Open Europe press summary: 6 November 2008

Europe

UK business groups slam 'out of touch' MEPs over vote to end working time opt-out
There is continued coverage of yesterday's vote in the European Parliament's Employment and Social Affairs Committee in favour of a proposal that would end the British opt-out from the EU's 48 hour working week. Business Secretary Lord Mandelson said: "The decision by the employment committee is not surprising. We will continue to stand firm to protect the opt-out to the Working Time Directive's 48-hour maximum working week, which is essential to Britain's labour market flexibility that has helped to create an extra three million jobs over the past decade."

A range of business groups yesterday criticized the vote in the Committee. John Cridland, Deputy-Director of the CBI, is quoted by the FT describing the vote as a "worrying indication" of how out of touch MEPS were. The issue will come before the full Parliament next month.

The Mail quotes the Conservatives' business spokesman Alan Duncan saying: 'While the Prime Minister poses as the friend of business in Britain, his own MEPs are stirring up huge problems for small firms already struggling with the recession.'
Open Europe blog Mail FT

Czech President to meet Ganley despite Irish government protests
The Irish government is furious over plans by the Czech Republic's President to meet Declan Ganley, the head of anti-Lisbon group Libertas when he visits Ireland, the Irish Mirror reports. Vaclav Klaus arrives on Monday and will spend time with Declan Ganley - even though the Taoiseach and other TDs asked him not to.

A survey of the national parliaments in the EU has showed that a majority support ratification of the Lisbon Treaty, despite the Irish No. However, a number of parliaments - such as the Danish and the Czech ones - had either no formal position or said ratification should be halted.

In a statement yesterday, Enlargement Commissioner Olli Rehn said he hoped EU member states would not use the Irish No to delay Croatia's accession. Rehn predicted that the Lisbon Treaty would be ratified before Croatia was ready to join the Union but he also pleaded with the Irish public to change their minds on the Treaty. "I would very much want to see that the Irish people would be able to decide to ratify the Lisbon Treaty as well as the other countries that have not yet ratified the treaty", he said.
Irish Times-MEP poll Irish Times-Smith

The Conservative Home blog reports that James Elles and Timothy Kirkhope are to contest the Conservative leadership in the European Parliament. A vote will be taken on 18 November. Neither candidate has responded to Open Europe's Transparency Initiative, launched in March this year.
Conservative Home Open Europe Transparency Initiative

Irish MPs criticise Catholic Church for not supporting Lisbon Treaty;
Cardinal: Perhaps people see EU in terms of bureaucracy and not social values
Fianna Fáil and Fine Gael TDs have criticised Catholic Primate Cardinal Seán Brady for not publicly supporting the Lisbon Treaty. Fianna Fáil TD Beverley Flynn said, "I think there was an obligation on the church to make a strong statement on Lisbon." Cardinal Brady said, "A 100 per cent resounding call for a Yes vote, I think, would have got people's backs up," adding that people had begun to see the EU in terms of bureaucracy, legislation and economics, rather than in terms of social and human values. "I wonder are we ready for the big step where it's one, large union now . . . We're not one people in Europe yet, far from it," he said. Some of the TDs also urge the cardinal to "take action" against an unofficial catholic paper that had been critical of the Lisbon Treaty.
Irish Times Irish Independent Irish Independent2

MEPs introduce restrictions on pesticides despite opposition
EUobserver reports that MEPs have backed a ban on toxic pesticides despite strong opposition from farmers and industry. The key aspect of the legislation is the requirement that national action plans, reducing the use of pesticides, include quantitative targets. The European Crop Protection Association, lobbying on behalf of farmers and pesticide manufacturers, has argued that quantitative targets are arbitrary, as pesticides are not used uniformly, but "respond[ing] to real, local pest management needs".
The Parliament EUobserver

EU divided over financial and economic challenges ahead of Washington G20 meeting
Euractiv reports that EU finance ministers failed to endorse any significant measures to tackle recession during their meeting in Brussels on Tuesday, which was dominated by internal divisions, as conflicting positions emerged on global economic governance. The meeting was supposed to form the basis of a common EU position ahead of the G20 meeting in Washington on 15 November.

Euractiv notes that the original commitment of "encouraging an internationally coordinated response to the macroeconomic challenges to come" was dropped, with many member states fearing a dangerous and over-ambitious attempt at global governance of the economy.

