Open Europe press summary: 23 June 2009

Europe

German Interior Minister reaffirms commitment to European army
In an interview with BBC Hard Talk, German Interior Minister Wolfgang Schäuble was asked about his previous comments in favour of a common European army. He replied saying: "We had polls in different European countries and the question was 'would you prefer a national army or a European army?' and the outcome was about two-thirds for a European army. In Germany it's quite clear, we don't want the use of humanitarian force unilaterally, only together with our partners."

When asked about potential British opposition to such an army, he said "We have to have respect for this, it's quite clear. But the United Kingdom, it's a pity but it's the truth, has never been in the lead of European integration. Germany has to be in the lead of European integration... the general direction is undisputed in Germany... No major party has ever tried to get support by a eurosceptic general direction."

On the question of Turkish accession to the European Union, he said "I am very interested in very close and trustful relations with Turkey, but I am totally convinced that we will fail in building a political, united Europe if we go far beyond the borders of the European continent....Anatolia, the border to Iraq, is not Europe."
BBC: Hard Talk

EU solvency rules could see pensions cut by up to 20%
The FT and the front page of the Express report that British workers could see pensions cut up to 20 percent under the EU's proposed Solvency II rules that govern insurance company capital requirements, and are set to be introduced in 2012. The rules would oblige insurers to be more aggressive in marking annuity liabilities to the market, increasing volatility on balance sheets and forcing them to raise the level of capital that they hold. Insurers are likely to pass on resulting added costs to pensioners, according to the FT.

The paper reports that the people who are likely to be most affected will be those with defined contribution pension schemes, in which money is used to buy an annuity on retirement, which pays out a fixed income. The paper quotes John Pollock, an Executive Director at Legal & General saying, "At the widest corporate spread levels during the credit crisis, the impact would have been much more than 20 per cent. Now that markets are somewhat better it has come down, but would still be between 10 and 20 per cent."

Lord Turner, head of the Financial Services Authority, said this month that the FSA had little power to act since the laws were passed by the European Parliament in April. "We have to be realistic about the extent to which the FSA ... can influence this debate," he told the Association of British Insurers. "The challenge for the industry is to get involved in the debate."
FT Express City AM City AM 2

Spanish Europe Minister: Lisbon Treaty "is like the new European Constitution"
El Mundo reports that in an interview with RNE, Spanish Europe Minister Diego López Garrido has warned that the EU risks falling into the "second or third division in the 21st century" if it cannot compete with other international powers such as the US, China and Russia. López Garrido added that the Lisbon Treaty is "like the new European Constitution and gives it new competencies, for example with regard to energy, which, although it seems a lie, until now was not a competency of the Union".
El Mundo

EU recruits French architect to turn Brussels into "a city of Europe"
The IHT reports that the EU has recruited a French architect, Christian de Portzamparc "to devise a comprehensive, 15-year plan" for Brussels "that would not only create new office space but also provide an architectural framework symbolizing the European Union." He said: "I thought of a big and beautiful idea, that took this historic axis, linking the old and the new. It would be a city of Europe, with lots of periods present. It's a formidable opportunity." He said: "I told them it should be like a downtown American city, with three skyscrapers, yes, but with open islands, keeping historic buildings, with pocket parks."
IHT

Conservatives' new centre-right grouping in the European Parliament provokes mixed reactions
There is widespread coverage of the Conservatives' announcement yesterday that they have successfully formed a new group in the European Parliament, after leaving the main centre-right EPP grouping, which includes the parties of French President Nicolas Sarkozy and German Chancellor Angela Merkel. The new centre-right group, the European Conservatives and Reformists Group, includes 55 MEPs from across eight member states. Timothy Kirkhope, leader of the Conservative MEPs, said that he expects the new group to be the fourth largest in the Parliament.

Shadow Foreign Secretary William Hague has said the Conservatives' new "anti federalist" bloc in the EP will be "good for European democracy". Mr Hague added, "We do work, on a regular basis, with President Sarkozy's party, with Chancellor Merkel's party - that doesn't mean we have to be in the same group in the European Parliament. These groups will often work together but clearly we differ with those parties about the extent of European integration."

The BBC quotes Foreign Secretary David Miliband saying the Conservatives "have dragged themselves from Euro-scepticism to Euro-extremism".

An FT leader describes the decision to leave the EPP as "A dismal error", which "weakens Britain's voice in Europe in several regards". The Independent says some of the new partners "oppose women's and gay rights".

