Wednesday, December 10, 2008

Open Europe press summary: 10 December 2008

Europe

Barroso backs Irish retaining Commissioner as announcement of second referendum looms
EUobserver reports that European Commission President Jose Manuel Barroso has thrown his weight behind the idea of preserving the one country, one commissioner principle. This has been suggested as a key pre-condition for Ireland to rerun a referendum on the failed Lisbon Treaty. "I think it should not be a problem to have a commission with 27 members or more," Mr Barroso said yesterday. "We have empirical evidence it is possible for a commission to work with 27 members...If it is a very important condition for Ireland I personally will support it," he added.

The Coulisses de Bruxelles blog reports that at the EU summit this week the principle "will" be abandoned.

The Telegraph notes that Barroso's decision to extend the current Commission's session, due to expire at the end of October 2009, is "the clearest indication yet that Ireland will vote again next October on the controversial Treaty". The article notes that Barroso has signalled that next June's European elections will be held under current rules (Nice Treaty) and that his Commission will continue in a caretaker role until 2010, the deadline an EU summit will set for the Lisbon Treaty to enter into force.

The Irish Times notes that Irish PM Brian Cowen told the Irish parliament "The Government will need to be able to reassure the people that their genuinely held concerns have been taken on board by the other member states." However, Fine Gael leader Enda Kenny criticised Mr Cowen's speech, which he said failed to "deal with the core issues" and that Cowen had failed "to build any bipartisan support for a solution, something he desperately needs."

Meanwhile, PA reports that Foreign Secretary David Miliband told Parliament yesterday the UK would continue to be an advocate for a "reformed EU" at the upcoming summit. He said: "That means the government of Ireland being able to decide for themselves whether and how to follow up a decision of the Irish people in their referendum on the Lisbon Treaty earlier this year." He added, "Our position on this is clear - the treaty can only come into force if backed by all 27 member states and we do not propose to reopen this Parliament's passage of the Lisbon Treaty."

Shadow Foreign Secretary William Hague attacked the Government's refusal to hold a referendum on the Treaty: "Those actions have fed cynicism about politics and, indeed, about the European Union and they have compounded this error by joining in the refusal to listen to the people of Ireland, who so sensibly said no to the Lisbon Treaty in their referendum last June."
EUobserver Guardian European Voice Irish Times Irish Times 2 Irish Times 3 Irish Times 4 Telegraph Coulisses de Bruxelles Irish Times-Brown Irish Times- Lamassoure

Declan Ganley to launch Libertas as "European political movement"
The Irish Times reports that Declan Ganley will tomorrow launch Libertas as a pan-Europe political party to compete in next June's European Parliament elections at a lunch meeting in Brussels. Mr. Ganley is expected to outline ambitious plans to campaign against the Lisbon Treaty and build a new political movement. An invitation to the lunch and press conference describes Libertas as a "new European political movement dedicated to campaigning for greater democracy, accountability and transparency within the EU." It continues: "Libertas will also develop innovative and enterprising policies to benefit Europe and foster a more positive relationship between the institutions of the European Union and the citizens for whom they legislate." According to the paper, it is understood Mr Ganley has already signed up elected politicians in at least seven European countries to enable him to apply for EU funding for Libertas. The Czech Republic, France, Bulgaria, Poland and Ireland are all countries where Libertas may consider running candidates in next year's European elections.

Meanwhile, EUobserver reports that US Congress members have poured cold water on a European Parliament query about potential foreign funding for Libertas. German socialist MEP Helmut Kuhne asked US lawmakers at the meeting in Miami if the US government had in any way supported Declan Ganley. After returning from the delegation to the US, British MEP Jonathan Evans told EUobserver: "Our congressional colleagues drew our attention to a statement from US Deputy Secretary of State John Negroponte at Trinity College Dublin on 17 November, completely refuting the suggestion of any US dimension whatsoever." The paper notes that when asked in Dublin last month if the US government had helped Libertas, Mr Negroponte said: "absolutely not. I say that on very good authority, not only being Deputy Secretary of State but also being a former director of national intelligence."
Irish Times EUobserver

Czechs delay Lisbon Treaty ratification until February;
Klaus allies to form new party
The Czech Republic has delayed a vote on ratification of the Lisbon Treaty until February 3, reports the Prague Monitor. Although the Treaty has been approved by the Constitutional Court, the verdict must now be assessed by the Chamber of Deputies committees. AFP quotes Czech Prime Minister, Mirek Topolanek, as saying that "This break does not signify a definitive decision that we will not ratify the Lisbon Treaty", but that the ruling Civic Democrat party needed more time for political wrangling.

