United States of Europe

Open Europe

2011-03-03T07:16:00.001-08:00

Europe

Admiral insurance group expects increased profits at expense of consumers after ECJ rulingThe Telegraph reports that insurance group Admiral has said that it expects profits to rise as a result of the ECJ’s ruling to enforce unisex pricing for insurance products. Henry Engelhardt, Chief Executive, told the Evening Standard,“As an insurer I'm pleased. We will raise rates for young women, we won't bring them down much for young men. That means more profit.”
Yesterday’s Times’ leader cited extensively from Open Europe’s briefing on the potential impact of the ruling and argued, “The EU already suffers from a democratic deficit. The common sense deficit now being displayed by its principal court will make the Union even more unpopular with citizens who would like to live, and drive, without excessive and expensive interference.” Open Europe’s calculation that the ruling is expected to cost young women drivers £4,300 by the time they are 26, continues to receive coverage and is cited by NPR, Business Week, Czech television CT24 and Belgian website Express.be.
Open Europe research Open Europe press release Times: Leader NPR Business Week CT24 Express Liberty Times Telegraph Evening Standard ABC Irish Independent: Devlin
MEPs seek another office allowance increase
European Voice reports that the European Parliament’s Committee on Budgets will today assess a new request to increase MEPs’ office allowance by a monthly €1,500, which would amount to a €13.2m transfer from the Parliament’s reserve budget. The monthly office allowance covers parliamentary assistance expenses, and was already increased by €1,500 last year following MEPs’ claims that they have a heavier workload under the Lisbon Treaty. The article notes that a study showed that a total of €153m was spent on assistants last year, meaning that, on average, MEPs spent a monthly €17,320 on staffing.
European Voice
EU increases aid to Libya to €10m;
Divisions between NATO members over no-fly zoneEU Commission President José Manuel Barroso yesterday announced that the EU will increase emergency aid for Libya from €3m to €10m; EU Aid Commissioner Kristalina Georgieva will oversee spending in the region. Barroso said that a further €25m will be made available to help Italy and Malta cope with a potential wave of immigration.
El Pais reports that France and Turkey are opposed to the creation of a no-fly zone over Libya, leaving a NATO led initiative unlikely for the moment. US Secretary of Defence Robert Gates yesterday warned the US Congress that establishing a no-flight zone over Libya would have to begin with an attack on the country’s air defences, reports IHT. Al Jazeera reports that the Arab League has said it may impose a "no fly" zone on Libya in co-ordination with the African Union if fighting continues, but it dismissed plans for any direct military intervention.
EUobserver EUobserver 2 BBC: Hewitt Irish Times EurActiv European Voice EUobserver: Waterfield WSJ Express Express 2 Express: O'Flynn El Pais El Mundo Evening Standard FT Brussels Blog Publico Al Jazeera IHT Times FT
Merkel to resist Irish bailout renegotiationFollowing a meeting with the Portuguese Prime Minister Jose Socrates, German Chancellor Angela Merkel insisted that it was not possible to "artificially lower" the interest rates charged to the Irish State on its bailout deal. “We can't get to a point where Ireland pays lower interest rates than Portugal," she added.
Writing in the FT today Guy Verhofstadt, Jacques Delors and Romano Prodi argue that the Franco-German pact would be ineffective due to its “one size fits all” policies and “peer pressure” approach. In an interview with the FT, Frank-Walter Steinmeier, parliamentary leader of the SPD, has criticised the ‘pact for competitiveness’ saying that “not a single element is appropriate to end this European crisis”. He argues that the focus should be on fiscal policy, such as bond buy backs and extending the bailout fund. Steinmeier also said his party would back the government if it attempted a pan-European solution to the crisis.
The Portuguese government held a successful sale of €1bn in treasury bills but at an interest rate of 4.06%. This follows estimates yesterday by Barclays Capital that the ECB bought €19.5bn of the €21.7bn Portuguese bonds sold last year.
The European Banking Authority announced yesterday that the next banking stress tests will include a baseline and an extremely negative macroeconomic situation as well as country-specific shocks on property prices, interest rates and government borrowing. Separately, EUobserver reports that the Danish Prime Minister, Lars Lokke Rasmussen, may push for a referendum on adopting the euro this summer.
FT FAZ Leader European Voice EUobserver FT Comment City AM Irish Times FT Alphaville Irish Independent Irish Independent: Leader Irish Times 2 Irish Independent: Creaton Irish Times 3 Irish Independent: Keenan FT 2 EUobserver 2 WSJ Handelsblatt DPA FAZ: Weber MNI Reuters Sueddeutsche Maerkische Allgemeine FT Deutschland Die Zeit Finanznachrichten.de
On his Telegraph blog, Nile Gardiner notes that in 2009 the EU subsidised several US anti-death penalty groups to the tune of €2.6m through the European Instrument for Democracy and Human Rights (EIDHR). “It is bad enough that Brussels consistently interferes with the internal affairs of EU member states, but it is surely a bridge too far when it tries to intervene in the affairs of one of the world’s greatest democracies that isn’t even part of the EU,” he argues.Telegraph: Gardiner
Seven year restriction on EU migrants’ welfare entitlements to endThe Times reports that there is “nervousness in Whitehall” about a possible rise in the UK’s benefits bill as restrictions on eligibility imposed on migrants from Central and Eastern Europe in 2004 are due to expire this year under EU law. It is estimated more than 100,000 migrants will be able to claim jobseeker’s allowance, housing and council tax benefit, potentially worth up to £250 a week per person. Reactions have been mixed, with employers’ organisations saying it would reduce the amount of red tape, while the group MigrationWatch warned of potential “benefit tourism”.
Times
Euractiv quotes Socialist MEP Stavros Lambrinidis warning that the EU-funded INDECT surveillance project could introduce “Big Brother into our lives.” Lambrinidis warned that the project aims to access "all existing feeds in cameras, in the Internet, in DNA databases and even on personal computers”. It has received nearly £10m in EU funding.Euractiv Wikinews Neoconopticon EP Written Declaration Open Europe research
EUobserver reports that yesterday the European Commission urged Croatia to “redouble” its efforts on fighting corruption, prosecuting war criminals and reforming its judicial system in order to meet a June deadline for completing EU entry negotiations.FT EUobserver Irish Times
MEPs push for a financial transaction taxIn a letter to the Guardian, six MEPs from the Alliance of Socialists and Democrats group propose the introduction of a tax on financial transactions, popularly referred to as the “Robin Hood tax”, claiming that for “too long the financial sector has been undertaxed… it is time for it to contribute its fair share”. They argue the EU ought to lead in this direction, even in the absence of a global agreement. Handelsblatt reports that Germany and Austria are looking to push ahead with plans for a financial transaction tax in all 17 eurozone member states.
Guardian: Letters Handelsblatt Reuters Italia
The Mail reports that the British Government has formally asked the European Court of Human Rights to review its controversial ruling on prisoners’ votes, arguing that one of the court’s main objections to Britain’s blanket ban - that Parliament had not considered the issue for more than a century - had now been addressed.
Mail
The Express is backing a campaign, also supported by some MPs, to either change the planned referendum on electoral reform, due to be held on 5 May, to one on the UK’s continued membership of the EU, or at least to also include the question.Express
EUobserver reports that yesterday thousands of HIV-positive demonstrators took to the streets in New Delhi over concerns that the free trade agreement being negotiated by India with the EU will end the production of affordable life-prolonging drugs.EUobserver
The IHT reports that Thomas de Maizière – who had been serving as Interior Minister since 2009 – has been appointed by German Chancellor Angela Merkel as the new German Defence Minister.IHT El Pais
AFP reports on a new poll conducted by the STEM Institute showing that the Czechs’ trust in the EU has fallen to an all-time-low of 46%. Only 39% of respondents said they were confident in the European Parliament.AFP
ABC reports that the EU yesterday launched its new satellite navigation system for civil aviation EGNOS, a precursor to Galileo.ABC

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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, follow us on twitter @OpenEurope or call us on +44 (0) 207 1972333 (London) and +32 (0) 2 5408625 (Brussels).

Reject the Welfare/Warfare State

2011-03-01T08:48:00.000-08:00

Congress Must Reject the Welfare/Warfare State

“During the past few weeks, Congress has been locked in a battle to pass a continuing resolution to fund government operations through September. Both supporters and opponents of the bill, HR 1, claim it is a serious attempt to reduce federal spending. However, an examination of the details of the bill call that claim into question. For one thing, the oft-cited assertion that HR 1 reduces spending by $99 billion is misleading. The $99 billion figure merely represents the amount that HR 1 reduces spending from the President’s proposed Fiscal Year 2011 budget - not reductions in actual spending. Trying to claim credit for a reduction in spending based on cuts in proposed spending is like claiming someone is following a diet because he had only five slices of pizza when he intended to have 10 slices!”

