Open Europe press summary: 15 December 2008

Europe

Assurances for Ireland to be written into Croatian Accession Treaty;
UK Europe Minister accused of "patronising" the Irish
EUobserver reports that assurances promised to Ireland for a second referendum on the Lisbon Treaty are to be written into a protocol together with Croatia's Accession Treaty to the EU in 2010 or 2011 according to EU President Nicolas Sarkozy. EUobserver also argues that this would make the concessions legally binding because the Accession Treaty would have to be ratified by all member states, however the precise wording and legal implications of these assurances remain unclear. The Irish Independent writes that legal wording on the assurances will not be drafted until June next year.

The Weekend FT reported that the deal reached on the concessions to Ireland was designed to keep the issue off the British political agenda. Prime Minister Gordon Brown claimed that the concessions given to Ireland do not materially affect the Treaty and therefore Britain does not need to reopen its ratification process.

The Irish Independent on Saturday wrote that Irish PM Brian Cowen was "confident" of a Yes vote on a second referendum on the Lisbon Treaty. It reported that the importance of workers' rights will be stressed, but, following concerns by the British, the precise wording on this issue appears to have been watered down. Nicolas Sarkozy was quoted saying, "The Lisbon process is relaunched. I'd just like to tell you how brave the Irish prime minister has been." The piece also quoted German MEP Alexander Alvaro saying, "I'm not sure if people in Ireland are aware what 'No' means: 27 minus Ireland."

Meanwhile, the Irish Times and the Telegraph report that the UK Minister for Europe, Caroline Flint, has claimed that Irish voters rejected the Lisbon Treaty because they did not understand it. She said that the Irish people thought, "that they would have their rights in a number of areas taken away, and that wasn't the case and isn't the case." Open Europe Director Lorraine Mullally is quoted describing the comments as "extremely patronising...For Caroline Flint to stand up and say that voters were wrong to feel they would be losing control is extraordinary. Either she has no idea what is in the Treaty, or she is being deliberately misleading... It is not for British politicians to casually dismiss legitimate Irish concerns about a loss of power to Brussels."

In a piece in the Irish Times, the Irish Foreign Minister Micheal Martin writes that Ireland has secured important concessions from the EU. He says that, "The manner in which the European Council responded to our requests highlights the union's profoundly democratic character."

In a comment piece in the Sunday Times, Minette Marin wrote that "democracy is being undermined by democratically elected governments that don't understand a constitutional no."

The Sunday Times reported that significant victories in next June's European elections would give Libertas the impetus it needs ahead of the re-run referendum on the Lisbon Treaty, but otherwise a chance of a repeat of the No vote could be damaged.
Telegraph Irish Times Irish Independent Irish Times-Kinsella Irish Times-Martin FT Sunday Times EUobserver Sunday Times:Marrin Sunday Express: Groves Sunday Telegraph-Hannan Sunday Telegraph-Booker BBC Irish Independent 2 Open Europe blog

EU's watered-down climate and energy package agreed as Commission aims to set emissions targets 10 per cent higher
On Saturday the Independent reported that environmental groups have accused the European Union of watering down its pledge to tackle climate change, after EU leaders made concessions to heavy industries in Germany and eastern Europe. The compromise allowed the EU to agree on its commitment to cut emissions of greenhouse gases by 20 per cent by 2020.

However, instead of being required to buy 100 per cent of their "carbon emission permits" in 2020, as proposed by the European Commission, heavy industries including cement, chemicals and steel will have to buy only 70 per cent. The Times noted that European industries exposed to international competition will receive free emissions permits if they face a 5 per cent increase in costs, a measure that is viewed as covering more than 90 per cent of EU industry. EUobserver notes that "the fine print of the deal will see the vast majority of the emissions reductions made in the developing world instead of Europe".

The Independent quoted European Commission President Jose Manuel Barroso admitting that the concessions risked handing windfall profits to some of Europe's biggest polluters and that the original plans had been scaled down. "We would have preferred our initial proposals," he said. "We had to accept changes. That's the price to pay for unity in the end and it's a fair price."