Meanwhile the Irish Times reports that allies of Czech President Vaclav Klaus are preparing to launch a new party centred on opposition to the EU's Lisbon Treaty and closely aligned with Libertas, after Mr Klaus resigned his honorary chairmanship of the ruling Civic Democrats (ODS) at last weekend's party conference.
Irish Times Prague Monitor

Barroso calls on countries to adopt spending package;
German Foreign Minister: meeting between Brown and Sarkozy "unfortunate"
EU Commission President Jose Manuel Barroso has called on EU leaders this week to endorse the Commission's proposal to pump some 200 euros billion into the EU economy. The Guardian quotes Barroso saying he would "insist" on a spending target of 1.5 percent of the EU's combined GDP, but added that he understood "those who want to be more prudent", with a clear reference to Germany. Barroso also called for US-EU joint measures to help combat the recession.

Germany, with a budget deficit close to zero, still opposes spending its way out of the crisis, despite mounting pressure from other European leaders for the country to adopt a more generous stimulus package. However, the Guardian quotes a German diplomat saying that Angela Merkel may propose a far-reaching stimulus package, including tax cuts, when her grand coalition government meets in January.

Meanwhile, according to the German press, Frank-Walter Steinmeier, Germany's Foreign Minister, has reacted angrily to the meeting held between Nicolas Sarkozy and Gordon Brown earlier in the week, to which Merkel was not invited. According to Süddeutsche Zeitung, Steinmeier called the meeting "unfortunate" and Merkel's absence "not great". He also said it was "inappropriate" for Barroso to put such significance on the meeting. German tabloid Bild asks, "What do Britain and France have against our Chancellor?"

A leader in the FT notes that the "Anglo-French axis is alive and well" in the midst of the financial crisis, with President Nicolas Sarkozy and Prime Minister Gordon Brown forming a better relationship than Sarkozy with Chancellor Angela Merkel. It also goes on to say that the EU is currently "less integrated than it used to be", which suits France and the UK better than Germany.

In the FT, Martin Wolf argues that the eurozone could soon experience a "debt crisis" and that recovery from the economic downturn is likely to come from "profligate 'Anglo-Saxons'".
EUobserver WSJ-Stark WSJ FT Eurointelligence FT: Leader

EU Court of Auditors criticise CAP;
Hague attacks Miliband over Government's commitment to reform
The Guardian reports that in a new study, the EU Court of Auditors has said that EU rules linking payment of subsidies to farmers with protection of the environment are poorly managed by the European Commission and poorly enforced by the member states. The Court's report said that the objectives of the cross-compliance scheme are not clear, rules are too complicated and execution and controls by member states are insufficient.

PA reports that Foreign Secretary David Miliband said that the Government would continue to support a "complete overhaul" of the CAP. "In next year's budget review, we will be pushing for a complete overhaul - direct payments to be phased out because markets should provide farmers with their incomes." Mr Miliband added: "This Government has a vision not just for Britain in Europe but for Europe's role in the wider world. The party opposite offers only a path to Britain's isolation in Europe and to a Europe with less power and influence on the world stage."

Shadow Foreign Secretary William Hague responded by challenging the Government's decision to give up part of its rebate without firm commitments on CAP reform and warned that the UK's contribution to the EU budget was set to rise from £2 billion to £6.5 billion in 2010-11.
Guardian NRC

Barroso: Lisbon is "imperative" to fight climate change and provide energy security
PA reports that Commission President Jose Manuel Barroso has told Europe's leaders that they face a credibility test at the EU summit this week. He said that this week's summit would be "perhaps the most crucial European Council in recent years." He told a press conference, "I believe we can show that climate action, energy security and economic growth can and must be pursued in a mutually supportive way." He added, "We need the Lisbon Treaty to do that. This is not a distraction. It is an imperative."

Comment: The Lisbon Treaty will do nothing to help the EU fight climate change and get us out of recession, and it is misleading in the extreme for President Barroso to claim that it will. On climate change, for example, the Treaty merely adds a few words to emphasise the importance of combatting it - but this does not affect the substantive powers of the EU to take action.
No link

Leaked German government study: 100,000 German jobs at risk from EU climate package; EU sources say targets for renewables are "merely indicative - not legally binding"
The European Parliament and member states have reached agreement on a key part of the EU climate package: the 20% target for renewable energy, including sub-targets for biofuel use. The Times notes that "In concessions to smooth the deal EU states that cannot afford to meet their own individual renewable energy targets will be able to outsource some of their efforts by sponsoring green projects in other countries or buying credits from those countries that have exceeded the goal. Instead of a parallel target proposed last year for 10 per cent of transport fuel to come from biofuels, this goal will now include all methods of sustainable transport such as electric cars and trains, while aviation will be exempt, meeting concerns from Britain that fuel technology would not be ready in time."

