Open Europe press summary: 10 June 2009

Europe

EU Commissioner Joaquin Almunia "fully confident" that Britain will be outvoted on proposal for EU financial regulator
European Voice reports that EU finance ministers yesterday adopted a text endorsing the broad tenets of the Commission's plans for more pan-EU supervision of financial markets. Crucially, there was no change on controversial plans to create three new EU authorities with the power to override national regulators in areas of banking, securities and insurances, despite attempts by the UK to water down the proposal. The Telegraph notes that the UK only managed to insert a provision in the joint statement saying that "such powers should not impinge in any way on the fiscal responsibility of member states". However, the Telegraph argues that the wording of the statement would still "appear to reduce Britain's Financial Services Authority (FSA) to a subservient arm of the EU apparatus, limited to 'daily oversight'".

European Voice also reports that apart from the UK, only Slovenia, Slovakia and Romania were among the countries raising concerns that the new pan-European authorities will be given too much power. The Times reports that the UK also received some support from the German Finance Minister Peer Steinbrück.

There was also criticism from the UK and Finland of the Commission's proposal that the President of the European Central Bank should chair the proposed new European Systemic Risk Board (previously proposed to be called the European Systemic Risk Council), responsible for overseeing and warning of risks to the EU economy as a whole. The UK Treasury has argued that only 16 out of 27 EU countries are members of the eurozone with a significant ECB role and would therefore not be adequately represented under the proposed arrangement, according to the Times.

The Czech Finance Minister, Eduard Janota, said that outstanding issues will "be dealt with politically" by EU leaders at their summit on 18-19 June, when the proposal is likely to be formally adopted. An article in the Irish Times argues that EU Monetary Affairs Commissioner Joaquin Almunia, "as good as said Britain was likely to be outvoted when the issue is discussed at a summit of EU leaders". EurActiv quotes him saying, "I am fully confident that the Council will support the Commission's proposal".
Telegraph European Voice EurActiv Irish Times Basler Zeitung Council EUobserver FAZ Volkskrant Nouvel Observateur DW Sueddeutsche City AM AFP Les Echos FT Times
Le Monde Les Echos 2 La Tribune

Brian Cowen vows to stay on as Irish PM, as he faces no confidence vote;
Opposition leader questions Cowen's ability to lead a second Lisbon referendum
The Irish Times reports that Irish Taoiseach Brian Cowen last night said that he fully intends to continue in office for the next three years and lead Fianna Fail into the next general election, despite disappointing European election results. The Irish Independent reports that the Irish governing coalition faces a vote of no confidence today. The paper notes that government Chief Whip Pat Carey expects to have a majority of five in the confidence vote. "The government will be submitting an amendment expressing the confidence of the Dail in the government. I would expect that to be carried," he said.

The Irish Times reports that Enda Kenny, leader of the Fine Gael opposition, has challenged Cowen's suitability to lead the Yes campaign in the next Lisbon Treaty referendum. "I hope the Irish people will pass the Lisbon referendum whenever it is decided to hold it," he said. "I am concerned, however, that arising from the vote of no confidence by the people last Friday, that the Taoiseach now faces a serious problem in attempting to lead our country to a point where its people will vindicate that in which we believe in terms of the Lisbon referendum and pass it."
Irish Times Irish Times 2 Irish Times 3 Irish Independent Irish Independent 2

The Mail on Glenys Kinnock: "Isn't she the embodiment of everything the nation voted against last Thursday?"
A leader in the Mail writes that the PM could not have chosen a worse candidate than Glenys Kinnock as Minister for Europe, saying "Isn't she the embodiment of everything the nation voted against last Thursday?" Glenys is a vehement supporter of the Lisbon Treaty, which clearly goes against the grain of current voter sentiment. The paper cites Open Europe's research, which shows Glenys is the most travelled UK MEP, clocking up an astounding 130.000 air miles. She also voted against an amendment which asked that the European Parliament "undertake to respect the outcome of the referendum in Ireland" on the Lisbon Treaty, and was among those MEPs who vetoed a proposal which would have ensured that MEPs' contributions to the second pension scheme could no longer be paid out of MEPs' allowances, but would have had to come out of their own pockets.

The paper also reports that Lord Kinnock quit as head of the British Council last night after he acknowledged that his role as Chairman could present a conflict of interest with his wife Glenys' new job as a Europe Minister.
Mail: leader Mail Mail 2 OE league table of MEPs OE blog

EU finance ministers propose burden-sharing scheme to finance battle against climate change
Yesterday, EU finance ministers proposed a burden-sharing system in which financial contributions would depend on member states' economic situation and their greenhouse gas emission levels, Süddeutsche reports.

Swedish Prime Minister Fredrik Reinfeldt is quoted in De Standaard saying that "the best way of achieving lower CO2 emissions would be taxation" and urges member states to lower emissions on the national level, since "the EU is not competent in such matters". Le Monde quotes him saying, "We have had a carbon-tax since 1991, and evidence shows it is the most efficient way to reduce emissions".
SZ Standaard Le Monde Open Europe Research

Reinfeldt rejects delaying appointment of new Commission President
EurActiv reports that Swedish Prime Minister Fredrik Reinfeldt has rejected the idea of postponing the appointment of a new European Commission President until after Ireland votes again on the Lisbon Treaty, probably in the autumn, saying "Sweden will do its part, but we also need a partner in the Commission president and he will be stronger with a new mandate than without". Reinfeldt also said that current Commission President Jose Manuel Barroso was the likely candidate, saying "I have only heard one candidate's name so far".

