Open Europe press summary: 12 December 2008

Europe

Ireland to hold second referendum on Lisbon Treaty;
Gordon Brown questions legal status of "concessions" as Irish government admits it will take months to agree what form they will take
There is wide coverage of yesterday's EU summit in Brussels, where Irish Prime Minister Brian Cowen gave a commitment to hold a new referendum on the Lisbon Treaty in return for a number of "concessions". PA reports that EU leaders have today agreed on draft conclusions released yesterday, which made clear that leaders want the Treaty to come into force by January 2010.

According to the Irish Times, "The key elements of the deal involve agreement that all EU states retain a commissioner, and that legal guarantees on issues of concern to the Irish electorate such as neutrality, abortion and taxation are accepted." An Irish government spokesman told the BBC that Ireland was "seeking legally binding instruments to address the concerns of the Irish people." Commission President Jose Manuel Barroso told the BBC's Newsnight programme: "We are not going to ask the Irish people to express their opinions exactly on the same issues."

However, deep uncertainty remains about whether or not the concessions would be made legally-binding, and what impact this would have on the ratification status in other member states. Irish Foreign Minister Micheal Martin has admitted that, "The exact legal nature of the guarantees needs to be sorted out, a process that will stretch into the new year."

The Irish Times reports that "The detailed technical work required to finalise the legal guarantees will take place in the next six months and will probably be agreed by EU leaders at June's European Council. The Government is expected to ask its EU partners to sign up to an international treaty where they all agree to the insertion of a new Irish protocol into the EU treaties when Croatia joins the union in 2010/2011... The exact nature of the guarantees or opt-outs still have to be formulated with a debate on whether to opt out from European security and defence policy expected in coming months."

On his FT Brussels blog, Tony Barber writes: "The unanswered question is: What form should these concessions take? A straightforward declaration by all EU leaders won't be enough, because it may not be legally binding." He notes that if the concessions were wrapped into Croatia's EU Accession Treaty, "that may be no good, either. That's because all other EU countries will have to approve Croatia's Accession Treaty, probably during 2010. If this document included extra language on concessions to Ireland, it would look as if the EU was trying to sneak changes to the Lisbon treaty through a back door."

Gordon Brown has raised objections to some of the guarantees being sought and also assurances about workers' rights, expressing concern at the nature of the guarantees and whether they could affect the legal systems of other states. The Irish Times reports that "In particular, Britain is concerned any legally binding protocol attached to the EU treaties that offers guarantees to bolster workers' rights does not enable the European Court of Justice (ECJ) to overrule British labour law. There are also concerns the British parliament will eventually have to ratify any legally binding protocols for Ireland, possibly in a future accession treaty for Croatia."

On his blog, the Telegraph's Bruno Waterfield reports that Gordon Brown and Nicolas Sarkozy have called on the services of Jean-Claude Piris, the French Director General of the Council of the EU's legal service, to find a watertight seal on the deal. He writes, "The British PM asked for his help because he is worried about the vague language, in an EU summit communiqué that stresses the high importance of un-New Labour stuff like 'social progress and the protection of workers' rights'." The FT notes that "Other EU countries are willing to grant Ireland its concessions, provided there is no risk of their being forced for legal reasons to reratify the treaty themselves - a prospect they regard with horror."

On the issue of keeping one Commissioner per country, former President of the European Parliament Pat Cox writes that: "This concession does not require a change to the Lisbon Treaty, which already provides the European Council with the right to decide the number of commissioners, subject to unanimity. What has changed is the spirit in which the rule will be interpreted."

A leader in the Times argues that "If a second Irish referendum on the Lisbon treaty does take place, it deserves to be resoundingly rejected once again... Europe's - and Mr Cowen's - impatience with Ireland's voters have revealed a basic misunderstanding of democracy next to which the EU's other problems pale." The Express reports that the Conservatives have said that a second Irish referendum would make it morally impossible for Gordon Brown to refuse the British a say on the Treaty.

Open Europe's Lorraine Mullally is quoted in the Telegraph, the Express and the Mail, and on Euractiv, arguing that the draft conclusions say nothing about legally-binding guarantees, and that the Irish 'no' vote is being ignored. The Mail and the Irish Times carry a photo of Open Europe's protest in Brussels yesterday, where campaigners wore masks depicting EU leaders and carrying banners calling for the 'no' vote to be ignored.

