Open Europe press summary: 24 April 2009

Open Europe is hosting a debate entitled "European Monetary Union: Second honeymoon or pending divorce?" in Brussels on Tuesday 28 April. Speaking at the event will be: Derek Scott, Vice-Chairman of Open Europe and former Economic Advisor to Tony Blair; David Marsh, author of "The Euro: The politics of the new global currency"; Ignazio Angeloni, Advisor to the Executive Board, European Central Bank. Chair: Paul Adamson, The Centre.

To register please send an email to meet@thecentre.eu with 'April 28' in the subject field, clearly stating your name and organisation. Or, for further information on this event, please contact Pieter Cleppe at pieter@openeurope.org.uk or on 00 32 477 68 46 08.

Europe

European Parliament approves proposal for NHS funded cross-border treatment;
Labour MEP: Hundreds of millions of pounds of NHS resources could be used to fund private health treatment in Europe
MEPs yesterday approved a controversial proposal which would guarantee patients who seek treatment in other EU countries reimbursement of their medical costs by the health system back home. Critics have warned that the proposal could favour the wealthy that can afford paying for healthcare out-of-pocket, while also putting the finances of the NHS under strain. According to PA, the Conservative MEPs backed the proposal, insisting that it clarifies patients' rights in the EU. However, Labour MEPs abstained in yesterday's vote, arguing that the rules on which type of medical treatment patients could be reimbursed for needed clarification. Labour MEP Arlene McCarthy is quoted on PA arguing, "The Tories' failure to back Labour's proposal for a clear prior authorisation system could see hundreds of millions of pounds of NHS resources diverted away from local investment to fund private health treatment in Europe...the plan will only help a wealthy minority."

Under the proposal, a European health ombudsman would also be set up to take care of patients' complaints arising from the law. There were 297 votes in favour of the proposal, 120 against and 152 abstentions, EUobserver reports. This was the European Parliament's first-reading position - the proposal is expected to require two readings and is unlikely to be concluded until the end of this year or possibly early 2010, European Voice reports.
EUobserver Mail Irish Times European Voice Open Europe briefing

New Open Europe briefing: What does the European Parliament do and how does it affect your everyday life?
Looking towards June's European elections, Open Europe has today published a briefing looking at the European Parliament. The briefing seeks to answer basic questions voters may be asking themselves ahead of the European elections in June this year.

The briefing also argues that the European Parliament could improve its reputation and gain more respect from voters by adopting some very simple and common sense reforms. For example, it argues that MEPs' wages be cut by 20% and allowances by 10%, from the levels that will apply as of June this year. Over a five year term of the European Parliament this could save taxpayers well over €220 million. MEPs' salaries and benefits would still be very generous and these cuts would bring their wages down to around the same level as UK MPs.
Open Europe press release Open Europe briefing

MEPs vote against bailing out their own pension fund with public money;
Waterfield: "Are these people liars?"
Sueddeutsche Zeitung reports that 419 Members of the European Parliament have voted against using taxpayers' money to fill the losses of the European Parliament's additional pension fund, declaring that "under no circumstances will Parliament in the prevailing economic situation provide extra money". The paper reports that, instead, MEPs have said that the pension fund should make up the shortfall by raising the retirement age from 60 to 63, scrapping an option allowing early retirement on a reduced pension, and ending the option to take out a quarter of pension rights in a lump sum. Daniel Cohn-Bendit MEP is quoted saying: "it is not possible that you vote on your own pension".

On his Telegraph blog, Bruno Waterfield comments that the "vote and the declaration are entirely meaningless" and asks, "are these people liars?" He adds: "There is a copper bottomed, cast iron, etc, legal requirement that means public funds will be used, if needed, to make up the shortfall, currently standing around £100 million, over the next decade. That obligation can only be changed by an EU council of national governments, it is written into something called the Member's Statute."
Telegraph: Waterfield blog AP Scotsman RN Welt

EP delays approval of Council's books
EUobserver reports that the European Parliament yesterday decided to delay approval of the Council of the European Union's accounts for 2007 until November. MEPs are hoping to scrap a "gentlemen's agreement" dating back to 1970, according to which the Parliament does not look into the books of the Council, which are checked by the Court of Auditors and national experts. If the Council continues to ignore the Parliament and not submit formal answers to its requests, concerning alleged undisclosed accounts, the legislature could reject the 2007 accounts in November, which the article argues could have "political consequences" for Javier Solana, the EU's foreign policy chief and Secretary-General of the Council.

The article quotes Open Europe analyst Stephen Booth saying, "MEPs should be credited for finally trying to end the charade whereby the parliament turns a blind eye to the expenditure of the council. It's about time the parliament took its role as watchdog over the EU's budget seriously. The more steps to bring the EU's opaque budgetary practices from behind closed to doors out into the open, the better".
EUobserver

German Agriculture Minister refuses to publish recipients of EU farm subsidies
Süddeutsche and Handelsblatt report that German Agriculture Minister Ilse Aigner has recommended that German federal states not publish the details of recipients of Common Agricultural Policy (CAP) subsidies, due to concerns regarding privacy. All EU member states are required to publish this information on 30 April under EU regulations.

Reportedly, the Commission has said it will start infringement procedures, unless Germany cooperates. A spokesman of Agriculture Commissioner Mariann Fischer Boel is quoted by Süddeutsche saying: "We are surprised about Germany's actions. Germany itself approved the regulation that the data needed to be published". The article notes that the German farmers' union, Deutscher Bauernverband, admitted to having "put massive pressure on the respective federal ministries" not to publish the recipients of the subsidies.
No link

MEPs approve stricter rules for credit rating agencies
MEPs yesterday voted 569-47 in favour of new regulation for credit-rating agencies operating in the EU. According to the FT, the rules will require agencies to apply to the Committee of European Securities Regulators in Paris for registration and be overseen on a day-to-day basis by "colleges" of national securities regulators. The regulation also includes significantly stricter rules on ratings agencies than those currently in force - ranging from disclosure of the models and methodologies on which they base their ratings, to corporate governance standards, such as the presence of at least two independent board directors whose remuneration is not tied to the agency's performance.

