Open Europe press summary: 14 January 2009

Europe

Open Europe urges MEPs to end two-seat EU Parliament
Open Europe has obtained a list of which MEPs have and have not, as of last week, signed a European Parliament Declaration calling for an end to the monthly trip between Brussels and Strasbourg. Open Europe has written to all those MEPs who have not signed, urging them to do so before the deadline tomorrow. As of last week, only 235 out of 785 MEPs had signed the Declaration. 393 signatures are needed for it to become an official European Parliament position. The so-called "travelling circus" costs EU taxpayers an estimated 203m euros per year and generates around 20,000 tonnes of carbon dioxide.
Sky News The Parliament Open Europe press release Open Europe blog

Benn: Pesticide regulations offer no "recognisable benefit"
There is continued coverage of yesterday's European Parliament vote to tighten rules on pesticide use and ban at least 22 chemicals deemed harmful to human health. The Times quotes Hilary Benn, the Environment Secretary, saying, "These regulations could hit production for no recognisable benefit to human health, and we are being asked to agree to something when nobody knows what the impact will be."
Times Irish Times Express Sun Mirror BBC BBC 2 European Voice

Czech installation art unveiled as a hoax
The controversial art sculpture that the Czech Republic commissioned for its EU Presidency has been unveiled as a hoax, reports the Mail. The piece was supposed to be the joint work of artists from each member country but the Czech artist with the original idea, David Cerny, has admitted that all of the sculptures were done by himself and a friend. EU officials have complained about the sculpture saying, "This is very provocative for an official building and does not seem to have been properly discussed in the appropriate forum."

The article quotes Open Europe Director Lorraine Mullally saying, "This is a bit of harmless fun and exactly what the EU needs. It makes a nice change from the usual boring EU posters you see hanging off the buildings in Brussels...Well done to the Czechs for shaking things up a bit - they hold the Presidency right now so why shouldn't they make their mark?"
Mail Irish Times IHT BBC: Mardell blog BBC BBC Today Programme Telegraph: Waterfield blog EUobserver Open Europe blog

Britain could be fined millions of pounds for failing to meet EU landfill targets
The National Audit Office has warned that Britain could be fined hundreds of millions of pounds in four years' time because the Government will miss mandatory EU targets to halve the dumping of waste in landfill sites, the Guardian reports. The EU directive on landfill was passed in 1999, and requires the UK to cut the amount of landfilled biodegradable waste, such as food, paper and vegetation, by 50% from 1995 levels by 2013.

Edward Leigh, the Conservative chairman of the Commons Public Accounts Committee, is quoted saying: "The department [DEFRA] sat on its hands for four years after the EU in 1999 set England a testing timetable for reducing the amount of biodegradable rubbish sent to landfill. There is a very real danger of our failing to meet the EU's 2013 waste-reduction target. Such failure might result in the UK being punished with fines to the tune of several hundred millions."
Express Guardian

EP establishes new budget to sell Lisbon Treaty
On his Telegraph blog Dan Hannan writes that the European Parliament has established a new budget to sell the Lisbon Treaty named by MEPs as "Perspectives for developing civil dialogue under the Treaty of Lisbon".

Meanwhile, there is further coverage of yesterday's comments by David Cameron, that the Conservatives would hold a referendum on the EU's Lisbon Treaty if his party is elected later this year. If an election took place in the spring or the summer, Cameron said, "We could have a referendum in October." EUobserver notes that a No vote in such a referendum "would effectively kill off the Lisbon treaty." The Irish Times notes that "A decision to hold a referendum in Britain in October would cause a major headache for the Irish Government, which is likely to put Lisbon to a second vote that month."
EUobserver Irish Times Sun Telegraph: Hannan blog

Government admits second Irish vote "is a referendum on the same treaty as before"
In a debate in the Lords yesterday on the Lisbon Treaty, Lord Malloch-Brown, Foreign Office Minister in the Lords, confirmed that the "reassurances" to be offered to the Irish "do not change the Lisbon treaty". He went on to say, "Ireland sought and has received guarantees, but the treaty has not been reopened. In that regard, it is a referendum on the same treaty as before."
Hansard

No Russian gas despite EU brokered deal;
Barroso threatens legal action against Russia and Ukraine
The WSJ reports that a deal struck by the EU on Monday between Moscow and Kiev to restart gas flows to Europe is unravelling. The Times notes that European observers said "little or no gas" was flowing from Russia into Ukraine despite Moscow claiming it has resumed the supply. A spokesman for Ukraine's state gas company Naftogaz admitted that it had partially blocked the supply but claimed it was forced to do so because of "unacceptable transit conditions" imposed by Gazprom.