The FT reports that Reinfeldt has backed Jose Barroso for a second term as Commission President and said a delay in confirming Mr Barroso would weaken the Commission at a critical moment in its efforts amid a severe recession.

Meanwhile, Sueddeutsche Zeitung reports that Martin Schulz, Leader of the Socialist Group in the European Parliament, has said the socialist group will not support Jose Manuel Barroso for another term of the Commission, saying "Barroso stands behind the kind of politics we have tried to campaign against".
EurActiv Financial Times Eurointelligence Handelsblatt EUobserver

Sarkozy drops support for Blair as EU President
In an interview with El País, French journalist and former editor of Le Monde Jean-Marie Colombani says "unfortunately I think Durão Barroso will continue (as Commission President), but what now interests Sarkozy is who will be the President of Europe". This position will be created if the Lisbon Treaty is ratified by all member states. Colombani argues that although Sarkozy previously favoured Tony Blair for this role, he now "wants it to be Felipe González".
El País

Andrew Alexander: The Conservatives will need to address UKIP voters' concerns before general election
Writing in the Mail, Andrew Alexander notes that "the accepted analysis on the Tory side has been that UKIP voters will desert the party in a general election and return to their natural home as Conservatives. Some of them will, of course. But with UKIP putting up as many as 500 candidates and with the traction gained in the European elections, it does not need all that high a vote for the party to endanger a significant number of Tory seats." He adds that Cameron "needs to strengthen his own rather pathetic and studiously vague promises about the Lisbon Treaty and the EU's powers in general if he is to get back UKIP voters."
Mail: Alexander

La Repubblica: European elections show "triumph of the Keynesian Right over social democracy"An analysis in Italian daily La Repubblica by Bernardo Valli argues that the European elections signify "the triumph of the Keynesian Right over social democracy", adding that the right "was not squeamish with the budget, it put up with deficits to guarantee social benefits, it attacked the tax havens, lost no time setting up new market rules and nationalising banks" and that "right-wing neoliberalism has become super-Keynesian", concluding that "the world champions of deregulation have forgotten their past and essentially appropriated the principles of social democracy."
Eurotopics

Le Monde reports that newly elected extreme-right Romanian MEP Gigi Becali may never set foot in the European Parliament as he has been banned from leaving Romania while police investigate corruption allegations and his involvement in kidnapping 3 men suspected of stealing his car.
Le Monde BBC EU Observer

Glenis Wilmott re-elected as Labour Leader in the European Parliament
PA reports that East Midlands MEP Glenis Wilmott has been re-elected by the reduced band of Labour MEPs, with London MEP Claude Moraes as deputy leader. Ms Willmott commented: "I feel privileged to have been confirmed as Leader of the European Parliamentary Labour Party, and to lead our Labour MEPs in the newly elected European Parliament."
No Link

In a letter to the Evening Standard, in response to a comment piece by former Europe Minister Denis MacShane, Conservative MEP for London Syed Kamall argues that the Conservatives' new grouping in the European Parliament is the "first constructive grouping committed to an EU of nation states, rather than a federal super-state", and will serve to increase their influence in the EP.
No link

In the Times, Lib Dem leader Nick Clegg attacks the Conservatives' choice of allies in the European Parliament, writing "[the Conservatives] say that they want to protect the environment, but seek out allies in Europe who are climate-change deniers".
Times: Clegg

A leader in the Times argues that the European Union is faced with conflicting choices: to bail out Latvia, ensuring huge losses for other member states, or to take a course of inaction, spreading potential bankruptcy to the rest of the Balkan region. The leader also argues "a Latvian default must be prevented, for the sake of European financial stability."
Times: Leader

Voter turnout in European elections only reaches 31 percent in Eastern Europe
The IHT reports low voter turnout in eastern Europe (about 12 percent less than in the west) suggested that citizens felt that international institutions could do nothing to solve their problems, despite a weak economy. Due to the lack of votes, eastern extremist parties were able to earn seats in the European Parliament.
Tribune

The Irish Independent reports the unemployment rate in the Eurozone was 9.2 percent in April, up 0.3 percent from the previous month. Unemployment in the EU as a whole reached 8.6 percent.
Irish Independent

The WSJ reports that the US government has called for stronger, public stress tests for European banks to ensure that they will recover from a worse economic downturn. European banks have promised to conduct confidential stress tests before September.
WSJ Les Echos

Le Figaro writes that after successive defeats in 2002, 2007 and 2009, French Socialist MP Pierre Moscovici argues that they "would not resist another presidential election defeat, and if it were to be the case, the party could disappear altogether".
Figaro

Russia has now said it will only join the World Trade Organisation in partnership with Belarus and Kazakhstan, with whom it intends to form a customs union on 1 January 2010. Russia has been negotiating to join the WTO for 16 years.
EurActiv

DPA reports that following a German court ruling, information regarding German recipients of EU farming subsidies will be made publicly available online as of next Monday.
DPA

In the WSJ, Gareth Harding argues that the European Parliament is facing "a double crisis of legitimacy and of relevance" after low election turnout.
WSJ

UK

Brown announces plan to ditch first-past-the-post system
The Sun reports that Gordon Brown will today announce promised elections for the House of Lords and a proposed switch from the traditional first-past-the-post system as a means to "clean up politics." The Australian alternative vote system has been suggested in place of first-past-the-post voting.

The Telegraph reports that the Government would be prepared to call a referendum on a change to the first-past-the-post voting system, if there is cross-party support for the idea.
Sun Irish Independent Telegraph


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