Open Europe press summary: 30 June 2009

Europe

German Constitutional Court suspends ratification of the Lisbon Treaty, demanding a change to German law giving parliament more say over EU decision-making
Frankfurter Allgemeine Zeitung reports that the German Constitutional Court has ruled that the Lisbon Treaty is compatible with the German Constitution, but has withheld approval for immediate ratification, demanding a law to guarantee the rights of the German Parliament in the EU decision-making process.

The press release of the Constitutional Court notes that the German ratification act should be modified because the German Lower House and Upper House "have not been accorded sufficient rights of participation in European lawmaking procedures and treaty amendment procedures."

It continues: "the Federal Republic of Germany's instrument of ratification of the Treaty of Lisbon may not be deposited as long as the constitutionally required legal elaboration of the parliamentary rights of participation has not entered into force."

The press release notes that: "the further development of the competences of the European Parliament can reduce, but not completely fill, the gap between the extent of the decision-making power of the Union's institutions and the citizens' democratic power of action in the Member States."

FT Deutschland notes that "the Judges have considered the EU to have a democratic deficit. Therefore sovereign rights such as decisions on budgetary matters or on penal law, cannot be transferred to the EU without the consent of the German Lower and Upper House". The newspaper reports that this means the German Parliament will in future need to consent to any changes to the EU treaties, with Frankfurter Rundschau reporting that military operations, "which could be possible after Lisbon", will have to be approved by the German Parliament.

Deutsche Welle quotes the Court saying: "If one wanted to summarise this result, one could say: the Constitutional Court says 'yes' to the Lisbon Treaty but demands that parliament's right to participation be strengthened at the national level."

Die Welt notes that the German law giving the Parliament more say could pass soon, with a first reading to be held on 26 August. The leader of the Christian Democrat faction leader in the German Parliament Norbert Röttgen has announced that the second and third reading are planned for 8 September. German elections are to be held on 27 September.

Open Europe has published a new poll, conducted by German polling company Psyma, which shows that 77 percent of German voters want a referendum on the Lisbon Treaty.
Press release in English Court Decision Spiegel Spiegel 2 EU Observer BBC Deutsche Welle FAZ Zeit Welt NZZ FTD Le Monde OE poll OE poll in German Frankfurter Rundschau

Polish President will delay signing Lisbon Treaty to "defend Irish people's right to a sovereign decision"
Polish President Lech Kaczy?ski says he will only sign the Lisbon Treaty if Ireland and Germany ratify the Treaty, according to DPA. He argues that by delaying ratification in Poland, he is "defending the Irish peoples' right to a sovereign decision". Gazeta Wyborcza reports that this marks a change in the President's position, as he had originally delayed signing the Treaty only for the outcome of the second Irish referendum.
DPA Gazeta Wyborcza

Law lecturer: Neither the 'decisions' nor Irish protocols will change the meaning of the Lisbon Treaty;
Libertas faces €40m costs from European elections
Writing in the Irish Times, senior law lecturer Gavin Barret argues that neither the "decisions" made at the EU summit nor the promised protocol will change the meaning of the Treaty. He notes that "The protocol's role is not therefore that of altering the treaty's impact. It is that of putting it beyond argument that the treaty represents any threat regarding sensitive political issues." He adds, "True, the treaty itself will be the same. But Ireland will vote not merely on Lisbon but rather on 'Lisbon plus'".

Also writing in the Irish Times, Jamie Smyth argues that Ireland needs a strong candidate for the EU Commission in order to "rebuild its reputation in Europe after the Lisbon Treaty No vote". He writes that former Taoiseach John Bruton is the most qualified and most likely to get a 'heavyweight' post due to his work as EU Ambassador to Washington. He adds that this would also get opposition party Fine Gael 'on board' for the next Lisbon referendum campaign.

Meanwhile, the Irish Independent reports that Libertas is on the "brink of extinction" after it spent €40m on its European election campaign. Remaining Libertas members in Ireland are expected to meet in the coming weeks to decide if the party should be wound up, whether a new leader should be elected or if it should return to the status of a "think tank".
Irish Independent Irish Times: Smyth Irish Times: Barrett

Professor Stephen Hawking criticises "disgraceful" EU tax on mobility scooters
Professor Stephen Hawking has criticised what he called a "disgraceful" tax on mobility scooters, and urged the EU's Customs Code Committee meeting tomorrow to drop a 10% import tax on the vehicles. PA quotes him saying, "For many of us with disabilities, a mobility scooter is literally a lifeline - without it we are locked out further from the world around us. To tax the most disadvantaged in society in this way is simply disgraceful".

The current regime classes mobility scooters as "motor vehicles for the transport of persons" which attract a 10% import duty, rather than as "carriages for disabled persons", such as conventional wheel-chairs, which are duty-free. Jim Dooley, Chairman of The Mobility Bureau suppliers said: "We have tried to get the UK Government to fight our corner, but now it seems it's too late. It's a real slap in the face for small businesses and the disabled." PA reports that the tax is almost certain to stay in place.
No link

Private equity senses turnaround in proposed EU regulation
Simon Walker, Chief Executive of the British Private Equity Association (BVCA), has urged European policymakers to pay attention to recent reports from top-rank regulation experts and leave private equity out of their proposed regulation on alternative investment funds.Walker said that comments in the de Larosière report and by Sir James Sassoon, author of a report on financial regulatory reform for Shadow Chancellor George Osborne, show in "clear logic" why the EU should leave private equity out of proposed directive, according to City AM. The article quotes him saying, "These are merely the latest distinguished experts to agree that the directive as it stands is fundamentally flawed...This would do immense damage to private equity at precisely the moment when it could and should be at the centre of a European economic recovery strategy".
City AM Guardian

Bankers Association says EU financial supervision proposals should be based on "clear logic"
The Independent reports that Angela Knight, Chief Executive of the British Bankers Association, speaking on the EU's proposals for financial supervision has said that, "While supporting the [European Union's] proposal for better cross-border co-ordination on systemic issues and between the many regulators, there is little doubt that greater centralisation, more new directives and amendments to old ones are flowing fast from this Commission and may well flow faster still from the new one. These proposals need to be brought forward from a base of clear logic and not from either prejudice or the simple desire of the EU to be seen to be doing something".
Independent Open Europe press release

Commons Committee urges EU Commission to stamp out financial irregularities
PA reports that MPs on the Commons Public Accounts Committee have urged the European Commission to finally stamp out irregularities in its €118 billion budget, saying there was still an "unacceptably high level of error" in some key budget areas. This has meant that the European Court of Auditors has refused to approve the accounts for the 14th consecutive year. Conservative MP, and committee Chairman, Edward Leigh said that a current review of European Union expenditure "gives the Commission a rare opportunity to make the long-term improvements to financial management which have eluded the EU for so long".
No link

The FT reports that EU Competition Commissioner Neelie Kroes has warned UK banks for a second time in a week that they may have to make disposals of their assets as a condition for receiving state aid. The two banks most likely to be affected would be Lloyds and RBS.
FT

Swedish PM urges David Cameron to embrace "European leadership"
The Guardian reports that Swedish PM Fredrik Reinfeldt, due to take over the EU Presidency tomorrow, has said it is a pity that Conservative leader David Cameron has decided to leave the main centre-right grouping in the European Parliament, the EPP-ED, where Reinfeldt's Swedish Moderate Party sits. Reinfeldt also added that Cameron will need to adopt a more pragmatic approach in government and will "need" mainstream leaders in Europe.

Reinfeldt is quoted saying, "If David Cameron becomes prime minister, part of what he wants to do in the world and Europe will need European structures. I hope he will feel comfortable in working with other European leaders. He will need us. To address this issue he needs European leadership, not only British leadership."
Conservative Home Guardian Press Conference

Court of Auditors criticises Galileo Programme
Knack reports that the EU's Galileo Satellite navigation project has come under heavy criticism from the Court of Auditors. The Court says that the preparation phase of the 'Galileo Joint Undertaking' scheme was inadequate, resulting in a poor execution of the Public-Private Partnership-programme, adding "If the commission wishes to engage in other infrastructural programmes, it should ensure that it has adequate instruments at its disposal".
Knack AFP

EU promises "strong and collective action" against Iran
A leader in the FT writes that Iran's intimidation and arrest of Iranian employees of the British Embassy in Tehran demands an EU response. The article notes that Britain "has rightly taken its case to its partners in the European Union" and that "faced with retaliation from 27 countries rather than one "little Satan", Iran might just think again. This is an important test of EU cohesion and solidarity."

The Times reports that one option being considered by the EU is for all 27 member states "to withdraw their ambassadors from Tehran temporarily as a collective protest".
FT: Leader Times Irish Times Guardian

Angela Merkel: "We are impatiently waiting the start of the Swedish presidency"
Several sources are providing a critical analysis of the Czech Presidency as it reaches its last day. RFI highlights the failures such as the downfall of the Czech government and the diplomatic errors which were made, and states that the task of presidency was made even more difficult by the conflict in Gaza, the Russia and Ukrainian fuel crisis, and the economic crisis. RTBF describes the presidency as a catastrophe, quoting Angela Merkel saying, "We are impatiently waiting the start of the Swedish presidency".
Meanwhile, a roundup of what to expect from the Swedish presidency is published on Toute l'Europe. First on the agenda is fighting the economic crisis and climate change.
Opening a new chapter of negotiations with Turkey is likely, even in the face of reticence from some member states. Negotiations with Croatia however, are likely to be put on hold due to a border dispute with Slovenia.

The Justice and Home Affairs cooperation or the 'Stockholm programme' is likely to be a contention point - due to its far reaching and somewhat murky nature covering Visas, immigration and security. Trade negotiations will also be a priority.
Toute l'Europe RFI RTBF Reuters Les Echos

On the FT: Brussels blog, Tony Barber argues that a squabble between Spain and Belgium over who should preside over the Union for the Mediterranean for the next two years "puts EU foreign policy in a poor light", but says a lot about "the way the European Union operates". Barber adds "EU governments look like mice fighting over a piece of cheese, while outside Europe the world is full of large, fierce cats."
FT: Brussels blog

Expansion writes that the European Commission urged the Spanish government to notify commissioners of details of the restructuring plan adopted by their banking sector last week.
Expansion

Leaders of international lending institutions met yesterday with Russian and Ukrainian officials, the IHT reports, to discuss ways to help Ukraine pay Russian company Gazprom for its natural gas after energy shortages left EU citizens without heat last winter.
El Mundo IHT

Gazprom has signed a deal to import gas from Azerbaijan and distribute it to Europe, the BBC reports. Some observers in Europe are seeing this move as an attempt by Moscow to extend its monopoly over European energy supplies.
BBC news

EU Observer and Le Monde report that the OSCE, which monitored the Albanian elections, said that while there was marked progress, there were also rumours of pressure on voters, among other voting problems in the country.
Monde EU Observer

The European Commission reached a deal with ten of the world's leading mobile-phone makers yesterday to introduce a universal charger for mobile phones as of next year.
WSJ Irish Independent Independent FT Times Irish Times El Mundo EuropeanVoice Google News EU Observer Euractiv

The Times reports that tension between Russia and Georgia is increasing as Russia carries out 'Caucasus 2009' military exercises close to the border. There are fears that Russian troops will soon enter the Georgian capital Tbilisi and topple the government.
Times

The Coulisses de Bruxelles blog reports that former French Justice Minister and new MEP Rachida Dati is planning on joining law firm Willkie Farr & Gallagher, raising doubts about her ability to perform her duties in Brussels.
Coulisses de Bruxelles

The EU and the US have jointly established the European Electronic Crime Task Force, which will tackle cyber-crime and monitor computer networks for threats.
WSJ

In the WSJ, Hugo Brady argues that "Britain's European debate remains stuck somewhere between 1988 and 1993" and that the UK needs to decide once and for all whether to stay in the EU or not.
WSJ: Brady

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.

Open Europe press summary: 29 June 2009

Europe

New poll shows 77% of German voters want a referendum on the Lisbon Treaty
Judges at the German Constitutional Court are tomorrow due to rule on the compatibility of the Lisbon Treaty with the German Constitution. Ahead of the decision, Open Europe, in collaboration with the Institute for Free Enterprise in Berlin, has published a new poll which shows that 77% of Germans want to be given a say on the Lisbon Treaty in a national referendum. Voters were asked: "Do you think that German voters should be given the opportunity to have their say on the new EU Treaty in a national referendum?" 77.3% said yes, 20.7% said no, and 1.9% said they don't know.
Euractiv quotes Open Europe Director Lorraine Mullally saying, "This poll clearly shows that it is not only the Irish who want to be consulted on the Lisbon Treaty. This treaty transfers significant powers from the national to the EU level, and German voters want to be given a say".

"Politicians claim they want to see more debate about the EU at national level, and yet they have conspired to deny voters a say on the Lisbon Treaty. Research shows that referendums on European issues significantly improve the public's interest in and knowledge of the EU - so referendums should be encouraged, not avoided at all costs."

"If politicians want people to connect with the EU, they should give them a say on the big issues like treaty change. The public are crying out to be consulted - it is time to stop pretending that politicians know best, and inject some democracy into EU politics".

German daily Die Welt looks to the German Constitutional Court's decision and notes that for matters which will be decided in the Council with Qualified Majority Voting, the German parliament's assent will be needed. FAZ cites several experts criticising the scope of the Lisbon Treaty, with Law Professor Markus Kerber saying: "Brussels is acting like a nameless regime of selfish elites. The Commission has become the 'many headed serpent' of Europe, robbing ever more democratic power from the citizens."

Dietrich Murswiek of Freiburg University is quoted saying, "the Lisbon Treaty brings powers to Brussels in many essential areas. It is a gigantic camouflage", while Die Linke Co-Chairman Oskar Lafontaine believes the Treaty is a "programme for military armament and a step towards a 'Europe of corporations'". Euractiv Open Europe press release Press release in German Open Europe blog Welt FAZ DPA EU Observer

McCreevy: 95% of countries would probably have voted No in Lisbon Treaty referendums
Saturday's Irish Times reported on EU Internal Markets Commissioner Charlie McCreevy's comments last week, in which he said, "When Irish people rejected the Lisbon Treaty a year ago, the initial reaction ranged from shock to horror to temper to vexation. That would be the view of a lot of the people who live in the Brussels beltway. On the other hand, all of the [political leaders] know quite well that if the similar question was put to their electorate by a referendum the answer in 95 per cent of the countries would probably have been No as well."

Saturday's Irish Independent also reported that he said that Irish people should not be ashamed about how they voted, and quoted him saying "I've never been ashamed to stand up for the way we do our business here. We do it by referendum. That's democracy."

EurActiv quotes Open Europe Director Lorraine Mullally saying that the Irish Commissioner's "honesty" had "touched a nerve" and that his statement "probably reflects what most other EU leaders think themselves".
Open Europe blog Open Europe briefing Irish Times Irish Independent EurActiv Economist: Charlemagne blog Telegraph Sunday Telegraph Irish Times 2

Bruce Arnold: Ireland's "legal guarantees are worthless"
Under the headline, "Government has abandoned democracy to get a 'Yes' vote", Bruce Arnold argued in Saturday's Irish Independent that Irish PM Brian Cowen was "abandoning democracy the day after the vote. He was then servile in courting European countries, telling them how sorry he was that the Irish people had insulted Europe and assuring them of changed times ahead. He then isolated a few marginal issues, none sufficient for the size of the huge vote, invented a survey of the "real" Irish view on Lisbon and claimed that amending doubts about neutrality, abortion and taxation would do the trick. No need, he said, to look further into the more serious and fundamental EU drawbacks."

He continued, "The legal guarantees are worthless and do not change the treaty. However, they had the desired effect. A number of foolish and misguided public figures, respected for talk shows on television, selling groceries, writing poetry, went public and said they would vote 'Yes'."

In the Irish Independent, columnist Maurice Hayes writes "The clarifications [protocols] in this case are less an explanation of what is in the treaty, than an affirmation of what is not. More nuanced it may be, but the question remains the same -- as does the treaty."
Irish Independent: Arnold Irish Independent

Private equity says proposed EU directive is protectionist and discriminatory
The European Private Equity and Venture Capital Association (EVCA) has strongly criticised the EU's proposed directive on alternative investment fund managers, saying the proposal would restrict free movement of capital and discriminate against private equity owners of companies, which would be subject to stricter requirements than other unlisted companies.

Jonathan Russell, EVCA chairman, was quoted in the Weekend FT saying, "The directive would be incredibly complicated - it could really be quite dangerous. You are in danger of clogging up the system [and] you are opening up the door to all sorts of responsive legislation [worldwide], not only in the US, but also Asia." However, Russell added that he was confident the proposal could be changed. "We can make quite a lot of difference. People in the European parliament and Commission don't want poor-quality legislation. Member states understand that and want ... a workable solution." he said.

Meanwhile, London-based hedge fund managers, who also oppose the proposal, have set up a 'fighting fund' to lobby against the draft directive across the EU and the UK, reports the Telegraph. Andrew Baker, head of industry organisation Aima, is quoted saying, "The industry needs to accept that the directive will not go away, but it needs to be substantially re-written. This means we have to effect change in the EU parliamentary process and within the EU Council."
Telegraph Weekend FT City AM

Mandelson opposed to more regulatory powers for the Bank of England
In a speech to the British Bankers' Association, Lord Mandelson will state his opposition to giving the Bank of England more regulatory powers. He will also say that the FSA and European Union "are both going to get a new rulebook" that will create new capital and liquidity requirements, better accounting for risk, and "reshape the landscape for derivatives".
Telegraph

European Ombudsman rues that Commission should interfere in Austrian national policy
PA reports that the European Ombudsman, P Nikiforos Diamandouros, has said that the European Commission must either take legal action against Austria, concerning a ban on the use of wild animals in circuses, or give the European Circus Association a valid reason for not doing so. The Circus Association had complained that the ban, introduced four years ago, was a violation of the free movement of services and discriminatory because wild animals are still allowed on film sets in Austria.

The Commission started infringement proceedings against Austria but then decided to drop the case on the grounds that the protection of wild animals was best left to national authorities. The Circus Association then turned to the Ombudsman, who investigates complaints about maladministration by EU bodies. The Ombudsman's ruling said the Commission, as the guardian of the EU Treaty, was obliged to supervise the correct application of EU law in the member states.
Ombudsman press release

Baroness Vadera likely to be next UK Commissioner
The Times reports that Gordon Brown is considering the nomination of his former aide, Lady Vadera, for a five-year position in the European Commission. Commission President, Jose Manuel Barroso, is reportedly petitioning for a female Commissioner.
Times

City law firms criticise EU employment regulations
The Sunday Times reported that some of the City's top law firms have criticised new EU employment regulations which prevent them from employing candidates from outside the EU. The EU regulations state that immigrants wishing to obtain a highly-skilled migrant visa must have a masters qualification, which many lawyers do not have. According to the article, various law firms have written a letter to the Law Society warning that the rules are restricting talent flow into the UK and will ultimately make the City's legal sector less competitive.
Sunday Times

Turkish PM restates EU accession goal
The Weekend FT reported that Recep Erdogan, Turkey's Prime Minister, lashed out at western European politicians for seeking votes in this month's European parliamentary elections by ruling out Turkish entry to the European Union. "Some narrow-minded politicians have used Turkey as election material, and we believe this to be very wrong and very populist," Mr Erdogan told reporters in Brussels.

