating to their expense arrangements. So far, only 25 of 78 MEPs have replied in full, plus 12 partial/ incomplete responses. Their responses can be read in full, here.
Times Guardian EUobserver Guido Fawkes blog Sun Telegraph FT Daily Mail BBC Conservative Home Mirror Independent EUreferendum

According to PA, Commons Deputy Leader Chris Bryant has said he wanted to see the European Scrutiny Committee, which assesses and debates EU documents, meet in a more open way.
No link

Employers concerned over EU employment fines
The Irish Independent reports that Ireland's main employers' body has raised concerns about an EU proposal to penalise employers who hire illegal immigrants. A recent proposal by the European Parliament known as the Sanctions Directive would see employers facing fines instead of the immigrants themselves. The paper quotes Irish body IBEC, who say that they already face "very robust" legislation and that some of the new EU proposals are "disproportionate".
Irish Independent

EU pesticide restrictions could cut cereal yields by 30%
PA reports that Environment Minister Lord Hunt has told peers that EU proposals for tighter restrictions on the use of pesticides could cut cereal yields by to 30%. He said that he suspected the proposals were a "genuflection to greenness without the scientific evidence."
No link

Conservative MEP leadership candidates set out stalls ahead of election
Next week, James Elles and Timothy Kirkhope will be competing for the leadership of the Conservatives in the European Parliament. Both have set our their stall on Conservative Home.

James Elles writes, "Like other candidates, I have signed a declaration fully supporting the agreement by David Cameron and Mirek Topolanek that, following the elections in 2009, we should '...establish a new parliamentary group, which other like-minded parties will be invited to join'."

Timothy Kirkhope notes, "We must do well in next year's Election and I would intend to make sure that we do that by using the talents of all members on our Regional lists, including sitting and returning MEPs in the campaign and then afterwards as we involve ourselves in the negotiations and discussions towards meeting David Cameron's commitment on our future alignments."
Conservative Home Elles Conservative Home Kirkhope

Credit rating agencies' "charmed existence" coming to an end says McCreevy
The Commission yesterday proposed a regulatory clampdown on credit rating agencies in a bid to restore investor confidence, reports the Guardian.

European Voice reports that, under the proposals, national supervisors would continue to oversee the activities of rating agencies, but an EU regulatory body, the Committee of European Securities Regulators, would also play a central role.

McCreevy said that credit-rating agencies had led a "charmed existence", according to the Irish Independent. However, an analyst with the think-tank Bruegel has argued that the Commission is exaggerating the role of such agencies in the financial crisis, and is simply responding to "obvious political demand", reports EUobserver. The analyst said that the "political approach" taken by the EU is contradictory to its "doctrine of better regulation".
Times Guardian European Voice EUobserver Irish Independent Irish Times WSJ

Commission to propose energy security plan today
The Times reports that plans for a supergrid of power supplies will be announced today. EU states will also be asked to pay for at least two gas pipelines to bring in supplies from Central Asia and Africa. Analysts estimate the two projects will cost billions of pounds. The UK Government supports the plan.
Times European Voice

Ireland's economy feels constraints of euro membership
An article in the Washington Post argues that the policies and institutions of the EU represent some of the biggest obstacles for Ireland's recovery from recession, having been handicapped by surrendering monetary policy to the ECB. It goes on argue, "Now that Ireland needs aggressively low interest rates to stimulate the ailing economy, it is not getting them". It states that current interest rate policies make sense for eurozone countries such as France but not Ireland, which fell into a recession in the summer. While no-one is talking about abandoning the euro, some analysts have said that the Irish are growing increasingly resistant to a centralised Europe.
Washington Post

Russian Prime Minister Vladimir Putin has questioned the construction of the Nord Stream pipeline for the first time since the signing of the agreement with Germany to establish the gas delivery network, according to EUobserver.
WSJ EUobserver