Open Europe press summary: 16 July 2009

Europe

Chairman of Committee of European Securities Regulators: Harmonisation of EU financial supervision is "moving ahead at full speed";
"The autonomy of national supervisors will steadily be reduced"
In an interview with Belgian business magazine Trends, Eddy Wymeersch, Chairman of the Committee of European Securities Regulators (CESR) - one of the committees that will be upgraded to a full EU authority with binding powers under the Commission's draft plans for more financial supervision - said: "In future we will no longer give advice, but we will impose binding rules". He said, "In the long term there will be gradual harmonisation [of EU financial supervision]" and that "the autonomy of the member states will steadily be reduced". He also argued that "contrary to what the newspapers claimed, the British weren't opposing [the proposals]. They only had reservations about giving the new authorities decision-making powers, which could have an impact on the national taxpayer". He concluded saying: "the harmonisation of supervision of the EU's financial sector is moving ahead at full speed. In September 2009 the European Commission will submit its actual proposal. By the third quarter of 2010 the supranational authority has to be operational."

Open Europe last night held an event in London to discuss the EU's proposals for financial regulation and supervision in the wake of the financial crisis.

David Green, Advisor on International Affairs to the Financial Reporting Council, opened the debate by suggesting that "There is currently a divide between euro area banks and non-euro area banks. There is no place where the chairman of the FSA and the ECB can meet". He suggested that "The [European] systemic risk board will provide for the first time a platform for a proper debate" but warned that the UK would have the same voting strength on the board as smaller countries. He also said there was "a disturbing feature in the voting system...It should be evenly weighted between euro area banks and non-euro area banks".

Mark Hoban MP, Shadow City Minister, argued in his speech that "the Treasury and the Government took their eyes off the ball in the first part of this year", adding that "we needed robust, early engagement from the government" whilst "discussions were taking place in Brussels which were going to set the tone for regulation not just for the next few months but for years". He added that "unfortunately we have now lost the right to be heard about the direction of regulation".

Dr David Doyle, Senior Advisor at the Brunswick Group, confirmed that the three new EU authorities would get legal powers to override national financial authorities. He said that the new EU bodies would address the problem of member states interpreting and implementing EU laws in different ways. He argued that upgrading "these committees into full fledged departments with legal powers to investigate, sanction, to ensure EU application and regulation of the legislation" would be an important step to solve such diverging interpretations, but denied that such a move would lead to losses of national sovereignty.
Trends Open Europe press release

UK Government formally backs Blair for first EU President
It is widely reported that Europe Minister Glenys Kinnock yesterday gave the Government's formal backing to Tony Blair becoming the first EU President, a position which would be created if the Lisbon Treaty came into force. She said, "The UK Government is supporting Tony Blair's candidature for President of the [European] Council." Asked if the prospect had been discussed with Mr Blair, she said: "It is the Government's position. I am sure they would not do that without asking him".

PA reports that Gordon Brown's spokesman later said, "What the Prime Minister supports is Tony Blair's candidature for the president of the European Council if Tony Blair decides that that is what he would like to do and as and when such a position exists." Asked if the Europe Minister had been 'authorised' to say what she did, he said: "I'm not sure I would characterise it as an announcement."

William Hague, the Shadow Foreign Secretary, said the former Prime Minister should be let "nowhere near the job". He added, "Any holder is likely to try to centralise power for themselves in Brussels and dominate national foreign policies. In the hands of an operator as ambitious as Tony Blair, that is a near certainty", reports the BBC.

The Mail reports that while the role of EU President is ill-defined, the former Prime Minister can expect to earn even more than he did in No 10 and more than Gordon Brown's current £197,689 salary. The post is expected to pay around £275,000 - which is what the European Commission President earns, and which Open Europe has previously reported is roughly the equivalent of Barack Obama's salary. The article also reports that Blair would also receive a residency allowance worth 15% of his salary, monthly entertaining allowance, housing allowance, chauffeured car and a staff of around 20.