Click here to read the full article: http://bit.ly/eogX5l

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Open Europe

2011-03-01T08:41:00.000-08:00

Europe

Open Europe: EU ruling could increase insurance costs by £1bn from 2012As expected the ECJ ruled this morning to ban the use of gender in determining different risks for insurance products. The ruling will take effect on 21 December 2012, meaning insurers can no longer offer different products and prices to men and women based on their sex. In a briefing note published earlier in the week, Open Europe estimated that, on average, a 17 year old female driver will now have to pay an extra £4,300 in insurance premiums by the time she is 26 as a consequence of the ruling. The briefing also notes that the insurance industry in Britain may need to acquire an extra £1bn in capital to account for the increased uncertainties in the market. The ECJ’s ruling was based on the Lisbon Treaty’s Charter of Fundamental Rights, from which the UK was claimed to have secured an “opt-out” by the previous government.
Open Europe’s findings continue to receive widespread coverage, and are cited in today’s FT, De Telegraaf, on Conservative Home and on several consumer websites.In the Telegraph, Philip Johnston looks at the ruling and notes, “The same happened with the working time directive. Its scope has been extended eight times by the ECJ at a cost to the UK economy of between £3.4 billion and £3.9 billion a year, according to calculations made by the campaign group Open Europe.”
Open Europe’s Stephen Booth appeared on the BBC World Service, BBC Radio Sussex, ITV News and ITV News Online, arguing that the ruling pushes anti-discrimination legislation “beyond the realms of common sense” and that EU judges had “shot themselves in the foot” as the ruling will only anger ordinary citizens. Open Europe’s Pieter Cleppe also appeared on AP TV.
ECJ press release BBC: World Service ITV News online Independent: Prosser Telegraph De Telegraaf Open Europe press release Open Europe briefing Conservative Home FT BBC: Today Insurance Daily Moneywise Mirror Independent: Meade The Parliament
Ashton confirms sanctions on Libyan regime;
EU Commissioner: EU should have acted faster on LibyaEU Enlargement Commissioner Stefan Fuele yesterday made an unprecedented statement criticising Europe's approach to the crisis saying, “'Several of us would have liked to see sanctions decided during the council and applied even faster”, reports DPA. “Europe was not vocal enough in defending human rights and local democratic forces in the region", he added. European Council President Herman Van Rompuy may convene an extraordinary EU summit to discuss the crisis on Thursday.
Speaking after a UN council meeting yesterday, EU Foreign Minister Baroness Catherine Ashton confirmed that the EU will impose sanctions on Libya, including an arms embargo, an asset freeze and a travel ban on Libyan leader Col Muammar Gaddafi plus 25 family members and associates.
EUobserver reports that further measures are being weighed up by EU and US officials including the possible use of fighter jets, aircraft carriers in the Mediterranean, a no-fly zone and arming the opposition in Libya. In the Commons yesterday, David Cameron said, "We do not in any way rule out the use of military assets. In France, Prime Minister Francois Fillon confirmed that "all options are on the table". The US State Department suggested that a no-fly zone could be enforced through NATO as China and Russia could block the measure at the UN level.
In an interview with Il Messaggero, Italian Prime Minister Silvio Berlusconi argued that caution is needed on evaluating the possibility of Gaddafi’s exile. However, he said, “We are and will be perfectly in line with what the international community will decide.”
Guardian Express Mail Times Telegraph Evening Standard EUobserver EUobserver 2 EUobserver 3 AFP Euractiv.fr BBC: Hewitt BBC BBC: Robinson Straneuropa WSJ European Voice EurActiv Irish Times Open Europe blog Il Messaggero: Berlusconi EEAS press release Il Messaggero: Berlusconi BBC Today: Major DPA
Irish bail-out renegotiation to face resistance from eurozone partnersThe FT reports that, according to diplomats and EU officials, opposition to Ireland’s demands for renegotiation of the bail-out terms is growing among other eurozone countries, particularly Germany, Finland and the Netherlands. A diplomat is quoted saying: “The ink is hardly dry yet. Politically, it’s very difficult.” Meanwhile, Irish Labour leader Eamon Gilmore has been given the green light from his party to start coalition talks with Fine Gael.
An editorial in the FT notes: “Enda Kenny, Fine Gael’s leader and presumptive Taoiseach, claims he will renegotiate the [bail-out] deal. The likely outcome is a face-saving but useless compromise: in return for a lower interest rate, Mr. Kenny will stand by his predecessors’ suicidal conflation of bank and sovereign debt. The Irish tragedy will come full circle – but a new act will open in Europe’s drama.”
Irish Independent El Pais FT Editorial FT European Voice Irish Independent FAZ
Lukewarm response to revised eurozone ‘Competitiveness Pact’New proposals on joint economic governance put forward by European Commission President Jose Manuel Barroso and European Council chief Herman Van Rompuy on Monday received a lukewarm response from member states. A diplomat from one northern European country said: "There definitely wasn't a breakthrough, but it also wasn't a flop either". The fact that questions still remain, despite the pact being watered down significantly, increases fears that eurozone leaders may be unable to reach an agreement on economic and bailout package reforms by the 25 March deadline. Meanwhile, Swedish Prime Minister Fredrik Reinfeldt criticised the upcoming meeting of eurozone leaders, saying: "I think we should not divide the European Union, but stick at the 27 members being present when it comes to heads of state and government".
Portuguese Prime Minister Jose Socrates said yesterday that Portugal was ready to implement the necessary economic reforms but added: "I fear that if Europe does not take the necessary steps, all this effort may have been in vain". Earlier, Portuguese Finance Minister Fernando Teixeira dos Santos argued: "There is a deficiency in the construction of the euro. There is one leg missing and that is the budgetary or fiscal element. We have a single currency but we do not have a budgetary or fiscal instrument at a European level."
El País reports that credit rating agency Moody’s has warned that Spain’s savings banks, the cajas, will need to raise €50bn to meet the stricter capital requirements recently established by the Spanish government, rather than the government’s own estimation of €20bn.
WSJ Reuters WSJ 2 Le figaro El Pais EUobserver Le Figaro Les Echos FT Money Supply Blog Reuters EurActiv FD WSJ 3 Irish Independent Reuters WSJ Opinion Irish Independent Bloomberg Coulisses de Bruxelles Le Monde Les Echos: Delpla WSJ 4 El País 2 Expansión Le Monde
EU ministers will today meet in Brussels to discuss possible ways to end EU rules on throwing back dead fish that exceed EU quotas. The Guardian reports that Scottish Fisheries Minister Richard Lochhead will not be able to attend today’s meeting, despite Scotland being particularly affected by the EU’s Common Fisheries Policy, since EU Fisheries Commissioner Maria Damanaki has insisted that only one minister per member state could attend. Guardian EUobserver BBC Today: Damanaki
FT Deutschland: EU Directive on online trading will be “a feast for litigious lawyers”FT Deutschland reports that the European Parliament is to vote next week on legislation which would force online retailers to offer their goods in all EU states. According to legal experts, this would mean companies having to adapt their terms and conditions to comply with the consumer protection laws of 27 countries, and run the risk of being sued in any one of them; posing a significant business risk to smaller operators in particular.
FT Deutschland FT Deutschland2 Internetworld.de
EU to consider legislation to get more women into the boardroomIn an op-ed in the IHT, European Parliament president Jerzy Buzek and EU justice commissioner Viviane Reding argue that not enough progress has been made in Europe towards ensuring greater female participation on company boards. They say that if businesses fail to address this situation voluntarily, the EU will introduce “legally binding quotas that can be enforced …starting in 2012”.
IHT: Buzek and Reding
The IHT notes the disparity in pay-scales and other benefits between public officials at the EU level, compared with national officials. The paper cites the case of Andris Piebalgs, Latvia’s member of the European Commission, who earns €248,006 a year, around seven times more than the man who appointed him, Latvia’s Prime Minister Valdis Dombrovskis, who earns €32,640 a year.IHT
Writing in the Telegraph, Programme Director at the Institute of Economic Affairs, Professor Philip Booth, criticises the concept of “fair trade”, and the activities of the Fairtrade Foundation. He argues it is “risible” that the EU is helping to finance the foundation's campaigning, “given how the EU undermines farmers in poor countries through agricultural protectionism”.Telegraph: Booth
Euractiv reports that the Macedonian government has said that it is ready to agree to change the country’s name, but that the decision would have to be approved by citizens in a referendum. The long-standing dispute with Greece over Macedonia’s name has so far been a major obstacle to the country’s EU accession.EurActiv
EUobserver reports that EU energy ministers faced criticism yesterday over a decision not to set out tougher energy efficiency targets for 2020, as EU Climate Commissioner Connie Hedegaard told the European Parliament that a pledge to cut carbon emissions by 20% over the next decade lacked ambition.EUobserver EurActiv
EUobserver reports that MEPs are concerned that EU officials, in particular in Europol, have reneged on their agreement with the European Parliament to provide data on how the EU-US data sharing deal – Swift – is being implemented. EUobserver

New on the Open Europe Blog:

One Challenge down, many to go
Open Europe Blog

Open Europe press summary: February 28 2011

2011-02-28T08:30:00.000-08:00

Europe

New Open Europe briefing: ECJ ruling could cost young women drivers an extra £4,300The European Court of Justice could tomorrow rule to scrap the insurance industry’s opt-out from the EU’s 2004 Gender Directive, which will mean insurers can no longer offer different products and prices to men and women based on their sex. The ECJ’s Advocate General has argued in a preliminary opinion in favour of removing the opt-out, since it constitutes gender-based discrimination. The Court’s verdict follows the Advocate General’s opinion in 80% of cases.
Open Europe has published a new briefing showing that, should the ECJ decide to ban the insurance industry from charging different prices, it could, on average, cost a 17 year old female driver an extra £4,300 by the age of 26. In a worst case scenario, this cost could rise to £9,000. The ruling could also see the insurance industry needing to raise an extra £936m in capital due to increased uncertainty in the market.
Open Europe’s findings were featured on the front page of the Metro and the Express, and were cited in the Telegraph, the Sun, the Mirror, the Mail, the Press and Journal, and several regional papers. Open Europe Research Director Stephen Booth is quoted saying: “That these judges would magically rule that young women should pay more in the name of equality is simply perverse. Instead of making prices fairer between men and women, this ruling would increase costs for consumers taken as a whole.”
Meanwhile, the Guardian and the Telegraph also note that the ECJ ruling could cost male pensioners £340 per year due to a decrease in annuity rates.
Open Europe briefing Open Europe press release Mirror Sun Sun: Leader Mail Sun Metro Express Guardian Telegraph PA Press and Journal MSN Money Shropshire Star Express and Star
EU to impose sanctions on Libya “as a matter of urgency”EU Foreign Minister Baroness Catherine Ashton announced yesterday that the EU will impose sanctions on Libyan leader Muammar Gaddafi and his family "as a matter of urgency", following a unanimous resolution by the UN Security Council. EU leaders have agreed to an embargo on arms sales, travel bans and asset freezes. Plans to enforce a no-fly zone have been shelved. The UN resolution also called for an immediate investigation to be launched by the International Criminal Court.
Italian Foreign Minister Franco Frattini said that the Libyan crisis has reached “a point of no return”, adding that it is “inevitable” that Gaddafi quits. Frattini also confirmed that Italy has suspended its 2008 friendship treaty with Libya, which included a non-aggression clause. The Economist’s Charlemagne blog notes: “The rumour in Brussels is that Italy is making its support for EU sanctions against Libya conditional on guarantees of EU ‘solidarity’ on migrants.”
Writing in Saturday’s IHT, Baroness Ashton argued: “Some ask whether we should have acted sooner, opposing authoritarian regimes instead of cooperating with them. It is a fair question. There is no easy solution to the dilemma of when and how to engage with such regimes…Were the European Union to isolate every government that fails to live up to the principles of liberal democracy, we would face accusations of political imperialism. It is better to proclaim the principles of democracy, but deal with the world as it is.”
Handelsblatt: Prodi EUobserver El Mundo El Pais: Maria Ridao Saturday’s Telegraph FT Weekend Economist: Charlemagne blog Independent BBC Il Messaggero La Repubblica BBC: Today EUobserver BBC: Hewitt Saturday's Guardian FT Weekend: Leader Saturday’s IHT: Ashton FT Weekend
2,500 EU officials on £185,000 or more claim extra days off to compensate for “overtime”The Sunday Times reported that 2,558 officials in the European Commission’s top pay band – with an annual salary of £185,000 or more – are claiming an average of seven and half days off every year as a compensation for working overtime. This is on top of their basic holiday entitlement of 54 days. Under the Commission’s own staff regulations, officials on monthly salaries above €10,000 (£8,500) are not allowed to claim overtime payments when they work more than their basic 37.5 hours a week, but this is happening anyway.
A Commission spokesman said, “It’s perfectly natural that if people work more hours in one week or month, they should be able to work slightly less the next.” Open Europe Director Mats Persson is quoted saying, “Taxpayers will understandably ask by what right EU bureaucrats on six figures ask for extra days off to compensate for what are considered normal working hours in most places. It’s amazing these kinds of perks remain in place.” Mats also appeared on LBC, discussing the benefits and costs of the EU.
Sunday Times
Fine Gael-Labour coalition most likely to emerge as Irish voters punish outgoing governmentThe BBC reports that Irish centre-right party Fine Gael is most likely to form a coalition with the Labour party, who finished second in the poll. The Independent notes that former Prime Minister Brian Cowen’s party Fianna Fail had a historically poor result, as it dropped from more than 70 seats to around 20 and was almost wiped out in Dublin. The Green party – Fianna Fail’s junior partner in the outgoing government – lost all its seats.
The new Irish government is now widely expected to seek a renegotiation of the terms of the €85bn EU/IMF bail-out. Fine Gael leader Enda Kenny is quoted in the Telegraph saying: "I see room for manoeuvre in terms of interest rates and in terms of the cost of the banking structure."
A leader in the Observer argued that the EU/IMF deal for Ireland “is punitive, unjust and unsustainable…It is hard to avoid the conclusion that Irish interests are being sacrificed to the larger cause of saving the euro.” It concludes that “if democracy and European solidarity are to mean anything”, Ireland should be allowed to re-negotiate the terms of its bail-out.
Independent Le Figaro BBC EUobserver FT WSJ EurActiv Telegraph Independent: Leader Guardian Guardian 2 Guardian editorial El Pais: editorial Times: leader IHT Observer: Leader Sunday Times Sunday Telegraph Observer Irish Times Irish Times 2 Irish Independent Irish Times 3 Irish Independent 2 Irish Independent: Keenan Irish Times: Leader
The Sunday Times reported that a delegation from Ireland’s National Treasury Management Agency negotiated with Libya over a possible bail-out of Irish banks, with loans coming from the Libyan Investment Authority. Brian Lenihan, then Irish Finance Minister, is believed to have been aware of the negotiations, which took place in December last year. Sunday Times
Environment Minister’s family has earned £2m in EU farm paymentsThe Mail on Sunday reported that the family of a Government Minister, Richard Benyon, has earned £2m in EU farm subsidies between 1999 and 2009. Mr Benyon, a Conservative MP, is the Environment and Fisheries Minister within DEFRA, which recently blocked public access to all information about how much farmers had earned from subsidies in order to comply with an ECJ ruling on data privacy.
Mail on Sunday
Greek EU Commissioner: EU-imposed austerity measures could lead to “social degradation” in Greece;
German Economy Minister: German taxpayers liable for €174bn in eurozone loansEUobserver reports that the Greek EU Commissioner, Maria Damanaki, has criticised the EU austerity plan in Greece, claiming it could lead to “social degradation”. In a speech on Wednesday, Damanaki called for a “better balance between austerity and growth”. She also accused the EU of “short-termism” and embraced the idea of a “fully fledged economic union.”
José Manuel Barroso, the European Commission President, and Herman Van Rompuy, the European Council President, have drawn up a successor to the Franco-German “pact for competitiveness” and will release it to eurozone officials today. The plan will reportedly include some form of constitutional cap on government borrowing but is not expected to tackle the linking of wages to inflation or corporate tax rates specifically.
FAZ reports that German Economy Minister Rainer Brüderle has said that the various eurozone bail-out agreements could make Germany liable for around €174bn in potential loans. This includes “€22.4bn in aid to Greece, €119bn for the EFSF and around €11.4bn for the EFSM. The implicit share of ECB purchases amounts to €21bn.” The WSJ reports the Italian Central Bank Governor Mario Draghi has indicated that interest rates in the eurozone will probably be increased soon but has argued that this will not hurt weaker eurozone economies.
Meanwhile, La Dernière Heure reports that the Belgian law approving the eurozone's temporary bail-out fund – the European Financial Stability Facility – is being challenged by citizens at the Belgian Constitutional Court. They are also demanding a referendum in Belgium on the necessary treaty change to set up a permanent eurozone rescue mechanism.
EUobserver FT EurActiv WSJ FT Munchau FT Editorial FT fm WSJ 2 FAZ FAZ 2 DH Onzezeg.be
Writing in theTelegraph, Boris Johnson, Mayor of London, argues that having a referendum on a new voting system is the wrong one to be having. He wrote: “By all means let us have a referendum – the one we were promised, on the Lisbon EU Treaty. Have you noticed the EU policy on North Africa? Have you heard much from Baroness Ashton? Shouldn't we have a vote on all that?”Telegraph
German Industrial Energy Association: EU green targets could lead to de-industrialisation of EuropeDie Zeit reports that the President of the German Industrial Energy Association Annette Loske has warned that EU environmental targets are pushing a “policy of de-industrialisation”. The article alleges that that EU Energy Commissioner Günther Oettinger is also lobbying against measures proposed for the EU’s low-carbon “Roadmap 2050”.
Meanwhile, in the Mail Christopher Booker argues that although wind turbines are expensive, inefficient and unsightly, Britain is committed to building thousands more in order to meet EU renewables targets. He claims Britain ought to take notice of other EU countries turning against EU policy, following Holland’s announcement that it would slash its annual subsidy by billions of euros.
Zeit Mail: Booker
The Times reports that employers have warned that the EU Agency Workers Directive, due to come into force in October, will cost them £1.5 billion a year. The Directive will affect around 1.3m workers in the UK.Times
The Mail on Sunday reported that UK consumers have to pay nearly four times more for new eco-friendly light bulbs following the EU’s ban on incandescent bulbs.
Express Mail on Sunday Mail on Sunday: Leader
The Sunday Times reported that, following TV chef Hugh Fearnley-Whittingstall’s campaign against the EU Common Fisheries Policy, EU Fisheries Commissioner Maria Damanaki, will this Tuesday unveil a proposal to ban the controversial practice of “discards”, whereby fishermen have to throw back the fish for which they have no quota. However, Spain and other southern European countries are expected to oppose the plan.Sunday Times Express
News of the World reported that the Conservative-run Northants County Council has opened a £2m office in Brussels, at the same time as it has cut 900 jobs and passed saving measures worth £73m.No link
In an interview with Al-Jazeera, David Cameron has rejected calls for an in/out referendum on the UK’s membership of the EU, arguing that leaving the EU would “not be in [Britain’s] interest.” On his Telegraph blog, Dan Hannan has argued that rather than guessing at the outcome, and then working backwards, people ought to consider instead whether it is right in principle to consult the country.Al-Jazeera: Cameron Telegraph: Hannan
Saturday’s Express reported that under the European Parliament’s “mobility plan”, parliamentary staff using public transport are entitled to a taxpayer-funded travel subsidy of £203, about half the annual cost of a season ticket.Saturday’s Express Saturday’s Express: Editorial
EUobserver reports that, ahead of a meeting with German Chancellor Angela Merkel, Turkish Prime Minister Recep Tayyip Erdogan accused the German society of “xenophobia” and the German government of “discrimination” against Turkish migrants. This follows an awkward meeting with French President Nicolas Sarkozy on Friday, during which Sarkozy told the press that Turkey’s accession would “destabilise” the EU.EUobserver
Le Figaro reports that French Foreign Minister Michèle Alliot-Marie resigned yesterday over links with the ousted Tunisian regime. She will be replaced by Alain Juppé, who has been serving as Defence Minister.Independent Le Figaro

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The EU won the Olympics, the World Cup… and now an OscarOpen Europe blog

Return to Zion?

