Open Europe press summary: 2 February 2009

Europe

New Open Europe research: EU regulation has cost the UK £107 billion over past decade - accounting for 72% of the total cost of regulation in the UK
Open Europe has published a new report looking at the cost of regulation in the UK and EU over the last decade. The report, titled "Out of Control? Measuring a decade of EU legislation", is one of the most comprehensive studies ever undertaken on the topic in the UK.

Analysing more than 2,000 of the UK Government's own Impact Assessments, Open Europe found that regulations introduced between 1998 and 2008 have cost the UK economy £148.2 billion. Of this £106.6 billion, or nearly 72%, had its origin in EU legislation.

EU regulations introduced since 1998 have therefore cost the UK economy almost £107 billion - far more than the UK's total gross contributions to the EU budget over the same period.

In the report, Open Europe argues that because of the high proportion of regulations being made in Brussels, "The Government effectively has control of less than 30 percent of the annual cost of regulation." The report concludes that initiatives to cut red tape, as well as the system of scrutiny in the UK are misdirected as they fail to take this in to account.

Moreover, the study finds that the cost of regulation is going up all the time. Since the UK Government launched its 'Regulatory Reform Agenda' in 2005, the annual cost of regulation in Britain has gone from £16.5 billion in 2005 to £28.7 billion in 2008 - an increase of 74%.

The report was featured on the BBC's Politics Show yesterday. Open Europe's Research Director Mats Persson appeared on the show presenting the findings. On the programme, Labour MP Gisela Stuart welcomed the report, saying, "I think you need to look at where legislation is made, who is responsible for what, and whether it's been properly assessed...and at what the unintended consequences of legislation are."

In a press release, Shadow Minister for Europe, Conservative MP Mark Francois, also welcomed the study, saying "This valuable research is further proof that the cost of EU regulation on business is too high. These are difficult times and our businesses need to compete in a global market. The burden of regulation needs to come down instead of going up."

The report was also covered in the Financial Times. The article quoted Simon Wolfson, Chief Executive of Next - who wrote the foreword to the report - saying: "Over the past 10 years, the government has paid lip service to the idea of regulatory reform...Despite the rhetoric, this report shows the annual cost of regulation has skyrocketed."
BBC Politics Show FT Reuters Telegraph: Hannan blog Out of Control? Measuring a decade of EU regulation

Foreign workers dispute escalates amid confusion over EU law
PA reports that the so-called "Wildcat strikes" over workers from other EU countries spread today as the dispute escalated despite calls from the Government for the industrial action to stop.

Contract workers at the Sellafield nuclear site in Cumbria, Heysham nuclear power station in Lancashire and Staythorpe power station near Newark in Nottinghamshire were among those taking unofficial action for the first time. Unions across the UK have been campaigning for a change to the EU law, arguing that several recent ECJ rulings have interpreted the EU's so-called Posted Workers Directive to mean that firms are permitted to employ foreign workers at rates that undercut domestic wages and working conditions.

The Guardian writes that, when UK Prime Minister Gordon Brown promised "British jobs for British workers", he could only ever deliver "British jobs for European workers." The paper reports that the only conditions that firms employing foreign workers need to fulfill under the Posted Workers Directive are that contracts are for a limited time and that employers meet local working conditions, i.e. minimum wage.

William Hague told the BBC Andrew Marr programme: "When Gordon Brown said 'British jobs for British workers' it was a fiction... because there is freedom of movement of workers within the European Union [apart from the exceptions for Bulgaria and Romania]... It was unbelievably ridiculous and silly [of Gordon Brown to make that claim]."

According to the Times, Gordon Brown is to go to the EU to seek new legal safeguards for British workers. The EUreferendum blog argues that what the Government and Unions want "is not so much a new directive as a new treaty."

The Sun reports that there appears to be Cabinet confusion over the strikes, with Lord Mandelson saying that it is not EU law which has caused the problem, and Health Secretary Alan Johnson suggesting that the Government would ask for new EU laws to prevent British workers being undercut in the future.

Business Secretary Lord Mandelson pointed out that the same EU laws that allow EU workers to work in Britain also open EU jobs to British workers. He said, "It is not European law that has caused this problem for us", the Guardian reports. The Independent on Sunday quoted Europe Minister Caroline Flint saying, "It is important to remember that open European labour markets also allow British firms and workers to take advantage of contracts an opportunities elsewhere in the EU".

The Guardian quotes Alan Johnson saying that rulings from the ECJ could have "distorted" the intention of EU legislation and the Government "need to bring in fresh directives to make it absolutely clear that people cannot be undercut in this way." Peter Hain, the former Work and Pensions Secretary said he thought something had gone "badly wrong" with the way that EU legislation was being enforced. The Telegraph also reports him saying, "We should stop gold plating European directives".

Liberal Democrat leader Nick Clegg warned that, "Any attempt to ban EU citizens from jobs in Britain would be a massive own goal," according to the Independent.

Writing in Saturday's Telegraph, Philip Johnston argued that there are an exceptionally large number of EU workers in the UK because the Government decided not to use transitional powers to restrict access to workers from new EU member states that joined in 2004.

