Open Europe press summary: 7 November 2008

Europe

Working Time Directive: MEPs' position "diametrically opposed" to the UK's view;
UK Government faces potential defeat on opt-out, on-call time and compensatory rest
The media continues to report on Wednesday's vote in the European Parliament's Employment Committee on amendments to the EU's Working Time Directive (WTD). Agence Europe quotes Socialist MEP Alejandro Cercas describing the position of MEPs as "diametrically opposed" to the Council's view on three points: the committee wants to scrap the UK opt-out from the agreed 48-hour working week, while at the same time keeping the current rules for on-call time and compensatory rest. Open Europe Research Director Mats Persson is quoted in the Express arguing that the vote is an "embarrassment" to the UK Government which claimed in June to have safeguarded the opt-out in return for accepting less flexible EU rules for temporary workers. Mats added that "Introducing such laws at a time of recession would be madness."

Euractiv notes that the committee voted in favour of counting on-call time for medical staff as working time in future. Member states argue that on-call time should make a distinction between "active" and "inactive" on-call periods, to save hospitals and other public service providers from hiring more staff at huge costs. According to them, only the former should be considered as working time unless national legislation, a collective agreement or an agreement between the social partners provides otherwise.

MEPs also voted against the member states' proposal to amend an equally controversial provision in the WTD requiring that compensatory rest periods be granted at the end of the working period. Member states argue that it should be up to national governments to determine a "reasonable period" within which such compensatory rest should be granted, citing the huge cost it has incurred on the public sector.

Agence Europe quotes Andrea Benassi, head of UEAPME (the European association of craft, small and medium-sized enterprise), saying that the EP had not shown great responsibility by acting in this way. "It took eight Presidencies of the European Union and endless Council meetings to find a compromise on the Working Time Directive. The Parliament cannot afford the luxury to tear it into pieces and to transform such a delicate issue into pure electoral propaganda", he said.
Euractiv Times Express

EU leaders meet in Brussels to discuss financial system but disagree over extent of regulation
EUobserver reports that EU leaders are meeting in Brussels today to discuss an overhaul of the international finance system. France, which holds the EU Presidency, has tabled a three-page document consisting of five key priorities that "should be agreed no later than on 15 November," when global leaders meet to discuss the same topic in Washington.

The report also notes that Germany has already objected to a clause within the text referring to "an internationally co-ordinated response to the macroeconomic challenges", because it could imply the shaping of economic policies above the national level. Swedish ministers have reportedly expressed fears about over-regulation. "We should not turn financial markets into steady waters," one diplomat said.
European Voice Irish Times Irish Independent BBC EUobserver Reuters

Central banks in Europe cut rates sharply
The UK cut interest rates by 1.5% yesterday to a 25-year low of 3%, a move that was followed by a less dramatic 0.5% reduction in rates by the ECB. The cuts were intended to address the continuing decline of stock markets in the UK and Europe, but the aggressive cut failed to prevent the FTSE 100 falling by a further 5.7% yesterday.
IHT Independent European Voice FT Coulisses de Bruxelles EUobserver

Mobile phone customers may foot bill for EU data law
Mobile phone service operators have said that the "huge cost" of complying with an EU Directive requiring data retention will be passed onto customers, according to the Irish Times. Vodafone Ireland has estimated that it will cost them 5 million euros in the first year to set up and manage a system to store the data, although costs will depend on exactly what companies will be asked to retain under the legislation.
Irish Times

Cavendish: EU's Emissions Trading Scheme "foundering" due to over-allocation of 'permits to pollute'
Writing in the Times, Camilla Cavendish argues that the EU's 'cap-and-trade' Emissions Trading Scheme "is foundering this week because the carbon price has virtually collapsed. It now costs almost nothing to pollute. This is because the 'market' is rigged: EU governments allocate pollution permits to their companies, and they have been too generous. The number of permits needs to fall, urgently, and permits need to be auctioned".
Times Cavendish Open Europe research

'Pragmatic' Czechs to push for climate change deal
The Czech Republic has announced that it will take all the "necessary steps" to reach an agreement on the climate and energy package when it takes over the EU Presidency from next year, writes Euractiv. However, a Czech climate change representative stated that, while the Czechs supported the EU goal of fighting climate change, the Czechs remained a "pragmatic nation" and the necessary changes to the package "would not be achieved overnight". Hunt indicated that the current financial crisis would make it more difficult to achieve climate change goals "on all levels".
Euractiv

The Mail reports that food companies have complained that new healthy eating labels recommended by the EU will be too big to fit on the packet of some products.
Daily Mail

The European Commission has ruled that the Polish government must repay 2.3bn euros in state-aid to two shipyards, paid over the last 4 years, the Guardian reports.
Irish Times BBC Guardian European Voice

EU quietly reopening partnership talks with Russia
The Economist looks at how the EU is "quietly" re-opening its partnership talks with Moscow, despite the presence of Russian troops in the Georgian enclaves, whose withdrawal the EU made a condition for the talks. It is noted that despite the usual claim that Europe "yields a lot of soft power...Here and now, however, the EU is faced with a less high-falutin' problem. Its highest political body--a summit of 27 heads of state and government--set a condition for Russia that has not been met. Do they now pretend that it has been?"
Euobserver Economist

Le Figaro reports that Polish President Lech Kaczynski has said he will not block ratification of the Lisbon Treaty. Until now he has refused to sign it.

Hungary has been awarded an IMF bail-out package.
Deutsche Welle

EU grants Turkey "market economy status".
Euractiv

Car industry calls for help
Following the dire automotive sales in the US, Western European figures appear similarly weak. The FT reports that sales fell 15.5% last month. The industry blames the recent sustained high oil prices, tight credit conditions and freefalling consumer confidence. Carmakers are looking for support through an EU package of 40bn euros of low-interest loans.
FT

The IHT reports that Spain's chance of gaining a seat at the G20 conference next week may have improved with the election of Barack Obama.
IHT

UK

Labour hold onto Glenrothes
The Labour Party has kept control of the seat in the Glenrothes by-election, winning 55% of the vote, reports the Times. The SNP came second to Labour with 36%; the Conservatives came third with 4% and the Liberal Democrats fourth with 3%.
AP Bloomberg Independent Times