Open Europe press summary: 6 May 2009

Europe

Open Europe is holding a morning debate entitled, "Westminster or Brussels: Who rules Britain?" at the House of Commons in London on Monday 11 May. Speaking at the event will be Gisela Stuart, MP for Birmingham Edgbaston who represented the UK
at the Convention on the Future of Europe; Lord Trimble, former First Minister of Northern Ireland and member of the Lords EU Select Committee; and David Heathcoat-Amory, MP for Wells and member of the Commons EU Scrutiny Committee.

Places are limited. To register, please contact Sarah Gaskell at sarah@openeurope.org.uk or Tel: 020 7197 2333.

£62.3 million in EU funding compromised in UN projects
MEPs on the European Parliament's Budgetary Control Committee have urged the Commission to drop funding for UN programmes that lack proper oversight, following a failure to investigate allegations of criminal activities among staff on the UN mission in Kosovo, according to European Voice.

On his Telegraph blog, Bruno Waterfield reports that at least £62.3 million of EU funding has been severely compromised in two economic projects, supervised by the UN. He quotes from a confidential letter sent to the Commission from the European Parliament which says, "Parliament must have assurance evidence in order to be able to accept channelling about a thousand million euros on a yearly basis to international organisations".
European Voice Telegraph: Waterfield blog

New Czech government unveiled ahead of Senate's Lisbon vote;
Klaus may delay signing Treaty until after British election
The Czech Senate will today vote on ratifying the Lisbon Treaty. Informal polls conducted by several Czech newspapers suggest the Treaty will pass the Czech Senate, but only just, the BBC reports. If the Treaty is ratified several Civic Democrat Senators have already vowed to send the Treaty back to the country's constitutional court for a new legal challenge. Before it can become law, the Treaty also requires the signature of Czech President Vaclav Klaus, who is openly critical of the document.

La Croix quotes Daniel Cohn Bendit, German Green MEP, saying that Klaus is "like the German President: his personal judgement doesn't count". Cohn-Bendit is also quoted saying that the ratification of the Treaty in the Czech Republic "depends on the bank account of the Czech President and on the number of senators' votes he has bought".

The article notes that a senior source in France's UMP Party has said that Klaus "may delay his signature until the British elections next year", because the Conservatives have promised a referendum on the Treaty should they come to power.

Meanwhile, professional statistician Jan Fischer is expected to be formally approved on Friday as the country's new Prime Minister. The current Deputy Foreign Minister Jan Kohout is to take over as Foreign Minister. Kohout is an ex-Communist Party member and a former Czech ambassador to the EU and UN, who also took part in drafting the original EU Constitution. The new team will meet with European Commission President Jose Manuel Barroso next Tuesday to discuss the Czech's ongoing Presidency of the EU.
BBC EUobserver HS La Croix

French Finance Minister: EU should push for 'maximalist' regulations of hedge funds
French Finance Minister Christine Lagarde has said EU governments should insist on much tougher rules for hedge funds and other investment vehicles than those proposed last week by the European Commission, the FT reports. Lagarde said at a meeting of the EU's 27 national finance ministers, "The Commission's proposal is way below the demands that Europeans should have. It is regulation at its minimum. We need to have a maximalist position at the start." Paris is particularly objecting to proposals that would allow offshore funds to be marketed across the EU provided conditions were met.

In the IHT, Margaret Doyle, a columnist for Reuters, argues that the proposed directive "should be thrown out. It is a distraction in itself. But if implemented, it will open the door to further attacks on the competitive financial markets with little benefit in terms of economic stability."
FT FT: Letters FT: Lex

EU civil servants under investigation for benefit fraud awarded money from EU due to mishandling of investigation
The Berlaymonster blog reports that 14 EU civil servants investigated for suspected injury benefit fraud have each been awarded €3,000 from the EU, after it transpired the EU's fraud watchdog, OLAF, failed to tell them that they were to face criminal proceedings in Italy.

The ruling has its origin in a 2002 investigation into suspected widespread benefit fraud at the EU's Joint Research Centre (JRC), based at the Italian town of Ispra on the shore of Lake Maggiore. In a 2002 audit, 230 officials at the JRC - one fifth of the total number of employees there - were found to be claiming a disability benefit. €5.7m was disbursed to staff between 1996 and 2002, an average of €25,000 each.

The article notes that 43 staff declared at least nine accidents each between January 1986 and July 2003. OLAF said that this "could appear, at first sight, suspect, and should be the object of an in depth review".