Open Europe Director Lorraine Mullally is quoted by the BBC and the Scottish paper Press and Journal saying, "Tony Blair may well be a respected politician around the world, but he is also yesterday's news. The problem with creating a post of EU president is that it would inevitably go to an ex-leader who has lost the support of his or her own electorate." Lorraine's comments are also featured in the Independent as one of the paper's 'Quotes of the day'.
WSJ Press and Journal Independent Guardian BBC Guardian: Palmer Guardian: MacShane Telegraph IHT EUobserver EurActiv FT: Rachman blog Scotsman El Pais ABC ABC2 La Razon DN Monde Nouvelobs Figaro Mail Mail: Leader Express Sun OE blog Open Europe press release

Disgraced MEP awarded medal for "vital contributions"
The Telegraph reports that former Conservative MEP Den Dover has been awarded a medal for his "vital contribution" to the public, despite a European Parliament demand that he return £538,290 in "unduly paid" expenses. Mr Dover also picked up a framed certificate "playing tribute to the representatives of the Union's citizens".
Telegraph OE blog

Barroso expresses concern at German Lisbon judgement fearing it could undermine the "European project"
According to EUObserver, European Commission President Jose Manuel Barroso has expressed concern at the judgement by Germany's Constitutional Court on the Lisbon Treaty, reportedly fearing it could undermine the "European project." He said the judgement raises "very important and sensitive issues in terms of the competence of the European Union and other competences, namely on the understanding of the principle of subsidiarity," as the Court ruled that it would uphold that principle which states that that decisions should be taken at the most local level possible. Mr Barroso said the judgement was "extremely important" for the way member states "understand respect for community law." Mr Barroso reportedly will express a formal opinion on the judgement at a later point, saying the issues it raises have "to be discussed politically." He added it is important to clear up "what is now the understanding of the principles of subsidiarity and how can we make that democratic principle, which is very important, compatible with our common European project."

Die Welt reports that German Chancellor Angela Merkel has insisted on agreement with the CSU on the German ratification law of the Lisbon Treaty by agreeing to a supplementary fraction meeting on 21 August. The CSU reiterated its position that the Bundestag should get more power in EU decision-making, with newly elected CSU MEP Monika Hohlmeier saying: "We should not create a Europe of governments, but a Europe of parliaments". Meanwhile, the German liberal party FDP warned the CSU for a "blockage of Germany in the EU", reports Focus. EU Observer Handelsblatt Welt RP Focus

The Irish Times writes that Irish MEP, Mr Higgins invited European Commission President José Manuel Barroso and the new European Parliament President Jerzy Buzek to "come to Ireland in September, debate with us in front of audiences of workers".
Monde Humanite LeJDD Irish Times

Portuguese MEP Vasco Graca Moura expresses his disappointment towards recent developments in the EU. Writing in Diario de Noticias, he argues that "should it ever come into effect, the Lisbon Treaty will benefit the 'stronger' states and their allies", while it will not resolve problems arising from the recent enlargement round, which has only aggravated and multiplied the EU's problems. Additionally, Lisbon would " create a 'pseudo-federalism' that contradicts the ruling of the German constitutional court."
DN Eurotopics

Energy bills set to rise to meet climate targets
The FT reports that household gas and electricity bills are set to rise by up to £249 as a result of the Government's plans to cut carbon emissions, presented in a white paper yesterday, to meet the Government's targets of cutting emissions by 34% by 2020, from 1990 levels. The paper reports that the biggest change is planned for renewables over the next decade, to meet the Government's commitment to EU targets to derive 15 percent of all Britain's energy from renewable sources by 2020. The Times reports that a table "buried" at the back of the white paper states that meeting the Government's target of increasing the proportion of electricity from renewables from 5.5 percent to 30 percent will add £77 -15 percent - to the average annual domestic electricity bill by 2020 and £172 - 23 percent - to the average gas bill.

Meanwhile, the Guardian reports that the EU is using the music channel MTV to educate teenagers about climate change. MTV will run adverts and hold concerts in several countries, in an attempt to raise climate awareness.
Times Sun Euractiv FT FT 2 FT: Leader Guardian Guardian 2 Guardian 3 Guardian: Leader Telegraph Telegraph 2 Guardian 4 Open Europe research

EIB loans lack transparency and accountability
EUobserver reports that EU-funded development projects in the third world are run by companies which are registered in tax havens. This means that millions of euros in tax revenues for governments are being lost. Marta Ruiz, author of a report published by various NGOs stated that the EIB "does not have much overview of what the banks then do with their money" and that their sanctions against companies caught evading tax are so weak that the loans are like "giving development countries money with one hand, and then taking it away with the other".
EUobserver

Handelsblatt reports that the European Commission has created discontent among business with its record fines against cartels, noting that the International Chamber of Commerce, representing companies from more than 130 countries, calculated that cartel fines imposed by the European Commission on companies tripled between 2005 and 2007.
Handelsblatt

Civil liberties campaigners express concern over Swedish Presidency trial plans
Swedish MEP Lena Ek's has warned that the Stockholm Programme might lead to more EU surveillance.

