Open Europe press summary: 31 July 2009

Europe

US government to monitor Europeans' bank transactions under controversial EU proposal;
Swedish Parliament's EU Scrutiny Committee was notified via text message 30 minutes before decision was made
The Swedish media reports on a controversial EU proposal that would grant the US government access to all bank transactions in the EU through the SWIFT system. SWIFT operates a worldwide financial messaging network which exchanges messages between banks and other financial institutions, with around 15 million SWIFT transactions occurring every day.

The secrecy surrounding the decision has been subject to widespread criticism. As has been reported throughout the week, EU ministers decided to ignore their own legal experts' advice which said that the European Parliament should have co-legislative powers on the issue. Instead, the Council of Foreign Ministers on Monday decided to give the Swedish Presidency the exclusive rights to handle the talks with the US. Prominent Swedish blogger and member of the Pirate Party, Henrik Alexandersson, argues that the decision to cut out the EP and give the Swedish Presidency exclusive negotiation powers, will mean that it will be virtually impossible for citizens to hold politicians to account over the possible privacy breaches that the decision will lead to.

Meanwhile, Swedish Television notes that the Swedish Parliament's EU Scrutiny Committee - which must give its assent before the Swedish government signs up to an EU decision - was given only 30 minutes notification via a text message to prepare a decision, and was given no documents to inform it on what the decision was about. Alexandersson argues that the Swedish Government might knowingly have withheld information from the Parliament to avoid debates and protests.

Meanwhile Deutsche Welle reports that EU Justice Commissioner Jacques Barrot has said the EU will "ensure full, perfect reciprocity", and insist on equal access to US bank data.
Alexandersson's blog EU Observer Aftonbladet Europaportalen Deutsche Welle

Briton fighting extradition under EU arrest warrant
The Evening Standard looks at the story of Deborah Dark, a British citizen who is fighting extradition to France under the EU's European Arrest Warrant for an alleged cannabis offence 20 years ago. A French court acquitted her but neither she nor her lawyer was informed that the French prosecution later appealed the decision and she had been sentenced to six years in prison, in absentia.

For the next 15 years, Dark travelled undisturbed to France, unaware of her status as a wanted convict. The article notes that "so it might have continued but for creation of the European Arrest Warrant, enacted in 2003, to enable the fast-track extradition of terrorist suspects. This changed everything. In 2005 a public prosecutor in Pau applied for and was granted a European Arrest Warrant against her." The article notes that Dark "remains stuck in a Catch-22 situation" because although both a Spanish court and Westminster Magistrates Court have refused to extradite her, due to "passage of time", she is unable to clear her name without returning to France, risking a retrial.

Free Trials International has said that changing the legal system and amending European law made by the Justice and Home Affairs Council of the European Union will require key British politicians to take up her case, which the article notes "could be a long, hard road." The article quotes her saying, "The Home Office say they can't help, my MEP, Baroness Sarah Ludford, hasn't responded to my numerous emails and pleas for help. Everywhere I turn, they pass the buck."
Evening Standard OE blog

Irish MEPs criticise abortion petition
Irish MEPs in the Alliance of Liberal and Democrats group of the European Parliament have criticised two of their colleagues, British MEP Sarah Ludford and Dutch MEP Sophie in't Veld for signing a petition asking the EU to make abortion available in Ireland.

The petition, which has gathered 3,947 signatures, aims to use the "citizens' initiative" clause in the Lisbon Treaty which promises that if one million signatures are collected from European citizens on a particular issue, the European Commission must consider proposing legislation.

Meanwhile the Irish Times reports that journalist Nell McCafferty yesterday launched a "Women for Europe" campaign, saying that she wants to live "under the protection of the EU" and not "in a country ruled exclusively by (an) Irish government". The new campaign to support a "Yes" vote in the Lisbon Treaty referendum claims that the Irish government wants to make women "barefoot, pregnant and back at the kitchen sink", but that by voting "Yes", the rights of Irish women would be protected.
Irish Times Irish Times 2 OE blog

Common EU embassies under Lisbon Treaty would be bad news for human rights
Nathan Shachar argues today in an opinion in Swedish daily DN that the idea of common EU embassies would be bad news for human rights. In order to establish common embassies, EU member states must have shared national interests and this is not the case. Sweden wants to promote human rights in Cuba while Spain and France see investment opportunities and ignors human rights abuses, so common EU embassies would mean that Sweden could be overruled. He adds, "If the Lisbon Treaty is ratified and we submit our diplomacy to the EU our ability to promote a dissenting view will cease".

