Open Europe press summary: 17 December 2008

Europe

European Parliament votes to ban free choice over working hours
The European Parliament yesterday voted to scrap the UK's exemption from the EU's 48-hour maximum working week. The FT notes that the vote to end the so-called "opt-out" within three years was carried by a 421 to 273 majority, with 11 abstentions, and contradicted the position taken by member states in June. If the opt-out is finally scrapped, it would mean that working more than 48 hours would be illegal in the UK. MEPs also voted against revisions to on-call time rules for doctors and other public sector workers. Member states and the Commission have for years tried to change these rules following two court decisions from the ECJ, which had imposed very high costs on public sectors across Europe.

Several Labour MEPs chose to defy the Government and vote in favour of ending the exemption. One third of the members of the EPP, the centre-right group in the European Parliament, supported the amendment against the opt-out. The Times quotes Labour MEP Stephen Hughes, who led the European Socialist Group's opposition to the opt-out, saying "I think it is now a question of when the opt-outs end rather than if."

The vote was slammed by both the Government and business groups in the UK. According to the Guardian, Business Secretary Peter Mandelson said removing the opt-out would be "absurd" and the Government would work to retain it. "Millions of employees and businesses in the UK and across Europe have benefited from freedom of choice on working hours for many years," he said.

A leader in the Mail notes that the vote came on the same day as Whitehall statisticians "released one of the bleakest sets of employment figures in memory". The leader cites Open Europe's estimate that ending the opt-out would cost £2,300 per British household by 2020, arguing "If any further proof were needed that our MEPs are living in la-la land, utterly detached from the grim economic reality, it arrived in spades yesterday".

Open Europe's Mats Persson was quoted in the Telegraph, arguing that "The real losers from this deal will be ordinary workers and taxpayers. Politicians should be focusing on how to cut taxes and create jobs to boost the economy, not forcing through expensive new EU rules." Open Europe's estimate of the cost of ending the opt-out was also mentioned in the Mail, Guardian, Express, Belfast Telegraph, and on Euractiv. Mats was also interviewed on BBC Wales Radio.

The issue will now go to the so-called 'conciliation' stage, where representatives from the European Parliament and the 27 EU member states will try to find a compromise. They have until May to reach a compromise or the entire revised directive will fall, leaving the British opt-out in place. However, that still leaves the issue of on-call time unresolved. In addition, the UK does not have a veto in the conciliation stage.
Times Times-Bremner Mail Mail-Leader EUobserver AFP Euractiv Telegraph FT Belfast Telgraph Guardian European Voice BBC BBC Mardell: Blog Telegraph Waterfield: Blog Telegraph Hannan: Blog Open Europe blog Open Europe briefing

MEPs pass the EU's climate and energy package;
EU to outsource 50% of its industrial emissions to developing countries
The BBC reports that the European Parliament yesterday approved the four directives making up the EU's climate and energy package, agreed by member states last week. The EU is now committed to cutting its greenhouse gas emissions by 20 per cent from 1990 levels by 2020; generating at least 20 per cent of its energy from renewable sources by 2020; and increasing energy efficiency by 20%.

The FT notes that many MEPs complained that changes made to the EU's emissions trading scheme at the centre of the package were too generous to corporate interests and that the legislation allowed member states to undertake most of their emissions reductions outside of Europe.

European Voice notes that member states have given themselves more room to meet the targets, by allowing themselves more scope to buy carbon credits from clean development projects in developing countries in place of emissions cuts at home. The final deal means that the EU will be able to outsource 50% of its industrial emissions and around 80% of non-industrial emissions, according to Commission estimates.
FT Irish Times European Voice BBC

Commission buckles under pressure from member states to relax state aid rules
The European Commission has been forced to relax its strict rules on state aid for business yesterday following pressure from several member states who have found the procedures "cumbersome and bureaucratic", the Times reports. Competition Commissioner, Neelie Kroes, said yesterday that, "These changes are justified given the exceptional economic conditions" but added that the "measures must also be temporary", according to EUobserver.

