Open Europe press summary: 20 March 2009

Europe

Czech PM puts ratification of Lisbon Treaty 'on ice';
German Ambassador to Ireland warns of "horrific consequences" if Ireland votes No in second referendum
Euractiv reports that Czech Prime Minister Mirek Topolanek has put the ratification of the Lisbon Treaty in the country's Senate 'on ice', after US President Barack Obama put plans for a US missile shield in the country on hold.

The Czech Senate has said it would be unable to move on ratifying the Lisbon Treaty without agreement on a missile shield. Asked to clarify whether the deadlock could spell the end of the Lisbon Treaty, Topolanek said in an interview with Czech news: "I think that is possible. But I would stress it is not entirely our responsibility. I will not instruct anyone how to vote [...] I have said that many times before."

On the possibility of being ousted in a no-confidence vote as a result of the deadlock, he said, "It does not worry me. It is something I have been facing since June 2006. If there is a will for someone else to rule, then let it be. Someone else can be in charge instead of me. It is always probable, and any politician must be ready to face that."

Meanwhile, EUobserver notes that the Irish government still hasn't ruled out an early date for a re-run referendum on the Lisbon Treaty. Irish Foreign Affairs Minister, Micheal Martin, said only that the government will stick to the timeline agreed at a summit of EU leaders last December. "The government has not formally made a decision on the date of the referendum," he said.

Euractiv reports that no final agreement on the so-called guarantees Ireland will get on the Lisbon Treaty is expected to be reached at the summit this week. The draft conclusions foresee a deal at the June meeting instead, meaning that a second referendum would likely be held in September or October.

The Irish Independent notes that European Parliament President Hans-Gert Pottering indicated yesterday that Irish PM Brian Cowen had told EU leaders that October would be the date for the referendum, but Micheal Martin denied this saying, "Did he? Well, we didn't mention that to him".

Meanwhile, the German Ambassador to Ireland, Christian Pauls, has defended comments he made earlier in the week, in which he suggested that Ireland would "throw away its future" if it voted No in a second referendum on Lisbon. Informed of the reports yesterday, Pauls told the Irish Times that while he could not recall using "those exact words", he admitted that he had said "something along those lines" at the event. He said, "A second No would have horrific consequences for Ireland and I am not the first to say it. I don't think there is anything particularly new in that." He also rejected suggestions his remarks could be considered undiplomatic. "They are not. I am simply conveying what my government thinks. That is my job." The paper also reports that Pauls ran into a similar controversy in 2007 when he said in a speech that Ireland's history is "sadder than Poland's".

In E!Sharp magazine, Liberal leader in the European Parliament Graham Watson says that, should the Irish deliver a second No vote, "The sky is not going to fall in. There is technically no reason why the Union should not proceed on the basis of the Treaty of Nice. Although of course then the Irish definitely lose their commissioner - somebody would lose a commissioner anyway."
Irish Times Irish Times E!Sharp EurActiv EurActiv Irish Independent EUobserver

Merkel leads EU rejection of UK and US demands for economic stimulus;
UK to clash with France and Germany over financial regulation
There is further coverage of this week's EU summit, with the Guardian reporting that German Chancellor Angela Merkel yesterday opened up a new rift with Britain and the US ahead of the G20 summit in London when she delivered a blunt rejection of extra fiscal stimulus packages advocated by Gordon Brown and President Obama's administration. According to the FT, Merkel said that Europe and the US should not become distracted in their efforts to regulate financial markets by "artificial discussions" over the size of their respective fiscal stimulus programmes. Czech PM Mirek Topolanek, whose country holds the EU Presidency, said that EU leaders were "unanimous in their views" that they "are going to be prudent" with economic stimulus plans.

The BBC notes that, instead of backing further stimulus measures, EU leaders are preparing to double to 50bn euros of emergency funding to help member states that need urgent budget support. European Commission President Jose Manuel Barroso said doubling the emergency funding ceiling to 50bn euros would be "a good signal that the EU is ready to show solidarity and support... to the countries that may need it".

EU leaders are also set to approve a "considerable increase" in funding to the IMF, with the EU ready to provide an extra $75bn to $100bn in loans. This would help double the IMF's capital to $500bn, with the support of China and the US. EurActiv reports that EU leaders are considering handing over some of their seats on the IMF to emerging economies, in exchange for a bigger financial contribution from them.

EUobserver reports that EU leaders have also finally agreed the terms and the conditions for spending €5bn on energy, broadband and agricultural projects, after four months of wrangling over where in the EU the money will be spent. Reportedly Germany accepted the deal on the condition that the funding would only run for two years. The FT describes the negotiations over the package as "tortuous" and several diplomats have described them as becoming a test of the EU's credibility and its ability to respond to larger challenges.

Meanwhile, the FT reports that Britain is heading for a clash with France and Germany over plans for a new EU framework for financial regulation. Reportedly, Paris fears a rift with the UK over the new EU regulatory structure recommended in a report for the EU Commission by Jacques de Larosiere, and endorsed by Lord Turner, Chairman of the UK's Financial Services Authority, this week.

