Open Europe press summary: 7 July 2009

Europe

Irish Foreign Affairs Minister criticised over plan to send out postcards costing €220,000 to "spin" the Lisbon Treaty
Irish Prime Minister Brian Cowen has given Foreign Affairs Minister Micheál Martin the job of leading the campaign for a Yes vote in the second Lisbon Treaty referendum in October. The Irish Independent reports that Martin is already embroiled in a "blazing row" over his plan to send out postcards costing €220,000 to every household in Ireland, giving an update on the Lisbon Treaty.

Postcards are being sent to households explaining the outcome of last month's European Council, confirming the retention of a European Commissioner, the lack of impact from the treaty on abortion, neutrality and tax, along with the protection of workers rights. Martin said the distribution is part of the "Government's determined effort to ensure that the public will be well informed about the treaty and Ireland's legal guarantees".

The Irish Times notes that the Irish government says that 'guarantees' on taxation, on the protection of the right to life, the family and education and Irish neutrality will become legally binding immediately once the Treaty enters into force. The postcard reads: "The Government has ensured, after discussions with all EU member states, that when the people vote on the Lisbon Treaty later this year, it will come with new legally-binding guarantees to address their main concerns." However, Ireland's 'guarantees' will not become legally binding in EU law until they are ratified by all the member states in a new protocol.

Former Green Party MEP Patricia McKenna, now chair of the People's Movement, said, "Taxpayers' money, from both sides of the Lisbon debate, is being used to peddle Government spin that these guarantees will somehow change the treaty's impact on Ireland." She added that "But this is legally impossible without changes to the actual text of the treaty, or legally binding protocols attached to, and ratified by, all member states before the treaty comes into force."

Legislation necessary to hold the second referendum will be passed by the Irish Dáil and Seanad after two days of debate this week. Irish Labour Party MP Joe Costello said MPs would have just six hours to debate it, adding, "It is unacceptable to deal with all stages of any Bill on a single day without giving time for debate, reflection and amendment."
Irish Independent Irish Times European Voice

Der Spiegel: German Lisbon Treaty judgment borders on "Declaration of War on the European Court of Justice"An analysis in Der Spiegel on the recent judgement of the German Constitutional Court on the Lisbon Treaty notes that the decision "very elegantly demolishes the old European idea that the recognised democratic deficits in the EU would disappear completely of their own accord by enhancing the rights of the European Parliament".

The article adds that the judgement borders on a "Declaration of War on the European Court of Justice", as "the German Constitutional Court has essentially declared itself the highest supervisory body in conflicts between Germany and the EU, and thus explicitly placed itself above the European Court of Justice (ECJ)."

The new law which the Court has requested would "allow every citizen to file a special EU suit with the German Constitutional Court against unpopular European regulations and standards." It adds that "the court has limited the highhandedness of the German government, which has all too often pushed through political goals that were difficult to achieve back home by going behind the back or against the will of the Bundestag."

In an article in the Irish Independent, Bruce Arnold debates the significance of the German judgment for Ireland, saying that the 'battle' of the second Irish referendum of the Lisbon Treaty "has been fundamentally, even irretrievably, changed by the German judgment". He argues, "While Germany has considered, in the Karlsruhe Judgment, its relationships with the EU and with the treaty, our leaders, Brian Cowen and Micheal Martin, have acted like corner boys and rabble-rousers, rushing to Europe for a quick fix designed to get a 'Yes' vote. There was no serious thought or dignity at all."
Der Spiegel Analysis in English Irish Independent: Arnold

Commission pushes for climate change pledge at G8;
WSJ: The EU's political will is fading in the face of economic realities
EUobserver reports that the European Commission will be pushing for clear climate change commitments from leaders at the G8 summit in Italy, ahead of the United Nations climate change meeting in Copenhagen. Specifically, the Commission is pushing for the leaders to agree on the need for a 50 percent reduction in global emissions by 2050 on 1990 levels, something that would necessitate an 80 percent emission cut from developed countries.

"This is the most important issue, to have binding targets from the developed countries. Without binding targets we will not convince the developing countries to give their contribution to this global response," said Commission President Jose Manuel Barroso.

Meanwhile, an editorial in the WSJ looks at the EU's Emissions Trading Scheme (ETS), the EU's flagship policy for reducing carbon emissions, and argues that "enthusiasm may be reaching its limit. Governments in industry-heavy countries are now less willing to sacrifice jobs for cooler temperatures."

The article notes that "Germany's generally environmentalist Chancellor Angela Merkel insisted on exemptions for her country's industry from December's EU climate package", while "Italy insisted on a clause in the December climate deal that requires the EU to renegotiate its climate policy after the United Nations summit in Copenhagen later this year."

The article quotes Open Europe's estimate that the EU's climate package would cost governments, businesses and householders in the EU-25 more than €73 billion a year until 2020, adding that "No wonder leaders decided to water it down." It concludes, "Western European leaders are the latest to discover that climate-change talk is cheap, but carbon-emissions regulation is expensive."
EUobserver Euractiv WSJ: Editorial Reuters Open Europe research

Open Europe's Pieter Cleppe was quoted on Polish news site Onet.pl in an article evaluating the Czech Presidency of the EU.Onet.pl

EU plans new laws to strengthen capital requirements for banks
The front page of the FT reports that new EU laws to drive banks to strengthen capital requirements will be unveiled in October. A draft report, expected to be backed by EU finance ministers meeting in Brussels today, says that there is a "strong case" for curbing existing rules on banks' funding needs to build more resilient capital buffers in economic good times and avoid pro-cyclicality. The aim of the new laws would be to make it easier for banks to build up provisions in good times, which could then be used to weather future economic storms.

