Open Europe press summary: 11 February 2009

Europe

German Constitutional Court: Lisbon Treaty is unreadable and "threat to freedom"
The German Constitutional Court yesterday held its first day of hearings over whether the Lisbon Treaty violates the German Constitution. According to EUobserver, four out of eight judges expressed reservations about the Treaty.

The Irish Times notes that Judge Herbert Landau said new EU powers in criminal justice affected "core issues" of German legislative authority. "These are issues affecting the shared values of a people," he said.

According to EUobserver, Judge Udo Di Fabio, who will deliver the judgement on the Treaty, asked whether the transferral of powers to the EU really means more freedom for EU citizens, asking "Is the idea of going ever more in this direction not a threat to freedom?" Judge Rudolf Mellinghoff asked whether the Treaty was already "in an extensive way" being applied when it comes to the area of criminal sanctions in environment issues.

All judges agreed that the Treaty was very hard to read. "Less-than-clear passages from the treaty were read out aloud, guaranteeing a laugh", reports EUobserver.

Suedeutsche Zeitung notes that the Court may ask for a referendum if it finds that the Treaty detrimentally affects the German Constitution. The paper notes that "if the judges intervene...it will be because important transfer of powers to the EU is not followed by a corresponding increase in democracy. Europe suffers from lack of democracy".
Sueddeutsche FTD EUobserver Irish Times BBC

Fire Chief: Losing opt-out from the EU's 48-hour week will make it "impossible" to guarantee emergency response
The Inverness Courier reports that fire safety in the Scottish Highlands could be seriously jeopardised if the UK loses its opt-out from the EU's 48-hour working week, currently being negotiated in Brussels, according to the region's Fire Chief.

Fire Chief Brian Murray, who also pointed out that the Highlands and Islands Fire and Rescue Service covered one-sixth of the UK, said, "We are very concerned about the potential consequences of losing the opt-out from the European Working Time Directive. As the impact of the directive would severely restrict the availability of retained duty staff, it would make it virtually impossible to guarantee an emergency response."

Secretary of State for Scotland Jim Murphy has said he is aware of the Fire Service's concerns. "One of our top objectives is to ensure we get a resolution working with the UK government and colleagues in Brussels," he said. The Government has said it wants to keep the UK's opt-out and is currently in so-called 'conciliation' talks with representatives of the European Commission and the European Parliament over the issue.

Meanwhile, in an article on the NeBusiness website, Steven Duncan, a human resources consultant, also argues that the UK must retain the opt-out. He cites Open Europe's estimate that losing the opt-out could cost the UK economy between £47.4bn and £66.45bn by 2020. He argues that, "Many companies take the view that it is more cost effective to employ a core number of staff and to balance out the working week's peaks and troughs by asking people to be flexible when it comes to overtime or reducing their hours. This ready supply of additional hours can be turned on and off like a tap and makes the company far more responsive to customer demands and short notice requirements."

He adds that, "Moreover, if somebody loses their job, why should Brussels stop them from working overtime to support their family? Surely, such an approach can only be unfair, unproductive and potentially socially divisive?"
NeBusiness Inverness Courier Open Europe research

ECJ rules in favour of QMV for data retention rules
The European Court of Justice has ruled that the Data Retention Directive, requiring telecoms operators across the EU to keep phone and internet data for up to two years, is a single market rather than a justice and home affairs issue, reports the Irish Times. The Directive was introduced to help member states fight terrorism and serious crime. Placing the law under single market provisions means that amendments will be decided by qualified majority voting rather than unanimity. The Irish government, supported by Slovakia, had argued that the data retention law had not been adopted on an appropriate legal basis.
Irish Independent Svenska Dagbladet

EU finance ministers agree initial guidelines on 'bad' banks;
Secret Commission paper: Attempts to buy toxic assets could plunge the EU into deeper crisis
The WSJ reports that EU Finance Ministers yesterday agreed to guidelines for handling 'bad' assets on banks' balance sheets, amid concerns of economic nationalism sparked by the global financial crisis. The range of remedies includes creating a so-called bad bank or series of bad banks to hold troubled assets. The guidelines call for a "correct and consistent approach of valuation" for these assets and "flexibility concerning the choice of assets selected," the Finance Ministers said.

EUobserver reports that the European Commission is to present further guidelines in the next two weeks on how to value such assets, many of which are now deemed worthless at current market prices.

On his Telegraph blog Bruno Waterfield writes that, "The figures, contained in a secret European Commission paper, are startling. The dodgy financial packages are estimated to total £16.3 trillion in banks across the EU."

He notes that the "impaired assets' may amount to an astonishing 44 per cent of EU bank balance sheets" and that "the secret 17 page paper warned that government attempts to buy up or underwrite the assets could plunge the EU into a deeper crisis, one that threatens the Union."

Also in the Telegraph, Ambrose Evans-Pritchard notes that proposals for some form of 'debt-agency' or mechanism for the EU to raise bonds, is "a move seen by diplomats as a ploy to ambush Germany into accepting shared responsibility for EU debts - anathema to Berlin."
Telegraph: Evans-Pritchard WSJ Irish Independent European Voice EurActiv Eurointelligence EUobserver DW Telegraph: Waterfield blog

Upcoming EU summit showing signs of disunity over French car industry bailout;
EU imposes tariffs on Chinese steel
There is widespread coverage of the upcoming summit announced by Czech PM Mirek Topolanek on Monday, on the economic crisis and fears of rising protectionism. On his BBC blog, Mark Mardell writes that an insider said of the upcoming EU summit, "essentially it's to tell Sarkozy to shut up". The Independent reports that the Czech PM yesterday referred to the upcoming EU summit as a "shoot-out", and that the target may be French President Nicolas Sarkozy. He is quoted saying, "If the result of our shootout is an agreement... that we will not be using this type of media competition and that we will halt protectionism, then this shootout will have served its purpose."

