Open Europe press summary: 16 December 2008

Europe

Ending the Working Time Directive opt-out threatens compromise deal;
Union urges MEPs to reject the proposals
In a feature on tomorrow's European Parliament vote on the British opt-out of the Working Time Directive, Radio 4's World At One programme featured Open Europe's debate on the issue, held last week. The programme featured contributions from Paul Sellers, the TUC's Working Time Policy Officer and Alistair Tebbit, Head of EU and Employment Policy for the Institute of Directors, as well as members of the audience, including business-people in the structural steel industry.

The FT reports that ending the opt-out threatens a compromise agreement that was reached in June which allowed Britain to keep its opt-out in return for agreeing to support the Agency Workers Directive - giving temporary workers the same pay as permanent staff after only 12 weeks in a job. One of Europe's biggest employers' organisations, the Council of European Employers of the Metal Engineering and Technology-based Industries, representing 200,000 companies employing 12.7m people, has written a letter to MEPs urging them to reject the proposals to end the opt-out.

Approximately 250 doctors have protested in Strasbourg and more protests by trade unions are being anticipated before Wednesday's vote on the issue. Le Nouvel Observateur reports that MEPs are "set for a fight".
BBC: WATO FT Open Europe Events Figaro Nouvelobs

EU access to Government database could lead to "miscarriages of justice"
The Shadow Home Secretary, Dominic Grieve, has warned that signing up to "ill-designed" EU legislation, allowing European governments to access a database of sensitive personal information, will leave people exposed to "miscarriages of justice". He added that the Lisbon Treaty will further entrench EU authority, "with a swathe of new powers over the criminal justice system".
Telegraph

Irish Labour Party unhappy with "vague assurances" on Lisbon Treaty referendum rerun;
Sarkozy admits concessions are only "political commitments"
The Irish Labour Party has begun to signal doubts over a second referendum on the Lisbon Treaty, indicating that they are unhappy with only "vague assurances" on workers' rights, reports the Irish Times. A Labour Party TD said that if progress on guarantees was not made, they would "not see the value in having a second referendum."

PA reports that EU President Nicolas Sarkozy has admitted that "the problem is the legal form of those political commitments." He went on to say that an "Irish protocol" would be added onto Croatia's Accession Treaty, adding that the EU was not interested in re-ratification because, "we have no interest in solving one problem to create 26 others."

Open Europe's reaction to UK Europe Minister Caroline Flint's comments, that the Irish people rejected the Lisbon Treaty because they did not understand it, continued to receive coverage in yesterday's Belfast Telegraph and the Morning Star.

An editorial in the WSJ suggests that Libertas' drive to be a pan-European party presents the genuine potential to have real pan-European debates about important issues and could see an end to the current "democratic deficit" in Europe.
WSJ-editorial Irish Independent-Myers Irish Times: Comment Irish Times

European Parliament expected to approve "diluted" climate agreement this week
Writing in the WSJ, Billy Peiser describes the EU's climate deal as "diluted beyond recognition" and indicates that it is possible that it may result in only 4% cuts in CO2 emissions once all of the exemptions have been factored in, rather than the promised 20%. It suggests that this is due to the changing political atmosphere in Europe, with Germany, Italy and Poland objecting to the deal in its original form.

The article argues that the insertion of a revision clause, pushed by Italy, has made climate targets conditional on the outcome of international talks next year. If they fail to reach agreement "it is as good as certain that some of the EU's targets will be further cut."

European Voice reports that the European Parliament is expected to approve the agreement on climate change reached at the last week's European summit, in a vote later this week.
WSJ-Peiser IHT European Voice EurActiv

Germany will decide on new financial stimulus package in January as pressure mounts for action
EUobserver reports that the German government is working on a second stimulus package worth "at least" 30 billion euros, but no decision will be taken until the end of January, after US President-elect Barack Obama is sworn in. The article notes that Economy Minister Michael Glos discussed a second package during a seven-hour meeting on Sunday between cabinet members and around 30 representatives of industry, trade unions and banks.

The new German package will focus on combating inflation and pay rises. The IHT notes that German Chancellor Angela Merkel hopes to forge an informal pact between trade unions and employers with the aim of preventing job losses. The premise being that the unions will accept lower pay raises in return for the employers agreeing to preserve jobs. Finance Minister Peer Steinbrück said that "Big companies will apply a voluntary no-firing policy."

However, the article notes that no immediate measures were agreed at the meeting. Merkel said she wanted to assess the different economic forecasts and see what economic policies Barack Obama would adopt once he is inaugurated as US President.

In the IHT, Paul Krugman writes that since "cutting interest rates, isn't working...Large-scale government aid looks like the only way to end the economic nosedive." He argues that a coordinated European response is necessary and that the role of Germany, the EU's largest economy, is vital: "You can't have a coordinated European effort if Europe's biggest economy not only refuses to go along, but heaps scorn on its neighbours' attempts to contain the crisis." He concludes arguing, "The issue is time. Across the world, economies are sinking fast, while we wait for someone, anyone, to offer an effective policy response."