Meanwhile, the Weekend FT reported that the European Commission is already proposing a higher target for reducing greenhouse gas emissions. The article noted that the EU has pledged to raise its 20 per cent target to 30 per cent if a deal is reached at a conference in Copenhagen next December on a replacement for the Kyoto protocol. Environment Commissioner Stavros Dimas told United Nations climate talks in Poland that the target must be upped in the next year: "A 30 per cent reduction target - this is what we should work on from now on. This is what the EU has proposed, and we are expecting other developed countries to put their cards on the table [with similarly ambitious targets]."Times Independent Guardian WSJ Irish Times Irish Times-McDonald Guardian-letters EurActiv3 EUobserver AFP FT: Leader European Voice Irish Independent Economist Weekend FT Weekend FT 2

MEPs to vote on UK Working Time opt-out this week
The Times reports that Labour MEPs are split over whether to vote to preserve the UK's opt-out from the EU's Working Time Directive when the European Parliament holds a vote on Wednesday this week. Gordon Brown has made preserving the opt-out a key priority for the Government, but attempts to end it are being lead by North-East Labour MEP Stephen Hughes.
Times Guardian

Benn: Heathrow expansion will see UK break EU pollution targets
The Times reports that Gordon Brown is set to approve a third runway at Heathrow and overrule his Environment Secretary, Hilary Benn, who has warned that this may cause the UK to break its EU commitments on climate change. Britain has obtained opt-outs from EU air pollution directives, but they run out over the years to 2015, by which time the UK has promised to get emissions down below EU limits.

The Environment Secretary played down arguments that "green" technological improvements to air transport would allow the UK to meet EU targets over time, while still expanding airport capacity. In an interview with the Sunday Times he warned that there would be serious consequences if Britain failed to meet the EU targets. "You are then in trouble with the [European] Commission, you get infraction proceedings and then off you go - which is not something we can contemplate," he said.
Mail Telegraph Times Guardian

Trichet: We must not blow up growth and stability pact
In an interview in the FT, ECB President, Jean-Claude Trichet, anticipates that the exceptional circumstances clause within the EU Stability and Growth Pact will provide the necessary flexibility to weather the current economic crisis and warns that exceeding such limits would be harmful: "If we unravel the Stability and Growth Pact we won't rebuild it afterwards". He also admits the power of interest rate cuts has been limited by the financial crisis, "The transmission channel is not functioning as usual, but it is functioning."

EUobserver reports that the German government is working on a second stimulus package worth "at least 30bn Euros". This would follow the 12bn euro package announced in November. However, any plan would not be unveiled until after the Obama inauguration on January 20th.

The Irish Independent reports that the Irish government announced a 10bn euro rescue package for the country's banking sector.
FT FT 2 FT3 FT 4 EUobserver WSJ Irish Times Irish Independent Irish Independent 2 BBC Krugman - NYT

Elliot: joining the Euro would make things worse
As Sterling moves closer to parity with the Euro, Larry Elliot in the Guardian and Roger Bootle in the Telegraph, make the case for not joining the Euro. Both cite the benefits of tailor-made monetary-policy that a sovereign currency affords in the current economic climate. This comes as Yvette Cooper, Chief Secretary to the Treasury, said that the Treasury will not intervene in currency markets to prop up the value of the pound.
Guardian-Elliot Telegraph: Comment Telegraph Times Guardian European Voice

Government to allow EU access to DNA database
The UK Government has agreed to allow other EU countries to access sensitive information from a database including DNA, fingerprints and driver registration. The Telegraph reports that the argument is backed by the European Arrest Warrant, which provides for speedy extradition to other EU countries.
Mail Mail: Leader Telegraph

British ambassador protests over German remarks
In the ongoing rift between Berlin and London, Sir Michael Arthur, Ambassador to Germany, has made a formal complaint to the German Finance Ministry. The subject of the complaint was comments made by German Finance Minister, Peer Steinbrück, who dubbed the UK Government's response to the economic crisis as "crass Keynesianism".Independent Guardian Telegraph

Political leaders in the European Parliament have awarded their parties millions of euros in extra funding only weeks before the deadline for the money to be spent because of a large budget surplus.
Guardian

Germany has offered to buy half the number of Eurofighter Typhoon jets ordered by the UK's Ministry of Defence that they cannot pay for in an "informal offer" made to Defence Secretary John Hutton, reports the Weekend FT. FT

A leader in the FT writes that "An EU bridging force could prevent the collapse of the UN mission" in the Democratic Republic of Congo and that there are European countries willing to take part, but that "Britain has actively discouraged any EU intervention."
FT: Leader

UK

The Independent reports that the Conservative lead over Labour has been cut to a single point.
Independent