Open Europe press summary: 9 February 2009

Europe

Business leaders call on the Government to "adopt uncompromising stand" against over-regulation
In a letter to Saturday's Telegraph, 15 business leaders, including Tim Martin and Julian Blackwell, called on the Government to "adopt an uncompromising stand against regulatory overkill." Citing Open Europe's report published last week on the cost of regulation, the leaders argue "Without fundamental reform, the regulation factories in Whitehall and Brussels will produce still further red tape, at a time when businesses are struggling to cope with their cost base or even, in some cases, to survive."

Meanwhile, an article on page 2 of the Sunday Express looked at Open Europe's report, which found that EU legislation introduced since 1998 has cost the UK economy £107billion, equivalent to 72 per cent of the total cost of regulation during that time period and more than the entire annual cost of the National Health Service. If the current rate of legislation continues for the next decade, the report found, EU regulation will cost Britain £356billion - equivalent to £14,300 per British household, or enough to abolish income tax for two years.

The report also found that EU employment law had cost Britain £31billion since 1998 - over 20% of the total cost of regulation - and that new EU health and safety legislation has cost £5.7billion during the last decade.

The article also noted that the report found that a British impact assessment on the EU's Motor Fuel Regulations 2007 estimated the social and economic benefits at £0 a year, the environmental benefits at £18.5million a year and the costs at £400million a year. Despite the huge discrepancy it was signed off by then Transport Minister Stephen Ladyman on the grounds it was "expected to be the least cost means of complying with our EU obligations".

Open Europe Research Director Mats Persson said that small businesses were the biggest losers and the financial sector, where lack of regulation has been blamed for causing the recession, accounted for only five per cent of new regulations.

He was also quoted saying "Our research clearly shows that despite some genuine attempts at reform, the cost of regulation has skyrocketed over the past decade. The Government has simply lost control. We need a tough new approach to negotiations in the EU. A good place to start would be refusing to accept an end to the UK's opt-out from the 48-hour week, currently under negotiation."

Simon Wolfson, Chief Executive of Next, was quoted arguing, "The mindset of government must change. Policymakers must accept the radical idea that the law should only be used to regulate our endeavours where there is an overwhelming case for state intervention. Secondly, Ministers must be far stronger in resisting new regulation from the EU. They must use all the power at their disposal to stem the tide of regulation coming from the EU, regardless of the unpopularity it may cause us in Brussels. In the long run, the whole of Europe will thank us for taking a stand."
Telegraph: Letters Express

EU quangos cost £1 billion a year
The Sunday Telegraph reported that new research by the Economic Research Council and Global Vision has found that a "new breed of EU quangos" cost more than one billion pounds a year to run. They include the Education, Audiovisual and Culture Executive Agency, which has commissioned a comparative analysis of folk talks to encourage people to see themselves as part of a wider Europe. The report also estimates that British taxpayers contribute £103 million a year towards the budget of such organisations.

In a comment piece in the Sunday Telegraph, Dan Lewis, Research Director of the Economic Research Council, argues that "all too many EU agencies duplicate work done elsewhere". He cites the European Defence Agency (EDA) as the "most indefensible" of the bodies, because instead of increasing defence spending, a quango was set up which "has the express aim of channelling what little European arms procurement there is toward EU-based manufacturers and so protect their jobs."
Sunday Telegraph EU Referendum blog

Czechs say Sarkozy's comments could "jeopardise" Lisbon Treaty
The Czech Republic has reacted angrily to remarks made by French President Nicolas Sarkozy on moving French car companies' factories back from the Czech Republic, reports EUobserver. Czech Prime Minister Mirek Topolanek is quoted saying, "If someone wanted to really jeopardise the ratification of the Lisbon Treaty, he could not have chosen a better way and a better time". The Czech Republic is due to vote on 17 February on ratification of the Treaty.

An editorial in European Voice argues that "It would also be wrong to use the financial crisis to scare the Irish into approving the Lisbon treaty, using Iceland as a frightening example."
EUobserver European Voice: Editorial

Government drawing up plans to change EU laws on free movement of workers
The News of the World reported that Peter Mandelson is to set up a taskforce, headed by Mark Gibson, who will be asked for plans by spring to help British construction workers find jobs in the UK and abroad.

Meanwhile The People reported that Labour "is drawing up plans to stop foreign workers taking lower pay than Brits to win jobs". The Government wants to try to change EU laws on the free movement of workers, and according to the paper: "It would mean that Europeans could not be offered less where a union agreement is in place." According to the paper there is a Cabinet split over the proposals - Alan Johnson is in favour but Peter Mandelson is not. Labour MEP Richard Corbett is quoted saying, "An obvious solution is to give collective agreements legal recognition in UK law."

The Express reports that the row over foreign labour has spread, with a protest organised for Wednesday at the Isle of Grain construction site in Kent.
The People

Senior Sarkozy aide: With Lisbon Treaty, "Europe will move into a new phase", and will need Tony Blair as leader
The Mail on Sunday reported that Tony Blair is poised to become the first President of the EU after it was confirmed that French leader Nicolas Sarkozy is determined to help him win the post. A senior aide to President Sarkozy - Alain Minc - told a private gathering of senior British and French politicians: "When the Lisbon Treaty is ratified, Europe will move into a new phase. Europe will need a strong leader and Nicolas Sarkozy will nominate Tony Blair for the position. We have to unite and say to Mrs Merkel that we cannot afford not to have Tony Blair, who will be a strong figurehead, is entirely respected around the world and will be a commanding leader at the helm of Europe."
Mail on Sunday

