Open Europe press summary: 23 October 2009

Europe

David Miliband tipped for EU Foreign Minister job;
Opposition to Tony Blair EU Presidency grows
The Guardian reports that speculation is growing that the Foreign Secretary David Miliband may be in line for the EU's Foreign Minister job, to be created if the Lisbon Treaty comes into force. Mr Miliband is to deliver what is being billed a keynote speech on his vision of European foreign policy in London on Monday, before joining EU foreign ministers in Luxembourg.

A Scandinavian cabinet minister told friends this week that Miliband "is in the frame" to become the Foreign Minister and one European diplomat is quoted saying, "People are going to talk positively about Miliband". The Times quotes one Belgian diplomat saying, "We have a very favourable impression of Mr Miliband because he has good European credentials".

The Guardian suggests that a Miliband move would hinge on several factors, including Tony Blair failing in his bid to become the EU's first President, and a Miliband candidacy would signal General Election defeatism as well as him abandoning hopes of becoming Labour leader.

Meanwhile, the Economist's Charlemagne blog notes that, at a meeting of EU finance ministers last week, Luxembourg PM Jean-Claude Juncker told journalists: "I will do anything to prevent a certain person becoming president of the European Council", and goes on to write, "The delighted Brussels press pack knew exactly who was meant by this: Tony Blair." The Irish Times reports that an online petition and website have been launched by those campaigning for former Irish President Mary Robinson to take the job of EU President.

On his Coulisses de Bruxelles blog, Jean Quatremer comments that small member states are afraid that a Tony Blair EU Presidency could create a true "board of directors" of big member states, and that a "pale" Barroso, who has already demonstrated little independence from member states would be easily overshadowed by Blair's strong personality, transforming the Commission into a "secretariat of the member states".

Meanwhile, EurActiv reports that Swedish European Affairs Minister Cecilia Malmström said the Swedish EU Presidency will present a report on the preparations to implement the Lisbon Treaty at the EU summit on 29-30 October, including guidance on how the diplomat service "around the High Representative for Foreign Affairs will function".
Guardian Times WSJ Economist: Charlemagne's notebook EurActiv Irish Times OE blog LeFigaro CoulissesDeBruxelles Telegraph: Gardiner

MEPs vote to increase EU budget by 10 percent;
Spanish official admits to limiting economic growth to qualify for EU funds
The Parliament reports that MEPs yesterday voted in favour of next year's EU budget being increased by 10 percent to 127.5 bn euros, from 116bn euros this year. The Commission had recommended a figure of 122.3 bn euros while member states said it should be fixed at 120.5 bn euros. UKIP MEP and the EU's former Chief Accountant Marta Andreasen is quoted saying, "Year after year the Court of Auditors has been unable to give us satisfaction that the EU budget has been legally and regularly spent...But still parliament wants to put more money into the EU coffers."

Meanwhile, EUobserver reports that a draft Commission proposal for negotiations on the EU's multi-annual financial framework (from 2014-2020) has proposed shifting the EU's main budgetary allocations from regional aid and the common agricultural policy, to jobs, climate change and foreign policy. Without floating any figures or percentages, the draft makes the case for a reduction of the agricultural budget and for scrapping regional aid for wealthy regions, which together currently account for 78 percent of total EU expenditure.

The draft also suggests linking regional aid to the length of EU membership, a move that would disqualify current top beneficiaries such as Greece or Spain from the bulk of regional funding. The 'convergence' threshold, which regions must be below in order to qualify for funding, is reportedly so important to some regions in the older member states, that they purposely keep their economies below or just around 75 percent of the GDP average in order to qualify for the EU funds, one Spanish official admitted in a conversation with EUobserver.

Meanwhile, European Voice reports that MEPs voted yesterday to provide 300 million euros for a fund to help dairy farmers. The decision to press for 300m euros for dairy farmers puts the EP at odds with EU Agriculture Commissioner Mariann Fischer Boel, who on Monday proposed creating a 280m euro fund. MEPs also called on EU governments to provide 1.5 billion euros in fresh money for energy projects included in the EU's economic recovery plan, rather than taking funds from other EU programmes as EU governments agreed in July.
European Voice EUobserver Parliament

ECB warns that EU's AIFM Directive could see business leave Europe
In a legal opinion on its website, the ECB has warned that the EU's AIFM Directive, introducing stricter rules for hedge fund and private equity firms, could drive the industry out of Europe, unless other countries adopted similar regulations. "An internationally coordinated response is necessary given the highly international nature of the industry and the consequent risks of regulatory arbitrage and evasion," the ECB said. The ECB also warned that some of the proposed legislation's provisions, for instance on short selling, could unfairly penalise hedge and private equity funds, and criticised the all-encompassing definition of leverage contained in the draft Directive.