Open Europe's protest was featured on Newsnight and on several European television and radio stations, including RTE, Danish TV2, France 2, Swiss TV, Luxembourg radio and Czech TV. Open Europe was interviewed on many of these, in addition to BBC Radio Scotland, CNBC, and the BBC World Service.

Meanwhile, Irish protesters organised a mock funeral procession for the Lisbon Treaty in Dublin yesterday, organised by the Peace and Neutrality Alliance (PANA) and the Campaign Against the EU Constitution.
Irish Times Irish Times 2 Irish Times 3 Irish Times-Smyth Irish Times-Clonan Irish Times-Cox Telegraph Times-Leader Times Irish Independent Irish Independent: Comment FT Independent European Voice FT: Brussels Blog Mail Economist IHT Guardian BBC EurActiv Telegraph - Analysis: Bruno Waterfield BBC - Analysis: Mark Mardell EUObserver Mail - Analysis: Mary Ellen Synon Irish Times-OE protest Irish Times 2 Irish Independent Irish Independent: Comment European Voice BBC: Newsnight

Merkel agrees to EU stimulus package worth 1.5% of GDP amid continued disagreements over details
The Guardian reports that German Chancellor Angela Merkel has backed the European Union's proposed economic stimulus package, saying, "We support the view of the [European] commission that we need to provide 1.5% of GDP for the stimulus package to strengthen the economy. Germany is aware of its responsibility as Europe's biggest economy and Germany will also look at what we may have to do."

The article notes that Merkel appeared to be at odds with senior figures in her "grand coalition" as a diplomatic row has broken out between Germany and the UK over comments made by German Finance Minister Peer Steinbrück that Gordon Brown is "tossing around billions" to spend his way out of recession. Furthermore, German Budget Spokesman and member of Chancellor Merkel's CDU/CSU party, Steffen Kampeter, suggested Britain's rising level of debt was a "complete failure of Labour policy", the Telegraph reports.

Gordon Brown and Foreign Secretary David Miliband have made efforts to play down the comments. Miliband suggested "What you've got is internal politics in Germany. You have got a grand coalition there, and you have got elections next year", the Express reports. In response, the Times quotes Kampeter as saying "Peer Steinbrück's comments have nothing whatsoever to do with internal German politics" and instead "After years of lecturing us on how we need to share in the gains of uncontrolled financial markets, Labour politicians cannot now expect us to share in its losses."

The BBC reports that the EU package will see 200bn euros of funding - equivalent to 1.5% of the EU's total output, poured into economies. Despite Merkel's apparent endorsement there are still disagreements over specific measures within the package and how the money will be spent. The stimulus plan will include tax cuts, reduction in regulation, support for small business and anticipated further reductions in interest rates. However, it is understood that individual countries will be able to opt out of measures, such as specific tax cuts, that they don't agree with.

Open Europe's Mats Persson appeared on Bloomberg Television, discussing what the EU's hand-over of its rotating Presidency to the Czech Republic may mean for the stimulus package.
Guardian Mirror FT FT: Leader Independent: O'Grady Express Times Times-Righter Telegraph Telegraph 2 Telegraph-Weyer Telegraph-Leader Telegraph-Conway Mail Guardian 2 Guardian - Analysis: Martin Kettle BBC BBC: Today Programme

Energy and climate deal close as Germany and Poland win major concessions
The FT reports that concessions on free pollution permits may allow the EU to reach a deal on its energy and climate change package, as talks continue today. The paper notes that a draft communiqué made available at the EU summit, said industrial sectors would have to buy no more than 70% of their carbon emissions permits at auction in 2020 rather than the 100% that the European Commission had originally proposed.

The move has been seen as a victory for Germany, which has campaigned for free permits for heavy industries. The article notes that Poland is also set to win concessions. Its coal dependent utilities will reportedly receive up to 70 per cent of their allowances free - an exemption from auctioning that will be gradually phased out by 2020.

