Europe
Cameron unveils new Europe policy
Conservative leader David Cameron yesterday unveiled the Conservatives' policy on Europe. He said there would be no referendum on the EU, and that he would instead seek a mandate for his new position through the General Election. He said an incoming Conservative government would introduce an "Irish-style referendum lock" on any future Treaty handing over further powers from Britain to the EU, and that there would be "full parliamentary control" over the self-amending and 'ratchet' clauses in the Lisbon Treaty.
He also announced a UK Sovereignty Bill, saying, "as well as making sure that further power cannot be handed to the EU without a referendum, we will also introduce a new law, in the form of a United Kingdom Sovereignty Bill, to make it clear that ultimate authority stays in this country, in our Parliament. This is not about Westminster striking down individual items of EU legislation. It is about an assurance that the final word on our laws is here in Britain. It would simply put Britain on a par with Germany, where the German Constitutional Court has consistently upheld - including most recently on the Lisbon treaty - that ultimate authority lies with the bodies established by the German Constitution."
Cameron pledged a "full opt-out" from the Charter of Fundamental Rights, "broader protection" against "EU encroachment into the UK's criminal justice system", including ensuring that only British authorities can initiate criminal investigations in Britain, and the "restoration of control over social and employment legislation." He said: "we want to restore national control over those parts of social and employment legislation which have proved most damaging to the British economy. For instance we would seek guarantees over the application of the Working Time Directive in our public services such as the fire service and the NHS."
Cameron announced the establishment of a European Policy Committee of the Shadow Cabinet, chaired by William Hague, to work on the detail of the proposals. He said the measures would be given legal effect by adding them to a future accession Treaty. He said the Conservatives would aim to implement the measures over the course of the next Parliament.
Conservatives' press release Cameron's speech
Open Europe: Conservatives must go further and seek comprehensive opt-out from EU Treaty articles on social policy
Several papers report on the "ambiguity" of Cameron's proposal to repatriate powers over social and employment policy. An analysis piece for the Times notes, "Mr Cameron's answer yesterday was vague -- he promised to restore national control over EU regulations that have proved most damaging to the British economy. The only specific policy mentioned by the Conservatives was the working time directive, from which Britain has already negotiated an opt-out....What was missing from Mr Cameron's proposal was a blanket pledge to restore social and employment powers, a recognition that the social chapter...has now become a part of the treaties of the EU and binding on Britain."
In the FT George Parker notes, "Mr Cameron struggles to explain exactly which European workers' rights he would seek to repeal. He cited the working time directive, but this is already covered by a British opt-out. In any case, the increasingly liberal European Commission long ago ceased to be an engine for a tide of new employment laws, a result of the convergence of ideology and the economic reality of rising Asian Âcompetition.
Comment: Open Europe yesterday published a briefing, arguing that the Cameron government should go for a blanket opt-out from the articles in the EU Treaties which have given rise to burdensome employment regulations (notably articles 151 to 161 as amended by the Lisbon Treaty), such as the Working Time and the Temporary Agency Workers Directives.
According to the UK Government's own Impact Assessments, EU social legislation will cost the UK economy £71 billion between 2010 and 2020, meaning that EU-derived social legislation will have a massive impact on the UK economy for years to come. EU laws in this area also continue to evolve in the European Court of Justice. The scope of the Working Time Directive has been extended eight times since its introduction in 1998. The latest ruling came in September this year when the ECJ ruled that holidays taken when sick, can be claimed back at a later date - an interpretation no one anticipated. To claim that EU social policy no longer has much impact on the UK or has ceased to evolve is incorrect.
Importantly, the UK does not have an opt-out from the Working Time Directive, as claimed by both the FT and the Times today. The UK has an opt-out only from the provisions within the Directive which cap the working week at 48 hours. All the other rules entailed in the WTD apply to the UK, such as rules for on-call time and compensatory rest, which alongside other provisions in the WTD, have caused massive problems for the NHS - as a new report published today shows (see below).
In addition, as the German Constitutional Court argued in its forceful ruling on the Lisbon Treaty earlier in the year, social policy is an area that is particularly sensitive for the ability a country "to democratically shape itself", and an area where the EU has incrementally extended its own powers over the last decades.
The Conservatives are therefore absolutely right to focus on social policy when thinking about EU reform. However, only a comprehensive opt-out from all the key "social" articles in the Treaties will enable the Conservatives to cut down regulatory costs, stop social legislation from evolving in the EU courts, and cease the unhealthy creep of powers in this area. Restoring national control only "over those parts of social and employment legislation which have proved most damaging to the British economy", as announced by David Cameron yesterday, will therefore not be enough. In addition, it is very hard to see how such a selective approach would work in practice.
