Open Europe press summary: 19 October 2009

Europe

UK MEPs pushed for exemption to allow them to continue employing family members;
BNP leader puts bodyguard on EU payroll
Saturday's Telegraph reported that British MEPs are paying relatives hundreds of thousands of pounds to work for them in the European Parliament by exploiting an exemption they forced into new rules banning the practice.

Regulations introduced earlier this year prevented newly elected MEPs from using their 184,000 staffing allowances to employ family members. However, amid threats of legal action, a so-called "British clause" was inserted, allowing serving MEPs already paying relatives to continue doing so until 2014. "It is known as the 'British clause' because it is only really the British MEPs who can get away with employing their relatives in public office," said an official.

The article notes that at least 17 British MEPs - including the Labour, Conservative and UKIP leaders in Europe - are still paying relatives tens of thousands of pounds a year from public funds.

Open Europe's Mats Persson was quoted saying, "It doesn't look good...It's much better if MEPs do not employ family members, in terms of public perception and avoiding suspicion, whether justified or not. The British pride themselves on taking the lead in Europe but on this they are trailing far behind."

Meanwhile, a separate article in the paper noted that Conservative MEP Sir Robert Atkins gave himself two months extra holiday last year. Sir Robert worked less than any of his party colleagues, turning up on 89.5 days out of 132 when the Parliament was sitting.

Sir Robert, who served as a minister in John Major's government, also uses public funds to employ his wife, Lady Atkins, as his full-time personal assistant in his North West England constituency, who receives between 30,000 and 40,000 a year from her husband's allowances.

The Sunday Times reported that Nick Griffin, the BNP leader and North-West MEP, has put his personal bodyguard on the European Union payroll, and a dozen senior figures from the party make up a BNP entourage of publicly funded assistants. Martin Reynolds, who is head of security and Griffin's bodyguard, said he "honestly didn't know" why he was justified in being paid by the taxpayer. EU rules state that assistants must justify their taxpayer-funded salaries by doing work which is "directly linked to the exercise of a member's parliamentary mandate".
Telegraph Sunday Times

President Klaus: "The Lisbon Treaty has gone too far to be stopped";
Slovakia seeking similar opt-out to Czech Republic from Charter of Fundamental Rights
It has been widely reported that Czech President Vaclav Klaus has given an interview to Czech paper Lidove Noviny in which he conceded that he could not stop the Lisbon Treaty coming into force. He said, "I do not consider the Lisbon Treaty to be a good thing for Europe, for the freedom of Europe, or for the Czech Republic. However, the train has already travelled so fast and so far that I guess it will not be possible to stop it or turn it around, however much we would wish to."

He added, "I will not and cannot wait for the British election. They would have to hold it in the coming days or weeks." Austrian daily Standard further quotes him saying, "Great Britain will obviously have to find its own way...Just as I do myself."

The Sunday Telegraph reported that this could mean the Treaty becomes law within weeks, as the Czech Constitutional Court will meet on 27 October regarding a legal challenge made to the Treaty by 17 Czech Senators, although there is no guarantee that it will issue a ruling.

Meanwhile, the Telegraph reports that the Slovakian Prime Minister Robert Fico has said that Slovakia might seek a similar opt-out from the Charter of Fundamental Rights that the Czech Republic is seeking, to protect itself from similar potential post-war property claims.

Mr Fico is quoted saying, "We will not leave Slovakia in uncertainty if we feel that one of the seceding countries of former Czechoslovakia has negotiated an exception. For us the Benes Decrees are such an important part of the rule of law, that we cannot allow for Slovakia to be left in any kind of legal uncertainty." The Irish Independent reports that the Czech and Slovak governments may ask EU leaders to approve a "political declaration" regarding the Charter at the EU summit on 29-30 October. Polish paper Gazeta Wyborcza quotes Klaus saying, "I never said that I would not be happy with the guarantees that Ireland was given".