Comment: The EU Lisbon Treaty paves the way towards common EU embassies, by creating an "EU External Action Service", and by allowing the EU to determine rules on diplomatic and consular protection by qualified majority vote. In 2005 this led Spanish Prime Minister Jose Zapatero to conclude: "We will undoubtedly see European embassies in the world, not ones from each country, with European diplomats and a European foreign service." (Associated Press, 17 February 2005)
OE guide to the Lisbon Treaty DN

Treasury clamps down on fraudulent transactions of EU's carbon permits
The FT reports that, in order to clamp down on fraud, the UK Treasury has imposed a zero rate of value added tax (VAT) on carbon credits traded within the EU's emissions trading scheme, designed to reduce carbon emissions across the bloc. The article notes that the move is highly unusual because changes to VAT need to be agreed by the European Parliament. The decision to press ahead with the change without prior permission reflects the severity of the threat posed by the fraud.

The fraud, known as "missing trader intra-community fraud", can arise because goods or services are allowed to be traded VAT-free between member states. It occurs where the UK company purchasing the emissions allowances from overseas sells them to another UK company, charges VAT but then fails to pay it to Revenue and Customs, and disappears.

The paper notes that the ability to trade freely in emissions allowances is an important feature of the EU emissions trading scheme but it exposes the market to fraud because of the high volume, value and speed of the trades. Moreover, the fact that the allowances are surrendered only once a year provides fraudsters with opportunities to steal VAT following cross-border acquisitions.
FT

Declan Ganley: "There is a culture of opposition to real choice in the EU"
Writing in Europe's World, Declan Ganley, the founder of Libertas, argues that although the theme of the EU's campaign for the European Parliament elections was 'It's Your Choice', "there is a culture of opposition to real choice in the EU". He goes on, "If Europe's laws are to have primacy over national sovereignty then those laws must be decided on by elected officials. Similarly, we should have fewer meetings, and those we do have should be held in the open and not behind closed doors, and we should all be allowed to know how MEPs are spending our money."
Europe's World: Ganley

UK Government to launch inquiry into impact of EU AIFM Directive;
Swedish Minister: It is "obvious" that hedge funds need regulation
An article in the WSJ reports that the Government yesterday launched an inquiry into the EU's proposed Alternative Investment Fund Managers (AIFM) Directive. The article notes that the inquiry will focus on "whether a pan-European regime is necessary and whether the E.U. has consulted adequately" as well as "the risks and benefits associated with alternative investments and whether the proposals will help to create a more transparent market or whether they go too far and are likely to damage London as a financial centre".

An article in Hedgeweek reports that Luxembourg could benefit from the Directive, suggesting it "could help to solidify the country's position as a burgeoning domicile and servicing centre for alternative funds".

Meanwhile SvD reports that the Swedish Minister for Financial Markets, Mats Odell, has said it is "It is obvious that hedge funds and venture capital funds need regulation" and notes that the Swedish "government together with the Commission and the member states will try to find a suitable solution". He also reportedly wants to introduce new common rules on bonuses for bankers throughout the EU, as part of the Capital Adequacy Directive.
Hedgeweek WSJ SvD DI

Chairman of Paris Europlace: "Paris has resisted the crisis better than London"
In an interview with Le Figaro, Gerard Mestrallet, the Chairman of Paris Europlace (the leading association representing Paris' financial district), says "Paris has resisted the crisis better than London, thanks to the quality of its regulation and the solidity of its financial institutions". He says, "We are not obsessed with competition with London", adding that "We want the most efficient and competitive financial industry" so that the French economy performs to its best ability.
Le Figaro

In a letter to the FT, the Directors of Employment Policy at organisations including the Institute of Directors and the CBI argue that the Government must take care when implementing the EU's Agency Workers Directive to cause the least damage to the temporary working sector, and that implementation should not take place before Autumn 2011, the latest possible date.
FT: Letters

