Open Europe

Europe

Government defeats crime, justice and immigration amendment to EU Bill
MPs last night voted, by 313 votes to 26, against an amendment that would have required the Government to get the approval of a referendum before it could waive the UK’s right to opt out of over 90 EU crime and policing laws in 2014. Amendments that would have required the Government to seek Parliamentary approval before opting in to new justice, policing and immigration laws were not pushed to a vote. As a result, under the Bill, Ministers will continue to have full discretion, without needing to seek a vote in Parliament, to decide to opt in to new EU justice and home affairs laws. Documents released last Friday revealed that out of the 13 times the new Coalition Government has had to decide whether to opt in or not to such laws, Ministers have opted in eight times.
Europe Minister David Lidington conceded that that the UK’s 2014 opt out on crime and policing “is important and sensitive for the United Kingdom” and that the Government will announce plans to give Parliament a vote on this decision. He also pledged to consult with Parliament over giving MPs and Lords more power to scrutinise and potentially vote on “significant” new EU justice and immigration laws.
Hansard Open Europe blog Open Europe briefing John Redwood's diary
Merkel’s coalition partners open to Greece restructuring;
Soros: Eurozone crisis could lead to political disintegration of the EU
Handelsblatt reports that the Commission is currently looking into how Greece could restructure its debt. According to the paper, the German government has now acknowledged that the restructuring of Greek debt is unavoidable. Reuters quotes German FDP MEP Wolf Klinz, who chairs the Europan Parliament’s Special Committee on the Financial Crisis, saying: “Greece will not make it without restructuring.” He added that his colleagues in the German coalition government are not opposed to such a move.
The FT’s Brussels blog notes that, at a dinner with Commission President Jose Manuel Barroso this week, German Chancellor Angela Merkel opposed demands to agree changes to the eurozone bail-out fund at next Friday’s EU summit, the deadline set by Barroso. Merkel is reportedly holding out until the scheduled March summit before agreeing any new short- or long-term bail-out arrangements. Le Monde suggests that Merkel cannot be expected to make significant concessions at the March summit, noting it will take place on the eve of crucial regional elections in Baden-Württemberg. Writing in Handelsblatt, Hermann Otto Solms, the FDP Deputy Speaker of the German Bundestag, argues: "We will continue to reject an economic government which goes into detailed government through unilateral orders of the Union."
Speaking on the BBC’s Today Programme, George Soros warned: "There is a real danger that the common currency could lead to the political disturbance of the EU. The crisis could inflict such hardship on slow-speed Europe that it may lead to disintegration." Expansión reports that EU Competition Commissioner Joaquín Almunia has warned that Spanish savings banks – the cajas – could need more than the €20bn in capital injections estimated by the Spanish government.
Meanwhile, the Irish Parliament’s lower house narrowly passed the government’s Finance Bill yesterday. The Irish Independent reports that independent MP Michael Lowry has revealed that he got “friendly advice” from a European Commission official that he would be doing his country a service by voting for the Bill. Meanwhile, in an interview with the FT, Irish main opposition party Fine Gael’s finance spokesman Michael Noonan said: “If you keep forcing such an expensive solution on to Ireland, despite our best efforts, we may not be able to make it”.
IHT FT: Brussles blog Reuters: Dolan IHT 2 WSJ: Nixon Irish Independent: Keenan BBC: Flanders BBC AFP WSJ: Noyer Irish Independent Irish Independent 2 FT: Noonan Jornal de Negocios Diario de Negocios Jornal de Negocios RTVE Expansion WSJ BBC Today: Soros Reuters Irish Times Irish Times 2 Irish Times 3 FT Money Supply Blog Welt Welt 2 El PaisHandelsblatt Handelsblatt: Solms Cash FAZ Zeit: Schieritz Open Europe blog
Time magazine reports on the EU’s delayed and over budget Galileo project. Open Europe’s Mats Persson is quoted saying, "Everything that could have gone wrong has gone wrong".
Time Open Europe research
In a speech to British MEPs, the US’ Ambassador to the UK Louis Susman said, "I want to stress that the UK needs to remain in the EU…we want to see a stronger EU, but also a stronger British participation within the EU… This is crucial if, together, we are going to meet all the global challenges facing us", reports the Parliament.
Parliament
Working Time Directive compensation claims almost quadrupled in one year
The Mail reports that the number of compensation claims made by employees, involving the European Working Time Directive (WTD), almost quadrupled last year from 24,000 to 95,200. David Cameron is today launching an initiative to review laws on dismissal and compensation. Meanwhile, the Times reports that nearly three quarters of surgeons working in the NHS are contravening the WTD’s 48-hour week in order to cover for emergency operations, according to a report by the Royal College of Surgeons.
Mail
In a letter to the FT, UK MEP Sajjad Karim argues against European Commission proposals to create a system of European contract law warning, “Businesses will be burdened with substantial costs in complying with a whole new regime of contract law. These proposals will also introduce “alien” concepts of civil law traditions into the UK’s common law system”.
FT letter
Emission trading exchanges across Europe pushed back reopening dates to allow more time for increased security measures to the EU’s carbon trading scheme to be enforced, reports the FT.
FT
The latest Stern-RTL poll reveals support for German Chancellor Angela Merkel’s CDU party has risen to 37%, its highest rating since December 2009. FT Deutschland suggests this is because Merkel appears bolder and more conservative than before.
FT Deutschland
DPA reports that German opposition parties and national energy companies oppose EU Commission plans to closer coordinate renewable energy production in member states.
DPA FT Onet.pl
The Commission adopted a new initiative on ‘resource efficiency’ yesterday. EurActiv reports that setting national targets is currently under discussion in the Commission and could be proposed at the end of June.
EUobserver EurActiv
The Polish leader of the European Conservatives and Reformists group in the European Parliament, Michal Kaminski, has announced he will resign.
EUobserver
In the Guardian, Assistant Editor Simon Tisdall argues, “Mollycoddling the Uzbek leader behind mass killing in 2005 is typical of Brussels's mixed message on human rights”.
Guardian: Comment
Elsevier reports that when Dutch PM Mark Rutte told Commission President Jose Manuel Barroso that the Netherlands wants to contribute less to the EU budget, Barroso responded that he should think about all the advantages the internal market has brought. A comment in Elsevier by its EU correspondent calls this “a strange remark: an internal market with rules about trade and services doesn’t necessitate pumping around billions of euros”.
Elsevier blog BNR