2011-02-26T10:38:00.000-08:00

Shalom Ilan, haveri! Thank you for thinking of me. We've had an ice and snow snow that came in last night and expect another tonight. My car door won't open. Frozen shut.
I would love to visit my beloved Land but probably can't for many reasons: I'm a poor white boy (I'm a poor fellow getting ready to sell my home and move with Mom and her boyfriend Doug to a nice home with my own bedroom in the country). And my AIDS doctors said I'll probably be dead and are in shock I'm not already and haven't gotten sick with infectious diseases. Blessed be God! What will be will be. I won't give up without a struggle.

Love ya Ilan,

David

Open Europe

2011-02-23T05:25:00.000-08:00

Europe

France calls for sanctions against LibyaFrench President Nicolas Sarkozy today called on the EU to adopt “swift and concrete” sanctions against Libya. He said that such “measures [should] concern notably the possibility of bringing them to face justice, barring them from the Union's territory and surveillance of financial movements.” "I would also like to be examined the suspension until further notice of economic, commercial and financial relations with Libya," he added.
During his tour of Middle East countries, David Cameron has called for “radical reform” of the European Neighbourhood Policy (ENP), a set of aid and development programmes targeted at the EU’s neighbouring countries. The Telegraph notes that countries in the Middle East and North Africa receive around £1.4bn a year from the ENP, and that the UK’s annual contribution to the scheme is estimated at around £180m. The Guardian quotes a British official saying: “We have to recognise the policy has failed. It has been successful in helping eastern European countries prepare for EU membership. But it has completely failed in this region. The EU has to be brave enough to turn the taps off if it does not see results.”
Meanwhile, as the demonstrations in Libya continue, the EU is struggling to agree on what actions need to be taken against Moammar Gaddafi’s regime. Foreign Secretary William Hague told reporters yesterday that “the Libyan Government is trying to stop the world seeing what is happening in Libya, but we will do everything we can to make sure they are held accountable for their actions.” German Foreign Minister Guido Westerwelle said: "If Libya continues to use force against its own people, sanctions will become inevitable."
However, the Times of Malta notes that the EU is still divided over whether to impose sanctions. Asked, during an interview with Radio Zet, whether Gaddafi will end up like former Romanian dictator Nicolae Ceausescu, who was executed following the Romanian revolution, Polish Foreign Minister Radoslaw Sikorski sarcastically said: “It couldn’t happen to a nicer guy.” EUobserver notes that the EU’s latest report on arm exports shows that in 2009 EU countries granted €343.7m worth of licenses to Libya, although the figures for actual shipments are incomplete.
La Repubblica reports that Italian Prime Minister Silvio Berlusconi has called Gaddafi and has asked him to stop the violence in order to avoid civil war in Libya. The Italian government fears an exodus of up to 300,000 migrants from Libya to its shores. Italy was also forced to shut down the Greenstream pipeline from Libya – which provides for 13% of its daily gas imports – due to safety concerns for Italian energy firm ENI’s workers based in Libya.
EUbusiness Guardian EUobserver EUobserver 2 EUobserver 3 Economist: Bagehot BBC: Today La Repubblica La Repubblica 2 Radio Zet: Sikorski ANSA Straneuropa blog BBC BBC: Hewitt El Mundo El Mundo 2 Telegraph Economist: Bagehot blog
De Standaard: “Ashton can’t do it”An article in De Standaard criticises EU Foreign Minister Baroness Catherine Ashton in the light of recent events in the Middle East and argues: “Ashton can’t do it…[she is] hardly dynamic… Maybe that’s what a Baroness should be, but is it what the EU needs?” On his La Stampa blog, Marco Zatterin argues: “Lady Ashton can now do two things: either raise her head up and stop being a puppet in the hands of [European] capitals…or resign…and send a message to EU governments, so that they stop pretending that they have a common foreign policy.”
De Standaard Straneuropa blog
Merkel considers extending Greek bail-outFollowing a meeting yesterday with Greek Prime Minister George Papandreou, German Chancellor Angela Merkel said that “there certainly is a discussion about whether to consider extending the running time of the Greek [bailout] program”. However, she added that any decision on the issue is unlikely before the EU summit at the end of March. Kathimerini reports that Greek diplomats said they are confident that the repayment period will be extended to 10 or 11 years, but are not sure if the interest rate will be decreased.
The ECB yesterday criticised eurozone leaders for moving too timidly against countries whose excessive spending and borrowing had endangered the euro. In the Irish Independent, columnist David McWilliams argues that “If we the Irish people hold a referendum on the bank debts now, we can go to the EU with a mandate from the people which says NO. This will allow our politicians to play hard-ball.”
On his Telegraph blog, Ambrose Evans-Pritchard comments that outgoing Bundesbank president Axel Weber’s criticism of eurozone economic policy in yesterdays’ FT makes it clear he prefers the option of “letting EMU die”, as the alternative would be a full European fiscal union, spelling “the end of Germany as a self-governing sovereign nation”.
Expansion 2 Expansion 3 Jornal de Negocios 2 Expansion FT EUobserver Le Figaro Irish Times Kathimerini Die Welt Times IHT Irish Independent: McWilliams Vanity Fair: Lewis Times: Kaletsky Dan O’Brien: Irish Times Irish Independent FT Comment: Wolf FT Editorial Editorial Comment: Irish Times Handelsblatt WSJ Telegraph: Evans-Pritchard
Euractiv France notes that, in a report sent to the European Commission, France has insisted on the “priority of reducing the share of the EU budget devoted to the cohesion policy,” arguing that this would be the natural consequence of the greater economic convergence achieved by EU regions and member states over recent years.Euractiv France
A leader in the Times argues that “bold deregulation” is needed to bolster growth in the UK, particularly regarding employment regulations. The article notes that the Transfer of Undertakings Regulations (TUPE), a gold plated version of the EU’s Acquired Rights Directive (ARD), is a significant deterrent to competition.No link
In the Times, former Home Secretary Michael Howard argues that human rights law should be decided by “elected, accountable politicians” rather than “unaccountable, unelected judges.”Times: Howard
Dutch central-bank Chief Nout Wellink has signalled his interest in the presidency of the European Central Bank, saying in an interview that his decades of international experience and record for fighting inflation qualify him for the job.WSJ WSJ 2
A WSJ editorial notes that “Iceland's voters will once again get to have their say over whether they should bear the cost of the 2008 bailouts of British and Dutch depositors in Icelandic banks…But it's unclear why Iceland should bear the costs of bailing out the Dutch and British at all.”WSJ: Editorial
The Telegraph reports that member states yesterday voted to allow imports into Europe that consist of 0.1% genetically modified seed.No link
An FSA director, Verena Ross, has been chosen as chief executive of the new EU financial services watchdog, the European Securities and Markets Authority. Despite being a German national it is likely that the appointment will ease fears over Britain not having any high ranking officials in the ESMA despite London being the EU’s financial capital.FT City AM FT: Westminster blog
According to the official EU statute, European Commission officials are not allowed time off in order to make up for working overtime. Despite this, the Commission has introduced a new arrangement called ‘flexitime’ which allows officials to accrue hours and in return gives them time off.Bild
A European Parliament spokesman has responded to criticism on how the EP is hiring extra staff, claiming: "most of the proposed new posts are related to the accession of Croatia”Parliament
Writing in the name of the European Liberal Party (ELDR), Sweden’s Europe Minister Birgitta Ohlsson, has called for reforms of the EU budget, writing: "Rather than preserving past priorities, the EU should redirect expenditure”, which should be financed through “reduced expenditure on agriculture. (…) Structural funds should focus on the parts of the Union most in need. "
ELDR 1 ELDR 2
The EU granted the Cornish pasty protected status yesterday, meaning only those produced in Cornwall, to a specific recipe, can be described as ‘Cornish’.
Independent Times Guardian

The Vatican versus the Fourth Commandment

2011-02-18T06:55:00.001-08:00

Commentary: The Vatican versus the Fourth Commandment

By Wyatt Ciesielka | Saturday, February 12, 2011

On January 25, Pope Benedict XVI again proclaimed his desire "to ignite a fervent missionary movement in the Catholic Church," stating he wants to advance "the entire Catholic Church into a new missionary age" in 2011 (catholic.org, January 28, 2011). While this movement will ultimately contribute to fulfilling prophecies such as Isaiah 47:8-9 and Revelation 17:2-5, an aspect of this rejuvenated "fervent missionary movement" already affects billions. This is the growing emphasis on Sunday observance. Read more

Open Europe

2011-02-17T06:36:00.001-08:00

Reminder: Fundación para el Análisis y los Estudios Sociales (FAES) and Open Europe are hosting a seminar in Madrid tomorrow on the eurozone. For more information, please contact Siân Herbert by email:
sian@openeurope.org.uk