Süddeutsche Zeitung reports that last night a declaration appendix was approved containing further concessions for eastern Europe. European Voice notes that these concessions comprise a 'solidarity fund' that could be used to help poorer countries with the cost of reducing CO2 emissions and investing in new technologies. The European Commission has proposed that the fund should receive 10% of all auctioning revenues, estimated at around 7.5 billion euros a year, and should be redistributed among member states, depending on their prosperity.

However, the FT notes that an additional 2% of auction revenues will be divided amongst eastern European states in recognition of the emissions reductions they achieved in the 1990s before EU accession. Germany had opposed such a fund altogether, while Britain had wanted to limit it to the 10% originally proposed by the Commission.

The BBC notes that the talks continue today amid ongoing disputes over how many carbon credits will be issued and to how many industries. It also notes that there is concern that the compromise being proposed will lead to the overall aim of the package being undermined: "billions of pounds will be lost because governments will auction fewer permits...And the carbon price will be depressed because so many free credits have been offered - this will act as a deterrent for firms to invest in clean technology."
Irish Times Express Times-Cavendish FT European Voice European Voice 2 European Voice 3 BBC EurActiv Bloomberg Le Monde Suddeutsche

Libertas launches as pan-European party
Declan Ganley launched Libertas as a pan-European party yesterday and announced his intention to run candidates in all 27 member states in the June 2009 elections, reports the Irish Times. He said, "The Irish Government and the powerful elite in Brussels are showing utter contempt for the democratic decision of the Irish people in rejecting the Lisbon Treaty". The Irish Independent reports that a spokesman for Mr. Ganley said he would make his announcement on whether to personally stand in due course.
Irish Times Irish Times 2 Irish Independent Irish Independent: Comment

Irish MPs voice fears over Czech "obstacle" to ratifying Lisbon Treaty
The Irish Independent reports that Irish MPs warned yesterday that the Czech Republic, which takes over the EU Presidency in January, will have to stop sending out "mixed signals" if the Lisbon Treaty is to be ratified. At a meeting of the Joint Committee on European Affairs with the Czech Ambassador to Ireland, Tomas Kafka, Irish MP Joe Costello said he hoped there would be no "obstacle" to Ireland's attempt to deal with the situation.
Irish Times Irish Independent Irish Times-Comment

EU leaders agree to step up military cooperation
Süddeutsche Zeitung reports that EU leaders have agreed on an EU defence package which would enable up to 60,000 EU troops to be deployed on a mission within 60 days, thereby enforcing the EU's Security and Defence cooperation.
European Voice

No EU force in Congo this year
European Voice reports that the Dutch and Swedish foreign ministers have said the EU is very unlikely to commit a peacekeeping force this year to the Democratic Republic of Congo. The Netherlands' Maxime Verhagen said it was already clear that there was insufficient backing for a Belgian proposal that the EU should swiftly despatch a peacekeeping force to the country.
European Voice Guardian

Pound reaches another record low against the euro
Sterling reached another record low against the euro last night. The falls follow the news of weak industrial data and the recent deep base rate cuts. When questioned about the current situation on the BBC Today Programme, David Milliband said "One of the benefits of a flexible exchange rate is that it is flexible and I think that we should look at our overall economic position".

On his Telegraph blog, Ambrose Evans-Pritchard suggests that Greece's euro membership has led to a "warped economy", with a current account deficit of 15% of GDP which is the sixth biggest in the world in absolute terms, and that the "slow-burn" effects of European monetary union is slowly corroding the democratic legitimacy of governments.
BBC BBC: Today Programme Guardian: Analysis John Palmer Telegraph: Martin Vander Weyer Telegraph Evans-Pritchard blog

Finland and Sweden denounce EU transparency rules
Finland and Sweden have criticised a proposal by the Commission to modify current legislation to exclude certain types of documents from public access, reports EUobserver. A Commission official stated that the proposal was aimed at merging different rules for different institutions and types of documents.
EUobserver

European Enlargement Commissioner Olli Rehn has said Iceland may apply to join the European Union as soon as next year.
BBC Knack

Italy and Germany have urged the European Commission to fully liberalise rail passenger markets and investigate what they see as unfair competition from French rail operator SNCF.
FT

EU member states have voted in favour of a proposal to introduce a private storage aid scheme worth 15 million euros to help Irish pigmeat producers affected by the recall on pork products.
Irish Times European Voice