Open Europe press summary: 1 May 2009

Europe

Independent's Business Editor: EU's proposed directive on hedge funds is financially illiterate and threat to the City;
Chairwoman of EP Economic Committee: We will not accept the EU's "very light" regulation
Libération's Coulisses de Bruxelles blog interviews French Socialist and Chairwoman of the Committee on Economic and Monetary Affairs in the European Parliament, Pervenche Berès, on the EU's proposal for tougher regulation of hedge fund and private equity legislation, tabled by the Commission on Wednesday. In the interview, she says there is no chance that the European Parliament will adopt a regulation that doesn't go much further, calling the existing proposal "very light".

Berès argues that "the aim of the text, in reality, is to apply the British system to the whole of the Union". She criticises the Commission for not going further with its proposal, saying that it isn't "on the same wavelength" as the European Parliament on this issue. She argues that excluding smaller funds from the regulation, will encourage splitting larger ones into several entities in order to circumvent the rules, saying that the regulation "must be applied to all actors and funds", including hedge funds involving less than €100m. She said, "It is also necessary to establish demands for equity for the funds themselves, to ensure financial stability and require them to make their investment strategy, debt and executive compensation transparent." She also emphasised the need to tackle off-shore funds.

Meanwhile, the Independent's Business and City Editor Jeremy Warner looks at the proposal, arguing: "The proposed European directive on hedge fund and private equity regulation is a financially illiterate dog's dinner of the oppressive and protectionist which flies in the face of the principle of subsidiarity and promises further to undermine the City's position as one of the world's leading financial centres...Drawn up without consultation, it doesn't deserve even to see the light of day, let alone be passed into law. Alarmingly, there is every chance that it will, as the directive requires no more than majority support in Europe, and among member states only Britain has a private equity and hedge fund industry of any size to defend."

The proposal will be decided by majority voting and needs the approval of both the European Parliament and EU ministers before it can become law.
Coulisses de Bruxelles Independent: Warner

European Arrest Warrant: Liberty says "British justice should not be circumvented in this way"
PA reports that Andrew Symeou, the 20 year old student accused of a nightclub killing in Greece, today lost an appeal in the High Court against moves to extradite him from the UK to stand trial. The judges ruled that extradition, which is being sought by the Greek authorities under a European Arrest Warrant (EAW), must go ahead. They said it was for the Greek courts to assess the quality and validity of the evidence. Symeou maintains that the case against him was based on evidence "fabricated, tainted and manipulated" by Greek police, who had ill-treated witnesses.

The EAW system allows deportation of a suspect once basic information about identity and the alleged offence is provided. British courts are not required to assure themselves that a case has been made out for the accused to answer before agreeing to extradition.

PA notes, "The case is the latest to spotlight concern over the use of EAWs...Critics say EAWs are open to abuse and the system offers insufficient protection to British citizens from deportation to another country following possibly false accusations."

The Campaigns Coordinator for Liberty, Sabina Frediani, is quoted saying "This alarming case highlights the dangers of summary extradition. No one should be sent anywhere, be it Europe, the US or elsewhere, without a case being made in a local court - British justice should not be circumvented in this way."
No link

Ambiguous compromise over EU telecoms package leaves future of controversial French internet piracy law uncertain
EUobserver reports that yesterday's compromise between the European Parliament and member states over a new telecoms package may not have resolved whether or not France's proposed internet piracy law contravenes EU law. The controversial French law would cut off internet access to users for up to a year if they are caught downloading copyright content without permission after having received two warnings. The law does not require a judicial hearing.

MEPs had previously voted for an amendment to the EU's telecoms package which would require a judicial ruling prior to internet access being cut. The article notes that yesterday's compromise between MEPs and national ministers softens the requirement for a court order before internet access can be cut, but still requires a judgement by "an independent and impartial tribunal".

The article notes that this ambiguity leaves Paris confident that it can move ahead with its law, while others believe to do so establishes grounds for the European Commission to begin infringement proceedings against France.
EUobserver

Commission begins talks on concessions to industries within EU's carbon trading scheme
Reuters reports that a draft European Commission report has revealed that the refining, cement and glass industries may get help dealing with the cost of meeting European climate targets to safeguard their global competitiveness in phase three of the EU's emissions trading scheme (ETS). The draft report on potential exemptions was circulated on Wednesday at a meeting between the European Commission, the 27 EU nations and representatives of industry and environmental groups.

Last year the EU agreed to cut its carbon emissions by 20% from 1990 levels by 2020 but deferred the decision over which industries would receive free 'permits to pollute' in phase three of the ETS, which runs from 2013 to 2020. The article notes that sectors such as aluminium that face an increase in costs of over 5 percent and have a high "trade exposure" are deemed at risk from overseas competition and will probably receive free permits to pollute between 2013 and 2020. In the Commission's original proposal, the number of free 'permits to pollute' available in phase three of the ETS was to gradually fall to zero by 2020.
Reuters Open Europe research

EU Commissioner criticises UK's 'backward' view on enlargement on fifth anniversary of EU's expansion
The Telegraph reports that EU Enlargement Commissioner Olli Rehn has accused Britain of having an irrational and backward looking view on the EU's eastward expansion and foreign workers. He made his comments as the EU marked the fifth anniversary of the 2004 enlargement, when 10 mainly central and east European countries joined.