Europe

Lords criticise failure of EU’s €55m-a-year police training mission in AfghanistanEUobserver notes that in a report published yesterday the House of Lords EU Committee concluded that the EU’s police training mission in Afghanistan has achieved “very little” in the past four years due to understaffing. The mission, which will cost €54.6m for the year 2010-11, is described as “woefully inadequate” and “has the wider effect of bringing EU Common Security and Defence Policy missions as a whole into disrepute.” The report notes that after four years of work, around 70% of Afghan police cannot read or write and process basic paperwork.
The report also highlights “the slowness of EU bureaucracy” to get the project off the ground and the lack of cooperation with NATO forces. The Committee's Chairman, Lord Teverson, is quoted by the BBC saying, “there is no formal agreement between the EU and NATO in Afghanistan, which we find utterly unacceptable.”
EUobserver BBC House of Lords report Open Europe blog
Conservatives may pledge to leave European Court of Human Rights at next electionTheTimes reports that David Cameron is preparing to fight the 2015 general election with a pledge on pulling out of the European Court of Human Rights (ECHR). A Conservative policy review will examine whether the party can back withdrawing from the Court, but party figures admitted that they would not be able to pursue such a move while in coalition with the Liberal Democrats. The FT reports that the President of the ECHR, Jean-Paul Costa, has warned it would be a “disaster” for Britain if it failed to let prisoners vote or left the jurisdiction of the Court.
Meanwhile, The Parliament reports that MEPs yesterday demanded increased protection for prisoners’ rights, including "minimum common standards" for all prisoners across member states, overseen and enforced by the Fundamental Rights Agency.
Times Telegraph: Leader FT Express: Leader Open Europe press release Open Europe research TheParliament.com
Merkel’s sister party: the introduction of “a European State through the back door” must be avoidedFAZ reports that the leadership of the Bavarian CSU party, has attacked German Finance Minister Wolfgang Schäuble "in an unusually critical way" over the level of the permanent European bailout fund, which would see Germany bear a considerably higher burden. CSU General Secretary Alexander Dobrint said: “the introduction of a centralised European state through the back door” must be avoided. He added that it appears “that all European states want German money” and he argued “this cannot be the path we chose”.
In an interview with Die Zeit Jean-Claude Trichet, President of the European Central Bank, argues that eurozone members should make greater use of fiscal policy to atone for any economic differences. He said: “individual member states need to take monetary policy as given and adjust their national policies accordingly”. He added: “If a country is experiencing a boom, it has to make its own national policies – such as the fiscal, wage and structural policies and financial regulation – more restrictive, so that the economy does not become overheated or speculation gets out of control”.
Yesterday Portugal bought back €215m of €9.5bn bonds expiring in April and June. The purchase, which was expected to be higher, was described by traders as “insignificant”. Portugal also held an auction of €1bn of 12 month bills, which saw borrowing costs increase to 3.987% and demand fall. Separately, the ECB may have bought nearly €18 billion of Portuguese bonds since May according to Societe Generale. This would amount to15% of Portugal’s total debt outstanding.
The Irish Times reports that Irish banks are issuing bonds to themselves under a government guarantee to use as collateral in order to borrow cheaply from the ECB. Four banks issued bonds worth €17bn to themselves last month. “What you have here is micro-quantitative easing, or money printing,” said Cathal O’Leary, head of fixed-income sales at NCB Stockbrokers. “The banks are issuing unsecured loans to themselves”.
FT Bloomberg Irish Times Irish Times 2 Zeit Dow Jones FAZ
The FT reports that EU regional funds worth £155m destined for England were suspended between mid-October and mid-December 2010 while the Commission investigated “significant shortcomings” in the way the funds are spent by regional authorities. The funds have now been disbursed, but with a warning that greater supervision is required.FT
Residents asked to use up to nine bins to meet EU recycling targetsThe Telegraph reports that local councils are asking residents to separate rubbish into up to nine different bins in order to meet EU recycling targets. Gary Porter, Chairman of the Local Government Association Environment Board said: “Taxpayers face huge European Union financial penalties if targets to reduce the amount of rubbish sent to landfill are not met”.
Telegraph Express Mail
Zita.be reports that President of the Belgian Constitutional Court, Marc Bossuyt, has warned of the danger of a "government of judges" as the European Court of Justice and the European Court of Human Rights attribute more and more powers to themselves and overrule decisions made by elected politicians.Zita.be
The BBC reports that the EU has eased sanctions on Zimbabwe by removing 35 individuals from a list of people affected by visa bans and asset freezes. But sanctions on other people close to President Robert Mugabe were extended for another year.BBC
An article in the FT notes that youth unemployment in the eurozone currently stands at 20.4% up from 14.6% in February 2008, before the start of the financial crisis.FT
An article in the IHT notes that the difficulties currently faced by German publicly owned regional bank WestLB “are symptomatic of a larger problem in the German economy. Many of its biggest banks are still on government life support after making bad lending bets during the bubble years. And with their access to cheap capital long gone, their prospects of becoming profitable again are dubious.”IHT FAZ
The FT reports that the ECJ has ruled that EU member states can ban the exclusive airing of World Cup and European football championship games on pay TV, as both these events can be considered of “major social importance” and must therefore be guaranteed wider public viewing on free TV channels.FT AFP
Timothy Garton Ash says if EU does not come up with “a generous, imaginative and strategic response [to events in North Africa], then that failure will one day come back to haunt us on all the Arab streets of Europe”.
Guardian: Garton Ash
Hungary's government has agreed to amend a new media law after criticism from the EU that the legislation imposes unacceptable restrictions on freedom of expression.WSJ EurActiv European Voice
The Irish Government faces a fine of at least €3.27 million over its failure to adopt a farming environmental directive.Irish Times
Health Secretary Andrew Lansley has approved a plan to establish a statutory register of practitioners supplying unlicensed herbal medicines in order to protect consumers from an EU ban on such products due to come into effect on the 1st May. The College of Medicine’s Kaye McIntosh said: “Without statutory regulation […] thousands of patients would be unable to make the choice to use herbal treatments”.
Mail
MEPs have agreed to enact new legislation on the labelling of medicines, in order to counteract a surge in fake drugs sold in the EU.EUobserver
Gazeta Wyborcza reports that the European Commission is considering a change to the Working Time Directive, which could see employees losing some of their holiday allowance in the event of long term sick-leave. Poland’s Employment and Social Affairs minister Jolanta Fedak told tabloid newspaper Fakt that she will oppose the measures.
Wyborcza Fakt
EUobserver reports that Belgium today marks 249 days of political deadlock, thereby hitting the world record for lack of government. No deal appears likely to emerge anytime soon in the country which hosts the EU’s institutions.EUobserver WSJ Tijd: De Grauwe

New on the Open Europe Blog

Rhetoric versus reality of EU foreign policy: Lords blast EU’s Afghan police missionOpen Europe blog