French Economic Minister Christine Lagarde has asked for an EU-wide response to the car industry's difficulties, after showing concern at the EU's criticism of the French plans for reviving French carmakers, Les Echos notes. The WSJ reports that the EU Competition Commissioner Neelie Kroes yesterday wrote to the French government seeking clarification on the bailout package citing concerns about the companies' pledge to protect employment in France.

The WSJ reports that the EU has imposed temporary anti-dumping tariffs of up to 25% on imports of Chinese steel wire rods. The tariffs will remain in place for six months until the Commission decides whether or not to impose definitive duties for five years.
Les Echos Le Monde FT: Leader European Voice WSJ WSJ: Editorial Le Monde Libération Coulisses de Bruxelles Independent BBC BBC: Mardell blog Times European Voice WSJ: Lamy WSJ 2 Guardian FTD EUobserver

EU launches social "circus" campaign
The European Commission has launched what it calls an "EU circus campaign" to "raise awareness of social rights". A press release reads: "When it comes to social protection, the EU has some of the strongest laws on the books. But many Europeans don't know their rights and so don't exercise them. For example, women continue to earn 15% less than men and are less likely to have top jobs. The EU is striving to close this gender gap, however, people must be made aware of their rights first. The EU has therefore launched a campaign to raise awareness of social rights. During 2009, cities across Europe will be staging circus-themed events about social rights. The campaign is inspired by "social circus", an educational movement that uses circus arts as a teaching tool to help troubled youths. For example, the theatre company involved in the event in Lisbon works with school dropouts."
OE blog Commission website

Senior official: EU regional policy more trouble than it is worth
In a debate in the House of Lords on the EU's regional policy, Lord Trimble, former First Minister in Northern Ireland, said: "When I was talking about regional policy with a senior official from our finance department, he observed that regional policy was sometimes more trouble than it was worth. That might seem to be a strange comment, but it is not....capital expenditure programmes did not prioritise, and were not based solely on, what the department thought were the key priorities for Northern Ireland." Lord Davies, Government Minister of State for BERR and the Foreign Office, added that "structural funds in the richer member states should be phased out".
They Work For You

ECJ rules against France in labour freedom case
The European Court of Justice yesterday ruled against Paris in a case where lawyers, medics and dentists from Bulgaria and Romania were unlawfully denied access to the French labour market. According to EurActiv, the court ruled that France had failed to transpose elements of EU legislation regarding the two latest EU newcomers, Bulgaria and Romania.
EurActiv

Agence Europe reports that the European Parliament's Constitutional Affairs Committee is likely to adopt a report by former Belgian Prime Minister Jean-Luc Dehaene which welcomes the institutional changes proposed by the Lisbon Treaty and proposes that the European Parliament be involved in the appointment of the European Commission's next President, as if the Lisbon Treaty were in force.
European Parliament

Fresh protests expected over use of foreign workers
The Guardian reports that up to 1,000 protesters are expected to start fresh protests over the use of foreign sub-contractors today in Staythorpe in Nottinghamshire and the Isle of Grain in Kent. PA reports that trade unions Unite and the GMB claimed that skilled UK workers were being denied the chance to apply for work on contracts at the two sites.
Guardian

UK cities sign up to EU green pledge
The BBC reports that more than 350 cities across Europe - including 15 in the UK - have signed a "covenant" committing them to cuts of more than 20% in CO2 emissions by 2020. PA reports that UK Europe Minister Caroline Flint said at the event at the Europe Parliament, "In December EU leaders agreed to an ambitious plan to tackle climate change and it's only by working at the national, regional and local level that we'll succeed".
BBC IHT Le Monde

EurActiv reports that the President of the Austrian Federal Economic Chamber has urged the EU to quadruple its financial assistance to eastern European countries to balance the long-term influence of Russia in the region.
EurActiv EUobserver

In an analysis piece , FT Deutschland assesses the probability to be "high" for 6 of the 10 central and eastern European EU member states to default on their debt, (Estonia, Latvia, Lithuania, Bulgaria, Romania and Hungary).
Eurointelligence

The widening gaps between the interest rates that eurozone members pay bond investors are "worrying developments," according to a "speaking note" prepared for Luxembourg Finance Minister Jean-Claude Juncker.
Bloomberg

French President Nicolas Sarkozy's poll ratings have hit a record low according to the latest Ipsos poll, with 61% of those polled critical of his performance and only 36% favourable to him.
Ipsos

The EU Commission has been accused by Friends of the Earth in a new report of being too biased in favour of big business. EurActiv notes the report's conclusion as being that "Privileged access for business seems to have become institutionalised in many expert groups, with industry representatives all too often occupying most of the seats granted to non-governmental players."
EurActiv

UK

National Grid to pipe and store CO2 emissions under North Sea
The Times reports that the National Grid is planning a new business unit that will pipe carbon dioxide emissions from UK power stations, fitted with carbon capture and storage (CCS) equipment, for storage in geological formations beneath the North Sea. The Government hopes that CCS can play "a critical role in helping the UK" to meet legally binding EU obligations to cut carbon emissions by 20 per cent by 2020.
Times

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