Open Europe press summary: 2 July 2009

Europe

Glenys Kinnock: Irish guarantees "do not change the Lisbon Treaty" and are not legally-binding
In a debate in the Lords yesterday, Europe Minister Glenys Kinnock confirmed that Ireland will be voting on exactly the same text of the Lisbon Treaty a second time around. She said: "Those guarantees do not change the Lisbon treaty; the European Council conclusions are very clear on them. The Lisbon treaty, as debated and decided by our Parliament, will not be changed and, on the basis of these guarantees, Ireland will proceed to have a second referendum in October." She added: "Nothing in the treaty will change and nothing in the guarantees will change the treaty as your Lordships agreed it."

When asked about the legal status of the 'guarantees', she confirmed that they will not be legally-binding until they are written into the EU treaties as a protocol, which will happen after the Irish referendum. She said: "My Lords, what we have in the guarantees will become binding in international law when the guarantees are translated into a protocol at the time of the next accession, which presumably will be when Croatia or Iceland comes in. Before that protocol can be ratified by the UK, Parliament must pass a Bill. As I said, Parliament will rightly have the final say."

During questions at the House of Commons European Scrutiny Committee this morning, Foreign Secretary David Miliband reiterated that "Every head of state agrees that these guarantees do not change the Treaty."

However, he appeared to contradict the Europe Minister by stressing that "the guarantees are legally-binding in international law... It does not require ratification in order to have legal affect." This lead the Chairman of the Committee to ask, "If this is a legally-binding decision and doesn't need ratification, why does it need to be put in a protocol?" He asked, "Is it a stitch-up to get around Irish peoples' concerns? I can see why people would be suspicious."

European Voice reports that Ireland will next week pass a law allowing for a second referendum on the Lisbon Treaty and formally name a date, expected to be 2 October.
European Scrutiny Committee Hansard EU Observer Euractiv European Voice Open Europe briefing

German Court decision provokes calls for other member states to strengthen parliamentary powers
Sueddeutsche reports that, following the German Constitutional Court's decision that the German Parliament must pass a law guaranteeing the Parliament's rights in the EU decision-making process before the Lisbon Treaty can be ratified, German Social Democrat MEP Jo Leinen complained that provisions in the Treaty which allow changes from unanimity to Qualified Majority Voting will not be possible without explicit approval by the German Parliament. "That is a brake on integration", he said. "Germany threatens to become the lame duck of Europe. Europe will always have to wait on Germany".

On his Telegraph blog, Dan Hannan argues that "If the Lisbon Treaty is insufficiently democratic for Germany, why is it good enough for everyone else? Shouldn't the other 26 member states demand the same statutory safeguards that the Bundestag will now adopt? I don't easily see how Gordon Brown or Nicolas Sarkozy or Brian Cowen could get away with refusing. Aren't the rest of as deserving of democracy as the Germans?"

French newspaper L'Alsace argues, "The German court has signalled that it is necessary - and possible - to convey rights upon the national parliaments in European decision-making. It's a pity such a message was not evoked by France". Likewise, Dutch magazine Elsevier writes: "What does this judgement mean for the sovereignty of other member states? Should they not also build a guarantee into their own legislation in order to secure their right to self-determination?"

A letter in the Irish Times mentions the poll published by Open Europe which found that 77 percent of Germans want a referendum on the Treaty, saying "this highlights the democratic deficit currently at play in the EU, which will be exacerbated by a 'self-amending' treaty".
Sueddeutsche Welt Der Spiegel analysis in English Zeit Press Survey NZ German Press Survey Eurotopics Zeit Monde Telegraph: Hannan blog Irish Times Irish Times: Letters OE Poll in German OE Poll EP press release

A letter to the Cumbrian News and Star cites Open Europe's transparency initiative, in which Green MEPs came top with 100 percent.
News and Star Open Europe press release

Swedish EU Presidency begins with defence of hedge funds and private equity
The FT reports that Sweden marked the first day of its six-month EU Presidency by coming to the defence of hedge funds and private equity, promising to press for improvements in EU proposals for tougher regulation of both groups. "There is an exaggerated fear that private equity contains big systemic risk. Our opinion is that it does not," said Mats Odell, Sweden's Financial Markets Minister.

Mr Odell added: "It is not private equity that caused the crisis, nor hedge funds. But in some countries, the political debate portrays private equity and hedge funds as the problem. That's not the same as saying we shouldn't regulate them. But the aim is to have sound regulation and not to kill the industry."

