Open Europe press summary: 30 July 2009

Europe

EU propaganda: Commission allocates €885m to promote a "common European identity" among young people
In an opinion piece on EUobserver, Open Europe's Lorraine Mullally looks at the EU's growing use of propaganda to 'sell' the idea of European integration, and argues that the European Commission "sees itself not just as 'guardian of the Treaties', but as a political campaign group." She cites the recent interventions made by the Commission in the Irish debate on the Lisbon Treaty, as well as the attempt by the Commission communications department to slander Open Europe in the Swedish media after the think-tank criticised EU communications policy.

She says: "With so much public money at their disposal, the EU institutions are able to propel their own vision of the future of Europe, and also begin to create a monopoly over what should be regarded as the 'facts.' The institutions claim to want a wider debate on Europe, but by trying to suppress those who do not support their vision, they are stifling debate." She argues: "Without doubt, there is a clear need for citizens to become better educated about the European Union and what it does - especially given the fact that, as the European Parliament has confirmed, EU legislation is now at the root of the majority of laws enacted in its member states. But the European Commission - and no doubt far too many MEPs - still do not understand the difference between providing much-needed information and 'selling' the EU."

Open Europe's December 2008 research on the EU's propaganda budget is also cited in a piece on the International News Service by David Haworth. It notes that "The Commission has allocated from 2007 to 2013 the sum of Euro 885 million on trans-continental efforts to promote a 'common European identity' among the under-25s in a campaign which deliberately confuses the difference between information and propaganda". It continues: "The Centre for European Policy Studies, a think tank which claims to be independent, was on the take through the Commission of some € 6.1 million two years ago of taxpayers' cash. Indeed, the Brussels undergrowth is thick with such bodies - all 'thinking', but who never seem to produce any monographs of intellectual distinction by comparison with their Washington counterparts. The difference is that such USA bodies are privately funded - not subsidised by the authorities they are supposed to be examining."
EUobserver International News Service OE research OE blog

Christine Lagarde: Key financial actors to meet in September "to prepare a response" to attract hedge funds
In an interview with Les Echos, French Finance Minister Christine Lagarde plays down the relocation of the equity platform data centre of NYSE Euronext from Paris to London. She emphasises the need "to not overestimate the importance of this decision" as the main part of NYSE Euronext will remain in Paris and only approximately 10 people and an IT centre are moving to London.

Responding to how London continues to attract financial companies from France, Lagarde said "some years ago the British boasted of their 'light regulation' and emphasised their fiscal regime. Today, the gap between France and Great Britain has reduced noticeably on this issue".

When asked how Paris can attract hedge funds in particular, Lagarde says that she intends on inviting all the key actors in Paris' financial district (La Place) to meet in September to discuss the development of the financial district and "to prepare a response". She also said that France will continue to develop "sectors of excellence", but notes that this "perhaps will not be the management of hedge funds".

With regard to financial supervision, Lagarde adds that she thinks France has a still has "the lead on the Americans and the British in the adaptation of our system of financial supervision".
Les Echos

Sharon Bowles: AIFM Directive "must be profoundly amended if we want it to work"
In an interview with AGEFI, the new Chair of the European Parliament Economic and Monetary Affairs committee Sharon Bowles says that the EU's Alternative Investment Fund Manager Directive, "must be profoundly amended if we want it to work", warning that should the directive come into force, pension funds would no longer be able tp invest in European products" and leaving the UK, Germany and France for Dubai and Singapore.

This she adds means that "it is no longer a financial problem but a social problem", adding that "It is possible to make the text fairer and more intelligent". When asked how, she responds "We already said in the Rasmussen report (on alternative management) and in the Lehne report (on transparency) that we want capital requirements for all financial institutions, but that these requirements must be based on risk." With regard to alternative investment funds she says "It involves ensuring the stability of management, the survival of the institution if there is a crisis, as long as necessary, to close activities correctly. The requirements will therefore be different for hedge funds which carry out a lot of short term investment and where the management is very directly active, on one hand, and for private equity, on the other hand, where the management is housed in portfolio companies and doesn't therefore disappear with the fund".

