Open Europe press summary: 24 September 2009

Europe

French Europe Minister's call for EU defence budget angers Irish No campaigners
The Irish Times reports that Ireland's Peace and Neutrality Alliance (Pana) has reacted angrily to comments from French European Affairs Minister Pierre Lellouche, that the EU should have a defence budget similar to the Common Agricultural Policy. As reported in yesterday's Press Summary, Lellouche said, "In order to progress with 'defence Europe', it should not be that spending linked to security is completely separate from the EU's financial perspectives".

PANA said militarisation of the EU would be "substantially accelerated" by the Lisbon Treaty. "It is no accident that the Irish supporters of the treaty refuse to confirm that Ireland will not join the military structured co-operation group being established for the more 'demanding' wars the EU is planning in the future," said Roger Cole, PANA's Chairman.

Publico.es quotes the President of the European Left and the German political party Die Linke, Lothar Bisky, saying, "The Lisbon Treaty would mean rearmament. Why does Europe need to arm itself?"

Writing in the Irish Times, Declan Ganley argues that the "Lisbon Treaty is anti-democratic and so is the way it is being ratified", noting that the Treaty would see the establishment of a common foreign, security and defence policy, complete with embassies, diplomatic staff and an EU foreign and security minister.

Ganley adds that due to a "mechanism known as the 'passerelle' or 'passageway' that allows the EU to annex new areas of policy by a simple decision of the Council of Ministers...if we vote for this treaty, we write a blank cheque: they can change the deal and they don't actually have to come back and ask us."

The Irish Independent reports that Socialist MEP Joe Higgins has called on EU Transport Commissioner Antonio Tanjani to resign for campaigning for a Yes vote on a 'whistle-stop' tour with Ryanair boss Michael O'Leary. "Ryanair is one of the biggest airlines in Europe. It has already and may come into further conflict with the European Commission. It puts the commissioner in an utterly compromised position to have travelled around Ireland in a Ryanair plane, campaigning alongside Mr O'Leary," the MEP said.

The Irish Times also reports that former Irish European Commissioner Peter Sutherland has said that Irish politicians are "too parochial" to understand the EU, or the Lisbon Treaty's benefits. He said, "In many ways, our political class have been far too parochial. Only those who have been exposed through council membership [of EU ministers meetings], and what have you, have enough of a handle on this to make a real contribution to the debate."

Wilfried Martens, President of the European People's Party (EPP), when asked what he thought might happen if Ireland voted No again, replied: "It is not a question of revenge...We will still work on the basis of the Treaty of Nice, and there will be an enormous interrogation, an enormous debate within the EU on what to do next", according to the paper.

Meanwhile, on her Mail blog, Mary Ellen Synon argues that events in the Czech Republic may be just as important to the fate of Lisbon as the Irish referendum. She adds that if, due to a court challenge by Czech senators, President Vaclav Klaus refuses to sign the Treaty until after Czech elections in November, EU leaders may be forced to decide on the appointment of the new Commission under the rules of the current Nice Treaty, when they meet at their October summit. Europolitics notes that, while it is unlikely that the Czech Constitutional Court will declare that the Treaty does not conform with the Constitution it could, however, return a similar verdict to that of the German Constitutional Court, which demanded that additional laws be adopted before Treaty ratification, in order to guarantee the rights of the national parliament. This would allow President Klaus another delay in the ratification process.

On his Coulisses de Bruxelles blog Jean Quatremer notes that the President is determined to avoid signing the Treaty in the hope of a Conservative victory in the UK next summer and their promise to hold a referendum.
Irish Times: Ganley Irish Times Irish Times 2 Irish Independent Ireland online Irish Times 3 Irish Times 4 Irish Times 5 Irish Independent 2 FT Reuters EUobserver EurActiv Mail: Synon blog Ceske Noviny Dziennik Publico.es Coulisses de Bruxelles Blog OE blog

Sweeping new powers for EU could see Brussels gain more control of City
In the Telegraph Ambrose Evans-Pritchard looks at EU proposals that would give the Commission a greater role in financial supervision, and notes that the proposals disregard findings by the Lord's European Union Committee that a fresh Treaty amendment may be required for such an increase in EU power. He reports that, "Both the Lords and German legal scholars say the EU may have over-stepped the mark by trying to push through the proposals under single market law (Article 95) by qualified majority vote, which strips states of their veto."

The proposals will create three new authorities to cover banking; insurance and pensions; securities and markets, and will have "binding powers" to impose rulings on Britain's Financial Services Authority and fellow regulators, backed by full-time staff with a budget of €68m.

