US State Department cites Lisbon Treaty confusion for Obama absence from EU summit
There is continued widespread coverage of President Obama's decision not to attend the US-EU summit in Madrid in May, due to the confusion caused by the Lisbon Treaty's new institutional arrangements. The IHT reports that EU officials are now considering postponing the summit until the autumn, with President Obama set to come to Portugal in November for a NATO meeting, and the summit possibly to be rescheduled for then.
The paper also quotes the US State Department spokesman, P. J. Crowley, saying that the new institutional leadership changes in the EU after the ratification of the Lisbon Treaty might have been a factor: "Because of the changes involving the establishment of a EU council president and a European Commission president on top of the rotating EU presidency, I think it's taking some time to work through exactly how various high-level meetings will happen."
The Economist's Charlemagne blog cites the "nightmare" President Obama endured at the Prague summit last year, "when he found himself with strictly nothing of importance on the agenda, hosted by a Czech government that had just fallen. At that meeting, American officials later complained, 27 national leaders all waffled on at Mr Obama about exactly the same things, before fighting among themselves for photo opportunities with the new American president."
Hungarian newspaper Népszabadság has described the decision as a "wake-up call" to Europe from President Obama.
On his Coulisses de Bruxelles blog Jean Quatremer argues that Obama became "infuriated by this game of ping-pong", of the power struggle between the Spanish EU Presidency and permanent EU President Herman Van Rompuy.
Meanwhile, Le Figaro reports on the current EU visit of Mongolian President Tsakhia Elbegdorj, noting that he did not seem to understand which of the EU Presidents he was meeting with at one time. He is quoted saying: "I have just been received by the European Council President, I was received yesterday by the President of the European Parliament and after this meeting I will meet the President of the European Council ... Uh ..."
El Pais note that Obama's rejection of the summit shows "Europe losing weight in the world scene."
Open Europe blog IHT Guardian Guardian 2 LeFigaro FT Irish Independent Economist: Charlemagne notebook BBC EUobserver EurActiv European Voice Guardian: Bet-El Independent European Voice: Paper clip Népszabadság Independent: Brady Coulisses de Bruxelles LesEchos
EU renewable energy targets could see energy bills rise 60% by 2016
An article in the FT looks at the EU's commitments on producing renewable energy, noting that "this decade, European companies will have to invest about €1,000bn to meet government targets for developing renewable energy and cutting greenhouse gas emissions, while also replacing ageing infrastructure." The article adds, "The impact on energy bills could be large. Ofgem, the UK energy regulator, has estimated that by 2016 the average annual bill in Britain could have risen 60 per cent to £2,000."
FT Open Europe Research
MEPs seek to abolish UK's veto on new EU financial regulators
The Telegraph reports that MEPs are planning to scrap Britain's power to veto decisions by three new EU financial regulators to be created under a proposal currently being considered in Brussels, with binding powers for the national regulators.
Chancellor Alistair Darling thought he had secured a safeguard clause in a deal with fellow EU ministers late last year. The agreement stipulates that states can take their case to the European Council of European leaders where decisions are taken by unanimity, if they think that a ruling by a trio of EU supervisory authorities "impinges on in any way on the fiscal responsibilities of the member states."
However, MEPs have the power to co-decide with national governments on the legislation establishing the new authorities and Sven Giegold, a German Green MEP and the rapporteur in charge of markets regulation, said the veto on fiscal matters is so vague and sweeping that it enables states to block almost anything. "A European supervisory system in which each government could veto decisions would be rather silly. This veto - as defined - has to go," he said.
Open Europe Director Mats Persson is quoted saying, "If MEPs manage to win support for this plan, it will add further momentum to what is already a significant transfer of powers from national regulators to the EU level. These plans will leave the UK Government completely without safeguards against proposals which could hurt the City of London. Crucially, accountability will fall into a black hole between EU regulators and the states. If the crisis taught us anything, it is the importance of holding both regulators and finance ministers to account."
The European Parliament is drawing up its version for a planned 'First Reading' by early summer. If the text clashes with Mr Darling's Council version, the two sides must come to a final compromise.
Telegraph Open Europe Press Release
Commission backs Greece deficit plan, but warns it contains "risks"
The European Commission will today back Greece's plan to bring its budget deficit under control, which includes a freeze on public sector wages and plans to raise the retirement age, reports the FT. Commission President Barroso said, "The Commission has assessed the programme. The envisaged correction of the deficit is feasible but subject to risks". The Times notes that Greece's budget measures risk a backlash from unions who are already planning strikes.
The WSJ reports that Nobel Prize winner Joseph Stiglitz has said that the whole eurozone should share responsibility for the Greek situation, saying "There ought to be assistance through the ECB, through issuing euro bonds. Any small country in Europe can't do it on its own. If you are willing to lend to banks, why not lend to governments? Does Europe not have confidence in the governments that constitute it?"
The BBC notes that German Economist Otmar Issing has said that any financial rescue of Greece could destabilise the eurozone, adding: "These reforms which are needed will be blood and tears... but without that, Greece will never overcome the difficulties".
British Economist John Kay has an op-ed in Handelsblatt, arguing that "it's very hard for a country to leave to the Eurozone. But if there is political will, it might happen. Bureaucrats, lawyers and bankers would solve the technical difficulties. Central bankers cannot afford not to have an emergency plan for that. They should look again at what is in it."
