Obama snubs EU summit as Lisbon Treaty creates confusion over who would act as host
The White House has decided that President Barack Obama will not attend this year's annual EU-US summit to be held by the Spanish EU Presidency in Madrid. The WSJ notes that this year's summit will be the first since the Lisbon Treaty formally established the EU President Herman Van Rompuy and empowered the EU to be the principal negotiating body for the European states.
A US State Department official said that, as a result of the Treaty, there were still consultations with the EU over whether the summit was being hosted by Spanish Prime Minister José Luis RodrÃguez Zapatero, whose government heads the rotating EU Presidency, or EU Council President Herman Van Rompuy and European Commission President José Manuel Barroso. Another US official said that this confusion has fuelled US hesitance to commit to the meeting. "We don't even know if they're going to have one [a summit]," said the official. "We've told them, 'Figure it out and let us know.'"
Another US official is quoted saying, "Who attends from the US and at what point will depend on who's calling the meeting. There's a competition in Europe because you now have the standing EU architecture."
WSJ EUobserver
German Economy Minister: "German and French taxpayers can't pay for Greece"
In an interview with Greek paper Kathimerini yesterday, German Foreign Minister Guido Westerwelle said that "Athens has the full support of Germany and all other European Union member states on the issue". However, in an interview at the World Economic Forum in Davos at the weekend, German Economy Minister Rainer Brüderle said: "I don't think that a bailout is the right way because German and French taxpayers can't pay for Greece. Maybe they will give certain help, but first it's for the Greeks to solve their problems".
An Open Europe poll of German voters in June 2009 found that 70% were opposed to using taxpayer funds to bail-out countries in financial difficulties such as Ireland or Greece.
Saturday's Telegraph reported that EU Economic and Monetary Affairs Commissioner Joaquin Almunia said that no special plan had been produced by the Commission on a bail-out for Greece, adding: "There is a normal analytical document that we have written. We have no plan B - plan A is on the table." He went on to say, "No Greece will not default. In the euro area, the default does not exist".
The Weekend FT reported that the Commission is due to issue advice on how and at what speed Greece should reduce its deficit on Wednesday, with EU finance ministers due to give their verdict on February 15-16. The Sunday Times reported on leaked documents suggesting that the Commission will tell Greece to cut public sector wages, improve tax collection on the self-employed and possibly introduce a tax on luxury goods.
Writing in the WSJ Richard Barley looks at the options available if EU assistance were to be offered to Greece to avoid a default. He argues that the ECB is constrained by the EU Treaties, "Nor would it be easy to orchestrate a bailout under the auspices of the European Council or European Commission". He suggests that "short-term bilateral loans" are the most feasible solution.
Writing in the Telegraph Ambrose Evans-Pritchard argues "The EU elites have yet to acknowledge that Greece and much of Club Med need gifts - not loans - akin to transfers paid to East Germany after unification...Europe will have to embrace 'fiscal federalism' if it is to hold monetary union together. That is when we will probe the limits of EMU solidarity".
Writing in the FT Wolfgang Münchau argues: "Greece will probably require a bridging loan at some point. Portugal might too. But they are small countries. No matter what happens, it will not break the euro. The clear and present danger to the eurozone is Spain."
In an interview with Die Welt, historian Niall Ferguson says that Greece's "insane" claim to be able to reduce its deficit from 13% to 3% by the end of 2012 would make "blood flow through the streets of Athens". He added that the German political class was "so fixated on European integration" Greece would not be expelled from the eurozone.
Meanwhile, French website Telos-eu features a translation of Open Europe's blogpost looking at how the 'no bail-out' clause of the EU Treaties is superior to the article that allows the EU to grant financial assistance to countries in difficulty because of "exceptional occurrences beyond its control", which has been cited as granting the EU the legal power to rescue Greece if necessary.
