Open Europe press summary: 19 January 2009

Europe

Britain's top surgeon: the Government can alter Working Time rules "it if it has the political will"
The Sunday Telegraph reported that changes to hospital working hours which come into force this summer under the EU's Working Time Directive will be "disastrous" for patient care and result in "major service failure", according to Britain's top surgeon. John Black, President of the Royal College of Surgeons, issued a warning that the National Health Service will not be able to cope with the effects of the controversial European Working Time Directive.

The paper noted that from August, hospitals face heavy fines if they allow any health care staff, including surgeons, to work more than 48 hours a week, despite warnings from hospitals that they are not able to make the change. "With nobody able to work more than 48 hours a week from August, the effects on patient care in the NHS are potentially disastrous," Mr Black said.

Mr Black is meeting Alan Johnson, the Health Secretary, in February to propose a "speciality opt-out" and an upper limit on surgeons' hours of 65 to 70 hours a week. "I have no doubt we will be told that it is impossible to alter or bypass the European law. I do not believe this. All manner of EC law must have been bent or ignored in nationalising a bank in 24 hours. The Government can do it if it has the political will," Mr Black said.

A Department of Health spokesperson said: "A few hospitals have implemented the maximum 48 hour week across all rotas. We are monitoring the situation as some smaller specialities and isolated hospitals may find meeting the deadline more challenging."
Sunday Telegraph EU Referendum blog

Leading Irish economist: Dublin should threaten to leave Euro unless EU does more to help Ireland's economy
The Telegraph reports that David McWilliams, a former official at the Irish central bank and former Director of UBS, has called on Dublin to threaten withdrawal from the Euro unless Europe's big powers do more to rescue Ireland's economy. "It is essential that we go to Europe and say we have a serious problem. We say, either we default or we pull out of Europe," he told RTE radio.

"If we have a single currency there are obligations and responsibilities on both sides. The idea that Germany and France can just hang us out to dry, as has been the talk in the last couple of days should not be taken lying down," he said.

Mr McWilliams said the EMU was preventing Irish economic recovery. "We are paying twice for the euro: once on the exchange rate and once more on the interest rate," he said.

The article notes that there is no public support for withdrawal from the euro. A Quantum poll published by the Irish Independent yesterday found that 97percent reject such a radical move.

In the FT Wolfgang Münchau looks at what would happen if one of the member states of the eurozone were to default on its debt. He argues that default would not lead to the break-up of the eurozone: "if a default were to happen, it would almost certainly happen within a eurozone that remained intact."

He suggests instead that "Europeans would bail out one of their own, but it would not be fun for anyone, especially not for the defaulter."

He adds that "you could conceive of a scenario under which the bail-out had to be so large that it would bring down the entire system. This could then provide the non-defaulters with an economic incentive to leave. But dream on. If Germany, for example, had such an incentive to leave, it would almost certainly forgo that perceived economic benefit and stay for political reasons."
Telegraph WSJ FT: Munchau FT

On Conservative Home, Lee Rotherham expands on Open Europe's new research on EU propaganda, making a case study of Slovenia.
Conservative Home The hard sell: EU communications policy and the campaign for hearts and minds

EU shelves tax plan for fear of unsettling Irish voters
The EU has quietly shelved plans to harmonise the corporate tax base across the Union for fear of unsettling Irish voters ahead of the second referendum on the Lisbon Treaty, reports the Irish Times. A senior Commission official reportedly confirmed that the proposal would not be tabled until after a new Commission is appointed in November.
Irish Times

Quatremer:"Markets mimic eurozone break up"On his blog, Brussels Libération correspondent Jean Quatremer reports on the yield spread of eurozone member state bonds, warning that markets are mimicking "that the financial and economic crisis will lead to the eurozone break up". He cites Christian de Boissieu, President of the French "Conseil d'analyse économique", saying that in order to reduce the spread, the countries concerned should "not leave any doubt about their desire to remain in the eurozone".Coulisses de Bruxelles

Czechs promise to make asylum a priority
The Czech Presidency has added asylum policy to its list of priorities for the next six months, following calls for "urgent action" from Italy, Greece, Cyprus and Malta, reports European Voice.
European Voice

Cautious optimism from EU Commission as Russia and Ukraine strike gas deal
The BBC reports that Ukraine and Russia are set to sign a deal on gas prices, ending the 19-day dispute. The European Commission gave the deal a wary reception, underscoring the damage inflicted by the dispute on Russia's reputation as an energy supplier and Ukraine's reliability as a transit route. "We are not going to welcome anything until the gas flows," the Commission said, according to the FT.

