Open Europe press summary: 20 November 2008

Europe

Berlin announces plans for 130bn euro bailout fund for EU economy
The Times reports that German Economy Minister Michael Glos has 'let the cat out of the bag' on an EU financial stimulus package worth 130 billion euros, currently being prepared by the European Commission to help boost industry and the economy. Glos said that all member states would be asked to contribute 1% of their GDP, which would equate to 25bn euros for Germany. However, according to the WSJ, Commission officials have been playing down the Minister's comments, saying that the size of the package was still being finalised.

The Irish Times reports that, "Resistance to the economic stimulus package is already forming in European capitals", focusing particularly on Germany, suggesting that Chancellor Angela Merkel has little time for Europe-wide programmes. Economics Professor David Spector argues in La Tribune that experience shows that an economic budgetary boost risks a lot of waste when it comes to the EU because EU member states are more preoccupied with taking their slice of the cake rather than with economic efficiency. He adds that if it is true that an increase of the EU budget is desirable, the most efficient economic boost policies should be conducted at the national level, with a European coordination.

The IHT reports that French President Nicolas Sarkozy's proposal for another economic conference in Paris in a few weeks has "raised hackles in diplomatic circles", because he failed to convey his plans to any other world leaders while in Washington over the weekend. A senior European official is quoted as saying he found the French proposal "amazing", whilst an American official said he thought that was a charitable description of it.
Times WSJ EUobserver Irish Times La Tribune FAZ Echos WSJ Forbes IHT FT Irish Times 2

EU demands six weeks of compulsory leave for women after childbirth
Draft EU rules would prevent women from returning to work for six weeks after childbirth, the Evening Standard reports. The paper reports that "The Government is battling to stop the extended compulsory leave" and quotes a Department of Business spokesman who says that "we already have very generous and progressive measures in this area, so we are not convinced of the need for further legislation at European level".
Evening Standard Mirror

Ministers agree to watered-down proposal for CAP reform;
MEPs vote in favour of continued support for tobacco producers
EU ministers today agreed on a watered-down version of a Commission proposal setting out changes to the EU's Common Agricultural Policy (CAP). The deal, reached by qualified majority voting, will see aid for rural development rise to 10% of the farm subsidies - not the 13% that the European Commission wanted. Milk quotas, which are particularly controversial, will rise by 1% a year from 2009, before they expire in 2015. France and Germany remain opposed to phasing out the quotas altogether. The share of rural development aid co-financed by the member states will also drop to 25%, compared to the previous rate of 50%. Environment Secretary Hilary Benn is quoted saying the deal was a "mixed result" and "will lead to some new distortions in the short term", with particular concern for the British diary sector.

Meanwhile, the European Parliament yesterday voted on the so-called health check of the CAP. MEPs called for the link between subsidies and production - so-called direct aid - to be kept for livestock farmers and voted in favour of retaining market intervention in the grain, meat and dairy sectors. In addition, the EP voted in favour of giving tobacco producers continued subsidies in the future and opposed channeling more money towards rural development.

In agriculture policy, the Parliament's opinions currently have only consultative status, but if the Lisbon Treaty enters into force, it will have joint decision-making power with the Council of Agriculture Ministers.
AFP AFP2 EP press release BBC Irish Times Le Monde Suddeutsche Zeitung

French EU Presidency proposes pan-European sport regulator - "devastating effect" on the Premier League feared
The Telegraph reports that the British Government will move next week to block French plans to pass control of English professional sport, including Premier League football and Premiership rugby, to a pan-European sports "super regulator". European sports ministers will meet in Biarritz next week to discuss plans, proposed by the French Presidency of the European Union, that would see domestic governing bodies lose control over financial regulation, transfer policy and the training of young players.

The article notes that "If accepted the plans would have a devastating effect on the Premier League, which has become the richest league in the world and an international success largely because of the light-touch regulation of its clubs."
Telegraph

Poland rejects French offer on EU climate package
EUobserver reports that Poland has rejected concessions offered by the French EU Presidency on the EU Climate Package. Paris had proposed offering a limited amount of free carbon permits to eastern European coal power generators. But a Polish diplomat told the website, "It does not solve the problem of electricity prices in a satisfactory way."

Warsaw has tabled its own alternative to full auctioning - a so-called "benchmarking-auctioning approach" that suggests separate benchmarks for free allocation being set for each type of electricity production - hard coal, brown coal, natural gas and fuel oil.