The FT notes that while ECB President Jean-Claude Trichet was keen to defend the rules of the Stability and Growth Pact in an interview yesterday, he "also hinted helpfully that there was space for a German stimulus package." The Guardian notes that the IMF's Managing Director, Dominique Strauss-Kahn, has called on governments to increase spending to boost economic activity.

Meanwhile, the Guardian reports that the European Commission is to examine Ireland's proposed 10bn euro recapitalisation of its troubled banking sector amid fears the EU's single market is at risk.

The Fistful of Euros blog forecasts a massive rise in Spain's fiscal deficit to 5-7%, which it predicts will have enormous implications for bond spreads within the eurozone.

EUobserver reports that several European banks feature on the list of institutions hit by an alleged 36.5 billion euro fraud scheme orchestrated by US trader Bernard Madoff.
Times Guardian IHT IHT: Krugman FT: Brussels Blog EUobserver FT Telegraph Evans-Pritchard Irish Times Guardian 2 FT 2 EUobserver 2 FT 3 FT 4 FT 5 FFOE blog

Mardell: Sarkozy's stint as EU President may strengthen calls for full-time post proposed under Lisbon Treaty
On his BBC blog, Mark Mardell reflects on Nicolas Sarkozy's Presidency of the EU, arguing that there is "no doubt Mr Sarkozy put his stamp on the presidency in a way that few manage, behaving as if he was indeed the President of Europe." He goes on to suggest that "I bet one of the arguments we hear more of, perhaps today, is that his success and style proves the need for a full-time President of the Council, as proposed in the Lisbon Treaty."
Irish Times: Comment BBC Mardell: Blog European Voice

Next year is "critical" to EU-Turkey membership talks
A report from the International Crisis Group released yesterday argues that the pace of Turkey's accession process to the EU should be boosted, and that the next year will be "critical" to the negotiations, reports EUobserver. If the accession talks continue to stall, the rate of reform could slow and simmering ethnic tensions between Turks and Kurds could heighten.

An article in the WSJ also indicates that France's opposition to Turkey's membership has been an obstacle to the Nabucco gas pipeline project, which is intended to strengthen Europe's energy supply by bringing gas reserves from the Caspian Sea through Turkey. EurActiv reports that the Czech Republic is one of the biggest supporters of the project and has made energy security a key priority for its EU Presidency.
EUobserver WSJ-Pope EurActiv

Legal doubts on attempts to raise number of MEPs if Lisbon enters into force
Jean Quatremer reports on his Coulisses de Bruxelles blog that the European Council has decided to adopt a declaration which will raise the number of MEPs for 2009-2014 from 751 to 754, if the Lisbon Treaty enters into force from January 2010.

The Treaty of Nice provides for the number of MEPs to fall from 785 to 736. However, Lisbon raises this number to 751 and the plan is to apply this immediately to the European Parliament, although, as Quatremer reports, "the 27 could have quietly waited for 2014". EU leaders decided to raise the number to 754, as Germany doesn't want to lose 3 of its 99 MEPs.

Quatremer questions whether the European Council can legally take such a decision and whether the composition of the Parliament will be legal, saying "won't someone be able to take the case to the European Court of Justice?" He suggests that another ad hoc article would be added into the Croatian Accession Treaty as a solution.
Coulisses de Bruxelles European Voice Euractiv

Italian textile workers to receive 35m euros from EU 'globalisation' fund
European Voice reports that 6,000 laid-off Italian textile workers will receive a total of 35 million euros from the EU's Globalisation Adjustment Fund to help them back into employment. The fund allows member states to apply for support when globalisation forces a company to restructure or relocate, leading to at least 1,000 redundancies.
EurActiv European Voice

European Commission to spend 17.8m euros promoting EU agriculture
Agence Europe reports that the European Commission has approved 11 programmes to promote agricultural products from the EU in a number of third countries. The EU's contribution will be 17.8 million euros - 50% of the total budget of the programmes. The programmes mainly target Russia, Ukraine, China, Japan and North America. The products in question are wines, fruits and vegetables, meat, and dairy products.
No link

French Economy Minister Christine Lagarde has asked the EU to help the auto sector, referring to the US bail-out. Les Echos reports that French President Nicolas Sarkozy plans a new package of mostly loan guarantees to the French car sector.
Reuters Challenges Les Echos FT

Less than three weeks before the Czech Republic assumes the EU Presidency, EurActiv reports that PM Mirek Topolanek is still trying to reach an agreement on a coalition to prevent internal infighting impacting on the Presidency.
EurActiv

Montenegro filed for EU membership yesterday, hoping to gain EU candidate country status next year.
European Voice EurActiv EUobserver

A consultation by the European Commission launched yesterday revealed that "about 37,000 patients die every year directly from infections caught in hospitals". PA reports that the consultation paper launches months of talks on how to improve healthcare services.
European Voice

UK

An intended efficiency drive at the Department for Transport has resulted in costs of £81m instead of the intended saving of £112m in what the Commons Public Accounts Committee labeled, "one of the worst cases of project management" they had seen.
Independent Mail Express Telegraph Guardian Mirror BBC