Meanwhile, the BBC notes that both opposition inside the EU and insufficient democratic reforms in Turkey are hampering its accession bid. Turkey's EU accession talks risk suspension if Ankara fails to open its ports and airports to Cyprus this year. Euractiv quotes Erdogan as saying "Our goal is full membership".
Le Monde Weekend FT BBC EurActiv

EU warns Iran after British workers arrested
EU foreign ministers have promised a "strong and collective response" to Iranian intimidation, after nine British embassy workers were arrested in Tehran following protests over claims of vote rigging. The ministers met in Corfu, Greece, to review their strategy towards Iran, and urged to country to release the Iranian employees of the British embassy, as well as a Greek journalist; all detained on suspicion of instigating the unrest.
Guardian FT IHT Independent Irish Times

EPP group could have majority for Barroso with support from liberals and Conservatives' groupDe Standaard reports that some political groups in the European Parliament want to postpone the election of the next Commission President until autumn, but the incoming Swedish Presidency has objected. The newspaper notes that the EPP group in the European Parliament (264 MEPs) would be able to obtain a majority for Jose Manuel Barroso with support of the liberals (82 MEPs) and the group of the British Conservatives (55 members), who would still be willing to cooperate with the EPP, despite having left the group.
On his Coulisses de Bruxelles blog, Jean Quatremer writes that the European Socialists will have only themselves to blame if Jose Manuel Barroso is re-elected as President of the Commission - due to their inability to produce a viable alternative candidate.
Coulisses De Bruxelles Standaard

The News of the World noted that the Commission will tomorrow table a proposal which would ban smoking in certain outdoor areas, such as beer gardens and concert venues.
No link

EU officials confident about Nabucco pipeline deal
European Voice reports that EU officials are quietly confident that the Nabucco pipeline, which will pipe gas from the Caspian to Europe through Turkey, will be possible. The pipeline will provide Europe with an alternative to Russian gas, and would also give Turkey a pivotal strategic role. Turkey's Prime Minister Recep Tayyip Erdogan told reporters that he "hoped" that an agreement on Turkey's participation in the 3,300-kilometre pipeline project might be reached in July.
European Voice

A Euractiv article looks ahead to the Swedish Presidency of the EU, starting on 1 July, noting that Sweden's top three priorities will be responding to the recession, agreeing a global climate change deal, and developing EU cooperation in justice and home affairs.
EurActiv EurActiv 2 European Voice

The Independent on Sunday reported that the UK is failing to meet its sustainable living targets. Last Wednesday, the Sustainable Development Commission (SDC) warned that Britain remains the EU's second-largest emitter of greenhouse gases and that it is unlikely to meet its 2010 target of reducing CO2 emissions by 20%. Britain also trails behind most European countries with regard to supplying renewable energy.
Sunday Independent

The twenty-year old EU legislation regulating the shape and size of cucumbers is to be abandoned this week, Die Presse reports.
Die Presse Mail

According to NorvegeFR, 40% of Norwegians are in favour of joining the EU - up from 33% in March.
NorvegeFr

In the FT, Wolfgang Munchau argues that if France and Germany are to pursue opposing fiscal policies it would create a fundamental imbalance within the eurozone, adding that, "you surely do not want to get into a position where a large member state has a rational economic reason to quit."
FT: Munchau

In the WSJ, Marcus Walker argues that "Germany, in the grip of a massive export slump, firmly believes it has no alternative to export-led growth. But there is an alternative - the country just doesn't have the stomach for the changes it would require."
WSJ: Walker

OECD monitors have said that Albania's elections appeared to have proceeded calmly, with fewer electoral irregularities than in the past, in an election described by the IHT as a "crucial test of Albania's democratic credentials and readiness to join the European Union."
IHT

The Guardian reports that low cost airlines such as Easyjet are ignoring the new EU ruling on travel insurance which was established in November. Easyjet is still making passengers opt out of travel insurance when booking flights.
Guardian

In an interview with Le Magazine, Pavel Fisher, the Czech Ambassador to France says that criticism of the Czech Presidency of the EU was "unfair and offensive". He adds that the Czech Presidency has not suffered as a result of the difference of opinions on Europe between President Klaus and former Prime Minister Topolanek.
Le Magazine

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.

Metamorphoses (German foreign intelligence predicts shifts in global power constellations)

Newsletter 2009/06/19 - Metamorphoses

BERLIN (Own report) - The German foreign intelligence service is predicting shifts in the global power constellation and is demanding "a geo-strategic debate in Germany." According to a classified Federal Intelligence Service (BND) study, the collapse of the western national economies, whose recuperation is unpredictable, could lead to a drastic acceleration of China's rise and the decline of West Germany's long-term primary ally, the United States. This intelligence service paper is being currently discussed in Berlin and excepts have been leaked to the press to prepare public opinion for possible changes in global policy orientation. "A long-term global crisis" cannot, for the moment, be excluded, assesses the BND, who, if this happens, is anticipating "massive unemployment and movements of migration in unprecedented dimensions" as well as an escalation of nationalism and very serious international tensions. An essential question, for the future global conflict constellations, according to this paper, will be if Russia can be bound to the West or if Moscow will go over to the Chinese adversary.

more
http://www.german-foreign-policy.com/en/fulltext/56258

Open Europe press summary: 26 June 2009

Europe

McCreevy admits most EU voters would reject Lisbon Treaty if they had the chance
According to the Belfast Telegraph, EU Commissioner Charlie McCreevy has this morning admitted that the Lisbon Treaty would have been rejected in most member states if it had been put to a public vote, and that many EU leaders were glad they had no legal obligation to hold referendums on the treaty in their own countries.
Belfast Telegraph

Finnish MEP tipped for Conservative group over-claimed €200 for every trip to his constituency
Helsingin Sanomat reports that Finnish MEP Hannu Takkula, who recently left the newly formed European Conservative and Reformist group in the European Parliament, has claimed a total of €130,000 from the European Parliament to cover travel between Brussels and his constituency, but has instead travelled to his home town, claiming an extra €200 per trip. Under European Parliament rules, Takkula can receive money to cover the cost of travelling to his constituency, which is Rovaniemi, but instead, Takkula has been travelling to his home town of Turku, where his family have lived for several years. The newspaper notes that the cost of travelling to Turku is around €200 cheaper per trip than the cost of travelling to Rovaniemi, suggesting Takkula has made a profit on each trip he claimed for.

Over the five-year mandate, Takkula has reportedly claimed €25,600 per year. Takkula said "There is nothing unclear about this. I have officially changed my city of residence at the EP in spring this year".

Nelonen further reports that Takkula was not a legitimate candidate in last year's local elections, according to the Finnish court, because he ran for a city that was not his town of residence. "He should never have been allowed to stand for candidacy", the court announced.
Coulisses de Bruxelles HS Nykypaiva Nelonen Iltalehti Helsinki Times Helsingin Sanomat

Czech social democrat party considers suspending President Vaclav Klaus' powers over refusal to sign Lisbon Treaty
EU Observer reports that the Czech social democrat party is considering suspending President Vaclav Klaus' powers if he refuses to sign the Lisbon Treaty. The article notes "temporary suspension would require a simple majority of 41 votes in the country's 81-seat senate and would allow caretaker Prime Minister Jan Fischer to sign the document instead". The Lisbon Treaty has been ratified by the Czech Parliament and Senate but its compatibility with the Czech Constitution is currently being analysed by the Czech Constitutional Court with a decision expected in September.

Klaus has vowed to be the last to sign the Treaty and will wait until Germany, Poland and Ireland have ratified it in the hope that the Conservatives may be elected in the UK by then. Former Constitutional Court judge Vojtech Cepl said "There is nothing in the constitution that gives the president the right to veto decisions of the country's highest institutions." However, senate press spokesman, Petr Kostka said "The probability is very low. It's the opinion of just a few senators and not of the whole chamber. The president of the senate, Mr Premysl Sobotka [an ODS party member], has said he doesn't agree with the suspension."
EU Observer

WSJ: "In some countries they rig votes, in the European Union they repeat votes to get the desired result"
An editorial in the WSJ looks at the second Irish referendum on the Lisbon Treaty and begins, "In some countries they rig votes, in the European Union they repeat votes to get the desired result." It goes on to argue, "To justify a revote, EU leaders put on a big show at last week's summit, giving the impression of tough negotiations in which Dublin supposedly won important concessions...Oh really? According to the EU summit's own conclusions, the protocol 'will clarify but not change either the content or the application of the Treaty of Lisbon.' So the Irish will vote on the same text they previously rejected by a seven-percentage-point margin despite assurances by their government as recently as last month that this would not happen."

Meanwhile Adrian Michaels in the Telegraph writes, "If democracy is about listening to the people, then Iran isn't the only place where things have got a bit strained. A year ago, 53 per cent of Irish voters declined to ratify the substantial increase of the European Union's powers and reach enshrined in the Lisbon Treaty. Yet in early October, the country will be holding another referendum, in which the people will be given a chance to come up with a better answer."
Open Europe briefing WSJ Economist Telegraph: Michaels

City fears that squabbling between Treasury, BoE and FSA could damage UK's case in Europe
The Times reports that bankers and City lawyers fear that squabbling officials at the Treasury, Bank of England and Financial Services Authority may be damaging the reputation of London as one of the world's premier financial centres and that they may also be distracted from fighting Britain's corner in the debate over greater EU regulation for the financial services sector.

Robert Turner, a partner at law firm Simmons & Simmons, said: "There are many in the City who would like to see less infighting and more effort going into defending the interests of Britain in Europe."
Times

European Commission wants database for all 500 million citizens, raising "big brother" concerns
The European Commission has proposed to set up a new agency to oversee all its large-scale IT systems, thereby bringing together management of three key systems - the Schengen Information System, Visa Information System and Eurodac - plus other related applications, into a single operational structure. Webwereld reports that human right groups have expressed fears for big brother implications, as this would mean that data on all 500 million European Union citizens and all illegal migrants would be merged into a database for "freedom and security". The cost of the system would be €113 million in the first 3 years, and later €10 million per year following that.
Computing.co.uk Webwereld

Turkish Minister: New French EU affairs Minister "could be a good catalyst" for Turkey joining EU
Le Monde reports that new EU Affairs Minister Pierre Lellouche has said he would follow "the government line" with regard to Turkey's EU accession and would like to see "Turkey with Europe", rather than Turkey in Europe.

Meanwhile, the Coulisses de Bruxelles blog reports that Ankara is rejoicing at Lellouche's appointment. Turkish EU Affairs Minister Egemen Bagis referred to Lellouche as "one of my great friends" and said "he could be a good catalyst". He said "If Nicolas Sarkozy, who knows him well, appointed him to this post, it is for good reason. I believe he will influence other members of the government and convince them of the advantages of the accession of Turkey and therefore good sense will prevail in the end". Bagis added that "Turkey will accept nothing less than full and complete accession" and that it is carrying out reforms to live "according to the democratic and economic standards of the Union".

The FT blog notes that Turkey's "entry into the EU is indisputably a long way off" despite creeping "forward one more inch" through formal talks with the EU on taxation next Tuesday.
Coulisses de Bruxelles El Pais European Voice FT: Brussels blog Le Monde Le Monde2

Economist: Conservatives' new EP grouping may be symptom of Britain's relationship with EU
An article in the Economist argues that the problem with the Conservatives' new grouping in the EP is "structural" because "Europe makes even centrist voters cross in Britain, yet centrists on the continent are overwhelmingly pro-EU. So to find allies who share their Euroscepticism, Tories have to seek out populists and angry nationalists. Mr Cameron's new band of allies may be a symptom of Britain's strained relationship with Europe rather than a solution to it."

Meanwhile, European Voice reports that Swedish Moderate Party MEP Gunnar Hökmark has lost his post of Vice-President of the EPP, which the article argues is a sign that the group is becoming less keen on enlargement and free market economics since the UK Conservatives and Czech Civic Democrats left the grouping.

Die Presse writes that the 'grand coalition' between the EPP and the socialist group is likely to crumble due to disagreements about the Commission President's appointment. Together the EPP and the socialist group account for 447 of the 736 seats in the new EP. At the same time, the Swedish 'Pirate Party' has joined the green group in the EP.
European Voice Economist Die Presse El Mundo

EU sues Germany for Bavarian resistance to publish CAP recipients
EU authorities have started proceedings against the Germany over the failure to publish a list of recipients of CAP subsidies, Süddeutsche reports. Bavarian resistance to publish recipients of EU farm subsidies may lead to massive sanctions for Germany. Bavaria's Agriculture Minister Helmut Brunner said "To me it is not about publishing the data, but rather to what extent privacy of the farmers is protected". Brunner himself received €10,000 in EU subsidies last year, but says "I am not only a politician, but also a farmer". The German government has one month to clarify the situation before legal action will be taken.
Süddeutsche Zeit ARD

UK wants global carbon emissions to peak by 2020
The Guardian reports that, in the run up to the Copenhagen climate change conference, Climate Change Secretary Ed Miliband has said that greenhouse gas output should peak and begin to decline by 2020, to "irreversibly break" the trend of rising emissions.

The Copenhagen climate change conference in December will see negotiations intended to replace the Kyoto protocol in setting national limits on carbon pollution. Miliband said that Britain, which will negotiate the new agreement as part of the EU bloc, was pushing for the new deal to force emissions from developed nations to reach a peak by 2015. PA notes that the EU has pledged to cut its emissions by 20% and raise that to 30% by 2020 if a global deal is secured at Copenhagen.
Guardian Le Monde

EU environment ministers agree plan to cut industrial emissions
The FT reports that European environment ministers agreed yesterday on a plan which would reduce industrial emissions throughout Europe. New laws would aim to cut pollutants such as sulphur dioxide and dust emitted by industrial facilities by a third by 2020.

The plans were approved with a narrow majority after conflict between countries such as Sweden, Denmark and Germany, who pressed for tighter pollution targets, and the UK and Poland who have a heavy reliance on coal-fired power plants.

The regulations, when passed through the European Parliament, will demand that all operators of power generators, refineries and combustion plants must implement the most modern techniques to reduce pollution by 2020.
FT

The Irish Times highlights a report published by the Centre for European Policy Studies which shows achieving the objective set by the EU to keep the rise in global temperatures below two degrees will cost the economy €400 billion
Irish Times

The WSJ discusses the EU's financial regulatory proposals, quoting Lord Mandelson: "Is it possible to preserve the benefits of open trade and an open global economy, addressing macroeconomic risk while totally respecting the choices of sovereign governments? Not really".
WSJ

A leader in the Economist argues that Europe needs reform "to shift away from high taxes, generous and wasteful welfare states, and, most of all, overly regulated and inflexible product and labour markets", and that if Germany led the way it could be "not just Europe's biggest economy but also its intellectual leader."
Economist: Leader

In the FT, Tony Barber describes perceived Franco-German disagreements over monetary union and the role of the ECB as a "phoney tug of war", suggesting that "on the need for a strong currency, supported by a strong central bank, there is potentially more common ground between Berlin and Paris than meets the eye."
FT: Barber

The Economist's Charlemagne column looks at EU leaders' nomination for Jose Manuel Barroso's second term as Commission President and argues "If he does not enthuse some leaders, it is perhaps because Mr Barroso incarnates their bad conscience about their nationally minded behaviour. The more honest know they would not tolerate a commission boss willing to push their government into a corner and outvote them in the name of Europe."
Economist: Charlemagne

Le Monde reports that on Wednesday 24 June the European Commission published an action plan to combat terrorism, in particular weapons of mass destruction (nuclear, biological and chemical weapons).
Le Monde

In the Mail Tom Utley contemplates Dan Hannan's theory that Lord Mandelson helped prevent Gordon Brown being removed as PM in order to ensure the ratification of the Lisbon Treaty. Utley argues "If you ask me, what we are witnessing here is the greatest conspiracy against our democracy in my 55-year lifetime".
Mail: Utley

The European Commission has said that it will refer Ireland to the ECJ over the exemption of the State-owned health insurer VHI from certain EU rules on non-life insurance, according to the Irish Times.
Irish Times

The EU Referendum blog reports that the European Commission has referred Italy to the ECJ for failing to respect a 2004 ruling that the country must recover illegal state aid.
EU Referendum blog

The FT reports that Russia is contemplating a huge bank bail-out.
FT

European Voice reports that Romania has set its sights on the agriculture portfolio for the next Commission and that Foreign Minister Cristian Diaconescu has "let slip" that instead of lobbying European Commission President José Manuel Barroso, the Romanian strategy is to charm French President Nicolas Sarkozy.
European Voice

The FT reports that in a move that has raised European concerns, Gazprom, the Russian gas group has entered into a $2.5bn joint venture with Nigeria's oil company.
FT BBC

The European Commission is taking Luxembourg to court over tax haven concerns, as it is accused of trying to get around the EU Savings Tax Directive on savings interest payments, reports EU Observer.EU Observer

According to the Guardian, Poland will present an updated euro adoption timetable by early August, suggesting that the 2012 target date for euro entry will be pushed back.
Handelsblatt Guardian

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.

Open Europe press summary: 25 June 2009

Europe

Senior Socialist MEP threatens Ireland with "second class" status and "isolation" if it rejects the Lisbon Treaty again;
Irish PM: "It's time we had a debate about the sort of Ireland we want in Europe, not the sort of Europe we feel bests suits Ireland"
The Parliament reports that senior German Socialist MEP Jo Leinen has warned that Ireland risks being relegated to a "second class" nation if it again rejects the Lisbon Treaty in a referendum scheduled for the autumn. Leinen said, "If there is a 'No' vote in Ireland I think we are likely to see a two-speed Europe emerge, with Ireland being in what might be called the 'second class'. Those in 'first class' will forge ahead in policy areas such as foreign affairs, justice and energy while the Irish will fall back."

He added the Irish people "have to ask themselves if they want to be isolated from the rest of the EU or to be integrated into the EU" and that the Irish must vote 'Yes' if they wish to continue to benefit from the "protective umbrella" that the EU provides.

The Irish Times reports that Irish PM Brian Cowen has said that it would be politically naïve to assume that there would be no "political consequences or effect" to a 'No' vote in the second referendum. He said that, "it's time we had a debate about the sort of Ireland we want in Europe, not the sort of Europe we feel bests suits Ireland." Cowen added, "Ireland could not survive the current economic crisis without our membership of the euro zone and the availability of resources from the European Central Bank. That is a fact over the last 12 months."

Czech daily Ceskenoviny reports that Czech Europe Minister Stefan Fuele has repeated comments made by Gordon Brown this week that Ireland's 'guarantees' on the Lisbon Treaty will not change the text of the Treaty. He told a Senate committee that, "The guarantees do not change the Lisbon treaty itself in any respect. They have the character of explanatory assurances. In other words, the Irish guarantees only confirm and explain what is already in the text of the Lisbon treaty."
The Parliament Irish Times Irish Times: O Snodaigh Ceskenoviny

De Larosière slams EU hedge funds proposal
City AM reports that three of the world's top regulatory reformers, the author of the EU's report on a financial regulatory system, Jacques de Larosière, FSA chairman, Lord Turner, and Sir James Sassoon, criticised the EU's draft proposal for hedge fund regulation yesterday. De Larosière noted that he "had some doubts on the wisdom of some aspects of the directive," and that "private equity should be kept out of heavy regulation". Sassoon added that, "It's hard to find a kind word to say about a directive so disproportionate in scope, so protectionist in its effect, and so poorly drafted".