The FT reports that the previous maximum limit of lump-sum state-aid payments has been raised from 200,000 euros over 3 years to 500,000 euros over 2 years.

Meanwhile, the EU Court of First Instance yesterday overturned a decision by the European Commission in 2004, ruling that a 4.5 million euros discount received by budget airline Ryanair from the Belgian state was not a form of illegal state-aid, the BBC reports.
Times WSJ EUobserver AFP FT Guardian WSJ-Vives WSJ 2 European Voice Irish Times BBC

Evans-Pritchard: ECB faces a mutiny The Telegraph's Ambrose Evans-Pritchard blogs on how for the first time since the launch of monetary union, an ECB board member has dared to confront the influence of the German Bundesbank on ECB policy for not following the US Federal Reserve in reducing interest rates.

A comment piece by Holger Stelzner in Germany's Frankfurter Allgemeine Zeitung predicts that European central banks will ultimately follow the Federal Reserve into a zero interest rate policy as the financial market will force them into it, adding that "in the end there will be a massive transfer of wealth from creditor to debtors, and the recognition that life is not always fair."Telegraph blog FAZ Eurointelligence

Sarkozy wants to "help" the Czechs during their EU PresidencyAn article in Le Monde reports that Nicolas Sarkozy "wants to continue to have influence in Europe" after the end of his EU Presidency later this month. He is quoted saying that the "big countries... do not have more rights, but have more responsibilities", which Le Monde says may be a signal of an intention to "bypass the Czech Presidency". He said he wants France "to help" the Czechs during their Presidency of the EU from January onwards. Le Monde

Cowen: Lisbon Treaty is only way for Ireland to keep Commissioner
The Irish Times reports that Fine Gael leader Enda Kenny yesterday called on PM Brian Cowen to name a date for the second referendum on the Lisbon Treaty and also clarify how the assurances from the EU on key issues, such as tax and abortion, can become legally binding.

Meanwhile, Brian Cowen yesterday said that, "only if Lisbon enters into force will Ireland, and each member state, now keep a commissioner."

A separate article in the Irish Times reports that Ryanair Chief Executive Michael O'Leary has vowed to campaign vigorously in a second referendum on the Lisbon Treaty.
Irish Times Irish Times: Letters Irish Times 2 Irish Times 3

Limits on Bulgarian and Romanian immigrants to the UK likely to remain
PA reports that UK Ministers will today announce the results of a review of limits on workers coming to Britain from Romania and Bulgaria. Immigration Minister Phil Woolas is expected to announce to Parliament that the limits will remain, to be reviewed again in a year's time.
No link

'Anti-crisis' loan to boost Eastern Europe
The FT reports that the European Bank for Reconstruction and Development (EBRD) will provide loans to central and eastern European businesses. Systemically significant banks in the region will be amongst the recipients of the 1bn euros available. The funds will supplement the 5.9bn euros that have been allocated to the region previously.
FT

EU faces battle on fishing quotas
As the annual two day summit begins to agree on quotas for the EU fisheries policy, the Irish Times quotes industry leaders who suggest that meeting will be "one of the most difficult in recent years". As well as balancing the need to restock fish populations with the viability of national fishing industries, they suggest that President Sarkozy has made removing Ireland's special dispensations, dubbed the "Hague Preferences", a priority.
Irish Times BBC BBC 2 BBC 3

Slovenia's Prime Minister, Borut Pahor, has said his country will block Croatia's EU accession talks due to a long-running border dispute between the two countries.
EUobserver Euronews

French Foreign Minister Bernard Kouchner has warned that the European members of Nato will face a tough choice next year on whether to respond to expected pressure from US president-elect Barack Obama to send more troops to Afghanistan.
FT

The Commission has defended EU Internal Market Commissioner Charlie McCreevy after three prominent MEPs accused him of bypassing demands for stricter regulations governing hedge funds and private equities.
Irish Times