Open Europe press summary: 20 July 2009

Europe

German taxpayers say "Nein" to bailing out Ireland
Open Europe's new survey of German voters, which found that 70 percent are against bailing out other struggling EU economies, such as Ireland, was reported in the Irish edition of the Sun on Saturday, and in the Irish Times.

Open Europe's Lorraine Mullally was quoted saying, "As the global recession limbers on, there's been a lot of talk about the possibility of stronger EU member states bailing out the weaker ones, but until now no-one has asked what voters think. Any plan to bail out EU countries depends on the willingness of German taxpayers to cough up -- and this poll clearly shows they are not keen."
"In particular, there have been suggestions that Ireland will somehow be offered a lifeline in this crisis, if only they show their appreciation of 'Europe' and vote in favour of the Lisbon Treaty. It's important that Irish voters realise there is no appetite among German voters for such a rescue package, which will make it very difficult to achieve in practice. To suggest otherwise is dishonest and very misleading." Wolfgang Muller, of the Institute for Free Enterprise in Berlin, which coordinated with Open Europe for the survey, was quoted saying, "This poll confirms that German taxpayers are not willing to accept an ever increasing fiscal burden. At a time when Germany's financial equalisation scheme between the federal government and the states is under increasing scrutiny, there is a need to reward the achievers and not to increase redistribution. Bailing Ireland out would send the wrong signals to governments in the EU. Any plan to try and 'buy' Ireland's Yes vote to the Lisbon treaty with talk of a bailout must be strongly rejected." The article noted that a German bailout operation of other eurozone countries could cost the German taxpayer up to €1.5 billion per year. The poll was also covered on Mary Ellen Synon's Mail blog.
Irish Times Mail: Synon blog Open Europe press release OE press release in German

George Osborne: "There is a none too subtle agenda by some other member states to get a share of Britain's financial services industry"
PA reports that David Cameron has announced a series of proposals to shake up banking regulation, including a plan to scrap the Financial Services Authority. Among the Conservatives' plans include the creation of a new senior post within the Treasury for a minister with responsibility for European financial regulation, fighting Britain's corner and defending the interests of the City of London in Brussels.

The Spectator's Coffee House blog notes that, "The message, at least, is that the Tories won't abide EU financial directives which could harm the British financial industry's growth and competitiveness. To that end, they pledge to 'enhance' the Treasury team that does business in Brussels, and to fight any new attempt to create an executive pan-European supervisor'".

In an interview with the FT, Shadow Chancellor George Osborne said that many of the EU proposals for financial regulation are "ill-conceived, and badly drafted", adding that, "I think the hedge fund directive, the alternative investment directive, is a case in point. I think that is immensely damaging, without actually protecting the European consumer, or the European taxpayer."

Referring to Commission proposals for tighter European financial supervision, Osborne said he thinks that "you should have European coordination of national regulation. So, just as there is international coordination of national regulation, I am against an executive pan-European regulator with executive powers to pose any regulatory answers."

He added, "There is a none too subtle agenda by some other member states to get a share of Britain's financial services industry, and use the credit crunch and the so-called crisis in Anglo-Saxon capitalism, as an excuse to grab some of our business. And we need to fight our corner hard."

Meanwhile, the Weekend FT reported that German Chancellor Angela Merkel has blamed US and UK 'excesses' for the recession. She told a party convention of the Christian Social Union, which is allied to her Christian Democratic Union party, that, "With us, dear friends, Wall Street or the City of London won't dictate again how money should be made only to let others pick up the bill."
WSJ Guardian Spectator: Coffee House blog FT: Osborne Interview Independent on Sunday Open Europe press release Times: Letters Weekend FT

BVCA estimates EU AIFM disclosure rules could cost £30,000 per company
The Independent on Sunday reported that the Financial Services Authority and the Government have set up seven groups to scrutinise burdensome aspects of the European Commission's directive to regulate hedge funds and private equity. Their recommendations will be pooled over the next few weeks and handed to the Commission. One of the major concerns is over disclosure of company investments. Any private-equity or hedge fund that has €500m (£430m) in funds under management must report detailed information on any of their portfolio companies that turn over at least €50m.

The British Venture Capital Association (BVCA) has estimated that there are 10,000 British companies that have a €50m-plus turnover, about 1,000 of which are private-equity owned. It believes that the cost of disclosure could be £30,000 per company, and is unnecessary because private equity already has its own, albeit lighter, code in the UK.
Independent on Sunday

Peter Oborne challenges Cameron to speak out against Blair candidacy for EU President
Open Europe's Lorraine Mullally discussed Tony Blair's candidature for the position of EU President live on Andrew Pierce's show on LBC radio on Sunday. She argued that the creation of a permanent EU President, as proposed by the Lisbon Treaty, would be a step backwards for democracy, since it will end the current system of rotating presidencies, whereby incumbent, democratically-elected prime ministers and presidents who have a mandate to rule get to set the agenda in Europe for six months at a time. Lorraine argued that it was fitting that the unelected, unaccountable Europe Minister Lady Kinnock should publicly back Blair for the unelected, unaccountable position of EU President.