Citywire writes that the FSA has urged the European Commission to amend its proposed EU directive to regulate hedge funds, quoting FSA asset management sector leader Dan Waters saying, 'Perhaps out of necessity, it was produced under extraordinary time pressure. This has yielded a directive whose scope and content are a surprise and in many cases a complete shock to the markets that are affected. The impact analysis, performed at a high level on the back of the early general thoughts, could not possibly have addressed the myriad detailed impacts of the sweeping scope of this directive". He argues that the restrictions, similar to the ones placed on UCITs, are unnecessary as hedge funds are not marketed to the retail public.

Writing for the IHT, Melvyn Krauss argues that the EU should follow US President Obama's lead in deciding to not regulate hedge funds and private equity.
IHT City AM Citywire

Spain's €2.7bn in EU fishing subsidies accused of exacerbating overfishing
According to the Guardian, Spain has received more than €2.7bn in subsidies in the last 12 years for fishing practices which exacerbate overfishing. Markus Knigge, Research Director for Pew Environment Group has said that "rather than encouraging sustainable fishing, subsidies have contributed to ever-greater capacity of fishing fleets and in turn to the depletion of valuable fish stocks".

According to the paper, similar levels of subsidies exist in the current 2007-2013 budget period, with some of the biggest cash windfalls going to ships notorious for their questionable practices. Greenpeace named a Spanish trawler which has received more than €4m in subsidies as "the most egregious offender against vulnerable stocks of Mediterranean blue fin tuna". A new website, "fishsubsidy.org" has been created to establish greater transparency about EU fishing subsidies.
EurActiv Guardian

Writing on Conservative Home Sally McNamara, Senior Policy Analyst in European Affairs at the Heritage Foundation, looks at the EU's Common Foreign and Security Policy and cites Open Europe's findings that "12 areas of foreign policy, including the election of the EU foreign minister and proposals emanating from the foreign minister [which] will move from unanimity voting to qualified majority", under the Lisbon Treaty.
Conservative Home: McNamara Open Europe briefing

Finnish MEP decides not to join Conservatives in new EP grouping
Helsingin Sanomat reports that Hannu Takkula, recently announced as the only Finnish member of the new Conservative group in the European Parliament, has decided not to join the group after all. He will remain in the liberal ALDE group alongside his Keskusta party-colleagues, reducing the number of ECR participant countries to seven.

Edward McMillan-Scott, a senior Conservative MEP has expressed concern over some of the parties in the European Conservatives and Reformists Group, according to the Telegraph, saying that he will make his own "investigations into the backgrounds of these people".

Dan Hannan MEP has defended the new Conservative European Parliament grouping, saying, "the ECR is a growing political force" and that "it is starting to look as though we shall hold the balance of power in the new Parliament".

Meanwhile, writing on the Guardian's Comment is Free website, Michael White argues that the Conservatives' "self-inflicted isolation" in the European Parliament could backfire, because the EPP grouping that they have left is guaranteed important seats on committees who will work on the EU's proposals for financial regulation.
HS Verkkoapila Guardian: White Dan Hannan: Telegraph Telegraph El Pais Monde

Sweden keen to focus on energy efficiency during presidency
EurActiv reports that Sweden is seeking to advance the EU's energy efficiency legislation during its forthcoming presidency, which starts on 1 July. The article notes that Sweden's economic and environmental strategy focuses on "transition into an eco-efficient economy", and that Sweden will push ahead even without political agreement from all member states.

The BBC outlines Sweden's priorities for its presidency, which include tackling the economic crisis, climate change, ratification of the Lisbon Treaty, promoting a common asylum policy (the Stockholm Programme), and addressing environmental and economic policy in the Baltic region. European Voice also reports that the Swedish presidency aims to reach a consensus on whether to proceed with a free-trade agreement with South Korea.
BBC European Voice EurActiv Le Figaro

European Commission wants single agency to manage all border data
European Voice reports that the European Commission has adopted a proposal to set up a single agency by 2012 to manage data, including fingerprints and details of passports and visas, collected for databases used by border guards and law-enforcement agencies. The proposed agency would manage data for the Schengen Information System (SIS II), which Britain and Ireland are a part of, the Visa Information System (VIS), the Eurodac system for fingerprint data and other large-scale IT systems.
European Voice El Mundo

No clear European Parliament majority for Barroso
EurActiv reports that there are a large majority of MEPs who are seemingly against holding a vote on the election of Jose Manuel Barroso for a second term as European Commission President on 15 July, and some MEPs may seek to delay it.

Swedish PM Fredrik Reinfeldt will meet with leaders of the political groupings in the European Parliament in Stockholm on 6 July to try and secure backing for Barroso, according to European Voice.
EurActiv European Voice El Mundo

Bloomberg notes that the Chairman of Lloyd's of London, Peter Levene, has criticised the EU's proposals on financial supervision, stating that, "Different countries operate in different ways... you need harmonious regulation. But, you need to have it adapted to local requirements".
Bloomberg

Grim outlook for stability pact as budget deficits expand across Europe
The WSJ reports that budget deficits in the European Union are deteriorating "markedly" and that German Finance Minister Peer Steinbrück declared that Germany has to consolidate spending or risk losing its triple-A credit rating. Bank of England Governor Mervyn King said the UK Government needs to draw up more ambitious plans for reducing its deficit. The European Commission said Poland, Lithuania, Romania and Malta have excessive budget deficits. Under EU rules, countries must keep their budget deficits below 3% of gross domestic product.

Le Monde quotes Peer Steinbrück saying that Germany will not be able to respect the stability pact until 2013. EU rules say that during a recession governments can overshoot the deficit as a 'temporary and exceptional' measure.

Meanwhile, Süddeutsche reports that Germany has reached an all time budget debt record of €86.1 billion, double the previous record from 1996.
SZ European Voice Monde Liberation WSJ

Border dispute between Croatia and Slovenia "useless"
Süddeutsche quotes an EU diplomat saying "the border dispute between Croatia and Slovenia is completely useless. As EU member states, the borders would practically disappear anyway". EPP group leader Joseph Daul has joined Swedish Prime Minister Reinfeldt in saying the dispute should be solved bilaterally, without EU intervention.
No link

The ECB has lent a record €442bn in 12 month loans to over 1,000 banks in the eurozone in a move dubbed by the FT to be "stimulus by stealth".
FT FT 2 WSJ BBC EurActiv IHT Telegraph cityam FT 3 FAZ

The FT and WSJ report that China has denied claims made by the EU, US, and other countries that it is practicing protectionism and illegal trade subsidies, and retaliated with its own complaint to the World Trade Organisation.
FT WSJ Telegraph

The LA Times quotes an IMF study concluding that Ireland is experiencing the worst recession in the developed world, with its economy shrinking by 8.5% and its budget deficit expected to reach 20% of GDP in 2010.
LA Times

Writing in the Guardian, Timothy Garton Ash argues that, "the most important thing the Lisbon Treaty does is to create the institutional machinery for a better co-ordinated and more effective European foreign policy. The machinery - not the thing itself. That requires the political will of ­sovereign member states."
Guardian: Garton Ash

Prospect magazine reports that the EU is divided on foreign and defence policy and that it seems to be 'slipping backwards', adding that "it must learn to speak in one voice, or others will shape the new world order".
Prospect Magazine

Writing in the WSJ, Martin Livermore, Director of Scientific Alliance, criticises the European Emissions Trading Scheme for over-allocation of free permits, resulting in an abuse of the system. He cites the "inherent flaws in the system", and adds, "The entire scheme will remain vulnerable to political interference and thus likely fail to reduce carbon emissions".
WSJ

El Mundo reports that the Senegalese President Abdoulaye Wade has criticised the EU's migration policy, arguing that the EU "takes trained people that we need for our development".
El Mundo Commission Press Release Afrique en ligne

L'Express report that Turkish PM Recep Erdogan is arriving today in Brussels for talks aimed at kick-starting Turkish EU accession plans. This is the second such visit this year as Turkey's candidature faces strong opposition from several member states.
L'Express

FAZ reports that Lothar Bisky has been appointed group leader of the EP's 35 member strong United European Left/Nordic Green Left fraction. Bisky will be supported by Rebecca Harms and Daniel Cohn-Bendit.
No link

The World Wildlife Fund has said that the recession should enable the EU to increase its carbon emissions reduction target from 20 percent to 30 percent by 2020.
Irish Times

El Mundo reports that the European Parliament plans to send a delegation, led by EP President Hans-Gert Pottering to Iran to "verify the situation" and "express our solidarity with the people who are fighting for liberty".
El Mundo

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.

German moves in Iran

Newsletter 2009/06/22
German-Foreign-Policy.com

In spite of explicit warnings, German organizations are trying to escalate the internal power struggles in Iran. The state-financed Deutsche Welle radio station is one of the foreign broadcasters, whose Farsi-language program is firing the protesters on, with hourly reports on reactions from the west. Party-affiliated foundations, including the German Free Democratic Party (FDP) -affiliated Friedrich Naumann Foundation are offering their partnership to those opposing the central structures of Iran's government. After initial hesitations, the German Foreign Ministry has also begun to openly intervene in the domestic affairs of a fellow UN member nation, making "demands" on the government of a sovereign country. Over the weekend, the chancellery also assumed the position of a challenging partisan in the Iranian domestic power struggles. German press organs are indulging in blood-lecherous anticipation of the "chaos in Teheran." Every intervention in the current power struggles is "highly detrimental," assessed Bahman Nirumand an expert on Iran. It makes the protest demonstrators appear to be "guided by the West, their leaders will be branded as collaborators." Indeed, the current support for the Iranian opposition is essentially motivated by foreign policy objectives. As long as the West had its Shah regime in power in Teheran, the Iranian movement for democracy was repressed, in a bloodbath, with western help.

Over the weekend representatives of the government in Berlin issued numerous statements intended to teach the Iranian government how to behave democratically. The Iranian ambassador was summoned to the Foreign Ministry, in a colonial hegemonic manner. The Iranians are rejecting this interference and threatening to break diplomatic relations with Berlin. Still, German organizations close to the government are continuing unabated their activities, fanning domestic protests in Iran. Among the main perpetrators of foreign seditious propaganda are the official German foreign radio station, the Deutsche Welle and several German party-affiliated foundations....

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Open Europe press summary: 24 June 2009

Europe

Gordon Brown: Irish 'guarantees' will "clarify not change" the Lisbon Treaty
Gordon Brown and Conservative leader David Cameron clashed in the Commons last night over the 'clarifications' given to Ireland on the Lisbon Treaty. PA notes that Brown insisted that the 'guarantees' given to Ireland would "clarify but not change" the Lisbon Treaty. Brown said that a new protocol would in no way alter the relationship between the EU and member states. He said: "To be absolutely clear, the Heads of State or Government have declared: the Protocol will in no way alter the relationship between the EU and its Member States. The sole purpose of the Protocol will be to give full Treaty status to the clarifications set out in the Decision to meet the concerns of the Irish people. The Protocol will clarify but not change either the content or the application of the Treaty of Lisbon".

Brown added, "They have received their clarifications. It will be set out in a protocol. It will come to all Houses of Parliament, at the next accession treaty, when that has to be confirmed by these Houses of Parliament."

Cameron responded saying, "Why are Irish voters being forced to give their views twice when the British people haven't been asked for their views once?" He also criticised the method by which Ireland's 'guarantees' are expected to become legally binding: "Will you explain why the protocols won't be debated or put into place until the next countries join the EU. Isn't it the case the Government wants to delay this until after the next election. They don't want the embarrassment of having to vote yet again in the Commons to deny people the referendum they originally promised."

When asked "do the guarantees have legal effect and if so how?", Brown answered: "They will be deposited in the way that often happens at the United Nations and will have legal effect from the time that the Lisbon Treaty is in power."

Meanwhile, writing in the Irish Times, Irish Prime Minister Brian Cowen sets out his reasons why Irish people should vote 'Yes' in the second referendum. He claims that "accusations that the outcome of the summit was a pre-cooked charade are wrong and highly insulting to our EU partners." He says, "Many member states struggled with Irish reluctance to sign up to what they see as a necessary updating of the union's rulebook. Some were alarmed at being asked to agree guarantees on issues not even mentioned in the Lisbon Treaty. Others, perfectly legitimately, did not wish to reopen their own democratic ratification processes."

The paper notes that Cowen will name the exact date for the second Lisbon Treaty referendum when legislation to allow it take place goes through Ireland's Dáil and Seanad in a fortnight's time.
Irish Times Irish Times 2 Irish Times 3 Irish Times: Cowen Hansard Open Europe blog

DPA: "Nobody expects a complete 'No' from the German Constitutional Court on Lisbon"
A DPA article looks ahead to the decision by the German Constitutional Court on whether the Lisbon Treaty violates the German Constitution, which will be announced on 30 June. The article notes that "nobody expects a complete 'No'" from the top judges, adding that a "'Yes, but' is considered a possibility". Gunther Krichbaum MP, the President of the European Committee of the German Parliament is quoted saying: "the Court will set new criteria", especially with regard to how the German Parliament and Government should act in the case of important EU decisions. This would especially relate to EU interior policy and enlargement negotiations. Legal experts of the factions say that it's possible that the judges will force future German government to obtain the consent of parliament before the start of future enlargement negotiations. Also if there is a change from unanimous to majority voting, the government would be forced to obtain the consent of the parliament.
DPA German Constitional Court announcement

Irwin Steltzer: Anglo-Saxon capitalism could be altered by the establishment of new pan-European regulatory bodies
In the Telegraph, Irwin Stelzer argues that despite claims by Gordon Brown to the contrary, the establishment of new pan-European regulatory bodies with "binding powers" will have a significant impact on the UK's financial system. He quotes Nicolas Sarkozy saying that the scope of the new agencies will increase and concludes, "History is on the French president's side - efforts to hold EU institutions to their original remits have uniformly failed."

FT Deutschland columnist Wolfgang Proissl writes that EU ministers have taken the wrong approach in forcing a system of financial oversight in tackling the financial crisis and that "pushing through EU financial oversight plans is the wrong priority". He adds that "the member states should not force financial oversight now, but allow the next commission to take the necessary steps".

In a letter to the Times, the Adam Smith Institute argues: "We are concerned that hasty agreement to EU proposals for financial services regulation has pre-empted the discussion of what would be best for the EU as a whole...moving the regulation of one of the largest and most sophisticated markets immediately to a body with executive responsibility for a miscellany of markets in different stages of development threatens to undermine EU financial services competitiveness in the world market." The group also writes, "The UK Government appears to have negotiated some minor opt-outs...but to claim credit for recovering £1 from £100 given away is perverse."
Telegraph: Stelzer Times: Letters Open Europe press release FT Deutschland

Sweden expresses similar concerns to UK over new EU hedge fund rules
UK Financial Services Minister Lord Myners has indicated that Sweden, which takes over the EU's rotating presidency on July 1, has agreed to work with it to fight a draft directive which would impose serious damage on the UK's hedge fund and private equity industries. Following a meeting with his Swedish counterpart, Mats Odell, Myners said, "We are pleased at the consensus that exists between our views and those of the Swedish presidency. We have agreed to work closely together in the months ahead to explain how hedge funds and private equity can add value whilst examining the concerns expressed by some member states." Odell added that, "It is important that we develop new regulations that prevent crises and at the same time safeguard London's continued position as the leading financial center in Europe."
FinAlternatives

Javier Solana: EU's foreign service will be as important as that of US and China
EUobserver reports that Javier Solana, the EU's foreign policy chief has outlined his ideas for the planned EU foreign service, if the Lisbon Treaty comes into force. A policy unit has existed since 1999, but the new External European Action Service would be separate and have its own budget. "The foreign service is contemplated in the treaty as an effort of the member states to create a global common diplomacy. I like to think that in time we will be one of the most important diplomacies in the world, along with US, China and other big players in the world," he said.

A former Belgian ambassador however highlighted the problems of this future external service, noting there is no "fully fledged common policy on all the international issues". Member states are also unlikely to abandon their bilateral agendas, he pointed out.

Solana added that the establishment of the service should be a gradual process, saying: "it won't be a Big Bang - it has to be well done".
EUobserver

UK fears that EU's new Industrial Emissions Directive will cause 'energy crunch' in 2015
Reuters reports that an Industrial Emissions Directive (IED) proposed by European environment ministers could be agreed as early as Thursday after progress was made in negotiations over industrial emissions. Industrial Emissions Directive (IED) weaves together seven existing air quality laws, including the Integrated Pollution Prevention and Control directive (IPPC) and the Large Combustion Plant Directive (LCPD).

According to a group of nine countries that are heavy users of coal - such as Britain, Poland, Bulgaria, Romania and Greece - the compromise deal is too costly and in some cases could harm energy security. Britain says the forced closure of plants will contribute to a gap in generating capacity around 2015.
Reuters

Vaclav Klaus: "I will certainly not rush" to sign the Lisbon Treaty
EUobserver writes that Czech President Vaclav Klaus has pledged to be the last in the EU to sign the Lisbon Treaty. "I will certainly not rush," Mr Klaus told Czech Radio. "The Irish have not voted again. Poland has not signed the Lisbon Treaty, and Germany has not signed the Lisbon Treaty. So I am not the last Mohican who is fighting against all," he said. The article notes that the longer the delay, the greater the chances are of a Conservative government in Britain - who have pledged to hold a referendum on the Treaty if it is not in force when they arrive in power.
EUobserver

Sarkozy announces cabinet reshuffle
Le Monde reports that French President Nicolas Sarkozy yesterday announced a significant cabinet reshuffle in which European Affairs Minister Bruno Le Maire was "promoted", becoming Agriculture Minister. Pierre Lellouche will become European Affairs Minister, but the Coulisses de Bruxelles blog notes that unlike his predecessor he does not speak German and it is uncertain how the Germans will respond to his "bulldozer" approach. Libération reports that Lellouche is known for being in favour of Turkey joining the EU.

Le Figaro reports that the reshuffle was larger than expected and includes eight new ministers, eight departures and nine ministers who are changing their portfolio. Former French President François Mitterand's nephew Frédéric Mitterand will become Culture Minister.
Le Figaro Les Echos Coulisses de Bruxelles Le Monde Liberation Le Point Liberation 2 Monde 2 Le Figaro 3

European Socialists formalise new alliance in the European Parliament
The socialist grouping in the European Parliament has established a new group containing the Italian Democratic Party. The group has changed its name from the European Socialist Party to the Progressive Alliance of Socialists and Democrats in Europe in order to facilitate the incorporation of the 21 Italian MEPs, who do not identify with socialism, in a move which reinforces their position as the second largest in parliament.

The Coulisses de Bruxelles blog notes that the French socialists tried to add the word "Italian" to "democrats" to distance themselves from the "new non-socialist perspective". Martin Schulz will remain leader of the grouping, having obtained 88% support from its members.