Sarkozy: Brown's VAT cut was a mistake
There was widespread coverage over the weekend of Nicolas Sarkozy's comments where he criticised Gordon Brown's two point five percent VAT cut in a French TV interview, saying it had "absolutely not worked," and that a slight cut in VAT wouldn't encourage people to buy more if "they are scared of their future". The Guardian reports that "Downing Street was not impressed".
Guardian Telegraph FT FT 2 PA Telegraph: Waterfield

Open Europe's recent research on the EU's communication policy is mentioned in French weekly newspaper Marianne.
Marianne

Irish fishermen protest new EU rules
The Irish Times reports that there were growing protests over the weekend in Ireland over a new system operating for the EU's days-at-sea rule, which the Federation of Irish Fishermen has warned is "penalising those who fished less" over the last decade. The Irish Minister for Fisheries, Tony Killeen, is quoted by the Irish Times saying, "The reality of EU fisheries councils is that you don't get everything you want. If we had refused to co-operate, this measure would have been applied further around the coastline."

The EU Referendum blog reports that the days-at-sea scheme, which rations the days fishermen are allowed to leave port, is being applied on the basis of recent track record, as a "conservation measure", but it means that those who co-operated with past conservation measures are now being awarded fewer days than those who did not.
Irish Times EU Referendum blog

D'Estaing: France and Germany at the heart of European integration, not Britain
In an interview with Le Figaro, Valéry Giscard d'Estaing said that France and Germany were still the driving forces in Europe and said that "we can clearly see that Britain doesn't want to participate in the process of European integration. Integration, is continental Europe, with, at the centre, this great unit which is France and Germany."
Le Figaro

EU Commission would "welcome limits" on executives' pay
European Voice reports that the EU Commission "welcomes" the idea of a US-style limit on executive pay caps and says that the review on the matter will be completed by spring 2009. A spokesman for the Commission however said that it had not "pre-empted or pre-judged" its conclusions, and that there was not a "general EU competence" to legislate on "pay matters in business."

Meanwhile, France could be the first country to introduce a cap on traders' bonuses, after Sarkozy called for an end to "remuneration being proportional to the amount of risk taken," during his televised address on Thursday night to the nation, banks have now agreed with the state to reform the ways in which remuneration takes place within their institutions.
European Voice EUobserver Le Monde

Barroso and Putin clash over human rights
EUobserver reports that Commission President Jose Barroso and Russian Prime Minister Vladimir Putin "clashed" during an EU-Russia meeting, which was supposed to improve relations following January's gas crisis. Barroso questioned Russia's attitudes to human rights, saying, "In [EU] public opinion there is some concern regarding some recent events that happened in Russia. Namely, the murder of some journalists and some rights activists." He added, "Human rights and rule of law are much more important than diplomacy between two states."
EUobserver

Biden outlines shift in US foreign policy but asks Europe to share more of the burden
A leader in the FT looks at the remarks by US Vice-President Joe Biden to European leaders at the weekend's Munich Security Conference. According to Euractiv Biden said, "America will do more, but America will ask for more from our partners." The leader argues that, "The bad news for the European allies in Nato, however, is that US re-engagement comes at a price: they must be prepared to share more of the burden of troubleshooting around the world." The article notes this will require deploying more troops in Afghanistan and stepping up the development effort, where the EU is supposed to be taking a leading role.

The IHT reports that Biden also signalled a new approach to relations with Russia, particularly on US plans for a missile shield in eastern Europe. He said, "It is time to press the reset button, and to revisit the many areas where we can and should be working together with Russia".
FT: Leader IHT IHT: Analysis Irish Independent: Leader EurActiv BBC

The Mail on Sunday reported that Britain may be powerless to veto any proposal to set up a Europe-wide financial regulator that would hand supervision of the City to the EU. A blueprint for some transfer of financial regulation to the EU is expected at the end of this month.
Mail on Sunday Mail

Following news that five EU Commissioners may stand as candidates in the European Parliament elections in June, Tony Barber in the FT writes that the departure of several Commissioners simultaneously will create a "fin de régime" atmosphere at the Commission.
FT

The FT reports that English regions have lost up to £671 million in EU funds for combating the recession, after the Government declined a deadline extension offered by the EU.
FT

Joaquin Almunia: Expect more extensive regulation of the financial system
Writing in the WSJ, EU Economic and Monetary Affairs Commissioner Joaquin Almunia argues that "Europe has started delivering" in response to the economic crisis. He notes that, "If one thing is certain at this stage, it is that what remained of the Thatcher and Reagan ideological heritage - the aversion to any attempt to correct the undesirable effects of the "laissez-faire, laissez-aller" approach - has collapsed. The period we are entering will be characterised by a more active involvement of the public sector in the economy and, in particular, by a more abundant and extensive regulation of the financial system."
WSJ: Almunia

In an article in the WSJ, Spain's Finance Minister Pedro Solbes argues that, "Despite some disparity in economic performance across countries, the European Economic and Monetary Union is helping all member states to weather the financial turmoil." He goes on to argue for further interest rate cuts in the eurozone.
WSJ: Solbes

EU to ban 'inhumane' halal meat?
The Sunday Express reported that halal meat could be banned in Britain under EU plans to curb animal cruelty. The European Commission has put forward plans to ensure that animals facing slaughter are "spared any avoidable pain, distress or suffering." According to the paper, under the proposals all animals facing slaughter would have to be electrically stunned beforehand.
Sunday Express

EUobserver reports that Swiss voters "overwhelmingly approved" the extension of free movement of workers to Bulgarians and Romanians in a referendum yesterday.
IHT Irish Times BBC European Voice EurActiv EUobserver Telegraph

Culture Secretary Andy Burnham is coming under pressure from Viviane Reding, EU Commissioner for society and media, to allow product placement on TV.
Sunday Telegraph

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