Open Europe press summary: 23 March 2009

Europe

New research from Open Europe finds that EU Commissioners will take home more than £1 million each on leaving office
New research from Open Europe has found that European Commissioners leaving office this year could receive more than £1 million in pension payments, 'transitional' payments and 'resettlement' allowances.

Page 2 of the News of the World reported that the longest serving Commissioners, Commission Vice-Presidents and Communications Commissioner Margot Wallstrom and Industry Commissioner Gunter Verheugen, will receive the largest amounts with pension funds worth almost £1.8 million. The article quoted Open Europe Director Lorraine Mullally arguing that, "While taxpayers struggle in the recession and worry about losing jobs, their money is going to pamper grossly overpaid eurocrats with eye-watering salaries. It's outrageous this team of unelected Brussels civil servants walk away with these vast sums. This is totally unjustified."

The Telegraph reported that even UK Commissioner Catherine Ashton who replaced Lord Mandelson, and who has been in the job for less than a year will qualify for three-years of transitional allowances, worth over £89,000 a year, and that the pension costs alone of the five-year Barroso Commission amount to more than £33 million.

The article quotes Open Europe' Sarah Gaskell saying that, "Even Sir Fred Goodwin would be impressed at the size of the pensions that Commissioners are walking away with...Taxpayers around Europe, whose pensions have been swallowed up in the recession, will rightly question why they are footing such an enormous bill for a handful of remote officials who they never voted for in the first place."

Slovenian daily Dnevnik, Swedish daily Dagens Nyheter and Norwegian news website N24 also reported the story. Swedish Television also featured the findings.
Dnevnik Telegraph News of the World N24 Dagens Nyheter Swedish Television Open Europe press release

Booker: Where is the outrage that the EU working hours directive will cost British economy £11.9M?
In the Sunday Telegraph, Christopher Booker looked at the potential end of the opt-out from the EU's 48 hour working week, which, he argues, "threatens to be by far the most costly law ever imposed on Britain". He notes that, "as the think tank Open Europe has been trying to highlight in an admirable analysis...making it a criminal offence for any of us to work more than 48 hours a week will cause havoc across British life." He cites estimates that losing the opt-out could drive up costs to the UK economy from the present £3.9 billion a year to as high as £11.9 billion. However, he notes, "because our politicians can do nothing about it, they don't want to talk about it." He says, "There was a time when a report such as that from Open Europe would have come from the Conservative Research Department. But now vast areas of how we are governed are ruled off-limits for discussion by our politicians, led by Mr Cameron, because to mention them might remind voters how much of the power to govern ourselves they have given away to a government beyond democratic control."

Today's Telegraph notes that the end of the opt-out could increase council tax if local authorities are forced to pay more permanent fire-fighters rather than retained ones. Capping the working week at 48 hours would mean that retained fire-fighters - who hold second jobs - will no longer be able to provide the necessary emergency cover. According to the Conservatives, the tax on band D properties could rise by between £59 to £167-a-year if the opt-out is lost. The article also quotes from Open Europe's latest report on the WTD.

Meanwhile, Open Europe Research Director Mats Persson has an article in Brussels-based Shift Magazine, arguing that "scrapping the opt-out from the 48 hour working week would land yet another blow to the EU economy, at a time when we can afford it the least even if the new rules don not come into force until 2011. Indeed, we will be paying off the recession for years to come." Mats was also quoted on Spanish news site EL Confidencial.
Telegraph Sunday Telegraph: Booker Shift Magazine: Persson El Confidencial Open Europe Press Release Open Europe Rsearch

Leading opponent of UK's 48-hour opt-out pockets thousands in MEP allowances
The News of the World reported that Labour MEP Stephen Hughes is claiming his full £42,000 office allowance this year, despite his office rent being just £1,642. He also pays his wife, a local Councillor, £40,000 to be his "chief of staff". The paper notes that he is not breaking any rules, as the EU permits members to claim the full amount even if they do not spend it. It also notes that "he could have raked in hundreds of thousands from the benefit over his 25-year MEP career." Stephen Hughes is leading the European Parliament's campaign to end the UK's opt-out from the 48-hour week.
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Britons convicted in absentia could face deportation to other EU states
An article in Saturday's Telegraph reported that Britons convicted in trials in absentia face deportation to a foreign jail after EU ministers surrendered their right to oppose extradition. All EU countries will have to provide is a form which says the Briton was informed of his trial, and offered legal representation, even though the assurances might be worthless. It reported that Jack Straw, the Justice Secretary, agreed to the changes as part of the Government's commitment to further EU integration.