Meanwhile, Euractiv notes that Joseph Daul has been re-elected as leader of the centre-right EPP grouping.
European Voice El Mundo Coulisses de Bruxelles

Commission lays out privacy guidelines for social networking websites
The WSJ reports that EU officials are creating operating guidelines for a number of different social networking sites such as Facebook and MySpace to promote compliance with EU regulations on privacy laws governing users' personal information.
WSJ

Timothy Kirkhope MEP: The allegation that the new European Conservatives and Reformists group will be marginalised in the EP is nonsense
On Conservative Home, Timothy Kirkhope MEP, leader of the Conservatives in the European Parliament, writes about the new Conservative grouping. He argues that as the fourth largest group they will have considerable influence, not only in parliamentary positions, but also able to negotiate with the centre-right EPP on an issue-by-issue basis.
Conservative Home: Kirkhope

Spain, Belgium and Hungary to outline roadmap for their EU presidencies
El Mundo reports that the European Ministers from Spain, Belgium and Hungary have met in Madrid to outline plans to work together on a triple presidency (troika) between 1 January 2010 and 30 June 2011, when each country will preside over the EU for six months, if the Lisbon Treaty hasn't come into force. Spanish EU Minister López Garrido argued that "Europe must lead the fight against climate change", emphasising the EU's target of reducing CO2 emissions by 20 percent before 2020. He added that "it is a great opportunity to start a green economy, create more employment, new technologies and another way of living".
El Mundo Spanish Government Press Release El Mundo

The Times writes that the European Commission issued a waning to the UK Government concerning its level of debt, classing it alongside the Irish Republic and Latvia.
Times EUobserver

EU Commissioner for Regional Policy Danuta Hubner has today announced her resignation, in order to take up her mandate as a Member of the European Parliament.
EUobserver El Mundo

In Dutch magazine Elsevier, EU correspondent Carla Joosten praises the Dutch government for opposing further enlargement of the EU, citing Serbia as an example. The article notes that "the EU has been too relaxed in admitting new countries", singling out Romania and Bulgaria.Elsevier

The EU is close to a free-trade deal with South Korea after talks spanning more than two years. South Korea is the EU's largest trade partner.
IHT

The EU and the US have clashed with China over restrictions on the exports of raw materials used in many key industrial products and have filed a complaint with the World Trade Organization.
IHT CNN Bloomberg EUobserver

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.

Open Europe press summary: 23 June 2009

Europe

German Interior Minister reaffirms commitment to European army
In an interview with BBC Hard Talk, German Interior Minister Wolfgang Schäuble was asked about his previous comments in favour of a common European army. He replied saying: "We had polls in different European countries and the question was 'would you prefer a national army or a European army?' and the outcome was about two-thirds for a European army. In Germany it's quite clear, we don't want the use of humanitarian force unilaterally, only together with our partners."

When asked about potential British opposition to such an army, he said "We have to have respect for this, it's quite clear. But the United Kingdom, it's a pity but it's the truth, has never been in the lead of European integration. Germany has to be in the lead of European integration... the general direction is undisputed in Germany... No major party has ever tried to get support by a eurosceptic general direction."

On the question of Turkish accession to the European Union, he said "I am very interested in very close and trustful relations with Turkey, but I am totally convinced that we will fail in building a political, united Europe if we go far beyond the borders of the European continent....Anatolia, the border to Iraq, is not Europe."
BBC: Hard Talk

EU solvency rules could see pensions cut by up to 20%
The FT and the front page of the Express report that British workers could see pensions cut up to 20 percent under the EU's proposed Solvency II rules that govern insurance company capital requirements, and are set to be introduced in 2012. The rules would oblige insurers to be more aggressive in marking annuity liabilities to the market, increasing volatility on balance sheets and forcing them to raise the level of capital that they hold. Insurers are likely to pass on resulting added costs to pensioners, according to the FT.

The paper reports that the people who are likely to be most affected will be those with defined contribution pension schemes, in which money is used to buy an annuity on retirement, which pays out a fixed income. The paper quotes John Pollock, an Executive Director at Legal & General saying, "At the widest corporate spread levels during the credit crisis, the impact would have been much more than 20 per cent. Now that markets are somewhat better it has come down, but would still be between 10 and 20 per cent."

Lord Turner, head of the Financial Services Authority, said this month that the FSA had little power to act since the laws were passed by the European Parliament in April. "We have to be realistic about the extent to which the FSA ... can influence this debate," he told the Association of British Insurers. "The challenge for the industry is to get involved in the debate."
FT Express City AM City AM 2

Spanish Europe Minister: Lisbon Treaty "is like the new European Constitution"
El Mundo reports that in an interview with RNE, Spanish Europe Minister Diego López Garrido has warned that the EU risks falling into the "second or third division in the 21st century" if it cannot compete with other international powers such as the US, China and Russia. López Garrido added that the Lisbon Treaty is "like the new European Constitution and gives it new competencies, for example with regard to energy, which, although it seems a lie, until now was not a competency of the Union".
El Mundo

EU recruits French architect to turn Brussels into "a city of Europe"
The IHT reports that the EU has recruited a French architect, Christian de Portzamparc "to devise a comprehensive, 15-year plan" for Brussels "that would not only create new office space but also provide an architectural framework symbolizing the European Union." He said: "I thought of a big and beautiful idea, that took this historic axis, linking the old and the new. It would be a city of Europe, with lots of periods present. It's a formidable opportunity." He said: "I told them it should be like a downtown American city, with three skyscrapers, yes, but with open islands, keeping historic buildings, with pocket parks."
IHT

Conservatives' new centre-right grouping in the European Parliament provokes mixed reactions
There is widespread coverage of the Conservatives' announcement yesterday that they have successfully formed a new group in the European Parliament, after leaving the main centre-right EPP grouping, which includes the parties of French President Nicolas Sarkozy and German Chancellor Angela Merkel. The new centre-right group, the European Conservatives and Reformists Group, includes 55 MEPs from across eight member states. Timothy Kirkhope, leader of the Conservative MEPs, said that he expects the new group to be the fourth largest in the Parliament.

Shadow Foreign Secretary William Hague has said the Conservatives' new "anti federalist" bloc in the EP will be "good for European democracy". Mr Hague added, "We do work, on a regular basis, with President Sarkozy's party, with Chancellor Merkel's party - that doesn't mean we have to be in the same group in the European Parliament. These groups will often work together but clearly we differ with those parties about the extent of European integration."

The BBC quotes Foreign Secretary David Miliband saying the Conservatives "have dragged themselves from Euro-scepticism to Euro-extremism".

An FT leader describes the decision to leave the EPP as "A dismal error", which "weakens Britain's voice in Europe in several regards". The Independent says some of the new partners "oppose women's and gay rights".

On his Telegraph blog, Conservative MEP Daniel Hannan writes a mock apology from the press: "Now that they have unveiled their allies, we have to admit that they have brought together a coalition of moderate Centre-Right parties - in many cases parties of government - and that many of the MEPs who have joined them are former ministers."

On his blog, Iain Dale writes that "all groupings in the European Parliament contain one or two pretty strange characters". He notes that Labour's allies in the EP include many former communists and adds "before the Lib Dems say too much, consider some of the people who they sit with. They sit in the same group in the European Parliament as Latvia's First Party/Latvian Way. They have demonstrated against gay pride parades in Riga, attempted to ban discussion of gay issues in the media... and have used exceptionally violent language against homosexuality."
Guardian Labourlist: Honeyball Times FT FT: Leader Irish Times Guido Fawkes blog Telegraph: Hannan blog EurActiv BBC European Voice EUobserver Independent European Voice Iain Dale's Diary El Mundo Coulisses de Bruxelles

Cowen says he has now read the full text of Lisbon Treaty
The Irish Independent reports that Irish PM Brian Cowen has now read the Lisbon Treaty cover to cover. He came under fire last year when he admitted he had not read the document. Cowen said "I have read the treaty since last asked that question. I negotiated 90pc of it and saw about 16 different versions of it as it went through. So you can take it I know a fair bit about it."
The paper also reports that the main Irish unions have not embraced 'Lisbon II' despite Brian Cowen's assurances and 'guarantees'. Unions are reportedly angry that declarations on workers' rights will not be legally binding, and there is no guarantee that the collective bargaining clause will be given force of law.

Meanwhile, the Irish Times reports that the Irish Cabinet is expected to decide today to confirm 2 October as the date for the second Lisbon Treaty referendum.
Irish Independent Irish Independent: Sheahan Irish Independent 2 Irish Times

City of London Corporation wary over EU financial supervision proposals
The Telegraph reports that the City of London Corporation has criticised EU financial supervision proposals agreed at a summit last week that would see three European supervisory authorities set up to oversee banking, insurance and securities, and would have binding powers of mediation over national regulators. Stuart Fraser, Chairman of the Corporation's policy and resources committee, is quoted saying: "We will have to see what exactly is meant by these general terms and how the power is used."

Meanwhile, FT Deutschland columnist Lucas Zeise comments on the new EU plans for financial regulation, saying "the European attempts are grotesque. All we do is to create new committees, such as the new risk council, which essentially consists of the same people - national central bank governors - who have failed to foresee the current crisis".
FTD Telegraph Open Europe press release

Government's commitment to cutting red tape is questioned by business
The FT reports that two new committees to vet red tape which were announced by Business Secretary Lord Mandelson on 2 April have yet to be set up. The move was intended to assuage business anger at the decision to axe regulatory budgets, which would have curbed the amount of red tape each Whitehall department could introduce.
FT Open Europe research

Sarkozy "on a collision course with the European Central Bank and the German government"
The FT reports that President Sarkozy yesterday made a speech to both MPs and Senators in Versailles, saying "I will not have a policy of austerity," adding that "austerity policy has always failed." According to the FT, "Mr Sarkozy's pledge put him on a collision course with the European Central Bank and the German government, which have both urged fiscal restraint."
El Pais Le Monde Le Monde 2 Le Figaro ABC ABC2 Diario de Noticias Les Echos Le Figaro2 FTD FT

Hans-Peter Martin MEP: Members of European Parliament are a "detached elite"
FAZ has a review of the new book by Austrian MEP Hans-Peter Martin, titled "The Europe Trap. The End of Democracy and Welfare." In it, Martin focuses on the European Parliament, describing the members of the institution as a "detached elite", engaging in unrestrained pre-occupation with their daily allowances and cost reimbursements, instead of doing their real jobs. Die Europafalle

Swedish EU Presidency will not attempt to resolve Croatia-Slovenia border dispute
Agence Europe reports that the upcoming Swedish EU Presidency has said that it does not intend to launch any new initiatives aimed at resolving the border dispute between Croatia and Slovenia, which is currently stalling Croatia's EU accession bid. Swedish Foreign Minister Carl Bildt said, "This is a bilateral problem which has to be resolved by the two countries concerned." The article reports that Croatia's next accession negotiation meeting, scheduled for 26 June, has been put on hold indefinitely.
FT EurActiv EU Observer News Yahoo DW WSJ EuroNews

EU Agriculture Ministers open to sale of cloned animal products across Europe
Libération reports that EU Agriculture Ministers meeting in Luxembourg yesterday retained the possibility of allowing cloned animal products called "novel foods" to be sold in Europe.

Meanwhile, Handeslblatt reports that, amid protests by farmers at the summit, the European Commission has declared that it wants to investigate the milk market in the next few months, and try to find solutions to enable a balanced flow of money. Milk production prices have risen by 17 percent in the last year, while the price of milk on the market has decreased significantly. Liberation AFP Deutsche Welle Le Monde Tagesspiegel CSU Handelsblatt

Sweden sets out top priorities for the upcoming presidencyThe Swedish EU Minister Cecilia Malmström has said in Dagens Nyheter that climate change and the economic crisis will be central questions during the Swedish EU Presidency, with unemployment, migration, and asylum policy also featuring. Prime Minister Carl Bildt has also said that, "without Barroso we will have trouble. He has been successful in fighting protectionism as well as climate change".

Meanwhile, EUobserver reports that the Swedish Presidency is pushing for more transparency in the laws that govern migration between EU states.
Swedish Presidency DN Tagesspiegel EUobserver

Poland battles for more influence in Brussels Handelsblatt reports that Warsaw is seeking three of the top jobs in Europe, including the Council of Europe Secretary-General post for former Vice-President Wlodzimierz Cimoszewicz. Danzig Janusz Lewandowski hopes to become the new EU Internal Market Commissioner, and Jerzy Buzek is seeking the European Parliament Presidency. No link

Les Echos reports that yesterday Lithuania nominated Finance Minister Algirdas Gediminas Semeta to replace President-elect Dalia Grybauskaite as EU Budget Commissioner.
Les Echos

The FT Brussels blog argues that the 'saga' of Jose Manuel Barroso's reappointment as European Commission President "is less about Barroso's leadership qualities than it is about the European Parliament's desire to assert itself as one of the EU's most powerful institutions."
FT: Brussels blog

Private Eye's Brussels Sprouts column reports on the case of British student Andrew Symeou, who is fighting extradition to Greece, which it describes as a "test" for the use of the European Arrest Warrant to fast-track extradition without consideration or whether there is credible evidence.
No link

The latest annual study of tax trends across the EU by the European Commission has criticised Europe's high-taxation and high-welfare model for failing to protect people from the global economic slump and said that conflicting fiscal measures to tackle the crisis have not been the best response, reports the FT.
FT

Colm Keena in the Irish Times reports that Declan Ganley, founder of Libertas, may be hauled in front of the courts over questions of funding in last year's No campaign against the Lisbon Treaty.
Irish Times: Keena Irish Independent

In the Independent, David Prosser argues many investors are becoming concerned that if they do not respond adequately to public anger, regulators and governments will interfere. Prosser has warned that the European Commission has already advised shareholders to be more responsible with corporate governance. It is "unlikely to be the last word from our friends in Brussels".
Independent

In the Times, Bronwen Maddox writes that "the strength of response of European governments to the crisis in Tehran is a welcome -- if surprising -- step... the EU, which has been half-hearted over Iran's nuclear programme, has now taken a usefully outspoken role."
Times: Maddox FT: Peel European Voice EurActiv

Handelsblatt writes that Ireland is the worst performing member of the eurozone, with large budget deficits caused by the recession and heavy burdens from saving unstable banks. According to a study made by Standard and Poor's Ireland's deficit is expected to reach a record high 10% of GDP.
No link

The IHT reports that the EU has proposed a new architectural plan to expand its Brussels offices, "which it says will purge some of the urban sins it has committed over the years".
IHT

Dagens Nyheter reports that support for Sweden joining the Euro is at 42 percent, with opposition at 43 percent. DN

According to the FT, the ECB is to deliver a "stimulus by stealth" to the eurozone economy tomorrow, which could exceed the previous record of €348.6bn injected in a single ECB operation in December 2007.
FT

The FT reports that 'dark pools', a rapidly growing type of share trading facility, are to be reviewed by the European Commission amid signs that financial regulators are turning their attention to transparency in global equities markets.
FT

UK

Conservative John Bercow elected as new Commons Speaker
The Guardian reports Bercow has promised that "urgent questions must be more readily granted; scrutiny of budgets and legislation, both domestic and European, must be enhanced and, once and for all, ministers must be obliged to make key policy statements in the Commons".
Guardian Iain Dale's diary BBC FT Times Sun Express

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.

Open Europe press summary: 22 June 2009

Europe

Ireland to vote on exactly the same text of Lisbon Treaty second time around
Following the EU summit in Brussels last week, Open Europe has published a briefing on the 'guarantees' offered to Ireland in exchange for holding a second referendum on the Lisbon Treaty. Despite promises from the Irish government that they would not force people to vote on exactly the same text a second time around, the deal reached at the EU summit last week makes no change whatsoever to the text of the Treaty, meaning Irish voters will be voting on exactly the same text they rejected last year.

EU leaders agreed to attach a series of 'declarations' as a protocol to the Treaty after the second Irish referendum and once it is already in force, but the text of the conclusions of the summit notes that: "The Protocol will clarify but not change either the content or the application of the Treaty of Lisbon."

Czech Prime Minister Jan Fischer said: "It is an explanatory clarifying text which changes not a dot nor comma of the Lisbon Treaty." The Irish Times reports that former Green MEP Patricia McKenna said that the 'guarantees' given to Ireland were nothing more than a "ludicrous charade" and that the public had been given the false impression of legal certainty when this didn't exist.

According to Saturday's Irish Times, newly elected Socialist MEP Joe Higgins repeated at a press conference that the EU summit was an "elaborate charade" meant to distract attention from the key issues. "The debate on the Lisbon Treaty has yet to be held because we've been dealing with side issues." He said: "The reasons why people voted No to the treaty have not been addressed or rectified, and for that reason, once that message gets across to people, I don't think they are going to change their vote."

Saturday's Irish Independent reported that 2 October is the most likely date for a second referendum on the Lisbon Treaty in Ireland. The paper today reports on the launch of a new group, called 'Ireland for Europe', which will back the Yes campaign and will feature Irish celebrities, with Irish PM Brian Cowen vowing to personally take charge of the campaign for a Yes vote.
Open Europe briefing OE blog Irish Times Irish Times 2 ABC Irish Independent Irish Independent 2 Irish Independent: Leader BBC EU Referendum blog BBC: Mardell blog Telegraph: Hannan blog EurActiv Irish Times Irish Times 2 Irish Times 3 Monde Les Echos

Sarkozy contradicts Brown on agreement for more EU financial supervision;
Proposal marks "a complete sea-change in the Anglo-Saxon strategy"
Several papers report that French President Nicolas Sarkozy has contradicted Gordon Brown over plans agreed at Friday's EU summit to create new EU authorities with the power to overrule national regulators and supervisors. Following the summit, Brown claimed that the powers of the new bodies had been restrained and that he had ensured "that British taxpayers will be fully protected". However, Sarkozy said, "We have agreed a European system of supervision with binding powers...Mr Brown has assumed his responsibilities. It is a complete sea-change in the Anglo-Saxon strategy." According to the Telegraph, when asked if London had succeeded in its efforts to limit the transfer of powers to the EU, Sarkozy said, "This is a point of departure. In the future there will be an evolution. Institutions end up doing more than foreseen." The WSJ quotes Sarkozy saying, "We've created a new EU institution from scratch. ... We could have gone further, but I believe that it will widen [its powers] through experience and practice, the way it's always happened."

Saturday's Guardian noted that "non-British European sources" insisted that there was little opposition to the UK demands, rather some surprise that London had agreed so swiftly to the new proposal. "If you asked me a year ago if a UK prime minister would accept a common system and principles, no one would have believed that was possible," a senior EU official is quoted saying.

EU leaders also agreed to create a European Systemic Risk Board of central bankers and financial regulators to share information and monitor hazards that cut across borders and industries, with the UK opposing the President of the ECB chairing the risk board. The summit's conclusions say that "The members of the General Council of the ECB will elect the chair of the European Systemic Risk Board, meaning that eurozone members could outvote non-eurozone members." Les Echos quotes ECB President Jean-Claude Trichet saying "Of course the President of the ECB could be president of it but I am not going to pre-empt decisions which must be taken at the time of the election by members of the General Council of the ECB".

The Economist's Charlemagne blog argues, "I see it as tremendously lucky that the Czechs are in charge of the EU this week (and that the Swedes are next holders of the presidency, until the end of 2009). That makes it less likely that hasty regulations will be rushed through to impose martial law in the City of London, under the command of a four star French general (or whatever the exact plan of Nicolas Sarkozy currently is)."
Open Europe press release Economist: Charlemagne blog Times Telegraph Independent European Voice EurActiv Times Wall Street Journal Les Echos Les Echos Le Figaro

Conservatives form new European Parliament grouping
The Conservatives have announced the formation of their new grouping in the European Parliament. It consists of 55 MEPs from 8 countries including the Polish Law and Justice Party, the Czech Civic Democratic Party, the Belgian Lijst Dedecker party, the Finnish Keskusta party, the Hungarian Democratic Forum, the Latvian National Independence Movement and the Dutch Christian Union. MEPs in the grouping include Derk Jan Eppink, a former senior European Commission official and Lajos Bokros, a former Hungarian Finance Minister.