In the Independent on Sunday, John Rentoul argued that the position of EU President is "in one sense... a ridiculous post," noting that the choice will not be made by the peoples of Europe, but by EU leaders acting by Qualified Majority Vote.

Meanwhile, in Saturday's Mail, Peter Oborne noted that while Shadow Foreign Secretary William Hague has spoken out against the idea of Blair becoming EU President, David Cameron has not expressed opposition "and remains highly unlikely to do so". He reported that Cameron's colleagues argue that a Blair presidency would be good for Britain, and, moreover, that "Tory strategists believe they stand a better chance in the next General Election if Labour didn't harness Blair's campaigning skills, and, instead, he concentrated on his European ambitions." However, Oborne called on Cameron to "fulfil his responsibility to a wider sense of public decency and halt Blair in his tracks."

Wolfgang Münchau, in an opinion piece for the FT, says that Blair's chances are better than people think, saying that French President Nicolas Sarkozy is still likely to back him, along with Italian PM Berlusconi, and Spanish PM Jose Luis Zapatero. He notes that although there are "dissenters", Blair only needs a qualified majority under the Lisbon Treaty. Münchau questions Blair's ability for the job, saying that he would not have coped with the financial crisis last year and asking "would Mr Blair have really stood up against the eruption of nationalism or would he have accentuated the divisions?"
Mail Independent on Sunday: Rentoul Sunday Herald Wolfgang Münchau: FT columnist Guido fawkes El Mundo

Irish EU officials join campaign to promote EU in Irish schools
Saturday's Irish Times reported that Irish officials in the EU Commission are taking part in the EU's "Back to School" programme. The Commission website says "Six hundred European officials return to their old school this year. The idea is to 'give Europe a face' and to take part in discussions with school students on European issues of interest to them. The 'Back to School' initiative, which started in 2007, is run this year in nine EU countries from March to November."

Columnist Miriam Lord noted, "Co-incidentally, when the 80 or so Irish officials return to the schools, the Lisbon referendum campaign will be in full swing. No doubt the visitors will be mindful that the majority of No voters were women, and they'll be hoping to bag a few EU brownie points among the mammies." She reported that "all the big fish have signed up for the programme", including the Commission's Director General for Trade David O'Sullivan.
Commission press release Irish Times

Irish activist says Ireland should vote 'yes' and move away from traditional neutrality policy
In an article in Saturday's Irish Times, John Goodwillie, a former Green Party candidate and former secretary of the Irish Campaign for Nuclear Disarmament, argued that Ireland should vote 'yes' to the Lisbon Treaty, because Irish neutrality is "no longer a realistic option". He said that the development of the Common Security and Defence Policy envisaged in the Lisbon Treaty "could gradually show an alternative way forward to that of NATO."

At the weekend, the Irish Green Party voted in favour of the Lisbon Treaty by the smallest possible margin. The Irish Times reports that the party will campaign "vigorously" ahead of the referendum on 2 October.
Irish Times Irish Times 2

Brian Cowen: If Irish don't ratify Lisbon Treaty, there will be "very important consequences"
In an interview with El Pais, Irish Prime Minister Brian Cowen said "We will win the referendum". When asked how the government would react if the Irish vote 'No' again, he responded saying, "It is something that neither we (the Irish government) nor other member states are contemplating", adding that if this did occur it would be necessary to proceed in accordance with the Nice Treaty but "replace it with a more efficient method of decision making". He added that not ratifying the Treaty in the referendum had "very important consequences".

The interviewer repeated that Cowen had said he would not resign if the Irish vote 'No' again, but that this is "very difficult to believe", to which Cowen responded "Thanks a lot! I am not thinking about failure. We will win".

Meanwhile, in an interview with El Mundo, EU Commissioner Joaquin Almunia has claimed it is "not very democratic" to hold referendums on EU treaties. A headline in the paper reads, "Only parliaments should vote on the European Constitution".
El Pais El Pais 2 OE blog

EU seeks access to sensitive bank account data for anti-terrorism operations
Handelsblatt reports that the EU wants to have access to sensitive bank account data, which is being kept by SWIFT, a central financial messaging network centre based in Brussels. The article notes that the EU now wants to make use of the sensitive information in order to combat terrorism. Peter Hustinx, the European data protection supervisor, has written a letter to the European Commission, saying that the plans mean a "considerable reduction of European data protection".
Handelsblatt EU Observer European Voice EDPS

New report says EU's carbon emissions trading system is "seriously flawed"
The Guardian reports that a new study by campaign group Sandbag has described the EU's Emissions Trading Scheme (ETS), which is at the heart of the low-carbon plan announced by the Government last week, as critically flawed. The ETS covers 50% of the UK and EU's carbon emissions, mainly in the energy, cement, steel, glass and manufacturing sectors.

The report found that the large number of carbon permits that have been allocated and a fall in emissions due to the recession, have made the trading system less effective because the 'price' of emitting carbon is not high enough. The study has found that these so-called 'hot-air' carbon credits could be sold as windfall profits, raising £5bn at current prices, or banked for the next period, depressing the future price.

