Open Europe press summary: 2 November 2009

Europe

Conservative Home: Conservatives will seek a "manifesto mandate" to renegotiate Britain's relationship with the EU
Following "conversations with a dozen good sources", Conservative Home reports that when the Lisbon Treaty is ratified, the Conservative leadership will say that, if elected, there will be no attempt to 'unratify it' via a referendum, and there will instead be a manifesto commitment to a repatriation of "key powers from Brussels."

Editor Tim Montgomerie writes: "One of the options for David Cameron is to hold a referendum that will give a new Conservative government the authority to begin a wide renegotiation of Britain's relationship with Europe. This was the favoured option of MOST Tory members when ConservativeHome polled them just before the Manchester Party Conference. Only 16% wanted to vote on Lisbon if it has been ratified. 55% wanted a new referendum process in order to give the government a mandate for a wider renegotiation. I'm told to expect a 'muscular' response to Lisbon's ratification and a manifesto commitment to fight for repatriation of key powers from Brussels. One member of the shadow cabinet told me that 'we don't need a mandate to renegotiate from a referendum... A manifesto mandate will be just as good'."

On his Telegraph blog Benedict Brogan argues that David Cameron "calculates that the EU will be so relieved to discover that the new British government is willing to live with Lisbon that it will happily grant his demand to repatriation, in itself a significant victory." The Mail on Sunday reported that a Conservative government would fight to regain control over social and employment laws, and would stop any further transfer of British powers to Brussels.

However, writing in the Observer Peter Oborne suggests that the Conservatives will instead pledge to hold a referendum on any future EU Treaty. He writes: "When Klaus succumbs, Cameron will not step into the breach. He will come up with a new guarantee - a pledge that will force the government to hold a referendum on any future European treaty. This is a cop-out and a betrayal...This is exactly the kind of post-democratic politics which defined, debased, and finally destroyed, the Blair premiership."

Meanwhile, Saturday's Guardian reported that Nicolas Sarkozy, Angela Merkel and José Luiz Rodríguez Zapatero are understood to have privately criticised David Cameron after he sent a handwritten letter to the Czech President, Vaclav Klaus, regarding the Treaty.
Guardian Guardian: Leader Guardian Welt Conservative Home Independent on Sunday-Bryant Observer-Oborne Mail on Sunday Telegraph: Brogan blog EU Referendum blog Standard: Waugh blog Telegraph: Moore El Mundo

EU leaders expect Klaus' signature on the Lisbon Treaty this week
EUobserver reports that the Lisbon Treaty may come into force on 1 December, with French President Nicolas Sarkozy saying after last week's EU summit that "The Lisbon Treaty will enter into force doubtless as early as December 1." The WSJ reports that Czech President Vaclav Klaus was satisfied with assurances offered to him on parts of the Treaty, quoting him saying, "I'm not inclined to raise any further conditions for ratification of the Lisbon Treaty."

The Treaty is still subject to a court challenge by 17 Czech Senators but EUobserver notes that the ruling is widely expected to come out in favour of the Treaty. Klaus could therefore sign the Treaty as early this week.
WSJ EUobserver EUobserver 2

Proposed EU Directive to ban money back guarantees for shoppers
The front page of the Sunday Express reported that the European Commission's proposed Consumer Rights Directive will end the right of shoppers to get their money back for unwanted or faulty goods. The legislation, which would also cover goods bought over the phone or the internet, is designed to ensure the same level of consumer protection if shoppers buy goods in any EU member state. But instead of money-back guarantees, the Directive would allow traders to offer only the repair or replacement of faulty goods.

The article noted that traders' liability for replacement or repair would also be cut from six years to two, even though such products as cars, boilers and double glazing should reasonably be expected to last longer. Crucially, the proposed Directive does not allow the UK Government or retailers to offer consumer safeguards beyond the EU legislation.

