Open Europe press summary: 22 January 2009

Europe

Government lobbies MEPs to water down EU directive on power plant emissions;
Proposed directive could shut down a quarter of UK's energy capacity in 2015
The Guardian reports that the UK Government is lobbying MEPs to water down proposed EU legislation to impose tough new emission limits on power plants. The Government fears that the legislation will threaten Britain's energy security and increase electricity prices. Tomorrow, the Environment Committee of the European Parliament will vote on more than 500 amendments tabled to the proposed new legislation - the Integrated Pollution Prevention and Control (IPPC) Directive. The paper notes that the proposed IPPC Directive would pose a serious threat to the construction of the Kingsnorth power station in Kent - the UK's first new coal plant for three decades.

The article notes that the IPPC Directive incorporates changes to current legislation such as the large combustion plant directive (LCPD) and lays out tighter limits, for example on sulphur dioxide emissions. A four-page leaked Whitehall briefing note prepared for MEPs says that the LCPD "raises potentially serious issues about security of electricity supply" and could even damage "moves to low-carbon electricity generation".

The LCPD allows power stations that are not fitted with equipment to remove sulphur dioxide and nitrogen oxide to operate for a limited period each day, but only until 2015. This affects around a seventh (10.5GW) of Britain's electricity generation capacity. Whitehall says that up to a further 8GW of generating capacity may close if the proposed tougher rules in the IPPC Directive are applied - meaning that in 2015 around a quarter of capacity would shut at the same time.

The Government is calling for greater flexibility to be introduced into the proposed IPPC Directive, so that UK electricity and gas supplies are not threatened. The paper notes that it has won some backing from other EU countries which would like the new law to take effect from 2020.
Guardian

EU's carbon trading scheme creates cash windfall for heavy industry
Reuters reports that European factories are cashing in on an unexpected benefit from falling output, selling surplus EU carbon emissions permits worth about 1 billion euros to raise funds on the carbon market. The ETS is meant to limit greenhouse gases by giving industry a fixed quota of carbon permits that can be traded, creating a 'carbon price'. The present surplus in permits has arisen from falling emissions caused by the recession. Heavy industries have been able to profit because, unlike other polluters, they get their quota for free rather than having to buy them at auction.

The EUReferendum blog notes that by selling off their surplus permits, heavy industry is "depressing the price of 'carbon' and completely defeating the whole object of the EU's scheme."

Meanwhile, European Voice reports that EU Environment Commissioner Stavros Dimas has said that the EU should seek to build a carbon market among developed countries by 2015 at the UN climate change conference in Copenhagen in December.
Reuters EU Referendum blog European Voice

Labour plays up Clarke's EU comments;
Caroline Flint: Cameron must choose between giving up policy on Europe or give up special relationship with the US
The FT reports that "Labour on Wednesday night attempted to make mischief with Ken Clarke's return to the Conservative frontbench" by seizing on remarks made by Clarke last month at a debate at Nottingham University. According to the publicservice.co.uk website, Clarke, addressing the Conservatives' policy on EU and UK-US relations, said, "A lot will depend on relations with Europe, because [President Barack] Obama doesn't want his strongest European ally led by a rightwing nationalist. He wants them to be a key player inside Europe, and he'll start looking at whoever is in Germany or France if we start being isolationist. I think the need to be working with Obama will influence my party on Europe. It is still firmly Eurosceptic but it's now moderate, harmless Euroscepticism. It's a bit silly sometimes, like which group do you join in the European parliament, but full-blooded stuff like renegotiating the treaty of accession is as dead as a dodo."

The BBC quotes Europe Minister Caroline Flint saying: "Ken Clarke is absolutely right to warn David Cameron that his European policy would only serve to isolate Britain from the US. It's a straightforward test for David Cameron: give up your policy on Europe, as Ken Clarke says, or give up the special relationship."

A Conservative Party spokesman said: "He was not referring to David Cameron but talking in entirely hypothetical terms - he has never and would never describe David Cameron in that way. This is no more than a desperate attempt by Labour to try to distract attention from their catastrophic handling of the economy. As far as the position on Europe is concerned, Ken's views are well known, but, as he said when he was appointed, he accepts that the Conservative Party has a settled view on European matters and he will not oppose the direction David Cameron will set on European policies in the future."

In a Spectator article looking at the Shadow Cabinet reshuffle, Fraser Nelson notes that "Much Tory policymaking is carried out in almost touching ignorance of the extent to which Brussels now ties the hands of British prime ministers".
Spectator: Nelson Times Sun Telegraph FT Mail BBC

Mary Ellen Synon: Top EU judge had no experience as a judge before he joined ECJ
On the Mail Online, Mary Ellen Synon looks at Tuesday's ruling by the European Court of Justice, which said that employees on long-term sick leave are entitled to paid holidays no matter how long they are off work. She notes that "Now any worker who is on extended sick leave - even for years - is entitled to holiday pay when he returns to his job, or even if he leaves his job and never returns to work." Open Europe is quoted saying the ruling "shows how once Britain has lost control over a policy area to the EU, the European court can really go to town with it."