The Irish Times reports that finance ministers will also discuss a more immediate temporary relaxation of the Basel II rules that govern how much capital banks must hold. German Finance Minister Peer Steinbrück is expected to urge other EU ministers to help alleviate capital pressures on banks during the crisis so they are able to lend to businesses that lack liquidity.

Meanwhile, the Telegraph reports that the EU has no plans to reverse economic stimulus measures, with Jean-Claude Juncker saying, "We haven't reached the time yet at which the exit strategy could be applied. We're still in the middle of the crisis."
FT City AM Irish Times WSJ Telegraph

Hedge fund industry "godfather" warns of retaliatory action for proposed EU directive
In an interview with the FT, Stanley Fink, the former Chief Executive of Man Group known as the "godfather" of the British hedge fund industry, said that the European Commission's proposed regulation on hedge funds would be "very restrictive for overseas hedge funds and then that could, and probably would, lead to retaliatory action whereby European hedge funds will be stopped from marketing in other jurisdictions, and that could be very bad for the industry." Asked if the restrictions could spark an international hedge fund war, he said: "I think that could be one of the unintended consequences."

He went on to say he thought that "quicker intervention from the UK Government could have stopped this more quickly going as far as it did in the way that it did" and added, "It is hard to imagine that legislation that harmed agriculture wouldn't have been killed at birth by the French, and legislation that damages the car industry wouldn't have been stopped by the Germans".
FT City AM Reuters

Jerzy Buzek for European Parliament President
Polskie Radio reports that former Polish Prime Minister Jerzy Buzek's chances of being elected President of the European Parliament have greatly increased after Italy's Mario Mauro removed his candidacy. The FT's Brussels blog offers a critical analysis to Buzek's imminent appointment saying that although EU politicians could be congratulated for giving the position to one of the EU's newer member states, "The fact is that, by giving this post to Buzek, older and bigger member-states in western Europe are making sure that they will get all the really big jobs [in the EU] when they come up for grabs later this year".
FT: Brussels blog Polskie Radio

Brown and Sarkozy urge EU governments to keep on spending
EUobserver reports that Nicolas Sarkozy and Gordon Brown expressed a "total convergence" of views in their meeting ahead of this week's G8 summit in Italy. Gordon Brown argued that governments must keep spending to return to growth: "If we can get growth, if we can get unemployment down, if we can keep interest rates and inflation down, then there is scope to do the things we want to do". Nicolas Sarkozy is quoted as saying, "Of course we need to combat indebtedness and try to restrain deficit, but we will only achieve that if we restore growth and if we restore our economies to health."
EUobserver Figaro Mirror Irish Times Independent BBC WSJ ABC

EU budget expected to rise by nearly 4%
Die Presse reports that the EU budget is expected to have risen by 3.79% by 2010 to €120.5 billion, representing 1.02% of EU-wide GDP.
Die Presse

Eurozone nations divided over single seat at the IMF
EUobserver reports that finance ministers from the 16-member eurozone are split on a decision that would give the currency area one seat in the IMF. European Commissioner for Economic and Monetary Affairs, Joaquin Almunia, said "The best way to have a clear and strong defence of our common interests as an economic and monetary union at the IMF level is to have a single chair". However, French Finance Minister Christine Lagarde said she did not see a European single-seat as realistic.
EUobserver

Barroso: "Let's be realistic: I am the only candidate for the position and I have the unanimous support of 27 heads of state and government"
The FT reports that European leaders yesterday agreed to make a legally binding recommendation that Jose Manuel Barroso should be re-elected for a second mandate as European Commission President. Barroso will still need to secure the approval of the European Parliament, whose vote has been delayed until the autumn, but the article notes, "The move put pressure on his opponents in the European parliament to stop obstructing his confirmation".

El Mundo reports that Barroso is "calm" about the delay of his nomination by the European Parliament. During a press conference in Brussels yesterday he said "I am very calm. Let's be realistic: I am the only candidate for the position and I have the unanimous support of 27 heads of state and government, I am calm and confident".
FT El Mundo El Mundo 2 Irish Times El Mundo 3

Javier Solana: "I think that 10 years is more than enough"
In an interview with Spanish newspaper ABC, EU High Representative for the Common Foreign and Security Policy, Javier Solana spoke about his decision to retire in mid October when his ten year mandate comes to an end and said that there is no chance of him continuing in his current role, whether the Lisbon Treaty is approved or not. He added that despite having the satisfaction of being named the first High Representative, he could not take on certain responsibilities because the Lisbon Treaty was not approved and specifically because "the referendums didn't work".
El Mundo ABC

John Vinocur: EU falling flat on global stage
In the IHT, John Vinocur looks at the European Union's role in foreign policy, specifically addressing the new powers and posts of EU President and Foreign Minister that would be created by the Lisbon Treaty. He quotes Conservative Shadow Chancellor George Osborne saying, "I don't think that's how the EU becomes more relevant".
IHT

The Times reports that Jadrankar Kosor has become Croatia's first woman Prime Minister after Ivo Sanader stepped down last week. She has vowed to revive Croatia's bid to join the EU.
No link

G8 member state officials claim that preparations for the G8 summit in L'Aquila, Italy are so unorganised that they are considering expelling Italy from the group, leaving Spain to take its place.
Guardian

European Central Bank policy makers are worried the design of some European government bank-rescue plans is discouraging commercial banks from using public funds and could fail to resuscitate lending across the eurozone.
WSJ

LePoint reports that Latvia has accepted conditions put forward by the EU to maintain its deficit at 10% of its GDP in order to benefit from the bail out fund put forward by the IMF and the EU.
LePoint

Total Telecom reports that it is highly unlikely that EU Telecoms Commissioner Viviane Reding will retain her post for a third term.
Total Telecom

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