The article quoted Open Europe's Pieter Cleppe warning that "This could open the door to serious miscarriages of justice and ministers should not be supporting it. One British man only found out that he had been tried and convicted of grievous bodily harm in Germany when he was later subjected to a Criminal Records Bureau check by a new employer."
Telegraph EU Referendum blog EU Referendum blog 2 Open Europe briefing

In a comment piece in Saturday's Irish Independent in which he argued in favour of the Lisbon Treaty, James Downey admitted: "The antis are right about one thing, if one thing only. Any guarantees we may get on their concerns will be irrelevant, or worthless, or both."
Irish Independent

Neville Jones: EU data retention laws will not face proper Parliamentary scrutiny
On Conservative Home, Pauline Neville-Jones, Shadow Security Minister, writes that the Data Retention (EC Directive) Regulations 2009, to be considered by the House of Lords tomorrow, will require service providers to retain records about the source, destination, date, time, duration and type of online communications used by their customers. She notes that in the Queen's speech, the Government said that it would introduce a Communications Data Bill, which would have allowed proper Parliamentary scrutiny of the proposals. However, the new rules are being introduced by simply amending existing legislation in the form of a Statutory Instrument, "introducing sensitive new powers in a way that short circuits Parliamentary scrutiny".

Meanwhile, the Guardian reports that a quarter of all the Government's largest database projects, including the ID cards register, are fundamentally flawed and clearly breach European data protection and rights laws
Guardian Telegraph Conservative Home: Neville-Jones

Gordon Brown claims EU is united ahead of G20 as France is accused of protectionism over state-backed car plant relocation
On Friday, the Evening Standard reported that Gordon Brown claimed that the EU was "united" on moves to tackle the global recession despite accusations over French protectionism. The Prime Minister said that the two-day Brussels summit had "laid the foundations" for the London G20 meeting next month, with plans for international co-operation on regulation and public spending. In addition, Brown said, "we are an anti-protectionist European Union. We must remain vigilant at all times to any form of protectionism - covert or overt."

However, on Saturday the Independent reported that the French government announced that the assembly of some Renault cars would be shifted from Slovenia to the Paris area, creating 400 new jobs. The paper noted that President Nicolas Sarkozy had infuriated eastern European members of the EU last month when he linked €6bn of cheap loans to the French car industry to a guarantee that jobs would remain in France. President Sarkozy said, "This does not take away one job from our Slovene friends."

The Weekend FT quoted French Industry Minister Luc Chatel saying the move showed that the French government aid package was "beginning to get results". EU Competition Commissioner Neelie Kroes was quoted in the Independent, saying, "I am highly surprised with this last message, for the same person ... wrote me not that long ago, less than a fortnight, to say the loan agreements with manufacturers would not contain any condition regarding either location of their activities or preference for France-based suppliers." Renault denied the move was linked to a pledge to keep jobs in France in exchange for state aid, but the European Commission said it would seek urgent clarification.The Commission has written to Paris seeking clarification about the move.

In a somewhat divisive manner, notes Le Monde, Sarkozy also issued concern about financial operations in overseas UK territories. "There will be no exception," to financial regulation, he said, adding that "our [Europe's] credibility depends on our capacity to refuse all exceptions."

Meanwhile, Saturday's Guardian reported that EU leaders backed Jacques de Larosiere's report calling for a new regulatory system for financial markets, banks, hedge funds and private equity groups. However, the article noted that "crucial differences, tactical and substantive, remain" between member states. The paper reported that while the UK agreed that the French economist's report represented an acceptable basis for drawing up a new system, Gordon Brown stressed "we also need to ensure that supervision is done at a national level".
FT: Leader FT Guardian: Elliott Guardian 2 Guardian: Leader Evening Standard Times: Leader Times: Duncan Guardian 3 FT 2 Independent Telegraph Guardian 3 Le Monde Coulisses de Bruxelles BBC BBC: Mardell blog NRC Handelsblad

Cowen refutes claim Ireland will be bailed out
Responding to a claim by Otto Bernhardt that the EU has arranged a bailout package of Ireland and Greece, Mr Cowen insisted no plan to stop eurozone members going bankrupt was in the offing reports the Independent. Moreover, the Irish Times notest that the ECB also denied Mr Bernhardt's comments that it had set up a special reserve fund to bail out euro members.
Irish Independent Irish Times

EU considers mandatory derivatives regulation
The WSJ reports that the EU is looking into possible legislation regarding the way that the derivatives market could be regulated. Previously, European regulators had said they were considering extending to the derivatives market a voluntary code of conduct, but people close to the Commission now expect a push for a mandatory code. Earlier this month the European Parliament and Council initiated a report, which is yet to publish its recommendations, to suggest ways to fill the gaps where existing regulation insufficient or incomplete.
WSJ

Klaus: The Lisbon Treaty will make the EU's "democratic deficit" even greater
In an interview with the Sunday Times, Czech President Vaclav Klaus said that he sees a "democratic deficit" in a growing distance between the citizens of the EU member states and the EU political elite. He also said that, "About seventy-five percent of our legislation is now made in the EU by unelected officials and there are attempts in the Lisbon Treaty to give them even more power...and to abolish the member states' right of veto in a number of important areas. This certainly is not a solution to the democratic deficit, it makes the democratic deficit even greater."

