Open Europe press summary: 18 June 2009

Europe

Lisbon Treaty 'guarantees' for Irish could take form of international agreement;
Czech President says any legal guarantees must be ratified by Czech Parliament
The Irish Independent reports that Ireland is likely to face opposition from the UK over the nature of the 'guarantees' offered to Ireland in exchange for a second referendum on the Lisbon Treaty at the EU Council meeting today and tomorrow. The British are reportedly demanding changes to the wording of the draft copy of the 'guarantees', with the UK Prime Minister's officials querying the legal status of the 'guarantees'.

The Irish Times reports that Irish PM Brian Cowen is seeking assurances from other EU member states that if the 'guarantees' take the form of a protocol, they will ratify the protocol through their parliaments when the next EU treaty is completed - probably in the form of an accession treaty.

One EU diplomat is quoted by EurActiv saying that the 'guarantees' will be "a fragile compromise between the bare minimum for Ireland and what is acceptable to other members".

Speaking on the BBC Today programme, Chairperson of the People's Movement Patricia McKenna said, "what they're talking about is so called legal guarantees, which is creative terminology to give people the impression that somehow legal certainty exists, when in actual fact, it does not exist and cannot exist unless you actually put it in black and white and ratify it in the same way as the treaty itself has been ratified. So the people of Ireland are being hoodwinked and I think brow-beaten into accepting what the EU heads of state want."

Also speaking to the programme, Irish Europe Minister Dick Roche said, "the guarantees have legal effect. They're based very much on the model of the 1992 Edinburgh European Council when the Danes had voted 'No' on Maastricht. The guarantees will have the weight of international law." The Irish Times quotes Brian Cowen saying that the 'guarantees', "will be legally binding and constitute an international agreement lodged with the United Nations".

The Czech President Vaclav Klaus, who is yet to sign the Treaty, has said that the Czech Parliament should ratify any fresh legal clauses attached to the Treaty, adding that any 'guarantees' would constitute a mini-treaty in themselves. Under Czech law, any international treaty must be ratified by the Czech Parliament and signed by the President, according to EUobserver.
Irish Independent Irish Independent 2 Mail: Synon blog BBC European Voice EurActiv EUobserver Today programme Irish Independent 3 Irish Times Irish Times 2 Irish Times 3 Volkskrant Figaro Monde Liberation lePoint Irish Times 4

UK Government says it will fight to ensure EU financial supervisors cannot overrule national regulators on bank bail-outs
The Guardian reports that today and tomorrow's EU summit will be dominated by proposals for a new European "financial architecture" in response to the financial crisis. The BBC notes that the UK Government is wary of the European Central Bank (ECB) chairing the proposed new European Systemic Risk Board (ESRB). Its job would be to identify any threats to financial stability across the EU. The FT notes that Gordon Brown may question whether the ECB should always provide the head of the risk-monitoring agency, as foreseen under current EU proposals, which could potentially favour the interests of eurozone member states.

There are also concerns about the proposed European System of Financial Supervisors, whose job would be to monitor individual financial firms in banking, insurance and securities by overseeing the monitoring roles of existing national supervisory bodies. The national bodies would become part of a single European supervisory authority "endowed with legal personality". The proposal leaves national regulators in charge of routine operations. But in the event of a dispute over a cross-border bank between two national authorities, for example, the European body would be empowered to mediate and, if need be, impose a settlement.

Britain last week won a concession from EU finance ministers stating that the new regime could not "impinge on national fiscal responsibilities of member states". This explicit pledge, however, is missing from the draft statement prepared for tomorrow's summit. The FT notes that Gordon Brown may seek to amend the summit's draft communiqué so it explicitly repeats that no EU-level authority can force a government to burden its taxpayers with the cost of a bank bail-out.

PA quotes a UK Government source saying, "This is extremely important because of the pre-eminence of City of London as a financial centre. We are very clear about this - you cannot separate responsibility for sound financial institutions from liability. In other words, we are not going to have the Commission taking decisions upon which we have to pick up the bill."

On his BBC blog, Mark Mardell writes "What I can't quite figure out at the moment is whether the objection is a winnable battle, to act as a smokescreen for going along with a lot of other stuff that people in the City won't like (hedge funds won't even be discussed at this summit), or if a British victory would be real, and so completely emasculate the Commission plan."

The Telegraph reports that a senior French official has said that Gordon Brown is almost powerless to stop tighter EU regulation. "There will be a pincer movement on Britain," said a key aide to President Nicolas Sarkozy, speaking at a pre-summit briefing.
WSJ Guardian Guardian 2 Telegraph EU Referendum blog BBC European Voice BBC: Mardell blog Times: Leader IHT FT

Hedge fund managers attack plans for EU regulation;
Poul Nyrup Rasmussen: "Read my lips: You're going to have regulation"
The Telegraph reports that Paul Marshall, co-founder of Marshall Wace, one of London's top hedge funds, has said the European Commission's draft directive on alternative investments has "the wrong priorities, wrong approach and was written by the wrong people". Mr Marshall argued that the European directive showed signs of political motivation, arguing that it is "damaging to our industry, damaging to our country and damaging to Europe".

The FT notes that the Commission's draft directive on alternative investment fund managers controversially proposes limits on fund leverage and would also require funds to be registered in EU countries in which they have investors.

Bloomberg quotes the leader of the European Socialists in the European Parliament, Poul Nyrup Rasmussen, saying, "Read my lips: You're going to have regulation." In the interview, he added, "What are you afraid of? You can earn your money in a well-regulated market."