Lord Myners, the UK's Financial Services Secretary to the Treasury, last month labelled the Commission's proposals "flawed" and said they should be revised.

The FT notes that comments by German Finance Minister Peer Steinbrück yesterday in Berlin suggest Sweden and the UK could still face stiff resistance in altering the Commission proposals. Der Spiegel quotes him saying, "Every now and then I see a clear abstinence of the City of London and the British Government in regulatory measures". He added, "I hear voices telling me that the chances of returning to the financial situation of before the crisis are high. Particularly the City of London looks very suspicious to me. They have the intuition of restoring, or possibly reconstituting the old situation."

Meanwhile, the Irish Times reports that at yesterday's launch of the Swedish Presidency, Sweden's Prime Minister Fredrik Reinfeldt described tackling climate change as the "main challenge of our generation". The Guardian notes that his most difficult challenge in helping to deliver a successor to the Kyoto protocol will be to get the 27 countries of the EU to financially assist developing countries with the impacts of climate change and cutting emissions.

Sweden also wants to introduce a carbon tax for emissions from sectors not covered by the EU's Emissions Trading Scheme, such as transport. "The most effective way of dealing with the problem outside the ETS is energy taxation and CO2 taxes," said Anders Borg, the Swedish finance minister. But any such system in the EU would run into national vetoes, he acknowledged. "It won't be easy to reach consensus."

Meanwhile, in an article for Swedish daily Expressen Matthew Elliot, Chief Executive of the Taxpayers' Alliance, argued that Sweden must respect the Irish 'No' vote on the Lisbon Treaty.
FT EUobserver Guardian Labourlist: Miliband Irish Times Monde Liberation Coulisses de Bruxelles TPA OE briefing

Croatian Prime Minister Ivo Sanader has announced he will resign and withdraw from politics citing "personal reasons" and frustration with the slowness of the final steps in the country's accession bid to join the EU, according to The Parliament.
BBC Monde El Pais ABC La Razon The Parliament

Spanish MEPs demand MEP's salary with perks of a national MP
La Razón reports that Spanish MEPs from the PSOE and PP parties have written a letter to the Spanish Parliament demanding the perks of being a national MP or Senator, combined with the salary of an MEP. Under the new Members' Statute, due to come into force from the next European Parliamentary session, Spanish MEPs will earn €7,550 a month, while Spanish MPs earn between €3,000 and €4,000. Despite this, both parties want their MEPs to receive the social security and pension benefits of the Spanish Parliament. The article notes "So what else do they want? Very simple: the Spanish parliamentary social security system and the maximum pensions they are entitled to for occupying a seat for 8 years. They also want the Iberia airline cards which entitle them to fly for free across Spanish air space and the remuneration at the end of the legislature. The list is endless."

The Spanish Parliament has established a committee to investigate and reach a conclusion by 8 July.
La Razón La Razón2 Open Europe research

Swedish Foreign Minister: We need two EU foreign ministers;
Sarkozy backs Felipe Gonzalez for EU President over Tony Blair
European Voice reports that Swedish PM Fredrik Reinfeldt has said that small and medium-sized member states do not want a 'strong' leader as the first full-time President of the European Council - a role created by the Lisbon Treaty. He said the choice would be "a balance between those who want a strong leader - a figure leading Europe - or more of a person presiding over meetings and co-chairing with the rotating presidency". He added, "Small and medium-sized countries are less interested in a strong leader."

The article notes that Carl Bildt, Swedish Foreign Minister, has suggested that the EU might yet need more than one High Representative for Foreign Policy - another new post created under the Lisbon Treaty. "Demand for the Union to have more input on the external relations front is increasing. There is no way we can have only one high rep," he said.

Bildt suggested that this might be a way of compensating for there not being enough dossiers to keep 27 European Commissioners occupied. He said that "If the Irish voters say 'Yes' [to the Lisbon Treaty], we are going to have a Commission of 27 jobs. We all know there are not 27 real jobs."

Meanwhile, according to the Independent, former Spanish PM Felipe Gonzalez could be challenging Tony Blair for the position of the EU's first ever President if the Lisbon Treaty is ratified. Gonzalez's spokesman, Joaquin Tajar commented on the subject saying, "M. Sarkozy is in favour of Mr Gonzalez's candidature once the Lisbon Treaty is passed, Sarkozy floated Tony Blair's candidacy and didn't get much response, so he decided to look elsewhere. But for the moment he wouldn't stand, we can discard the possibility for now. There are no proposals, just soundings, the situation is very fluid".