The Irish Times reports that, according to Russian PM Vladimir Putin, the new deal envisages Ukraine paying 20 per cent less than the full European market price for Russian gas this year, and the full rate from 2010. Russia will pay the same gas transit fees this year to Ukraine as last year, and move to full European market rates in 2010.
Irish Independent Irish Times FT Telegraph BBC EurActiv WSJ Independent Guardian IHT IHT 2

Blair's EU President hopes hang on Lisbon
The Irish Independent reports that Tony Blair's hope for becoming the first permanent EU President rest on Ireland voting 'yes' to the Lisbon Treaty in a second referendum this year, although the report states that Blair is at a disadvantage to Jean-Claude Juncker, as he is no longer a national leader.
Irish Independent

US triples tariff on French Roquefort;
EU export subsidies could damage worldwide dairy industry
The outgoing Bush administration last week tripled the import duty on the French Roquefort cheese to 300% according to the Independent on Saturday. The article reported that it is part of an ongoing dispute over an EU ban on growth hormones used in beef in the US.

The New Zealand Herald reported that the dairy company Fonterra has said that the EU's decision to revive the export subsidy system for dairy products could push down commodity prices and have a detrimental impact on the worldwide dairy industry.
Telegraph Guardian Independent NZ Herald

Czech Presidency makes plan to contain rising deficits
Der Spiegel reports that the Czech EU Presidency has prepared an EU-wide post-crisis fiscal consolidation plan to contain rising deficits. The plan reflects concerns that deficits will stay permanently high after the crisis. In a document obtained by FT Deutschland, Czech PM Topolanek writes that "after the coordination of the stimulus plans, we now need coordination of the consolidation", adding that measures should be taken "before summer".
Der Spiegel FTD Figaro

Mandelson warns against protectionist "race for subsidies" as controversy stirs on aid to carmakersSaturday's Guardian reported that Lord Mandelson has warned EU governments against a protectionist "race for subsidies" in their efforts to bail out car companies.
European Commissioner Gunter Verheugen has said that European governments should take co-ordinated action to help their national car industries, according to European Voice, stressing that the Commission would apply strict rules on any state aid that national governments might provide to car-makers. According to the WSJ, the EU will pay attention to the aid the U.S. government gives Detroit, quoting Verheugen saying: "Whatever the U.S. does, they will have to respect WTO rules."

The Mail on Sunday reported that car owners may be paid £1,000 to scrap their old car if they buy a new 'greener' vehicle under plans being promoted by EU Industry Commissioner Günter Verheugen.
Guardian European Voice WSJ Le Monde

In an interview with the Sunday Express Shadow Foreign Secretary William Hague attacked Gordon Brown for being "scared" of voters: "Gordon Brown is more than risk averse, he's scared. He's scared of the voters. He is the man who hasn't held the referendum he promised on Europe, didn't hold the general election at a time when he could have justified it as the new Prime Minister in 2007 and dare not hold the election now."
No link

In the Sunday Telegraph, Christopher Booker looked at how EU quotas and the Common Fisheries Policy have created a "disaster" for fishermen who have to throw saleable dead fish back to the sea.
Telegraph: Booker EU Referendum blog

Open Europe's Pieter Cleppe was quoted by Czech daily DNES in a story about the campaign to end the two-seat "travelling circus" of the European Parliament.
DNES

UK

Ken Clarke returns to Conservative front bench
It is widely reported that Ken Clarke will return to the Conservative front bench today as the Shadow Business Secretary. According to the Times, the Government will seek to find divisions between Clarke and his colleagues over Europe in the run-up to European elections in June.

According to Nick Robinson's BBC blog, Clarke's support for Britain scrapping the pound and joining the Euro - have "alienated him from the mainstream of his party". Robinson quotes Conservative party sources who said, "no-one wants Ken to undergo a false conversion on Europe...the party has a settled view on Europe and he won't try to change it".
FT Express Mail Mirror Sun Telegraph BBC: Robinson blog Mail: Brogan blog Times Independent Independent: Leader Guardian Guardian 2 Coffee House blog Iain Dale's diary Labourlist Sunday Times: Ivens Independent: Watkins