Open Europe press summary: 26 January 2009

Europe

Clarke: Worst time for the UK to join euro
PA reports that newly appointed Shadow Business Secretary Ken Clarke has sought to play down his disagreements with David Cameron over the Conservatives' EU policies. Clarke told the BBC's Andrew Marr show that: "Of course, everyone knows that I don't agree with David and my colleagues on Europe entirely and you can easily look at speeches where I've been at odds with them. But compared with recent years, I do think the euro-scepticism settled policy of the party is moderate. I don't think anybody's going to change it and I'm not going to try to change it; I accept collective responsibility on the front bench and I accept that David is going to direct policy on euro-sceptic lines." He said that if the public found that he could not work with Cameron and shadow chancellor George Osborne due to "past disagreements over European issues that aren't actually topical at the moment", they would think the party had "lost all sense of proportion".

Clarke later said it would be the "worst time" for Britain to consider joining the Euro. "Politically, it's not going to be on the agenda in this country for many years. It's not real and it's probably not going to be a political issue in this country during my political lifetime," he said.

The Times notes that Ken Clarke also told the show that he did not think Britain could go bankrupt: "I don't think it is a realistic possibility although I am very gloomy myself, but it's not going to be calamitous," he said. According to the article, this seemed to contradict what David Cameron said on Friday, when he warned that Britain was running the risk of having to go to the IMF for loans.

Writing in the Independent the leader of the Liberal Democrats, Nick Clegg, argues that "The euro should never be introduced in Britain without public consent confirmed in a referendum", but that Britain must be ready to "think anew" about answers to the current financial crisis.
Independent: Clegg Times Mail FT Sun Express Telegraph

EU Commission calculates the cost of combating climate change;
UK's climate envoy calls on the Government to subsidise renewable energy projects
The FT reports on a draft Commission document, which says that containing global warming will require an additional 175bn euros in annual investment by 2020. The Commission paper, which says much of the investment will have to be borne by the developed world, proposes raising those funds by requiring developed nations to pay for their annual carbon emissions, and levying taxes on aviation and maritime transportation. It also suggests that the EU should seek to expand its emissions trading system (ETS) into a global carbon market.

The final paper will be released by the Commission on Wednesday, setting out the EU's position ahead of world climate talks in Copenhagen this December. The FT notes that EU leaders endorsed a plan in December to reduce the 27-nation bloc's greenhouse gas emissions by 20 percent from 1990 levels by 2020. In the Copenhagen talks, member states and other developed countries will be urged to increase that figure to 30 percent.

The Telegraph reports that the UK's largest energy analysts, Inenco, have forecast that wholesale electricity prices will be forced up by 20 percent under the EU's ETS. On Saturday the EUReferendum blog noted that German Economy Minister Michael Glos was expressing "serious misgivings" about the ETS last week, complaining that it could cost jobs if the next phase went ahead in its current form. It also noted that the German energy giant RWE has decided to build no more new power plants in western Europe, as the ETS has rendered new projects "unprofitable".

Meanwhile, the front page of the FT notes that the economics of the world's biggest offshore wind-farm project are "on a knife-edge". The Chief Executive of Eon UK said the viability of its London Array project, a planned 1,000MW wind farm in the Thames estuary, had been called into question by the falling prices of oil, gas and carbon dioxide emissions permits.

The paper notes that the UK Government's ambitions for renewable energy are "likely to intensify pressure from the industry for a more generous subsidy scheme. A huge expansion of renewable energy is vital to plans for hitting EU targets for greenhouse gas emissions."

The Guardian notes that the Government's climate change envoy, Elliot Morley MP, has said that energy companies should be able to tap the billions of pounds of state funding being used to bail out the banks in order to create a post-recession low-carbon economy.
EU Referendum blog FT AFP EurActiv Guardian FT

Sarkozy: "We will have to struggle to win in Ireland"
In a speech to the French UMP party over the weekend, French President Nicolas Sarkozy said, "When populations say 'no', we do not have the right to argue that they are wrong...Within this 'no', there was anxiety, there was disappointment about a Europe that had become, in the eyes of Europeans, indifferent to the difficulties of their lives and which promoted values that were not theirs."