The new grouping is to be called the European Conservatives and Reformists, and all of the parties have signed up to the aims and values of the new group entitled the Prague Declaration. PA reports that the group is likely to be the fourth largest in the European Parliament and quotes Shadow Europe Minister Mark Francois saying, "We already have participants from eight countries but talks are still continuing and we believe that more will be attracted to join our ranks in the near future."
Conservative Home Independent

William Rees-Mogg: Will Labour sacrifice their best election chance for the Lisbon Treaty?
Writing in the Times, William Rees-Mogg argues that a General Election in the UK in the autumn would be the best chance for Labour to minimise an election defeat, but the ratification of the Lisbon Treaty is an obstacle to an early election. He adds that "Polls show that voters want an early election. They are likely to become more and more resentful if they have to wait until next May."

He also notes, "the Conservative Party, if it came to office before the Irish protocol was ratified, might call a referendum on that protocol", and concludes by asking, "Will Labour sacrifice their best election chance to protect the Lisbon treaty?"

Writing in the Sunday Telegraph, Conservative MEP Daniel Hannan argued that "No one can doubt that Mandelson kept Gordon Brown in office...Lord Mandelson is destroying Labour for the sake of the EU. He is determined to prop up Gordon Brown until after the Irish referendum on the Lisbon Treaty, whatever the cost to his party" and that, "his first allegiance, these days, is to Brussels."

The Weekend FT quoted a European diplomat saying, "People are learning to love Gordon Brown here. They want him to hang on as long as possible. You wouldn't have believed that a year ago."
Times: Rees-Mogg Sunday Telegraph: Hannan Mail: McKay Comment is Free: Preston Sunday Telegraph: Leader

Czech President concerned about Irish 'guarantees' on Lisbon Treaty
Reuters reports that Czech President Vaclav Klaus has said that the 'guarantees' given to Ireland on the Lisbon Treaty change the Treaty, and could open a debate on whether the Treaty should be re-ratified by EU member states. The FT Brussels blog notes that Czech PM Jan Fischer disagrees with Klaus, but he is "a non-party, caretaker premier who will not be in office a few months from now, because the Czech Republic is to hold a general election. Mr Klaus, by contrast, will still be up there in Prague Castle". Reuters FT Brussels blog AFP

Hedge funds vow to fight EU proposal for stricter regulation
The Sunday Times reported that a group of London's largest hedge funds, which between them manage £120 billion of assets, led by industry body the Alternative Investment Management Association (Aima), will this week meet to discuss the EU's draft directive aimed at curbing the activities of hedge funds and private equity.

Man Group, Brevan Howard, BlackRock, Marshall Wace, Lansdowne, CQS, DE Shaw Group, Fauchier and the Hedge Fund Standards Board (HFSB) will all be present, the article reports.

Brevan Howard, Europe's largest hedge fund with £14 billion of assets under management, said it would be forced to leave Britain if the directive was not changed. James Vernon, one of the firm's founding partners and chief operating officer, said: "The directive envisages setting leverage [borrowing] limits and that wouldn't just make it difficult for us to run our business, it would make it impossible. We are actively looking at non-EU locations. Singapore, Hong Kong, New York and the Middle East are all possibilities."
City AM Sunday Times

Christopher Booker: Glenys Kinnock's record as an MEP did not give us value for money
Writing in the Sunday Telegraph Christopher Booker looked at newly appointed Europe Minister Glenys Kinnock's record as an MEP. Citing Open Europe's calculations, he noted that that Mrs. Kinnock and her husband, Neil, were rewarded with more than £10 million in salaries, expenses and pension rights for their respective jobs in EU institutions. The Express also reports the figures.

In the article Booker called on Mrs Kinnock to ensure that justice is "very belatedly done" to thousands of Africans whose health and livelihood were "destroyed" by an EU-funded infrastructure project which she promised to "pursue" in her role on various European Parliament delegations to Africa.
Sunday Telegraph: Booker EU Referendum blog

EU libraries cost taxpayer £570 for each book loan
The Metro reports that libraries for EU staff are so rarely used that each visitor costs the taxpayer £580 and each loan costs £570. There are 52 libraries serving the EU institutions at a total cost of £16m. Shadow Europe Minister Mark Francois said, "With libraries in the UK closing for lack of funds it is astonishing that the EU is spending these large amounts of money on its own underused libraries".
Metro

Tony Bunyan: EU's new security policy threatens personal freedom
On her Mail blog, Mary Ellen Synon writes about the EU's 'Stockholm programme', which will give the EU new legal powers over cross border police co-operation, counter-terrorism, immigration and border controls if the Lisbon Treaty comes into force. The Irish Times quotes Statewatch Director Tony Bunyan saying that the proposals will "require unfettered powers to access and gather masses of personal data on the everyday life of everyone so that we can all be safe and secure from perceived 'threats'. But how are we to be safe from the State itself, from its uses and abuses of the data they hold on us?"
Mail: Synon blog Irish Times

David Cameron tells Conservatives not to listen to Clarke on Europe
The Sunday Telegraph looked at splits within the Conservative Party on Europe, reporting that David Cameron has had to reassure MPs that Ken Clarke has "not changed a word" of Conservative policy on the Lisbon Treaty, after Clarke said renegotiation might not be possible in a BBC interview.

Philip Davies, the Conservative MP for Shipley, said: "We need to bring powers back from Europe but I don't think it's clear at the moment how we are going to do it. What happens if the Irish vote 'yes', which they probably will? That is when William Hague's problems begin. We are pinning our hopes on it not being ratified but it looks as if it will be so we desperately need a plan B. I don't think there is one."
Sunday Telegraph

German Environment Minister receives EU farm subsidiesDie Welt reports that several German politicians receive Common Agricultural Policy subsidies, including the Environment Minister for Lower Saxony, Hans-Heinrich Sander. An online poll shows that 72 percent are in favour of scrapping such payments, with 27 percent in favour of better distribution of CAP funds.
Welt

EU seeks IMF help with Ukraine's gas bill
The European Commission has warned that funds must be found to pay for Ukrainian gas imports from Russia in order to avoid another energy crisis in Europe. José Manuel Barroso, European Commission President, has said that talks will be held next week to discuss emergency loans to help Ukraine pay for gas supplies from Russia. Last winter Russia cut off gas flowing to the rest of the EU as a result of a payment dispute with Ukraine. Barroso stated that: "We must not sleepwalk into another crisis" According to the FT it will be impossible for the EU to raise the requested £2.4bn to help buy Russian gas, although it is possible that international financial institutions could help. The WSJ reports that the International Monetary Fund has been asked to help supply the money.
WSJ European Voice FT

EPP gives support to former Polish PM over Berlusconi's candidate
The Coulisses de Bruxelles blog reports that the EPP has given its support to former Polish PM Jerzy Buzek as President of European Parliament. Jean Quatremer notes that neither the Germans nor the French wanted to give their support to Italian "ultra-catholic" candidate Mario Mauro. President Sarkozy added that the support of Buzek is "an excellent signal to Eastern European countries". The article notes that Buzek is "almost certain to occupy the seat for two and a half years".
Coulisses de Bruxelles

Charlemagne: European Parliament's campaign against nomination of Barroso is "nonsense"
The Economist's Charlemagne blog reports on Martin Schultz, leader of the Socialists in the European Parliament, who has criticised European leaders for trying to "fast-track" Jose Barroso's appointment as Commission President. The article notes "According to the current rule book of the EU, aka the Nice Treaty, it is for the national leaders to nominate a new president of the commission. Their nominee must then be approved by a simple majority of members voting in the European Parliament." However, Mr. Schultz wants Barroso to be nominated under the rules of the Lisbon Treaty, which says the Commission President should be chosen "taking into account" the results of European elections, and must be approved by an absolute majority of MEPs.

Charlemagne adds "I have no doubt that my children would like to "anticipate" Christmas and have their presents in October. But it ain't happening in my house, and it is not clear to me why it should happen in the European Parliament."
Coulisses de Bruxelles Economist: Charlemagne

Sir Michael Rake: UK needs to join the euro
In an interview with Handelsblatt, Sir Michael Rake, Chairman of BT, said that the UK risks a similar crisis to Iceland unless it joins the euro. He said, "I am very disappointed how politicians in the UK use the EU as a political football. I hope the Conservatives, after an election victory, will finally see what the EU has done for us, and for European economy, security and stability. The euro is strong, and the pound no longer is a global currency. If we do not watch out, we may end up in a similar crisis as Iceland".
Handelsblatt

In Saturday's Mail Peter Oborne reported on fears among some Conservatives that David Cameron has pledged to do nothing that would damage Tony Blair's chances of becoming EU President, in return for Blair's agreement not to speak out and join the Labour campaign to prevent Cameron getting into Downing Street.
Mail

In Les Echos, columnist Jean-Marc Vittori considers the UK's role in Europe, arguing "Great Britain remains well and truly an island. The British have proved this again spectacularly last Friday, by limiting the impact of a historic European agreement strengthening financial control". Vittori argues the British must decide "once and for all if they want to be in Europe or outside it".
Les Echos

Writing in the Mail on Sunday Peter Hitchens argued that "The time for [euro]scepticism is long past. What is there left to have doubts about? The thing is as bad as we feared. The time for secession has arrived."
Mail on Sunday: Hitchens

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.

Open Europe press summary: 19 June 2009

Europe

Irish PM says it is "necessary" for 'guarantees' on Lisbon Treaty to be in the form of a protocol
EU leaders are meeting today in Brussels to thrash out the details of the 'deal' to be offered to Ireland in return for a second referendum on the Lisbon Treaty.

Open Europe's debate at The Centre in Brussels yesterday on the nature of the 'guarantees' being discussed is reported in the Irish Independent and the Irish Times. At the debate, newly elected Irish MEP Joe Higgins said, "What we will witness at the European Council today is an elaborate charade. The so-called guarantees are simply designed to throw dust in the eyes of ordinary people in Ireland to give them the impression that something fundamental has been changed in the Lisbon Treaty compared to 12 months ago. It is exactly the same text, word by word, not even a comma has been changed".

Former Danish MEP Jens Peter Bonde, reacting from the audience, said "These declarations are politically binding, but they have no legal value. All of the Danish 'guarantees' have been breached, every single one of them, so they are not legally binding guarantees". Bruno Waterfield, Brussels correspondent for the Telegraph, said the 'guarantees' are "a kind of a cartoon depiction of what the leaders think the Irish referendum was about."

The Parliament reports that, following a debate on Irish radio RTE with Irish Europe Minister Dick Roche, Bonde said "he [Roche] misled the Irish public on the treaty in the debate with me... Contrary to what he said, the fact is that a treaty can only be changed by a new treaty agreed upon between all governments and then ratified by each member state. There is no other way. A decision at the summit can only become binding for the EU institutions through ratification. If the decision is turned into an agreement under international law it can bind governments politically... Dick Roche could take a fresh course in EU law at Trinity College and send his apologies instead of criticising me for being misleading".

The Irish Times reports that a deal on the 'guarantees' for Ireland are being held up by British objection to attaching any 'guarantees' as a protocol to the next EU treaty. According to PA, Czech Prime Minister Jan Fischer said today's final round of summit discussions on the issue were less about the text of the Irish guarantees but about "how to construe the word protocol".

In a letter published in the Irish Times, Irish PM Brian Cowen pleads with Gordon Brown to agree to a commitment to insert the 'guarantees' into EU law. He said, "in order to provide the maximum possible legal reassurance to the Irish people, I need to be able to come out of our meeting and state, without fear of contradiction, that the legal guarantees contained in the Decision will, in time, acquire full Treaty status by way of a Protocol...The sole purpose of this protocol will be to give Treaty force to the clarifications contained in the Decision, which are entirely in conformity with the Treaties. I want to emphasise sincerely, that this is necessary if I am to call, and win, a second referendum".

An article in the Irish Times reports that "European leaders will this morning give Ireland the guarantees on the Lisbon Treaty it has sought, crucially with a pledge to incorporate them in a future EU treaty."

The Telegraph reports that EU diplomats have told the paper that the arrangement Cowen is suggesting would require the opening of full-blown treaty negotiations next year, possibly allowing a new Conservative government to renegotiate the power balance between Britain and Brussels. It quotes an unnamed official saying, "Some people see this as a Pandora's box. It could be used by Conservatives to reopen the question of EU powers over [Britain's] social affairs."

According to the Belfast Telegraph, "The legal guarantees being provided to the Irish Government do not change the Lisbon Treaty, but will be incorporated in the next treaty agreed between EU leaders, which will probably be a document to approve Croatia's membership."

PA quotes Open Europe Director Lorraine Mullally saying, "Either the text of the Treaty is changed, meaning it needs re-ratification in every EU country - a huge problem for Mr Brown - or it stays the same, meaning Irish people will be made to vote on exactly the same text they rejected last year, which is precisely what the Irish government promised not to do...This is an extension of the dishonest fudge that saw EU leaders trying to pretend that the Lisbon Treaty was different from the Constitutional Treaty rejected by France and the Netherlands in 2005. It is EU politics at its absolute worst."
FT FT: Brussels blog Irish Times: Letter Irish Times Irish Times 2 Irish Independent Irish Independent 2 Guardian BBC EUobserver European Voice European Voice 2 Irish Times 3 Irish Independent 3 OE Blog Times Independent Telegraph AFP Le Monde El Mundo El Pais ORF Handelsblatt Belfast Telegraph Irish Independent 4

Brown blocks attempts to give EU regulators power over bank bailouts, concedes UK leadership role in proposed financial 'early warning system'
The WSJ reports that EU leaders have endorsed plans for new EU powers over financial supervision at this week's summit. The plans include the creation of a European System of Financial Supervisors (ESFS), which will set standards for national regulators to supervise banks, insurers and securities firms and a European Systemic Risk Council that will track the financial system for stability.

The Telegraph notes that the plans for a the ESFS would incorporate national bodies into a single EU authority, "endowed with legal personality", a prospect that has alarmed British officials. "There is the possibility of EU regulators overruling national regulators," said one.

The FT notes that the UK has made clear it will resist proposals to give EU supervisors the right to impose decisions on national supervisors if there are disagreements - for example, over how to bail out a stricken bank. Diplomats said the summit communiqué would say that EU-level decisions would "not impinge in any way on the fiscal responsibilities of the member states". According to the Times, Gordon Brown said, "The fiscal authority in the case of Britain is Britain".

The second point of contention is who will head the European Systemic Risk Council. The Commission's original proposal envisages the body being chaired by the President of the European Central Bank but Britain has argued that this risks sidelining member states outside of the eurozone. However, it appears Brown may have conceded on this point in order to secure assurances that the new EU regulators will not have the power to order national governments to bail out struggling banks and other bodies.

On his blog, the BBC's Europe Editor Mark Mardell sums up the negotiations as follows: "The word is that Brown has got what he wanted: words written into the agreement on a new financial watchdog that give an assurance it can't commit national governments to spend money. But he loses the row about who gets to chair another new body which acts as an early warning system: it is going to be the head of the ECB, which rules out a Brit."

The FT notes that the current discussions only relate to a Commission 'communication', commenting that "neither the British nor countries such as France that are heavily supportive of the supervision reforms appeared inclined to risk an open row exploding at the summit. Disputes are likely to be put off until the autumn, when formal legislation is expected to be proposed."
FT Irish Times Irish Times 2 Irish Independent Mail Guardian EU Referendum blog European Voice EUobserver BBC: Mardell blog Le Monde Le Monde Le Monde2 WSJ Times Independent Telegraph

EU leaders give unanimous support to Barroso for second five-year term
The Irish Times reports that Commission President Jose Manuel Barroso last night presented his programme for a second mandate before EU leaders, saying "I believe that in a time of crisis we need more than ever a strong EU and a strong European Commission. We need more not less Europe". Barroso succeeded in gaining the unanimous support of EU leaders, but he will still have to gain majority approval in the European Parliament. The article notes that this could provoke a procedural row, with the EPP wanting the vote to take place on 15 July and some MEPs wanting it deferred until the Lisbon Treaty has been ratified, which would set a higher threshold to win a majority.

El Mundo reports that Barroso may not have sufficient support in the European Parliament to win a majority (369 votes out of 736), with the Greens and some Socialists having voiced their opposition to his candidacy. However EurActiv reports that Barroso emphasised the cross-party support he received from EU leaders and the need "to think beyond political parties" and "be political but not partisan".
Irish Times EurActiv EurActiv 2 European Voice EUobserver Diario de Noticias El Mundo El Pais Le Monde Le Figaro Le Figaro2 Coulisses de Bruxelles El Mundo El País ABC Coulisses de Bruxelles Liberation

In Le Monde, former French President Valéry Giscard d'Estaing argues that the EU "can only assert itself by correcting the weakness of its executive". He argues that the Council and Commission Presidents and other senior EU leaders should not be "chosen by inner circle conversations" and instead that there should be a democratic process with clear policies proposed before the election.
Le Monde

In a letter to the FT Howard Flight, Chairman of fund management firm Flight & Partners, argues that the EU's proposals to regulate hedge funds are "hastily put together, ill thought out and high-cost proposals".
FT: Letters

Süddeutsche reports that an estimated one thousand milk producers protested in Brussels yesterday during the European Council meeting over falling milk prices in the EU.
Le Monde Euronews AFP

The Coulisses de Bruxelles blog reports the Czech Presidency has removed a poll on Commission President Barroso from its website. The survey asked "Should Jose Manuel Barroso be appointed President of the Commission again?" According to Jean Quatremer, there was a resounding 'No' vote and the Czechs felt it could cause diplomatic problems.
Coulisses de Bruxelles

Expansión reports that several groups, including the European Trade Union Confederation and BusinessEurope, yesterday agreed to a parental leave agreement which would increase leave from three to four months for each parent. The agreement will apply to all employees regardless of their type of contract and when parents return to work they will be able to request a change in working conditions. The agreement will now be examined by the Commission and must be approved by the Council.
Expansion Commission Press Release

EurActiv reports that Italian and Polish Prime Ministers yesterday failed to reach an agreement on their nomination for an EPP candidate for President of the European Parliament, with the decision being postponed until 7 July. Italy's candidate is current EP Vice-President Mario Mauro while Poland has chosen former Prime Minister Jerzy Buzek. Polish Prime Minister Donald Tusk said that "a vote is likely to be the solution".
EurActiv EUobserver

In a report on "the end of the Irish economic miracle", the FT Deutschland notes that the interest rate level set by the European Central Bank was too high for Ireland at the start of monetary union and has lead to the creation of speculatory bubbles. FTD

A headline in the Independent reads "UK still semi-detached from Europe", arguing that during the EU Summit, Gordon Brown "has appeared a lonely figure attempting to bat away demands for Europe-wide financial regulation that would badly impact on London". The article concludes "If we are to influence policy, we are going to have to throw ourselves into the debate as a committed member of the Union."
Independent: Leader

The Economist's Charlemagne column looks at growing unemployment in the EU and argues, "high unemployment scares politicians more than most other things".
Economist: Charlemagne

On Conservative Home, Jonathan Delaney, Professor at Montgomery College, Maryland, argues that the European Security & Defence Policy "is an unfolding disaster, an unnecessary vanity project as the EU seeks to acquire for itself the characteristics of statehood" and that British rejection of it could lead to fundamental reform of the EU.
Conservative Home

Le Figaro reports that Croatia's entry to the EU could be delayed until 2011, with negotiations expected to be completed by the end of this year.
No link

Le Figaro reports that the National Institute of Statistics and Economic Studies has declared France will come out of the recession before the end of 2009.
Le Figaro Le Monde

FT Deutschland reports that Iceland's wish to apply for membership by the end of July this year is an "ambitious and unrealistic" goal according to EU enlargement experts.
FTD
An analysis article in the FT looks at the importance of the EU's single market.
FT
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.

