Open Europe press summary: 3 November 2008

Europe

MEPs to challenge UK Working Time Directive opt out
The FT reports that the deal allowing Britain to opt-out from European Union curbs on working hours is expected to be rejected by MEPs this week. UK business leaders are concerned that the agreement between European Employment Ministers that allowed the UK an opt out, in return for the UK's support of the equal pay for temporary and agency workers, could be threatened by the European Parliament. If the UK's opt out is rejected by MEPs this week, the issue will then be debated by the Council of Ministers where the UK would be under "severe pressure" to give way, says David Yeandle of the manufacturers body EEF in the FT. The issue will be subject to a qualified majority vote. However, the Business Secretary Peter Mandelson, quoted in the FT, said that the UK will continue to "stand firm" on the issue and argues that the opt out "is essential to Britain's labour market flexibility that has helped to create an extra three million jobs".
FT

EU environmental policy: first casualty of economic downturn?
A feature in Time Magazine looks at whether environmental policy will be "one of the first casualties" of the economic downturn. It notes, "Even in Europe, which has been the world's leader in carbon-cutting, some governments appear to be using the financial situation as an excuse to stand down...To some degree, Europe is simply coming to grips with the potential cost of its green dreams -- up to $100 billion a year by 2020, according to a study by think tank Open Europe." Meanwhile, the Independent looks at how renewable energy projects often are held back by red tape.
Independent Time

New pesticide rules could double food prices
PA reports that a change in the way pesticides are assessed for use on crops is due to be approved by MEPs in Brussels on Wednesday - part of a goal to halve the use of toxic products in farming by 2013. Under the new plans, products for protecting plants would be assessed on the basis of "perceived hazard", rather than on a scale of scientific-based risk, which would mean beer or wine would be banned across Europe as a spray for plants. NFU argues that the ban could lead to a doubling in prices of household staples such as potatoes and broccoli. NFU Deputy President Meurig Raymond is quoted as saying, "With food security now making political headlines, this is the time to be safeguarding our ability to produce affordable, quality food - it is not the time to start banning the very tools which make food production possible across the EU. Moreover, the absurdity of this proposal is exacerbated by the fact that food, produced using the very same sprays to be banned in the EU, will still be imported from outside the EU and eaten by us all."
Daily Express

French Defence Minister: EU on verge of common defence policy
In an interview with the FT, the French Defence Minister, Hervé Morin, has said that EU member states are on the verge of a "big and pragmatic step forward" in plans for a common EU defence capability. Morin said that defence ministers would finalise agreements on measures to improve co-ordination of national programmes and operations in a meeting next week. This would include joint naval exercises with the four states with aircraft carriers: the UK, France, Italy and Spain.
FT

FT: Brown and Sarkozy's agreement on "new Bretton Woods" hides fundamental differences over financial regulation;
Evans-Pritchard: can the UK resist a "blitz" of EU regulation?
The FT reports that Gordon Brown and French President Nicolas Sarkozy have agreed to seek a "new Bretton Woods" structure for the global financial system at a Washington meeting of the G20 leaders next Friday. However, the paper notes that the agreement masks differences over their views on the harmonisation of regulation at the EU level. Sarkozy reportedly favours a more harmonised EU regulatory system, while Brown is wary of signing up to "heavy-handed" regulation that may threaten the competitiveness of the City.

In the Telegraph Ambrose Evans-Pritchard considers "the revenge of the Left across the world", stating that, "at this point I have given up hoping that we will draw the right conclusions from this crisis. The universal verdict is that capitalism has run amok." He goes on to ask "Does the UK still have a blocking minority under EU voting rules to stop a blitz of directives that could shut down half the activities of the City - or the 'Casino' as they say in Brussels? I doubt it."

The Weekend FT reported that the European Commission will propose strict new regulatory requirements for credit rating agencies, which have been criticised for underestimating the risks attached to huge volumes of mortgage-related bonds and collateralised debt obligations that have ended up creating huge losses for the global banking and investment industry.

On his EU Referendum blog Richard North criticises the "malign role" of the EU-based mark-to-market rules in aggravating the financial crisis.