"We will have to struggle to win in Ireland. I know that I had caused some controversy when I said to our Irish friends that they would need to re-vote, but I would say to them, in the same way, that it was the whole of Europe that came to their rescue when their banks were on their knees because of the financial crisis.

"After the six months of the French Presidency of the EU, I am convinced that was has been missing in Europe is a real objective. Why would you want twenty-seven governments to renounce defending some of their national interests if we do not propose an objective that transcends these national interests?"

Meanwhile, Le Monde notes that Sarkozy has spoken about the reinvigoration of the EU under his presidency, with an EU that protects and reassures its citizens during these troubled times. According to Michel Barnier, former French Foreign Minister and of the same party as Mr Sarkozy, "Europe and the Euro have now become, according to polls, words that reassure people."
Le Monde UMP

Münchau: Common eurozone debt market "could bring substantial benefits"
Wolfgang Munchau writes in the FT that a common eurozone market for government debt "could bring substantial financial and economic benefits." He also argues that joint issuance of bonds would not constitute an infringement of the Maastricht Treaty's no bail-out clause because there could be divided liabilities, but "common issuance cannot be a quick fix for rising spreads."

Jean Pisani-Ferry, Director of Brussels-based think-tank Bruegel, writes in European Voice that if a serious crisis were to erupt in the economy of a member state, the EU could turn to the IMF but it would be "a signal that Europe is economically impotent and politically weak." He goes on to say that, "The problem is that the euro-area was built for calm waters and has relied on the power of preventive mechanisms to ward off crises."

The WSJ writes that "It is no longer fanciful to imagine that a euro-zone member might struggle to sell its bonds."
FT: Leader FT: Münchau European Voice: Pisani-Ferry EU Referendum blog WSJ WSJ 2

Spanish daily Publico today covers Open Europe's recent publication: "The hard sell: EU communication policy and the campaign for hearts and minds."
Open Europe is holding a debate entitled "EU communication policy: biased propaganda?", on Tuesday 27 January 2009 from 7 until 8.30 pm, in the offices of Libertas, Avenue de Cortenbergh 71, 1000 Brussels.

Places are limited. If you would like to attend, please RSVP to Pieter Cleppe at pieter@openeurope.org.uk or on 0032 477 68 46 08
Publico Open Europe research: The hard sell: EU communication policy and the campaign for hearts and minds Open Europe events

Lisbon Treaty to face new challenge with Constitutional Court in the Czech RepublicPrague Daily Monitor reports that several senators of the ruling Civic Democratic Party (ODS) plan to challenge the Lisbon Treaty again in the Czech Constitutional Court. The Chairwoman of the Constitutional Commission in the Senate, Jirina Rippelova said that a complaint against the Lisbon Treaty can be lodged only after the Treaty is approved by both houses of parliament. She noted that either 17 senators or 41 deputies or the President are needed to lodge a complaint, saying that she expects Czech President Vaclav Klaus to "definitely do so." Today, the Czech President will present a book he has written which is critical of the Lisbon Treaty, reports ABC Prague.
The News of the World reported on Vaclav Klaus' vow that during its EU Presidency "The Czech government will not lead Europe to an ever-closer union". Open Europe Director Lorraine Mullally was quoted welcoming the comments and saying "Out of 27 EU leaders he was the only one to respect the Irish 'no' vote. Gordon Brown and the others could do with taking a leaf out of his book."
Prague Daily Monitor Prague Daily Monitor 2 ABC Prague Eurotopics Respekt

UK taxpayers could be called on to bailout struggling EU states
The Mail on Sunday reported that the UK could be forced to contribute money to rescue countries in economic crisis, because of a clause in the EU treaties which gives the EU Commission the power to propose bailing out a state in "severe difficulties." Such help could be agreed by a majority vote meaning Britain would not have a veto. According to the paper "Britain disliked the proposal when it came up for negotiation and the Conservatives opposed it, but the Government gave way and agreed."
Financial Advice

On her blog, Mary Ellen Synon, argues that former Spanish PM José Maria Aznar is too honest to be a politician in Brussels for admitting, "I do not think it is a good idea to make a country re-vote [on the Lisbon Treaty] if it has said No until it says Yes."
Mail: Synon blog