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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).

Open Europe press summary: 26 January 2011

Europe

MPs to discuss crucial crime, justice and immigration amendments to EU Bill
MPs will today debate the Government’s EU Bill for the third consecutive day. Attention will turn to EU crime, justice and immigration laws, with MPs discussing amendments that could radically increase Parliament’s democratic control over which EU laws the Government can ‘opt in’ to. The UK’s 2014 right to opt out of around 100 EU crime and policing laws is also expected to be discussed. Open Europe has called for a referendum on the 2014 opt out and fully supports the amendments that would grant Parliament, and in some cases voters, via a referendum, more control over deciding which EU justice and immigration laws apply to the UK.
Last night the Government helped to amend the Bill to close loopholes in the ‘referendum lock’ that could have potentially allowed referenda to be avoided on the UK taking part in a European Public Prosecutor and the loss of the UK’s vetoes over certain foreign policy decisions.
Open Europe blog Open Europe press release Open Europe briefing
Germans’ trust in the EU hits all-time low
FAZ reports on a poll conducted by the Allensbach Institute, showing that German citizens’ trust in the EU has fallen to an all-time low. 63% of respondents had "little or no trust" in the EU, up from 51% in March 2010. Only 25% had “very large or large trust" in European integration, down from 37% ten months ago. 68% of respondents had “little or no trust” in the single currency, almost back to the level of 16 years ago. Only 4% could correctly answer the question “Who is Herman Van Rompuy?”
FAZ Allensbach Institute
IMF: Eurozone crisis is the biggest threat to global economy;
Bloomberg poll: 59% think one or more members of the eurozone will leave the currency by 2016
An IMF report released yesterday warns that a deepening of the economic crisis in the eurozone is the biggest threat to the global economy. A poll conducted by Bloomberg, of 1,000 investors, analysts and traders, reveals that 59% think one or more members of the eurozone will leave the currency by 2016, 11% think this will happen within 12 months.
The WSJ reports that yesterday’s debut bond auction to fund the EFSF was nine times oversubscribed; bids were received for over €40bn at yields of 2.89%. El Pais reports that the Spanish government’s decision to inject only €20bn into the cajas yesterday has been received critically by investors. Rating agency Moody's has estimated that the cajas lacks €89bn in capital, reports FAZ.
The Irish Times reports that, ahead of today’s vote in the Irish Parliament, three independent MPs, crucial to the government’s majority, have threatened to withdraw their support for the Finance Bill unless changes are made. A separate article in the paper reports that Germany may concede on lower-interest loans to Ireland and other peripheral eurozone countries if they agree to establish a cap on budget deficit in their constitutions.
Les Echos reports that yesterday EU Economic and Monetary Affairs Commissioner Olli Rehn travelled to Berlin to discuss the possibility of increasing the size and scope of the EFSF with some high-profile members of the FDP, the junior partner of German Chancellor Angela Merkel’s coalition government. However, FAZ notes that Rehn failed to persuade German Foreign Minister and FDP leader Guido Westerwelle. 
Meanwhile, writing in Wirtschaftswoche, Director of the IFO Institute Hans-Werner Sinn argues that calls for an increase of the EFSF are dangerous, adding that they hide the EU’s desire to take over a part of the old debt of troubled member states.
City AM City AM Bottom Line City AM EurActiv City AM WSJ WSJ 2 WSJ 3 WSJ 4 WSJ 5 Irish Times Les Echos Le Monde Irish Times Público City AM FT: Spiegel Le Monde: Ricard BBC: Hewitt Irish Independent: McWilliams El Pais El Pais 2 Irish Times Bloomberg Jornal de Negocios Económico Expansion FT DeutschlandFAZ
Die Welt reports that Germany’s FederalAssociation for Renewable Energies has claimed that it is untrue that an EU-wide harmonised support system for green energy would mean lower prices for consumers. Managing Director Bjoern Klusmann notes that studies have estimated that the implementation costs of EU Energy Commissioner Günther Oettinger’s favoured single support system could be between €50bn and €90bn across the EU.
Welt
On his EUobserver blog, Bruno Waterfield cites Open Europe’s blog post criticising European Parliament President Jerzy Buzek for his comparison between the European Parliament’s two seats and national monarchies in terms of symbolic importance.
OE blog EUobserver: Waterfield 
Handelsblatt reports that EU Justice Commissioner Viviane Reding’s proposals to introduce a common EU system of contract law alongside that of the member states is facing cross-party opposition in the German Bundestag, as well as among businesses and consumers’ associations.
Handelsblatt
In a comment piece in Le Monde, EU Competition Commissioner Joaquín Almunia argues: “To let people believe that ‘protecting’ our firms from competition, especially when it comes from non-European firms, we are making them more competitive internationally, is wrong and dangerous for the future of our economy.”
Le Monde: Almunia
The Independent reports that David Petrie, a Scottish lecturer at Verona University in Italy, has asked MEPs for support in opposing a new Italian law reforming the education system. Petrie claims that the new law will deprive non-Italian lecturers working in Italian universities of basic rights, including the right to equal treatment and the right to due process of law.
Independent  
EUobserver reports that EU Digital Agenda Commissioner Neelie Kroes has raised "serious doubts" about Hungary's new media law in a letter to Budapest and has given the government a two-week ultimatum to explain itself.
EUobserver FT Brussels Blog
Euractiv reports that the European Parliament will fast-track the vote on the EU patent despite numerous unresolved issues and the fact that this process has never before been used for an internal market policy.
EurActiv

UK

The latest figures from the Office of National Statistics show that the UK economy contracted by 0.5% in the last quarter prompting fears of a double dip recession. UK Chancellor George Osborne put the fall chiefly down to the snow, however, the ONS suggested that GDP growth would likely have remained flat even without the impact of the bad weather.
FT Telegraph Guardian
An article in the FT suggests that, despite being a good first step, the Franco-British defence accord still leaves much to be desired when it comes to tackling global security issues.
FT

New on the Open Europe blog

The latest on the EU ‘referendum lock’: This is why the EU Bill should be amended
OE blog

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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).