The WSJ reports that Gordon Brown expects support from the Gulf states in his bid to bolster the IMF's funds and foster a "coordinated" policy response to the financial crisis across the globe.

In an opinion piece for Le Monde, the Belgian Prime Minister Yves Leterme stresses the need for a European emergency fund: "We must consider setting up a European emergency fund that could be used to purchase illiquid securities, recapitalise banks and guarantee loans between banks". He also called for a pan-European financial services regulator.
FT Le Monde Telegraph Evans-Pritchard EU Referendum Weekend FT WSJ European Voice

Britain would be "stand-by country" for an EU force
The junior British Foreign Minister, Lord Mark Malloch-Brown, has said that European troops may have to be deployed in Congo if diplomatic efforts fail, according to AFP. While it is being described as a last resort, Malloch-Brown said that, "If everything else fails we cannot stand back and let violence erupt." However, a leader in the Independent says that the Foreign Ministers' visit may raise expectations of troop deployment when Britain is too overstretched to offer any troops. The Mail on Sunday and the Sunday Express reported that Malloch-Brown admitted that Britain would be the "stand-by country" to help form an EU intervention force, as a result of their inclusion in the EU Battlegroup. The MoD confirmed that up to 500 troops from the 4 Rifles Battalion would form any contingency force.

A leader in FAZ also argued that a new EU military mission will likely do little to improve the situation there. An EU mission two years ago (Eufor) failed to solve the problems in the country because it was a "cross-border conflict". The paper calls instead for an African solution to the situation in the country.
Irish Times Guardian EU Business AFP Independent Independent 2 Independent leader FAZ

Sweden and Denmark debate euro membership
Saturday's Independent reported that the Danish government has begun preparing the ground for referendums on joining the euro. "The financial turmoil has made it clear to all Danes that there is both a political and economic cost of staying out of the eurozone and that's why we should join it as soon as possible," the Danish Prime Minister Anders Fogh Rasmussen said this week.

There are also signs that the debate has been revived in Sweden. "We should have joined the euro a long time ago, we would have been far better off," Cecilia Malmstrom, Sweden's Europe Minister said yesterday. A large majority of Swedes voted against the euro in 2003. A new opinion poll shows a slight turn-around in public opinion, with 47 per cent saying they are now ready to surrender the krona. However, 53% say that they're still opposed to the idea, compared to 56% in the 2003 referendum. "This change has happened without any campaigning from our side so I'm sure that we turn it into big majority, which is why we should try to hold a re-run of a referendum as soon as possible," Ms Malmstrom said. Svenska Dagbladet reports that Malmstrom's party, Folkpartiet, has called for the re-run referendum to be held in 2011. However, the article quotes Swedish PM Fredrik Reinfeldt saying that he has no plans of bringing up eurozone membership any time soon. "We have to remember that we asked the Swedish people - they heard the arguments for and against and voted No", he said.

A leader in Le Monde argues that "the financial crisis has seen one unquestioned winner, the euro". It concludes that "The crisis should incite the French to put a definite end to their criticism - favoured but groundless - against the European Central Bank and the single currency. The euro was for two decades their main political objective. They have achieved it. They have every reason to celebrate."

Citing the example of Denmark and Hungary, Wolfgang Munchau writes in his FT column that eurozone expansion is likely to be accelerated by this financial crisis, as well as EU expansion if and when Iceland joins.
FT Eurotopics Leterme Le Monde leader Euractiv Independent Independent letters Svenska Dagbladet Svenska Dagbladet2

In an attempt to secure a higher turnout at next years European Parliament elections, spin doctors at the EP have decided to send a ballot box into space as part of £21 plan to boost the image of Brussels.
Times

Hague: EU lacks "strength of will"
In a comment piece in the Sunday Telegraph, Shadow Foreign Secretary William Hague argues that the new US President will have a number of foreign policy challenges to confront as soon as he takes office. These include situations in both Georgia and Bosnia, where Europe has been keen to "take ownership" of problems, but the EU's Common Foreign and Security Policy has lacked the "strength of will or strategic patience necessary to do so."
Sunday Telegraph Hague