Open Europe briefing Open Europe press release FT Guardian: Milne Times: Analysis FT Guardian: Leader Telegraph: Brogan blog BBC: Hewitt blog
Government-funded report: EU's working time rules contributing to hospital deaths;
Commission to begin new talks on Working Time Directive in weeks
The Guardian notes that a 116-page investigation of more than 4,500 fatalities, published by the Government-funded National Confidential Enquiry into Patient Outcome and Death, will reinforce anger among surgeons over the impact of the EU's Working Time Directive (WTD) on medical rotas. The final stage of the Directive came into force on 1 August, significantly reducing junior doctors and surgeons' hours.
The report suggests the shorter working week is responsible for a lack of continuity in out-of-hours care and a reduction in training opportunities for operating theatre staff. "Not only were trainees less frequently in theatres, but when they were, they were not receiving direct supervision at the operating table. This raised concerns that trainees are not getting quality training in emergency surgery," the report says.
Meanwhile, European Voice reports that the European Commission will in the coming weeks begin its second attempt to overhaul EU rules on working time. Discussions between Parliament and the Council of Ministers became deadlocked last year over whether national governments should relinquish their opt-outs from the 48-hour week in exchange for concessions on on-call time, which has a huge impact on doctors' rotas. The European Parliament called for an end to opt-outs, but this was opposed by the UK, with support from other member states.
Guardian Independent European Voice Open Euorope research
French Europe Minister says Conservatives have "a very bizarre sense of autism" and threatens to reduce UK rebate;
Lord Tebbit calls for referendum to strengthen EU negotiating position
The front page of the Guardian reports that the French Europe Minister Pierre Lellouche has described as "pathetic" the Conservatives' EU plans, warning they would not succeed "for a minute". Lellouche - who said he was reflecting Nicolas Sarkozy's "sadness and regret" - said "They have one line and they just repeat one line. It is a very bizarre sense of autism." He added that the Conservatives were "castrating" Britain's position within the EU and that they would take Britain off the radar.
Lellouche said that any Conservative plans for a Treaty change were unlikely: "It's not going to happen for a minute. Nobody is going to indulge in rewriting [treaties for] many, many years. Nobody is going to play with the institutions again. It's going to be take it or leave it and they should be honest and say that".
Lellouche also warned that France would attempt to reduce Britain's EU budget rebate which will be up for negotiation during the next Parliament. He said, "If we get a government that is ferociously anti European that will vote down this kind of legislation then I think the relationship is going to be very difficult. As we enter the next phase one of the issues we have to discuss midterm is of course finances. France is a net contributor to the tune of €5bn a year, of which €1.5bn is the same as British rebate. That should tell you quite a bit huh?"
In response to Lellouche's comments, William Hague told Newsnight, "I don't think you will find that's representative of the reaction in Paris or other European capitals".
Speaking to the Today programme, Sir Stephen Wall, former EU advisor to Tony Blair, described the comments as "typical French negotiating tactics."
Also speaking to the Today programme, Lord Tebbit said: "when he [Cameron] turns up in Europe, somebody like that French Minister will say 'Mr Cameron you're Prime Minister because you have a curious electoral system but you don't have the support of the British people in what you're asking', and that will be his problem and we've got to help him overcome that, and the way to overcome it is to have a referendum, not on the Treaty, but on what is his negotiating brief for Europe."
Guardian IHT Mail Telegraph: Gardiner BBC BBC 2 El Mundo Today programme
Two Conservative MEPs quit frontbench in protest over new EU policy
Two Conservative MEPs have resigned their positions in the European Parliament in protest at the new policy on Europe. Dan Hannan quit as legal spokesman for the Party and wrote on his blog that he would return to the back benches to campaign for "a broad movement within the Conservative Party that will push for referendums, citizens'initiatives and the rest of the paraphernalia of direct democracy". Roger Helmer resigned as the employment spokesman because he could "neither justify nor support" the party's new EU policy, writing on Conservative Home that "What we have is an essentially cosmetic policy".
Independent: Brok FT: Brussels blog BBC Guardian 2 Telegraph: Hannan blog Mail: Synon blog Telegraph Conservative Home: Helmer FT:Brussels Blog
Other reaction to Conservatives' policy
A leader in the Mail writes, "Put simply, this paper cannot understand why we can't have a referendum, even now that Lisbon has been ratified. As former Shadow Home Secretary David Davis argued so powerfully in yesterday's Mail, it would greatly strengthen Britain's hand at the negotiating table if our Prime Minister could claim a popular mandate...And of course the worst aspect of Lisbon is that it obviates the need for future treaties, since it gives the EU authority to change its own constitution." Writing in the paper, Stephen Glover argues, "Without a referendum it is difficult to see Mr Cameron making much headway in repatriating those powers he mentioned yesterday. With a referendum he would have a far better chance."