On his Telegraph blog, Conservative MEP Daniel Hannan writes a mock apology from the press: "Now that they have unveiled their allies, we have to admit that they have brought together a coalition of moderate Centre-Right parties - in many cases parties of government - and that many of the MEPs who have joined them are former ministers."

On his blog, Iain Dale writes that "all groupings in the European Parliament contain one or two pretty strange characters". He notes that Labour's allies in the EP include many former communists and adds "before the Lib Dems say too much, consider some of the people who they sit with. They sit in the same group in the European Parliament as Latvia's First Party/Latvian Way. They have demonstrated against gay pride parades in Riga, attempted to ban discussion of gay issues in the media... and have used exceptionally violent language against homosexuality."
Guardian Labourlist: Honeyball Times FT FT: Leader Irish Times Guido Fawkes blog Telegraph: Hannan blog EurActiv BBC European Voice EUobserver Independent European Voice Iain Dale's Diary El Mundo Coulisses de Bruxelles

Cowen says he has now read the full text of Lisbon Treaty
The Irish Independent reports that Irish PM Brian Cowen has now read the Lisbon Treaty cover to cover. He came under fire last year when he admitted he had not read the document. Cowen said "I have read the treaty since last asked that question. I negotiated 90pc of it and saw about 16 different versions of it as it went through. So you can take it I know a fair bit about it."
The paper also reports that the main Irish unions have not embraced 'Lisbon II' despite Brian Cowen's assurances and 'guarantees'. Unions are reportedly angry that declarations on workers' rights will not be legally binding, and there is no guarantee that the collective bargaining clause will be given force of law.

Meanwhile, the Irish Times reports that the Irish Cabinet is expected to decide today to confirm 2 October as the date for the second Lisbon Treaty referendum.
Irish Independent Irish Independent: Sheahan Irish Independent 2 Irish Times

City of London Corporation wary over EU financial supervision proposals
The Telegraph reports that the City of London Corporation has criticised EU financial supervision proposals agreed at a summit last week that would see three European supervisory authorities set up to oversee banking, insurance and securities, and would have binding powers of mediation over national regulators. Stuart Fraser, Chairman of the Corporation's policy and resources committee, is quoted saying: "We will have to see what exactly is meant by these general terms and how the power is used."

Meanwhile, FT Deutschland columnist Lucas Zeise comments on the new EU plans for financial regulation, saying "the European attempts are grotesque. All we do is to create new committees, such as the new risk council, which essentially consists of the same people - national central bank governors - who have failed to foresee the current crisis".
FTD Telegraph Open Europe press release

Government's commitment to cutting red tape is questioned by business
The FT reports that two new committees to vet red tape which were announced by Business Secretary Lord Mandelson on 2 April have yet to be set up. The move was intended to assuage business anger at the decision to axe regulatory budgets, which would have curbed the amount of red tape each Whitehall department could introduce.
FT Open Europe research

Sarkozy "on a collision course with the European Central Bank and the German government"
The FT reports that President Sarkozy yesterday made a speech to both MPs and Senators in Versailles, saying "I will not have a policy of austerity," adding that "austerity policy has always failed." According to the FT, "Mr Sarkozy's pledge put him on a collision course with the European Central Bank and the German government, which have both urged fiscal restraint."
El Pais Le Monde Le Monde 2 Le Figaro ABC ABC2 Diario de Noticias Les Echos Le Figaro2 FTD FT

Hans-Peter Martin MEP: Members of European Parliament are a "detached elite"
FAZ has a review of the new book by Austrian MEP Hans-Peter Martin, titled "The Europe Trap. The End of Democracy and Welfare." In it, Martin focuses on the European Parliament, describing the members of the institution as a "detached elite", engaging in unrestrained pre-occupation with their daily allowances and cost reimbursements, instead of doing their real jobs. Die Europafalle

Swedish EU Presidency will not attempt to resolve Croatia-Slovenia border dispute
Agence Europe reports that the upcoming Swedish EU Presidency has said that it does not intend to launch any new initiatives aimed at resolving the border dispute between Croatia and Slovenia, which is currently stalling Croatia's EU accession bid. Swedish Foreign Minister Carl Bildt said, "This is a bilateral problem which has to be resolved by the two countries concerned." The article reports that Croatia's next accession negotiation meeting, scheduled for 26 June, has been put on hold indefinitely.
FT EurActiv EU Observer News Yahoo DW WSJ EuroNews

EU Agriculture Ministers open to sale of cloned animal products across Europe
Libération reports that EU Agriculture Ministers meeting in Luxembourg yesterday retained the possibility of allowing cloned animal products called "novel foods" to be sold in Europe.