Open Europe press release: German poll Telos-eu: Cleppe Open Europe blog Open Europe blog 2 Europe's World: Cleppe Council answer to EPQ Sinnott Declaration on article 100 Weekend FT Telegraph Weekend FT 2 Guardian: Leader Telegraph 2 Times Guardian Telegraph: Osborne Irish Times: Gillespie City AM FT FT 2 WSJ: Analysis Sunday Times Guardian 2 Guardian: Letters WSJ: Stelzer Die Welt EUobserver Telegraph: Evans-Pritchard FT: Münchau Die Welt 2 RP
Philip Johnston: A Conservative government must veto creation of a European Public Prosecutor
In the Telegraph, Philip Johnston argues that the Conservatives must "scupper plans for an EU legal system or live to regret it." He notes that under the Lisbon Treaty the EU has the power to create a European Public Prosecutor (EPP) and that "It would have investigative powers and be responsible for bringing cases before national courts. It would be able to 'request' detention without trial for up to six months, renewable for three months at a time, with no maximum limit, and underpinned by the European arrest warrant."
However, Johnston notes that the creation of an EPP "is one of the dwindling number of areas that requires a unanimous decision by the EU before it can proceed. In other words, we have a veto." He adds, "Here, then, is a great opportunity for an incoming Conservative government to take a stand on Europe that does not require a referendum, does not put at risk Britain's membership, does not re-open old Tory Euro-wounds and cannot be denounced as anti-European because the rules of the club allow for it to be taken."
Johnston concludes, "If our party leaders are at all honest about wanting to halt the leeching of UK sovereignty, here is somewhere they can take a stand."
Telegraph: Johnston
EP rapporteur: Many MEPs want the AIFM Directive to be tougher
EurActiv reports that French MEP Jean-Paul Gauzès, the European Parliament's rapporteur for the EU's AIFM Directive, has said: "Many want us to go further with the AIFM Directive". MEPs have suggested a record 1300 amendments to the Directive and when asked whether this shows resistance to the Directive in the European Parliament, Mr. Gauzès replied: "On the contrary, it shows that many want it to go further". On 22 February, Mr. Gauzès will present his report on the Directive to the European Parliament's Economic Affairs Committee, after which there will be a vote in April.
FT Adviser notes that investment trusts - which are currently included under the scope of the AIFM Directive - could be forced to liquidate and transfer investors to compliant structures in order to meet the directive's requirements if the proposal is introduced as currently drafted. A report commissioned by the FSA has estimated the cost of such restructuring to be approximately €152m, while costs associated with early termination of loan arrangements as a result of the restructuring are estimated to reach €560m.
EurActiv FT Adviser Open Europe research: AIFM Directive Open Europe research: Investment trusts
European Parliament obtains the power to seek resignation of individual Commissioners
EUobserver reports that the European Parliament has negotiated more powers in return for approving the new European Commission. The article notes that the agreement says that Commission President Barroso must "seriously consider" whether to ask an individual Commissioner to step down if the EP withdraws its confidence, and explain his reasoning before MEPs if he refuses to reject the Commissioner. At the moment, the European Parliament only has the power to reject the Commission as a whole. The draft agreement is due to be voted on 9 February.
The agreement also says that EP President Jerzy Buzek will be allowed to attend the weekly meeting of commissioners when major laws are being proposed. The twice monthly meeting of political group leaders in the EP will host Mr Barroso when legislative and budgetary matters are discussed and the monthly question-and-answer session between MEPs and Mr Barroso will be extended to include EU Foreign Minister Catherine Ashton and other Commissioners.
The EP has also been granted extra rights when it comes to international negotiations, particularly in the area of trade, where it will have better access to information and attendance rights for negotiations, although only with observer status for the head of the relevant delegation.
EUobserver EurActiv Volkskrant
German data protection official criticises EU-US 'Swift' deal
AFP reports that the German Federal Commissioner for Data Protection and Freedom of Information, Peter Schaar, has criticised the EU's 'Swift' deal on exchange of bank data with the US. He is quoted saying that the agreement is "neither fair nor democratic", adding that national parliaments as well as the European Parliament have been constantly ignored on the issue. Handelsblatt comments that "today is a black day for bank customers in Europe as their data will be shared from now on".
AFP Handelsblatt
EU regulations requiring landlords to re-fit homes for the disabled "totally overshoot the target"
FAZ reports on a new EU equality directive with stricter anti-discrimination regulation that would force millions of landlords to re-build accommodation in order to comply. Under the latest draft of the Directive, landlords will have to ensure their property provides a "reasonable" amount of space for people with disabilities, without prior alteration requests from tenants. The proposals have been heavily criticised, with the International Federation of Ownership suggesting that private individuals be exempt from the new regulations, and FDP MP Patrick Döring saying: "In this case one has to let the Commission know that well meant is not always well done, the tougher regulations...totally overshoot the target."