The Mail on Sunday reported that more than two dozen civil servants enjoyed a £10,000 junket when last week's meeting of Permanent Secretaries was moved from Whitehall to Brussels. A Cabinet spokesperson said: "It is more important than ever that we work closely with our EU partners... This is a valuable opportunity for us to influence the EU agenda."
No link

Polish Foreign Minister: EU and Nato suffering from enlargement fatigue
The Telegraph reports that Polish Foreign Minister Radek Sikorski has said that Nato is suffering from 'enlargement fatigue' and has no will to admit Georgia or Ukraine. Asked whether the will to admit Ukraine and Georgia existed, he replied: "Not at the moment. At the moment, there's a will to encourage them to reform themselves. But I believe all of our institutions, both the EU and Nato, suffer from enlargement fatigue."
Telegraph Telegraph: Leader

German Foreign Minister to present proposal for keeping cease-fire in Gaza
The IHT reports that in a desire to see the EU play a more active role in the Middle East, German Foreign Minister Frank-Walter Steinmeier is to present proposals to strengthen the cease-fire in Gaza to his EU counterparts. One of the points in his proposal is to seek "a possible EU role with regard to the opening of Gaza-Israel crossing points."
IHT EurActiv Deutsche Welle

Icelandic economist's warning about joining the EU as country's government crisis grows
In an interview reported by Libération, Gunnar Haraldsson, Director of the Institute of Economic Studies in Iceland, warned that "Entering the EU would notably damage our fishing industry, which is one of the most profitable in the world." Meanwhile, Iceland's Commerce Minister has resigned amid rolling protests in recent weeks demanding the resignation of the government because of its handling of the economic crisis. The Icelandic Prime Minister has called early elections, saying he will step down in May.
Libération EUobserver WSJ

EU to create 185m euro milk dune
The Irish Sunday Independent reported that the EU is going to spend 69 million euros buying up 30,000 tonnes of butter to throw into storage. It will also spend more than 185 million euros to create a milk dune by buying up 109,000 tonnes of milk powder. The paper reported, "Figures from Europe show that it still maintains a ridiculously large 717,810 tonnes of cereal and grain, 41,442 tonnes of sugar and 2.3 million hectolitres of ghastly cheap wine."
Irish Independent

EU removes Iranian Mujahideen Movement from its terror list
The European Court of Justice has ruled that the People's Mujahideen Movement in Iran should be struck off the EU's list of terrorist organisations. A number of EU countries are, however, thinking of contesting the ruling. Iran has also objected to the removal of this organisation from the EU's list, since it is an opponent of the Iranian theocratic regime.
Bloomberg EUobserver Le Monde European Voice

EU hesitant to accept former Guantanamo prisoners
On his BBC blog, Mark Mardell writes that the first test of European leaders' support for President Obama may come today when EU foreign ministers meet and discuss the Portuguese proposal to house some of the Guantanamo Bay prisoners who cannot return home when the prison closes. Britain is so far the only EU country to have taken former detainees.

Le Figaro reports that the EU has not yet presented a common voice on what to do with former prisoners and PA quotes UK Labour MEP and human rights campaigner Richard Howitt arguing that, "There is clear precedent for a common EU stand on taking in non-nationals, and this is the time for Europe again to demonstrate its unity as well as its commitment."
Guardian European Voice BBC: Mardell blog Belga Welt Le Figaro

Details of MEPs' attendance in Parliamentary meetings are to be published on the European Parliament's website before the European elections in June, according to EurActiv.
EurActiv

UK Defence Secretary John Hutton has warned European countries to "step up to the plate" in Afghanistan. He said: "It is a fundamental test of Nato's resolve. We must prevail. It's time to stand up and be counted. European members of Nato have not done enough."
News of the World

The European Commission has suggested forming a special group to help solve the lengthy Croatia-Slovenia border dispute.
EUobserver Eurotopics

The Bulgarian parliament has given the government the go-ahead to start talks with the European Commission to restart two reactors at its nuclear power plant in Kozloduy.
European Voice

UK

A ComRes survey for the Independent puts the Conservatives on 43% (up four points on last month), Labour on 28% (down six), and the Liberal Democrats on 16% (unchanged).
Independent Independent: Leader

In the Sunday Express Neil Hamilton argued that Ken Clarke is "hopeless" on the gut issues that matter in politics.
Sunday Express

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