The ministers will now dedicate six months to debating the areas covered in the Stockholm Programme and this Friday will meet to discuss how to boost cooperation between member states' justice systems.

European Voice reports that the Swedish presidency of the EU wants to reduce the number of repeated criminal trials, occurring from cross-border crimes. They propose transferring the trials from one state to another to reduce overlap.

But civil liberties campaigners are alarmed. Jodie Blackstock of Justice, a civil liberties group, questioned the purpose of the proposal and warned that it could lead to member states transferring cases to reduce costs on their justice systems. Member states might also transfer cases to other states where police powers to seize evidence are stronger. "It is very prosecution-centred," she said.
El Mundo DN EP Video SvD DN European Voice

Vote agreed for September on Barroso re-election
EUobserver reports that the leaders of the political groups in the European Parliament are set to decide today to put a vote on Jose Manuel Barroso's bid for a second term as European Commission President on September's plenary agenda.
EurActiv Figaro RFI Tribune Express European Voice EU Observer

Edward McMillan Scott, the Conservative MEP expelled from the Party for standing against the ECR's official candidate for EP Vice-President, accused the new leader of the ECR Michal Kaminski of previously belonging to what he termed the "notorious National Revival of Poland" organisation, describing it as "deeply unpleasant", and added that Kaminski was "completely inappropriate and unsuitable", reports the Times.
FT Telegraph FT: Brussels blog EUobserver BBC BBC 2 European Voice Times

Euractiv reports that the EU Commission may use the new roaming regulation to block plans by Telecoms operators restricting the use of services such as Skype via mobile
Euractiv

European Voice reports that Iceland voted in parliament last night on whether the country should apply to join the EU. The government's plans are expected to be approved.
European Voice BBC ReutersFR HS DW

ABC discusses the Swedish European Presidency and argues that "the institutional situation has become so complicated than any setback could end up becoming a disaster". Reinfeldt will apparently concentrate on avoiding a "chronic deficit", saying that "we cannot continue pumping money into the financial system without risks creating imbalances"
ABC

Italy and Greece have said that the European Union should seek direct commitments from individual African nations for the repatriation of illegal immigrants, reports DPA. The statements were made as Italy introduced a strict "push-back" policy in May, to prevent migrants from entering its territory illegally, while United Nations officials and the Vatican condemned what they say are deportations by Italy done without determining whether migrants qualify for political asylum.DPA AFP Handelsblatt

Writing in the FT former Foreign Secretary Malcolm Rifkind MP argues that the need to make spending cuts across Europe points to greater co-operation between EU member states, "as a means of maximising their combined military capability." However he emphasises that he does not support either a European army or enhanced EU powers in defence.
FT: Rifkind

The Italian government yesterday proposed a tax amnesty aimed at repatriating billions of euros - the bulk believed to be held in Swiss bank accounts - to tax evaders. A government official said Rome was waiting for the final green light from the European Commission for the plan.
FT

Euractiv reports that the centre-right GERB party is set to form a minority government in the coming days after it surprisingly turned down an offer from another centre-right political formation.
Euractiv

El Mundo reports that Spain will lose €6.3 billion in EU regional funds if it does not spend the allocated funds by the end of the year. The EU's Regional Policy Commissioner's spokesman Dennis Abbott emphasised that Spain is making progress and that last month it requested funding for 23 projects, despite 17 being rejected for not being complete and only two being approved.
El Mundo ABC La Razon

The Coulisses de Bruxelles blog reports that the socialists have gained control of the new European Parliament temporary committee on financial perspectives.
Coulisses de Bruxelles

The IHT reports that Canada and the EU settled a trade dispute yesterday that will lead to Canada dropping its six-year-old complaint at the World Trade Organisation over EU restrictions on imports of genetically modified food.
IHT

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