Meanwhile, WalesOnline reports that Finance Wales - a public body which invests in Welsh businesses - could be forced to "waste millions of pounds on unnecessary bureaucracy" if the AIFM Directive comes in to force. According to Welsh Conservative MEP Kay Swinburne, Finance Wales will fall under the scope of the Directive. "There would be the need to employ a whole team of compliance executives, as well as the need to contribute to a protection fund which could amount to 5% of its assets. With investment funds totalling around £270m, that would be an enormous burden, and would cut down on the amount available to invest in new and expanding businesses," Swinburne is quoted as saying.
Open Europe research Open Europe press release Reuters FT Telegraph IHT AFP EUobserver WalesOnline City AM FD

Decision on Czech 'opt-out' on Lisbon Treaty unlikely at next week's EU summit
Polish newspaper Gazeta Wyborcza reports that the text of the Czech 'opt-out' from the Charter of Fundamental Rights will be discussed at next week's summit of EU leaders in Brussels, but one Polish diplomat has said that there is no chance for a final decision. Most EU countries want to wait for the Czech Constitutional Court decision on the Lisbon Treaty, which can be expected mid-November, according to the article.

Meanwhile, Swedish news site Europaportalen reports that Czech President Vaclav Klaus is positive towards the compromise on the Lisbon Treaty proposed by the Swedish Presidency. "The proposal is in line with what the President (Klaus) has in mind, and what is possible to work with", a spokesman for Klaus is quoted saying.
Europaportalen Gazeta Wyborcza

Poland could refuse Commission mandate to negotiate Copenhagen climate talks
Polskie Radio Online reports that Polish diplomats in Brussels have said that Warsaw will not agree to accept a mandate for the EU for talks during the UN summit in Copenhagen on climate change before it is established who will pay and how much will be paid in climate financing for the least developed countries.

A Polish diplomat is quoted saying, "If the European Union does not agree on how to divide cost among themselves before the conference, we will not agree to accept the mandate of the European Community for Copenhagen talks". He added that a similar position was being taken by other newer member states. If there is no mandate for the Commission, member states would have to individually make their own bids in negotiations over cuts in emissions.
Polskie Radio Online

Sueddeutsche: France objects to Lisbon provision to combine roles of EU Foreign Minister and Commission Vice-President
An article in Sueddeutsche looks at the "battle over EU diplomats", reporting that the new EU Foreign Minister who will be in charge of the EU's External Action Service, will have a "powerful apparatus of not less than 1,200 diplomats in Brussels and in EU representations worldwide." Additionally, all elements of European Security and Defence Policy will be his responsibility. The article notes that France is not happy with the fact that the Foreign Minister will also be Commission Vice-President, as defined in the Lisbon Treaty, fearing indirect Commission control over ESDP.

The article also states that "the Council only has to give up [control of] ESDP, but the Commission really is bleeding. It has to give up its powerful control on foreign relations and its representations in third countries". The Commission would reportedly only keep power over enlargement negotiations, trade talks and development aid.

Concerning the dispute between the European Parliament and member states over who will be responsible for the External Action Service, in Brussels it is doubtful that Commission President Barroso will resist member states' demands for the EAS to remain outside of the Commission. The article reports that if Barroso delays the implementation plans by resisting, they would risk not being implemented until the end of April 2010, potentially allowing a new UK Conservative government to "push on the breaks".
Open Europe: Guide to the Treaty
The Economist's Charlemagne column argues that the EU's single market "needs work, as the shabby tale of Opel shows. But it is a great project that has so far survived the economic crisis, as the Opel case also shows...Europeans should be proud of what they are trying to build."
Economist: Charlemagne

European Parliament waters down protection for internet users in compromise on Telecoms Package
The European Parliament has tabled a new text on the EU's Telecoms Package, meaning that internet users suspected of infringing copyright laws could see their connections suspended or face other measures without the need for a judicial court ruling, according to EurActiv. In May, MEPs voted in favour of an amendment to the Package, establishing the need to obtain a "prior ruling by the judicial authorities" before taking any such measures against users. This now brings the EP's position much closer to that of member states and paves the way for an agreement on the Package. The conciliation procedure will begin on 4 November and end by 30 December, and if no obstacles emerge the legislation could be adopted in the first few months of 2010.

