Open Europe press summary: 3 August 2009

Europe

EU's cap on junior doctors' working hours to cost NHS the equivalent of 5,400 new doctors
Open Europe has calculated that the capping of junior doctors' working week at 48 hours, as required by the EU's Working Time Directive, could cost the NHS the equivalent of 5,400 new doctors. According to Open Europe estimates, the new cap on junior doctor hours, which came into force on August 1, will cost the NHS between £143m and £293m. For the same amount the NHS will spend complying with the new rules, it could employ between 3,835 and 7,858 additional junior doctors.

The research received wide coverage over the weekend. The Sunday Mirror quoted Open Europe's Research Director Mats Persson saying "Smack in the middle of a swine flu pandemic these stringent new rules could not come at a worse time." Sky News online quoted Mats saying that "this scenario was unforeseeable when EU ministers rubber stamped these rules in Brussels almost a decade ago, but underlines precisely the reason why governments must be extremely careful when signing up to laws in Europe." The findings were also picked up by Channel 4 News, the Independent, ITN, Yorkshire Post and several regional papers and radio stations.

The new rules continue to receive criticism, with the Royal College of Surgeons warning that the 48-hour cap could "ruin the training" of junior doctors and RemedyUK saying that frontline doctors have a high risk of exposure to swine flu as a result of dealing with ill patients and that this may lead to many absences. "The impact of sick leave in the winter months calls into question how the NHS will be able to continue to deliver services," the group said according to Channel 4 News.

Several experts have also questioned the Government's claim that 97% of all junior doctors are compliant with the new rules. Sky News quotes Dr Andy Thornley, Chairman of the British Medical Association's junior doctors' committee, saying: "We are not reassured by government reports that the NHS is 97 per cent compliant with the new working time regulation as we fear many junior doctors are being pressured to lie about their hours."

In an interview with BBC Radio 5 Live on Saturday, Labour MEP Stephen Hughes blamed the Government for lack of preparation for the incoming new rules for junior doctors, saying they had almost a decade to prepare.
Open Europe press release Sunday Mirror Scotland on Sunday Channel4 News Sky News Independent MSN News ITN Yorkshire Post PA Coventry Telegraph Grantham Journal CityTalk Key 103 Manchester Hinckley Times Loughborough Echo Ormskirk & Skelmersdale Advertiser Southport Visitor Holyhead and Anglesey Mail Staines News Journal Live Midulster today Liverpool Echo Maghull & Aintree Star Formby Times ic NorthWales St. Helens Star Bridlington Today Buckinghamshire Advertiser Lytham Today Motherwell Today Guide and Gazette Mail on Sunday Politics.co.uk

54% oppose Tony Blair becoming EU President
A new YouGov poll for the Sunday Times poll has found that 54 percent of voters disagree with the Government's backing of Tony Blair for EU President and think that appointing Blair to the post would mainly be of benefit to him. 28 percent agree with the position and think it would be good for Britain, while 19 percent say they don't know.

The poll also put the Conservatives ahead of Labour by 17 points, their biggest lead since September. The Conservatives are on 42 percent, Labour are on 25 percent, and the Lib Dems are on 18 percent.
Sunday Times OE blog YouGov poll

French farmers ordered to pay back €500 million in wrongly spent EU subsidies
Le JDD reports that the European Commission has ordered France to pay back €500 million in subsidies given to fruit and vegetable producers between 1992 and 2002. The subsidies were first given as income support for "emergency situations", such as poor harvests and unfavourable weather conditions. However, the farmers used the money to invest in their businesses, including in export and product promotions and buying items such as fridges and tractors. The Commission said that the using the subsidies in such a way "distorted competition". Minister of Agriculture, Bruno Le Maire has announced that the debt is expected to be recovered by September.
Les Echos Le JDD Elysee Inside Le Parisien

German Parliament debates on EU law start today: CDU, FDP, and Greens press for a quick implementation of Court ruling
One month after the Lisbon Treaty judgment of the German Constitutional Court, the German Parliament today starts the official debate on the law specifying the powers of Parliament and the Bundestag (upper house) within EU law-making processes.

While the CDU, FDP, and Green parties are pressing for a quick implementation in order to pass the new law before the elections on 27 September, the CSU continues to demand stronger parliamentary powers in the EU decision-making process than envisioned by the Constitutional Court. CSU Head Horst Seehofer is quoted in Handelsblatt saying: "insufficient amendments within the new law are of no use to anyone". He continues: "This would cause the risk of new complaints at the Constitutional Court - with the effect that the ratification schedule would seriously be threatened".