Meanwhile, the Telegraph quotes the CEO of RAB Capital, Stephen Couttie, in a letter to investors, warning of how the AIMF Directive could impact on RAB Capital. In the letter, Couttie says "The Directive touches on several issues relevant to RAB's funds such as leverage, marketing, valuation, liquidity and custody".
AGEFI OE blog Telegraph Letter to investors

German Federal States agree on Bundesrat influence over EU decision-making
While there are ongoing disputes at the party level on how much power the German parliament will have in the EU decision-making process, the German Länder (federal states) have widely agreed on the future influence of the Bundesrat (upper house of parliament) in EU matters. A formal resolution of the European ministers of the various Länder is expected tomorrow. The final decision on the new law specifying the Parliament and Bundesrat powers over EU decisions will come up at 8 September (voting of Parliament) and 18 September (voting of Bundesrat).
Tagesspiegel Reutlinger

EU report shows discrepancies over use of European Arrest Warrant
European Voice reports that a new report for the Council of Ministers has shown that there are wide disparities between member states in the number of European Arrest Warrants (EAWs) requested, and even wider gaps between the number of EAWs requested and the number issued. For example, Hungary received 14,393 requests to arrest people in 2008, but only 113 people were arrested under an EAW, and of that number, 95 were sent to the requesting state. However, ten member states, including the UK, Italy, the Netherlands and Romania, did not supply any information for the report.

The article notes that a separate report issued in May revealed that while some member states examine each arrest warrant request to check if the crime is serious enough to transfer a suspect to another member state, other EU countries consider such a check superfluous.
European Voice OE blog

PA reports that the Director of the British Chambers of Commerce, David Frost, has written to the Business Secretary Lord Mandelson warning that the EU's Agency Workers Directive, which would give temporary workers the same rights as permanent ones, could cost the private sector at least £1.5 billion. A Government consultation on the directive ends tomorrow.
OE blog Open Europe press release OE briefing

New survey shows 60% Irish voters have some understanding of Lisbon Treaty;
Referendum Commission to distribute material on Treaty
The Irish Times reports that a new survey of 500 Irish voters by Behaviour Attitudes, carried out for the Irish Referendum Commission, has found that 60 percent of Irish voters say they have at least some understanding of the Lisbon Treaty, compared to 44 percent days before the referendum last year. 38 percent said they understand the Lisbon Treaty to some extent, 18 percent understand it quite well and 4 percent understand it very well.

The poll also showed an increased intention to vote, compared with April 2008, with 91 percent extremely or quite likely to vote, and 9 percent quite or extremely unlikely to vote.

Writing for the Irish Times Frank Clarke, Chairman of the Referendum Commission, argues that although the Treaty is a "complex document", he wants to "reject the patronising talk that 'ordinary people' could not possibly understand the Lisbon Treaty". He goes on, "In about a month's time every household in Ireland will receive a leaflet from the [Referendum] commission detailing the main provisions of the treaty and explaining some key issues". However, he adds that "Since the referendum on the treaty in June of last year, the treaty itself has not changed."
Belfast Telegraph Irish Times Open Europe briefing OE blog Irish Times: Clarke European Voice

MEP Cohn-Bendit: the proposal to nominate Tony Blair as first President of the European Council is absurd
The FT Deutschland argues that "Tony Blair failed too often as a European and as a statesman in order to represent the EU in the world." According to the article MEP Daniel Cohn-Bendit believes the proposal to nominate Tony Blair as first president of the European Council is absurd. The first person who assumes the office will contribute largely to shape the outlines of the new post - and a worse nomination for this post than Tony Blair is hardly imaginable, writes the paper.
Financial Times Deutschland OE Blog

