Open Europe press summary: 26 August 2009

Europe

Irish government urged to take independent advice and limit spending on Lisbon Treaty referendum
The Irish Times reports that the Irish government has been urged to accept a recommendation that spending limits be imposed on companies campaigning in referendums, following the news that US multinational Intel will spend several hundred thousand euros backing the Yes campaign. No campaigner Roger Cole, Chairman of the Peace and Neutrality Alliance, said it was unfair that there were no limits imposed on wealthy companies.

Ireland's Standards in Public Office Commission, the independent body which oversees spending in elections and referendums, in its annual report, has called for a redefinition of what constitutes a "third party", subject to limits on spending in a referendum campaign. It argued that the definition should not be determined on the basis of whether an individual or group had received a donation, but should focus instead on how much they spent.

Meanwhile, the Irish Independent reports that Irish Prime Minister Brian Cowen is planning to take a "major gamble" by letting the public know about tax reform proposals before the upcoming referendum on the Lisbon Treaty. The Commission on Taxation's report is already generating opposition from farmers over proposals to increase the inheritance tax on a family farm but government sources do not believe the report will impact negatively on the Lisbon vote. However, the article notes that Foreign Affairs Minister Micheál Martin had expressed reservations about letting the report out before the second referendum.

Writing in the Irish Independent, Fionnan Sheahan notes that, "Within political circles...there are definite concerns the referendum still hangs in the balance, with its passing by no means guaranteed at all."

The paper notes that the Irish Fishermen's Organisation (IFO) is now going to lobby for a 'No' vote after accusing the EU of undermining their livelihoods. IFO south-west Chairman Ebbie Sheehan said nothing had changed in Brussels since 2008 when fishermen first rejected the Lisbon Treaty.
Irish Independent Irish Times Irish Independent: Sheahan Irish Independent 2

Conservatives could increase Britain's EU contributions in exchange for farm subsidies reform
The Telegraph reports that Shadow Europe Minister Mark Francois has said that a Conservative government would be willing to increase Britain's financial contributions to the EU, in exchange for reforms to European farm subsidies. He is quoted saying, "If we come into power, we will be in the foothills of beginning to negotiate a new financial perspective that will run from 2014. Our view is that there should be no further reduction in the British rebate unless it is accompanied by really fundamental reform...The point of principle is that we would be very reluctant to surrender anything further of the rebate unless we thought there was genuine reform available."

In 2005, the Labour Government agreed a deal to cut the British rebate from the EU budget, negotiated by Margaret Thatcher in 1984, in exchange for reform to Common Agricultural Policy (CAP) farm subsidies. The paper reports that there has since been little change in the CAP, but the cost of Britain's EU membership is still rising, with every household having to pay £257 towards the EU next year.

Meanwhile, the Economist's Charlemagne blog looks at the circumstances surrounding the cut in Britain's rebate and writes, "To cut a long story short, Mr Blair was snookered by the French, among others... The French very cleverly managed to force the British into a position where they had to choose between defending their rebate and cutting funds earmarked for the new member states from the ex-Communist block who had joined a year earlier."
Telegraph Economist: Charlemagne blog Conservative Home Open Europe research

South African Minister criticises EU's "commercial interests" in concluding EPA trade agreements
Reuters reports that the South African Trade Minister Rob Davies has said the EU is too focused on commercial interests in its Economic Partnership Agreements (EPAs) with African countries, saying "What's clear to us is that although the stated intentions in the EPA process is to provide some legal basis to enhance access into the European Union market ... it's also overlaid with a series of trade-related obligations... And we do see those trade-related obligations as deriving from commercial ambitions of the European Union, partly in relation to the competition with China and India."

Davies also said that "There has been more of a willingness to give and take", with the current EU Trade Commissioner Catherine Ashton, compared with the former Commissioner Peter Mandelson before her.
Reuters Open Europe research OE blog

Spain supports González EU Presidency over Blair
Euractiv France reports that the Spanish population, as well as several political leaders, are showing their support for the former Spanish Prime Minister, Felipe González to become EU President, if the Lisbon Treaty is ratified. The article reports on a study undertaken by the Spanish think tank Real Instituto Elcano which showed that 42% of people surveyed support González's candidacy while only 23% support Tony Blair's candidacy.
Euractiv France OE blog

UK plans to cut off file sharers' internet access could be illegal
The Government could cut off the internet access of those caught illegally downloading copyrighted music and films under controversial plans announced by Business Secretary Lord Mandelson, the Mail reports. Internet service providers have expressed concern over policing their customers' internet activity.

The decision to reintroduce the idea of disconnection, which had previously been ruled out, is similar to a proposal ruled illegal by a court in France, where the court rules that any decision to disconnect a person's internet connection would have to be made by a judge with the appropriate burden of proof.