Meanwhile, German magazine Focus lists three reasons why the eurozone won't break, arguing that nobody wants to leave the monetary union, it's not possible to throw countries out and the euro is still stable, despite deficit problems in several eurozone states.
WSJ Guardian Times FT: Roubini and Das FT City AM Irish Independent EurActiv European Voice FT BBC BBC: Hewitt blog Telegraph: Hannan blog BBC Telegraph Focus Handelsblatt: Kay
Government green paper to call for better defence coordination between UK and EU
The government will release a new green paper titled: "Adaptability and Partnership: Issues for the Strategic Defence Review" which calls for more military co-operation both between the UK and France, and between the UK and the EU. "The UK will greatly improve its influence if we and our European partners speak and act in concert...A robust EU role in crisis management will strengthen Nato. Playing a leading role at the heart of Europe will strengthen our relationship with the US" the green paper writes.
FT FT BBC
Government backs down over controversial Equality Bill amendments
The Independent reports that Harriet Harman appears to be backing down on her stance regarding controversial amendments to the Equality Bill. The Government's shift in position follows fierce opposition in the Lords last week and widespread debate regarding the Pope's declaration that the Bill violates "natural law". However, the dropping of the amendments, necessary in order to comply with EU law, means the UK could still face the prospect of legal action in the European Court of Justice.
Independent Independent Times El Pais
Handelsblatt: "Barroso to push for European economic governance"
Handelsblatt reports that Commission President Barroso is to push for more economic governance in Europe. He is cited saying there should be a threat to withdraw financial aid to economically underdeveloped regions when member states refuse necessary reforms, adding that payments from the EU structural funds should only be justified when the competitive ability of a region has effectively improved. His remarks come ahead of the EU emergency summit of 11 February, where EU leaders will discuss growth strategies.
EUobserver reports that only one third of EU member states have successfully implemented the EU Services Directive, despite the 28 December 2009 deadline. Greece, Ireland, Italy and Poland are among the countries that have failed to implement it.
EUobserver
The Express reports that the Conservatives will introduce competency tests for doctors coming to the UK from other EU member states and will ensure that doctors who have been struck off in other EU countries will not be allowed to work in the NHS.
Express
Jack Thurston: 2010 should be the year to take action to reform the CAP
Le Monde features several opinion pieces on the EU's Common Agricultural Policy and the future of its funding, which still accounts for 40% of the EU budget. Jack Thurston, the co-founder of farmsubsidy.org, argues that modern agriculture in Europe has harmed biodiversity, adding: "Farming should protect Europe's environmental resources, not exhaust them". He argues that "This year we must start taking action to build a better policy" after having "witnessed the sheer waste and inequity of a system that in 2008 paid €1,583,120 to Prince Hans Adam II of Liechtenstein and €253,987 to Prince Albert of Monaco."
Michial A Keyzer, Professor of Economics at the Centre for World Food Studies at the Vrije University, Amsterdam, argues the CAP "should logically evolve towards decentralisation, in order to make Brussels take care of nothing but ensuring loyal competition and fixing basic quality standards."
Le Monde: Bove Le Monde: Thurston Le Monde: Bureau Le Monde: Keyzer
The Times, asks whether new EU President Herman Van Rompuy sees the EU as a "gentleman's club", citing his decision to hold the 11 February EU summit in an old library with "cosy wood-panelled surroundings" as a "hark back to the days of informal European summits unencumbered by officials, minute-takers and the media."
Times EUobserver Telegraph
The Express reports that a study of milk and dairy products by health experts have found that more than a third breached EU health regulations, blaming lidless jugs and other containers. The paper suggests that it could lead to calls for a ban on the jugs.
Express
The Irish Sunday Tribune looked at the retirement of Irish EU Commissioner Charlie McCreevy, and cited Open Europe's findings that outgoing EU Commissioners will get a €378,288 golden pay-off in transition payments and can expect a pension of €51,068. A spokesman for the Commission confirmed the generous payout.
OE press release
Open Europe's Pieter Cleppe is quoted by Czech daily Lidove noviny, Czech newssite euro.cz and Austrian daily Wiener Zeitung, criticising the payment of €6.7 million in subsidies by the European Commission to a group of think-tanks and NGOs.
Wiener Zeitung Euro.cz EU Observer Open Europe research
On her Mail blog Mary Ellen Synon looks at the deal agreed between the European Parliament and Commission President Barroso last week, noting that there will be no "new legal powers" for the EP, because it is an informal transfer of power.
Mail: Synon blog
Le Monde quotes Benoît Potier, CEO of French company Air Liquide and French official spokesman of the European Round Table of Industrialists (ERT), arguing: "The European Commission is not really fighting for protecting and enhancing the competitiveness of European industries".
Le Monde
The Telegraph looks at the race between Axel Weber, the Bundesbank President, and Mario Draghi, the Bank of Italia Governor, to become the new European Central Bank President.
Telegraph
Euractiv reports that Polish Prime Minister Donald Tusk said he expected his government to approve an updated euro convergence plan today, with the aim of joining the single currency in 2015.
EurActiv
The FT reports that Spain's unemployment figures have topped 4million for the first time since the current system of records began in 1996.
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.
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