The CDU and CSU parties are expected to work out a deal at a meeting on 21 August, with a first reading in the parliament expected on 26 August. The fast-track plan is to have the new law adopted on 8 September. The legislation could then be approved by the Bundesrat on 18 September. Constitutional Court judges could only then decide if their concerns have been met.
SZ DPP Handelsblatt EUobserver FAZ

William Rees-Mogg: Mandelson going for Labour leadership?
Writing in the Times, William Rees-Mogg considers the possibility that Lord Mandelson may resign from the House of Lords and run for Parliament at the next General Election, allowing him to potentially take over the Labour leadership. He argues that Lord Mandelson would "use all his influence to secure the Presidency of Europe for Tony Blair"; however he warns that with his support for taking Britain into the Euro, Lord Mandelson's "European policy might make it more difficult to win the next election in Britain." He concludes, "Voters will not vote for Mr Brown because of the economy; they might not vote for Peter Mandelson because of his European views."
Times: Rees-Mogg

Brussels' plans for mortgage curbs criticised
Mortgage lenders have argued that "hasty and excessive" proposals by the European Commission will put the recovery of the housing market at risk. The EC has argued that property is at "the very heart of the current crisis", and intends to remove the discretion which national regulators have to set their own criteria for lending standards. The proposals would mean than banks face greater restrictions on the amount they can lend relative to a property's value. However, the European Federation of Building Societies has said that the proposal will interfere with restoring confidence and that mortgage credits will become significantly more expensive.
FT

EU Commission could create separate financial services Directorate-General
EurActiv reports that September will be a 'hot month' in Brussels for the financial services sector, as the EU prepares to nominate its new Internal Market Commissioner and examine new proposed rules on hedge funds. However, the article reports that it remains unclear whether financial services will remain part of the internal market portfolio, or whether a specific department will be created at the Commission to deal with the financial market dossier.
EurActiv

French judge: Europe and the IMF are about to reduce Iceland "to the rank of a poor country"
In a comment piece in the Telegraph, French Judge and special advisor to the Icelandic Government, Eva Joly, argues that Britain, the Netherlands and other EU member states should accept their share of responsibility for the Icelandic banking crisis.

Also commenting in the Telegraph, Ambrose Evans-Pritchard writes "In their angst, Icelanders look wistfully at the apparent safe port of EU membership. The Althingi has voted to start entry talks. But the storm will have blown over well before an EU referendum is held in two or three years. By then the delayed cluster bomb of Europe's unemployment will have detonated. Try selling EU protection then."
Telegraph Telegraph 2

AIFM Directive is "in the best case, premature, and in the worst case clearly hostile to the hedge fund industry"
In Le Temps, Michael Stepek, a Partner at Hogan & Hartson law firm in Geneva, argues that the US Government's and European Commission's proposed reforms to regulate hedge funds are "in the best case, premature, and in the worst case clearly hostile to the hedge fund industry", adding that it is not surprising that many hedge fund managers are considering relocating to other countries. He argues that the "excessive additional regulation"..."could have positive consequences for Switzerland".

Meanwhile, in an interview with Les Echos, Xavier Rolet, the Chief Executive of the London Stock Exchange, says hedge funds "do not think they are welcome in France or Germany".
Le Temps Les Echos

Bavaria publishes recipients of EU CAP subsidies
The Bavarian recipients of EU agricultural subsidies are published on the internet today. The Bavarian ministry of agriculture reported that the data can be retrieved from the website of the federal office of agriculture and nutrition (agrar-fischerei-zahlungen.de).
Ad hoc news

The Weekend FT reported that China has lodged its first complaint against the EU with the WTO, protesting EU tariffs of up to 85 percent on Chinese screws and bolts. Two Chinese subsidiaries of European firms - Italy's Agrati and Celo of Spain - are exempt from the duties.
FT WSJ

In an opinion piece in the FT, Ralph Atkins discusses the "split personality" of the European Central Bank. He says that on one hand, the ECB likes to "remain aloof" and that it dislikes central banks' activism, whereas on the other hand, over the last ten months, the ECB has slashed borrowing costs faster than ever, and "pumped hundreds on billions of Euros of liquidity in the banking system, and has been far more "activist" than it admits.
FT: Atkins

The Sunday Telegraph reported that the key issue with the EU's Agency Workers Directive is now the implementation date and whether the Directive is transposed into UK law early, or at the last possible minute, which is October 2011.
Open Europe briefing Open Europe press release

Julian Glover argues in the Guardian that the Conservatives are not concerned enough about Europe. He argues that 48 hours after the Irish referendum on the Lisbon Treaty, the Conservatives will gather for their autumn conference, and they need to decide which direction to take. He adds that if the Treaty is ratified by the time they come to power, David Cameron will "have to tell [his party] that tolerating Lisbon is the price it must pay for power".
Guardian: Glover

The BBC reports that the EU and international lending institutions have reached a deal to provide Ukraine with loans worth $1.7 billion to help pay off debts for Russian gas and reform the Ukrainian gas distribution network.
BBC EUobserver European Voice DN

The BBC's Europe Editor Mark Mardell is leaving to become the BBC's North America Editor and will be replaced by Gavin Hewitt from next month.
Telegraph: Hannan blog BBC: Mardell blog

EUobserver reports that a new report from the European Commission has said the EU is renewing threats to impose trade sanctions against the US if Washington does not change copyright rules to guarantee protection for European authors regarding music broadcast in public places.
EurActiv

Swedish Daily SvD reports that the European Commission will look into the legality of fifteen cases of privatisation in Stockholm.
SvD SR

The Telegraph reports that eurozone economies are likely to remain in recession longer than the UK. Alex White, partner at accountancy firm BDO Stoy Hayward, said "The UK seems to be reaping the benefits of a raft of well-timed and calculated moves to stimulate the economy. In stark comparison, sluggishness and indecision has held the eurozone back."
Telegraph

European Voice reports that the unemployment rate in the EU hit 8.9% in June according to the figures which were published today by Eurostat. These figures represent the highest rate of unemployment since 2005.
El Mundo El Mundo 2 La Razon European Voice EUobserver

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