The paper notes that Alistair Darling differs from other EU member states in demanding that the proposed pan-European supervisor be run by independent experts, rather than national representatives taking decisions by qualified majority vote, where Britain could be outvoted.

PA reports that Gordon Brown arrived at the EU summit proclaiming Lord Turner's report on tighter UK banking controls as a potential solution for the rest of the world. However, the article notes that Brown's blueprint has had little impact in Brussels. "Lord Turner's proposals are European ideas wrapped in a British flag. In many ways they are a cut-and-paste of the La Rosiere report," said one European diplomat, quoted in the Evening Standard.
Guardian WSJ IHT EUobserver EUobserver2 Times Independent FT FT 2 Evening Standard FT 3 FT: Brussels blog Guido Fawkes blog BBC: Mardell blog European Voice Deutsche Welle Economist: Charlemagne WSJ: Northedge FT: Wolf WSJ: Editorial BBC WSJ 2 FT 4 Irish Times European Voice 2 EurActiv

€126million of EU agriculture subsidies spent incorrectly
Agence Europe reports that yesterday the European Commission called on nine member states to pay back a total of €126.7m in money incorrectly spent under the common agricultural policy. The money will be returned to the Community budget.

Denmark has been ordered to pay back €100.6m due to weaknesses in its compliance controls, while the UK must pay back €9.5m for improper use of risk analysis and insufficient verification of documents.
No link

The Irish Independent reports that protesting dairy farmers in Ireland have blamed EU mismanagement for causing milk prices to fall below the cost of production, describing it as "cack-handed".
Irish Times Irish Independent

Poettering: Conservatives' decision to leave the EPP a "serious mistake";
New Commission President should be appointed by 15 July
The BBC reports that the President of the European Parliament, Hans-Gert Poettering, has called the decision of the Conservatives to leave the EPP a "serious mistake", adding that the withdrawal was "not in the interests of the UK".

Poettering has also proposed that the next President of the European Commission should be appointed on 15 July, the day after the first meeting of the newly-elected European Parliament, according to EurActiv. The article reports that the announcement seems to contradict a recent statement by French President Nicolas Sarkozy, who said the appointment of the next Commission President should take place after the second Irish Lisbon Treaty referendum, expected in October.
BBC EurActiv

Barber: Merkel for EU President?
In an article in the FT, Tony Barber argues that the Czech Presidency has exposed the failings of the rotating Presidency system in the EU, with its handling of the Gaza crisis and its response to the financial crisis. He argues for a permanent President of the EU who "commands respect among the member states" and suggests, "Who better than Angela Merkel"?
FT: Barber

FAZ reports that the leader of the Social Democratic group in the European Parliament, Martin Schulz, has denounced the Czech EU Presidency as a "total failure". Reportedly, Schulz said that the Czech Republic was so pre-occupied with the survival of its government, it was the worst presidency he had experienced since 1994.
FAZ

EU moves towards bilateral trade negotiations with Asian countries after slow progress with ASEAN
According to Handelsblatt, the EU is to change its trade policy towards Asia. Reacting to criticism from business, the Commission has said it wants to move towards more bilateral trade agreements with individual countries as opposed to only negotiating with the Association of South Eastern Nations (ASEAN). Trade Commissioner Catherine Aston is quoted saying, "The process with ASEAN has so far been very slow. Thus, we will see how we can proceed faster with single states that are willing to do so."
Handelsblatt

In an article in the Telegraph, Alasdair Palmer argues against the European Arrest Warrant and says it "is about showing the EU bureaucrats that we are committed to "ever-closer integration" - and if that means giving up our ability to protect British citizens from injustice, then that's just fine by our Government."
Telegraph: Palmer

An article on Conservative Home by Chris Heaton-Harris MEP offers a "Beginner's Guide to the 'Discharge of the European Budget'".
Conservative Home: Heaton-Harris

Handelsblatt reports that the leaders of the EPP officially nominated Jose Manuel Barroso for a second term as Commission President yesterday. The EPP said that if the party maintains its dominance after the June elections, then the Commission President should continue to be a centre-right politician.
Handelsblatt EUobserver

The BBC reports that French Unions have claimed that up to 3 million people have taken part in street protests over the government's handling of the economic crisis.
FT Mirror Telegraph BBC

The Danish Prime Minister, Anders Fogh Rasmussen, has said that the developing world must commit to carbon reductions if the EU is to stump up cash for making the adaptation measures to deal with climate change.
EUobserver

Turkey, which has held out against negotiating a support package from the International Monetary Fund, appears to be opening the way for a deal.
WSJ

In an article on Conservative Home, Ruth Lea argues that "Britain's unhappy relationship with the EU will not go away", and that discussions about membership of the EU are too often discussed in black and white terms of all or nothing.
Conservative Home: Lea

An article on Labourlist comments on the launch of a new party called, 'NO2EU yes to democracy', which has pledged not to take up any seats in the European Parliament if elected.
Labourlist EU Referendum blog

Neues Deutschland reports that the UK Conservatives are in talks with the Czech party ODS, the Polish PiS party and two Baltic members of the UEN faction on the formation of a new 'European Conservatives' party.
Neues Deutschland

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