Open Europe

Europe

The Government’s EU Bill emerges unscathed after second committee day;
MPs criticise lack of time to discuss contentious amendments
MPs last night debated the so-called ‘referendum lock’ in the Government’s EU Bill in the House of Commons. Labour proposed amendments, tabled by leader Ed Miliband, that would have seen a Parliamentary committee decide on the need for referenda on EU treaty changes, but several MPs objected that this would give the government of the day the power to push through new treaties if it held the balance of power in Labour’s proposed committee. Labour’s amendments were defeated by 329 votes to 220.
Conservative MP James Clappison’s amendment, which would have removed the so-called ‘significance condition’ from the Bill, was also defeated by 310 votes to 239. 18 Conservative MPs voted against the Government.
Many MPs complained about the Government’s scheduling of the Bill, which did not leave enough time for many of the most contentious amendments tabled, including Conservative MP Peter Bone’s proposal for an in/out referendum, to be debated. If the Government had been serious about allowing scrutiny of the legislation it could have lifted last night’s 10pm deadline, Mr Bone said, according to the Express. “This was a very bad day for Parliament, for the Government and for politics. And it just builds up bad feeling in the party.” MPs continue to debate the Bill today and tomorrow.
Open Europe press release Open Europe research Express Conservative Home Open Europe blog
IMF calls for EFSF increase;
Spain plans nationalisation of troubled savings banks
The eurozone €440bn bail-out fund, the EFSF, is expected to raise the maximum allotted amount of €5bn in five-year bonds in its first sale today. The FT notes that the bonds are likely to be bought mainly by European funds, although Asian and Middle Eastern investors are expected to buy about 30%. In a report released today, the IMF recommends that the effective size of the EFSF be increased and that the fund be given “a more flexible mandate” to ensure access to funding.
Meanwhile, Euractiv reports on an EU committee made up of technocrats and lawyers from national finance ministries – called the Taskforce of the Eurogroup Working Group – which is currently rewriting EU rules on bail-outs and national debt without public scrutiny. Tax coordination and national debt are among the issues being discussed by the group.  
The Irish Times reports that German Chancellor Angela Merkel is meeting Commission President José Manuel Barroso in Berlin to discuss a package of measures including partial debt restructuring. According to Reuters, Merkel’s spokesman yesterday dismissed a proposal made by German Economy Minister Reiner Brüderle that the EFSF should lend at different interest rates.
Le Figaro reports that French Economy Minister Christine Lagarde said yesterday she is considering an extension of the bail-out plan for Greece, so that it can follow the same timeline as Ireland. FAZreports that eurozone member states have agreed that a possible Greek restructuring should not be considered before details have been agreed on the post-2013 permanent rescue mechanism. The article notes that Barroso has given up his demands for the EFSF to be expanded.
The front-page of El País reports that the Spanish government will nationalise the cajas that have problems in financing themselves in September. The Telegraph notes that the Spanish government has also required that Spanish banks boost their core Tier One capital ratio to 8%. Spanish Economy Minster Elena Salgado is quoted saying that capital injections into the cajas would “in no way exceed €20bn”. However, FAZfeatures estimates from experts showing that the Spanish banking system faces write-downs of more than €100bn, with the cajas accounting for half that amount.
According to the Irish Times, the Irish Government and main opposition parties have agreed to get the Finance Bill through both the Houses of Irish parliament by the end of this week, clearing the way for a general election on 25 February. The Irish Independent reports that European Trade Union Confederation Secretary-General John Monks has accused the Commission of traying to push down wages.