Open Europe

2011-02-15T05:17:00.000-08:00

Europe

Head of European Banking Authority: European banks will face more “top-down” regulation
In an interview with the FT, Andrea Enria – chair of the European Banking Authority – said the EBA will use its new powers to impose more uniform oversight on European banks through the adoption of a single set of rules. He argued: “I think now it has to be a little bit more top-down […] The senior people here should engage in real policy discussions, take decisions and make things happen. The ‘single rulebook’ is the true power. If we start having regulatory competition again, it will be havoc.” A top London-based executive at a global bank is quoted by the paper saying: “In five years, we’ll be talking to the EBA and Brussels. The FSA will be an afterthought.”
Open Europe research FT FT 2 Telegraph
Eurozone finance ministers agree on €500bn permanent bailout fund but crucial details remain unclearIt is widely reported that eurozone finance ministers yesterday agreed that the permanent bailout mechanism would be able to lend €500bn. The details of the funding, in terms of contributions and capital buffers, are not yet clear; however, Jean-Claude Juncker, Luxembourg’s Prime Minister, confirmed it will be designed to lend the full amount unlike the current bailout fund. No agreement was reached on other details of the mechanism, such as whether it will be allowed to buy government bonds, a proposition which both Germany and the Netherlands oppose. Elsevier quotes a spokesman of the Dutch Finance Ministery saying: “there is no agreement at all. We’ll only have that when we have an agreement on everything.” Euractiv quotes Luxembourg Finance Minister Luc Frieden saying "We are probably too slow to take the relevant decisions”. The meeting also failed to yield an agreement on expanding the current bailout fund or the ‘pact for competitiveness’.
During a meeting with Angela Merkel, the German Chancellor, yesterday Enda Kenny, Fine Gael leader, stated that a Fine Gael-lead government would “not contemplate, in any circumstances, moving” on the tax question. Despite this, German officials refused to rule out an agreement on taxes: “Everything depends on everything else and we’re not interested in one individual issue being factored out,” said a close political adviser to Merkel.
Meanwhile, GDP figures released yesterday show sluggish growth in Q4 2010 across the eurozone. A contraction in the Portuguese economy increased fears that it will need a bailout and pushed bong yields higher. Zach Witton, an economist at Moody’s, the rating agency, forecast on Monday that “Portugal will seek assistance from the EU’s bail-out fund by the second quarter of this year at the latest”.
In an interview with FAZ Mario Draghi, head of Italy’s Central Bank, suggested that “everyone should follow the German example” of prioritising stability politics and that he supports the Fraco-German notion of a competiveness pact. He also states that he opposes Eurobonds and does not regard the eurozone as a fiscal union. Handelsblatt reports that the French government would support a German for head of the ECB but does not see Draghi as a suitable candidate. In an interview with Les Echos, ECB President Jean-Claude Trichet has said that he would not extend his mandate if eurozone governments failed to agree on the name of his successor.
ECB executive board member Lorenzo Bini-Smaghi said in a speech: “It would be risky for the euro area to move to greater fiscal and budgetary integration in order to avoid the instability associated with the current system … the new regime could import new problems which might be politically even more difficult to tackle.”
IHT FT European Voice Euractiv Lepoint BBC EUobserver Le Monde BBC: Today Les Echos La Tribune Le Figaro Le Monde ECB: Bini-Smaghi El Pais El Pais 2 El Pais 3 Irish Times Irish Independent Irish Independent 2 Guardian Handelsblatt Elsevier Euractiv 2 Lepoint Frankfurter Allgemeine FT 2 FT 3 Jornal de Negocios Focus Frankfurter Rundschau FT 4 Irish Times 2 Irish Times 3 Irish Times 4 IHT: Politicus Les Echos: Trichet
A leader in the WSJ argues, “Governments in Athens, Dublin or Madrid may be cheering that they won't have to deal with Mr. Weber at the helm of the ECB. But his isolation at the governing council and his premature departure suggest a worrisome philosophical shift at the European Central Bank”. “A eurozone that Mr. Weber doesn't feel comfortable leading is one that should make anyone with a stake in the success of the single currency nervous”, the article concludes.
WSJ: leaderIntereconomia HLN WSJ
Judges at the European Court of Human Rights will not have the final say on whether prisoners should be given the vote, Attorney General Dominic Grieve said last night.Mail
The Council of Ministers yesterday agreed on an EU wide patent, but due to opposition from Spain and Italy the decision was made under ‘enhanced cooperation’, meaning that not all 27 member states will take part.El Pais
Catherine Ashton proposes mobilising €2bn from the European Investment Bank to support democratic reforms in Tunisia and EgyptWriting in the FT, the EU’s Foreign Minister Baroness Catherine Ashton proposes reviewing the EU’s neighbourhood policy, mobilising up to €1bn this year, a potential further €1bn from the European Investment Bank and providing a possible €1bn of financing through the existing resources of the European Bank for Reconstruction and Development to support democratic reforms in Tunisia and Egypt.
FT: Ashton Irish Times: Beesley Spiked: Prengel
Il Corriere della Sera reports that Italian Interior Minister Roberto Maroni has accused the EU of “not doing anything” to help Italy cope with the thousands of Tunisian refugees arriving on its shores.
Corriere della Sera Repubblica EUobserver EUobserver 2 BBC Irish Times Welt Tagesschau
Trouw reports that this week a motion will be presented to the Dutch Parliament, calling for the Dutch PM to take a tougher stance on EU affairs. FD Selections reports that there is a large majority in the Dutch Parliament who fear that the Netherlands is being dragged into a political union. Elsevier quotes Dutch Finance Minister Jan Kees de Jager saying that the Franco-German ‘pact for competitiveness’ "shouldn't be a diktat".Spiegel Trouw FD Selections Elsevier
The Mail reports David Cameron is “furious” that Business Secretary Vince Cable has failed to find a way of halting EU legislation giving temporary staff the same salaries, holidays and overtime pay as their full-time counterparts after 12 weeks in employment. The measures, agreed by the previous government, are due to come into force in October, and a report by the British Chambers of Commerce has estimated they will cost businesses around £1.5billion a year.
Mail
The FT reports that Prime Minister David Cameron has been warned by his coalition partners that adopting an “empty chair” policy, while eurozone countries led by France and Germany take key economic decisions, could lead to Britain being “sidelined in a two-speed Europe”.FT
The FT’s chief political commentator Philip Stevens challenges the widespread conviction among most politicians that not adopting the euro has better enabled Britain to cope with the consequences of the global economic recession, saying that economic indicators point to an “uncomfortable reality […] that eurozone countries against which Britain more naturally measures its performance have suffered less as a consequence of the crash”.FT
The EU’s Commissioner for Telecommunications Neelie Kroes has said that she would probably seek new regulations to end the high charges Europeans face when using data services on smartphones outside their home countries.IHT
FT Deutschland reports that rating agency Moody’s is about to conduct a thorough review of the credit rating assigned to banks and financial institutions. This could have serious consequences for many state assisted institutions, as the review will only take into account the institutions’ own financial strength, which could lead to downgrades for many banks around Europe.FT Deutschland
EUobserver reports that EU finance ministers will today discuss a coordinated freeze of assets belonging to members of ousted Egyptian leader Hosni Mubarak’s regime.EUobserver
La Repubblica reports that the Milan court has announced that Italian Prime Minister Silvio Berlusconi’s trial will start on 6 April. Berlusconi is charged with abuse of power and aiding and abetting underage prostitution.Repubblica

What will be the consequences of the legal patchwork of European human rights?
Open Europe blog
Van Rompuy’s comments reminiscent of the Politburo?
Open Europe blog

Open Europe

2011-02-09T05:31:00.001-08:00

Open Europe

Europe

New Open Europe briefing: Prisoners’ right to vote. The blurred line between the European Convention on Human Rights and the European UnionOpen Europe has published a new briefing highlighting how human rights law is now locked at the European level in two separate, but linked, forms: the European Court of Human Rights (ECHR) and the EU. The briefing shows that even if the UK decided to withdraw from the ECHR, it may still remain subject to the rulings of Strasbourg judges, since the EU has its own Charter of Fundamental Rights and is set to join the ECHR as a separate entity.
If it wanted to avoid potential conflicts between national law and European human rights law – including on prisoners’ voting rights – the Government would therefore have to seek cast-iron opt-outs from both the ECHR and the EU’s Charter of Fundamental Rights.
Open Europe briefing Open Europe press release
Special eurozone meeting set for mid-March;
EU Commissioner to propose common corporate tax base “very soon”It is widely reported that an extraordinary meeting of eurozone leaders will take place around 11 March. The meeting has been set as the deadline for the group to reach a consensus on issues such as the expansion of the eurozone rescue fund and the Franco-German “pact for competitiveness”, with the final proposal due to be unveiled at the end of March.
EUobserver reports that yesterday, following a speech by European Council President Herman Van Rompuy in the European Parliament, German Green MEP Rebecca Harms likened his declarations to the statements made by the “Politbureau”, the main decision-making body in the Soviet Union. "No matter how meagre the results are, we always get reports of how smooth everything went. We need more honest declarations which pinpoint the problems," she said.
The Irish Independent reports that the new government-appointed chairman of Anglo Irish Bank, Alan Dukes, warned yesterday that Ireland will have to go to the IMF or EU for another €15bn to sure up the banking system.El País reports that, according to figures published yesterday by the Spanish Ministry of Industry, Tourism and Trade, in 2010 Spain lost 0.3% of its competitiveness relative to its eurozone partners.
A report released on Monday by the Bruegel think-tank concludes “that Greece has become insolvent and that further lending without a significant enough debt reduction is not a viable strategy.” The report suggests that the current proposals on the table for restructuring Greek debt would be insufficient.
Meanwhile, EU Taxation Commissioner Algirdas Semeta said yesterday that he intends to table proposals “very soon” to introduce a common corporate tax base in the EU.
EUobserver EUobserver 2 AFP Irish Times FT Money Supply Blog FT Brussels Blog Irish Independent Reuters Irish Independent 2 EurActiv Irish Times AFP: Juncker AFP: Vanackere AFP: Semeta El Pais 2 FAZ
Eurozone comment round-upIn the Irish Independent, economic commentator David McWilliams argues: “Germany and France want to introduce a common corporate tax rate and rules about government spending. They are trying to make Europe look more and more like Germany. But these are the concerns of creditor countries, with old populations who are in the business of wealth preservation. Countries like this need slow steady growth and low or no inflation – both designed to make savers richer. This is all very well if you are owed money. In contrast, if you owe money these policies will make your predicament untenable.”
In the Times, Anatole Kaletsky writes: “The proposed harmonisation of tax, labour and pension policies has no direct relevance to the euro crisis and will do nothing to make Greece or Ireland more credit-worthy […] In short, last week’s proposals were not so much an attempt to solve the euro crisis as an effort to exploit it to advance the eurofederalist agenda that had been stalled for years.”
In an interview with Der Spiegel, Mohamed El-Erian – CEO of Pimco, the world’s largest bond investor – suggests that Greece will be unable to finance its current debt requirements due to the “typical debt trap” it finds itself in.
Spiegel: El-Erian Times: Kaletsky Irish Independent: McWilliams BBC: Hewitt IHT: leader
Commissioner calls for limited increase in EU institutions’ administrative expenditure
EU Budget Commissioner Janusz Lewandowski has sent a letter to all EU institutions and agencies calling for them to cap the nominal increase in internal expenses in 2012 to less than 1%. La Tribune quotes Patrizio Fiorilli, a spokesman for Commissioner Lewandowski, admitting: “This is above all a symbolic measure, because we can’t touch cohesion funds or farm subsidies.”
EUobserver reports that MEPs intend to write back to Lewandowski arguing that they will not be able to meet the 1% target because they need to hire extra staff to carry out new duties under the Lisbon Treaty.
EUobserver La Tribune Euractiv France
Brazil's Ambassador to the EU says CAP is a “drain” on EU budgetThe Parliament magazine reports that Ricardo Neiva Tavares, Brazil's Ambassador to the EU, has strongly criticised the EU’s Common Agricultural Policy, arguing: "Currently, agricultural policy takes up about half of the EU budget even though it accounts for only 4% of EU GDP. This is a real drain on the budget and the EU's ability to invest in those areas that will lead to a more competitive economy in Europe.”
Parliament
Lobbying continues for Croatia’s EU accession despite rampant political corruptionIn a comment piece for EUobserver, Natasha Srdoc and Joel Anand Samy of the Adriatic Institute for Public Policy note that Austria and Germany are lobbying hard to accelerate Croatia’s accession to the EU, despite the fact that the 2010 EU Progress Report warns of rampant political corruption and an unreformed judiciary. They argue: “Nearly €4 billion of EU taxpayer funds are being prepared as a hand-out for Croatia's politicians to spend when the candidate country joins the EU. Brussels is sending an unconditional €472 million in pre-accession aid to Croatia. Funds would be better used by deploying visiting judges and prosecutors from countries with a strong rule of law tradition to assist in creating Croatia's independent judiciary.”
EUobserver
EU Enlargement Commissioner Stefan Füle said yesterday that the Commission’s review of the EU’s Enlargement and Neighbourhood Policy will consider the recent Tunisian revolution, with a possible increase in funds in return for pledges of reform, reports El País.El Pais FT
Writing in the Express, former Conservative MP Ann Widdecombe urges caution in the debate about whether Britain ought to leave the EU, arguing: “I know what we would be running from but not what we would be embracing. A planned and regretful divorce is one thing but an impetuous departure leaving the future to chance is quite another.”Express: Widdecombe
Il Corriere della Sera reports that prosecutors in Milan will today make a formal request that Italian Prime Minister Silvio Berlusconi immediately go on trial for allegedly having relations with an underage prostitute.Corriere della Sera La Repubblica

New on the Open Europe blog

EU leaders’ reactions to the Franco-German plan for stronger economic governance in the eurozone: Saying ‘nein’ to Angie - Part IIOpen Europe blog

Open Europe

2011-02-08T05:30:00.000-08:00

Europe

Tensions continue over Franco-German eurozone pact;

Polish PM to Merkel: “Are the rest of us standing in your way?”