The piece goes on to explore the role and powers of EU judges - noting that the President of the ECJ, Vassilios Skouris, is an academic who never worked as a judge until he was appointed to the ECJ in 1999. After just four years experience, he was made president of the court. Synon cites four other judges who were also never judges before they were appointed to the ECJ, and says, "what is even more striking is that, in going over the qualifications and experience of each of the judges, it appears not one of the 27 has ever run a business or worked in industry." She notes: "It is typical of the way in which all dissenting opinion is suppressed in EU institutions that we are not allowed to know whether yesterday's judgement was a split decision or unanimous."
Mail

Trichet plays down eurozone troubles;
Portugal becomes third eurozone member to have credit rating downgraded
European Central Bank President Jean-Claude Trichet yesterday rejected the idea that the eurozone was under threat of deflation and said "There is presently no threat of deflation . . . What we are currently witnessing is a process of disinflation, driven in particular by a sharp decline in commodity prices". However, he went on to say that "Of course in the financial markets banks have to determine their own level of risks...Governments remain responsible, they have to do all [that is] necessary to cope with the situation", reports the Irish Times.

Portugal became the third eurozone country this month to have its credit rating downgraded by the rating agency Standard and Poor's. The WSJ reports that, on the online betting site Intrade, gamblers are wagering that there is at least a 20% chance a country will announce it plans to exit the eurozone by the end of next year.

Eurointelligence reports that Greek bond spreads reached a record high yesterday.

Meanwhile, the French Finance Minister, Christine Lagarde, yesterday criticised the Bank of England for allowing sterling to fall to its lowest level since 1985, saying "its monetary policy and management of rates... have not been particularly efficient for supporting the currency", reports the Telegraph.
Telegraph FTD 1 FTD 2 Irish Times Irish Independent FT European Voice FTD 3 FT 2 Elsevier blog Eurointelligence WSJ

An article in Dutch magazine Elsevier looks extensively at Open Europe's recent publication on EU propaganda, citing the figure of 2.4 billion euros per year which the EU spends on selling itself.
Open Europe research

EU presses Livni to open Gaza
Israeli Foreign Minister Tzipi Livni visited Brussels last night with European Foreign Ministers keen to ask that Gaza be opened up. There was, however, sharp division over whether to blame Israel for its bombing of UN schools and other buildings during the war, according to EUobserver. Germany, Italy or Romania were against any motion to call for an investigation of alleged war crimes, whereas Belgium, Sweden, Greece or Ireland were demanding such an investigation within the week.
EU Observer Irish Times

European plans for a financial supervisory system hit snag over London
The FT reports that plans for a European financial supervisory system are running into problems on how to take account of the fact that Britain is not part of the eurozone. The article also reports that some national regulators are sceptical about ceding their powers to the European Central Bank. The panel drawing up the proposals, headed by former Banque de France Governor Jacques de Larosière, could therefore back alternative proposals, according to the paper.

A separate FT article reports that Jean-Claude Trichet yesterday said that he "stood ready" to take on responsibilities for supervision of European banks and that there would be a "great advantage" to using a clause in the Maastricht Treaty to grant the ECB powers to act as a bank supervisor, according to the FT.
FT FT 2

German daily Die Welt reports that the European Parliament has its own TV station, costing at least 24 million euros per year, and very few viewers.
Welt

Europe's divisions show as it welcomes Obama era
Le Monde writes that Europeans will need to show greater unity if the West is to remain an important pole in world politics with the Americans. The IHT notes that there is little sign of this however, as European countries have been unable to agree on a venue to host the first summit between European leaders and the new US President. While the Czechs wanted it hosted in Prague, as the seat of the current EU Presidency, some EU diplomats were wary of the EU-critical Czech President Vaclav Klaus and fearful of giving him too much influence at the summit.
Le Monde IHT BBC: Today programme

Croatia's EU accession threatened by border dispute
EUobserver reports that Croatia's on-going border dispute with Slovenia must be solved within the next few weeks or the country is unlikely to conclude EU talks by the end of 2009 as planned, the MEP in charge of the dossier has warned. Austrian MEP Hannes Swoboda told EUobserver that "in the official report we want to give a clear message that this is still possible," in reality this date is becoming increasingly "difficult to reach."
EUobserver

Hannan: proposed EU rules for recreational fishing will "ruin" skippers for a second time
On his blog, Dan Hannan notes that the EU's proposal to extend the Common Fisheries Policy is likely to "ruin" fishing boat owners for a second time: "The CFP put most of the skippers in my constituency out of business years ago. Some of them turned to tourism, making a new living by taking anglers out in their boats. Now, the CFP threatens to ruin them a second time, bringing to amateur fishermen the same destruction that it brought to professionals."
Telegraph: Hannan blog

Dutch PM Jan Peter Balkenende is being touted as the next President of the European Commission.
Elsevier

Businesses concerned over revision of ePrivacy Directive
Companies that operate online are pressing MEPs not to demand excessive burdens of data privacy in current discussions to revisions of the ePrivacy Directive, reports European Voice. They are concerned about the scope of the demands that might be made on them if they lose customers' data.
European Voice

EU Trade Commissioner Catherine Ashton is to make a four-day trip to the US to try to restart trade talks.
European Voice

Libertas leader Declan Ganley has recruited Czech MEP Vladimír %u017Delezný to set up a Libertas branch in the Czech Republic ahead of this year's EU elections.
Irish Times

Russia has said that the Nord Stream gas pipeline connecting Russia to Germany will be up and running by 2011.
EUobserver

UK

Government reverses plans to block details of MPs' expenses
The Times reports that the Government performed a U-turn yesterday and abandoned its plans for a vote to block the publication of receipts for MPs' expenses. The Guardian writes that a full breakdown of MPs' expenses since 2005 will now likely be published by July.
Times Independent Independent: Leader Guardian Telegraph FT Mail Mail: Oborne Mail: Brogan blog

In a letter to the FT, Anthony Bamford argues that the Environment Secretary, Hilary Benn, should make food self-sufficiency a priority.
FT