Wednesday, November 04, 2009

Open Europe press summary: 4 November 2009

Europe

Czech President completes ratification of the Lisbon Treaty
Yesterday Czech President Vaclav Klaus signed the Lisbon Treaty, completing ratification and paving way for its implementation across the EU by 1 December. The Sun and the Express look at the loss of powers from Britain to the EU as a result of ratification of the Treaty, with the Express quoting Open Europe's Lorraine Mullally saying, "Unelected EU judges will see their powers bolstered and more and more decisions affecting our everyday lives will be taken by bureaucrats behind closed doors in Brussels." In a speech in Brussels yesterday, Vice-President of the German Constitutional Court Andreas Vosskuhle said that "the European Court of Justice can be considered to be the motor of European integration".
Express Sun Telegraph FT Irish Times Irish Times: Leader IHT Telegraph: Hannan blog EUobserver EurActiv BBC BBC: Hewitt blog Figaro Correio da Manha Coulisses de Bruxelles AP La Razon Le Monde El País El Mundo ABC.es El País El Mundo Corriere della Sera WSJ Mail Independent Irish Independent European Parliament press release Diario de Noticias Klaus' Statement CZ Court Decision

Open Europe calls on Conservatives to hold a referendum on reform;
New briefing shows EU social and employment policy is exactly the right place to start
There is wide coverage of Shadow Foreign Secretary William Hague's announcement yesterday that the Conservatives will not pledge a referendum on the Lisbon Treaty if they win power at the next election. David Cameron is expected to make a speech this afternoon in which he will announce a new Conservative policy on Europe. The Times reports that Cameron is likely to say that he will seek to claw back powers from the EU in three areas: foreign policy, employment legislation, and justice and home affairs. The details on the measures and the timing of their "repatriation" are unlikely to be spelt out. PA reports that Cameron is expected to announce that a referendum will be held on any future transfer of powers from Britain to the EU.

Open Europe Director Lorraine Mullally appeared on Newsnight and on BBC Breakfast to argue that the Conservatives should announce a referendum on a list of reforms, and use the vote as a negotiating tool in Brussels. She is quoted on PA saying, "If there is not going to be a vote on the Lisbon Treaty, the Conservatives must promise a referendum on an EU Reform Package. We can then have a constructive debate about what goes in that Reform Package - be it opts-outs from social and employment legislation, a repatriation of regional policy, or a complete renegotiation of the EU budget. A 'manifesto mandate' for these things is simply not enough - people want to have the long overdue say."

In an article in the Telegraph, Lorraine argues that the Conservatives could link demands for reform to the upcoming EU budget negotiations, asking people in a referendum: "Are you in favour or against withholding agreement to the EU budget until the European Reform Package has been adopted?" She argues that "If a Conservative government is serious about repatriating policies that have a real impact in Britain, social and employment policy is exactly the right place to start. Laws of this nature have had a massive impact on the UK economy - in fact, they are the most significant driver of regulatory costs in the UK".

Open Europe today publishes the first in a series of papers which looks at what the Conservatives should prioritise in Europe. It argues that, if the Conservatives are serious about repatriating powers to member states, then social and employment policy is exactly the right place to start.

However, in order to achieve a strong negotiating mandate and fully address the current problems with EU social policy, the Conservatives must announce a referendum on reform of the status quo. A referendum on future transfers of power will do nothing to address the substantial costs already arising from EU legislation, nor the lack of democratic accountability in this area.

The briefing notes that EU social and employment laws have had a massive impact on the UK economy, accounting for 25 percent of the total cost of regulation in the UK over the past decade. Looking ahead, UK laws derived from EU social legislation will cost the British economy more than £71 billion between 2010 and 2020, even if no new laws are passed in that time.
Telegraph: Mullally Open Europe press release Open Europe press release 2 Open Europe briefing

David Davis calls on Cameron to announce referendum on reform
In an article in the Mail, former Shadow Home Secretary David Davis issues a direct challenge to David Cameron, arguing he should announce a referendum on "the negotiating mandate that the British Government takes to the European Union", and hold it within three months of the election. He says "This has many virtues. It allows the British people to express their view on the future of their nation. Most of all, it gives the Government a formidable negotiating weapon. Referendums terrify the European Commission and the political elites who run Europe. They are clear statements of the popular will. They force issues to be stated in clear and unambiguous terms. They are impossible to ignore."

