Open Europe press summary: 13 January 2009

Europe

MEPs vote to ban pesticides
MEPs have voted today for tough new rules banning certain pesticides from European crop farming. According to PA, Conservative MEPs, having opposed the changes, said almost a quarter of products would be lost in the UK alone if the plans went through - including the total carrot yield and 20% of cereals production. The BBC reports that the move could "seriously threaten" UK food production, according to groups including the National Farmers' Union.

Conservative MEP and member of the European Parliament's Environment Committee Robert Sturdy has said, "This law will drive up the cost of the weekly food shop at the worst time for British families...We do need strong restrictions on pesticide use but it should be based on sound science, rather than on the whim of politicians."
BBC BBC 2

Russia turns on the gas;
Eastern Europe calls for greater "solidarity" in EU energy policy
The BBC reports that Russian state energy company Gazprom has resumed gas supplies through Ukraine to Europe, after they were cut for nearly a week. Analysts say supplies could return to normal within 24 hours, but a more likely time frame is 36-48 hours.

The Times reports that both sides signed an agreement yesterday, drawn up by the EU to restart gas flows, which details the work of 22 EU monitors in Ukraine and Russia to check the flow of gas amid claims from Moscow that Kiev was stealing supplies destined for Europe.

Meanwhile, the IHT notes that progress on integrating the European gas market by linking up national pipeline systems has been very slow, "partly because of mutual mistrust among EU nations, as well as divergent business interests and political differences on relations with Moscow." Member states still do not share information with each other about the price their energy companies pay Gazprom for natural gas. "We preach transparency, but we do not practice it among ourselves," an EU energy official said.

The paper notes that Poland has led calls from new members in central and eastern Europe for energy "solidarity" within the EU to reduce dependence on Moscow. EU officials say the crisis should encourage European leaders to put political momentum and public money behind plans for cross-border energy interconnectors in Europe at a March summit.

Another piece in the Times reports that EU ministers are to hold emergency talks today to agree short-term help for member states hit by the crisis. Slovakia has announced its intention to relaunch a Soviet-era nuclear reactor to avoid a possible power blackout. The reactor was shut down on December 31 in line with Slovakia's EU Accession Treaty in 2004. Bratislava says a provision in the Treaty allows the reactor to be used in the event of an emergency, but the European Commission said that there was "no legal base" for the relaunch.

Czech PM Mirek Topolanek was sympathetic to Slovakia's situation. "At the moment, I take it rather as a demonstration of their readiness to tackle an issue that the European Union cannot resolve for Slovakia -- a looming blackout," he said.

The FT reports that the Bulgarian government on Monday declared plans to ask for EU financial aid to help diversify energy supplies away from Russia.
IHT IHT 2 FT FT 2 Mail Guardian BBC European Voice EurActiv WSJ Times EUobserver AFP Deutsche Welle Liberation European Voice Times 2 Coulisses de Bruxelles Prague Daily Monitor

FT: Cameron promises referendum on Lisbon Treaty if elected in the summer
In an interview with the FT, Conservative Party leader David Cameron said that if his party were to win a summer general election, "we could have a referendum in October" on the Lisbon Treaty. He also said that his party is united in its approach to Europe, which includes breaking off its alliance in the European Parliament with French and German centre-right parties in the EPP-ED grouping.

The EU Referendum blog writes that "Since there will not be such an election, Cameron is onto a pretty safe bet that his bluff will not be called. But it makes him sound nice and tough, just in time for the voters to come flocking out for the [European elections]."

Meanwhile, Cameron also told the FT that the Conservatives plan to cut the House of Commons by 60 MPs by redrawing electoral boundaries. The paper notes that safe Labour seats in Wales and the inner cities could be axed.
FT FT 2 FT 3 EU Referendum blog European Voice

Israel-Gaza conflict highlights deficiencies in EU foreign policy
EUobserver notes that the ongoing conflict in the Middle East has served to underline weaknesses in EU foreign policy, something that some analysts say will not necessarily be fixed by the Lisbon Treaty. The article notes that, "As the Israeli attacks on the Gaza strip intensified, so too did the number of EU people on mission to the region." Antonio Missiroli, Director of the European Policy Centre think-tank, believes the Treaty may create new problems in the area of foreign policy, noting that "the division of labour" between its top players is not clear.

The WSJ notes that Tony Blair, who has been touted as the European Union's first president if the Lisbon Treaty is ratified, has suffered damage to his reputation as an international statesman as a result of the Israel-Gaza conflict. The paper notes that "he is finding himself marginalised while another European statesman, French President Nicolas Sarkozy, garners the headlines as a joint sponsor with Egypt of a cease-fire proposal."
EUobserver EUobserver2 WSJ Irish Times

Spain becomes third eurozone country warned over credit rating
Spain yesterday became the third eurozone country in three days to be warned of a potential downgrading of its credit rating over the deterioration of its public finances. The warning came from the rating agency Standard and Poor's, according to the FT. On Friday, Ireland and Greece were also warned that their ratings could be downgraded. The article also reports that the gap in bond yields between German bunds and debts of Spain, Greece, Ireland and others has risen to levels not seen since the launch of the euro.

