Open Europe press summary: 8 January 2009

Europe

Czechs plan for second Irish No vote;
French Agriculture Minister uses award to MEP to rebuke Irish farmers
EUobserver reports that the Czech EU Presidency is preparing a contingency plan on the size of the Commission in the event of a second Irish No vote to Lisbon. As part of a deal reached in December the Irish government sought assurances that each member state would retain a Commissioner in return for agreeing to hold another referendum.

However, if the Irish were to vote No again the Nice Treaty will remain in force and a quick solution to the commissioner issue would have to be found so that the next EU Commission, which ends its term in autumn, can be put in place. Under the Nice Treaty the number of Commissioners has to be at least one less than the number of member states. The article notes that one solution under consideration would be for all member states to maintain a Commissioner except for the country that holds the position of EU foreign policy chief.

The Irish Times quotes Irish European Affairs Minister Dick Roche saying, "I've been making the point to colleagues let's take this one step at a time. There is only one plan at the moment and that is the one agreed at the December EU summit." However, the paper notes that Prague believes it cannot wait until after any second vote on Lisbon is held before preparing a viable contingency plan on how the next Commission will look.

In the Guardian, Timothy Garton Ash rejects the argument that the recent energy crisis and conflict in the Middle East confirm the need for the Lisbon Treaty. He writes, "Rather, we should be thinking what institutional changes really are essential to having a more effective external policy, and how these can be achieved under, or added to, the existing treaties that make up the EU's cumulative constitution."

The FT's Brussels blog notes that speaking at the inauguration of the Czech Presidency, Czech President Vaclav Klaus made clear "his disdain for the EU's Lisbon treaty on institutional reform".

Meanwhile, the Irish Independent reports that French Agriculture Minister Michel Barnier last night awarded Irish MEP Liam Aylward a French government award for his efforts in food and agriculture. The paper notes however that Barnier used the opportunity to rebuke Irish farming associations for failing to deliver rural constituencies in the Lisbon referendum. "The whole of Europe is now dependent on a decision in Ireland," Barnier said.
Irish Times Guardian-Garton Ash EUobserver Irish Times 2 Irish Independent Telegraph: Hannan blog FT Brussels blog

Russia and Ukraine agree to neutral observers to monitor gas pipeline;
Barroso accuses countries of holding EU gas supply "hostage"
Russia cut off all gas supplies through Ukraine yesterday and governments across Europe declared states of emergency, reports the Times. The Slovakian government followed a move by the Bulgarian government earlier in the week by announcing it may have to reopen one of its Soviet-era nuclear plants.

The Times goes on to say that the Commission President José Manuel Barroso has accused Russia and Ukraine of holding the EU's energy supply "hostage" and the Independent writes that Barroso has warned that the dispute could damage Ukraine's aspirations for closer ties with the EU. He said, "Ukraine says it wants to be closer to the EU...If it wants to be closer, it should not create any problems when it comes to EU energy supplies."

The Guardian reports that Russia, Ukraine and the EU will hold top-level talks today in an attempt to resolve the dispute. The paper notes that Vladimir Putin and Ukrainian Prime Minister, Yulia Timoshenko, have agreed to allow neutral observers to monitor gas flows in the pipeline on both sides of the border, in a deal brokered by the Czech Presidency, Barroso and German Chancellor Angela Merkel.

According to the Telegraph, the EU yesterday issued a 24-hour ultimatum to Russia and Ukraine to restore gas supplies. Czech Prime Minister, Mirek Topolanek, said "Friday really seems to be a very critical day. We might be forced to resort to other forms of action".

The head of Gazprom and the Ukrainian state gas company Naftogaz met in Moscow last night in an attempt to reach an agreement over the gas prices Ukraine should pay Russia, reports the Telegraph.

Writing in the Times, Brownen Maddox suggests that the EU is unlikely to be able to stay silent any longer on the deliberate Russian threat to its energy supplies and Putin is likely to have united those who were once divided over him in Europe.
Times Times-Maddox WSJ WSJ 2 WSJ-Riley Irish Times Guardian Guardian 2 Independent EUobserver AFP Deutsche Welle IHT IHT: Elkind and Chow Irish Independent Mirror Telegraph FT European Voice BBC EurActiv Figaro

Israel agrees to "principles" of Franco-Egyptian ceasefire plan as fighting continues
French President Nicolas Sarkozy announced yesterday that Israel and the Palestinian Authority had accepted a joint Franco-Egyptian ceasefire plan, hailing the "step forward", EUobserver reports. However, fighting continued yesterday although Israel temporarily halted its military operations for three hours to facilitate "humanitarian corridors".