FAZ
EU recycling rules to increase cost of batteries
The Express reports that Britain is not ready for the new EU Batteries Directive, coming into force today, which "could lead to higher prices," according to an industry source. Under the new regulations, the percentage of batteries recycled in the UK, currently 3%, must rise to 45% by 2016. Manufacturers put the costs of this year's target at £3 million, rising to £13 million for the 2016 target.
Express
Trichet says that global economy faces "catastrophe" without global coordination of regulation
The Telegraph reports that European Central Bank President Jean-Claude Trichet has warned that the world economy could face "catastrophe" unless leaders across the globe find common ground in their plans to overhaul regulation of the financial sector. The Weekend FT reported that prominent bankers have come out in favour of a global bank wind-down fund and quoted Deutsche Bank Chief Executive Josef Ackermann saying: "To help solve the too-big-to-fail problem I'm advocating a European rescue and resolution fund for banks. Of course, the capital for this fund would have to come from banks to a large degree."
Telegraph Telegraph 2 Weekend FT BBC
In the Times, the former Defence and Foreign Secretary Sir Malcolm Rifkind argues that if Britain wants to remain a global military power, it's imperative to cut costs through a new entente cordiale with France. He writes that, "Radical thinking is required to ensure that our military capability is preserved and enhanced. Serious defence co-operation with France is part of the answer."
Times: Rifkind
The Sunday Express noted that EU-leaders are struggling to attract enough recruits to the EU's police force currently operating in Afghanistan because the mission is seen as too dangerous. The force costs taxpayers £40million a year, according to the article.
Sunday Express
Unemployment in the eurozone reached 10% in December, its highest level since the introduction of the single currency in 1999.
BBC
Saturday's press reported on personal papers released from Margaret Thatcher's time in office, which showed her response to finding out that some administrative staff in Brussels were paid almost six times as much as MPs. She wrote at the time, "They are paid too much - from our taxpayers' money! It looks like a real gravy train."
Telegraph Express
The Guardian reports that, after a 12 year legal battle and six rulings by the European Court of Justice on equal treatment, pressure from Europe Minister Chris Bryant and Shadow Foreign Secretary William Hague has meant that an Italian court has awarded British lecturers around £300,000 each in back wages plus interest in order to bring their earnings into line with their Italian equivalents.
Guardian
The European Commission confirmed on Friday that there will be no attempt to harmonise legislation concerning the presence of armed policemen on airplanes. A spokesman from DG Justice, Freedom and Security told the press that "there is no clear political will to make a further step towards proper EU legislation" on this specific issue.
El Mundo
David Cameron has been urged "we need you" and "Europe cannot be made without you" by the leader of France's UMP contingent within the European People's Party in the European Parliament, Jean-Francois Copé. The Conservatives pulled out of the group following last year's European elections.
Telegraph
In the WSJ, Polish Finance Minister Jacek Rostowski argues that the 'secret' of Poland's ability to come through the financial crisis unscathed was due its government's "profound belief in free market economics."
WSJ: Rostowski
The Irish Independent reports that the Irish government's National Asset Management Agency will not begin operating on its planned date of 12 February because it has not yet been approved by the European Commission.
Irish Independent City AM Sunday Business Post
UK
The Times reports that Ed Miliband, the Energy and Climate Change Secretary, has said that Britain's existing liberalised market regime is failing to deliver the investment needed to meet EU and UK targets to cut carbon emissions by 2020. He said: "We are going to need a more interventionist energy policy to deliver the low-carbon investment we need."
Times
A BPIX survey for the Mail on Sunday showed the Conservatives on 39 points, Labour on 30 and Liberal Democrats on 18 - the first time for more than two years that the Conservatives' rating has fallen below the crucial 40 per cent threshold in a BPIX poll.
Mail on Sunday Telegraph
World
The Guardian reports that, according to senior figures across the world involved in the negotiations, a global deal on climate change will be 'all but impossible in 2010'.
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.
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