The article quotes Open Europe Research Director Mats Persson saying, "Key decisions will be taken on a 'one-state, one-vote basis', meaning that the UK will have the same influence as countries which have barely any financial sector at all." The article also mentions Open Europe's research on the proposed AIFM Directive

Meanwhile, Focus reports that the German Insurance Association (GDV) has criticised the proposals, with its Director, Jörg von Fürstenwerth, saying that the proposal would "mingle" the responsibilities of national and EU supervisors. Kurier reports that the German government still has some reservations about the proposals, over concerns that they will force Germany to pay more money into the EU.
Open Europe press release Open Europe briefing Open Europe AIFMD research Telegraph Independent Welt Focus Reuters City AM Guardian Independent: Prosser EUobserver EurActiv BBC European Voice WSJ Irish Times Bloomberg FT FT El País La Vanguardia La vanguardia Cinco Dias FT Handelsblatt Kurier Focus Zeit Versicherungsjournal GDV statement

German ratification of the Lisbon Treaty now only a 'formality'
EUobserver reports that Germany's President Horst Koehler yesterday signed the newly-drafted national laws enabling the country to adopt the Lisbon Treaty, making final ratification of the document at the end of the week a formality. Earlier this week a Berlin academic lodged a further complaint at the German Constitutional Court that the revised laws failed to guarantee the Court's role as "guardian of the constitution", but the Court dismissed the challenge yesterday as inadmissible.
EUobserver Irish Times Focus Umweltruf Focus2 Spiegel Zeit FAZ Handelsblatt Spiegel La voz de Galicia Prensa Latina Eurity.com La Verdad

Pension funds hit out at AIFM Directive
City AM reports that the National Association of Pension Funds (NAPF) has branded parts of the EU's Alternative Investment Fund Managers Directive, "misguided". Chief Executive Joanne Segars, in a letter to EU Internal Markets Commissioner Charlie McCreevy, said "Our main worries about the (proposed regulations) concern the reduction of investment choice, increased costs and the model of regulation that the directive proposes", she wrote, adding that reducing the number of managers and the investment options available to investors would stunt diversity.

Meanwhile, the Evening Standard reports that German Finance Minister Peer Steinbrück has said, "We will effectively change the rules for the financial markets" - a phrase analysts claim is directed at the Square Mile.

The Scotsman quotes Patrik Karlsson, Director of EU Government Affairs at the British Bankers' Association, saying that: "We are not going against Brussels, we think most of the proposals from the European Commission are sensible - for example, we think the AIFM directive on hedge funds is good legislation."
Open Europe's research findings on the impact of the directive was featured in Hungarian paper Nepszabadsag, on Austrian newssite Foonds, and on website Monsters and Critics.
City AM Nepszabadsag Foonds Reuters Open Europe research Open Europe press release Stern Evening Standard Scotsman Monsters and Critics

The FT Brussels blog suggests an Open Europe blog piece, on how taxpayers are funding the Irish Yes campaign, as one for further reading.
FT: Brussels blog OE blog

Several websites from across Europe cite Open Europe's research on the EU's subsidy of IT software designed to detect "abnormal behaviour".
Interia Short News EU portal Lupa

Blair as President of Europe could mean UK losing out on heavyweight Commission portfolio
The front page of the Independent's Life supplement features Tony Blair, and the leading article looks at his quest to become the EU's first permanent President, a position which would be created if the Lisbon Treaty comes into force. The article suggests this is a "defining moment for the EU", because the powers of the job remain vague, so what they will be, will depend very much on who has the job first, "since that may define its remit for a generation or more." It also suggests that having Blair as President could be an "insurance policy" against a British Conservative government, in order to influence British public opinion in a "contrary direction".

Meanwhile, European Voice looks at the scramble for high profile jobs in the next Commission and suggests that, as the UK is keen to install Tony Blair as Council President, Jose Manuel Barroso would not have to give a heavyweight portfolio to the UK, such as competition or the internal market.
Independent European Voice OE blog Prospect Magazine

McKenna: Commission decision on Polish aid to Dell a "slap in the face" to Irish workers
The WSJ reports that the European Commission has approved a €54.5 million aid package from Poland for Dell to build a factory in the country. Dell announced at the start of the year it would close its Limerick plant in Ireland and shift the work to Poland, costing Ireland 1,900 jobs. People's Movement Chairwoman Patricia McKenna said the decision was a "slap in the face" to Irish workers, and described as "ironic" the Commission's behaviour, given it was "urging Irish voters to vote Yes to the Lisbon Treaty under the guise of jobs and the economy".
WSJ Irish Times Irish Times 2 L'Observatoire de L'Europe