Open Europe's Mats Persson was quoted saying, "This watering-down of British consumer rights laws represents a significant power grab by Brussels and British consumers will be rightly horrified that Europe wants to denude the UK's national safeguards. Worse still, new EU rules mean the UK Government cannot continue to offer British consumers extra safeguards if it wants to. British shoppers are getting short-changed by Brussels."

Ministers have vowed to fight the Consumer Rights Directive but the UK Government has no power to stop the change if it is backed by a 'qualified majority' of EU states, as there is no UK veto.
Sunday Express Sunday Express: Leader

New poll shows 53% oppose Blair EU Presidency and 48% oppose Miliband as EU Foreign Minister
A new ICM poll for the Sunday Telegraph has found that 53 percent of respondents think Tony Blair is the wrong person to be the EU's first permanent President once the Lisbon Treaty comes into force, with 36 percent backing him. 48 percent of respondents do not want Mr Miliband to become the EU's first Foreign Minister, while 29 percent support him. It comes following comments over the weekend from Lord Mandelson that Mr Blair "would like to do the job" but added that it was not a "matter of life or death for him".

A leader in the Sunday Times argued, "If Mr Blair fails to get the job, it can only be a good thing. Although he would bring to it attractive traits, Europe is not ready for a charismatic president. This role is unelected and indeed unwanted by many Europeans and Mr Blair would make the job more significant than it merits."

El Mundo reports that French President Nicolas Sarkozy said at the end of last week's summit that, "France and Germany will support the same candidate when the time comes. We do not have a specific preference and it is not the right moment to talk about it."

The Observer reported that Tony Blair is expected to bow out of the race by the end of next week if he fails in a last-ditch effort to win public support from the German Chancellor, Angela Merkel. Writing in the Sun, Trevor Kavanagh argues that "If Mr Blair's last-gasp charm offensive fails, it will be because faceless EU power brokers have turned shiftily against him. We will have been saved from Emperor Blair because it suits their interests, not ours."
FT: Letters Sunday Telegraph Sunday Times Sunday Times-leader Independent on Sunday-Watkins Observer Express Express: Flynn Sun Weekend FT Weekend FT 2 Weekend FT: Peel Mail: Oborne Mirror: Parsons Independent Independent: Morris and Mock Independent: Dejevsky Telegraph Spectator: Coffee House blog Mail Telegraph Mail on Sunday El Mundo

Miliband holds secret talks with European Socialists about EU Foreign Minister job;
Downing Street denies it is lobbying for Miliband
The Sunday Times reported that Gordon Brown is secretly backing David Miliband for the post of EU Foreign Minister, to clear the field for one of the Prime Minister's close allies, possibly Ed Balls or Ed Miliband, to win a leadership contest if Labour is defeated at the General Election. A Downing Street staffer was quoted saying: "This is being taken very seriously. Diplomatic channels in the Foreign Office are working behind the scenes on David's behalf."

However, PA reports that Downing Street has dismissed suggestions that Gordon Brown is promoting Miliband for the job. The Times reports that Deputy Labour leader Harriet Harman, discussing speculation that David Miliband might get the job, told the Andrew Marr Show: "I can see why this rumour is around, because he is a politician of international standing, so I suppose it is complimentary, but we can't spare him. He is our Foreign Secretary. I don't think he wants to go."

The Sunday Times also reported that Miliband has secretly held a number of discussions with the Socialist faction in the European Parliament about running for the job, with Socialist leader Martin Schulz saying only that Miliband would make a "superb candidate", refusing to elaborate on the private talks. "I will not say anything that could [put] any of my British colleagues in a difficult position," he said.

Italian newswire ANSA reports that Franco Frattini, Italy's Foreign Minister, has declared that the Italian government supports former centre-left Prime Minister Massimo D'Alema's candidacy for the EU Foreign Minister job.

Saturday's Sun reported that the EU Foreign Minister will likely earn £275,000-a-year, and will come with lavish perks including a luxury grace-and-favour residence in Brussels, a chauffeur-driven limo and huge staff.