"I know Britain quite well and I know the mood," said Mr Rehn. "I know there is some scepticism." He likened "scepticism" about EU expansion, especially in "established" countries such as Britain, Germany and France, to sentimentality for the 1960s. "I cannot see any rational reasons," he said. "There is plenty of sweet nostalgia. It is like Beatle records or George Best's performances at Man United. That belongs to a different era."
Telegraph Irish Times EurActiv European Voice: Rehn EUobserver

Libertas calls for directly elected EU President in manifesto
In Rome for the party's first convention, to be held today, Declan Ganley, the founder of pan-European party Libertas revealed parts of the party's manifesto ahead of June's European elections. According to the Irish Times, the manifesto calls for a short treaty to govern European cooperation, of no more than 25 pages which every citizen can read, understand and use. Only elected representatives should make EU law. Commissioners should be accountable to (and be able to be sacked by) the Council of Ministers and the European Parliament. Meanwhile, all MEPs and Commissioners' expenses should be published. All EU laws should be negotiated and decided in public. Savings of €10 billion should be made by the Commission in the next financial year.

The party is also committed to ensuring that every country holds a referendum on any future constitutional treaty, while future presidents of Europe should be elected by European electorates.
Irish Times

Writing in the Express, Frederick Forsyth suggests that the second Irish referendum on the Lisbon Treaty will be held on 10 October, describing it as the date on which "Mr Roche [Irish Europe Minister] and his colleagues are going to try to ram through a 'Yes' vote."
No link

Russia threatens "harsh" response to Nato expulsion of diplomats
Nato has expelled two Russian diplomats from Brussels in retaliation for a spying scandal which led to an Estonian official being jailed for 12 years, according to the Telegraph. One of those expelled was Vasily Chizhov, the son of Russia's Ambassador to the EU. European Voice reports that Dmitry Rogozin, Russia's Ambassador to NATO, has threatened a "harsh and decisive" response.

Meanwhile Russian President Dmitry Medvedev, has signed two pacts giving Moscow formal responsibility for the borders of Abkhazia and South Ossetia, according to the Telegraph. Nato condemned the move, saying it violated two ceasefire agreements brokered by the EU to end last year's war. In return, Medvedev called plans to carry out Nato exercises in Georgia next week, "an open provocation" and said: "All responsibility for possible negative consequences will lie with the people undertaking the relevant steps", reports the Times.
Independent Times European Voice BBC Guardian Telegraph

Irish regional weekly, the Southern Star looks at the issue of MEPs' expenses and quotes Open Europe's Pieter Cleppe on the issue of the controversial second pension scheme.
Southern Star Open Europe press release Open Europe blog

Socialist President: "We cannot support Barroso" for Commission President
In an interview with EurActiv, the President of the European Socialist Party (PES), Poul Nyrup Rasmussen, has said that, "As far as the PES is concerned, we cannot support Mr. Barroso" in elections for the President of the European Commission. Mr Rasmussen said that the PES would have their candidate if they won a majority in the European Parliament, adding "Everyone has agreed that in the case of a new majority, the new Commission president will not be Mr. Barroso."
EurActiv EUobserver

The BBC reports that Israeli media has indicated that Israeli displeasure at comments made in the EU regarding the Palestinian peace process are largely directed at EU External Affairs Commissioner Benita Ferrero-Waldner.
BBC El País

EU health ministers meeting yesterday agreed to share their stockpiles of anti-flu drugs but rejected a French proposal for an EU-wide travel ban to Mexico, which the World Health Organisation has said would be pointless, according to European Voice.
European Voice EurActiv EUobserver El País El Mundo

El Mundo reports that the European Commission has presented recommendations to ensure that Radio Frequency Identification chips respect privacy and data protection regulations.
El Mundo

The BBC reports that a spokesman from the European Commission has indicated that it might bring a case against Germany in the European Court of Justice if it fails to comply soon with requirements to disclose details of recipients of CAP subsidies.
BBC European Voice

Italian carmaker Fiat is to take a stake in American car manufacturer Chrysler, following Chrysler's application for bankruptcy proceedings.
Independent

The FT Brussels blog looks at a new book entitled, "The Euro at Ten: The Next Global Currency?", which outlines the reasons why the eurozone is too fragmented, among other reasons, to be the next global currency.
FT: Brussels blog

In separate letters to the Guardian, Baroness Sarah Ludford MEP and Claude Moraes MEP look at the threat of the BNP in the June elections and Mr Moraes argues that large mainstream turnout is the way to ensure that the BNP does not win a seat in the European Parliament.
Guardian: Letters

The FT reports that a new study sponsored by the European Commission has found that migration from east to west Europe is boosting the economy of the EU by nearly €50bn a year, or about 0.8 percent of GDP.
FT

On Conservative Home, Rupert Matthews argues that "UKIP is out of its depth as a political party and its MEPs fail to represent the British people."
Conservative Home: Matthews

Agence Europe reports that yesterday the General Council of the World Trade Organisation unanimously agreed the re-appointment of current Director-General Pascal Lamy for a second four-year term.
No link

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