Bill Carmichael: "Sensible response" would be to delay implementing EWTD
Writing in the Yorkshire Post, columnist Bill Carmichael looks at the reduction in junior doctors' hours from 56 to 48 hours a week under the EU's Working Time Directive (EWTD), due to come into force tomorrow. He writes that "The sensible response would be to postpone the introduction of the EWTD until the danger from swine flu has passed...that is precisely what the Royal College of Surgeons and RemedyUK have recommended to the Government. But their pleas have fallen on deaf ears."
Yorkshire Post Open Europe research OE blog

IMF loan to Iceland linked to political row with Britain over banking collapse
The IMF has delayed handing over the second tranche of Iceland's emergency bail-out loan and the Telegraph reports that it is thought to be linked to the political row over compensation for Britain's Icesave customers, as opposition grows in Iceland to the terms of a loan from Britain and the Netherlands to help the country cover the liability.
Telegraph

Charlemagne: The EU needs to decide on its foreign policy goals
The Economist's Charlemagne column looks into the reasons why the prospect of Tony Blair becoming the future President of the EU Council has been received with so much hostility, saying that the animosity is not due to Mr. Blair's actions as Prime Minister, but rather to a fear of "what a President Blair would say about the EU, and its foreign-policy goals". It goes on to argue, "It is time that Europeans had a proper debate about the global presence they want".
Economist: Charlemagne OE blog

EU softens measures on bank lending - reform likely delayed until 2010
Although EU finance ministers agreed on 7 July to tighten the criteria for bank loans given as state aid, the FT Deutschland reports that EU Internal Market Commissioner Charlie McCreevy is moving away from setting a fixed upper limit for bank debts. The FTD cites a source close to the Commission saying, "There is strong resistance of governments who do not want a fixed quota". This reportedly includes Germany. The Commission is supposed to present legislative proposals on new capital requirements for banks on October 2009, but now the legislative proposal is expected to be delayed until 2010.
Financial Times Deutschland

On his Telegraph blog, Conservative MEP Dan Hannan refutes claims that the leader of the European Conservatives and Reformists group in the European Parliament, Michal Kaminski, is anti-semitic.
Telegraph: Hannan blog Independent: Letters

TurquieEuropeene looks into the 'partnership' between Turkey and the EU proposed by the German and French governments, and quotes German Foreign Minister Frank Steinmeier saying, "I'm not sure what the notion of privileged partner really means".
TurquieEuropeene

The European Commission has announced that airlines may not prevent potential swine flu sufferers from boarding an aircraft, warning that airlines can only take such measures on orders from a public authority.
EUobserver USA Today

The WSJ reports that the IMF is urging eurozone policy makers to sustain fiscal stimulus next year and keep interest rates low.
WSJ Irish Independent Economist La Tribune Europaportalen

A leader in the WSJ looks at the EU's decision to impose import tariffs on Chinese steel pipes and argues that this is a "mundane antidumping case" and concludes, "Europe can't afford to shoot itself in the foot with these tariffs."
WSJ: Editorial Tax News

Handelsblatt reports that, for the first time, the European Commission has banned a lobby group from its voluntary register of lobbyists, for failing to give a correct declaration of the costs of its lobby work.
Handelsblatt

The Economist argues that Spanish Prime Minister José Luis Rodríguez Zapatero risks prolonging the recession with his populist policies.
ABC Expansion Economist: Leader

The Austrian People's Party (ÖVP) has officially named former Vice Chancellor Wilhelm Molterer as their preferred successor to EU Commissioner Benita Ferrero-Waldner. However, Chancellor Werner Faymann of the Social Democratic (SPÖ) - the ÖVP's coalition partner - reacted to the news saying: "It is too early to discuss names."
Austrian Times Die Presse

UK

Foreigners face ban on paying for UK transplants
New rules being considered by the Government will mean that foreigners will not be able to receive transplants in the UK as private patients. This comes after it was discovered earlier this year that fifty British donor livers were given to foreign patients over a two-year period.

The BBC reports that in the past 10 years the UK has sent more than 300 organs to other EU states, but received only 120 in return.
Telegraph BBC

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