According to PA, European Commission President Jose Manuel Barroso has threatened legal action against Russia and Ukraine over the dispute. He said, "The current situation is both unacceptable and incredible". Adding that, "If the agreement sponsored by the European Union is not honoured as a mater of urgency, I will advise European companies to take this matter to the courts and call on member states to engage in a concerted action to find alternative ways of energy supply and transit."
WSJ Times FT IHT Sun Guardian BBC European Voice EU Referendum blog EurActiv EUobserver Deutsche Welle

Brown to visit Paris and Berlin to secure agreement on economic crisis
PA reports that Gordon Brown is due for talks with French President Nicolas Sarkozy today in attempt to secure international agreement on measures to combat the economic crisis. On Thursday he will travel to Berlin for talks with Chancellor Angela Merkel. Brown is preparing to host the second crisis summit of the G20 nations in London in April which he hopes will agree a fresh series of co-ordinated measures.
No link

109 members of the Association of Clinical Professors of Medicine have signed a letter to the Times criticising EU 'red tape' for a decline in UK biomedical research and preventing revolutionary medicines from reaching patients in clinical trials.
Times-Letters

The European Parliament is to vote today on a proposed directive designed to free up cross-border procurement in defence contracts, and allow sub-contracting across member states.
FT

Increasing pressures in eurozone as Portugal becomes fourth country to receive credit warning
Portugal has become the fourth eurozone country in as many days to receive a warning from Standard and Poor's that it faces a possible downgrading of its rating status because of its public finances, reports the FT. A leader in the FT warns that eurozone economies face specific problems in being unable to depreciate their currencies to help ease adjustments. The article also notes that credit risk spreads have suddenly widened in response to these warnings.

The FT Lex column argues that, because of the eurozone pressures, "The Irish referendum this autumn on the European Constitution [Lisbon Treaty] may well be an explosive vote."

Discussing the possibility that Ireland could become the "Iceland inside the Euro", David McWilliams, writing in the Irish Independent, argues that Ireland could end up defaulting on its sovereign debt. He also questions whether the EU would bail Ireland out, rather than allowing a sovereign default that could destabilise the single currency.

Eurozone President and Luxembourg Prime Minister Jean-Claude Juncker was quoted on EUobserver warning that, "The real test for the cohesion of the eurozone is still facing us...2009 is going to be an extremely difficult year."
Independent-Warner FT FT: Leader FT: Lex Irish Independent: McWilliams Irish Times European Voice EUobserver

German stimulus plan criticised for fear of worsening budgetary situation
The 82 billion euro stimulus plan agreed by the German government has been severely criticised with Steffen Kampeter, budget expert for the German Christian Democrats, lambasting Merkel for the "spending spree which will lead to new borrowing of 60 billion euros." The WSJ comments that "apart from burning a big hole in public finances, any temporary boost to the economy from these public works programs won't come anytime soon." Criticising the plans, Wolfgang Munchau writes in the FT Deutschland that "one could ask the question would it be better to not do anything. Because stimulus plans are costly. They raise public deficits and on the long term also interest payments".

Germany will change its constitution to ban excessive borrowing and impose strict new rules to ensure that the extra debt created by its latest stimulus plan is paid off quickly, according to EUobserver, which adds that both measures highlight German fears over the potential long-term damage to Europe's monetary union caused by excessive public borrowing, concerns shared by Belgium and the Netherlands. WSJ WSJ-Editorial FT IHT FTD EUobserver

European Aid Commissioner Louis Michel has criticised Israel's response to Hamas's rocket attacks as "totally disproportionate".
Irish Times

In the FT Howard Davies argues that in order to prevent the single market in banking from unraveling there needs to be a European supervisory authority for banks that wish to operate on a pan-European basis, with access to a lender of last resort facility.
FT: Davies

Writing in the WSJ Business Secretary and Former EU Trade Commissioner Peter Mandelson urges President-elect Barack Obama to make the Doha round of world trade talks a top priority.
WSJ-Mandelson

UK

Cameron to increase Hague's role in Shadow Cabinet
The Express reports that as part of his Shadow Cabinet reshuffle David Cameron plans to give Shadow Foreign Secretary William Hague a leading role in national as well as international affairs. Cameron told the Sun, "William is effectively my deputy in all but name and people need to know that."

PA notes that Cameron refused to be drawn on speculation he was planning to bring former chancellor Ken Clarke back into the Shadow Cabinet. However, he stated that Clarke would not reopen the European debate inside the party. "The Conservative Party position on Europe is settled. Everyone knows that."
Express Sun Times