Meanwhile, EUobserver reports that France's Constitutional Council has finally given the green light to the government's plans to cut off internet access to repeat illegal download offenders, under the so-called Hadopi law.
EurActiv EUobserver

Commission blames member states for slow pace in cutting EU red tape
The European Commission yesterday put the blame on member states and MEPs for the slow pace in reducing the administrative costs faced by companies trying to follow EU regulations, EUobserver reports. In 2007, the European Commission announced it would reduce running costs for businesses by 25 percent by 2012. Industry Commissioner Günter Verheugen is quoted saying, "The Commission has done everything in its power to achieve the 25 percent target by 2012. I invite the European Parliament and Member States to adopt all of our remaining proposals to make them fully effective for the European economy as soon as possible."

The article notes that one set of measures has been adopted as part of the regulation reduction programme that will reduce the burden to businesses by 7.6 billion euros annually, according to the Commission. But a second set of measures - accounting for a 30.7 billion euros yearly cost reduction - has not yet been passed by the EP and ministers, while the commission has yet to propose a third set which would reduce costs by 2.1 billion euros a year.
Open Europe research EurActiv EUobserver

260 million euros destined for transport development of "old" member states
The European Commission has signed 18 new contracts, financing projects for transport infrastructure as part of the EU's response to the economic crisis, with almost 260 million euros destined for the 'old' member states of western Europe. Euractiv reports that Hungary is the only 'new' member state to receive any investment; they have been awarded 7.5 million euros for upgrading Budapest airport's operations. It is expected that a second group of projects of almost €240 million will be announced later this year.
Euractiv

PA reports that the Government has been told they should refuse to back the new EU Consumer Rights Directive, after a Lords Select Committee inquiry discovered the proposals will "do little to improve cross-border trade". The Committee also expressed concern that the Directive may in fact reduce the overall level of protection currently afforded to consumers.
No link

Writing in the FT Philip Stephens notes that, as opposition to Turkey's membership of the EU continues to grow, Turkey is establishing itself as a power broker in the East. He argues, "Mr Sarkozy and his like want nothing more than to hold on to the past. Turkey speaks to the world as it is becoming."
FT: Stephens
The Economist suggests that French hopes for new Franco-German leadership in Europe may yet founder on disagreements about policies and priorities, including fiscal policy, energy policy and Turkey's EU membership.
Economist

In an interview with Le Figaro, EU Commission Vice-President Jacques Barrot said that "Europe has to be generous but also rigorous" with regards to the proposed changes to EU asylum policy.
LeFigaro

Dutch daily De Telegraaf reports that the Dutch MEPs of Geert Wilders' Party for Freedom have refused to accept 90% of the 4,200 euro per month they receive for "office costs", saying the amount should be cut.
Telegraaf

The Independent today features a profile of French President Nicolas Sarkozy following the controversy surrounding his son's attempts to take over political leadership of La Defense. The article claims that his "strong performance" in the EU Presidency last year helped recover his waning popularity in France.
Independent

Writing in the Express, Frederick Forsyth argues that Britain should have the right to demand retrospective 'opt-outs' from certain clauses in the Lisbon Treaty and suggests it is not unprecedented, citing the German Constitutional Court ruling, which "drives a coach and four horses right through the text of Lisbon."
Express: Forsyth

The Irish Independent reports that the European Court of Justice declared yesterday that Ireland cannot set minimum prices for tobacco as it distorts competition and limits the ability of manufacturers to set prices, leading to warnings that it could open the way for cigarette sellers to start discounting heavily on price.
Irish Independent

The French press report that the Euro's rise to above $1.50 is causing concern among many businesses that export to the United States, Europe's biggest trading partner, and China will fall.
Le Monde Les echos Euractiv Euractiv Le Figaro Toute L'Europe Le Monde 2

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