It subsequently appeared that Israel had only agreed to the "principles" behind the Franco-Egyptian proposal, with an Israeli spokesman saying that "The challenge now is to get the details to match the principles". Hamas governors of the Gaza Strip did not figure in Sarkozy's statement, it is reported. Details of the proposal remain unclear, but could include some language around a halt to the smuggling of weapons through the Egypt-Gaza border and an opening of border checkpoints between Gaza and Israel. Egyptian and Israeli senior officials are to meet today to further discuss the details. Separately, the Netherlands and Denmark have suggested that the EU organise a mission to monitor Gaza's southern border to prevent weapons smuggling.

In the Spectator, Fraser Nelson describes the EU response to the conflict in the Middle East as "a typical EU pantomime, demonstrating the futility of pretending 27 member states can have the same opinion about Israel, or any other thorny foreign policy question."

In the IHT Judy Dempsey notes, "No wonder the European Union is often ridiculed when it comes to dealing with a major international crisis. As Israel stepped up its ground offensive in Gaza and Hamas continued to fire rockets, two groups of top European politicians rushed - some would say belatedly - to the region."
Irish Times Guardian EUobserver IHT

Czech Presidency wants to finalise working time rules before June elections
The Czech EU Presidency is reportedly keen to complete a deal on the Working Time Directive during its term. European Voice notes that the Czechs are hoping to complete the 'conciliation phase' between the European Parliament and Council of Ministers before the Parliament breaks in May for the European elections.
European Voice

Barroso indicates economic stimulus package may not be enough
Ahead of a meeting on 20 January between EU finance ministers to discuss the economic recovery package, Commission President Jose Manuel Barroso has indicated that the 200bn euro stimulus package already agreed may not be enough, reports European Voice. He is quoted saying, "Will it be sufficient? We'll see...We can't exclude that there is a revision of the response."

The WSJ reports that Germany is considering an emergency fund of up to 100bn euros in loans for companies badly hit by the credit crunch, amid a rise in unemployment. The paper writes that it is not an assured deal, but it is an indication of German concern at the economic downturn.
European Voice European Voice WSJ WSJ-Editorial

Germany's bond sale failure signifies trouble ahead
The Irish Times reports that the Irish government's attempts to raise 3bn euros through the sale of five-year bonds has come under increased pressure after the German government only managed to sell two-thirds of its ten-year loans. Germany's failure to sell all of its debt is significant for all EU governments and the eurozone in particular because German government bonds are seen by investors as the "benchmark of the area", the WSJ notes.
WSJ FT

Evans-Pritchard: ECB says Britain not fit for Euro
Writing in the Telegraph Ambrose Evans-Pritchard notes that the European Central Bank has deemed Britain unfit for monetary union even if it wants to join, following the dramatic slide in sterling and the increases in the UK budget deficit. He argues that the "mounting anger in EU circles over the slide in sterling" is due to "a misunderstanding in Brussels, Paris, and Berlin over British motives".

Evans-Pritchard notes that "The Bank of England's main concern has been to cut interest rates to head off a housing collapse and to ease credit strains. While it views the pound's fall as an added bonus in battling slump, this is a secondary effect... Countries such France, Germany, and Italy tend to fret more about the exchange rate, and less about the interest rates. They have higher personal savings and lower debts so rate cuts are a mixed blessing for most people."

Writing in Prospect magazine's Brussels diary, Manneken Pis notes that the financial crisis' transformation of the continent's image of Gordon Brown has not extended to Luxembourg Prime Minister and President of the Eurogroup Jean-Claude Juncker. In a little-noticed-speech to the European Parliament Juncker said that given Britain's failure to heed advice over financial regulation, it was "not appropriate for them to pretend to lead others."
Telegraph: Evans-Pritchard

MEPs are expected to vote to approve tougher laws on pesticides next week
European Voice

The Independent reports that the EU is providing a £45,000 grant to part-fund a six-month series of French theatre productions to take place in Britain, called 'Paris Calling'. The programme includes new works that have never been staged in the UK and whose main purpose is to "push the boundaries of language and culture".
Independent

Leader of the Alliance of Liberals and Democrats for Europe, Graham Watson, has announced his intention to run for President of the EU Parliament - the first ever public campaign for the Presidency.
EurActiv

Slovenia says it may call for a referendum over Croatia's accession to the EU if a border dispute is not settled quickly enough.
EurActiv

An EU-funded satellite system linking two continents was hooked up yesterday. The system is meant to help police forces in several countries to track immigrant vessels heading for Europe.
Irish Times Guardian

The EU's Committee of European Securities Regulators has found that few companies are taking advantage of relaxed mark-to-market accounting rules that allow them to revise upward the value of complex investments, which depreciated during the financial crisis.
IHT

UK

The Independent reports that the Conservatives have said they would give the Foreign Office more influence over the direction of DFID through a new national security council.
Independent