Belgian government to propose Louis Michel as UN General Assembly President
The Belgian government will propose MEP Louis Michel - who was previously EU Development Commissioner - as President of the 2010-2011 UN General Assembly.
In an interview with La Libre Michel declared that the General Assembly Presidency will not conflict with his posts in the European Parliament and in the Joint ACP-EU Parliamentary Assembly, and that it will be an unpaid position.
Lalibre

EU Trade Commissioner expects Britain to get a "strong portfolio" in next Commission
EU Trade Commissioner Baroness Ashton declares in an interview with the Telegraph that she was asked by José Manuel Barroso, the President of the EU Commission, to "Be available until the end of the year", after which he will pick his extended top team. It is not certain whether Britain will keep the trade portfolio when the next Commission is formed in October, but Ashton said she expects "the British commissioner to get a strong portfolio." Mr Brown is rumoured to favour replacing Ashton with Baroness (Shriti) Vadera, the Business Minister, with Geoff Hoon also a possibility.

Meanwhile, EurActiv looks at the likely portfolios in the next European Commission and suggests that the likeliest high-profile changes include new Commissioners for climate action and migration.
EurActiv Telegraph

EU border agency may be helping Italian coastguard to intercept migrants
European Voice reports that the EU's border agency Frontex has admitted that it may be helping the Italian coastguard in its controversial policy of intercepting boats of migrants in the Mediterranean and sending them back to Libya. However, Gil Arias-Fernández, Deputy Director of Frontex, said the Agency had no information on what Italy did with the migrants once they were picked up, and it had no say in the matter.

Meanwhile, Le Monde reports that Eric Besson, the French Immigration Minister, has said that Frontex should be given new powers to help it better fight illegal immigration into the EU.
European Voice Le Monde

German elections: Opinion polls show SPD catching up - Merkel's new centre-right coalition threatened
Several newspapers report that recent opinion polls have shown that Chancellor Angela Merkel's CDU-CSU alliance is losing ground to Germany's second largest party, the Social Democrats (SPD), ahead of the German elections on Sunday. This could threaten Ms Merkel's hope of forming a new centre-right coalition with the FDP, and could possibly even complicate her ambition to serve a second term as Chancellor.
Independent BBC: Hewitt blog WSJ

Lord Mandelson, the UK Business Secretary, has written to the EU's Competition Commissioner Neelie Kroes over Magna's plans for General Motors' European arm after it emerged that Magna is planning to dismiss up to a quarter of its UK workers, compared with only 16 percent of its workforce in Germany. The plan has fuelled suspicion that Berlin has put itself in a favourable position through the use of a bridging loan, as Mandelson claims the current proposal is not "commercially the most viable plan".
FT Times FTD Sueddeutsche Deutsche Welle Welt Spiegel Times2 Times3 Telegraph Cinco Días FT

Agence Europe reports that a study by environmental group Friends of the Earth has found that the EU's increased demand for biofuels is provoking ecological, economic, and social damage in Indonesia.
No link

Ralph Atkins in the FT looks at the resilience of the eurozone during the economic crisis and suggests that, "The bigger question mark hanging over the eurozone, however, is still whether it can really function like a proper economy...fiscal policy and much of the responsibility for regulating banks and financial markets still lies with governments and institutions in 16 separate countries."
FT

There is continued coverage of the news that Poland and Estonia have won court challenges to EU limits set on their CO2 emissions for energy and manufacturing companies, which threatens to undermine the EU's cap-and-trade emissions scheme.
EurActiv IHT EUobserver European Voice Times El Mundo Spiegel Sueddeutsche Zeit Open Europe research

European Voice reports that national governments have rejected a flagship proposal by the European Commission to combat unemployment in Europe, which was supposed to release an extra €6.6 billion of EU money into the economy. Member states say the proposal does not address helping them to prevent funds from being reclaimed by the Commission as unspent money.
European Voice

The Times reports that an emergency meeting over the price of milk will be held by Europe's agriculture ministers in Brussels on 5 October. The EU is committed to ending milk quotas and price support by 2015, but the recession has seen the price of wholesale milk products fall between 23 and 48 percent.
Times Times2 Times3

The Telegraph's State of Europe series looks at potential Turkish membership of the EU and David Blair argues that the debate over membership is about two opposing conceptions of European identity: "ethnicity, history, geography and, put bluntly, a Christian heritage" and "values: democracy, human rights, the rule of law, religious and political tolerance."
Telegraph

An article in the Telegraph suggests that EU membership remains an important aim for countries in the Balkans.
No link

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