Open Europe press summary: 12 June 2009

Europe

Irish Foreign Minister plays down difficulties in securing Lisbon Treaty 'guarantees';
Sarkozy says he'll visit Ireland to support 'Yes' campaign in second referendum
The Irish Times reports that Irish Foreign Minister Micheál Martin has played down possible difficulties with other EU member states in securing legally-binding 'guarantees' on the Lisbon Treaty for Ireland. Martin told a parliamentary committee that other member states were "supportive of the approach being taken - that is, to flesh out the substance of the guarantees promised to Ireland at the December European Council in relation to taxation, defence, the provisions of the Constitution on right to life, education and family and the solemn declaration on workers' rights". He added, "With the exception of taxation, our guarantees will be Ireland-specific."

The paper notes that any deal on the 'guarantees' is not likely to be finalised until the EU leaders summit next Thursday and Friday, with Martin suggesting "negotiations will be ongoing at both official and political level" throughout next week.

The Irish Independent notes that the UK Government is particularly concerned about the Treaty having to pass through the House of Commons again because of the legal 'guarantees'. "They want to be clear Lisbon doesn't have to be put through the Commons. They just don't want to be going back," a source said.

The Irish Times notes that EU Commission Vice-President Margot Wallstrom is confident that Ireland's demands for legally binding 'guarantees' on the Lisbon Treaty will not reopen debate about the Treaty in other member states. "I'm sure it will be resolved - we have to achieve two things - give the Irish the guarantees and the texts that they need and at the same time not reopen the treaty for re-ratification in other member states," she said. Wallstrom said she hadn't contemplated the consequences of Ireland rejecting the Lisbon Treaty for a second time but added, "Of course, we just feel it would be very, very unfortunate".

Meanwhile, the Irish Independent reports that French President Nicolas Sarkozy has offered to visit Ireland in support of the 'Yes' campaign in the second referendum on the Treaty. Mr Sarkozy said he and German Chancellor Angela Merkel were pledging their support to the Irish government. "Mrs Merkel and I will do everything we can to help the Irish make the choice for Lisbon. If it is of use, I would even be ready to travel to Ireland to support them," he said.
Irish Independent Irish Times Irish Times 2

Lord Mandelson: Joining the Euro is "obviously" an important objective
The Telegraph reports that while in Berlin, Lord Mandelson has insisted that Britain is committed to joining the Euro. Lord Mandelson said "It is perfectly clear that the euro has been a great success in anchoring its eurozone members during this financial crisis". When asked whether Britain would consider joining the Euro in the future, he responded, "Does it remain an important objective for Britain to find itself in the same currency as that single market in which it interacts? Obviously yes." However he did add that the decision must be taken "on the right terms in the right circumstances and conditions".

Meanwhile in Le Monde, Lord Mandelson has outlined what he thinks the priorities for the new Commission should be, while emphasising the success of the current Barroso Commission. Mandelson insisted that, "governments who criticise the Commission while it defends Europe's long term economic interests, are playing a dangerous game" and that the Commission "should adopt a tougher line concerning European states who do not apply single market laws".
Le Monde Telegraph

Sweden indicates it could back Britain against heavy handed EU financial services regulation
The Guardian reports that Mats Odell, Swedish Minister for Local Government and Financial Markets, has indicated that Sweden is ready to back Britain's fight with the EU against "heavy-handed" regulation of financial services when it takes up the EU Presidency next month. He is quoted saying, "I'm fully aware of the special position London has enjoyed and we want that to continue. We would like London to remain as the financial centre of Europe".

However, he also said that Britain will need to accept that hedge funds and private equity firms must be covered by a wider regulatory scheme.

Meanwhile the Irish Independent reports that Ireland's position on the EU's proposals for increased banking supervision remains unclear, after Finance Minister Brian Lenihan failed to attend the EU finance ministers' meeting this week.
Guardian Irish Independent

Brittan: The EU should halt further institutional deepening, and concentrate on making the existing EU work better
Samuel Brittan writing in the FT argues that, "Unfortunately, but perhaps inevitably, the institutions of the EU have become dedicated to the centralisation of more and more power at the EU level." He also looks at a book entitled "The European Institutions as an Interest Group" by German Economist Roland Vaubel, which argues that EU institutions such as the Commission, Parliament, Court and Council have a vested interest in centralised decisions, because it enhances their own power and prestige.

Brittan concludes, "The best practical proposal would be to call a halt to further institutional deepening and concentrate on making the existing EU work better. This is what Eurocrats say will happen after each new expansion of EU powers. It never does, of course."
FT: Brittan

An article on Czech newsite CT24 cites Open Europe's findings on the cost of pensions of retiring EU Commissioners.
CT 24 Open Europe press release

Sarkozy and Merkel look to delay official decision on Barroso's second term as Commission President
Euractiv writes that Angela Merkel and Nicolas Sarkozy have both indicated their support for Jose Manuel Barroso for a second mandate as Commission President, but quotes Sarkozy saying, "The chancellor [Angela Merkel] and I would like to see a political decision taken at the next European Council [on 18-19 June] so that there can be real consultations between the European Council and the European Parliament, without an official legal decision being put down in writing... If the European Parliament agrees, we could ratify the decision in July".

The article also reports that the newly-elected European Parliament is holding a secret ballot during its opening plenary session in July to approve or reject the proposed new Commission President.

