Open Europe press summary: 6 February 2009

Europe

MEPs: We need to change the Posted Workers Directive to end "social dumping"
The WSJ reports that workers voted to end the strikes at the Lindsey oil refinery yesterday after a deal was negotiated to create 102 new jobs for British workers.

A letter to the Guardian from Caroline Lucas, Green MEP, and Glyn Ford and Stephen Hughes, Labour MEPs, says that other MEPs from Germany, Britain and Italy have threatened to veto this year's incoming European Commission, unless it promises to revise the Posted Workers Directive. They write that the law must be changed to end "social dumping". In a separate letter, Bob Crow, General Secretary of the RMT railworkers' union, argues that what is needed is "a root-and-branch political challenge to the supremacy of the ECJ, not tinkering with EU competition laws such as the posting of workers directive." Le Figaro, quotes Commission spokesman Johannes Leitenberger saying "The free circulation of people in Europe is part of the solution, not the problem."

In an article in European Voice, Charles Woolfson, Professor of Labour Studies at the University of Glasgow, argues that ECJ rulings, such as the Viking and Laval cases, have created a question as to why organised labour should continue to support EU membership. He argues that "judicial imperialism" has mauled "social Europe" and left migrant workers vulnerable, with limited chance for industrial action.

The Charlemagne column in the Economist writes that the "single market was always intended to bring out the competitive advantages of every corner of the EU", which includes bringing foreign workers to offset lower productivity with lower wages. It goes on to say that "Recent British protests are no surprise: commission officials had long expected action in Britain against foreign workers brought in under the posted workers' directive", and notes that the EU's Trade Confederation has drafted a new "social protocol" to add to the next EU treaty which will say the "single market is not an end in itself" and it must be balanced by "social progress".
WSJ Express Guardian: Letters FT FT: Letters Irish Times Economist European Voice Open Europe briefing Economist: Charlemagne

Economist: The spectre of economic nationalism is rising;
WTO reports rise in barriers to trade
A leader in the Economist argues that the spectre of economic nationalism is rising, most predominantly in the financial sector where governments are bailing out banks, on the demand that credit then be extended to domestic customers. It also argues that President Obama should threaten to veto the entire economic stimulus package unless the "Buy American" provisions are removed completely.

The WSJ reports that the World Trade Organisation is to hold a special meeting on Monday in an attempt to stem the tide of growing protectionism, only two weeks after saying that protectionism was under control. WTO figures show an increase in anti-dumping cases, up 40% since a year ago. So far this year, the EU has imposed anti-dumping tariffs on imports of Chinese screws, Russia has raised import tariffs on dozens of products including combine harvesters and US has said it will increase tariffs on French cheese and Italian water.

The Guardian reports that EU Trade Commissioner Catherine Ashton has called for a final push to reach an agreement in the Doha round of trade talks to avert protectionism and a possible slide into a depression.

The Bridges weekly trade digest reports that the Brazilian Ambassador to the WTO has condemned the EU for its seizure of generic drugs bound for Brazil. This was echoed by the Indian Ambassador, who said "Barriers to legitimate trade of generic drugs will seriously impair the efforts of organisations like the Medecins Sans Frontieres...engaged in providing medicines and improving public health in the least developed parts of the world".
FT Economist: Leader European Voice WSJ WSJ 2 Guardian ICTSD

Commission proposes plans to protect sharks
The Times reports that the European Commission, presenting its first plan to limit all types of shark fishing, said yesterday that it had to act to stop several types of shark being pushed towards extinction. Joe Borg, the EU Fisheries Commissioner, said: "The latest information we have confirms that human beings are now a far bigger threat to sharks than sharks ever were to us."

The article notes that the plans could spell the end of rock salmon or huss being sold at fish and chip shops.
Times FT BBC European Voice

MEP defends Australia junket
Conservative MEP Giles Chicester has defended a planned trip to Australia by a delegation of nine MEPs, of which he is the leader, as "an important delegation which does good work." Independent MEP Hans-Peter Martin has criticised the trip asking, "Why go all the way to Australia, particularly at the present time just a few months ahead of the European elections...Also, in light of the ongoing global recession which is biting hard here in Europe I am sure that the money spent on this delegation could be put to much better use on, for example, social projects", reports the Parliament website.
The Parliament

Munich Security Conference to test US and European cooperation on defence
Deutsche Welle reports that US Vice-President Joe Biden hopes to use the Munich Security Conference, which starts today, to repair US relations with Europe that were damaged during the Bush administration. While in Munich, Biden will meet with leaders including German Chancellor Angela Merkel and French President Nicolas Sarkozy.

