Europe
MEPs' vote to increase allowances will take EP budget to £1.3 billion
The front page of the Express reports that MEPs have voted to increase their allowances by £1,300 a month taking their total pay and expenses package to £450,000 a year. The article also reports that during a five-year term of the European Parliament, an MEP can clock-up £1,816,250 in expenses alone, on top of an annual basic salary of £83,282. MEPs from the biggest political groups argue that the extra funds are needed to help them deal with the new powers they have gained under the Lisbon Treaty, especially the need to hire expert staff.
The article also reports that the European Parliament has spent £2.3 million renovating its sports centre, £4.3 million on an "under-used visitor centre", and hundreds of thousands of pounds on 'gas-guzzling cars'. The Telegraph reports that the increase will cost European taxpayers an estimated extra £11.5m and increase the Parliament's budget to £1.3bn this year.
Open Europe Director Mats Persson is quoted in the Express saying, "MEPs already receive more than enough cash so there's no justification for this increase. If they want to be taken seriously by European taxpayers they have to cut back on their lavish habits, particularly as people continue to feel the pinch of the recession." Open Europe's Stephen Booth is quoted in the Telegraph and by The Parliament saying, "The EU institutions are so out of touch with ordinary citizens that the prevailing culture in Brussels seems to be 'who cares, it's only taxpayers' money'".
Express Express: Leader Telegraph The Parliament Times OE blog
Church of England bishops criticise EU for being a sphere for "elites"
Senior Church of England bishops have made an unprecedented attack on the European Union, calling it an undemocratic and secretive bureaucracy that fails to understand the challenges facing the continent, reports the Telegraph. The report, by the House of Bishops Europe Panel, was published yesterday in response to the EU's new 2020 strategy to replace the failed Lisbon Agenda and improve economic competitiveness.
The report says: "The European institutional public sphere is largely a public discourse for elites, it is a sphere in which citizens remain uninvolved. This has in turn contributed to the EU's democratic deficit. The solutions to today's challenges must come from society if they are to meet people's needs. Europe's citizens have to be placed more squarely at the centre of the agenda."
The report adds that with so little interest from voters, there must be plans to increase the "popular credibility of the European project. In this respect efforts must also be made to improving the EU's transparency - particularly its financial and accounting processes - and to reducing bureaucracy by taking subsidiarity seriously."
It adds, "The impact of an ageing population, difficulties related to migration and social inclusion and the need to deal with climate change and energy security will require a reorientation of Europe's economies and societies. All this coupled with the financial crisis and a deep recession has prompted warnings that Europe is facing a 'perfect storm' which can only be addressed through decisive and structural reforms."
Telegraph Conservative Home
58 think-tanks to receive €6.7 million in EU subsidies
The European Commission will this year pay €6.7 million in subsidies to 58 think-tanks and NGOs which have "an openly pro-integration position", reports EUobserver. The top 10 recipients include the European Movement International, €430,000 and Friends of Europe, €192,000. Only one recipient of funding is critical of the EU institutions - Statewatch, which gets 39% of its budget from the Commission.
Think-tanks including the European Policy Centre, the Centre for European Policy Studies (Ceps) and Notre Europe, who claim to have objectivity all receive EU funding. Notre Europe's Funding Officer Jennifer Hoff is quoted saying, "We are really trying to diversify our funding because we do get criticised for this."
Open Europe's Pieter Cleppe is quoted arguing: "They [the EU] are setting up their own committees claiming that these are independent think tanks when, in fact, they are cheerleaders for the EU. They do not question the EU to the extent they would if they were not being funded by it. That's the whole point of the grants."
EUobserver Open Europe research
Germany warns of "fatal" eurozone crisis;
EU sends contradictory messages as Barroso signals the bloc will not abandon Greece
The Telegraph reports that German Economy Minister Rainer Brüderle said yesterday there would be "no bail-outs" for struggling debtors and no move to a "European economic government". However he added, "A few European nations are exhibiting dangerous weaknesses. That could have fatal consequences for all countries in the eurozone". EurActiv notes that 'fatal' has more than one meaning in German and it was not immediately clear whether Brüderle was suggesting there was a threat to the eurozone itself. The interest-rate spread between Greek government bonds and German bonds stood at 405 basis points last night - the highest since the creation of the eurozone.
The FT reports that Greek PM George Papandreou repeated yesterday that he had not and would not seek financing from France, Germany or the EU, adding: "This is an attack on the eurozone by certain other interests, political or financial, and often countries are being used as the weak link, if you like, of the eurozone."
However, other EU leaders yesterday appeared to contradict the comments made by Brüderle and Papandreou. The FT quotes Commission President Jose Manuel Barroso saying, "It's quite clear that economic policies are not just a matter of national concern but European concern". Spanish PM José Luis Zapatero said, "The euro club is a strong club with strong ties and reciprocal support. Let no one be mistaken about that." The paper also cites 'high-level EU officials' saying Greece would, in the last resort, receive emergency support in an operation involving eurozone governments and the Commission.