The Independent on Sunday reported that Commission President Jose Manuel Barroso is also backing Miliband for the job and suggested that a by-election in Miliband's South Shields constituency could offer the prospect of Lord Mandelson standing for Parliament. Writing in the paper, John Rentoul said: "Having spoken to well-placed sources, I can reveal that David Miliband's preferences for his next job are in this order: 1. Prime minister before the election, 2. European foreign affairs high representative from January, 3. Leader of the opposition after the election."

Writing in the Times, William Rees-Mogg argues that "David Miliband for Brussels, Peter Mandelson for the Labour Party, and David Cameron for Downing Street might well be the best team."
Times Sunday Telegraph-Dancona Sun Times Mail Sunday Times Independent on Sunday-Rentoul Independent on Sunday FT Weekend FT 3 Mail Guardian CoulissesDeBruxelles BBC: Hewitt blog ANSA ANSA2 ANSA3 LeMonde

Households face £541 increase in energy bills under planned EU 'eco tax'
The Express reports that UK households could face a £541-a-year rise in energy bills under EU plans to fund its budget through 'green taxes'. Research from the Taxpayers' Alliance has found that the cost of the EU's Emissions Trading Scheme (ETS), introduced to reduce greenhouse gases, already costs every family in Britain £117. However, according to leaked EU Commission documents seen by the Express, there are plans to turn the ETS into a direct tax to fund the EU's £110 billion-a-year budget. To raise the UK's current £16.4billion contribution to the EU budget through the ETS would mean increasing the burden on British families from £117 to £658 - an increase of £541.
Express

Commission takes UK Government to court over internet privacy
Saturday's Independent reported that ministers face an embarrassing showdown in the European Court of Justice after the European Commission accused Britain of failing to protect its citizens from secret surveillance on the internet. The legal action is being brought over the use of controversial behavioural advertising services which were tested on BT's internet customers without their consent to gather commercial information about their web-shopping habits.

EU Information Commissioner Viviane Reding said that the aim of the Commission was to bring about a change in UK law. "People's privacy and the integrity of their personal data in the digital world is not only an important matter: it is a fundamental right, protected by European law," she said. The Commission said the UK had failed to comply with both the European e-Privacy Directive and the Data Protection Directive.
Independent Open Europe press release Open Europe research AFP

US alternative investment industry steps up fight against EU's AIFM Directive
The FT reports that the US alternative investment industry is taking a 'behind-the-scenes' approach to lobby for changes to the EUs' proposed directive regulating fund managers. If passed without amendment, the proposed Alternative Investment Fund Managers Directive would bar US along with other non-EU managers from pitching their funds in the EU or managing delegated portfolios for EU investors. John Gaine, President of the Managed Funds Association (MFA), the US hedge fund trade group, said, "In its current form, the directive is far more restrictive and invasive than anyone had anticipated."
FT Open Europe press release Open Europe research

EU plans black box recorders to monitor vehicles
The Sunday Times reported that black box recorders could be installed in all new cars under an EU proposal, and could cost up to £500 each. The Telegraph reports that the Commission has spent £2.4 million on Project Veronica, a study on how the boxes would work. The boxes, known as an Event Data Recorders (EDR), could monitor vehicles' speed and the actions of the driver - when and how often the brakes, indicators and horn were applied.
Telegraph Sunday Times

British taxpayers fund up to £20 million in benefits for Polish children
The Sunday Telegraph reported that Treasury figures show that British taxpayers are funding child benefit payments of over £20 million for 37,900 children who live in Poland, while one or both of their parents live and work in the UK. The payouts come despite assurances given by ministers that migrants from new EU member states would not immediately be eligible for most benefits.
Mail Sunday Telegraph Sunday Telegraph-leader

Merkel: It is 'unrealistic' to expect climate change agreement at Copenhagen;
EU fails to agree its share of climate financing for developing world
Saturday's Times reported that German Chancellor Angela Merkel has written off chances of achieving a successor to the Kyoto protocol this year, suggesting that only a broad political framework is now possible from the global climate change negotiations in Copenhagen in December. "It is realistic to say that in Copenhagen we will not be able to conclude a treaty but it is important to lay down a political framework which will be the basis of the treaty," she said at the end of last week's EU summit in Brussels.

