Open Europe press summary: 20 October 2009

On Tuesday 27 October, between 10.30am and 12pm, Open Europe is holding a discussion in Westminster entitled "Eurozone: out of the woods, or off the cliff?" Join us for a debate on what conclusions can be drawn for the Euro from the financial and economic crisis. Speaking at the event will be: Otmar Issing, former member of the Executive Board, European Central Bank; David Marsh, Chairman of the London and Oxford Group; Derek Scott, former Economics Advisor to Tony Blair; and as Chair, William Keegan, Senior Economics Commentator, The Observer.

Places are limited. If you would like to attend, please RSVP to Sarah Gaskell at sarah@openeurope.org.uk or Tel: 0207 197 2333

Europe

French Agriculture Minister: France and German have taken back the lead in defining the future of EU agriculture policy
Agence Europe reports that following yesterday's European Commission decision, which came following pressure from 21 member states, to grant EU dairy farmers an extra 280m euros in aid, EU Agriculture Commissioner Mariann Fischer Boel warned the member states, "You have killed the goose that lays the golden eggs", adding, "that's it, there is no point in coming back for a single euro more."

EUobserver notes that Fischer Boel warned that the payout meant no money would be left for other agricultural sectors if they were suddenly confronted with an emergency. Asked what she would tell other farmers who would want similar aid, Fischer Boel replied she would "simply say that it's been a priority of 21 member states to get funds for the dairy sector." The Commissioner also cast doubt on the efficiency of the scheme, which still needs the approval of the EU's finance ministers next month, by pointing out that in concrete terms, one farmer would get "less than 1,000 euros."

Agence Europe quotes French Agriculture Minister Bruno Le Maire saying that the coalition of 21 member states that pushed for more farm subsidies, which included Germany but was opposed by the UK and the Netherlands, had "taken back the lead in defining the future of agriculture; we have done this in the dairy sector, we will try to do it in other sectors, and from that point of view, this is good news for all farmers." All direct subsidies for the dairy sector were supposed to be phased out as part of the reforms that the UK Government was promised in 2005 in return for giving up part of its rebate from the EU budget.

PA quotes UK Farming Minister Jim Fitzpatrick saying, "We want to see a viable and competitive dairy sector in Europe, but will not support anything that takes us backwards to a regime of heavy market support for inefficient dairy producers at the expense of taxpayers and consumers."
Irish Times EUobserver BBC EurActiv

Slovakia threatens to veto Czech demands for Lisbon Treaty 'opt-out' unless it has one too
EUobserver reports that European Commission President Jose Manuel Barroso has said he is confident that the Lisbon Treaty will be ratified shortly, despite comments made by Slovakia's Prime Minister Robert Fico over the weekend regarding a possible 'opt-out' from the Charter of Fundamental Rights.

The FT reports that Mr Fico has said on his website, "We have only two options. We will either veto the Czech proposal [for an opt-out] in the EU Council, or we will insist [on] that it applies to Slovakia as well". EU diplomats said Mr Fico's message showed how the property claims issue, relating to the post-war Benes decrees, risked spreading contagion over the Lisbon Treaty from the Czech Republic to other parts of central Europe. On his Coulisses de Bruxelles blog Jean Quatremer comments "The concerns of the Czechs and the Slovaks demonstrate that the past...has not been digested yet."

FAZ notes that the Swedish EU Presidency wants to await the outcome of negotiations between the Czech government and Czech President Vaclav Klaus, as two working groups in Prague are currently preparing a proposal which would serve as the basis for a declaration on a Czech 'opt-out' from the Charter. However, AFP reports that the Swedish EU Presidency is opposing the demands of the Slovakian government for an 'opt-out'. The Swedish Foreign Minister Carl Bildt is quoted saying: "It seems to me that the Slovak republic has completed the ratification process of the Lisbon Treaty".

Meanwhile, Presseurop reports that Czech Daily Lidov Noviny published an opinion poll last week showing 65% of Czech citizens support President Klaus' decision not to sign the Lisbon Treaty.

On his Telegraph blog, Benedict Brogan notes that when he interviewed Shadow Foreign Secretary William Hague recently, "he promised not to keep us waiting once Vaclav Klaus had run up the white flag on the Lisbon Treaty. There would be an immediate statement from David Cameron on what happens now". Brogan calls on Cameron to make the Conservatives' position on the Treaty known.
AFP Telegraph: Brogan blog Mail: Synon blog Presseurop EUobserver FT OE blog LeFigaro CoulissesDeBruxelles Lidove Noviny

Chris Patten comes out against Tony Blair for EU President
El Pais reports that Chris Patten, ex-EU Commissioner for External Relations, confirmed yesterday his belief that former Spanish PM Felipe Gonzlez would be a "very good candidate" for EU President, arguing that Tony Blair on the other hand was not suitable for the position. Patten claimed that Blair's appointment would not be well received in Britain and that it would be "curious" to have a man who divided the EU over the Iraq war as President. He also underlined the importance of avoiding the role of President being converted to a mere "queen mother" of Europe, and argued it is necessary to choose an individual capable of bringing forward the agenda of the EU. Patten also refused to rule himself out of the running for the role of EU Foreign Minister, stating that "if they were to offer it to me, it would be crazy to say no."

