Open Europe press summary: 19 December 2008

Europe

Sarkozy: "There won't be any change to the Lisbon Treaty"
The Independent has printed an extract from a speech delivered this week before the European Parliament by French President Nicolas Sarkozy saying that without the Lisbon Treaty reforms, the European Union may stall, adding that "we cannot have the Treaty unless our Irish friends vote and say yes. In order for them to say yes, there is a new fact needed. The European Council proposes that this new fact is one Commissioner per member state."

He said that if the Commission continues to have one Commissioner per member state, the Commission President's powers "need to be strengthened...otherwise things are shambolic".

However, he said that the "political pledges" made to Ireland will not change the Lisbon Treaty: "We put a compromise on the table allowing us to assure everyone that they won't have to go through a new Lisbon treaty ratification procedure because there won't be any change to the Lisbon treaty."

Meanwhile, commenting on Sarkozy's EU Presidency, the Economist says: "Despite German hostility, he has not given up hopes of presiding over meetings of countries in the euro, which conveniently excludes the Czechs", with the Charlemagne column stressing that "the French presidency has little to do with Lisbon. Instead, it offered a glimpse of how Europe may work in a world in which the rules of global governance are in flux." It warns that "amid all this manoeuvring, France often angered small countries, which felt pushed around. A multi-speed Europe is a risky idea that could break up the EU."Independent-Sarkozy Economist Economist - Charlemagne Sarkozy speech in full

Governments will struggle to meet climate targets as investment in green energy projects collapses
The Times reports that global investment in clean energy technology, including solar and wind power, has collapsed in the past three months after hitting record levels this year. The warning of a steep downturn in activity comes as Ed Miliband, the Energy Secretary, is today set to appeal for greater investment in low-carbon sources of energy at a meeting of oil-producing and oil-consuming countries in London.

The UK has pledged to cut greenhouse-gas emissions by 80 per cent by 2050, while the EU has committed to cutting carbon emissions by 20 per cent by 2020, and to obtaining at least 20 per cent of energy from renewable sources.

The paper notes that the British Government views a huge expansion of offshore wind and tidal energy schemes as a key priority. However, problems in the industry could leave governments across the EU struggling to meet their ambitious targets.

On his BBC blog Mark Mardell writes that Europe's carmakers want more money from the EU in order to cope with the EU's rules on CO2 emissions. He quotes the head of the European Automobile Manufacturers' Association, Ivan Hodac, saying "We have asked for a soft loan from the European Investment Bank because at this moment the industry is doing very badly and it will be very, very difficult to get the money to invest in the fuel-efficient technologies to meet the target."

Mardell concludes suggesting, "In the end I suspect it will be oil prices and scarcity, not new laws or guilty feelings about the environment, that will force us to adopt different technology."
BBC-Mardell Times

In the Guardian, Michael White looks at Wednesday's vote in the European Parliament to end the UK's opt-out from the EU's 48 hours working week, citing Open Europe's estimate that losing the exemption would cost the UK £2,300 per household by 2020.
Guardian

UK fights to save Scottish fishing grounds at EU Fisheries Council
PA reports that British fisheries ministers were battling last night to avoid the closure of key fishing grounds off the west coast of Scotland as part of next year's EU catch quotas. The BBC notes that negotiations are taking place today at the EU Fisheries Council in Brussels to fix the fishing quotas for 2009. PA quotes UK Fisheries Minister Huw Irranca-Davies saying "With a cod deal already secured, the issue for us now is the potentially catastrophic closure of West coast fishing grounds which are a major part of the economy for many communities up and down the Scottish west coast."
Irish Times BBC

Economist: Pound's weakness strengthens case for staying out of the Euro
Yesterday Sterling reached 95.56p to 1 euro - the ninth successive day of record lows and with gathering momentum. It now appears highly likely that the two currencies will reach parity. The FT reports that this is in light of the ever increasing likelihood that the Bank of England will follow the US Federal Bank with a near-zero interest rate policy, as the economic climate continues to deteriorate. The Economist suggests that "the pound's recent weakness has reinforced the economic case for staying out [of the Euro]." It has allowed the Bank of England to cut rates decisively and will strengthen British international competitiveness now and in the eventual recovery.

