Open Europe press summary: 3 February 2009

Europe

Strikes over foreign EU labour spread;
Commission says it will not be pressured into revising rules
There is widespread coverage of the so-called "wildcat strikes" continuing to spread across the UK, with workers protesting against the use of foreign EU labour. The strikers and unions argue that British workers are being automatically rejected when applying for work because several recent ECJ rulings have interpreted the EU's Posted Workers Directive to allow firms to employ foreign workers at rates that undercut domestic wages and working conditions.

The Times reports that Business Secretary Lord Mandelson suggested yesterday that striking workers were displaying the "politics of xenophobia". According to the Telegraph, he told the House of Lords, "On the Lindsey site, the great majority of the workers are actually British, so clearly no policy of discrimination or exclusion of British nationals is being operated at the refinery.'' He added that, "Membership of the European Union, and taking advantage of the opportunities for trade presented by the EU, are firmly in the UK's national interest. Free movement of labour and the ability to work across the EU has been a condition of membership for decades."

The Telegraph notes that the dispute is also "threatening to escalate into a major diplomatic incident". AFP reports that the strikes have been described as "unacceptable" by Portuguese and Italian government ministers. Italian Foreign Minister Franco Frattini described the action as "indefensible." He said, "This Europe is one for the free movement of all workers: for Italians in Britain as well as Britons in Italy."

EUobserver reports that the European Commission has said it will not be pressured into making new rules on employees' rights with an EU law governing the hiring of foreign workers. "We cannot create new jobs by closing markets," said Commission spokesman Johannes Laitenberger, according to Euractiv. "We understand the UK workers' fears, but discrimating against workers of other EU nations is not the solution," he added.

Meanwhile, Le Monde writes that rising xenophobic sentiment in Ireland is forcing many Polish workers to return home, with the EU blamed for allowing free movement across borders.
WSJ Times Times 2 Times: Riddell Times: Aaronovitch Independent Independent: Lawson Independent: Leader Independent: Letters Guardian Guardian 2 Guardian: Editorial AFP FT Irish Times Irish Times: Leader Mail Mail: Tebbit Express Sun: Leader Sun Telegraph BBC European Voice BBC 2 BBC: Mardell blog BBC: Robinson blog EU Referendum blog Radio 4: Today programme EurActiv EUobserver Le Monde Le Monde 2 Le Monde 3 Figaro

Quatremer: "Is Germany still committed to further EU integration?"
On his Coulisses de Bruxelles blog, Jean Quatremer notes that Germany has, for the most part, been working in isolation since the beginning of the banking crisis last year. German Chancellor Angela Merkel was initially opposed to the idea of a joint action plan in response to the crisis, arguing that Germany was safe from the banking turmoil coming from America.

He writes that German Finance Minister Peer Steinbrück had explained in an interview with the WSJ that he didn't want "good German money" being used to save the "Club Med" banks of Mediterranean countries. Quatremer notes that the German government has made a 180 degree turn on these ideas following the difficulties experienced by Germany's banks.

He also argues that the EU is suffering from a lack of positive leadership, with the Czech Presidency reticent to show any form of European solidarity, and Jose Manuel Barroso as timid and "falling back into his bad habits: do nothing that would compromise re-election".

Writing in FT Deutschland, Lucas Zeise suggests that Germany will not be able to maintain its tough position on financial bailouts. As the crisis threatens to eclipse German exports into southern Europe, Germany will eventually be asked to foot the bill, one way or another. He writes that, compared to those costs, it would have been a lot cheaper to issue a single European bond.
FTD Coulisses de Bruxelles

US Senate considers 'Buy American' clause
The US Senate is currently considering a stimulus bill that would restrict projects funded with the stimulus money to use only US manufactured goods, reports AFP. The EU has warned that it will not "stand idly by" if a ban on foreign steel in infrastructure projects is implemented in the United States, reports the Independent.

John Bruton, the EU's Ambassador to Washington, has said that the measure would set a "dangerous precedent" if approved, according to the BBC. AP also quotes him warning that, "Measures of this nature, if they breach WTO rules, are likely to be the subject of legal action. There is always the possibility of retaliatory measures to be taken".
Independent AFP AP FT FT: Rachman IHT: Irwin Telegraph: Johnson BBC

Commission proposes new rules to combat tax fraud
The European Commission has proposed new tax rules requiring member states to disclose details on accounts held by taxpayers in the bloc in order to combat tax evasion, reports the IHT. However, EUobserver reports that Austria has opposed the plan, suggesting that it would reduce its competitiveness when dealing with Switzerland, which is not a member of the EU.
IHT European Voice EUobserver AFP Swissinfo

An article in the Washington Times on Sunday cited Open Europe's research on the EU's Climate Action and Renewable Energy Package, and its conclusions that the scheme has accrued major costs to public service facilities such as schools and hospitals.
Washington Times The EU Climate Action and Renewable Energy Package

EU denies planning fish quotas for recreational anglers
The European Commission's Irish office has denied that the EU is planning to introduce fish quotas for recreational anglers, reports the Irish Times. However, a representative insisted that recreational fishing vessels did account for a large proportion of EU fish catches, suggesting that "up to 50 per cent of the national cod quota is taken by recreational fishermen" in Germany.
Irish Times

Libertas granted official recognition and EU funds
The Irish Times reports that the European Parliament has granted official recognition and EU funds worth 202,823 euros to Libertas. It quotes Declan Ganley saying that Libertas would not use the money for its election campaign. A separate article also notes that a German think tank, the Libertas European Institute, is threatening to sue Libertas for using its name.
The Parliament Irish Times HLN Bloomberg Irish Times 2

McCreevy criticises Basel II
Speaking about how the European and global regulatory landscape need to change in order to prevent a repeat of the current crisis, European Commissioner Charlie McCreevy has criticised the Basel II capital standards in an interview with the WSJ, saying that the EU should go back to a cruder measurement of the adequacy of capital. WSJ

US might not pursue Eastern European missile project, possibly endangering deal on Lisbon ratification in Czech RepublicAccording to Eurotopics, US security expert Zbignew Brzezinski has said on Czech television that US President Obama will no longer pursue the controversial missile defence project in eastern Europe.
Eurotopics FT Brussels blog Prague Daily Monitor

Nabucco pipeline creates difficulties for the EU
Le Monde reports that EU member states are finding it difficult to adopt a common voice on the Nabucco pipeline project, with Germany particularly worried about upsetting Russia and wanting EU support and funding for other pipeline projects. An article in the European Voice magazine argues that the Nabucco pipeline project is stuck in a Catch-22 situation, with supply countries reluctant to sign up until financing is secured, and banks reluctant to provide finance until supplies are secured.
European Voice Le Monde

An EU Commission representative attended a sheep sale in Scotland yesterday to hear growing opposition to EU proposals that would see every sheep in EU member states electronically identified.
Scotsman

The ECB is reportedly drawing up "appropriate guidelines" for EU states that want to set up "bad banks". The Economic and Monetary Affairs Commissioner Joaquin Almunia said that bad banks are a "solution that had very good results in previous financial crises, for example in Sweden."
Irish Independent

Irish Foreign Minister Micheál Martin has suggested that some kind of engagement with Hamas may have to feature in future EU policy towards the Israeli-Palestinian issue.
Irish Times

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.