Merkel's statement came after EU leaders yet again failed to agree how much Europe would offer the developing world to help meet its climate targets or how the cost of the funding would be divided between EU member states. The EU said only that it would seek to persuade others to share a €22bn to €50bn bill and that Europe would pay its "fair share".

Meanwhile, EUobserver notes that climate change will feature heavily at tomorrow's EU-US summit.
Times Weekend FT Guardian Guardian: Adam Independent Independent: Leader Independent: Juniper Sunday Telegraph: Booker BBC BBC: Hewitt blog Observer
EUobserver European Voice

EU regulations set to force the break up of bailed-out British banks
A proposed restructuring of the Royal Bank of Scotland by the European Commission could see shares in the British bank plummet. There are concerns that the restructuring, which could see RBS forced to sell off 300 branches in England and Natwest branches in Scotland in order to increase competition, could damage the bank's recovery.

Alistair Darling announced the moves to break up many of the leading banks, as a way to inject new competition into the sector. However the Conservative Party claims he has been forced into it by the EU. Shadow City Minister, Mark Hoban said "when we called for smaller banks six months ago the Treasury dismissed our calls as being on the wrong side of the argument. Now they are being forced into it by the EU".
Telegraph City AM Guardian Guardian 2 WSJ Times Telegraph Sunday Telegraph

French Environment Minister Jean-Louis Borloo writes in French newspaper Le Journal du Dimanche that his 'justice-climate' plan of aid for developing states will not involve new taxes but that "we are pondering over innovative sources of finance, an example being a tax on financial transactions."
LeMonde

Le Monde reports that the EU is examining the possibility of organising communal chartered flights to return illegal immigrants to their home country. The move comes after an official request from French President Nicolas Sarkozy and Italian Prime Minister Silvio Berlusconi.
CoulissesDeBruxelles LeMonde

The FT reports that a new report from the European Bank for Reconstruction and Development says that central and eastern Europe must get rid of its "addiction to foreign currency debt".
FT EurActiv

In the Independent Sean O'Grady writes, "although we occupy such a tiny corner of the globe, trading so much with one another, we Europeans have far less in common than we might think. We are very structurally divergent, and it has taken this crisis to show us quite how much."
Independent: O'Grady

Writing in the Mail on Sunday Shadow Foreign Secretary William Hague argued that David Miliband has carried out a "ruthless smear campaign against the Conservative Party's allies in the European Parliament."
Mail on Sunday Telegraph

On his Telegraph blog Conservative MEP Dan Hannan notes that, from midnight last night, the European Commission became illegal because only the Commission President has been re-appointed, and the old Commission's mandate has expired.
Telegraph: Hannan blog

The BBC reports that the Smos satellite, part of the European Space Agency's Earth Explorer programme has set off, with the aim of providing major new insights into how water is cycled around the Earth, and is part of an eight-spacecraft series to acquire data on issues of environmental concern.
BBC

Saturday's Independent had a feature looking at EU Competition Commissioner Neelie Kroes, asking is she "the most powerful woman in Europe?"
Independent

The Weekend FT reported that the EU's Payment Services Directive has come into force, with the aim of making it simpler and faster to pay bills abroad.
Weekend FT

Sueddeutsche reports that the nomination of Günther Oettinger as next EU Commissioner was only the third choice of Chancellor Merkel. The first two preferences were the CDU chief whip, Norbert Röttgen, and the leader of the German Federal State of Hessen, Roland Koch.
Sueddeutsche Netzeitung

German online newspaper Saarländische Online-Zeitung writes that a report from the Research Service of the German Bundestag questions the legality of introducing the Tobin tax on the basis of the Lisbon Treaty.
Saarländische Online-Zeitung

---

Open Europe is an independent think tank campaigning for radical reform of the EU. For information on our research, events and other activities, please visit our website: openeurope.org.uk or call us on 0207 197 2333.