A leader in the Mail argues that Lord Mandelson is out of touch and has only "fanned the flames by accusing the strikers of 'protectionism' against our EU neighbours".
Observer: Leader Mail: Leader Independent Independent on Sunday Telegraph Telegraph: Daley Sun Sun: Kavanagh Express Express 2 Mirror: Cruddas Times Times 2 BBC BBC: Robinson blog EU Referendum: blog Telegraph: Leader Times: Leader Times: Buckley Telegraph: Johnston FT Guardian FT 2 Mail Guardian 2 Guardian 3 Mail: Oborne Mail: Leader

Conservative MEPs take the lead in publishing details of expenses
All Conservative MEPs except for Christopher Beazley have published details of their expenses, which amount to more than £36,000 over four months. Meanwhile, 16 out of 27 of them employ their wives or other family members. The Mail on Sunday reported that "Analysis by think-tank Open Europe also shows that between September and December, 26 of the Tory MEPs claimed an average of £36,303 on all travel, office expenses and allowances."
Mail on Sunday Open Europe blog Conservative Home

Royal College of Surgeons: EU's working time laws threaten patents' safety
The People reported that the President of the Royal College of Surgeons, John Black, has warned that the EU's 48-hour week for doctors, due to come into force in August, will threaten patient safety. Mr Black said, "Hospital cover is already groaning but finding doctors to keep units open is going to be impossible with 48 hours. They will be spread so thinly." The article noted that UK Ministers are trying o negotiate an extension before the provision in the EU's Working Time Directive comes into effect.
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EU fisheries policy costs the UK £2.8bn a year
The Mail reports that the EU's Common Fisheries Policy has cost the UK £2.81bn a year, according to a report from the Taxpayers' Alliance. TV botanist and environment campaigner Professor David Bellamy said, "We are paying billions for a policy that has done huge ecological harm and is pushing cod on to the endangered list."
Mail

Libertas to be officially sworn in as pan-European party
EUobserver reports that Libertas will today be signed off as a pan-European party, entitling it to receive EU funds. Libertas currently has two members from France, and one each from Cyprus, Britain, Greece, Finland, Bulgaria and Estonia. Over the weekend, Declan Ganley held a mini-congress in Warsaw prior to the launch of the Polish branch of Libertas.

EUobserver notes that Libertas is also gathering members from other quarters, with a report in the Times that Kevin O'Connell, former deputy director of EU law enforcement agency Europol, wants to run for the party in the June European elections.

Meanwhile, a new poll for the Sunday Business Post in Ireland reveals that 58 percent are in favour of the Lisbon Treaty, 28 percent are against and 14 percent are undecided.
EUobserver Sunday Business Post Euractiv

Sarkozy calls for early meeting of eurozone members amid German scepticism
French President Nicolas Sarkozy has called for an early meeting of the European Council to show greater solidarity within the Eurozone and to ask for a tightening of member countries' budgets, Le Monde reports. The article notes that currently both the Czech Presidency of the EU and the EU Commission are largely passive and Mr Sarkozy is asking for better leadership on their parts. FT Deutschland reports that the German government is not enthusiastic about Sarkozy's idea.

Meanwhile, the New York Times looks at the problems that the new EU countries may face when they join the euro. Simon Tilford, of the Centre for European Reform is quoted saying, "membership is not a panacea for a country's social and economic problems." Comparing Greece with some of the wealthier Eurozone states, he pointed out that "while Greece may have been insulated from the risk of a currency crisis, there is also the risk of a credit crisis and a collapse of confidence in its solvency."

Mark Mardell notes in his BBC blog that the question of withdrawing or joining the Euro is further complicated, however, by the fact that "what is good for bankers may be bad for farmers."
New York Times Le Monde BBC: Mardell blog

EU's protectionism fuels scepticism over successful trade deal
The Times notes that "Sharp clashes between key trade ministers and a rash of protectionist measures around the world fuelled scepticism in Davos this weekend about renewed pledges to clinch a global free trade deal this year."

The article further notes, "Concerns about protectionism were stoked by the European Union's decision to reintroduce subsidies for its dairy industry, a move that would be banned under a Doha pact. On Saturday, the EU put an 85 per cent import duty on screws, nails and bolts from China, a step expected to provoke retaliatory action from Beijing."

Meanwhile, a leader in the Mail notes that "Every family in Britain pays £375 a year extra for their food because of the protectionist Common Agricultural Policy. Scrapping Fortress Europe would go some way towards easing the impact of the credit crunch. Now why didn't anyone say that in Davos?"
Times Times: Mandelson Mail: Leader

Balkenende to replace Barroso?
Le Monde reports on rumours that Jan Peter Balkenende might replace Jose Manuel Barroso as head of the EU Commission. Although Barroso is tipped to retain his position, the worsening relations between the Commission and various EU states, most notably on energy and climate change issues, are seen to be destabilising Mr Barroso.
Le Monde

The new Icelandic government has said there will be no referendum on EU membership during the lifetime of the government - EU says the country is not on 'fast-track' to membership
EUobserver European Voice NOS

The EU Commission is thinking about using the so-called European Globalisation Fund to mitigate the effects of the financial crisis.
EUobserver

Wilfried Martens, the leader of the EPP group in the European Parliament, has called on David Cameron to state before April whether or not his party will leave the group. He also presented the EPP's manifesto for the European elections.
EUobserver Euractiv

The Observer reported that Britian's police are still unable to access a pan-European database or criminals, prompting concerns over the ability to track terror suspects entering the UK. The UK was given access to the EU's Schengen Information System in 2000 but technical problems have left authorities unable to use the system.
Observer

The Sunday Telegraph reported that former Home Secretary David Blunkett has criticised Government plans for a database to record the phone, email and internet histories of UK citizens.
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Open Europe is an independent think tank campaigning for radical reform of the EU. For information on our research, events and other activities, please visit our website: openeurope.org.uk or call us on 0207 197 2333.