The Irish Times reports that David Miliband said that he thought Tony Blair would be an "excellent" choice for the first EU President.
Irish Times European Voice Independent Der Spiegel

Portuguese PM's corruption case could "lead to the decapitation of Eurojust"
In the Times, solicitors Arturo John and Ben Rose look at Eurojust, the EU body designed to coordinate the tackling of cross-border organised crime, under the headline "Eurojust, the EU fraud body, fails to fulfil its brief". In May, Portugal's general prosecutor launched a disciplinary procedure against Jose da Mota, the President of Eurojust, following an internal investigation "of alleged pressures" on magistrates investigating the PM's case. The article notes that beyond the ramifications for Portuguese domestic politics, the case "could also lead to the decapitation of Eurojust".
Times EUobserver

Barroso re-election delayed beyond July
The European Parliament will not hold a vote on José Manuel Barroso's re-appointment as EU Commission President at its July plenary, after the liberals and socialists agreed to wait until the second Irish referendum on the Lisbon Treaty this autumn, reports EurActiv. The article quotes French Green MEP Daniel Cohn-Bendit saying, "Forcing the issue on the table in July would result in a negative start for the Swedish Presidency. There must be no vote on the Commission President before Lisbon is ratified."
SZ European Voice Euractiv Euractiv 2 EU Observer Belga DPA Spiegel HS El Pais

A leader in the WSJ argues that "the president of the EU Commission can make the most of his likely second term by playing to his free-market strengths".
WSJ: Editorial

ABC reports that Spanish Foreign Minister Miguel Angel Moratinos last night confirmed that the EU has withdrawn all its ambassadors from Honduras.
El Mundo ABC La Razon

An article in the FT looks at a long-running dispute between a federation representing 650 breweries from the German state of Bavaria, and a Dutch brewer of Bavaria beer. The ECJ is expected to rule today on the case, which relates to a 1992 EU law protecting geographic description of foodstuffs.
FT

A new report published today by the World Trade Organisation has found that governments around the world have continued to erect trade barriers in spite of high-profile pledges at the G20 summit to resist protectionism. The WTO found that the areas most affected have been agricultural products - particularly dairy - iron and steel, vehicles, chemicals and plastics, and textiles, reports the FT.
FT

The Irish Times reports that Czech President Vaclav Klaus yesterday called a parliamentary election for October 9-10, in line with a political agreement to hold polls some nine months early, following the collapse of the Czech government in March.
Irish Times

EUobserver reports that a new, non-binding code of conduct came into force yesterday in 25 EU member states and Norway on defence procurement contracts. The code is intended to set standards for side-deals made by governments when they sign defence contracts, to channel side-investments into research and technology projects and to cap offsets to 100 percent of the value of the contract.
EU Observer

Anatole Kaletsky in the Times writes that the European Central Bank injected €442 billion (£377 billion) of new cash into the euro money markets last week, equivalent to half the US Federal Reserve's entire monetary expansion in the past 18 months. He points out that the ECB has been printing money much faster than the Federal Reserve.
Times: Kaletsky

Le Figaro reports that the French Transport Minister yesterday called for a global aviation blacklist to supplement the EU one after the spate of recent plane crashes.
Figaro EU ban list

Le Figaro reports that Commission President Jose Manuel Barroso claimed yesterday that he was 'not a liberal' in economic terms, and blamed 'caricatures' for putting him in negative light. "I am a reformist from the centre" he declared.
Figaro

The IHT reports on plans to keep the results of the planned "stress tests" on European banks secret and notes that before a decision can be reached, German and Spanish 'misgivings' must be overcome. Germany does not want to release potentially embarrassing findings before its election in September, and Spain has expressed concern over how the data might be used.
IHT

Iran has "disqualified" Europe from its nuclear talks, the BBC reports. Iran's military Chief of Staff has said that the "interference" from Europeans in Iranian political unrest following disputed elections meant that the EU has "lost its qualification to hold nuclear talks".
EU Observer BBC Global Post Financial Times IHT

El País reports that Spanish employment has fallen by 1.53 percent, but is still 49 percent higher than the same period last year.
El Pais Irish Times El Mundo

El Mundo reports that the European Court of First Instance has ratified the Commission's decision to fine Spain for fraud involving EU agricultural funds intended for the cultivation of linen and canvas. Spain was fined €134 million in 2005 by the Commission, for a lack of control over the funds between 1996 and 2000.
El Mundo Court Ruling

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