A leader in the Telegraph notes that some commentators think David Cameron may be relieved at the Czech President's position, as he would have "been alarmed by the danger of his party tearing itself apart - not only over whether to vote no or yes to Lisbon but also over whether to interpret the referendum as a vote on British membership of the EU, which is how millions of voters would have understood it."
Standard Sunday Telegraph Observer FT: Barber EU Referendum blog FT: Brussels blog BBC Bloomberg Sunday Times Telegraph EUobserver Telegraph: Leader Irish Independent Times Irish Times Coulisses De Bruxelles Le Monde WSJ WSJ 2 Times 2 Conservative Home: Centre Right blog Spectator: Coffee house blog El Mundo El Pas OE blog Gazeta Wyborcza Welt FAZ Der Standard OE24 Focus NZ online OE24 Kleine Zeitung Die Presse

Cautious optimism over amendments to the AIFM Directive
In the FT's FM supplement, Pauline Skypala looks at the EU's AIFM Directive, noting that there is "cautious optimism" that the Directive will be amended and improved. She cites Open Europe's recent study which estimated the one-off cost of implementing the AIFM Directive at between 1.3bn and 1.9bn - an estimate which is substantially lower than Charles River's estimate at 3.2 bn. However, Skypala notes that Open Europe's estimated recurring cost is higher than the equivalent estimate in Charles River's report.

Open Europe was also quoted in the Sunday Telegraph, in an article looking at efforts in the European Parliament to amend the Directive. The article noted that MEPs are hoping to win amendments to planned caps on the amount of leverage a firm can use, restrictions on how and where investors can invest and rules for requiring managers to hold a certain amount of cash at all times.

Euractiv quotes German liberal MEP Wolf Klinz, Chairman of the European Parliament's special committee on the financial crisis, saying that he is "absolutely" opposed to putting a cap on the amount of leverage used by hedge funds. He also said, "I want the existing private placement regimes to go on existing, so that fund managers sitting in New York managing a fund that is domiciled in the Cayman Islands can also be offered in Europe. I do not want Europe to be turned into a fortress and a prison at the same time." Open Europe press release Open Europe research Charles River report Euractiv Sunday Telegraph Independent on Sunday: Pagano FT: Skypala Hedge Funds Review Magazine Vilggazdasg

Blair as EU President "not necessarily a good idea," says former adviser
The Independent on Sunday reported that Tony Blair's former Chief Adviser on the EU, Sir Stephen Wall, has expressed misgivings about him becoming President of the EU saying it was "not necessarily a very good idea". The article noted that the paper asked readers' opinions last week, hundreds responded - and those saying No to Mr Blair outnumbered Yes by 20 to 1.

On whether he thought the first president should be from a smaller member state, Sir Stephen said: "I think that it would help a lot as a signal. As a unifying signal, it should be thought about." He added that the disadvantage of appointing a high-profile personality was that they would be "trampling on what should be done" by the new Foreign Minister post.
Independent on Sunday Independent on Sunday: Leader Independent on Sunday 2 Economist: Charlemagne's notebook El Mundo EurActiv Times

EU Agriculture Commissioner announces 280 million aid package for milk producers;
French Agriculture Minister: EU should "abandon" market liberalisation
Mariann Fischer Boel, the EU Agriculture Commissioner, has announced this morning at the EU agriculture ministers Council a 280 million aid package for milk producers. However, The Commissioner has not yet outlined how this aid is going to be used, reports Le Figaro.

Just before the Council meeting Bruno Le Maire, France's Agriculture Minister, was quoted by French newspaper Les Echos declaring "I would like to see ... a strong political signal that Europe is clearly choosing the path of regulating the milk market and is abandoning further liberalisation." The article noted that Le Maire could count on the backing by 21 member states and the European Parliament. The Minister warned he is ready for an "open rift" with the Swedish EU Presidency and European Commission if they turn a deaf ear, reports AFP.
LeFigaro LeMonde AFP

Peter Oborne: Supporters of UK membership of the euro owe the public an apology
In Saturday's Mail, Peter Oborne argued that those who backed Britain's membership of the euro in 1999 "owe the public a huge, collective apology." He noted that "Back then few commentators dared argue that the position adopted by this alliance of Tony Blair, Ken Clarke, Michael Heseltine and Charles Kennedy could be wrong" but that "The economic statistics reveal the stark truth. Since 2001, the British economy - even taking into account the past 12 months of financial crisis - has grown much faster than the eurozone countries and remained comparatively more stable than most."