However, on referring the case to the Italian judiciary to conduct an investigation, OLAF neglected to inform the civil servants. The EU's court for civil service employment disputes ruled last week that this was in breach of their rights of defence, and awarded the 14 who brought a complaint €3,000 each in damages.
England Expects Berlaymonster Court ruling

Sarkozy: France stopped Georgia from being wiped off the map
The FT reports that in a speech in Nimes yesterday, French President Nicolas Sarkozy sought to overcome the country's divisions on Europe with a rallying call to voters ahead of next month's European elections. He said, "We have the choice to be the plaything of events or actors in our own story. France cannot succeed without Europe." Referring to the French EU Presidency last year, he said: "If Georgia was not wiped off the map, if we got a ceasefire in Gaza and if Europe did not succumb to 'every man for himself' when the banking system threatened to go into meltdown, it is because France took up its responsibilities when it had the EU presidency."

According to Le Figaro, Sarkozy called for "a real European debate", saying, "Europe cannot claim to be a living democracy if there are no debates", which Le Figaro says was a response to those who criticised him for remarks he has made about British and Czech policy. He also called on Europe to establish "a committee of banking regulators with real sanctioning power", and called for a central European gas buying body. Reuters quotes him saying, "I will not back down on the need to have a real energy policy. I want to introduce the idea of a central gas buying body so that Europe has a really strong negotiating position opposite its suppliers." Libération reports that Sarkozy said Europe should adopt "concerted economic policies" and a common industrial policy.

According to Le Monde, Sarkozy reiterated his view that Turkey "has no vocation to become a member of the EU", calling instead for the EU to create "a common economic and security area" with Turkey. The paper notes that Sarkozy thus "relegated" Ankara to the level of Russia, for whom he is proposing the same alliance. He said the idea is to create "a large space of more than 800 million inhabitants who share the same prosperity and security," which would allow Europe to stop "diluting itself with endless enlargement." He said he wanted to "change Europe. It is that possible? My response is yes: we did it during the French presidency."
FT Le Monde Le Figaro Liberation Reuters Le Point Le Monde

MEPs to vote on controversial asylum package tomorrow
European Voice reports that the political groups in the European Parliament are finalising their positions on a contentious package of measures on asylum ahead of a plenary vote tomorrow. When MEPs on the Civil Liberties Committee voted last week on the package, they made some controversial additions to the Commission proposal, including a mandatory solidarity clause that would see member states taking in asylum-seekers from over-burdened member states.

Member states are still discussing the package in the Council of Ministers and are not expected to come up with a common position before the European Parliament elections in June.
European Voice

MEPs vote on controversial telecoms package today;
Critics argue vote could have profound consequences for internet access
The European Parliament will today vote on its "telecoms package", which could have important consequences for rules governing internet access in member states. Swedish daily Dagens Nyheter reports that the proposals have received much criticism from MEPs because they lack clear guidelines. Referring to the prospect of an EU law which could allow internet providers to cut off internet access after three warnings, Swedish MEP Lena Ek said, "Think about sending three nasty letters, after which the post office stops delivering your mail or restricts you from sending more. This is how the package feels".

National MPs in France are currently considering a 'three strikes' law for internet users caught downloading copyrighted content, which could allow service providers to cut access for up to a year without a judicial hearing. Critics of the EU's telecoms package argue that the new EU rules will not make it clear whether a court order is required before internet access can be cut.

Conservative MEP Malcolm Harbour said: "The Telecoms package has never been about anything to do with restrictions on the internet...There is absolutely nothing in this proposal that says anything about that."
DN Petition Blackout Europe EP Harbour VNU Inthenews European Voice

MEPs insist on including self-employed drivers in EU working time rules for road transport workers
MEPs have rejected a Commission proposal to amend the existing working time rules for road transport workers, because they said it did not take into account the European Parliament's demand for the full inclusion of self-employed drivers. When agreeing the original directive in 2002, the Parliament and the Council decided that it should in principle apply to self-employed drivers from 23 March 2009.

However, in its latest report on the directive, the Commission had concluded that there was not a decisive case for including self-employed drivers under the directive. MEPs stated that, "The European Commission proposal contradicts Parliament's demands for the full inclusion of self-employed drivers within the scope of the Directive after the transitional period by 23 March 2009".
EP press release

Conservative MEP criticises Cameron's decision to create new group in the EP
The Guardian reports that Conservative MEP Caroline Jackson has criticised David Cameron's plan to leave the European People's Party (EPP) grouping in the European Parliament as a "pathetic" move that would store up trouble for the party. She also described his approach to the EU as "dotty". The remarks came as Cameron yesterday launched the Conservatives' local and European election campaigns, urging voters to use the forthcoming local council elections as a referendum on Gordon Brown.