Meanwhile, during a meeting with the Belgium Prime Minister Herman Van Rampuy in Vienna on Monday, the Austrian Chancellor Wermer Fayman also expressed his opposition against Blair's candidature for the post of the European Council President, reports Die Presse. Austrian newspaper Salzburger Nachrichten notes that the two heads of state could not agree on a candidate they both support.

Euractiv reports that if Blair does not get the job of President, the British Labour Party may push to have David Miliband installed as EU Foreign Minister, but there are rumours in France that President Sarkozy may push for former centre-left Minister of Foreign Affairs Hubert Vdrine.
Euractiv Die Presse Salzburger Nachrichten El Pais OE blog IHT: Vinocur

Pieter Cleppe: how the Czech Republic loses out under the Lisbon Treaty
Open Europe's Pieter Cleppe has an op-ed in the Czech daily MF Dnes, in which he argues that, "The Lisbon Treaty means a critical transfer of power to the EU. It will make it easier to pass laws in Brussels rather than in national parliaments like the Parliament of the Czech Republic". Pieter writes that "according to a study by academics at the London School of Economics, the power of the Czech Republic to block laws it dislikes will be cut by a massive 51% under the Lisbon Treaty, compared with less than 2% for Germany".

He concludes: "It has been said by EU leaders that this will be the last big EU Treaty for a long time. Indeed it is, but not because the appetite to constantly transfer power to the EU will disappear. It's because the Lisbon Treaty introduces a system to make the Treaty self-amending , meaning EU leaders can change the treaties incrementally, without the need to go back to their electorates or national Parliaments."
MF Dnes: Cleppe

ECOFIN to decide on European Systemic Risk Board
Euractiv reports that EU finance ministers are deciding today at the ECOFIN meeting in Luxembourg on the set-up of the European Systemic Risk Board (ESRB), which will assess and prevent potential risks to financial stability in the EU. According to a draft paper on the establishment of the ESRB, seen by Handelsblatt, the body could demand actions in cases where it identifies specific risks - arising either in the EU as a whole or from single or several member states. Even though these recommendations will not be legally binding, the ESRB will be able to apply political pressure in order to enforce them, reports Handelsblatt.

The chairman of the ESRB, serving a five year term, will be either the President of the European Central Bank or one of the heads of the national Central Banks. The latter option has been advocated by the UK in order to have sufficient leverage in the new body. The General Board of the ESRB will also issue warnings by simple majority voting, but recommendations on action will require a qualified majority, contrary to the simple majority which had been originally proposed.
Handelsblatt Euractiv Open Europe briefing Open Europe press release

Member states and MEPs continue to do battle over shape of EU's diplomatic service
EUobserver notes that Poland has called for the EU's External Action Service, which will be created under the Lisbon Treaty, to handle EU foreign, security and defence policy and - at a later stage - some types of consular work "such as consular assistance or common visa application centres." It should not deal with trade, enlargement or development. Poland argues that it should be set up as an executive agency rather than an EU institution with a separate budget and that "both in the planning and implementation phase, it is the member states which should play the key role."

Meanwhile, the EP Constitutional Affairs Committee yesterday called for the planned EU diplomatic service to be part of the Commission structure and be funded from the EU budget. It argued that this set-up would make the service subject to democratic scrutiny by the European Parliament. The UK is among those countries that does not want the service to become part of the Commission.
EUobserver EP press release

EU anti-corruption rules are "chilling" efforts to help tackle bribery cases
The FT reports that bribery plea deals, such as the one offered to the arms-maker BAE Systems, risk being undermined by EU anti-corruption rules, according to a document circulated among ministers in July. A letter from Justice Secretary Jack Straw says businesses have told him the so-called Article 45 EU rule banning companies convicted of graft from lucrative EU public work contracts is "chilling" efforts to persuade British multinationals to admit wrongdoing in return for more lenient treatment, and there are concerns that "Article 45 may not be applied consistently across member states."
FT

Developed countries prepared to drop 2050 emissions target in exchange for climate deal
The FT reports that developed countries are preparing to relent on their demand that developing countries agree to long-term cuts in greenhouse gas emissions in a concession that could form the basis of a global deal on climate change at the UN summit in Copenhagen in December. Governments on both sides of the Atlantic are now softening their call for a global target of halving emissions by 2050.