The ETS price for a tonne of CO2 at the close of the market on Friday was €14. To make it economical for generators to switch from coal to less-polluting gas for electricity production requires a carbon price of around €25, while carbon capture and storage technology needs a price of €40-€50 a tonne to be worth investing in. The EU is expected to call on other countries to develop similar models to the ETS at December's UN climate change conference in Copenhagen.
Guardian Sandbag.org Open Europe research

Sarkozy in "extraordinary" u-turn on fishing quotas
The Coulisses de Bruxelles blog reports that French President Nicolas Sarkozy has completely changed his opinion on fishing quotas. Whereas previously Sarkozy had argued against quotas, he is now supporting a ban on all fishing of bluefin tuna in the Mediterranean and France will negotiate reforms to the common fisheries policy.

In the Sunday Times Charles Clover wrote "What Sarkozy said is extraordinary. It amounts to an admission by a European government that one of the world's great environmental disasters has been going on in EU waters as a result of illegal and uncontrolled fishing by the Mediterranean nations and Japan." The article continued "The significance of France, as Europe's sinner that repenteth, goes far beyond the bluefin. It will impact on other countries, including Britain, which participate in the disgraceful annual horse-trading round for quotas on European fish species in December."
Coulisses de Bruxelles Sunday Times

BNP to use EU taxpayers' money to fund "community chest"
The Telegraph reports that BNP MEPs Nick Griffin and Andrew Brons have said that they will "skim off part of their expenses and salaries" to finance a party-controlled "community chest". Mr Griffin and Mr Brons have said that they will put 10% of their annual salary into this constituency fund. Mr Griffin commented, "When we've got money left over, we're putting it back into our constituencies. We've pledged to do so, and we will do so".

According to the EU Parliament's rules, MEPs are only allowed to spend their allowances on their offices, staff, food, accommodation and travel. A spokesman for the Parliament has said, "That would not be allowed. The rules are quite clear. Allowances can not be used for things that are not set out in the guidance".
Telegraph

Strasbourg launches "charm offensive to win the hearts of new MEPs"
Euractiv reports that Strasbourg is doing its best to fend off "accusations that the assembly's monthly trek to Strasbourg is a waste of taxpayers' money." It says the city has "launched a charm offensive to win the hearts of the new MEPs", with the deputy mayor distributing "welcome kits" to the newly-elected MEPs to help them get around the city, and opening a "welcome desk". The deputy mayor said that Strasbourg is "a symbol of European post-war reconciliation".
Euractiv

German MEP speaks out against Icelandic EU membership bid
EUobserver reports that centre-right politicians from Germany's Christian Social Union (CSU) have spoken out against Iceland's bid to join the European Union. "The EU cannot play saviour to Iceland's economic crisis," said Markus Ferber, head of the CSU's members of the European Parliament.

The article notes that having taken on most EU legislation through being a member of the European Economic Area and the Schengen area, actual negotiations with Iceland are expected to be rapid, except in the sensitive area of fishing rights.

An article in Expressen notes that if a deal protecting the fishery industry can be agreed with Iceland, it could open up a future Norwegian EU membership application, as the Norwegian fishing industry has been a major obstacle in the past.
Irish Times El Mundo Coulisses de Bruxelles Irish Times Independent Monde Euractiv EUobserver EUobserver 2 El Mundo IHT Sueddeutsche AFP EU Observer Welt Liberation

Saturday's Irish Times reported on a new website and petition created to persuade Declan Ganley to remain involved in Irish political life and the debate on the Lisbon Treaty.
Irish Times Bring Ganley Back

The Sunday Telegraph reports that Tory MEP Mr McMillan-Scott has predicted that the new alliance between the Conservatives and the Polish Law and Justice Party will fall apart. Mr McMillan-Scott was thrown out of the Conservative party by David Cameron for insulting the leader of the Polish party, accusing him of being a racist.
Observer Sunday Telegraph

Welt Online quoted German Chancellor Angela Merkel commenting on the battle for the most important posts within the EU Commission: "Economically oriented areas such as Competition, Single Market or Industry are most interesting for us".
Welt Online

ABC reports that Spanish Prime Minister Jose Luis Zapatero will propose using the European Social Fund for a new €420 a month subsidy for unemployed people who have exhausted all their benefits. This will apparently be financed using the 2009 and 2010 allocated funding.
ABC

The WSJ reports that the European Cockpit Association, a group of pilots unions with 38,000 members, has warned that EU rules are insufficient to adequately protect against flight safety risks posed by pilot fatigue.
WSJ

European Voice reports that Romanian MEPs have criticised the EU Commission for its report on corruption and the judicial system in Romania, saying it was "biased and flawed" and that Commission officials should be investigated for "good faith and professionalism".
European Voice EUobserver


UK

A new ComRes survey for the Independent on Sunday showed that the Lib Dems are only one point behind Labour, on 22%. Meanwhile, a YouGov survey for the Sunday Times showed that the Conservatives have moved into their biggest lead over Labour since September, putting them on 42%, compared with Labour's 25%.
Independent on Sunday Sunday Times





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