In the Guardian Tim Montgomerie, Editor of Conservative Home writes, "I can't pretend I'm enthusiastic about what David Cameron has announced this afternoon: no referendum of any kind. Given that Lisbon is a self-amending treaty, full of ratchet clauses, the promise of future referendums on transfers of power is a bit like closing the stable door after the horse has bolted."
Open Europe's Lorraine Mullally took part in a debate on the Conservatives' referendum policy on BBC Radio 5 Live last night, and appeared on BBC News this morning. Lorraine argued that while the pledges to repatriate aspects of EU law are welcome, the Conservatives could have strengthened their hand at the negotiating table by getting a mandate for the reforms from the people through a referendum, and making a firmer commitment about using the EU budget as a negotiating tool. She argued that, while welcome, the pledge to hold a referendum on future transfers of powers to the EU level is not a sufficient substitute for this since the Lisbon Treaty enables EU integration to happen without the need for future treaties, and there is unlikely to be another treaty like Lisbon again. Lorraine welcomed the Conservative pledge to repatriate EU social and employment policy, which, according to a new paper by Open Europe, is responsible for 25 percent of the cost of all regulation introduced in the UK. She argued it is wrong to believe that British voters are alone in wanting to see reform of the EU, and that a Conservative government could find allies for repatriating EU powers. Lorraine was also quoted by the Evening Standard, and German newspaper Handelsblatt.
A leader in the Spectator argues that, "What the new Tory package amounts to is a promise to ask the EU very nicely if it will consider handing back a few powers over employment and justice. The answer will be 'no'...The threat that would really terrify Brussels is a referendum on whether Britain should remain in the EU at all...The only way Mr Cameron will extract any concessions from Brussels is to threaten to stand aside and let the British public decide if they like what they see."
The Times reports that EU legal experts say that the chances of success of a 'Sovereignty Bill' are unclear, largely because the notional supremacy claimed by the German system has never been tested in specific cases. Speaking to Newsnight, European Minister Chris Bryant argued: "his new bill won't make the blindest bit of difference to the European Court of Justice."
The FT notes that Mr Cameron suggested that one option might be to amend the next EU Treaty - probably the Croatian Accession Treaty in 2011 - to strengthen Britain's 'opt-outs', for example on the Charter of Fundamental Rights. However, the article suggests that the prospect of Mr Cameron potentially holding hostage the Croatian accession seems to contradict his pledge to "keep open the doors of the European Union to new member states", especially in the western Balkans.
Mr Cameron also said that he did not want to "rush into some massive euro bust-up", and would instead negotiate over the next Parliament with other EU leaders. A leader in Guardian paper argues, "he still wants something that other EU states have no reason to offer. At some point there will be trouble. For the Tories, this a Europe crisis postponed, not averted for good."
Writing in the Independent German MEP Elmar Brok states: "The Conservative leader's new warning, however, that he will seek to 'repatriate' powers from Brussels to London is no more realistic than the referendum he has just given up on." He added that any change in the division of legal competences between the EU and member states would require a Treaty change and agreement by 27 member states, and Mr Brok writes: "Unfortunately for Mr Cameron and his election campaign, I do not see any chance of passing even the very first step of such a process."
Handelsblatt Gulf Times Times Times: Letters WSJ City AM Evening Standard Evening Standard 2 Express Express: Leader Telegraph Telegraph: Brogan Telegraph 2 FT Coulisses de Bruxelles Mirror Mirror: Leader Irish Times Guido Fawkes blog EUobserver Guardian Guardian 2 Independent Independent: Leader Sun El Mundo El PaÃs El PaÃs 2 La Razon ABC.es ABC.es Euractiv.com Mail Guardian: Milne Independent: Hamilton Mail: Leader Mail: Glover Guardian: Montgomerie Telegraph: Leader
Lord Myners: New EU super-regulator could have "chilling consequence" for the City
Treasury Minister Lord Myners yesterday told the Commons' Treasury Select Committee that the European Commission is over-reaching itself as it draws up plans for a pan-European system of financial regulation, saying that the proposals could have a "chilling consequence" for the City, the Mail reports. The Commission's plans will see the establishment of a European Systemic Risk Board to watch for risks in the financial sector, and three supervisory bodies which will monitor banks, insurers and securities firms, with the power to overrule national regulators. Lord Myners said that, "The Commission has gone rather further than the (European) Council contemplated." The Committee's Chairman John McFall warned that "There seems to be an awful lot of muddle here, and there are dangers lurking on this issue."
