Monday, June 22, 2009

Open Europe press summary: 22 June 2009

Europe

Ireland to vote on exactly the same text of Lisbon Treaty second time around
Following the EU summit in Brussels last week, Open Europe has published a briefing on the 'guarantees' offered to Ireland in exchange for holding a second referendum on the Lisbon Treaty. Despite promises from the Irish government that they would not force people to vote on exactly the same text a second time around, the deal reached at the EU summit last week makes no change whatsoever to the text of the Treaty, meaning Irish voters will be voting on exactly the same text they rejected last year.

EU leaders agreed to attach a series of 'declarations' as a protocol to the Treaty after the second Irish referendum and once it is already in force, but the text of the conclusions of the summit notes that: "The Protocol will clarify but not change either the content or the application of the Treaty of Lisbon."

Czech Prime Minister Jan Fischer said: "It is an explanatory clarifying text which changes not a dot nor comma of the Lisbon Treaty." The Irish Times reports that former Green MEP Patricia McKenna said that the 'guarantees' given to Ireland were nothing more than a "ludicrous charade" and that the public had been given the false impression of legal certainty when this didn't exist.

According to Saturday's Irish Times, newly elected Socialist MEP Joe Higgins repeated at a press conference that the EU summit was an "elaborate charade" meant to distract attention from the key issues. "The debate on the Lisbon Treaty has yet to be held because we've been dealing with side issues." He said: "The reasons why people voted No to the treaty have not been addressed or rectified, and for that reason, once that message gets across to people, I don't think they are going to change their vote."

Saturday's Irish Independent reported that 2 October is the most likely date for a second referendum on the Lisbon Treaty in Ireland. The paper today reports on the launch of a new group, called 'Ireland for Europe', which will back the Yes campaign and will feature Irish celebrities, with Irish PM Brian Cowen vowing to personally take charge of the campaign for a Yes vote.
Open Europe briefing OE blog Irish Times Irish Times 2 ABC Irish Independent Irish Independent 2 Irish Independent: Leader BBC EU Referendum blog BBC: Mardell blog Telegraph: Hannan blog EurActiv Irish Times Irish Times 2 Irish Times 3 Monde Les Echos

Sarkozy contradicts Brown on agreement for more EU financial supervision;
Proposal marks "a complete sea-change in the Anglo-Saxon strategy"
Several papers report that French President Nicolas Sarkozy has contradicted Gordon Brown over plans agreed at Friday's EU summit to create new EU authorities with the power to overrule national regulators and supervisors. Following the summit, Brown claimed that the powers of the new bodies had been restrained and that he had ensured "that British taxpayers will be fully protected". However, Sarkozy said, "We have agreed a European system of supervision with binding powers...Mr Brown has assumed his responsibilities. It is a complete sea-change in the Anglo-Saxon strategy." According to the Telegraph, when asked if London had succeeded in its efforts to limit the transfer of powers to the EU, Sarkozy said, "This is a point of departure. In the future there will be an evolution. Institutions end up doing more than foreseen." The WSJ quotes Sarkozy saying, "We've created a new EU institution from scratch. ... We could have gone further, but I believe that it will widen [its powers] through experience and practice, the way it's always happened."

Saturday's Guardian noted that "non-British European sources" insisted that there was little opposition to the UK demands, rather some surprise that London had agreed so swiftly to the new proposal. "If you asked me a year ago if a UK prime minister would accept a common system and principles, no one would have believed that was possible," a senior EU official is quoted saying.

EU leaders also agreed to create a European Systemic Risk Board of central bankers and financial regulators to share information and monitor hazards that cut across borders and industries, with the UK opposing the President of the ECB chairing the risk board. The summit's conclusions say that "The members of the General Council of the ECB will elect the chair of the European Systemic Risk Board, meaning that eurozone members could outvote non-eurozone members." Les Echos quotes ECB President Jean-Claude Trichet saying "Of course the President of the ECB could be president of it but I am not going to pre-empt decisions which must be taken at the time of the election by members of the General Council of the ECB".

The Economist's Charlemagne blog argues, "I see it as tremendously lucky that the Czechs are in charge of the EU this week (and that the Swedes are next holders of the presidency, until the end of 2009). That makes it less likely that hasty regulations will be rushed through to impose martial law in the City of London, under the command of a four star French general (or whatever the exact plan of Nicolas Sarkozy currently is)."
Open Europe press release Economist: Charlemagne blog Times Telegraph Independent European Voice EurActiv Times Wall Street Journal Les Echos Les Echos Le Figaro

Conservatives form new European Parliament grouping
The Conservatives have announced the formation of their new grouping in the European Parliament. It consists of 55 MEPs from 8 countries including the Polish Law and Justice Party, the Czech Civic Democratic Party, the Belgian Lijst Dedecker party, the Finnish Keskusta party, the Hungarian Democratic Forum, the Latvian National Independence Movement and the Dutch Christian Union. MEPs in the grouping include Derk Jan Eppink, a former senior European Commission official and Lajos Bokros, a former Hungarian Finance Minister.