The FT argues that if any eurozone country is unable to refinance its debt, bridge loans would be extended from other eurozone governments. The Economist's Charlemagne blog notes that 'senior figures' are talking about advancing Greece money from EU structural funds they were due to receive in the next few years, or about loans from government-owned savings institutions, "such as the various Caisses des Dépôts and National Savings funds in the EU."
The blog adds: "In Brussels policy circles, the question asked about a bailout of Greece used to be: are European Union governments willing to do this? Now, I can report, the question among top EU officials has changed to: how do we do this?..One figure said yesterday that heads of government could not wait 'forever' to take decision. That means a decision in the next few months, at most."
The FT reports that UK Chancellor Alistair Darling said that Britain would not be part of any effort to provide a bail-out to Greece, adding: "The euro area has primary responsibility for anything that might be happening. We are not involved in that...It is in the interests of the eurogroup they provide whatever assistance [is required]".
Meanwhile Jane Foley, Research Director at trading company Forex, argues on a Reuters blog: "While EMU offers Greece many political advantages, the question now must be can it afford to stay within EMU? It is no longer benefitting from German-like bond yields and it is suffering the pressure of what is still a very strong exchange rate...The fact is that EMU was always more about politics than economics and it is this reason which will force the grandfathers of EMU to protect their system and bail out Greece."
FT 2 FT FT: Tett FT: Leader FT: El-Erian Guardian BBC EurActiv Irish Times Mail Reuters: blog LeFigaro FT 3 FT 2 Telegraph Times Independent Independent: McRae IHT EUobserver IrishTimes Die Welt WSJ Le Monde EUobserver Economist: Charlemagne notebook Frankfurter Rundschau NY Times AFP FT FT Deutschland Eurointelligence Le Monde Figaro Le Figaro AFP Welt Welt 2 Reuters Italia Il Sole 24 Ore Tijd Knack Echos OE blog
New report slams use of biofuels for accelerating destruction of rainforests
The Times cites a new report by the Renewable Fuels Agency, which suggests that using biofuel in vehicles may be accelerating the destruction of rainforests and resulting in higher greenhouse gas emissions than burning pure petrol and diesel. Under the EU's Biofuels Directive, a growing proportion of biofuel must be added to diesel and petrol.
According to the report, companies have been exploiting a loophole to avoid reporting the origin of almost half the biofuel they supplied to filling stations last year. This has resulted in most companies buying palm oil to meet their obligations, which is one of the cheapest, but also potentially the most environmentally damaging fuels.
Times Open Europe research
Former EU Commissioner calls for greater tax co-ordination by member states
EUobserver reports that former EU Commissioner Mario Monti, who has been commissioned to write a study of the single market by Commission President Jose Manuel Barroso, has said that greater tax co-ordination between member states should be considered. He said, "No one wants to eradicate completely tax competition", as it "disciplines member states". He added, "Perhaps countries in central and eastern Europe might be able to consider a less aggressive tax policy if they at the same time could provide greater labour into the other member states".
EUobserver
City AM reports that incoming EU Internal Market Commissioner Michel Barnier has said he will travel to London after the General Election to meet with hedge fund managers and the alternative investment industry to discuss the EU's proposed Alternative Investment Fund Managers Directive.
City AM Open Europe research
Die Welt reports that the controversial SWIFT agreement between the EU and the US on sharing bank details may not pass through the European Parliament, which will hold a vote on the agreement on 10 February.
Die Welt
Commission sets its sights on Facebook in revamp of privacy rules
EUobserver reports that the EU is considering introducing new legislation to protect individuals' privacy. Incoming EU Commissioner for Fundamental Rights Vivian Reding said she will start this year with a revision of the 1995 Data Protection Directive, citing Facebook, Myspace and Twitter, regarding concerns about privacy and data issue.
EUobserver
European Voice reports that following Iceland's application to join the EU in July last year, the European Commission has announced that it will present its recommendations to member states on 24 February.
European Voice
The Irish Times reports that the Irish government is against the introduction of new measures to coordinate eurozone countries' economic policies at the EU level, declaring it wants to avoid "overly burdensome" European monitoring and prefers sticking to the current "open method".
Irish Times
An article in the Economist reports on Poland's good economic climate, noting that it was the only country in the EU to register economic growth last year, at 1.2%, and is now the sixth-biggest economy in Europe.
Economist
Axel Weber's bid to become the next head of the ECB has reportedly been dealt a severe blow by German MEP Werner Langen, who has expressed his support for the President of the Bank of Italy, Mario Draghi.
Monsters and Critics
A leader in the Economist argues that European governments must realise that many of the employment policies they espouse in the name of social cohesion "encourage decline, entrench divisions and thus threaten the harmony they pretend to nurture."
Economist: Leader
The Mail reports that the British Chambers of Commerce has written to Government ministers to protest that businesses struggling to survive can ill afford the major changes to employment law and taxes planned by the Government and the EU, which they argue will cost firms £25billion over the next four years.
Mail
Open Europe is an independent think tank campaigning for radical reform of the EU. For information on our research, events and other activities, please visit our website: openeurope.org.uk or call us on 0207 197 2333.
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