Southwest Asian War Zone (Escalation in the War in Afghanistan)

KABUL/BERLIN/WASHINGTON (Own report) - Western politicians are using martial announcements to prepare another escalation in the war in Afghanistan. "More victims on all sides" can be expected over the next few weeks at the Hindu Kush, declared NATO's General Secretary. Western combat units are currently being substantially increased. AWACS planes are being sent to optimize flight activity in the combat area. Tomorrow, Wednesday, the German cabinet will approve German participation on these planes. Last May the number of aerial attacks, infamous for their high number of civilian casualties, reached a new record high. According to reports, insurgents have even taken control of the German area of operations in the vicinity of Kunduz and are openly challenging the German occupation troops. Since May, serious
battles have been reported. In view of the extension of combat to Pakistan, military experts are referring to a "Southwest Asian warzone" and explicitly drawing parallels to the Vietnam War.

more
http://www.german-foreign-policy.com/en/fulltext/56256

Open Europe press summary: 18 June 2009

Europe

Lisbon Treaty 'guarantees' for Irish could take form of international agreement;
Czech President says any legal guarantees must be ratified by Czech Parliament
The Irish Independent reports that Ireland is likely to face opposition from the UK over the nature of the 'guarantees' offered to Ireland in exchange for a second referendum on the Lisbon Treaty at the EU Council meeting today and tomorrow. The British are reportedly demanding changes to the wording of the draft copy of the 'guarantees', with the UK Prime Minister's officials querying the legal status of the 'guarantees'.

The Irish Times reports that Irish PM Brian Cowen is seeking assurances from other EU member states that if the 'guarantees' take the form of a protocol, they will ratify the protocol through their parliaments when the next EU treaty is completed - probably in the form of an accession treaty.

One EU diplomat is quoted by EurActiv saying that the 'guarantees' will be "a fragile compromise between the bare minimum for Ireland and what is acceptable to other members".

Speaking on the BBC Today programme, Chairperson of the People's Movement Patricia McKenna said, "what they're talking about is so called legal guarantees, which is creative terminology to give people the impression that somehow legal certainty exists, when in actual fact, it does not exist and cannot exist unless you actually put it in black and white and ratify it in the same way as the treaty itself has been ratified. So the people of Ireland are being hoodwinked and I think brow-beaten into accepting what the EU heads of state want."

Also speaking to the programme, Irish Europe Minister Dick Roche said, "the guarantees have legal effect. They're based very much on the model of the 1992 Edinburgh European Council when the Danes had voted 'No' on Maastricht. The guarantees will have the weight of international law." The Irish Times quotes Brian Cowen saying that the 'guarantees', "will be legally binding and constitute an international agreement lodged with the United Nations".

The Czech President Vaclav Klaus, who is yet to sign the Treaty, has said that the Czech Parliament should ratify any fresh legal clauses attached to the Treaty, adding that any 'guarantees' would constitute a mini-treaty in themselves. Under Czech law, any international treaty must be ratified by the Czech Parliament and signed by the President, according to EUobserver.
Irish Independent Irish Independent 2 Mail: Synon blog BBC European Voice EurActiv EUobserver Today programme Irish Independent 3 Irish Times Irish Times 2 Irish Times 3 Volkskrant Figaro Monde Liberation lePoint Irish Times 4

UK Government says it will fight to ensure EU financial supervisors cannot overrule national regulators on bank bail-outs
The Guardian reports that today and tomorrow's EU summit will be dominated by proposals for a new European "financial architecture" in response to the financial crisis. The BBC notes that the UK Government is wary of the European Central Bank (ECB) chairing the proposed new European Systemic Risk Board (ESRB). Its job would be to identify any threats to financial stability across the EU. The FT notes that Gordon Brown may question whether the ECB should always provide the head of the risk-monitoring agency, as foreseen under current EU proposals, which could potentially favour the interests of eurozone member states.

There are also concerns about the proposed European System of Financial Supervisors, whose job would be to monitor individual financial firms in banking, insurance and securities by overseeing the monitoring roles of existing national supervisory bodies. The national bodies would become part of a single European supervisory authority "endowed with legal personality". The proposal leaves national regulators in charge of routine operations. But in the event of a dispute over a cross-border bank between two national authorities, for example, the European body would be empowered to mediate and, if need be, impose a settlement.

Britain last week won a concession from EU finance ministers stating that the new regime could not "impinge on national fiscal responsibilities of member states". This explicit pledge, however, is missing from the draft statement prepared for tomorrow's summit. The FT notes that Gordon Brown may seek to amend the summit's draft communiqué so it explicitly repeats that no EU-level authority can force a government to burden its taxpayers with the cost of a bank bail-out.

PA quotes a UK Government source saying, "This is extremely important because of the pre-eminence of City of London as a financial centre. We are very clear about this - you cannot separate responsibility for sound financial institutions from liability. In other words, we are not going to have the Commission taking decisions upon which we have to pick up the bill."

On his BBC blog, Mark Mardell writes "What I can't quite figure out at the moment is whether the objection is a winnable battle, to act as a smokescreen for going along with a lot of other stuff that people in the City won't like (hedge funds won't even be discussed at this summit), or if a British victory would be real, and so completely emasculate the Commission plan."

The Telegraph reports that a senior French official has said that Gordon Brown is almost powerless to stop tighter EU regulation. "There will be a pincer movement on Britain," said a key aide to President Nicolas Sarkozy, speaking at a pre-summit briefing.
WSJ Guardian Guardian 2 Telegraph EU Referendum blog BBC European Voice BBC: Mardell blog Times: Leader IHT FT

Hedge fund managers attack plans for EU regulation;
Poul Nyrup Rasmussen: "Read my lips: You're going to have regulation"
The Telegraph reports that Paul Marshall, co-founder of Marshall Wace, one of London's top hedge funds, has said the European Commission's draft directive on alternative investments has "the wrong priorities, wrong approach and was written by the wrong people". Mr Marshall argued that the European directive showed signs of political motivation, arguing that it is "damaging to our industry, damaging to our country and damaging to Europe".

The FT notes that the Commission's draft directive on alternative investment fund managers controversially proposes limits on fund leverage and would also require funds to be registered in EU countries in which they have investors.

Bloomberg quotes the leader of the European Socialists in the European Parliament, Poul Nyrup Rasmussen, saying, "Read my lips: You're going to have regulation." In the interview, he added, "What are you afraid of? You can earn your money in a well-regulated market."

The article notes that Internal Market Commissioner Charlie McCreevy eventually succumbed to calls for greater regulation from the European Parliament. "They obviously decided this is a big issue for them, and they're going to run with it," McCreevy said in an interview in Brussels. "That's politics."

A Telegraph leader argues there is a "risk of a European ambush of London's hedge fund industry - an easy target for punitive regulation, but one which played little part in the meltdown."
Bloomberg Telegraph FT Telegraph: Leader

At a meeting of the Public Bill Committee on Tuesday on MEPs' pay and allowances, Greg Hands MP quoted Open Europe and its findings on MEPs' pay and that the cost of the European Parliament is five times higher than the UK Parliament.
Hansard Open Europe press release OE blog

Member states expected to endorse a second Barroso term;
Cohn-Bendit: "should the Council approve Barroso, they are risking a negative vote from the parliament"
Diario de Noticias reports that today is "fundamental" for Jose Manuel Barroso's political career in Brussels, as EU leaders decide whether to support his second mandate as Commission President. European Voice reports that EU leaders will meet in Brussels to agree in principle to nominate Barroso for a second term at today and tomorrow's EU summit.

The FT and IHT report that Barroso is facing opposition to his re-election to the Commission presidency within the European Parliament, despite not having a challenger in the race. Dagens Nyheter quotes EU Commissioner Margot Wallström saying "I regret deeply that the socialist opposition in Europe has not been able to propose any candidate for Commission presidency".

Le Monde writes that Daniel Cohn-Bendit MEP "will do anything" to stop Jose Barroso being re-nominated as Commission President. He added that "should the Council approve Barroso, they are risking a negative vote from the parliament".

El País reports that EU leaders will only give their 'political' support to Barroso's second mandate, and that the method of nomination will depend on ratification of the Lisbon Treaty. Under the current Nice Treaty rules the European Parliament has far less influence over the Commission President's appointment.
Monde Toute l'Europe DN Figaro El Mundo El Mundo 2 Diario de Noticias Eurointelligence FTD FT Independent European Voice FT: Brussels blog European Voice 2 European Voice 3 IHT El Pais Figaro 2 Monde2

Global Pensions magazine reports on the legal challenge by 65 MEPs to the European Parliament's controversial second pension scheme, and quotes Open Europe's Sarah Gaskell saying "This pension scheme has already been shown to be an unacceptable waste of taxpayers' money and now some MEPs are trying to protect their golden payouts through a legal challenge shrouded in secrecy."
European Voice Global Pensions OE Blog Open Europe press release

Zapatero faces opposition to demands for protocol on additional Lisbon Treaty MEPS
El Mundo reports that one of Spanish Prime Minister José Luis Zapatero's priorities for the EU Council is gaining support for a protocol which would enable four additional Spanish MEPs to enter Parliament, and who would otherwise only enter Parliament if the Lisbon Treaty is ratified. The article notes that Spain faces opposition from numerous member states, with Czech Prime Minister Jan Fischer arguing the majority want to avoid "feeding the desire to reopen the ratification process".

Currently the additional MEPs will only have 'observer' status. The article notes "the danger is that the Lisbon Treaty MEPs in this limbo, well paid but with no practical value, will remain like this for years, if not the entire legislature".
Expansión El Mundo

Czech European Affairs Minister: Opposing Lisbon does not mean opposing the EU
In an interview with ABC, Czech Minister for European Affairs Stefan Füle says that "the Czech presidency has been successful", despite being faced with various challenges. When asked about the role of Czech President Václav Klaus, he responded "We have demonstrated that all this speculation about his negative impact on the EU presidency was wrong". Füle argued that "the fact that he has a personal vision about the Lisbon Treaty does not mean he is sceptic. It was him who brought the Czech Republic to the EU".
ABC

Conservatives deny backing Blair for EU President
The Mail reports that David Cameron and the Conservatives have dismissed reports that they support Tony Blair's candidacy to become the first President of the EU. Shadow Foreign Secretary William Hague said yesterday: 'We are not in favour of a President of the EU at all. We don't agree that position should come into existence.
Mail Mail: Glover Times: Parris Independent: Norman Express

The WSJ reports that the Latvian government is implementing severe austerity measures in order to avoid national default and secure international aid. The plans include 50% wage cuts for teachers, an expected 20% reduction in other government workers' salaries and a 10% decrease in pension payments.
WSJ

In the WSJ, Polish Foreign Minister Radoslaw Sikorski argues that "the faster we integrate the states of Eastern Europe and the South Caucasus with the EU, the more likely it will be that Russia itself adopts a pro-European orientation."
WSJ: Sikorski

The Parliament reports 'shamed' former British MEP Den Dover says he will not repay €590,000 he claimed in 'unjustified' parliamentary expenses. Dover, who did not stand at the recent European elections, said, "My case is still going through the courts so, no, I have not repaid this money."
The Parliament

Valentin Zahrnt: CAP reform for 2013 will create new winners and losers
Valentin Zahrnt of European Centre for International Political Economy said in a presentation that the 2013 CAP reform will probably see the UK, Finland, Sweden and the Baltic states as the big winners of subsidies, whereas the traditionally agricultural France, Germany, the Netherlands and Denmark will be the big losers.
No link

Libertas has said that it would be "virtually impossible" for it to play a role in the second referendum campaign on the Lisbon Treaty in Ireland.
Irish Times

UK

The Governor of the Bank of England put himself on a collision course with the Government and the City again last night by laying out plans for clamping down on banks. Times Calculated Risk City AM

The Telegraph reports the Public Administration Select Committee has concluded that Prime Ministers should appoint smaller governments, pass fewer new laws, and leave their ministers in their posts for longer.
Telegraph

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.

Open Europe press summary: 17 June 2009

Europe

EU leaders struggle to agree legal form of Ireland's Lisbon Treaty 'guarantees';
Critics argue that without ratification of a protocol the 'guarantees' will change "absolutely nothing" in EU treaties
The Irish Independent reports that negotiations on Irish 'guarantees' on the Lisbon Treaty are expected to go "to the wire" at tomorrow's EU summit. There is still no political agreement on the legal form the 'guarantees' will take with Britain, Poland and the Netherlands opposing any solution which will require ratifying a protocol with the 'guarantees' through their parliaments. "Thursday and Friday will be about concentrating on legal guarantees and making sure re-ratification is not needed by anyone, particularly the British, as they are paranoid about the Tories," a source said. The Irish Times describes the UK's concerns as the "main stumbling block" at the summit.

The alternative to ratifying a protocol is offering Ireland a "decision" issued by EU heads of state and government. Former Danish MEP Jens Peter Bonde said yesterday that a "decision" issued by EU leaders could not change anything in the EU treaties. "It is a creative way of giving people a feeling of legal certainty which does not and cannot exist since only properly ratified EU treaties, with their protocols, can offer binding legal guarantees in EU law."

Ireland Online reports that People's Movement Chairperson Patricia McKenna has accused the Irish government of engaging in a cynical exercise of "political manipulation" by promoting the concept of 'legally binding' Irish 'guarantees'. McKenna, who campaigned against ratification of the Lisbon Treaty in last year's referendum, said that "The so-called 'decision' changes absolutely nothing in the treaties. If it were to change even a single word, then it would have to go through new ratifications in all member states in order to be validated."

She added, "A 'decision' in the summit is not a legally binding document that requires ratification by member states. A common 'declaration' which may express the intentions of today's politicians accompanies it, but it does not stop future politicians from meddling with these 'assurances'". A leader in the Irish Times notes that "having made the commitment to get legal guarantees...it will be difficult [for the Irish government] to settle for less stringent undertakings in the form of political declarations or assurances."

The Irish Independent reports that it is unlikely that the summit will result in an official date being set for Ireland's second referendum on the Treaty, with a government spokesman saying that Irish PM Brian Cowen "probably won't announce a date".

The Irish Times notes that the European Trade Union Confederation (ETUC) has strongly criticised the draft 'guarantees' offered to Ireland on workers' rights because they do not go far enough.

The paper also notes that the Irish government has drafted a bill to be enacted before the next Lisbon referendum to ensure that Irish participation in European Defence Agency (EDA) operations is subject to parliamentary approval and will not undermine Ireland's traditional policy of military neutrality.
IOL Irish Independent Irish Times Irish Times 2 EurActiv Irish Times 3 Irish Times 4 Irish Times: Leader Reuters Irish Times: State of the Union blog

Ian Davidson MP: We need to "re-visit the question of a referendum on the EU constitution"
In a debate on European Affairs in the House of Commons yesterday, Shadow Foreign Secretary William Hague said that as a consequence of poor election results, the Government would have little influence when it came to discussing Europe's institutional future, and that "Seldom can a British Government have gone into European negotiations with a greater lack of moral or democratic authority as a result of these elections", according to PA.

Gisela Stuart, Labour MP for Birmingham Edgbaston, criticised the appointment of Glenys Kinnock as Europe Minister, saying "to have a situation where the
Europe Minister is not in the Commons, I think it is deeply, deeply unsatisfactory."

Labour MP for Glasgow South West Ian Davidson said that the results of the European elections were not solely due to the MPs' expenses scandal, adding "It's perfectly clear that being associated with ever-closer union is toxic and I would have thought the Government would want to take that into account. I don't think the Government's commitment to democratic renewal will be taken seriously until we re-visit the question of a referendum on the European constitution."
Hansard

Open Europe's findings that EU Commissioners leaving office this year can expect to receive £1 million each in pensions and pay-offs is covered in Polish daily Dziennik.
Dziennik Open Europe press release

House of Lords committee: EU proposals for financial regulations are worrying for UK national interest;
"The UK government have appeared to be behind the ball game at times"
The House of Lords EU Committee today published a report looking at the EU Commission's proposals for more regulation and supervision of the financial sector. The report criticises the Commission for failing to follow its own 'Better Regulation Principles' and prioritising rapid action over thorough consultation, most noticeably by not producing robust impact assessments and risk analyses. The Committee also warned that some of the proposed regulation may stifle the ability of European firms to compete globally.

In particular, the Committee criticised the Commission's proposal for stricter rules for hedge funds and private equity groups, arguing that "there is no need for 'rapid EU legislative action'" in this area. It also raised concerns over the proposal for the creation of three EU agencies with the power to overrule national regulators on decisions relating to banking, insurance and securities supervision. Labour peer Lord Kenneth Woolmer is quoted saying, "Financial services are a key, strategic industry for the UK. London operates in a global market place as well as in Europe. Many other EU member states do not share this perspective. The UK government must ensure these national interests are properly reflected in new regulations or in structural reforms."

He added, "There are some worrying signs. The timing and pace of Commission proposals appeared dictated by the timetable of the European Parliament elections and the twilight days of the old Commission. The content of some proposals, especially those on regulation of Alternative Investment Funds, was rushed with insufficient consultation and a weak assessment of likely impacts. The UK government have appeared to be behind the ball game at times. Getting things done right is now more important than getting things done fast."

Meanwhile EUobserver quotes EU Commission President Jose Manuel Barroso saying, "Given the urgency of the situation, the commission has proposed to go further than the Larosiere report by accelerating the implementation of the new architecture".

The Telegraph quotes Mark Hoban, Shadow City Minister saying, "It is the Treasury's job to make sure that new directives go through a proper process".

London Mayor Boris Johnson has backed the City's financial services sector saying, "It is crazy that we are so passively and supinely accepting EU directives on hedge funds, capital adequacy and other issues. We should be far more robust in defending the City of London", according to City AM.
House of Lords Open Europe research Bloomberg City AM Euractiv EUobserver Les Echos PA

David Cameron 'would not oppose' Blair becoming first EU President
The Times reports that David Cameron has told senior Conservatives that they should not oppose Tony Blair, should he become a candidate for EU President. The role will be created if the Lisbon Treaty is ratified by all member states and the President could be elected in December 2009 should the Irish vote 'Yes' in the second referendum.
Times El Mundo Conservative Home

Consultants to cover fall in junior doctors' hours under Working Time Directive
The Telegraph reports that hospital consultants will have to work more nights and weekends to support junior doctors, whose hours will be limited to 48 a week under the EU's Working Time Directive, due to come into force on 1 August.
Open Europe research

EU opens case against Germany over farm aid
EUobserver reports that the European Commission yesterday decided to take legal action against Germany, after the region of Bavaria refused to disclose the recipients of EU CAP subsidies. The infringement procedure can take several years, which can then be referred to the European Court of Justice, which could apply sanctions.