The article notes that Internal Market Commissioner Charlie McCreevy eventually succumbed to calls for greater regulation from the European Parliament. "They obviously decided this is a big issue for them, and they're going to run with it," McCreevy said in an interview in Brussels. "That's politics."

A Telegraph leader argues there is a "risk of a European ambush of London's hedge fund industry - an easy target for punitive regulation, but one which played little part in the meltdown."
Bloomberg Telegraph FT Telegraph: Leader

At a meeting of the Public Bill Committee on Tuesday on MEPs' pay and allowances, Greg Hands MP quoted Open Europe and its findings on MEPs' pay and that the cost of the European Parliament is five times higher than the UK Parliament.
Hansard Open Europe press release OE blog

Member states expected to endorse a second Barroso term;
Cohn-Bendit: "should the Council approve Barroso, they are risking a negative vote from the parliament"
Diario de Noticias reports that today is "fundamental" for Jose Manuel Barroso's political career in Brussels, as EU leaders decide whether to support his second mandate as Commission President. European Voice reports that EU leaders will meet in Brussels to agree in principle to nominate Barroso for a second term at today and tomorrow's EU summit.

The FT and IHT report that Barroso is facing opposition to his re-election to the Commission presidency within the European Parliament, despite not having a challenger in the race. Dagens Nyheter quotes EU Commissioner Margot Wallström saying "I regret deeply that the socialist opposition in Europe has not been able to propose any candidate for Commission presidency".

Le Monde writes that Daniel Cohn-Bendit MEP "will do anything" to stop Jose Barroso being re-nominated as Commission President. He added that "should the Council approve Barroso, they are risking a negative vote from the parliament".

El País reports that EU leaders will only give their 'political' support to Barroso's second mandate, and that the method of nomination will depend on ratification of the Lisbon Treaty. Under the current Nice Treaty rules the European Parliament has far less influence over the Commission President's appointment.
Monde Toute l'Europe DN Figaro El Mundo El Mundo 2 Diario de Noticias Eurointelligence FTD FT Independent European Voice FT: Brussels blog European Voice 2 European Voice 3 IHT El Pais Figaro 2 Monde2

Global Pensions magazine reports on the legal challenge by 65 MEPs to the European Parliament's controversial second pension scheme, and quotes Open Europe's Sarah Gaskell saying "This pension scheme has already been shown to be an unacceptable waste of taxpayers' money and now some MEPs are trying to protect their golden payouts through a legal challenge shrouded in secrecy."
European Voice Global Pensions OE Blog Open Europe press release

Zapatero faces opposition to demands for protocol on additional Lisbon Treaty MEPS
El Mundo reports that one of Spanish Prime Minister José Luis Zapatero's priorities for the EU Council is gaining support for a protocol which would enable four additional Spanish MEPs to enter Parliament, and who would otherwise only enter Parliament if the Lisbon Treaty is ratified. The article notes that Spain faces opposition from numerous member states, with Czech Prime Minister Jan Fischer arguing the majority want to avoid "feeding the desire to reopen the ratification process".

Currently the additional MEPs will only have 'observer' status. The article notes "the danger is that the Lisbon Treaty MEPs in this limbo, well paid but with no practical value, will remain like this for years, if not the entire legislature".
Expansión El Mundo

Czech European Affairs Minister: Opposing Lisbon does not mean opposing the EU
In an interview with ABC, Czech Minister for European Affairs Stefan Füle says that "the Czech presidency has been successful", despite being faced with various challenges. When asked about the role of Czech President Václav Klaus, he responded "We have demonstrated that all this speculation about his negative impact on the EU presidency was wrong". Füle argued that "the fact that he has a personal vision about the Lisbon Treaty does not mean he is sceptic. It was him who brought the Czech Republic to the EU".
ABC

Conservatives deny backing Blair for EU President
The Mail reports that David Cameron and the Conservatives have dismissed reports that they support Tony Blair's candidacy to become the first President of the EU. Shadow Foreign Secretary William Hague said yesterday: 'We are not in favour of a President of the EU at all. We don't agree that position should come into existence.
Mail Mail: Glover Times: Parris Independent: Norman Express

The WSJ reports that the Latvian government is implementing severe austerity measures in order to avoid national default and secure international aid. The plans include 50% wage cuts for teachers, an expected 20% reduction in other government workers' salaries and a 10% decrease in pension payments.
WSJ

In the WSJ, Polish Foreign Minister Radoslaw Sikorski argues that "the faster we integrate the states of Eastern Europe and the South Caucasus with the EU, the more likely it will be that Russia itself adopts a pro-European orientation."
WSJ: Sikorski

The Parliament reports 'shamed' former British MEP Den Dover says he will not repay €590,000 he claimed in 'unjustified' parliamentary expenses. Dover, who did not stand at the recent European elections, said, "My case is still going through the courts so, no, I have not repaid this money."
The Parliament

Valentin Zahrnt: CAP reform for 2013 will create new winners and losers
Valentin Zahrnt of European Centre for International Political Economy said in a presentation that the 2013 CAP reform will probably see the UK, Finland, Sweden and the Baltic states as the big winners of subsidies, whereas the traditionally agricultural France, Germany, the Netherlands and Denmark will be the big losers.
No link

Libertas has said that it would be "virtually impossible" for it to play a role in the second referendum campaign on the Lisbon Treaty in Ireland.
Irish Times

UK

The Governor of the Bank of England put himself on a collision course with the Government and the City again last night by laying out plans for clamping down on banks. Times Calculated Risk City AM

The Telegraph reports the Public Administration Select Committee has concluded that Prime Ministers should appoint smaller governments, pass fewer new laws, and leave their ministers in their posts for longer.
Telegraph

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