Meanwhile, the WSJ reports that Yu Yongding, a former adviser to China's central bank, has written that China shouldn't buy eurozone government bonds directly until the euro zone works out a permanent crisis resolution mechanism, to avoid the risk of "turning good money bad."
ZeitIrish Times RTE Telegraph: Evans-Pritchard Irish Independent Irish Times Irish Times 2 Irish Times: O'Brien Telegraph FT FT 2 FT 3 FT 4 IHT Euractiv AFP AFP 2 Le Figaro FT Alphaville Handelsblatt FAZ WSJ Le Figaro 2 El Pais El Pais 2 Times WSJ WSJ 2 WSJ 3 New Europe
UK and Netherlands to revive Services Directive and create a mini-free market
The Guardian reports that UK PM David Cameron and Dutch PM Mark Rutte are trying to garner support to revive the EU’s Services Directive under enhanced co-operation which could see the Nordic countries, Baltic states, UK and Netherlands adopting the original, more liberal Services Direct on their own. In an interview with the paper Rutte said, "The services directive has been watered down, and nothing has been left, because countries could not agree."
Guardian Spectator: Coffee House blog
Die Zeit reports that demonstrations are planned for next weekend to protest against unsustainable agricultural policies and EU export subsidies. Georg Häusler, Head of Cabinet for the EU’s Agricultural Commissioner, is quoted saying, “On the one hand the policy promises an ideal world but on the other German consumers now face a food scandal of major proportions”.
Zeit
€1.3m of EU funds will fund a project training up to 3000 Polish civil servants polite and efficient ways of serving clients, reports the Parliament.
Parliament
Dutch PM: Netherlands wants a permanent rebate on the EU budget
Ahead of this year’s negotiations on the next EU multi-annual budget, Dutch PM Mark Rutte said that the Netherlands wants a permanent rebate on the EU budget, similar to the UK’s, reports NOS. Meanwhile, in an interview with EurActiv.cz, Czech Agriculture Minister, Ivan Fuksa, dismissed the Commission’s proposal to create an additional transition period to CAP payments to even out differences in payments between 'new' and 'old' EU members.
Euractiv NOS Euractiv Dutch News
German Economics Minister warns EU renewable targets might lead to energy blackouts
Focus Magazine reports that the German Ministry of Economic Affairs has warned that Germany may in future experience energy blackouts, as the country doesn’t have the capacity to cope with the EU’s renewable energy targets, which oblige member states to source 20% of energy from renewables by 2020. Liberal MEP Holger Krahmer is quoted saying,  “this shouldn’t surprise anybody given the irrational energy policies of excessive reliance on renewables”. Meanwhile, FAZ cites a Commission paper which claims that member states will only reach a 10% renewable share of their 2020.
Focus Welt FAZ Handelsblatt Open Europe Research FT DeutschlandFT Deutschland
The Express reports that local councils are introducing maximum limits on the amount of rubbish collected from households in order to meet EU targets.
Express Mail
The Commission has signalled that Hungary's new media law may be in breach of the EU's Charter of Fundamental Rights, but concedes it has no powers to challenge Hungary's media council.
EUobserver Euractiv France
El Pais criticises the EU for welcoming Islam Karímov, the Uzbek dictador accused of human rights abuses, to Brussels “with the red carpet”.
IHT El Pais Coulisses de Bruxelles Straneuropa Euractiv EUobserver European Voice
ORF reports that "the EU wants to teach Facebook manners". EU Data Supervisor Peter Hustinx is quoted saying, "there should be stronger controls on applying data protection law. We need more muscles in the system. Laws should be harmonised more".
ORF
El Pais reports that the EU has withdrawn €300,000 of agricultural subsidies from Valencia due to delays by the regional agricultural council that administers the payments.
El Pais 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).

