Europe
Miliband: The EU is being tested "as never before"
In a speech at the LSE yesterday entitled "An EU 'fit for purpose' in the global age", UK Foreign Secretary David Miliband said that "I don't think it's an exaggeration to say that Europe's core values and institutions are therefore going to be tested by this economic crisis in ways that perhaps we haven't fully come to appreciate." He also warned that, "the sense of solidarity that exists within the European Union, or that should be at the heart of the European bargain is actually under question and people are asking whether or not we can prevent a new iron curtain descending on Europe. The achievements of the last 30 years, the single market, enlargement and the euro, and I consider them all to have been achievements, are therefore being tested as never before."
Former EU Commissioner Peter Sutherland stated his confidence that the second Irish referendum on the Lisbon Treaty would result in a Yes vote, the first vote having been "ineptly handled politically" and coming in the aftermath of a domestic political crisis.
The Dutch Minister for European Affairs, Frans Timmermans, said that "the Dutch have become quite euro sceptical in general about the instruments of Europe...when talking about Europe, you immediately talk about the institutions, travelling from Brussels to Strasbourg and all sorts of other nonsense that we should have taken off the table a long time ago."
Sir Stephen Wall, Britain's former Permanent Representative to the European Union, suggested that the de Larosiere report on financial regulation was a rather "timid document, but the Commission document on the back of it is already proposing to go further." He also went on to say, "If, for the first time, the eurozone countries are compelled actually to make very large financial transfers from the richer to the poorer...then that will have big political consequences I believe in terms of the political management of the eurozone."
EUobserver
Mandelson: No plans to change EU law to force companies to pay foreign workers higher wages
In a hearing on migrant workers from the EU, Lord Mandelson yesterday told the Commons EU Scrutiny Committee that "I think it's important to note that the nationals coming here from the original eight new accession countries are helping to fill gaps in our labour market our British nationals are either not available to fill or are unwilling to fill." He continued, "There are jobs available for British nationals despite the circulation of workers that has resulted from EU enlargement."
On the question of whether the Government should try to change EU law to ensure that all workers in Britain should be paid according to agreed pay rates and not only the minimum wage, Mandelson said, "There are no proposals. The Government has not discussed it", reports the Times, while the Mail quotes him saying, "I can categorically rule out any introduction of restrictive measures which would prevent British nationals benefiting from these opportunities overseas."
Conservative MP James Clappison said that Mandelson used "misleading" statistics from 2001 when arguing that there are "600,000 more UK nationals had jobs now than in 2001". Clappison said that since 2004 - when ten new countries joined the EU - the number of employed UK nationals had dropped by 200,000 and the number of migrants in work had grown '"substantially".
Times: Parliamentary sketch Mail Mirror Telegraph
EU "at odds with the US" over global stimulus;
EU ministers to call for doubling of IMF resources and tighter regulation
The IHT reports that EU finance ministers will today push to double International Monetary Fund resources to 500 billion dollars, and will back the use of new sanctions against 'tax havens', according to a draft statement. The WSJ notes that the draft seems to put the EU "at odds with the US", with Washington set to emphasise the need for bigger economic stimulus packages at the G20 summit on April 2, while playing down proposals to strengthen international financial regulation.
EUobserver notes that speaking late yesterday evening following a three hour meeting of eurozone finance ministers, the group's president, Jean-Claude Juncker, signalled that the recent US call for a global spending boost in 2009 was in direct contrast to what eurozone finance ministers considered appropriate.
In the Guardian Alistair Darling urges the EU and the G20 to step up efforts to support developing and emerging economies, particularly in central and eastern Europe. He writes, "We need to increase financing through the IMF and multilateral banks, through swap-lines between central banks and an enhanced lending facility at the EU level." Thomas Mirow, President of the Bank for European Reconstruction and Development, echoed this view in Le Figaro, calling on the European Commission to "send a clear signal of solidarity to Eastern Europe."
EUobserver reports that Romania could receive about 20bn euros as part of an International Monetary Fund-European Union rescue package.
Le Figaro notes that China, which holds 2 trillion dollars in foreign exchange reserves, will be asked to share a large burden of IMF funding.
Meanwhile, the WSJ notes that European Central Bank President Jean-Claude Trichet suggests that the economic crisis is nearing rock bottom. "We're approaching a moment where we might have a pickup," he said, citing a modest rebound in corporate-bond markets as one positive sign.