Business Week asks "what happens if countries don't meet their set targets? According to an EU source, the Dec. 9 targets are merely indicative - not legally binding. That means countries' targets could well slide as green energy investment feels the same financial pressure as the rest of the contracting EU economy."

The targets for renewable energy still need to be agreed at the European Council, meeting on the 11 and 12 of December.

Meanwhile, the other major part of the package - reforms to the EU Emissions Trading Scheme (ETS) - is still subject to fraught negotiations. The FT notes that Poland's concerns over making coal power generators pay for permits have still not been resolved after Prime Minister Donald Tusk met with German Chancellor Angela Merkel yesterday. Furthermore, Germany is said to be opposed to the Polish demand for an EU "solidarity fund", which would mean billions of euros worth of transfer payments from Western European industry to compensate Eastern European Member States.

Le Figaro reports on a recent unpublished study from the German Economy Ministry, which estimates that 100,000 German jobs are threatened if heavy industry is forced to pay for permits to pollute.

The front page of the IHT reports on how the free allocation of permits to pollute under the EU Emissions Trading Scheme has led to windfall profits for power generators. German power giant RWE is estimated to have received a windfall profit of roughly 5 billion euros in the first three years of the system - more than any other company in Europe. But emissions have risen steadily at RWE since the trading system began.

A leader in the WSJ on carbon reduction policy urges Barack Obama to pay attention to what is happening in Europe: "The Europeans once believed the 'green jobs' myth too. Now, as blue-collar workers take to the streets, they have learned that climate-change legislation means green unemployment."
IHT Le Figaro Reuters Business Week Standaard Le Figaro (no link) WSJ-editorial Times Times-Mortished EUobserver AFP FT: Letter European Voice FT Times

Welt: "nude scanners" were already bought by the European Parliament before they were rejected
Die Welt reports that the European Parliament has already bought controversial "nude scanners" to be used for airport security, the introduction of which has now been rejected after protests. Reportedly, the Parliament has bought 8 scanners, costing 70,000 euro each, which have occupied the cellars of the European Parliament since 2002. Markus Ferber MEP is quoted saying "this is another waste of taxpayers' money", also criticising the "hypocrisy" of some of his colleagues who first approved their purchase and then voted against their introduction, after public criticism of the plans.
Welt

Commission proposals for medicines market could increase NHS costs
PA reports that that the European Commission has launched proposals to modernise the medicines market and improve health. One recommendation to EU governments is to allow pharmaceutical companies to promote information about their products. However, Peter Moorey Public Affairs Manager for consumer watchdog Which? said that the plans risked leading to an advertising race in an area currently safeguarded against potentially confusing marketing.

"This could lead to a similar situation to the US, where people demand specific branded drugs from their doctor when cheaper equally-effective generic drugs are available. In the long-run, this could increase the cost and burden to NHS," Mr Moorey warned.No link

Irish appeal for EU pork funds looking unlikely
The Irish government is to appeal to the EU for part funding for a compensation package for the pork sector, but already early signals are not hopeful that it will be successful, reports the Irish Independent. A Commission spokesman is quoted in the Irish Times, revealing that there is "no basis...to compensate people from European funds for destroying the meat", and that any aid package would have to be paid by the national exchequer.
Irish Independent Irish Times Irish Times2

France has been fined £8.7 million for failing to introduce EU laws on time.
Express European Voice

Le Figaro reports that France is set to announce a new Europe Minister on Friday - expected to be Bruno Le Maire, described a "Villepinist".
Le Figaro

Le Figaro has a report on a debate held in Paris yesterday between Valerie Giscard d'Estaing and Daniel Cohn-Bendit on Europe. Giscard d'Estaing said "the French were at fault" for voting 'no'. Cohn-Bendit described the Lisbon Treaty as "an incomprehensible text".
Le Figaro

UK

The Government is on track to meet a target of cutting red tape by 25% by 2010, saving businesses £3.4 billion a year, according to a new report. However, the IoD argue that businesses have not experienced any improvement.Express

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