German Chancellor Angela Merkel’s proposal for more fiscal and economic harmonisation within the eurozone continues to provoke resistance. Spiegel reports that yesterday Polish Prime Minister Donald Tusk said that Poland has “fundamental doubts regarding the method” of the plan. The paper notes that Tusk “personally attacked” Merkel saying, “Why do you have to demonstrate a division? Are the rest of us standing in your way?” Reuters quotes Bundesbank Head Axel Weber saying the plan left "too much room for discretion in interpreting and applying the rules of the [Growth and Stability Pact].”

European Voice reports that yesterday European Central Bank President Jean-Claude Trichet told MEPs that forcing investors to take losses by restructuring national debt would only benefit speculators. He also reiterated that renegotiation of the terms of the Greek and Irish bail-outs is unlikely.

Open Europe’s Pieter Cleppe appeared on CNBC arguing, "Basically what you see is a discussion between the German and the French bloc within the Eurozone. France represents Spain and other periphery countries and wants more transfers." He continued, "Inflation in Germany is the big story and this will raise calls in Germany for higher interest rates, putting the eurozone more under strain”. An article in Forbes magazine notes that Open Europe calls the EU “a de facto debt union”.

Lithuanian President Dalia Grybauskaite said Lithuania could delay its eurozone entry beyond its 2014 target to avoid having to cut state pensions, reports EUbusiness.

The Foreign and Commonwealth Office launches ‘EU Careers Month’

The Foreign and Commonwealth Office (FCO) today launches ‘EU Careers Month’. Europe Minister David Lidington is quoted on the FCO website saying, “This campaign aims to increase the number of UK graduates applying for the next round of the EU Civil Service’s recruitment competition. The UK only makes up 6% of the EU’s workforce despite representing 12% of the EU’s population. In last year’s recruitment competition – the assessment taken by graduates to secure a job in one of the EU institutions - the UK produced the lowest number of applicants of all EU member states”.

Telegraph: EU careers site FCO website Telegraph

Nurse skill tests to be overhauled to meet EU freedom of movement rules

An article in the Mail notes that skill tests for EU nurses aiming to work in the UK will be overhauled, as they are currently contrary to EU freedom of movement laws. The Telegraph reports that the Health Select Committee has warned that the General Medical Council must ensure that GPs have competent English language skills. The Committee noted, however, it is unclear if language testing can be included as part of regular checks, under EU rules.

Mail Telegraph

Environmental groups have attacked the EU over giving loans of €750 to Slovenia’s Sostanj coal-powered energy plant, arguing it is inconsistent with EU policy on carbon emissions. Slovenian officials confirmed that, if built, the plant will likely use up all of Slovenia's permitted emission quota under 2050 goals, reports EUobserver.

EUobserver

Le Figaro columnist: the euro weighs on the growth of the Old Continent;

Eurozone comment round-up

In a comment piece in Le Figaro, columnist Yves de Kerdrel argues that the euro “remains a handicap for manufacturers trying to conquer the world. It continues to weigh on the growth of the Old Continent […] Above all, it is increasingly rejected by public opinions, which see it as the cause of the austerity plans they are subject to. But in Paris, as in Berlin, everyone is determined to defend the single currency, not for its usefulness, but for what it represents.”

In an opinion piece in Handelsblatt, Czech President Vaclav Klaus argues, “Everyone wanted the opening of Europe, the general liberalisation of life and the economy and the removal of the barriers […] What happened after that - the artificial unification, harmonisation and centralisation from above - not all us wanted this. Europe will never become a nation, and it is pointless to try to eliminate the nation-states”.

Handelsblatt’s Brussels correspondent Ruth Berschens notes that many people mistakenly are not taking the Franco-German pact for competitiveness seriously. “In Europe, the last bastions of national sovereignty in economic and social policy will fall”, she concludes.

An editorial in the WSJ argues, “Angela Merkel wants the nations of Europe to get competitive. But the German Chancellor would rather get there without any of these nations competing with each other”. An editorial in the FT argues, “Regrettably, the proposals have nothing to say about expanding the European single market, the most important motor of economic growth and integration that the EU has ever designed.”

FT: editorial FT Alphaville Le Figaro: de Kerdrel Le Monde: Pisani-Ferry WSJ: editorial Handelsblatt: Berschens

During yesterday’s hearing of Wikileaks founder Julian Assange, a retired Swedish judge Brita Sundberg-Weitman said she believes the issuing of a European Arrest Warrant for his arrest is “disproportionate”, reports the Guardian.

Guardian

In the Irish Times, Arthur Beesley notes that the eurozone crisis is overshadowing the EU’s urgent energy supply problem, reporting that the EU currently imports more than half of its oil and gas supplies, a proportion that would rise to 70% in 2030 if nothing changes.

Irish Times

Polish President Bronisław Komorowski has invited Russia to join future meetings of the Weimar Triangle group, comprising of Poland, Germany and France, as a way of strengthening Moscow's ties with the EU.

EurActiv EUobserver

Le Monde reports that the Hungarian government has accepted to amend its new media law. A first draft of alterations is expected to be presented to the European Commission by 10 February.

EUobserver Le Monde El Pais

The Mail reports that the total number of cases pending against the UK at the Strasbourg-based European Court of Human Rights (ECHR) rose from 1,690 in 2009 to 3,172 last year.

Mail

Under new EU regulations, from Monday factories must equip new cars and small vans with Daytime Running Lights, which automatically switch on when the engine starts, reports El Mundo.

El Mundo

The European Parliament's international trade committee gave its backing yesterday to the EU's free-trade agreement with South Korea.

European Voice

Open Europe

2011-02-07T04:48:00.000-08:00

Europe

Franco-German “pact for competitiveness” faces resistance

It is widely reported that the set of proposals put forward by France and Germany at the EU summit on Friday – the so-called “pact for competitiveness” – was met with significant hostility from other eurozone members and seems unlikely to form the basis of any agreement. After Belgian Prime Minister Yves Leterme, Luxembourg’s Prime Minister Jean-Claude Juncker also voiced his opposition to scrapping the link between wage increases and the level of inflation across the eurozone, arguing that he did not see “how abolishing wage indexation would increase the competitiveness of [Luxembourg] or the eurozone.” Mariano Rajoy, leader of Spain’s opposition Partido Popular, is quoted in Expansión saying: “As a Spaniard, I don’t like to be told what I have to do by the outside.” Austria, Poland and the Netherlands were also said to have criticised the initiative’s attempts to reach into policy areas normally the reserve for national parliaments. "There were 18, 19 countries who spoke up to make known their regret on the way it was presented and also on the content […] It was truly a surreal summit," Leterme commented.

EU leaders also failed to reach an agreement on expanding the eurozone’s rescue fund, as they only stated that it must have the “necessary effectiveness” to tackle any eurozone problems. Without an agreement on the “pact for competitiveness”, German support for expansion of the bailout fund remains unlikely. European Council President Herman Van Rompuy is now expected to hold bilateral discussions with eurozone leaders in an attempt to form a consensus by March – widely seen as the deadline for a deal in order to calm the markets.

On the UK’s position in the discussions, Prime Minister David Cameron said: "I have made Britain's position on this very clear: we are not in the euro, we will not be joining the euro, nor will we be drawn into further measures to support the euro.”

Open Europe research BBC FT EurActiv European Voice WSJ EUobserver Le Monde Guardian FT Weekend Expansion 2 WSJ AFP FT Irish Times Irish Independent WSJ Expansion Independent: Lagarde

Eurozone comment round-up

In the FT, Wolfgang Münchau argues that the current approach taken by EU leaders, including the “pact for competitiveness”, is failing to tackle the crisis of the banking sector, the eurozone’s biggest problem. He also expects both Greece and Ireland to need some form of debt restructuring (sovereign and banking respectively) in the near future.

In an interview with FAZ, Citigroup’s chief economist Willem Buiter argues that a rescheduling of Greek and Irish debt is virtually unavoidable.

A comment piece in the Irish Times argues that the constitutional cap on government borrowing (aka “debt brake”), which Germany is trying to push through, would have done little to help Ireland in the current crisis. It would have done nothing to prevent or predict the banking collapse and may have made the ensuing bailout illegal, leaving Ireland in dire straits.

Writing in Sunday’s FAZ, Economics Editor Christian Siedenbiedel criticised the Franco-German plans to harmonise wage and tax policies in the eurozone. He argued that “more central economic planning is not only harmful, but it contradicts the European idea, in which Europeans saw competition as the engine of prosperity.” “A single economic policy deprives weak countries of their greatest opportunity: to lower wages and taxes more than other countries – thereby making their products cheaper on world markets,” he added.

