Open Europe press summary: 7 January 2009

Europe

Commission and Czech Presidency demand a resolution to gas crisis as eastern Europe's supply entirely cut off;
EU's Nabucco pipeline project faces "formidable" problems
The WSJ reports that the effects of the Ukraine-Russia gas dispute reached new heights yesterday as gas deliveries to a host of European countries were cut off entirely. The paper notes that as recently as Monday European officials had been reassuring their populations that the quarrel didn't pose a significant threat to consumers further downstream.

The Times notes that with the gas supply cut entirely to Bosnia, Bulgaria, Croatia, Greece, Hungary, Macedonia, Romania, Serbia and Turkey, the EU broke from its diplomatic approach to demand a resolution to the crisis. A joint statement from the Commission and the Czech EU Presidency read, "This is completely unacceptable. The Czech EU Presidency and the European Commission demand that gas supplies be immediately restored to the EU and that the two parties resume at once negotiations with a view to a definitive settlement of their bilateral commercial dispute."

A leader in the Independent argues that the EU must diversify its energy supply to avoid a repeat of the crisis. In the Times Roger Boyes writes that the EU has not yet devised an alternative energy strategy because "Western Europeans, and in particular the Germans, have bought into the myth that Gazprom is a normal commercial concern struggling to succeed in the marketplace." Boyes argues that the EU should consider the state-owned Russian energy company as a "political weapon", principally used to achieve a key aim of the Kremlin - preventing further EU and Nato expansion to the east.

A leader in the FT argues that the EU "must develop greater solidarity in energy issues. As long as the EU's big countries, led by Germany, do cosy bilateral deals with Russia, the smaller member states in eastern Europe, which are even more dependent on Gazprom, will feel exposed."

The BBC reports that Bulgaria's President Georgi Purvanov has suggested that a nuclear reactor deemed unsafe by the EU could be restarted to help cover gas shortages.

Meanwhile, the Guardian reports that the EU's plan for an alternative pipeline, the Nabucco pipeline, faces "formidable" problems. "This is an attempt at reverse engineering in pipeline development," said a senior industry source. "Usually you find the resource and then you build a pipeline. With Nabucco it's the other way round." The EU faces a bidding war with Gazprom to obtain the most immediate gas supplies while experts warn that it will be 20 years before sufficient gas can be pumped from other sources to evade Gazprom's control.
WSJ IHT IHT 2 Times Times-Boyes Independent Independent-Leader Guardian Guardian-Almond Irish Times Irish Times: Whelan Irish Times: Leader Express FT FT 2 FT 3 FT: Leader Mirror European Voice BBC Guardian 2 IHT 3 BBC 2 Le Monde

Sarkozy accused of upstaging EU delegation in Gaza;
Clegg calls for arms embargo on Israel
French President Nicolas Sarkozy claimed last night that a ceasefire in the Gaza Strip was "not far off", reports the Irish Times. However, an opinion piece by Nidra Poller in the WSJ argues that Sarkozy's visit is "upstaging an official EU delegation".

The FT Brussels blog questions whether Sarkozy's solo diplomatic effort is the result of a sincere belief that the EU needs "strong, energetic, high-profile leadership", or whether it is because he "simply couldn't bring himself to move out of the spotlight", following the end of the French Presidency on 31 December. The article argues that not only will Sarkozy's efforts "ruffle" the Czech Presidency's feathers but also those of Javier Solana and Benita Ferrero-Waldner, the EU's Foreign Policy Chief and External Relations Commissioner, who may now struggle to appear credible.

In a comment piece in the FT, Quentin Peel writes that the gas crisis and situation in Gaza have provided a quick lesson for the Czech Republic that the EU Presidency has "everything to do with uncomfortable crisis management." Peel goes on to say a real challenge for Czech PM Mirek Topolanek will be to "forge a common European front on foreign policy", with Sakrozy's Middle East initiative presenting a danger that "Europe's efforts will be confused and divided".

Meanwhile, in an article in the Guardian Liberal Democrat Leader Nick Clegg has called for a British arms embargo on Israel and accused the EU of "clumsy decision-making and confused messages."
Guardian Guardian-Clegg WSJ-Poller Irish Times FT: Brussels Blog FT: Peel

Klaus calls for repeal of environmental and labour laws;
Topolanek: deal will have to be done on Lisbon Treaty
In an article in the FT, Czech President Vaclav Klaus has stated that the Czech Presidency of the EU will reject "counterproductive" financial regulation during the financial crisis, and goes on to say that the Czech Presidency will "hopefully-not lead Europe to an ever closer union." He also writes that the best thing to do now would be to temporarily "weaken, if not repeal, various labour, environmental...and other 'standards'". He goes on to say, "The Czechs feel that freedom and prosperity are much more endangered than the climate."