He also said, "I think it is legitimate to be critical. Not everything that comes from the EU is good in itself, not everything should be accepted unquestionably, as something sacrosanct and untouchable."
Sunday Times

EU's emissions trading scheme 'undermined by boom and bust'
The Guardian reports that, ahead of tomorrow's auction of new carbon emission certificates by the UK Government, the Carbon Trust and PricewaterhouseCoopers have urged reform of the EU's carbon emissions trading scheme. Reportedly both have argued that price controls may have to be introduced to stop a further fall in the cost of emitting carbon, already down from around €30 per tonne to just over €10.

Meanwhile, Saturday's Guardian reported that "despite official optimism, government insiders privately admit" that the task of Britain meeting its EU target of generating 15% of its energy from renewable sources by 2020 "is hopeless."
Guardian Guardian 2

Hungarian PM ready to resign
The IHT reports that the Hungarian Prime Minister, Ferenc Gyurcsany, will step down. The FT says that this will only add a "new bout of political uncertainty" into an already unstable country. "Although Mr Gyurcsany had reduced the budget deficit, he had failed to win public support for wider economic reforms." A vote of no confidence will be held in the Hungarian parliament on April 14 to formally confirm his departure, which is still not concrete.
IHT FT BBC AFP WSJ De Morgen FTD

The Czech government faces ousting as parliament vote, a development which could affect Lisbon ratification
Euractiv reports that after threatening to acquire support for a vote to oust the the current Czech government, the Civic Democratic Party (ODS) MP Vlastimil Tlusty said the government had made enough errors and it was time for it to quit. This could threaten the ratification of the Lisbon Treaty.

Meanwhile, Jean Quatremer notes on his Coulisses de Bruxelles blog that the Czech government has decided to postpone ratification of the Lisbon Treaty until the Autumn - around the same time as Ireland votes again on the Treaty.
EurActiv Coulisses de Bruxelles

Germany's ruling coalition divided over Opel bailout
The WSJ reports that, six months before Germany's General Election, cracks are appearing in Angela Merkel's ruling coalition over how to rescue troubled carmaker Opel. The junior coalition partner, the Social Democrats (SPD), have called for the government to buy a stake in the carmaker to avoid its collapse, but that has been rejected by the Christian Democrats (CDU), Angela Merkel's party.

The Irish Times reports that the CDU have refused "special treatment" for Opel until parent company, General Motors, presents a rescue plan that guarantees not to siphon off any funds made available for Opel.
IHT Irish Times WSJ

Norwegians oppose joining the EU says recent poll
A poll released Monday by Sentio shows that nearly 55% of Norwegians do not support joining the European Union. 33% were in favour. Heming Olaussen, an advocate against EU membership for Norway says that "neither the financial crisis nor Iceland's alleged interest in E. membership seemed to have moved voters towards the yes side."
WSJ

Writing in Saturday's Independent, Andrew Grice wrote that, leaders and officials in 'Euroland' "expect Mr. Cameron to be attending EU gatherings from June next year." The article went on to say that, "Some senior Brussels figures who have held talks with Mr Cameron suspect his bite would be less strong than his bark, that he would prove a constructive European, realising that it would be in Britain's interests to cut deals and make compromises. "You cannot be a vegetarian in a beefeater club," one said this week."
Independent

In a comment piece in Saturday's Irish Independent in which he argued in favour of the Lisbon Treaty, James Downey admitted: "The antis are right about one thing, if one thing only. Any guarantees we may get on their concerns will be irrelevant, or worthless, or both."
Irish Independent

According to the BBC, the US supports Danish PM, Anders Fogh Rasmussen, as the next Secretary General of Nato. He already has backing from three Nato heavyweights: France, Germany and the united Kingdom.
BBC AFP

According to The Parliament, Paul Nyrup Rasmussen, the socialists' leader in the European Parliament, has criticised European Commission President Jose Manuel Barroso saying: "Pity he was just looking after his own employment rather than doing something extra for the millions who will become unemployed." The Parliament

The Financial Times Deutschland reports that Germany Chancellor Angela Merkel and Finance Minister Peer Steinbruck want to pressure the EU to abandon mark-to-market accounting in favour of model-based accounting.
Eurointelligence

The Irish Times reports that relations between Switzerland and Germany have reached a new low, following comments about banking secrecy from German Finance Minister Peer Steinbruck, comparing the Swiss to Indians scared of the US cavalry.
Irish Times FTD

Le Figaro reports that regardless of any further delay by Sarkozy to support Barosso for a second term as president of the EU Commission, "the path is clear for his nomination."
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In an interview with Saturday's Irish Times, US Secretary of State Hilary Clinton said that deeper European political integration, including the enhanced EU foreign policy role envisaged in the Lisbon Treaty, was in the United States' national interest, and was quoted saying "I believe [political integration is] in Europe's interest and I believe that is in the United States' interest because we want a strong Europe."
Irish Times

The News of the World reported that a new poll commissioned by Gordon Brown has suggested that the BNP could capture seven seats in the European Parliament elections in June, making them eligible for EU funding for staff and publicity.
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