The FT also notes the extra hardship the Euro's appreciation is inflicting on Eurozone members. As the recession looms large at home and abroad, a strong currency will compound the falling export demand facing the continent.

In the Irish Times, Anthony Leddin and Brendan Walsh, two Irish-based economics professors, discuss the Irish experience of Eurozone membership. They consider the difficulties that arise when, despite experiencing structural and cyclical differences, the union must respond with a homogenous monetary policy. But equally they note the added economic security and stability that a small country can gain by being under the umbrella of a shared currency. In the FT, comparing and contrasting the Finnish and Swedish experiences David Ibison suggests that the current weakening Krona may provide impetus for Sweden to adopt the Euro. A recent poll suggested that 38% now wanted the Euro, up from 35% in May.
FT FT2 FT3 FT4 Economist Irish Times: Comment Express

Practical details of EU stimulus package still unclear
EUobserver notes that EU finance ministers yesterday met at an informal session in Paris, discussing the concrete details of the 'stimulus package' that was agreed formally last week. The package calls for EU governments to inject 200 billion euros - 1.5% of GDP - into the economy. The article notes, "some experts argue that most spending ideas have so far only been presented by politicians and not really put into practice, while the government schemes to save banks have been linked with political conditions that many banks are refusing to sign up to, sparking fears that not enough is being done in Europe to stop the recession." Jean-Claude Juncker, the ECB President stressed the need to respect the EU's stability and growth pact.
EUobserver

Barroso warns Bulgaria over corruption
European Voice reports that José Manuel Barroso, the President of the European Commission, has reiterated calls for Bulgaria to improve its performance in fighting corruption and managing EU money, warning that he would not allow people to "play politics" with EU funds. The Commission has frozen a total of 486m euros of Bulgaria's EU funding, because of concerns over maladministration and corruption.

In November Bulgarian Prime Minister Sergei Stanishev, criticised the Commission's decision not to unfreeze the money, describing it as "unfair" and a sign that the country was "not treated like the rest". Speaking alongside Stanishev at a briefing yesterday, Barroso said that Bulgaria "is treated like every other member state", and that "we will not allow people to play politics with EU funds".
European Voice

MEPs and member states reach deal on toxic pesticide ban
EUobserver reports that MEPs and representatives of EU governments have reached a deal on two pieces of EU legislation banning a number of highly toxic chemicals within pesticides and reducing pesticide use. European Voice notes that up to 22 pesticides could be lost to European farmers and that the proposed rule changes had roused strong opposition from the pesticides industry and from some member states - notably the UK.
EUobserver European Voice

MEPs adopt 2009 EU budget
Agence Europe reports that the European Parliament adopted the EU budget for 2009 yesterday. The budget adopted will amount to 133.8bn euros, a slight increase of 2.5% on 2008. The Structural Funds will grow by 2.5% next year, totalling 48.5bn euros and 34.9bn euros in payments. Spending on agriculture will remain stable in 2009, absorbing more than 40bn euros.
Les Echos

According to a European Commission poll, 50 per cent of western Europeans think that EU enlargement to the east has weakened the EU. AGD

The House of Lords EU Committee has published a preliminary report on the EU's response to the financial crisis, calling on the Government to clarify its position on proposals to strengthen the supervisory framework on the EU-level of financial markets.
House of Lords report

UK Ministers have decided to retain migration restrictions on Romania and Bulgaria, introduced when the countries joined the EU last year.
Mail

The Czech government has announced its plans for its EU Presidency, focussing on relations with Russia and the Balkans.
L'Express

European Voice notes that MEPs yesterday voted to increase bank-deposit guarantees to 100,000 euros, from 20,000 euros. The guarantee will rise to 50,000 euros from next year and to 100,000 euros in 2010.
European Voice

Pressure is mounting on the Belgian Prime Minister to resign over allegations that his government had tried to prevent the country's judges from blocking the dismantling of Fortis, the troubled financial services group.
FT