Meanwhile, in an interview cited in Prague Monitor Czech PM Mirek Topolánek said that he thought that a deal would need to be done between the two chambers of parliament to pass the Lisbon Treaty. He said it was unlikely that the Senate would pass the Treaty unless the lower chamber passed the planned deployment of a US missile defence shield in eastern Europe: "I do not think the Lisbon Treaty could go through the Senate - given the opinions of ODS Senators - unless the Chamber of Deputies ratifies the radar. But I may be wrong."
Prague Monitor FT FT: Klaus

European Commission paper warns of growing tensions in eurozone
FT Deutschland has an exclusive report on a confidential European Commission paper prepared for the EU Finance Ministers meeting. The paper shows how growing differences in competitiveness among the different eurozone-member states could provoke dangerous tensions in the currency union. As the only big economy in the eurozone, Germany has improved its competitiveness (to pre-unification levels), while Italy and Spain have suffered a massive loss in competitiveness.

The paper also says that the Euro hasn't led to a coordinated economic policy, leading European Commissioner Joaquín Almunia to plead for "stronger coordination of economic policies".
FTD

Polish PM rejects need for vote on Euro
The Irish Times reports that Polish PM Donald Tusk has said that he sees no reason why his country should hold a referendum on joining the Euro, adding that "A referendum on the euro took place together with the EU accession one." The leader of the Polish Opposition, Jaroslaw Kaczynski, has criticised the remarks, accusing Mr Tusk of wanting to "take decisions crucial for Polish society above the heads of that society".
Irish Times

Environment Secretary describes EU food labeling rules as "nonsense"
The Telegraph today reports on Environment Secretary Hilary Benn's comments on European legislation that allows food labels to attribute the country of origin as the place the product underwent its last significant process. Benn said that, "A pork pie made in Britain from Danish pork can legitimately be labeled as a British pork pie. That's a nonsense, and it needs to change."
Telegraph

Not enough MEPs to support "one seat" campaign
A major campaign which calls for an end to having two official seats for the European Parliament appears doomed after failing to receive a minimum number of MEPs' signatures, The Parliament reports. Only 235 MEPs have signed a written declaration calling for an end to the so-called "travelling circus" between Brussels and Strasbourg which costs 203 million euros per year. As this is well short of the 393 MEPs needed to secure a majority, German ALDE member Alexander Alvaro accused those colleagues who privately endorse the one-seat campaign but have yet to sign the declaration of "hypocrisy". "They should stand up and be counted," he said.The Parliament Open Europe blog

Open Europe's research on the EU's communication policy continued to receive coverage across Europe, on Hungarian news site Penzcentrum and the Competitive Enterprise Institute Blog.
Open Market Penzcentrum The hard sell: EU communication policy and the campaign for hearts and minds OE press release

Germany to further loosen budget, raising fears of breaching stability pact
Der Spiegel reports that in Germany, the SPD has agreed on lowering taxes, after initial insistence on budgetary orthodoxy, which now opens the way for a second stimulus package. However warnings that the package may breach the EU stability and growth budgetary limits remain, with CDU economic expert Steffen Kampeter saying that "the Maastricht Treaty is not a technical matter", adding that "it would be a wrong signal when Germany would again question the stability pact" and "this concerns the stability of the Euro". Meanwhile, FTD Deutschland reports that the German government is planning to set up a 100bn euro fund, to be decided as early as Monday, alongside with the second stimulus package, to rescue industrial conglomerates.
Spiegel Netzeitung FTD

The European Commission is debating what steps to take after it failed to get a commitment from the $58 trillion credit derivatives industry to use a central clearing house for credit default swaps.
WSJ IHT FT

Prosecutors drop 5-year old case against Hans-Martin Tillack
The FT and European Voice report that Belgian authorities yesterday formally ended proceedings against Hans-Martin Tillack, a former Brussels-based journalist who published reports alleging EU fraud. His office was raided in 2002 by police on request of the European Commission, following a dossier drawn up by the European Commission's anti-fraud unit OLAF. Aidan White, Secretary-General of the European Federation of Journalists (EIF) described the investigation as a "tawdry affair" in which justice had been denied. He added that the allegations made by the Commission were "clearly an attempt to discredit [Tillack], his character and his journalism".
FT European Voice

Incandescent bulbs begin to be phased out
The front page of the Mail reports that shops in Britain have already begun to run out of incandescent light bulbs ahead of the phasing out of the old bulbs following an EU agreement in 2007. The paper writes that retailers stopped replenishing stocks from the beginning of the year under a "voluntary" Government phasing-out scheme. Christopher Booker in the Mail writes that, although an EU-wide ban will not be in place until 2016, Britain will ban the old light bulbs by 2012.
Mail Mail: Booker

An opinion piece in the IHT by two former US Ambassadors to Central Asia has warned that Russia's coercion of its smaller neighbours is a flashpoint for the US and Europe, and that they must be ready to enhance the security of Russia's neighbours.
IHT-Corboy, Courtney and Yalowitz

Sean O'Grady, in the Independent writes that he is glad Britain is not in the Euro, which has been "designed without an emergency door", and the fact that Britain can retain the flexibility of a floating currency.
Independent-O'Grady