Czech Prime Minister: Parliament will ratify the 'imperfect' Lisbon Treaty
In an interview with Le Monde, Czech Prime Minister Mirek Topolanek was asked whether his ODS party is "eurosceptic". Topolanek said: "I would qualify our position as eurorealist, as it doesn't lessen our engagement in the EU. I signed the Lisbon Treaty, despite its imperfection. I don't want my name, which has been engraved in marble in the San Jeronomo monastery in Lisbon, to be erased. If all the members of the ODS thought like me, it would be simple. But despite everything, I've persuaded myself that Parliament will ratify it."
Le Monde

The UK Government is to push for a change to EU immigration law that recognises the citizenship of immigrants who have been allowed to stay in the EU by other member states.
NOTW

Germany concedes that eurozone summits of state and government leaders can be held "if necessary"
Die Zeit reports that the Franco-German dispute on French proposals with regards to a eurozone economic government has been settled. Germany has conceded that in case of future crises in European finance markets, summits of the 15 state and government leaders of the eurozone could be held, alongside established regular meetings of eurozone Finance Ministers. However, the general coordination of economic policies should still be decided by all 27 member states, including the member states that aren't part of the eurozone. At the 7 November summit, a similar common EU position on the response to the financial crisis will be pursued.

Czech PM Topolanek in an interview with Le Monde, and dismisses suggestions that Sarkozy is trying to create a parallel EU Presidency to that of the Czech Republic, which will take on the Presidency at the beginning of next year. He told the paper, "We recognised that there was no need to pay attention to these speculations and wanted to make sure that the transition between the transition between the two presidencies happened with continuity and without a hitch."
Zeit Le Monde

EU countries agree to push back CO2 auto limits to 2015
AFP notes that EU member states have agreed to a three-year delay of the original 2012 deadline to reduce carbon dioxide emissions for cars, in light of the global economic crisis, negotiators said on Saturday. The target remains the same - for new vehicles sold in the European Union to emit no more than a benchmark 130 grammes of CO2 per kilometre. In addition, EU member states also agreed Friday to an additional target - to limit CO2 emissions to 95 grammes per kilometre in 2020.
AFP

Supermarket to fight EU ban on ugly fruit
The Observer reported that supermarket giant Sainsbury's has launched a 'Save Our British Fruit and Veg' campaign after attempts to encourage healthy eating were scrapped after fears that the EU could prosecute individual members of staff for selling imperfect fruit and vegetables. Sainsbury's planned to launch Halloween 'zombie brains' cauliflowers, 'witches fingers' carrots and 'ogres toenails' cucumbers, as an alterative to sweets and chocolate. A spokesmen is quoted in the Observer as saying "We knew it was illegal but we were happy to take that risk as a company and say: "Bring it on, EU."'
Observer

In an interview with Saturday's Telegraph the new EU Trade Commissioner Baroness Ashton distinguished herself from Peter Mandelson by saying "I don't know any oligarchs. I don't think I've ever been on anyone's yacht... I come from a tradition that says you must be seen to be open about what you do and that you have to provide information in order to help people see what you're doing. You must be open, and you must demonstrate that openness as well."
Telegraph

Saturday's Sun reported that according to a report from the French Senate, a new EU law banning discrimination will allow same-sex couples the right to medically-assisted procreation.
No link

The FT reports that German Chancellor Angela Merkel's decisive reputation has challenged by her uncertain reaction to the financial crisis and the prominence of Brown and Sarkozy on the world stage.
FT

A London judge has ruled that the European Arrest Warrant for Holocaust denier Frederick Toben is 'invalid'.
Herald Sun

The European Commission has estimated that the eurozone has slumped in to a recession.
AFP

The Irish government will give a general commitment to attempt to ratify the Lisbon Treaty when the European Council meets in early December, but will resist pressure from European leaders seeking a date for a second Irish referendum, Sunday Business Post reports.
No link


The UK's Financial Services Authority is in talks with UK investment banks and fund managers over problems arising from the introduction of the European Union's Markets in Financial Instruments Directive, introduced a year ago this week.
FT

The European Court of Justice could step in to settle the dispute between the German state of Lower Saxony and Porsche over control of VW.
Reuters