EUobserver WSJ Guardian: Darling Irish Times Irish Independent IHT Telegraph EurActiv WSJ 2 EUobserver 2 IHT FT European Voice Le Figaro Le Figaro 2 DPA
New study: Domestic political factors not the crucial factor in Irish 'No' on Lisbon Treaty
An analysis of voting behaviour in the Irish referendum on the Lisbon Treaty by the UCD Geary Institute has suggested that that concerns about the loss of a permanent Irish commissioner were a "substantial consideration" in leading people to vote No, according to the Irish Times. The team also found that domestic political factors and satisfaction with the government was not the crucial factor it is commonly held to be.
Irish Times
The new pan-European political party Libertas, which will campaign against the Lisbon Treaty in the European elections, are launching their British campaign in London today.
BBC: Mardell blog
In an article in the Washington Times, Richard Rahn cites from Open Europe's recent report on the cost of regulation to the UK.
Washington Times: Rahn Open Europe research
Guardian: Only people agreeing with all the EU's key policies should be allowed to hold Presidency
A leader in the Guardian argues that the critical stance on the EU's current direction taken by Vaclav Klaus, the president of the Czech Republic - whose country is currently holding the rotating Presidency of the EU - illustrates the need for a permanent President of the Union. The leader argues, "The EU can ill afford the luxury of amateur voices, let alone of populist, Eurosceptic neoliberals like Mr Klaus...Why should it tolerate a representative, however symbolic and temporary, whose prejudices are anathema to its key policies?"
Guardian: Klaus
French Defence Minister: France will strengthen ties with the US
Le Point notes that Herve Morin, the French Defence Minister, has said that France will seek rapprochement with the United States to project its voice in the international political arena. Prime Minister Francois Fillon confirmed this notion, stating that, "reviving the Atlantic alliance will help prioritize France's international objectives."
The FT notes that French President Nicolas Sarkozy hopes that France's re-accession to NATO will strengthen its arguments for a more substantial European Union defence policy, rather than weaken its independence as some critics of the move have noted.
Le Point FT
EU unlikely to reduce VAT under Czech Presidency
Miroslav Kalousek, the Czech Minister of Finance, said that he is "not excessively optimistic" about a temporary waive of the minimum European VAT rate - currently set at 15%. The proposition seeks to allow EU countries to apply a reduced VAT rate in a select portfolio of sectors, the service industry and construction being the current focus, with the intention of reinforcing the effects of economic stimulus.
The majority of EU finance ministers support the idea, but unanimity is required. Germany in particular has objected to a VAT reduction in certain sectors.
Le Point Touteleurope
EIB losing patience with car companies
The Times reports that car companies were told yesterday that the European Investment Bank (EIB) had rejected their call for 40 billion euros in soft loans this year because that amount would contravene good banking practice.
Meanwhile, EUobserver reports that the EIB will increase its overall lending to 66bn euros in 2009, an increase of 15bn on initial plans. The EIB does not rely on member-state contributions, instead raising money for lending on the international capital markets by issuing bonds.
WSJ Times Guardian EUobserver
Poland demands promised missile shield
In a television interview, Polish President Lech Kaczynski has said that the US is obliged to install the missile shield in Poland under bilateral agreements signed last summer, according to the Telegraph.
Telegraph
Destatis, the German office of statistics, has announced that German exports have drop 21% on the previous year.
Le Point
The FT Brussels blog reports looks at a new report from Allianz and the Lisbon Council, which argues that EU countries will fall short of the goals in the Lisbon Strategy of economic growth and employment levels because of the recession, and that Italy's persistent lack of competitiveness is a long term concern for the eurozone.
FT: Brussels blog
Anders Fogh Rasmussen, the Danish Prime Minister, appears set to become the new Secretary-General of Nato, following a private agreement by the leaders of Britain, France and Germany to back his candidacy.
FT
MEPs on the European Parliament's Industry Committee voted last night in favour of fixing mobile-phone roaming charges, by capping the cost of sending a text message from July this year.
European Voice
In an article on the BBC website, EU Communications Commissioner Margot Wallstrom suggests that gender discrimination remains widespread in Europe and that a new campaign by the European Women's Lobby is urging the Council to appoint women to top EU jobs.
BBC
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.
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