Meanwhile the Economist analyses the results of the European elections and suggests that the centre-right's success means that Barroso will win a second term as Commission President. However, it reports that France wants to delay a binding deal on the matter, "ostensibly to wait for the Lisbon treaty, though in fact in an effort to secure a big economic portfolio for the next French commissioner."
Economist Euractiv Le Figaro Le Monde FT NYT European Voice Toute l'Europe L'Express 20 Minutes FT:Leader El País ABC Liberation

Sweden's EU Presidency plans on immigration could face lack of consensus
EurActiv looks at Sweden's plans on immigration for its EU Presidency, and reports that Sweden intends to push for a comprehensive Common Asylum System. However, the article quotes an unnamed immigration expert saying, "we know that there is no real political will, let alone consensus, in the Council to make this happen".

The article also quotes Bjarte Vandvik, Secretary-General of the European Council on Refugees and Exiles (ECRE), saying "With the best of intentions for the Swedes, I think they're in a difficult position. They have a brand new Parliament which has yet to grasp the importance of these issues in a procedural way. And this Parliament is far more right-wing and conservative, and is likely to be more sceptical on these questions of harmonisation".
EurActiv

Charlemagne: Maybe a bigger role for national parliaments is needed to make the case for preserving Europe's openness
The Economist's Charlemagne column examines the European elections results and argues that politicians who did well ran campaigns tailored exclusively to national concerns, hinting that outsiders are to blame for making life "miserable". He argues that, "Somebody must make the case to voters for preserving Europe's openness." He suggests that, "perhaps the European Parliament is not up to the job...Maybe something different is needed, such as a bigger role for national parliaments. Investing more and more power in MEPs was always an experiment. When experiments fail repeatedly, it is time to try something else."
Economist: Charlemagne

French PM: "the more we need Europe, the more people's indifference grows"
The Independent reports that, in a speech to the French National Assembly, French Prime Minister François Fillon said "those who talked about Europe, those who put forward constructive or alternative proposals, have been rewarded." However, he noted that the high abstention rates in the European elections indicate that, "the more we need Europe, the more people's indifference grows", and that this must be overcome.
Independent: Fillon

France is ready to introduce a carbon tax
EurActiv has reported that the French government presented a white paper, proposing to introduce a carbon tax in 2011. The government did not give details of what products the tax should cover, nor did it specify how it should be implemented. Sweden has already indicated that it aims to push for a Europe-wide tax on CO2 during its EU Presidency.
EurActiv

Dutch branch of Libertas seeks €350,000 from Declan Ganley to cover campaign costs
The Irish Times reports that the Dutch branch of Libertas has appealed to Libertas leader Declan Ganley to pay them the €350,000 they say they are owed to cover the costs of their European election campaign. "At this moment I have total bills of €350,000, which are in Declan's name. I am not personally responsible for them," said Eline van den Broek, who led Libertas in the Netherlands but failed to win a seat.

In a statement last night a Libertas spokesman said at no stage was any candidate "promised" money, adding: "At every stage in our campaign, we made clear that all of the money we spent would have to be raised from donors and supporters.
Irish Times

Latvia weighs up currency devaluation versus future eurozone membership
According to the Telegraph Latvia risks becoming first EU member to face 'economic meltdown', reporting that with the Lat heavily overpriced, any currency devaluation could lead to massive defaults, threatening the balance sheets of the Swedish banks.

Writing on his FT Brussels blog, Tony Barber notes that there are two schools of thought on whether Latvia should devalue the Lat, or fight "tooth and nail" to keep its currency peg to the euro. It says that "this is in the end a political matter...It is pretty clear that the only reason why the Latvians think it's worth accepting all this pain is because they have a burning ambition to join the eurozone."
Economist CityAM Reuters Telegraph FT: Brussels blog

The WSJ reports that credit rating agency Standard & Poor's downgraded Ireland's sovereign credit rating to AA from AA+, citing the government's rising debt burden.
WSJ WSJ: Editorial

A leader in the Economist suggests that, following Angela Merkel's recent criticism of the ECB, "If European institutions operate without firm political support, it is fanciful to hope that they will remain strong enough to take sometimes unpopular decisions."
Economist: Leader

The Economist has a special report on the eurozone, and writes, "For all its shortcomings, the euro zone is far more likely to expand than shrink over the next decade... The rush to join the euro zone is surely a vote of confidence."
Economist: special report

A leader in the New Statesman looks at the collapse in support for the Left in the European elections and writes, "the left has no coherent narrative of how to organise the economy in the wake of the worst financial crisis in decades."
New Statesman: Leader Guardian: Kettle

The Irish Independent reports that the Irish government may have to prove to the EU that Anglo Irish Bank has a chance of becoming viable again, to receive approval under EU guidelines for the planned €4bn bailout.
Irish Independent

Süddeutsche reports that Swedish Foreign Minister Carl Bildt has said that he supports Iceland's entry to the EU, and states it will be a main focus of the Swedish Presidency, beginning next month.
No link

El País reports that the EU has almost finalised an agreement on accepting Guantanamo prisoners. The draft agreement will be sanctioned next Monday by EU foreign ministers.
El País ABC

El País reports that, after two months of negotiations, EU transport ministers have agreed on a cross-border rail package. The ministers established long term development objectives for a North-South rail freight axis linking "Stockholm - Copenhagen - Hamburg - Munich - Innsbruck - Verona - Naples".
El País Forbes

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