The new grouping is to be called the European Conservatives and Reformists, and all of the parties have signed up to the aims and values of the new group entitled the Prague Declaration. PA reports that the group is likely to be the fourth largest in the European Parliament and quotes Shadow Europe Minister Mark Francois saying, "We already have participants from eight countries but talks are still continuing and we believe that more will be attracted to join our ranks in the near future."
Conservative Home Independent

William Rees-Mogg: Will Labour sacrifice their best election chance for the Lisbon Treaty?
Writing in the Times, William Rees-Mogg argues that a General Election in the UK in the autumn would be the best chance for Labour to minimise an election defeat, but the ratification of the Lisbon Treaty is an obstacle to an early election. He adds that "Polls show that voters want an early election. They are likely to become more and more resentful if they have to wait until next May."

He also notes, "the Conservative Party, if it came to office before the Irish protocol was ratified, might call a referendum on that protocol", and concludes by asking, "Will Labour sacrifice their best election chance to protect the Lisbon treaty?"

Writing in the Sunday Telegraph, Conservative MEP Daniel Hannan argued that "No one can doubt that Mandelson kept Gordon Brown in office...Lord Mandelson is destroying Labour for the sake of the EU. He is determined to prop up Gordon Brown until after the Irish referendum on the Lisbon Treaty, whatever the cost to his party" and that, "his first allegiance, these days, is to Brussels."

The Weekend FT quoted a European diplomat saying, "People are learning to love Gordon Brown here. They want him to hang on as long as possible. You wouldn't have believed that a year ago."
Times: Rees-Mogg Sunday Telegraph: Hannan Mail: McKay Comment is Free: Preston Sunday Telegraph: Leader

Czech President concerned about Irish 'guarantees' on Lisbon Treaty
Reuters reports that Czech President Vaclav Klaus has said that the 'guarantees' given to Ireland on the Lisbon Treaty change the Treaty, and could open a debate on whether the Treaty should be re-ratified by EU member states. The FT Brussels blog notes that Czech PM Jan Fischer disagrees with Klaus, but he is "a non-party, caretaker premier who will not be in office a few months from now, because the Czech Republic is to hold a general election. Mr Klaus, by contrast, will still be up there in Prague Castle". Reuters FT Brussels blog AFP

Hedge funds vow to fight EU proposal for stricter regulation
The Sunday Times reported that a group of London's largest hedge funds, which between them manage £120 billion of assets, led by industry body the Alternative Investment Management Association (Aima), will this week meet to discuss the EU's draft directive aimed at curbing the activities of hedge funds and private equity.

Man Group, Brevan Howard, BlackRock, Marshall Wace, Lansdowne, CQS, DE Shaw Group, Fauchier and the Hedge Fund Standards Board (HFSB) will all be present, the article reports.

Brevan Howard, Europe's largest hedge fund with £14 billion of assets under management, said it would be forced to leave Britain if the directive was not changed. James Vernon, one of the firm's founding partners and chief operating officer, said: "The directive envisages setting leverage [borrowing] limits and that wouldn't just make it difficult for us to run our business, it would make it impossible. We are actively looking at non-EU locations. Singapore, Hong Kong, New York and the Middle East are all possibilities."
City AM Sunday Times

Christopher Booker: Glenys Kinnock's record as an MEP did not give us value for money
Writing in the Sunday Telegraph Christopher Booker looked at newly appointed Europe Minister Glenys Kinnock's record as an MEP. Citing Open Europe's calculations, he noted that that Mrs. Kinnock and her husband, Neil, were rewarded with more than £10 million in salaries, expenses and pension rights for their respective jobs in EU institutions. The Express also reports the figures.

In the article Booker called on Mrs Kinnock to ensure that justice is "very belatedly done" to thousands of Africans whose health and livelihood were "destroyed" by an EU-funded infrastructure project which she promised to "pursue" in her role on various European Parliament delegations to Africa.
Sunday Telegraph: Booker EU Referendum blog

EU libraries cost taxpayer £570 for each book loan
The Metro reports that libraries for EU staff are so rarely used that each visitor costs the taxpayer £580 and each loan costs £570. There are 52 libraries serving the EU institutions at a total cost of £16m. Shadow Europe Minister Mark Francois said, "With libraries in the UK closing for lack of funds it is astonishing that the EU is spending these large amounts of money on its own underused libraries".
Metro

Tony Bunyan: EU's new security policy threatens personal freedom
On her Mail blog, Mary Ellen Synon writes about the EU's 'Stockholm programme', which will give the EU new legal powers over cross border police co-operation, counter-terrorism, immigration and border controls if the Lisbon Treaty comes into force. The Irish Times quotes Statewatch Director Tony Bunyan saying that the proposals will "require unfettered powers to access and gather masses of personal data on the everyday life of everyone so that we can all be safe and secure from perceived 'threats'. But how are we to be safe from the State itself, from its uses and abuses of the data they hold on us?"
Mail: Synon blog Irish Times

David Cameron tells Conservatives not to listen to Clarke on Europe
The Sunday Telegraph looked at splits within the Conservative Party on Europe, reporting that David Cameron has had to reassure MPs that Ken Clarke has "not changed a word" of Conservative policy on the Lisbon Treaty, after Clarke said renegotiation might not be possible in a BBC interview.