The EU's telecoms package is currently being negotiated, and contains a provision which would require a judicial decision before internet access could be cut.
Mail Sun OE blog BBC BBC blog WSJ Times: Naughton Guardian

France unveils new legislation on bankers' pay;
EU leaders will meet for extra summit ahead of the G20 to decide on common position
The FT reports that French President Nicolas Sarkozy has unveiled tough new legislation to regulate bankers' pay which will see banks barred from lucrative French government mandates if they fail to abide by new international guidelines on pay.

The French measures include deferring traders' bonuses over three years, paying one-third of awards in shares, and imposing strict long-term performance criteria in order to receive full payment. Top French banks including BNP Paribas, Société Générale and Crédit Agricole have signed up to the new rules.

Meanwhile, EUobserver reports that EU leaders are to gather on 17 September for an extra summit in Brussels to decide on a common European position ahead of the G20 summit. The WSJ reports that bankers' pay has become one of the most divisive issues among G20 members as they prepare for the summit, and suggests that, "it would appear European leaders may not be reading from the same script, with some pressing for tougher reforms... Even before Tuesday's deal with banks, the French government was saying the UK's code on remuneration published earlier this month didn't go far enough and wasn't appropriate as a global agreement."
WSJ Guardian FT Telegraph Welt EUobserver

Commission calls for private bodies to manage internet traffic
The European Commission is calling for international talks on managing internet traffic, which is currently managed only by the California-based Internet Corporation for Assigned Names and Numbers, ICANN, which operates under a contract with the US government. In a paper titled "Internet governance: the next steps", the Commission proposes that ICANN should be managed by private bodies "within principles agreed upon by public authorities but without government interference in day-to-day operations".
Commission press release

EU directive on hedge fund regulation criticised by new report
The FT's FM blog reports that a report by Mercer, a consulting group, has warned that the EU's proposals for regulating the alternative investment industry could reduce choice and returns for institutional investors. The report says that, while the pensions industry supports better regulation it is concerned that "restricting the pool of alternatives managers will limit their options for achieving returns and diversifying their investment portfolios," according to Robert Howie, alternatives researcher at Mercer.

The report also warned that the EU should give greater consideration to the global nature of the industry after concerns that EU based investors could be prevented from investing outside the EU.
Hedge Funds Review FT: FM blog

German Parliament debates new law to ratify Lisbon Treaty
Today, the Bundestag is holding the first official reading on the new law required by the German Constitutional Court in order to ratify the Lisbon Treaty. Various German political parties have already agreed on most points of how to strengthen the parliament's rights in EU decision-making procedures.

The final voting in the Bundestag on the new law to ratify the Lisbon Treaty is to be held on 8 September.
Sueddeutsche.de Maerkische Allgemeine Reuters Tagesschau FAZ

European Commission President José Manuel Barroso will next week send his political programme to the political groups in the European Parliament in a bid to secure their support for a second mandate.
EurActiv

Finnish daily Helsingin Sanomat reports that the phasing out of incandescent light bulbs by the EU will require a significant increase in specialised waste-disposal points.
Helsingin Sanomat Express

The Swedish EU Presidency is embroiled in a diplomatic crisis with Israel over an article which appeared in Swedish paper Aftonbladet about Israeli soldiers harvesting Palestinian organs. Israeli Finance Minister Yuval Steinitz has said that Swedish Foreign Minister Carl Bildt, due to visit Israel next month, is no longer welcome after refusing to condemn the story.
EUobserver

EUobserver reports that the EU's EULEX mission in Kosovo was the target of violent protests yesterday by those opposed to the presence of the international community in the country.
EUobserver

Wirtschaftsblatt reports that the Bulgarian Finance Minister Simeon Djankow wants to re-enter accession talks on the European Exchange Rate Mechanism (ERM II) which entails a two year practical test to introduce the euro. According to Djankow, the talks with the European Commission could start as soon as September.
Wirtschaftsblatt

The Independent has a profile of Philippe de Villiers, the only MEP elected under the Libertas banner in the European elections in June, and questions why French President Nicolas Sarkozy has brought him into his broad political coalition.
Independent

Handelsblatt reports that the European Commission will initiate legal procedures against Germany later this year due to its increased budget deficit. Deficit proceedings against the UK and Ireland are already underway.
No link

The IHT reports that German Chancellor Angela Merkel has received criticism in various German newspapers for coming out so strongly in favour of the Magna bid for the Opel car manufacturer.
IHT

EU health officials yesterday issued a list of people who should be the first in line for vaccinations against the H1N1, or swine flu, virus, although they said the lists should be "indicative".
IHT AFP

Levante reports that Spanish PM Jose Luis Zapatero, is to begin an intense international agenda next week in Sweden, which amongst other things, will serve to prepare the Spanish EU Presidency.
Levante

Israeli PM Benjamin Netanyahu has called on European governments to end backing for the Israeli army veterans group, Breaking the Silence, which published a study about alleged abuses by soldiers in Gaza in January, reports EUobserver.
EUobserver

The Express reports that John Prescott, the climate change 'rapporteur' for the Council of Europe, has said that securing a new climate deal at Copenhagen later this year "will be 10 times more difficult than Kyoto".
Express BBC Today programme

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