A leader in the FT Deutschland writes that the website which discloses the information "makes searching so complicated that systematic analyses are not possible". It adds that "it is well known that Brussels mainly gives to those who already have most. Direct payments are being attributed per hectare...The attempt to cover up information by Bavaria and the farmers' lobby is shameful."

DPA discloses a top 10 list of German CAP subsidy recipients, with sugar producer Südzucker AG Mannheim topping the list, having received €34 million in 2008.
EUobserver DPA: top 10 of German CAP subsidies recipients German Government publication of CAP subsidies recipients FTD Leader ARD Welt Commission Zeit

Cohn-Bendit calls for EP debate to block Barroso's reappointment;
New survey shows Barroso lacks public support
EurActiv reports that the leader of the Greens in the European Parliament, Daniel Cohn-Bendit, has called for a proper European Parliamentary debate on the re-appointment of José Manuel Barroso as Commission President ahead of an EU summit this week, saying "We must stop Barroso; there is no valid reason for making a formal decision to re-appoint him now". Bendit has argued that it is hypocritical of Barroso, who has championed the Lisbon Treaty, to insist that he is re-nominated under the rules of the Nice Treaty, which gives the EP less influence over his appointment. The Parliament reports that Cohn-Bendit has said there is a "sufficient majority" of MEPs to block José Manuel Barroso's re-election as Commission President.

Meanwhile The Parliament reports that the majority of the public does not support a second term for Barroso. A poll on the homepage of the Czech EU Presidency, says 73 percent of respondents believe he should not be reappointed while only 23 percent said he should.

Separate data published by the London School of Economics, puts Barroso fourth in a list of favoured candidates for the President of the EU Commission. One EU insider said, "This latest set of statistics seems to point to a gulf between what EU policymakers are saying about who should lead the commission and what citizens want."
EurActiv The Parliament Coulisses de Bruxelles Les Echos Figaro Prague Daily Monitor The Parliament 2 EUobserver El Mundo Publico

Swedish Foreign Minister says "door is open" to EU enlargement
Swedish Foreign Minister Carl Bildt has said that the issue of EU enlargement is still high on the agenda, adding "There have always been significant voices saying no more, let's deepen instead of widen, but at the end of the day when European democracies knock on the door of the union of European democracies, the door has been open".
Reuters FT

Conservatives disagree with Czech partners on other members of new alliance
The Times reports that the Conservatives have irritated their Czech partners over their new anti-federalist grouping in the European Parliament by refusing to allow more extreme parties to join the group. Czech ODS leader and former Prime Minister Mirek Topolánek wants as many parties to join the group as possible but David Cameron is reluctant to allow parties such as Italy's Northern League and the Danish People's Party (DPP) to join the alliance.
Times

EU to fine banks that engage in risky business
The Irish Independent reports that draft EU legislation to be published next week "will give regulators direct supervisory powers over remuneration for the first time by imposing a 'binding obligation'... that promote[s] sound risk management". A fine that would be imposed on banks that reward their employees for taking extra risks is included in the regulation proposal.
Irish Independent

Transparency International: Why do MEPs get €4000 a month for office expenses?
In an interview with Die Zeit, Transparency International Leader Jana Mittermeier asks how, in a time of modern communication and technology, €4000 a month for office expenses can be legitimate, saying "These types of office allowances are simply old-fashioned".
Zeit

Poland has revealed its candidate for its next EU Commissioner will be Janusz Lewandowski, a current MEP in the EPP grouping, according to EurActiv. He will replace Regional Policy Commissioner Danuta Hubner who was elected to the European Parliament last week.
EurActiv Polskie Radio

In a letter to the Guardian, Lib-Dem MEP Sarah Ludford argues "It is not acceptable to have EU-US deals on extradition, information collection and exchange, and border controls which are cooked up in secret and outwith the democratic control of the European and national parliaments."
Guardian: Letters

An analysis in FAZ by Klaus-Dieter Frankenberger notes that US President Obama is said to have told David Cameron that, if he becomes the next PM, then the quality of "our relationship" will depend on the quality of British engagement in the EU.FAZ

In a letter to the WSJ, Director of Business for New Europe Zaki Cooper argues that 'eurosceptic' MEPs are bad for business and that "In an age of economic interdependence, our parliamentarians need to engage with the process rather than lobby for retreat and withdrawal."
WSJ: Letters

The FT looks at the Czech's EU Presidency and writes, "the most important lesson from the Czech presidency is that it is fatal to let domestic politics contaminate a government's conduct of EU business."
FT

The Czech presidency has voiced its concern over irregularities in the Iranian national election and was supported by a number of other countries including the UK, France and Germany.
Eu2009 Toute l'Europe VOA

UK

The Independent reports that Chancellor Alistair Darling will give his annual Mansion House speech tonight, but a new ComRes survey for the paper of 203 business leaders reveals that only 14 percent have confidence in him. This is in contrast to 65 percent who had confidence in Ken Clarke, 62 percent for David Cameron and 61 percent for Vince Cable.
Independent

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.

Western Liberal (Plans to Overthrow the Zimbabwean President)

Newsletter 2009/06/15 - Western Liberal

HARARE/BERLIN (Own report) - Today's reception of Zimbabwean Prime Minister, Morgan Tsvangirai, is an element of the German government's participation in the western campaign to overthrow the Zimbabwean president. Since the 90s, Tsvangirai has been groomed by the West, particularly Germany, as the head of the opposition to drive President Mugabe from power. Berlin is accusing Mugabe of presenting himself as an "adversary of the western liberal order." His removal has been on the German foreign policy agenda for the past ten years. With Tsvangirai, after a long struggle, being named prime minister, second to his rival, Mugabe, in a transition government, last February, Berlin and Washington see new opportunities for driving Mugabe from office. Tsvangirai is currently visiting North America and Europe to reach the necessary agreements. Germany wants to support him through development aid financing, sent to Zimbabwe by way of NGOs, strengthening the position of Tsvangirai's followers.

more
http://www.german-foreign-policy.com/en/fulltext/56255

Open Europe press summary: 16 June 2009

On Thursday, Open Europe is holding a lunchtime debate on the Lisbon Treaty and the second Irish referendum, at The Centre in Brussels. Places are limited. If you would like to attend, please send an email to meet@thecentre.eu with 'Lisbon Treaty' in the subject field and stating clearly your name and organisation. For further information, please contact Pieter Cleppe at pieter@openeurope.org.uk or on 00 32 477 68 46 08.

Europe

UK and Netherlands want Irish 'guarantees' on Lisbon Treaty to be Council 'decisions', rather than protocols;
Irish government looks to bring second referendum forward to September
The Irish Times reports that Irish Foreign Minister Micheál Martin has said the Irish government is "quietly confident" that it will get the 'guarantees' it is seeking on the Lisbon Treaty. The government has sent a draft of the 'guarantees' to other EU leaders, and is seeking legally-binding guarantees on taxation, neutrality and ethical and social issues such as the right to life, family and education. It is also seeking a declaration on workers' rights and social policy. The paper publishes a draft text of the 'guarantees' it hopes other EU governments will agree to at the European Council meeting later this week.

However, EUobserver reports that there is continuing disagreement over the legal nature of the 'guarantees'. The 'guarantees' have to be ratified by all 27 member states to be legally binding, according to European Voice, but some member states are concerned that this would re-open domestic debates on the Treaty. One option that has been suggested is attaching the decisions as protocols to the next EU accession treaty, probably that of Croatia, which would have to be ratified by all 27 members.

The Irish Examiner reports that the UK and the Netherlands want to see the 'guarantees' remain as decisions of the Council of the EU. The Irish Independent quotes Czech Europe Minister Stefan Fule saying, "What was mentioned by many ministers today is that while we should approach this issue with creativity ... that should not mean we create problems in other member states." AFP quotes him saying: "Ireland wants an additional protocol to the Lisbon Treaty, which would have to be ratified by all 27 other member states."

Meanwhile the Irish Times reports that Irish PM Brian Cowen has been speaking to EU leaders in recent days with a view to bringing the second Irish referendum on the Treaty forward to the last week of September, or the first week of October. Cowen could announce the precise date of the second referendum this Friday, if there is agreement on the 'guarantees' at the Council meeting, according to the Irish Independent.

EurActiv reports on the effects of this on the formation of the new European Commission, which under current Nice Treaty rules would see the number of Commissioners reduced from 27. Germany has reportedly warned that if Lisbon is not in force by the time a new Commission is formed, Berlin would ask for a 12-member Commission, or "maximum 18", thus implying that "problem countries" would not be represented in the Commission, according to the article, and increasing pressure on the countries yet to ratify.
Irish Times European Voice Irish Times 2 Irish Independent Irish Examiner EUobserver Irish Independent 2 EurActiv Irish Times 3 AFP Belfast Telegraph FT AFP

MEPs launch legal bid to oppose reform of controversial second pension scheme
The Telegraph reports that dozens of MEPs, including Britons, are taking legal action to try to block reforms of their second pensions which are intended to cut the controversial scheme's cost to Europe's taxpayers. The European Parliament's Additional Voluntary Pension Scheme is a controversial perk that comes on top of national pensions already paid for their work as an MEP. MEPs pay £1,052 a month into the scheme. That amount is then doubled by a publicly funded payment of £2,104 from the EU taxpayer. MEPs therefore can expect an extra pension benefit, on top of generous national schemes, worth an annual £14,736 for every five year term of office.

The European Parliament's authorities decided in April on a number of emergency reforms to the extra pension to help cover a £100 million deficit in the fund following the financial crisis, including raising the age from which MEPs can benefit, from 60 to 63, as well as ending early retirement at 50 and lump sum payments. However, the paper has learned that up to 65 current and former MEPs, whose identities are secret and include members who stood down at European elections two weeks ago, have launched legal action to protect their "vested rights and legitimate expectations".

British Liberal Democrat MEP Chris Davies, who benefits from the scheme, said, "From a legal point of view they might have a case. But it is extremely unseemly that during an economic crisis, that has hit our voters hard, MEPs should be sticking out their begging bowls and paying out money to lawyers to defend a pension scheme that must be one of the most generous on earth."

The second pension scheme has been closed for new MEPs elected in June 2009 but will still apply for hundreds of current and past MEPs.
Telegraph Open Europe blog

City AM: Proposed EU financial regulation is "destructive and counter-productive"
Sarkozy: "It is the time to go as far as possible"
The Editor's letter in City AM looks at the EU's proposed directive for tougher regulation of hedge funds and accuses the EU of "gearing up for a destructive and counter-productive onslaught, no surprise given that it understands global finance even less than those who thought that sub-prime debt was as safe as gilts. The EU's early proposals fail to understand how hedge funds and other alternative investment funds operate; if Brussels gets its way, the City will face its very own Sarbanes-Oxley, a disastrous set of rules that miss the point, do nothing to reduce the risk of scandal and send hedge fund managers scuttling to Switzerland, Dubai and Singapore."

Meanwhile, the FT reports that a letter sent by some of the biggest Dutch and UK investors in hedge funds to EU Internal Markets Commissioner Charlie McCreevy has warned that the regulatory burden of the EU's proposed directive on alternative investment funds could "far outweigh any benefits" and "cannot be right". The article argues it is significant because it is the first time this group has spoken out in the debate over the directive.

During a speech at the International Labour Organisation (ILO) in Geneva yesterday, French President Nicolas Sarkozy said "in many fields it is necessary to go a lot further to reconstitute the financial system", emphasising the need to review "the prudential surveillance of banks, hedge fund regulation, accounting regulations, remuneration methods." Sarkozy added "the crisis gives us again the freedom to imagine. It is the time to go as far as possible."
FT EurActiv City AM Liberation ILO Speech

UK business groups welcome Conservatives' commitment to returning EU employment powers to UK
The FT reports that UK business groups yesterday welcomed Shadow Business Secretary Ken Clarke's announcement that the Conservatives will seek to return employment law powers from Brussels to the UK. Alistair Tebbit, Head of EU Policy at the Institute of Directors, said "We would be delighted if any British government was able to find a way to end the flow of employment legislation permanently. If this means scrapping the EU's employment powers, so be it." According to the article, the CBI also added that it would support "any reduction in the scope of European social legislation affecting the UK."

However, David Yeandle, Head of Employment Policy at the EEF expressed concern about the Conservatives' policy, saying "I'm not sure this [Tory approach] is terribly useful and it could be counter-productive...I have a horrible feeling the UK would pay a price, in terms of other member states demanding something in return."
FT

ECB warns that eurozone banks have only absorbed 60 percent of projected losses;
Pressure grows for public and transparent stress tests
The FT reports that eurozone banks face additional losses of more than $283bn (£173bn) this year and next, the European Central Bank has warned. The paper's Lex column notes that the ECB's latest six-monthly financial stability review suggests eurozone banks have absorbed barely 60 percent of losses estimated for 2007-2010. The Telegraph notes that the ECB's report is likely to put pressure on Germany to agree to public stress tests of its banks. France's Finance Minister, Christine Lagarde, favours transparent tests across the EU, but Berlin seems determined to buy time until after the elections in September.

Leading US economist Nouriel Roubini has criticised EU member states that have allocated "too little money" to help banks overcome the crisis in an interview with German daily Handelsblatt. He also criticised the ECB for underestimating "how much the crisis will damage the European economy".
Telegraph CityAM FT FT: Lex WSJ: Lannoo Handelsblatt

EU's structural funds have made little difference in the crisis, critics say
EUobserver looks at the role of the EU's structural funds - worth €347 billion over a seven year period - in the economic crisis, and notes that the funds have made little difference. The article quotes Monika Mura, an expert on regional policy from the University of Bristol, saying, "The reform of structural funds was done when there was no crisis and when they had to meet other priorities. Now with the crisis the priorities should shift more towards unemployment." The article also notes that the Court of Auditors said in its last report that the funds were marred by irregularities, estimating in its last report that "at least 11 percent of the total amount reimbursed (in 2007) should not have been reimbursed."
EUobserver Open Europe research Open Europe research 2

Gordon Brown touted as potential EU President;
Conservative MP: It would be "a slap in the face" to the British electorate
The Express reports that Gordon Brown is apparently now one of the frontrunners to be the first EU President, a position which will be created if the Lisbon Treaty is ratified. Conservative MP Philip Davies responded "It would be a complete slap in the face" and "completely wrong for Mr Brown, who has been rejected by people here, to now decide even more things that would affect our lives."

On the FT Brussels blog, Tony Barber notes that the suggestion came from a high ranking EU diplomat and writes "Of course, Brown may have other career plans, such as winning the next British general election and stabilising the British economy. But if for some unimaginable reason these plans didn't work out, might there be life after political death for him in Brussels?". Barber adds that neither Merkel nor Sarkozy are interested in the position and it is highly unlikely Berlusconi would be entrusted, leaving the UK and Brown or Blair.
Express FT: Brussels blog

Barroso may have to wait until July to be re-nominated
The WSJ notes that EU member states at the EU summit this week will "begin one of the world's most complex pieces of horse-trading", deciding which country gets which Commission position, with José Manuel Barroso remaining the favourite for the position as Commission President.

Le Monde reports that Jose Barroso's formal re-nomination bid for Commission President will not take place until mid-July. The European Council's goal is to consult with the newly elected European Parliament first, then make an informed decision. They will however give political backing to Barroso at the end of this week as the EU heads of state meet in Brussels.

Les Echos reports that Lithuanian President-elect Dalia Grybauskaite has said that the Lithuanian Finance Minister Algirdas Semeta could succeed her as Financial Programming and Budget Commissioner. Grybauskaite added that "his candidacy does not seem the best but he seems reasonable". She also said that Lithuania should retain the portfolio.
WSJ Le Monde ABC Les Echos

UK struggling to meet EU's renewable energy targets;
Government reveals UK is third from bottom in EU league table for renewables
The Guardian reports that a Parliamentary Answer has revealed that the UK is third from bottom in a league table of renewable energy across the EU. The article notes that the numbers reveal the scale of the challenge facing the UK as it attempts to meet a commitment to source 15 percent of its energy from renewable sources by 2020, part of binding EU climate targets.
Guardian Open Europe research

Merkel defends German state aid to companies
Handelsblatt reports that German Chancellor Angela Merkel has defended state measures in helping the German industrial sector regain its position on the global market, saying "I cannot close my eyes from what other countries are doing for jobs and the industry".
Handelsblatt 1 Handelsblatt 2

EU agrees to accept Guantanamo detainees
The EU and US have adopted a joint statement on the resettling of inmates from the Guantanamo Bay prison in Cuba. The IHT and the BBC report that there were initial difficulties in reaching the agreement because of the open borders between the 27 EU member states, but that Italy later agreed to accept at least 3 former prisoners, after six other EU states already said they were willing to accept former detainees.
WSJ Tribune EUobserver BBC European Voice Guardian El Pais Repubblica ABC

BNP 'optimistic' of forming new group in the European Parliament
BNP leader and newly elected MEP Nick Griffin met with other far-right parties in Brussels yesterday in the hope of forming a new group in the European Parliament. Creating a group would entitle the parties to greater funds for offices and staff.
Parliament

Approximately 1.9 million people lost their jobs in the EU during the first three months of this year, according to new figures released yesterday by Eurostat.
EUobserver IHT El Pais

Bruno Waterfield's Telegraph blog reports on the European Parliament's demand that former Conservative MEP Den Dover repay £538,290 in allowances, and criticises the European Parliament and the Conservatives for not making the figure public, which only came to light following a legal action brought by Mr. Dover.
Telegraph: Waterfield blog

Jean Quatremer: Who elects the 'ghost MEPs'?
Jean Quatremer writes on his Coulisses de Bruxelles blog that should the Lisbon Treaty pass, 12 countries will gain MEPs, and Germany is set to lose 4. However, he asks "who elects these new MEPs?" He notes that certain countries have decided to do nothing until the Irish referendum on the Treaty, while others have put together ad-hoc laws so that the votes from last month's European elections go to the next person on the list.
Coulisses de Bruxelles

Leader of the European Socialists Poul Nyrup Rasmussen writes in the Guardian that "it is important not to exaggerate reports of the demise of European socialism, and not to draw hasty conclusions from these [European elections]."
Guardian: Rasmussen

Agence Europe notes that despite several high-level meetings yesterday intended to seek a solution to the Croatia-Slovenia border dispute, which is holding up Croatia's EU accession bid, no "tangible progress" has been made.
No link

The German government will today publish a list of all German recipients of EU agricultural subsidies, after being forced to do so by judges. However, DPA reports that Bavaria is still refusing to publish the information.German Government CAP site DPA DPA 2

El Mundo reports that the EU has extended its anti-piracy mission in Somalia until 2010.
El Mundo

Alexander Lambsdoff argues in the IHT that the shift in election preferences from the left to the right and the gain for extremist parties will make the European Parliament a "stronger, more democratic body."
IHT

UK

An ICM poll for the Guardian puts the Conservatives ahead on 39 points, Labour second on 27, the Lib Dems on 18, and 'others' on 15 points.
Guardian Guardian 2

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.

Open Europe press summary: 15 June 2009

Europe

"Lord and Lady Expenses" received up to £8 million in EU taxpayers' money over 15 years
The front page of the Sunday Times reported on Open Europe's findings that the new Europe Minister and outgoing MEP Glenys Kinnock, and her husband, the former EU Commissioner Neil Kinnock have received up to £8m of taxpayers' money in pay and allowances from the EU since 1994. The article reported that the couple claimed £6m in staff and salary allowances and would have received a further £1.7m if they had claimed the maximum to which they were entitled in subsistence and travel allowances. The Kinnocks did not dispute the figures when showed them by the paper.