He says: "The question should contain four or five specific strategic aims which clearly summarise our objectives. The sort of things we might include are: recovering control over our criminal justice, asylum and immigration policies; a robust opt-out of the European Charter of Fundamental Rights; serious exemptions to the seemingly endless flood of European regulations which cost the UK economy billions of pounds each year; a recovery of our rights to negotiate on trade; exemption from European interference into trade in services and foreign direct investment rules; and an exemption from any restrictions on our foreign policy." He says that if it is not possible to achieve everything we want, "we should give the British people the right to accept or reject it in a further referendum."

Open Europe Director Lorraine Mullally is quoted by PA saying, "David Davis is absolutely right. The Conservatives must not follow in the footsteps of Labour and the Lib Dems and deny people their long-overdue say on the future of the EU."

Meanwhile, Dan Hannan MEP added his voice to those calling for a referendum on reform, and Conservative MP for Shipley Phil Davies said: "It is important to have a referendum so that David Cameron can go to Brussels and say, 'This isn't something I'm demanding, this is something that the British public is demanding'."
Times Mail - Davis Guardian

Speculation grows about Conservatives' new policy on Lisbon and EU;
French Europe Minister "relieved" the EU has "avoided the worst, notably a referendum"
There is widespread speculation about what policy the Conservatives will unveil this afternoon regarding the EU and potential repatriation of powers. The Spectator's Coffee House blog argues that the "referendum question" is "turning into one of trust". Writing in the Times Daniel Finkelstein suggests that the Conservatives think they can "put a stop to what they term 'the European ratchet'. Their policy will insist upon it. But they want to avoid issuing ultimatums with immediate deadlines. There is plenty of time. And many moments where there will be leverage. Europe has to agree a new budget in 2013, for instance."

French Europe Minister Pierre Lellouche is quoted in Le Monde declaring he had heaved a "great sigh of relief", with the ratification of the Treaty, adding: "we have avoided the worst, notably a referendum which the British Conservatives were promising us".

On his Telegraph blog, Benedict Brogan writes: "Worse for those who will find this difficult to swallow, there is little hope that Mr Cameron will be able to offer any realistic prospect of repatriating powers, as we have been writing about. I'm told lawyers have looked at it for Mr Cameron and have reported back that 'it's very difficult, don't hold your breath'".

The Guardian quotes Europe Minister Chris Bryant saying: "The Foreign Office has given me official legal advice that it will be impossible to repatriate powers without changing the treaty. Cameron's difficulty about treaty negotiations is that it will first require the unanimous agreement of the council of ministers, then there has to be an inter-governmental agreement that also has to come to an unanimous view, and then under a new provision of the Lisbon treaty the European parliament can summon a convention that can take years."

The FT's Westminster blog suggests that Cameron will not try to trigger an immediate Treaty renegotiation and notes, "these [European] diplomats expect Cameron to play a longer game and try to fit in with the flow of European Union business. He will say he wants UK opt-outs on the social chapter and some other areas. But he may wait until the next treaty comes up, which is likely to be the one paving the way for Croatian accession in 2011."

Meanwhile, a poll of Conservative Party members by Conservative Home shows that 51% agree that "There is no point having a referendum on Lisbon once it has been ratified", with 46% disagreeing. On whether "Cameron should offer some kind of referendum on Europe to the British people whether or not Lisbon is ratified", 66% agreed and 29% disagreed. Tim Montgomerie, Editor of Conservative Home, told the FT, "The mood of the grassroots is they're willing to accept that there isn't any point in having a referendum on Lisbon but they still want some kind of referendum. However, they equally don't want a big fight...There's a demand for Cameron to get it right but not to have a war over it."
Le Monde Sun Sun: Leader Mirror Times Times: Leader Express: Leader Express Telegraph 2 Telegraph: Leader Telegraph 3 Irish Times European Voice BBC Figaro Telegraph: Brogan blog Guardian Coulisses de Bruxelles Guardian Conservative Home BBC FT Spectator: Coffee House blog FT: Westminster blog Telegraph Times: Finkelstein Economist: Charlemagne notebook

Gordon Brown to "hit the phones" to campaign for Blair EU Presidency
The Times notes that the horse-trading over the jobs created by the Lisbon Treaty will now continue with haste and the Mail reports that Tony Blair and his allies will launch a last-ditch bid this week to gain him the job of European President. Downing Street sources said Gordon Brown would be "hitting the phones and speaking to member states" to campaign for Mr Blair. However the Telegraph notes that there is a growing consensus around Belgian Prime Minister Herman Van Rompuy.