Yvo de Boer, the UN's top climate change official, added that the issue of developed countries financing carbon cuts in developing countries was "a potential deal-breaker". At a meeting of EU finance ministers in Luxembourg today Alistair Darling will pledge 1bn euros from the UK and call on European Union countries to commit 10bn euros in funding to help developing countries reduce their emissions and adapt to the effects of climate change, the paper also reports.

Meanwhile, the Telegraph reports that Todd Stern, the US Special Envoy for Climate Change, said President Obama may attend the summit in Copenhagen: "If the kind of progress is made that warrants the presence of leaders then we will certainly consider that".
Irish Times Guardian Independent FT FT 2 Telegraph Open Europe research: EU climate action and renewable energy package

Commission to announce clamp down on derivatives market this week
The WSJ reports that the Commission this week is expected to propose new rules for regulation of the derivatives market. Euractiv notes that the Commission is proposing the establishment of European central clearing houses. Under such a system, derivatives are processed via an intermediary instead of being exchanged bilaterally, which the Commission says will increase price transparency and reduce risk.
EurActiv WSJ Bloomberg

Nigel Farage says being forced to repay donations "could put UKIP out of business"
UKIP leader Nigel Farage has warned that there "is a very real danger" that the party could be put out of business and collapse if forced to repay 363,397 pounds in donations given between 2004 and 2006 which have now been ruled to be illegal. Farage is reported as saying "There is a very real danger that this could put UKIP out of business", according to the BBC.
BBC EU Referendum blog Mail Iain Dale's diary

In the Mail, Quentin Letts notes that when asked by a Labour backbencher to name three regulations that he would scrap, Shadow Business Secretary Ken Clarke was unable to do so, conceding "he has defeated me".
No link

MEPs look to halt legislation rolling over from previous Commission
European Voice reports that MEPs seem to be seeking a change in the legislative agenda of Parliament. The current system means that all outstanding legislative proposals that have not been completed can be carried over into the next Parliamentary session, however it would appear that the European Parliament has begun moves to change this, asking the Commission to withdraw and revise ten proposals left over from the previous Parliamentary term.
European Voice

Fears are growing that General Motors is planning job cuts throughout its European operations if the EU Commission blocks its sale of GM Europe to a consortium led by Magna International, the Independent reports.
Independent Telegraph WSJ BBC

EUobserver reports that most EU funds to Bulgaria are on hold due to "weak financial supervision" and "scant follow-up on irregularities", according to a special report from the EU Commission. Only 288 million euros out of 1.03 billion euros of funds granted under the European Regional Development Fund in the last two years were given to Bulgaria in advance payments.
EUobserver

EU member states including France, Germany and the UK have criticised the European Commission for their proposal to give member states more time to spend their 2007 allocations of regional funding, after it provoked fears that it would generate new demands to increase the 2007-13 regional aid budget.
European Voice

The FT Brussels blog notes that the Commission's "Annual Report on the Euro Area 2009? has warned that the gap in competitiveness between Germany and other strong performers - such as Austria, Finland and the Netherlands - and those lagging behind poses a bigger risk to the eurozone's stability than it did before the financial crisis.
FT: Brussels blog

French website NetEco reports that ENISA - the European Network and Information Security Agency - has appointed a new Executive Director, Dr Udo Helmbrecht. The EU agency, created in 2004, has a sunset clause to expire in 2012, but Dr Helmbrecht plans to make the agency into a permanent institution.
NetEco ENISA

EUobserver reports that Greece has delivered revised figures for its projected deficit for 2009 of in excess of 10% of GDP, while earlier in the year they had predicted it to be 3.7%. Eurozone Chairman Jean-Claude Juncker, said, "It happens occasionally but if it happens again we risk putting all Eurostat data at risk of credibility".
EUobserver

The EU has little alternative but to withdraw trade benefits from Sri Lanka after publishing a report alleging grave human rights abuses during the war against the Tamil Tigers, according to EU Trade Commissioner Baroness Ashton.
Times

The IHT suggests that the eurozone is heading for an uneven economic recovery and that "the 16 countries that share the euro are stumbling toward a disorderly exit from the financial crisis that could have high costs for the European economy".
IHT EU Observer Eurointelligence

Writing in the FT, Jean Pisani-Ferry and Adam Posen have set out their reasons "why the euro is not the next global currency", arguing for more financial integration and noting that "limitations on the euro area's productivity, openness and governance are also the factors that limit the euro's global role.
FT

PA reports that appeal judges are due to rule on a challenge by conservation watchdog Natural England to a legal victory won by a man, who installed his own "soft" sea defences to prevent his home falling into the sea. The judge ruled the local special protection area (SPA) for birds should have an assessment carried out to comply with the EU Habitats Directive.
No link
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