Although the regulation has been broadly welcomed, it has also been criticised for being a regional solution to a global problem. The FT quotes Jeremy Jennings-Mares, Capital Market Partner at law firm Morrison & Foerster, saying: "There's a danger that if regulation isn't globally co-ordinated, regulatory arbitrage opportunities will be created." Finance ministers are set to formally adopt the bill at a meeting in Brussels next month, EUobserver reports.
FT EurActiv EU Observer WSJ

Commission recommends cap on bank salaries and bonuses
The front page of the FT reports that draft recommendations from the European Commission would see all EU member states asked to bring in tougher remuneration rules for financial institutions operating in their country, for all staff whose activities affect the institution's risk profile. Director's termination pay would be limited to no more than two years of their fixed salary, and they would face a minimum three-year vesting period for share options. The Commission also proposes running an annual "scorecard" to show how member states are performing in terms of implementing EU guidelines.
FT Irish Times

MEPs give support to extending music recording rights
The Guardian reports that MEPs yesterday voted to approve legislation extending music copyright from 50 to 70 years. The initial proposal by the EU Internal Market Commissioner, Charlie McCreevy was 95 years but many member states were opposed to the length. Britain supported the 70 year extension and increasing guarantees to ensure royalties go to artists and not their music companies. The legislation passed yesterday does oblige record producers to allocate 20% of the extra revenue gained from the copyright extension to session musicians via a fund.

Austrian Green MEP Eva Lichtenberger said "If the legislation was truly about helping artists and consumers, MEPs would have agreed to give 100% of its benefits to performers and not just 20%".
FT Guardian European Voice

Industry attacks hedge fund regulation proposals
The Telegraph reports that the Alternative Investment Management Association (AIMA) and the British Private Equity and Venture Capital Association (BVCA) have attacked the details of the European Commission's forthcoming directive on hedge fund and private equity regulation. They accused the Commission of trying to achieve short-term electoral points rather than financial stability, and said it had been unduly influenced by French and German political groups who want to see regulation of the funds, which are mostly London-based.

EurActiv quotes a spokesman from the BVCA saying, "A process which should usually take many months has been reduced to mere weeks. Consultation with the private equity industry has been non-existent and the political motivations for the proposal seem to far outweigh any economic motives". However, Poul Nyrup Rasmussen, President of the Party of European Socialists, said "This proposal has already been delayed too long".
EurActiv

Charlemagne: Politicians who resist changes to CFP will go down as cowards
The Economist's Charlemagne column looks at the Commission's Green Paper on reform of the Common Fisheries Policy and writes, "Politicians who resist radical changes to the CFP will go down in history not just as cowards, but also as despoilers."
Economist: Charlemagne Telegraph: Waterfield blog EU Referendum blog Irish Times

The Organisation for Security and Cooperation in Europe has said that the expectation of low voter turnout in the European elections "remains a concern because of its implications for the legitimacy of the elected EP."
EUobserver

Dutch Europe Minister Frans Timmers has described the Romanian plan to grant citizenship to one million of Moldavians as an "extraordinarily unintelligent" step which would have serious consequences.
Telegraaf

The Telegraph reports that new EU thresholds for nutrition claims on food have been criticised by the consumer watchdog Which?, who say that the new thresholds for salt, sugar and fat in foods are set so high as to be worthless.
Telegraph

Le Figaro reports that José Manuel Barroso has declared that he has "no doubt" that Nicolas Sarkozy will support his second mandate as European Commission President.
Le Figaro

El Mundo reports that the European Parliament yesterday gave its support to creating a compensation system for passengers travelling by boat or bus who incur delays. Such a system already exists for plane and train travellers.
El Mundo

El Mundo reports that the artist who designed the Entropa mural in the EU Council during the Czech EU presidency, will withdraw it early in protest against the fact the EU is now in the hands of "pirates".
El Mundo

El País reports that Italian PM Silvio Berlusconi has announced he will move the G8 summit from Magdalena to L'Aquila, provided member states agree.
El País Le Monde

Economics Professor Shanti Chakravarty argues in the Guardian that more European integration is not the answer to saving the world economy.
Guardian: Chakravarty

The EU has pledged at least £40 million in aid for Somalia.
European Voice BBC Le Monde Le Figaro

In the Irish Independent, David Quinn writes that Libertas "may be the force to create a stronger EU". He notes that, "If Libertas becomes powerful enough to make the EU obey its own rules it would be doing the EU a huge favour."
Irish Independent: Quinn

MEPs have backed a temporary freeze on "use it or lose it" rules on airline slots, to soften the impact of the financial crisis on the airlines that have lost demand in passenger and freight transport. The MEPs called on the Commission to draft a new regulation for the future of airport slots.
Euractiv

UK

The Times reports that Sir Christopher Kelly, the Chairman of the Committee on Standards in Public Life, has joined calls rejecting Gordon Brown's proposed reform of MPs' expenses to replace the second homes allowance with a daily allowance payment.
FT Mail Economist Guardian Times Independent

New coal power plants must capture carbon
The Telegraph reports that UK Climate Secretary Ed Miliband has said up to four new coal-fired power stations will be built in Britain by 2020, but the plants will have to be fitted with carbon capture and storage technology. However, the article reports that the technology is unproven on a large scale, and carbon capture and storage will only be required to cover a portion of the carbon dioxide the power stations produce.
FT Mail Telegraph Guardian Times

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