Lords committee attacks "very frustrating" EU CAP budget
PA writes that in a new report the House of Lords EU committee has attacked the EU's generous farm subsidies saying it is 'disappointing" and "very frustrating" that a huge portion of the EU budget was spent on the CAP rather than on fighting the financial crisis. Baroness Cohen of Pimlico said: "At a time where it is clear that Europe's economy needs major economic stimulus it is very frustrating that so much of the EU's spending continues to be channelled to agricultural spending that provides very poor value for money".
PA HoL report Scotsman

Member states ignore their own legal advice in excluding MEPs from US data sharing talks
EUobserver reports that EU member states ignored the advice of their own legal experts in cutting MEPs out of talks with the US on access to data held by SWIFT. The new data pact will give US Treasury officials the right to access EU citizens' banking transactions to investigate potential terrorist activity. This week EU foreign ministers opted to give the Swedish EU Presidency the exclusive right to handle talks despite a confidential paper from the legal services of the EU council which said that the European Parliament should have co-legislative powers on the pact.

Meanwhile, according to Faz, loud protest against EU-US agreement on sharing sensitive bank date seems to come only from German politicians. The sharp voices caused irritation at the EU Commission who feels wrongly treaty to be in the pillory.
EUobserver FAZ

Attacks continue on Conservatives' alliance in the European Parliament
In the New Statesman, James Macintyre looks at Michal Kaminski, the leader of the Conservatives and Reformists group in the European Parliament, which includes the 24 Conservative MEPs. He writes that Kaminski "belongs to Poland's Law and Justice Party, one of whose MPs, Artur Górski, described the election of Barack Obama in the US as 'a disaster' and 'the end of the civilisation of the white man'".
Independent: MacShane Guardian Guardian: Garton Ash New Statesman: Macintyre

New study: EU code of behaviour is insufficient - Commissioners take liberties when it comes to second jobs
A new study, commissioned by the European Parliament, has concluded that
the code of behaviour for the EU Commissioners leaves too much room for political activities outside the Commission. Furthermore the specifications in order to prevent financial conflict of interests are too vague. The German CDU party is demanding amendments to the code of behaviour and making the result dependent on the re-election of Commission President Barroso.
Handelsblatt

Constitutional law expert appeals against EP election to the German Parliament
According to German magazine Focus, constitutional law expert Hans Herbert von Armin has challenged the results of the European Parliament elections in front of the German Parliament. Von Arnim argues that the Constitutional Court's recent judgment on the Lisbon Treaty clearly shows that the five-percent threshold cannot be justified at EP elections, and that: "eight MEPs...received their mandate wrongly and have to return it". If the Parliament rejects his appeal, he will bring the case in front of the German Constitutional Court.
Focus

European Voice reports that the Swedish government is making preparations for an extra EU summit in Brussels in mid September to discuss a common position for the G-20 summit which will be held on 24- 25 September.
European Voice

European Voice reports that the EU Commission has organised to send more than 100 EU staff to monitor the presidential poll in Afghanistan, making it one of the largest EU missions.

Meanwhile, the IHT reports that after a plea from the US for Europe to bolster its troops in Afghanistan, Spanish Prime Minister José Luis Rodríguez Zapatero announced that he would increase the country's forces in the North West region of Afghanistan.
European Voice IHT

Greenpeace and Friends of the Earth Europe criticise the European Food Safety Agency (EFSA) for allowing the cultivation of MON810 corn, a GMO product banned in 6 member states for the unknown risks it may carry for health and the environment, Pleinchamp writes.
Actuenvironnement Pleinchamp

Poland will not be able to join the euro by the target date of 2012, the country's Deputy Finance Minister, Ludwik Kotecki, said yesterday.
FT

Expansion reports that the European Commission yesterday warned some member states, including Spain, to correctly apply the directive on sexual discrimination in the workplace.
Expansion

EurActiv reports that French gas utility GDF Suez is likely to join the Nord Stream pipeline project, bringing Russian gas directly to Germany, bypassing Ukraine.
EurActiv

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