Open Europe also found that during their time in Brussels, both Kinnocks claimed a housing allowance on top of their incomes, even though they lived in the same home, and that this alone would have netted the couple almost £600,000 over 10 years.

The Mail on Sunday reported on Open Europe's findings that Glenys Kinnock can expect £67,835 a year from two pensions as an MEP and Neil Kinnock's pension as a former Commissioner is worth more than £80,000 a year. Tom McPhail, Head of Pensions Research at financial consultants Hargreaves Lansdown, calculated that these pensions would cost an ordinary taxpayer £4.4million to buy in cash. McPhail was quoted as saying "Wow. Not bad for a failed party leader and his wife. But people will find this scale of indulgence on the part of politicians nauseating, especially at a time when British workers are having their pensions cut."

Open Europe's Mats Persson was quoted by the Sunday Times saying, "The Kinnocks are Brussels' very own Lord and Lady Expenses. One has to question whether Lady Kinnock is a suitable minister for Europe. How can she distinguish between the interests of Britain and the interests of the institutions that she and her family have relied upon for their income for so long?" Mats also appeared on LBC Radio this morning, discussing the findings.

The findings were also reported in the Sunday Express, the News of the World, in today's Telegraph, the Sun, Mail, Express, United Press International, Wales Online and the Western Mail.
Sunday Times Sunday Times: Leader Sunday Express Mail on Sunday Wales Online Telegraph Sun United Press International Mail: Leader Mail Mail 2 Express

British officials concerned House of Commons will have to re-ratify Lisbon if Ireland gets 'substantial' concessions;
EU official: Gordon Brown will "look pretty stupid" if Ireland gets a better deal than Britain
Saturday's Telegraph reported that the House of Commons may be required to approve the Lisbon Treaty for a second time if the EU grants Ireland substantial concessions in an attempt to persuade its voters to back it in a referendum later this year.

The Irish government is seeking legally binding "protocols" to the Treaty to show voters it has won substantial changes since the rejection last June. But legally-binding opt-outs would have to be ratified by a separate parliamentary vote in Britain, either straight away or when Croatia joins the EU next year.
In both scenarios, British ministers are concerned that concessions given to the Irish because of a referendum rejection might reignite demands for Britain to get a better deal.

EU officials and diplomats are now said to be tying themselves in knots in an attempt to deliver a "safe package" that will not require another Commons vote. According to the paper, the British concerns forced the cancellation of a key meeting of EU ambassadors on Thursday and frantic rewriting of legal texts.

A senior British source is quoted saying: "We must avoid a situation where guarantees to Ireland use language or words that could open up the Treaty in the House of Commons." An EU official is quoted saying, "If Ireland which held a referendum gets a better deal than Britain it makes Gordon Brown look pretty stupid after he went the distance to avoid a referendum."

According to an EU official quoted by AFP, "it's not just the British government that has concerns." Reportedly, some countries are now suggesting that the Irish guarantees could be included in a simple "declaration" in the name of all 27 EU nations. Another diplomat evoked the possibility of a text similar to the 1992 Edinburgh Agreement which offered Denmark policy opt-outs and thus allowed it to adopt the Maastricht Treaty after an initial "no" vote. The Irish Times reports that European Commission Vice-President Margot Wallstrom has expressed confidence in solving the issue, saying: "I'm sure it will be resolved - we have to achieve two things - give the Irish the guarantees and the texts that they need and at the same time not reopen the treaty for reratification in other member states."Telegraph Euractiv Irish Times AFP

Ken Clarke: Conservatives will not reopen Lisbon Treaty negotiations if Ireland votes 'Yes' in second referendum
The FT reports that Ken Clarke, the Shadow Business Secretary, has admitted that a Conservative government would not try to renegotiate the EU's Lisbon Treaty if it were ratified in Ireland's second referendum, expected this autumn. Mr Clarke told the BBC's Politics Show: "If the Irish referendum endorses the treaty and ratification comes into effect, then our settled policy is quite clear that the treaty will not be reopened."

Conservative leader David Cameron has promised a referendum if the Treaty is not in force by the time the Conservatives come to power and said that if the Treaty is ratified by all EU member states he would "not let matters rest". When asked to clarify the latter comments, Clarke said that "It has also been said by David Cameron - and he means it - that it will not rest there, and he will want to start discussions on divisions of competence between national states and the centre of the EU."

Clarke added that a Conservative government would seek negotiations with the EU "about the return of some responsibilities, particularly in employment law to individual nation states. These will be sensible negotiations, and I actually don't think that the British will be alone. I think there are some other member states who think it is perfectly legitimate to start considering whether or not something like the opt-out to the old social chapter might not be reconsidered."

On the programme, Conservative MEP Daniel Hannan argued for the UK's relationship with the EU to be scaled back to an agreement based on the EU's 'four freedoms' of the free movement of, goods, people, services and capital but without political union.

Open Europe's Lorraine Mullally also appeared on the show to discuss the future of the Lisbon Treaty.
Sunday Telegraph: Booker FT Guardian EU Referendum blog BBC Sun Express Mirror Politics Show Mail Express: Leader Spectator: Coffee House blog

City Minister vows to fight "tooth and nail" over controversial EU hedge funds directive;
City Minister Lord Myners has sought to play down fears over the level of the UK Government's commitment to fighting a new EU proposal for tougher restrictions on hedge funds, amid industry concerns that the draft proposal poses a big threat to the competitiveness of the UK's financial sector and could lead hedge funds to leave the City, the Sunday Times reported. The Commission's proposal includes provisions for regulators to mandate the amount of leverage hedge funds are permitted, which is particularly damaging since most trading strategies depend on leverage. The proposal also wants to restrict hedge-fund managers' partners, such as prime brokers, to the same tax jurisdiction which will stop many investors coming to London, as most of them are registered off-shore.

Myners said, "We think there is a job of work to be done here and we will fight tooth and nail to make the necessary improvements," while adding, "It is wholly unhelpful of hedge funds -- which have made lots of money in London - to say at the first sign of regulation from Europe that they intend to up-sticks and go."

Myners also said he will meet Sweden's Deputy Finance Minister in 10 days to seek changes to the directive, as Sweden prepares to take over the EU chair from the Czech Republic on July 1 and is perceived to be more receptive than most other EU member states to the UK's concerns.

Meanwhile, City AM notes that a House of Lords committee will publish a report this week, warning that the Commission is being too hasty in its drive for more pan-European regulation and supervision and that the pace of reform risks causing lasting damage to the UK's financial services sector.
Sunday Times Independent on Sunday City AM City AM 2 Guardian

Internal report calls for tightening up conflicts of interest rules for EU Commissioners
The Telegraph reports that an internal European Parliament report seen by the paper and drawn up by external consultants has called for a tighter definition of "conflicts of interest" for EU Commissioners, and said that a failure to tighten up the rules could raise a "significant risk" of future scandals. Inge Graessle, a German Christian Democrat MEP who oversaw the inquiry, has accused the Commission of trying to delay the report's publication, saying "The commission is trying to push it back until after the appointment of a new commission [in the autumn]".

One major loophole identified by the Graessle Report is that Commissioners, including Commission President José Manuel Barroso, have not been required to disclose gifts, over the value of £132 in the form of hospitality, such as free holidays or stays at luxury villas or yachts. The issue was highlighted last summer when Lord Mandelson, while in the post of Trade Commissioner, stayed on board a luxury yacht in Corfu owned by Oleg Deripaska, according to the article. The report has criticised the Commission for having an ethics code that, as in the Mandelson case, "does not specify a course of action if a conflict of interest arises", unlike the tighter codes of conduct that apply to other, less senior, EU officials.
Telegraph

Jacques de Larosière talks about the need for further supervision of EU banks
In an interview with Le Figaro, Jacques de Larosière, the former director general of the IMF talks about the need for supervision of banks, the causes of the current crisis and the difficulties of imposing further regulation. He says that the "current financial crisis was not sudden, but the work of years of de-regulation". In the interview, he is quoted as saying that the imposition of a single European supervisor for financial regulation was not included in the report and that "it seemed more realistic and efficient to let national control organisations manage the day to day supervision". He adds that a supranational financial regulator is highly unlikely, as some states may be able to "benefit from public finances, which are, by definition national". He does however highlight the need for the authorities he proposed creating in February to have certain powers such as mediation between parties and the establishment of common techniques for said supervision.
Figaro Figaro 2

Irish opposition wants to lead Yes campaign in second referendum
Saturday's Irish Times reported that Irish opposition leader Enda Kenny has said his party, Fine Gael, will lead the Yes campaign in a second Lisbon referendum to prevent anti-Government sentiment from shooting the Treaty down. He said: "We need a proper campaign to inform the people. We need to set up a committee to properly scrutinise how the Government transposes EU directives. Red tape in Europe is interfering with people."
Irish Times

Poland could block deal on EU's climate change commitment to developing countries
Handelsblatt reports that talks on the EU's climate change policy will take place at this week's EU leaders' summit. The article notes that member states have yet to agree on proposals to help finance climate change abatement in developing countries or how to distribute the cost between member states. Poland will reportedly oppose a previously agreed decision that would see all member states donating 0.7 percent of their GDP to climate change aid.
No link

Graham Watson: "Barroso is a fine tactician, but he lacks courage and vision"
Le Monde reports on how José Manuel Barroso has been forced to adapt during his first mandate as President of the Commission, referring to him as a 'chameleon'. The article notes that Barroso started his mandate with a "very British, meaning very liberal agenda" and a focus on growth and employment, but events have forced him to focus on climate change, social issues and financial regulation.

Barroso has already gained widespread support for a second mandate but there is still strong opposition from some MEPs, including Daniel Cohn-Bendit who has called for an "anti-Barroso coalition".

Graham Watson, the Leader of ALDE, said "Barroso is a fine tactician, but he lacks courage and vision", adding that "he follows too closely behind the leaders of the main countries". In comparison with his predecessor Jacques Delors, Watson says "If Delors had adopted the same attitude we would never have the euro".
Le Monde

The front page of Saturday's Express reported on Lord Mandelson's comments that Britain should join the euro to help it beat the recession. It quoted Derek Scott, Open Europe's Deputy Chairman and former economic advisor to Tony Blair saying, "Eurozone membership is not the answer. We're seeing German output falling by six per cent and Spain's unemployment heading for 25 per cent - definitely not success stories."
Express

European Voice reports the Italian Democrats have announced that they will form an alliance with the Socialist group (PES) in the European Parliament. This will increase the group's members to 182 and it will be called the Alliance of Socialists and Democrats for Europe (ASDE).
European Voice

Hannan: If a party "is Euro-sceptic, then no amount of moderation or common sense can wash away the accusation of being 'far Right'".
On his Telegraph blog, MEP Daniel Hannan writes that Euro-sceptics are often accused of being far-right and for the conservatives to leave the EPP, they would be aligned with the neo-fascist party Italian Alleanza Nazionale. He says, "note the delicious double-standard [created by the left]. To sit with a party connected to Berlusconi makes the Tories extreme, but to sit with Mr Berlusconi's own party, which is the EPP, is fine."
Hannan adds "a party might be anti-gay, anti-gipsy or anti-American; but as long as it's pro-EU, it cannot by definition be extreme."

In a letter to Saturday's Guardian, Shadow Europe Minister Mark Francois responded to criticism of the Conservatives' potential allies in the European Parliament.
Guardian Telegraph: Hannan blog

El Mundo reports on the 18 'ghost' MEPS, which will only enter into the European Parliament if the Lisbon Treaty is ratified. Two of the new MEPs would be the youngest MEPs in Parliament, at just 21 and 26 years old. The Swedish 'ghost' MEP, Amelia Andersdotter, 21, said "The Lisbon Treaty isn't very popular with the European population. I'm not sure if it would be good for the EU if it is approved."
El Mundo

Commenting on the lowest turnout ever for the EU elections, European Communication Commissioner and Vice President Margot Wallstrom writes on her blog that "a hunt for someone to blame will also no doubt start and some will look to blame the Commission, which would be absurd. The main responsibility for persuading people to vote lies with the political parties. The Commission has displayed more modern thinking than many others in recent years by embracing Youtube, MTV, actively engaging womens organisations etc." Wallstrom blog

EU energy ministers meeting on Friday agreed to update rules on oil stocks that will require member states to ensure that at least one-third of their stocks are refined petroleum products rather than crude oil.
European Voice

Writing in the Independent on Sunday, Leader of the Green Party Caroline Lucas MEP argued that the Green Party had the most success in the European elections, increasing its vote by 44 percent, compared to 2004.
Independent on Sunday: Lucas

In the Weekend FT Tony Barber argued "Democracy in individual European countries seems strong enough, but at EU level it is clearly in trouble... if it is to succeed as a long-term project, it desperately needs to improve the quality of its democracy and reconnect European citizens to its mission and ideals."
FT

El Mundo reports that European foreign ministers from the 27 member states will today approve an agreement on receiving Guantanamo prisoners. The article notes that some member states including Austria and the Czech Republic have refused to accept prisoners.
El Mundo

Euractiv reports that the Telecoms package "remains the hostage of political row" as Telecoms ministers and the European Parliament fail to reach an agreement over internet users' rights.
Euractiv EIZ

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.

I love Germany!

I don't hate Germany!
I love the German people enough to help warn them to be very wary of any crisis that will tempt them to just blindly follow the leader about to emerge, who will be presented as Europe's savior from nuclear Islam, by none other than the pope and the Vatican's political puppets. Yes, beware the beast! The Bible exposes Europe will experience another wannabe divine emperor.
(read more ...)

European Leftists are dangerous!

Re: European Left More Dangerous for Jews than European Right

I wouldn't doubt that the dangerous Leftists in Europe are dominated by dangerous UnJews. Such Leftist Jews are a danger to themselves and others worldwide.

Liberal Jews are a disgrace and a humiliation

www.davidbenariel.org

Master Plan (German Gas Cooperation with Turkmenistan)

Newsletter 2009/06/08 - Master Plan

ASHGABAT/BERLIN (Own report) - Berlin is intensifying its pressure to obtain access to Turkmenistan's natural gas deposits. Following the conclusion of a basic agreement guaranteeing the RWE Corp., with headquarters in Essen, Germany, access to the Turkmen gas deposits,the German Ministry of Economics and various German companies have intensified over the past few weeks their negotiations with Ashgabat.

The objective is to obtain a privileged position for German companies helping Turkmenistan to develop its economy. Not only is this aimed at Germany becoming the recipient for a major portion of Turkmen raw materials, but also at strengthening German influence in the country. Germany's chances are good. A German company drew up the master plan for Turkmenistan's economic development. In addition, over the past few years, German companies have been able to make themselves a name,by accomplishing quite unusual services for the dictatorship inAshgabat. Human rights organizations raise strong criticism of the state, whose natural gas is to reduce Germany's dependence on Russian resources.

more

http://www.german-foreign-policy.com/en/fulltext/56254

Open Europe press summary: 12 June 2009

Europe

Irish Foreign Minister plays down difficulties in securing Lisbon Treaty 'guarantees';
Sarkozy says he'll visit Ireland to support 'Yes' campaign in second referendum
The Irish Times reports that Irish Foreign Minister Micheál Martin has played down possible difficulties with other EU member states in securing legally-binding 'guarantees' on the Lisbon Treaty for Ireland. Martin told a parliamentary committee that other member states were "supportive of the approach being taken - that is, to flesh out the substance of the guarantees promised to Ireland at the December European Council in relation to taxation, defence, the provisions of the Constitution on right to life, education and family and the solemn declaration on workers' rights". He added, "With the exception of taxation, our guarantees will be Ireland-specific."

The paper notes that any deal on the 'guarantees' is not likely to be finalised until the EU leaders summit next Thursday and Friday, with Martin suggesting "negotiations will be ongoing at both official and political level" throughout next week.

The Irish Independent notes that the UK Government is particularly concerned about the Treaty having to pass through the House of Commons again because of the legal 'guarantees'. "They want to be clear Lisbon doesn't have to be put through the Commons. They just don't want to be going back," a source said.

The Irish Times notes that EU Commission Vice-President Margot Wallstrom is confident that Ireland's demands for legally binding 'guarantees' on the Lisbon Treaty will not reopen debate about the Treaty in other member states. "I'm sure it will be resolved - we have to achieve two things - give the Irish the guarantees and the texts that they need and at the same time not reopen the treaty for re-ratification in other member states," she said. Wallstrom said she hadn't contemplated the consequences of Ireland rejecting the Lisbon Treaty for a second time but added, "Of course, we just feel it would be very, very unfortunate".

Meanwhile, the Irish Independent reports that French President Nicolas Sarkozy has offered to visit Ireland in support of the 'Yes' campaign in the second referendum on the Treaty. Mr Sarkozy said he and German Chancellor Angela Merkel were pledging their support to the Irish government. "Mrs Merkel and I will do everything we can to help the Irish make the choice for Lisbon. If it is of use, I would even be ready to travel to Ireland to support them," he said.
Irish Independent Irish Times Irish Times 2

Lord Mandelson: Joining the Euro is "obviously" an important objective
The Telegraph reports that while in Berlin, Lord Mandelson has insisted that Britain is committed to joining the Euro. Lord Mandelson said "It is perfectly clear that the euro has been a great success in anchoring its eurozone members during this financial crisis". When asked whether Britain would consider joining the Euro in the future, he responded, "Does it remain an important objective for Britain to find itself in the same currency as that single market in which it interacts? Obviously yes." However he did add that the decision must be taken "on the right terms in the right circumstances and conditions".

Meanwhile in Le Monde, Lord Mandelson has outlined what he thinks the priorities for the new Commission should be, while emphasising the success of the current Barroso Commission. Mandelson insisted that, "governments who criticise the Commission while it defends Europe's long term economic interests, are playing a dangerous game" and that the Commission "should adopt a tougher line concerning European states who do not apply single market laws".
Le Monde Telegraph

Sweden indicates it could back Britain against heavy handed EU financial services regulation
The Guardian reports that Mats Odell, Swedish Minister for Local Government and Financial Markets, has indicated that Sweden is ready to back Britain's fight with the EU against "heavy-handed" regulation of financial services when it takes up the EU Presidency next month. He is quoted saying, "I'm fully aware of the special position London has enjoyed and we want that to continue. We would like London to remain as the financial centre of Europe".

However, he also said that Britain will need to accept that hedge funds and private equity firms must be covered by a wider regulatory scheme.

Meanwhile the Irish Independent reports that Ireland's position on the EU's proposals for increased banking supervision remains unclear, after Finance Minister Brian Lenihan failed to attend the EU finance ministers' meeting this week.
Guardian Irish Independent

Brittan: The EU should halt further institutional deepening, and concentrate on making the existing EU work better
Samuel Brittan writing in the FT argues that, "Unfortunately, but perhaps inevitably, the institutions of the EU have become dedicated to the centralisation of more and more power at the EU level." He also looks at a book entitled "The European Institutions as an Interest Group" by German Economist Roland Vaubel, which argues that EU institutions such as the Commission, Parliament, Court and Council have a vested interest in centralised decisions, because it enhances their own power and prestige.

Brittan concludes, "The best practical proposal would be to call a halt to further institutional deepening and concentrate on making the existing EU work better. This is what Eurocrats say will happen after each new expansion of EU powers. It never does, of course."
FT: Brittan

An article on Czech newsite C