Eurogroup President Jean-Claude Juncker rejected the idea of upgrading the monthly meetings of eurozone financial ministers to a sort of 'economic executive' led by heads of state and government. "I don't think it is a good idea to institutionalise a meeting at that higher level, but when necessary, it is not a bad idea to convene the heads of the Eurogroup," he said, downsizing suggestions made by French President Nicolas Sarkozy.
Euractiv

Stelzer: Europeans don't want Obama to ask them to do more in Afghanistan
Irwin Stelzer argues in the Telegraph that "Europe has its diplomats scurrying around Washington to make certain that they are not asked to do more [in military terms in Afghanistan]. 'Don't put us in the position of having to turn down the new President; persuade him not to ask us to do more.' Obama is less likely than Bush to put their feet to the fire, at least publicly. But if he remains convinced that it is in America's and the world's interests to defeat the Taliban with hard and soft power - the combination used successfully in Iraq by General David Petraeus, the man now in charge of the US effort in Afghanistan - Obama might not prove as accommodating as his European admirers are hoping."
Telegraph Stelzer

British consumers burdened with higher gas bill increases than continental consumers, says OECD
European energy firms are unfairly raising prices for British consumers relative to continental consumers, according to the UK Government consumer watchdog citing new figures from the OECD. The Independent reports that construction of new gas storage facilities in Britain - the lack of which is blamed by many for the disparity between UK and continental prices - is facing serious delays.
Sun Independent

Gros and Micossi: sovereign debt should be issued at EU level
Daniel Gros and Stefano Micossi argue in the FT that the EU needs to develop a unified market for bonds denominated in euros. They argue that investors have been putting money into US and Japanese bonds because "the separate markets for sovereign debt paper of unequal quality issued by European governments cannot compete with the US market for financial flows in search of a safe harbour; and they will not be able to compete in times of turbulence until the European Union develops a unified market for bonds denominated in euros."
FT Gros Micossi

Dan O'Brien: Ireland should expect consequences from breaking EU budget rules
In the Irish Times, Dan O'Brien from the Economist Intelligence Unit looks at the Irish government's "massive" breach of euro zone budget rules, forecasting a general government deficit of 8.5 per cent of GDP in 2009. He argues, "the government and its advisers apparently expected the EU Commission to ignore its breach of budget rules by invoking the 'exceptional circumstances' clause in the (revised) Stability and Growth Pact. They miscalculated badly."
Irish Times-O'Brien

Russia's ballistic missile threat to Europe offers early challenge to Obama
In an early challenge to US President-elect Barack Obama, Russian President Dmitry Medvedev has warned in his first state of the nation address that Russia may site new ballistic missiles within striking distance of the EU. Mr Medvedev said the Kremlin would deploy 'ground-to-ground' missiles in the Russian enclave of Kaliningrad if the US deploys its planned missile defence shield in central Europe, the WSJ reports.

The Guardian suggests that Medvedev's comments could affect US-EU relations and "is likely to be an early foreign policy headache for Obama, as his fledgling administration seeks to improve ties with the EU", whilst reassuring the post-communist member states that he will not cave in to "Russian bullying".
FT EUobserver AFP WSJ Irish Independent Times Guardian Metro

Recent surveys suggests Poles may vote against the euro
Eurotopics notes that the Polish government and the major opposition party have reached a consensus over holding a referendum on the introduction of the euro, with the date possibly coinciding with the European elections on 7 June 2009. However, Polish daily, Dziennik, suggests that the financial crisis sweeping the eurozone may have a bearing on the vote: "According to the most recent surveys the crisis has scared the Poles and it is possible that they could vote against the introduction of the euro."
Eurotopics Dziennik

According to Le Figaro, the Commission has said that enlargement will help the EU in the economic downturn by bringing in "dynamic" new economies in the Balkans and Turkey - Serbia and Montenegro could next year become official membership candidates.
No link

After a two-day meeting in Marseilles, diplomats from 43 European and Mediterranean countries have agreed that the Mediterranean Union will have its headquarters in Barcelona.
FT

According to FT Deutschland, the EU Commission said yesterday it will investigate the 8.2bn euro capital injection into Commerzbank.
Eurointelligence