Philip Davies, the Conservative MP for Shipley, said: "We need to bring powers back from Europe but I don't think it's clear at the moment how we are going to do it. What happens if the Irish vote 'yes', which they probably will? That is when William Hague's problems begin. We are pinning our hopes on it not being ratified but it looks as if it will be so we desperately need a plan B. I don't think there is one."
Sunday Telegraph

German Environment Minister receives EU farm subsidiesDie Welt reports that several German politicians receive Common Agricultural Policy subsidies, including the Environment Minister for Lower Saxony, Hans-Heinrich Sander. An online poll shows that 72 percent are in favour of scrapping such payments, with 27 percent in favour of better distribution of CAP funds.
Welt

EU seeks IMF help with Ukraine's gas bill
The European Commission has warned that funds must be found to pay for Ukrainian gas imports from Russia in order to avoid another energy crisis in Europe. José Manuel Barroso, European Commission President, has said that talks will be held next week to discuss emergency loans to help Ukraine pay for gas supplies from Russia. Last winter Russia cut off gas flowing to the rest of the EU as a result of a payment dispute with Ukraine. Barroso stated that: "We must not sleepwalk into another crisis" According to the FT it will be impossible for the EU to raise the requested £2.4bn to help buy Russian gas, although it is possible that international financial institutions could help. The WSJ reports that the International Monetary Fund has been asked to help supply the money.
WSJ European Voice FT

EPP gives support to former Polish PM over Berlusconi's candidate
The Coulisses de Bruxelles blog reports that the EPP has given its support to former Polish PM Jerzy Buzek as President of European Parliament. Jean Quatremer notes that neither the Germans nor the French wanted to give their support to Italian "ultra-catholic" candidate Mario Mauro. President Sarkozy added that the support of Buzek is "an excellent signal to Eastern European countries". The article notes that Buzek is "almost certain to occupy the seat for two and a half years".
Coulisses de Bruxelles

Charlemagne: European Parliament's campaign against nomination of Barroso is "nonsense"
The Economist's Charlemagne blog reports on Martin Schultz, leader of the Socialists in the European Parliament, who has criticised European leaders for trying to "fast-track" Jose Barroso's appointment as Commission President. The article notes "According to the current rule book of the EU, aka the Nice Treaty, it is for the national leaders to nominate a new president of the commission. Their nominee must then be approved by a simple majority of members voting in the European Parliament." However, Mr. Schultz wants Barroso to be nominated under the rules of the Lisbon Treaty, which says the Commission President should be chosen "taking into account" the results of European elections, and must be approved by an absolute majority of MEPs.

Charlemagne adds "I have no doubt that my children would like to "anticipate" Christmas and have their presents in October. But it ain't happening in my house, and it is not clear to me why it should happen in the European Parliament."
Coulisses de Bruxelles Economist: Charlemagne

Sir Michael Rake: UK needs to join the euro
In an interview with Handelsblatt, Sir Michael Rake, Chairman of BT, said that the UK risks a similar crisis to Iceland unless it joins the euro. He said, "I am very disappointed how politicians in the UK use the EU as a political football. I hope the Conservatives, after an election victory, will finally see what the EU has done for us, and for European economy, security and stability. The euro is strong, and the pound no longer is a global currency. If we do not watch out, we may end up in a similar crisis as Iceland".
Handelsblatt

In Saturday's Mail Peter Oborne reported on fears among some Conservatives that David Cameron has pledged to do nothing that would damage Tony Blair's chances of becoming EU President, in return for Blair's agreement not to speak out and join the Labour campaign to prevent Cameron getting into Downing Street.
Mail

In Les Echos, columnist Jean-Marc Vittori considers the UK's role in Europe, arguing "Great Britain remains well and truly an island. The British have proved this again spectacularly last Friday, by limiting the impact of a historic European agreement strengthening financial control". Vittori argues the British must decide "once and for all if they want to be in Europe or outside it".
Les Echos

Writing in the Mail on Sunday Peter Hitchens argued that "The time for [euro]scepticism is long past. What is there left to have doubts about? The thing is as bad as we feared. The time for secession has arrived."
Mail on Sunday: Hitchens


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