German Deputy Foreign Minister Gernot Erler said his country hoped for a strong message from the new US administration to Moscow. "It would be a very, very important signal and a good start if the administration of (US President) Obama would now announce that it wants to re-enter a substantial dialogue with Russia on the issue of missile defense," Erler said.

The WSJ notes that the conference will be an early test of whether President Barack Obama's popularity in Europe will mean greater political support for Nato efforts in Afghanistan.

However, according to Deutsche Welle, when asked whether Germany would increase its number of troops or shift soldiers already there to more dangerous areas should the Obama administration call for such support, Erler said, "That's exactly the issue on which we don't see ...justified expectations on Germany because we've already increased [our presence]".

Meanwhile, Le Monde notes that Russia is seeking to gain influence in central Asia at the expense of NATO. The Russians are pushing for the eviction of US forces from an air base in Kyrgizstan to be replaced with a central Asian rapid reaction force, 75% of which will be composed of Russian soldiers.
WSJ Deutsche Welle Le Monde FT

The European Parliament has suspended its approval of Libertas as a pan-European political party, in order to investigate the signatures used on its application after a second MEP denied that he had signed it.
EUobserver The Parliament Europa

Sarkozy outlines new French stimulus plan
French President Nicolas Sarkozy has outlined a modified national stimulus plan to help kick-start the French economy after the mass strikes that crippled France on 29 January. Under pressure from trade unions and the political Left, Le Monde notes that Sarkozy has placed infrastructure projects at the heart of his economic plan, along with tax cuts for the least well-off. He has however resisted from measures to reduce Value Added Tax, as in Britain, which he said, "has not prevented a fall in consumption there." Sarkozy has also shown himself in favour of clamping down on traders' bonuses, reports the FT.
Les Échos Le Monde WSJ Times FT Irish Times Le Monde2

The BBC reports that European Commission President Jose Manuel Barroso is leading an EU delegation to Moscow for the first talks since last month's gas crisis.
European Voice BBC FT

The European Parliament is set to adopt new regulations in April that will push for the establishment of a single European clearing house for credit derivatives. The new rules are set to be introduced by amending the Capital Requirements Directive.
EurActiv

Brussels Warns Against Car Industry Protectionism
Le Monde reports that EU Commissioner Neelie Kroes has formally warned France not to oblige domestic car constructors to invest in France or to have to use parts made in France. Mrs Kroes said that this would lead to "a risk of a return of protectionism" and that such measures "could not be considered compatible with EU law."
Le Monde

Croatia's EU accession negotiator, Ambassador Vladimir Drobnjak has said Croatia is willing to give legally binding guarantees to Slovenia that its EU accession negotiations will not prejudice the territorial dispute between them, which is currently blocking the talks.
Irish Times

Economist: Eurozone troubles could lead to more political integration
A leader in the Economist argues that the eurozone is in danger but it could actually lead to more political integration and not less. It argues that the risk of a eurozone country defaulting on its debt has gone up and that the eurozone might need a rescue package similar to the ones provided by the IMF which "would imply both a bigger role for the centre and more intrusive monitoring of euro members' budgets."

A separate article in the Economist writes that "many of the euro area's supposed strengths were always more apparent than real."
Economist: Leader Economist European Voice

Whilst looking at US President Barack Obama's policies on climate change and renewable energy, Camilla Cavendish notes in the Times that, "The risk for European politicians is that their own faltering steps will soon be outpaced. The EU carbon market is failing because its politicians speak green but keep shoring up old-fashioned industries."
Times: Cavendish

Writing in the IHT, Celestine Bohlen argues that "The Czechs' leadership - or lack of it - should clinch the argument for a permanent EU presidency that could give the continent the kind of clout it deserves and needs."
IHT

The Swedish government plans to reverse a nearly 30-year-old ban on building nuclear power plants, giving the green light to a new generation of reactors.
WSJ Times Guardian BBC EU Referendum blog

Writing on the Conservative Home website Marc Glendening of the Democracy Movement accuses former Europe Minister Denis MacShane of engaging in 'neo-McCarthyite' smear tactics against those critical of the EU.
Conservative Home

MEPs have passed a resolution urging the EU's member states to recognise the independence of Kosovo.
EUobserver

Ireland has set the date for its European Parliament elections for 5 June.
Irish Times

An Advocate General at the European Court of Justice has said that Greece should be fined 2 million euros for failing to recover illegal state aid given to the struggling national airline Olympic Airways.
European Voice

UK

Martin Kettle: European elections will be pivotal moment in domestic politics
Writing in the Guardian, Martin Kettle argues that the upcoming European elections will be a pivotal moment for domestic UK politics: "we can expect the [Labour] party's share of the vote in this year's European contest to fall into the teens for the first time ever in any nationwide electoral contest. With a general election no more than a year off, that result will immediately push the panic button."
Guardian: Kettle

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