He concluded, "By maintaining our own monetary sovereignty, we have been able to head off the danger of economic depression using a three-pronged strategy of reducing interest rates, devaluing sterling and introducing the so-called quantitative easing programme of printing extra money." In the Telegraph, Ambrose Evans-Pritchard argues that a slide in sterling may be "humiliating" but it is also a "godsend" for the UK economy.
Mail: Oborne Telegraph: Evans-Pritchard

EU to develop space policy;
EU Commissioner: "We are laying the foundation stone of a very imminent future"
Euractiv reports that the EU is stepping up its efforts in space policy and is expected to release new guidelines within the next couple of weeks designed to improve satellite monitoring of the Earth's climate. It is reported that the main threat to the programme remains satellite navigation, as Europe continues to have problems with its Galileo satellite. EU Transport Commissioner Antonio Tajani said "what we are doing opens the door for European businesses and citizens to benefit from the myriad of better applications and new opportunities made possible by more precise navigation signals. We are laying the foundation stone of a very imminent future."
EurActiv

Commission to outline role of EU's diplomatic service today
Catherine Day, Secretary General of the EU Commission, will today flesh out the details of the structure of the EU diplomatic service envisaged by the Lisbon Treaty, reports EUobserver. The article notes that the new body, known as the External Action Service (EAS), will involve some of the 6,000 European Commission staff who currently work on external relations in Brussels and its 123 delegations abroad, plus the staff of the Council Secretariat, under the charge of the member states, as well as experts seconded directly from national services.

However, the Lisbon Treaty is vague on the functioning and structure of the service, saying only that the EAS will be agreed by member states after a proposal by the foreign ministers which will have to be approved by the Commission and once the European Parliament has been consulted.
EUobserver

With regards to the 2010 EU budget, a European Parliament Press Release mentions that MEPs will this week "seek to broadly restore figures proposed in the Commission's preliminary draft budget rather than accepting cuts made by Council."
EP Press Release

Spanish EU Presidency to focus on immigration and security
El Pas reports on Spain's plans for their EU Presidency beginning January next year, which focus on immigration, asylum, terrorism and domestic security issues. The future Spanish Presidency hopes to coordinate EU policy on immigration and asylum, focusing particularly on illegal immigration and the immigration of non EU workers to the EU. The article notes that the Spanish Presidency has also outlined its intention to bolster the fight against terrorism by increasing the level of cooperation between member states in tackling such issues.
El Pas El Pas 2

EU expresses concern over Opel deal, but Germany vows to press on
The Mail on Sunday reported that EU Competition Commissioner Neelie Kroes has said there were "signficiant indications" that Germany had broken rules on state aid by offering 4 billion in subsidies only if Magna bought the Vauxhall and Opel brands from GM Europe. GM has said it might reconsider the deal, and possibly reopen the bidding process. EurActiv reports that German Minister for the Economy Karl-Theodor zu Guttenberg has expressed confidence that Germany could address EU concerns about the sale of Opel to Magna.
EurActiv AP Cinco Das Le Monde Sole24Ore

E.ON Chief Executive: UK's renewable energy targets are unrealistic
The Times reports that Wulf Bernotat, Chief Executive of E.ON, has said that Government plans to generate 30 percent of UK electricity from renewable sources by 2020 are doomed to failure. The plans are designed to meet EU environment targets. Mr Bernotat said that there was a bigger mismatch between government targets and what was achievable in Britain than in E.ON's other key European markets. Meanwhile, also writing in the Times, Chief Executive of BP Tony Hayward argues that increasing the use of gas in the UK's energy mix is the best way to cope with the loss of energy capacity due to EU regulations that will see the UK lose a third of its coal-fired stations by 2016.
Times Times 2 Times: Hayward

In an interview with German radio Deutschlandfunk, EU Commissioner Gnter Verheugen said he believes that the accession of Turkey to the EU is vital. "We need Turkey more than Turkey needs us", he said.
Sueddeutsche Nachrichten

The FT reports that Iceland has agreed a revised deal with the UK and the Netherlands to repay nearly 4bn euros lost in a failed Icelandic bank, although it will still have to be passed by the Icelandic parliament.
FT EUobserver BBC

General Secretary of the German Confederation of Skilled Crafts (ZDH), Hanns-Eberhard Schleyer, has demanded the creation of a German Europe Minister. He told Die Welt that it is crucial that "Germany speaks with one voice and represents its interest in Brussels on time."
Welt

UK

The Sunday Times reported that a new YouGov poll for the paper shows that the Conservatives' lead over Labour has narrowed to 11 points from 14 a month ago. The Conservative lead is the narrowest in the polls since April. The Conservatives are on 41 percent, Labour are on 30 percent and the Liberal Democrats are on 17 percent.
Sunday Times

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