Meanwhile, Handeslblatt reports that, amid protests by farmers at the summit, the European Commission has declared that it wants to investigate the milk market in the next few months, and try to find solutions to enable a balanced flow of money. Milk production prices have risen by 17 percent in the last year, while the price of milk on the market has decreased significantly. Liberation AFP Deutsche Welle Le Monde Tagesspiegel CSU Handelsblatt

Sweden sets out top priorities for the upcoming presidencyThe Swedish EU Minister Cecilia Malmström has said in Dagens Nyheter that climate change and the economic crisis will be central questions during the Swedish EU Presidency, with unemployment, migration, and asylum policy also featuring. Prime Minister Carl Bildt has also said that, "without Barroso we will have trouble. He has been successful in fighting protectionism as well as climate change".

Meanwhile, EUobserver reports that the Swedish Presidency is pushing for more transparency in the laws that govern migration between EU states.
Swedish Presidency DN Tagesspiegel EUobserver

Poland battles for more influence in Brussels Handelsblatt reports that Warsaw is seeking three of the top jobs in Europe, including the Council of Europe Secretary-General post for former Vice-President Wlodzimierz Cimoszewicz. Danzig Janusz Lewandowski hopes to become the new EU Internal Market Commissioner, and Jerzy Buzek is seeking the European Parliament Presidency. No link

Les Echos reports that yesterday Lithuania nominated Finance Minister Algirdas Gediminas Semeta to replace President-elect Dalia Grybauskaite as EU Budget Commissioner.
Les Echos

The FT Brussels blog argues that the 'saga' of Jose Manuel Barroso's reappointment as European Commission President "is less about Barroso's leadership qualities than it is about the European Parliament's desire to assert itself as one of the EU's most powerful institutions."
FT: Brussels blog

Private Eye's Brussels Sprouts column reports on the case of British student Andrew Symeou, who is fighting extradition to Greece, which it describes as a "test" for the use of the European Arrest Warrant to fast-track extradition without consideration or whether there is credible evidence.
No link

The latest annual study of tax trends across the EU by the European Commission has criticised Europe's high-taxation and high-welfare model for failing to protect people from the global economic slump and said that conflicting fiscal measures to tackle the crisis have not been the best response, reports the FT.
FT

Colm Keena in the Irish Times reports that Declan Ganley, founder of Libertas, may be hauled in front of the courts over questions of funding in last year's No campaign against the Lisbon Treaty.
Irish Times: Keena Irish Independent

In the Independent, David Prosser argues many investors are becoming concerned that if they do not respond adequately to public anger, regulators and governments will interfere. Prosser has warned that the European Commission has already advised shareholders to be more responsible with corporate governance. It is "unlikely to be the last word from our friends in Brussels".
Independent

In the Times, Bronwen Maddox writes that "the strength of response of European governments to the crisis in Tehran is a welcome -- if surprising -- step... the EU, which has been half-hearted over Iran's nuclear programme, has now taken a usefully outspoken role."
Times: Maddox FT: Peel European Voice EurActiv

Handelsblatt writes that Ireland is the worst performing member of the eurozone, with large budget deficits caused by the recession and heavy burdens from saving unstable banks. According to a study made by Standard and Poor's Ireland's deficit is expected to reach a record high 10% of GDP.
No link

The IHT reports that the EU has proposed a new architectural plan to expand its Brussels offices, "which it says will purge some of the urban sins it has committed over the years".
IHT

Dagens Nyheter reports that support for Sweden joining the Euro is at 42 percent, with opposition at 43 percent. DN

According to the FT, the ECB is to deliver a "stimulus by stealth" to the eurozone economy tomorrow, which could exceed the previous record of €348.6bn injected in a single ECB operation in December 2007.
FT

The FT reports that 'dark pools', a rapidly growing type of share trading facility, are to be reviewed by the European Commission amid signs that financial regulators are turning their attention to transparency in global equities markets.
FT

UK

Conservative John Bercow elected as new Commons Speaker
The Guardian reports Bercow has promised that "urgent questions must be more readily granted; scrutiny of budgets and legislation, both domestic and European, must be enhanced and, once and for all, ministers must be obliged to make key policy statements in the Commons".
Guardian Iain Dale's diary BBC FT Times Sun Express

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