Rzeczpospolita reports that France has floated the idea of an extraordinary summit on the package to be held on 27 December if the 11 December talks fail. An ambassador of one of the EU member states told Euractiv that the bloc's countries may agree before the end of the year on the basic principles and structure of an agreement on the package, but it is unlikely that a deal will be finalised.
Euractiv Le Monde New Statesman Lynas Guardian Times EUobserver Times Independent

Second referendum on Lisbon would be a "serious error", say newspaper editors
The Irish Times reports that the Dáil committee on Europe in the Irish Parliament was told by Irish newspaper editors that "It would be a serious error to bring the Lisbon Treaty to the people for a second time without addressing legitimate Irish concerns". The paper quotes Gerard Colleran, editor of the Irish Daily Star, who said that although he supported Lisbon, his readers had not been properly informed, and had therefore made the right decision. "The Government needed to stop treating the people of Ireland as fools and must not try to pull the wool over their eyes again", he said.

The paper also quotes the Chairman of the National Forum on Europe, Maurice Hayes, who told an Irish committee that the no votes were "stratified and regionalised" and also argued that there was "plenty of information" available on the Treaty before the referendum.

Meanwhile, Finland's Foreign Minister Alexander Stubb told the Committee that he opposed Ireland being rejected from "core Europe". The Irish Times quotes him as saying however, that renegotiation of the Lisbon Treaty would be "very, very difficult" and "unrealistic".
Irish Times Irish Times 2 Irish Times 3

Open Europe is quoted in an article on Accountancy Age with the headline "Unqualified' success for EC accounts is not all it seems". The article also gives examples from Open Europe's briefing "100 examples of EU fraud and waste".
Accountancy Age

Panicked Commission moves staff into economic and financial departments
On his Coulisses de Bruxelles blog Libération journalist Jean Quatremer reports that the European Commission's administration department has issued a note calling for officials from across the different Commission departments to move temporarily to work in those departments which work on financial issues - Competition (DG COMP) Internal Market and Services (DG MARKT), and Economic and Financial Affairs (DG ECFIN). It says that in view of the financial crisis the Commission "urgently needs to temporarily bolster its teams" in these 3 DGs. Interested people have only one week to apply, which, Quatremer notes, "is unprecedented in the history of the Commission and shows the state of panic the institution is in." He notes that "The Commission is so wrong to only recruit internally: there are plenty of competent people unemployed in Europe's and America's financial markets who know how things work.
Coulisses de Bruxelles

Debate over Conservatives' EPP withdrawal
There is an ongoing debate on Conservative Home over the proposed withdrawal of the party from the EPP grouping in the European Parliament in June 2009. Dan Hannan argues on his Telegraph blog that "Leaving the EPP would allow us to create something that the European Parliament has not had in fifty years: an official Opposition."
Conservative Home Telegraph Hannan Conservative Home Tannock

Die Zeit: Congo mission splits EU
An analysis in Die Zeit points to divisions among EU member states towards a possible EU military mission to the Congo. While readiness is growing in London and Paris, it reports, Berlin is still hesitant. The article remarks that strict conditions would have to be fulfilled to send a military mission, also stating that France is not suitable to lead the mission given its controversial past role in the region.
Zeit

EU Fisheries Council agrees new plan aimed to 'catch less but land more' cod
The BBC reports that the European Fisheries Council has agreed a plan aimed at increasing dwindling cod stocks. The new plans envisage using better nets that allow smaller cod to escape, as well as closing certain areas to fishing when cod are spawning. The incentive for fishermen will be larger quotas in areas like the North Sea, where cod stocks are beginning to recover.

On his BBC blog Mark Mardell writes "The industry and the politicians are promoting the new ideas under the rubric 'catch less, land more'. But we won't know if this will be true in practice for another couple of weeks. The landing - and so selling - of cod has to wait for another meeting, another negotiation...If the British politicians don't get the increase they want it could be a case of 'catch less, sell less, earn less'".
BBC - Mardell BBC

The Royal Navy will lead the EU's first ever naval combat force in the Gulf next month, with British ships forming the headquarters of the European operation, the FT reports.
No link

Polish President Lech Kaczynski said yesterday he was "doubtful" that Poland could achieve the eurozone entry goal of 2012 set by Prime Minister Donald Tusk and called for a referendum.
Irish Times

The UK's Europe Minister Caroline Flint claims the EU's response to the global financial crisis shows its worth on the world stage.
Parliament

The Bruges Group has calculated that the EU costs the UK £106,117 per minute.
Bruges Group

Ukraine President Viktor Yushchenko yesterday urged NATO not to succumb to Russian pressure and make an offer of membership to his country.
Times

The European Commission will review its proposal for "nude scanners" on airports, reports Le Monde.
Le Monde

UK

An increase in net immigration to 237,000, up 46,000 from last year, has taken Britain's population to a little under 61 million, at least 1.8 million more than the 1997 figure. The Government has predicted that the weakening pound will reduce immigration.
Times FT

World

Medvedev's visit to Latin America will be monitored by Washington
The FT reports that Russian President Dmitry Medvedev will begin a tour of Latin America next week that has raised eyebrows in Washington, mainly because of his visit to Venezuela, which has been vocal against US influence in the region under President Hugo Chávez.
FT