FT: Münchau Irish Times: Leader FAZ: Buiter El Pais: Estefania WSJ: leader WSJ: Real Time Brussels blog FAZ: Siedenbiedel Coulisses de Bruxelles Economist: Charlemagne

Third robbery in two years at the European Parliament

It is widely reported that, during the European Council summit on Friday, two men – one of them armed – entered the European Parliament’s post office in Brussels and got away with at least €8,000. It is the third robbery over the last two years. EUobserver quotes a senior EP official involved in the investigations, saying: “Obviously this is coming from people within the EU community. We are convinced […] It could be assistants, there are dozens of companies that come in and out, journalists. Technically, it could even be MEPs.”

BBC EUobserver El Mundo

Policy Exchange: UK should leave the European Court of Human Rights

A report by think-tank Policy Exchange has urged the Government to leave the Strasbourg-based European Court of Human Rights (ECHR), warning that the UK has become “subservient” to a "virtually unaccountable supra-national bureaucracy.” The author of the report, former Government adviser Dr. Michael Pinto-Duschinsky, noted that “there is strong evidence to suggest that the UK's membership of the European Union and of the Council of Europe does not require continued adherence to the judgments of the European Court of Human Rights should the UK opt for such a withdrawal.”

Speaking on the BBC’s Today programme, Policy Exchange Director Neil O’Brien said: "Although it is not an easy or simple thing to cut our ties with the court, it is possible, and we argue that for a whole series of reasons we should now cut our ties with the court because it is, increasingly by trivialising and over-extending the concept of human rights into areas where it really doesn't belong [...] it's really undermining support for human rights."

BBC Mail Mail: comment Sunday Telegraph: Palmer Sunday Times BBC: Today Policy Exchange report Conservative Home: Montgomerie

The Telegraph reports that a three-day junket by 75 MEPs to Uruguay will cost the taxpayer £1.2m. The trip will come out of the European Parliament’s £10m fund for overseas visits.

Telegraph

Writing in the Sunday Telegraph to mark the paper’s 50th anniversary, its longest-serving columnist Christopher Booker looks back on his 21 years of campaigning against the EU. He argues that EU legislation has “amounted to a mutation in the nature of our governance […] The consequence is that we are now ruled by a vast maze of bureaucratic structures, not answerable to Parliament […] The power of elected politicians at all levels of government has been immeasurably diminished.”

Sunday Telegraph: Booker Open Europe research

An article in the FT Weekend looked at the European Court of Justice’s expected ruling on whether “gender-based pricing” for pension annuities amounts to unlawful discrimination and noted: “No matter that women’s greater longevity is a biological fact. No matter that annuities ultimately pay the same to women as to men over their lifetimes. It seems that an unelected, unaccountable cabal of judges in Luxembourg has given itself the power to overturn basic principles of risk and insurance – and overrule the laws of nature.”

FT Weekend

The Independent on Sunday noted that the Conservative Party is not planning to opt in to a new EU Directive on human trafficking, despite it being voted by almost all UK MEPs – including Tories. A petition launched by the paper urging the Government to sign up to the Directive has so far collected more than 20,000 signatures.

Independent on Sunday

It is widely reported that disagreements between EU leaders at last Friday’s summit meant that the declaration on Egypt did not demand President Hosni Mubarak's resignation. German Chancellor Angela Merkel said that EU leaders “are of the opinion that we should not interfere on that particular issue.”

FT EurActiv European Voice FT Brussels Blog EUobserver El Mundo Le Figaro BBC: Hewitt

EUobserver reports that Romania has reached an agreement with the EU and the IMF over a new “precautionary” loan worth €5bn.

EUobserver

Writing in Gazeta Wyborcza, Polish President Bronisław Komorowski has said he hopes cooperation of the Franco-German-Polish “Weimar group” will help Poland and Europe to achieve its objectives in terms of security, a good EU budget for the next seven years, and the development of Eastern Europe in “our desired direction.”

Gazeta Wyborcza: Komorowski

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OE blog
Franco-German relations: Je t’aime… Moi non plus
OE blog

Open Europe press summary: 4 January 2011

2011-01-04T06:14:00.000-08:00

Europe

49% of Germans want return to Deutsche Mark;

Poles and Czechs not keen on following Estonia into the eurozone

Estonia joined the euro on New Year’s Day, becoming the 17th member of the eurozone. However, the FT/Reuters noted that many eastern European countries remain wary, quoting Polish Central Bank Governor Marek Belka saying, “In the eurozone there are dramatic things happening, so why rush? Czech Prime Minister Petr Necas said that the euro would not be to the country’s advantage for a long time. A poll by German daily Bild found that 49% of German voters favour a return to the Deutsche Mark, against 41% who do not. 51% said they were dissatisfied with the euro.

The FT reported that the European Central Bank increased its intervention in government bond markets over the Christmas period, making €1.1bn in purchases, but failed to reabsorb or ‘sterilise’ funds used to fund its purchases, in turn increasing the risk of inflation. Writing in El País, Chinese Deputy Prime Minister Li Keqiang has pledged that China will continue to buy Spanish government debt in future. Centre for Economic and Business Research has said living standards in the eurozone’s weaker economies would have to fall by about 15% if the single currency was to survive. The Irish Independent notes that Ireland’s banks saw more than €70bn in deposits withdrawn in 2010.

In his New Year’s address French President Nicolas Sarkozy said, “The end of the euro would be the end of Europe.” A leader in FAZ argued that Estonia's accession to the euro means that “Germany has a new ally in order to achieve a stricter stability pact”. In the Telegraph, Ambrose Evans-Pritchard argues that as monetary union “edges closer to a full-fledged debt union” it is “less clear” why countries would wish to take on the “shared burden of Greek, Irish, Portuguese, Spanish, Italian, Belgian, and French debt.”

Government’s EU Bill to face opposition from Conservative and Labour MPs

The Sunday Telegraph reported that David Cameron could suffer a defeat over the Government’s European Union bill, designed to increase parliamentary and popular control over future legislation coming from Brussels. The Bill, which goes to the House of Commons’ Committees next week, faces opposition from backbench Conservative MPs but the article noted that Labour sources signalled that Ed Miliband, the Labour leader, may order his MPs to oppose the legislation too.

On Conservative Home, Martin Howe QC argued, “the ‘referendum lock' provisions of this Bill are essentially the best that can be done within the constraints of our present constitution…the Bill stops us on the escalator of European integration but it does not, and cannot, switch off that escalator”. The Sunday Telegraph argued, “Resisting the pressure for integration is not just about passing a single Bill – it is about remaining watchful in the face of a threat that expresses itself on multiple fronts…Mr Cameron has a strong hand to play in defending Britain’s interests. We urge him to do so.”

Open Europe briefing Open Europe press release Conservative Home: Howe Telegraph Telegraph: Leader Express

Merkel’s coalition partners step up pressure over eurozone policy

FT Deutschland reports that the Bavarian CSU party has slammed German Finance Minister Wolfgang Schäuble's plans for a “political union” within the eurozone. CSU MP Hans-Peter Friedrich is quoted saying “a centralised EU economic policy would certainly be a failure.” Handelsblatt notes that Chancellor Merkel’s junior coalition partner, the FDP, has hardened its stance on the euro. FDP Economy Minister Rainer Brüderle is quoted saying that his party will become more assertive, warning Merkel that “our task is not to be everybody's darling in Europe, but to make Europe fit for the future.” The eurozone “shouldn’t slip into a transfer union,” he added. Meanwhile, an article in the IHT notes that pressure is mounting on German Foreign Minister Guido Westerwelle to quit as leader of the FDP.

Handelsblatt Handelsblatt 2 IHT

Open Europe’s briefing on the EU in 2011 featured in an article in the NZ Herald.

Open Europe briefing Open Europe press release

Le Figaro: EU foreign service appointments “the bureaucratic equivalent of the battle of Trafalgar”

Euractiv reports that EU Foreign Minister Cathy Ashton has concluded appointments for the 28 top positions in the EU’s new foreign service, the EEAS. Only two of the 28 are women, an article in Le Figaro described the process as “the bureaucratic equivalent of the battle of Trafalgar” for French diplomats. The article noted that five out of the 17 directorates-general and divisions within the EEAS have been assigned to Britons, while France has only obtained two.

Euractiv.de Le Figaro

The Hungarian government – which took over the EU’s rotating Presidency on January 2 – has come under increased scrutiny after deciding to introduce a new law to restrict the media and a windfall tax used “selectively” by the government.

The Telegraph reports that Greece has announced plans to build a controversial new wall along its 128 mile-long land border with Turkey to prevent illegal immigration.

Irish Independent Telegraph BBC EUobserver AFP

Handelsblatt reports that the European Investment Bank wants to help countries pre-finance their ‘co-financed’ share of EU structural funds in order to increase uptake. EU funds cannot be spent unless they are co-financed by national or regional governments.

Handelsblatt

The Guardian reported that the European Commission is debating whether the British Government's plan to take over Royal Mail's pension scheme, which has an £8.4bn deficit, constitutes state aid that would give the group an unfair advantage over rivals.

Guardian

A leader in the FT argues, “seven years after joining, Poland is taking its place as one of the leading powers in the European Union.”

FT: Leader

Looking ahead to 2011, the Independent commented on some of the suggestions made to the Coalition by the public on how to improve the UK, arguing that the EU law outlawing 800 traditional vegetables could be repealed.

Independent

Euractiv reports that the Romanian government has threatened to leave the Cooperation and Verification Mechanism (CVM), an EU mechanism to monitor Romania’s law-enforcement system, in response to France’s and Germany’s decision to postpone its accession to the EU’s Schengen area.

Euractiv AFP