Mail Open Europe press release
AIFM directive redraft scraps leverage limits;
Ban on non-EU managers still unresolved
The WSJ looks at a redraft of the EU's controversial AIFM Directive, submitted by the Swedish Presidency on Tuesday. As previously reported, the redraft has scrapped the proposal for a general limit on how much hedge fund managers are allowed to borrow - which was one of the most contentious provisions in the original draft. However, the Swedish redraft still has not addressed two other contentious issues: the ban on EU investors from investing in funds managed by non-EU managers; and the requirement for custodians to take on the liability for situations when subcustodians, to whom they have delegated a service, fail to deliver securities owned by investors.
WSJ Open Europe research Open Europe press release
EU President to be narrowed to one or two candidates at Monday's Berlin Wall celebrations
According to one EU diplomat quoted in the Times, Swedish PM Fredrik Reinfeldt is set to use the 20 year anniversary of fall of the Berlin Wall to narrow the field of candidates for EU President to one or two before calling a summit, which is unlikely to be held until he has "a clear sense of the outcome". Bookmaker Paddy Power has placed Belgian Prime Minister Herman Van Rompuy as favourite and Le Monde notes that he has been subject to "solicitations". According to the Times, Tony Blair's chances have been thwarted by the "seven dwarfs", a group of leaders from smaller EU countries who favour a President from a smaller EU country, with Le Monde quoting a Council official saying they have "practically buried the idea of Blair".
The position of Foreign Minister is also expected to be discussed on Monday, with the Times reporting on speculation in the French press over the possible candidacy of Lord Patten, the former European Commissioner.
Times LeMonde New Statesman: Macintyre El Mundo Irish Times Irish Times 2 European Voice
MEPs water down protection for internet users from member states wishing to cut access
Euractiv reports that law enforcement agencies will be able to cut off the connections of internet users suspected of illegally downloading films and music, after an agreement between MEPs and EU ministers reached last night. MEPs sent the EU's Telecoms Package back to the Council in May amid concerns that the proposed legislation would not adequately protect the rights of Iiternet users, after France proposed a national law that would allow authorities to cut off internet access without a judicial hearing. The article notes that the most recent text from the Parliament made substantial concessions to the Council and deleted references to a "prior" ruling at a "judicial authority".
Euractiv.fr El Mundo Euractiv.com Cinco DÃas ANSA Knack
The German government has reacted angrily to General Motors' announcement that it is pulling out of a deal to sell its European operations to Canadian firm Magna.
Times WSJ FT FT2 Guardian Independent IHT Sun BBC BBC 2 AP El Mundo Euractiv.com
El Mundo reports that the President of the European Military Committee, Henri Bentégeat, has said that he will negotiate with the next Spanish President of the EU to analyse how the idea of a "Schengen area" for EU defence could be implemented.
El Mundo
The Independent reports that former UKIP MEP Tom Wise is facing jail after confessing to channelling £36,000 of European Parliament expenses into a bank account he secretly controlled. According to the paper, had it not been discovered, his scam could have lasted five years and cost the taxpayer £180,000.
Independent
The Express' Hickey column reports that recently appointed Europe Minister Chris Bryant has quickly succeeded in rubbing up some officials in the Foreign Office the wrong way. It quotes one source saying, "He's not exactly the most popular person to have held this job in recent times."
No link
Polish daily Gazeta notes that, following German Chancellor Angela Merkel's visit to the US, the Washington Post described her as the new quiet "leader of Europe". Adding, "Even when the European Union chooses later this year its new president, it will be extremely difficult for him (and most it be will be a he) to do anything contrary to Merkel's wishes".
Gazeta.pl
Czech President Vaclav Klaus' goal might be for the Czech Republic to regain its 'lost sovereignty' by leaving the EU, Petr Hajek, the Deputy Head of the Presidential Office, said yesterday.
Hospodarskie Noviny Prague Monitor
Euractiv reports that European Parliament President Jerzy Buzek yesterday identified the creation of a European Energy Community as the next big vision for Europe.
Euractiv
In a new report, Friends of the Earth has criticised the EU's emissions trading scheme, saying that to date "cap and trade" carbon markets have done almost nothing to reduce emissions but have been plagued by inefficiency and corruption that render them unfit for purpose.
Guardian
The new European Commission will start work at the beginning of next year on a revision of EU energy taxation, potentially obliging member states to levy a carbon tax on heating and motor fuels that do not feature in carbon trading.
Euractiv
French Foreign Affairs Minister Bernard Kouchner has declared that the EU's controversial cross-border healthcare proposal is a "priority" for the Swedish EU Presidency.
French Foreign Office
The US and the European Union have filed a formal complaint at the World Trade Organisation over China's steep export tariffs on strategic raw materials.
EUobserver WSJ
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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