Meanwhile, the Times reports that Lord Turner of Ecchinswell, the Chairman of the Financial Services Authority, is a candidate to become Britain's next EU Commissioner. He could be proposed as Internal Market Commissioner if Britain secures neither the EU President nor the Foreign Minister roles, according to senior Government sources.
Times Mail Times Telegraph Euractiv Euronews Le Figaro Euractiv El Mundo Times

Union says 25,000 jobs at risk as EU insists Lloyds and RBS sell branches;
RBS Chief Executive warns EU restructuring plan could delay repayment to taxpayer
The Guardian reports that more than 900 branches, representing 10% of the high street banking network, are to be put up for sale in the next four years under the restructuring demanded by the EU in return for almost £40bn of Government aid for Lloyds Banking Group and Royal Bank of Scotland. Finance union Unite has warned that 25,000 branch jobs are at risk as a result of the sales.

The Telegraph reports that RBS Chief Executive Stephen Hester has warned that the EU's state-aid demands on the bank may delay the time it takes to pay back the taxpayer for its bailout. He is quoted saying, "The settlement with the European Union makes it harder. The disposals don't improve our ability to pay back the taxpayer. It adds to the difficulty of the job." The article notes that the EU's conditions on the bank, to divest itself of Churchill, Direct Line and Green Flag among others, will reduce the bank's profitability. Mr Hester added that dealing with the EU had been "bruising".
FT Guardian City AM

GM scraps sale of Opel and Vauxhall
The Independent reports that the board of General Motors last night scrapped the sale of its European operations, which include Vauxhall in the UK, after months of negotiations with national governments and the European Union. The sale to the Canadian car parts manufacturer Magna International, which had won the backing of the German and British governments, was no longer in the best interests of GM, now that the environment for car sales has started to improve, the board decided.
Independent Sun Times City AM Telegraph FT IHT BBC EUobserver European Voice

German court's ruling on Lisbon Treaty will be put to the test in 'Mangold' case
On the EUobserver blog, Stephen Gardner, editor of Euro-correspondent.com, notes that the German Constitutional Court's recent judgment on the Lisbon Treaty means that "the German court may overturn rulings of the European Court of Justice (ECJ), potentially putting a serious brake on further EU integration. A test case relating to employment law is working its way through the system in Germany. The case - the Mangold case - concerns a finding against Germany by the ECJ over age discrimination. Should the German court decide the ECJ went too far and reverse the Mangold decision, it could change the balance of power between the EU and member states. I'm not sure the implications of this have so far sunk in in Brussels. The German judges are due to pronounce by the end of the year."
CEP Mangold analysis EUobserver blog

Slovak newspaper Hospodarske Noviny quotes Open Europe's Stephen Booth in an article discussing the future EU President.
Hospodarske Noviny

The Business Times reporst on Open Europe's demonstration in Brussels last Friday supporting friends from around Europe in urging Vaclav Klaus not to give in to pressure and to withhold his signature from the Lisbon Treaty.
Business Times

Government extends working restrictions on Romanian and Bulgarian immigrants
The Mail reports that immigrants from Romania and Bulgaria will be denied open door access to Britain for at least another two years, the Government said yesterday. A maximum of 21,250 agricultural workers from Romania and Bulgaria will be allowed to enter Britain each year, plus a further 3,500 people to fill food processing jobs.
Mail

UN Secretary General: EU's proposed climate fund needs to be "scaled up"
The Independent reports that, on a visit to London, UN Secretary General Ban Ki-Moon said that the package agreed by the EU on Friday, which envisaged a total annual climate fund of €100bn, the public finance element of which should be €22bn to €50bn, "could be a good start". But he added: "It needs to be scaled up as we go."
Independent

Euractiv reports that the EU has started "major preparations" for a successful introduction of their new specialists on sport and the development of a sporting programme suitable for the EU. Under the Lisbon Treaty the EU has power and influence over sporting policy. New powers could affect the protection of intellectual property, the fight against match fixing and international cooperation.
Euractiv

EUobserver reports that audit officials announced yesterday that the EU's 36 regulatory agencies are prone to financial errors. Last year it was discovered that one of the agencies, the European Police College, had used EU money to buy personal cars, furniture and mobile phones for its staff.
EUobserver

Serbia's President Boris Tadíc has indicated that Serbia is likely to apply for EU membership by the end of the year.
EurActiv


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.

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