A leader in the FT argues that, "By withdrawing from the biggest parliamentary group, the Tories are surrendering power...What is more, membership of the EPP helps build strong relationships with the centre-right governments that tend to run Europe; that is not a small consideration."
FT: Leader Telegraph Guardian

European Small Business Alliance: There is a jungle of legislation for business
In an interview with EurActiv Tina Sommer, President of the European Small Business Alliance, has said that a growing number of small businesses are in danger of inadvertently breaking the law due to the proliferation of regulations, many of which are contradictory. She said, "In my experience, it is not a simple piece of legislation that causes problems, but the accumulation - sometimes even contraction and sheer amount - of laws that a small firm has to follow." The article also reports that businesses have so far been underwhelmed with the European Commission's 'Better regulation' initiative to cut the burden of 'red tape'.
EurActiv EurActiv 2 Open Europe research

MEPs vote to ban trade in seal products
MEPs yesterday voted overwhelmingly in favour of a ban on the sale of products from seals, directed mainly at Canada according to the Guardian. However, Bruno Waterfield's Telegraph blog argues that, "It is a campaigning tool for MEPs in a shameless bid to drum up 'the EU saves cute baby seals' support ahead of European elections on June 4."

Meanwhile, PA reports that MEPs have voted in favour of tougher rules on humane treatment of live animals used in research, such as a maximum pain threshold for animals, but stopped short of calling for a total ban.
Irish Times Times Independent EurActiv Telegraph: Waterfield blog BBC European Voice Telegraph: Hannan blog EUobserver El Mundo EU Mirror Guardian EP press release The Parliament AP HS Le Monde Coulisses de Bruxelles HS

Socialists in the European Parliament have said they will reject any bid by Jose Manuel Barroso to lead the European Commission for a second term unless he agrees to initiate more social policies.
EUobserver

FTD: DG Competition is the new centre of power
A comment piece in the FTD suggests that the Competition Directorate-General of the EU Commission has evolved as a new centre of power following the financial crisis. FTD reports that the chairs of several banks, such as Commerzbank, ING and several British banks had to negotiate their future in the provisional portable offices located in the courtyard of DG Competition. Reportedly, these offices are internally referred to as "torture chambers" for bankers.
FTD

Croatia accepts EU proposal to resolve border dispute with Slovenia
Euobserver reports that Croatia has accepted EU Enlargement Commissioner Olli Rehn's latest proposal aimed at solving the lengthy border dispute with Slovenia, currently blocking Croatia's EU membership talks. Rehn's suggestion is that both countries should solve the dispute via a five-member international arbitration tribunal that would operate in line with international law.
EUobserver El Mundo

Süddeutsche reports that the European Commission has given Germany a new deadline of two weeks to publish the recipients of CAP subsidies on the Internet, due to be done on 30 April.
Spiegel ORF Deutsche Welle Werprofitiert.de De Morgen EC press release EC links to different country websites

El Mundo reports that Romania and Spain have signed an agreement which encourages Romanian immigrants residing in Spain to seek employment in Romania. In return they will be able to claim Spanish unemployment benefits.
El Mundo El Pais

EIZ Niedersachsen reports that German Finance Minister Peer Steinbruck has criticised the Czech EU Presidency for apologising to Belgium, Luxembourg and Austria for including them on a grey list of tax havens.
EIZ Basler Zeitung De Morgen Handelsblatt Eurointelligence

An analysis piece in the FT describes tomorrow's expected interest rate cut from the European Central Bank as "what could be a defining moment in its 10-year history", and suggests it is unlikely to cut rates to below one percent.
FT

David McWilliams in the Irish Independent looks at Ireland's economic troubles and argues "The obvious answer is to leave the euro, reinstitute our own currency, allow it to plummet to reflect the real competitive position of our ruined, feeble economy and start again."
Irish Independent

Kosovo has said that the International Monetary Fund voted to accept it as a member, which the WSJ describes as an important step in the former Serbian province's efforts to secure global recognition as an independent state and international aid.
WSJ

Georgian authorities have accused Russia of conspiring to overthrow President Mikheil Saakashvili in an attempted mutiny at a military base outside the capital yesterday as political tensions erupted on the eve of month long NATO exercises in the country.
WSJ Telegraph Times

The Parlorama.eu website which classifies MEPs according to their attendance records, is due to reopen two weeks after it was closed following threats of legal action from some MEPs.
EUDebate 2009

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