The FT Brussels blog points out that the threat of a downgrade is still only a threat but that the message from rating agencies is clear: that "A spending spree to get out of Europe's recession will carry penalties".

An article by Matthew Curtin and Thorold Barker in the WSJ suggests that the situation of eurozone member countries could "reignite fears over the stability of the project itself".
FT Irish Independent Irish Times FT: Brussels blog EurActiv WSJ WSJ-Analysis Figaro

Parliamentary report finds British pig farmers at a "serious disadvantage" from EU competitors
A UK Parliamentary report has found that higher welfare standards have left British pig farmers at a "serious disadvantage" from competitors abroad, reports PA. The decision to ban the use of stalls and tethers on UK pig farms in 1999 came 14 years ahead of similar planned changes in the rest of the EU, and rivals such as Denmark and Netherlands will receive state support to make those changes in 2013. The report said, "The Government must ensure that never again are UK farmers placed at such a disadvantage compared to their EU counterparts as a result of unilateral national action."
No link

FT: Europe's willingness to take Guantanamo detainees may be "more rhetorical than real"
In an article examining possible future EU-US relations under an Obama administration, the FT writes that US officials have complained that European willingness to help close down the military prison in Guantanamo Bay may be "more rhetorical than real", due to limited interest from European countries in taking former detainees.
FT

Pat Cox, a former president of the European Parliament, has pledged "not to give an inch" to Eurosceptics in the run-up to June's European elections.
The Parliament Open Europe blog

German coalition has agreed on biggest stimulus plan since World War II
Germany has approved the largest fiscal stimulus package in Europe, after having criticised other European countries for their ballooning budget deficits and "crass Keynesianism", the WSJ reports. Germany's second stimulus package, which the government says is worth 50 billion euros, includes a mixture of investments, tax relief and support for companies. The package, to be unveiled officially today, will include 18 billion euros worth of cuts in taxes and other levies, spread over 2009 and 2010. It also envisages a total of 1.5 billion euros in aid for the auto industry, which experts say accounts for roughly one in five jobs in Germany. "This is the biggest package the Federal Republic of Germany has ever seen," said German Finance Minister Peer Steinbrueck.

According to Der Standard the Austrian government has said that such a package would lead to competitive distortions, and the FT comments that the plan to offer credit guarantees to industrial groups and take stakes in them, "could reignite a subsidy war if it becomes state aids - where Germany has a poor record - through the back door".
ARD Reuters WSJ Bloomberg FT FT: Leader BBC EurActiv Eurointelligence

Concerns over EU plans for CDS clearing house
An article in the FT raises concerns over European plans for a clearing mechanism for credit default swaps, announced three months ago. The article argues that the clearing house would be subject to US jurisdiction, and quotes the Chief Executive of the Futures and Options Association saying, "The Commission's call for a strictly EU CCP solution to clear EU CDSs seems out of step...it is the quality and cost of the clearing solution that matters most- not its location."
FT

Slovenia has asked the Czech EU Presidency to take into account its position on its border dispute with Croatia and not to ignore it as France did during its presidency in the previous half a year, according to the Prague Monitor.
Prague Daily Monitor The Parliament

Volkskrant: European Democracy doesn't need the Parliament
In view of the upcoming elections to the European Parliament (EP) in June, Dutch daily De Volkskrant asks whether such an institution is at all necessary; "It is precisely because of the EP that national parliaments have been able to stage a comeback, because democratic control is already covered at the EP level. But there are good reasons for reconsidering the role of the EP. Its legitimacy depends on many factors, and if the national parliaments play their part, European democracy can function perfectly well without the European Parliament."
Volkskrant

UK

Heathrow expansion decision could be delayed
The Guardian reports that Prime Minister Gordon Brown may delay a decision on the third runway at Heathrow until later this month over environmental concerns by ministers. The article points out that campaigners are highlighting the case that the runway could undermine a 2015 emissions target set by the European Commission.
FT Guardian

Senior Conservatives split over possible return of Ken Clarke
Politics Home notes that senior Conservative MPs and key party strategists are split on whether David Cameron should bring Ken Clarke back to the Shadow Cabinet. A Conservative MP who favours Ken Clarke's return argues: "He scares the Labour Party because he has a popular image which goes well beyond his lack of popularity in the voluntary Conservative Party elements that fixate on the EU."

However, an unnamed left-leaning strategist is sceptical about the merit of the move, commenting, he "will bring back the spectre of Europe to the party."
Politics Home FT