Open Europe press summary: 24 January 2011

Europe

New powers for EU to investigate crimes would not be covered by ‘referendum lock’
MPs will start the first of three days of debate on the Government’s EU Bill today, with attention turning to the Bill’s so-called ‘referendum lock’. Open Europe has welcomed the Bill but has argued that it should be strengthened. The NOTW quoted Open Europe’s Stephen Booth arguing that loopholes in the referendum lock mean that Parliament and voters do not have a say over which EU crime, justice and immigration laws apply to the UK. He argued that people deserve to be consulted on the European Commission’s plans to grant Eurojust, the EU’s judicial body, the authority to launch criminal investigations. Stephen is quoted in the Express and Open Europe’s briefing on the loopholes in the Bill is also cited by Euractiv.
On Conservative Home, Europe Minister David Lidington argues in favour of the Bill writing that it will “strengthen our democracy” and that he wants it to become “a natural part of our constitution.”
Open Europe briefing Open Europe press release Euractiv Express Conservative Home: Lidington Conservative Home: Bone
Details of Irish Finance Bill uncertain as PM resigns as head of party
Irish PM Brian Cowen announced on Saturday that he is standing down as leader of Fianna Fáil, but will remain as Taoiseach until the general election. Fianna Fáil’s coalition partner, the Green party, formally withdrew from the coalition on Sunday, prompting calls for an earlier election to be called. The Greens confirmed they will still support the Finance Bill, which is crucial to secure the release of EU-IMF bail-out funds. The government is meeting with opposition leaders today to try to negotiate an agreement on the bill by the end of this week.
Meanwhile, in an interview with Dutch TV program Buitenhof, ECB President Jean-Claude Trichet, dismissed fears of an Irish or Greek default as "absurd". Het Financieele Dagblad notes that he acknowledged implicitly that debt restructuring was an option by calling "hard consolidation" in some countries "the route we have in mind”. In an interview with the WSJ, Trichet voiced concerns over rising world inflation, indicating that the ECB could raise interest rates, a move which would threaten recovery in peripheral eurozone countries.
The front-page of Handelsblatt reports that German Foreign Minister Guido Westerwelle rejects increasing the eurozone bail-out fund, saying that "making national debt common would take away the pressure for budget consolidation". In an interview with Der Spiegel, Eurogroup Chairman Jean-Claude Juncker suggested that “all European leaders are in agreement [on the eurozone’s €440bn rescue fund, the EFSF]. We don't want to expand the bailout fund, but we do want to make sure that it reaches its intended size”.
In an interview with FD, ECB Chief Economist Jürgen Stark has said: "We need to strengthen economic governance. This is a next step towards greater political union [...] This is clearly stated in the Maastricht Treaty: all member states shall regard economic policies as a matter of common concern.”
Les Echos reports that, following bilateral talks held in Paris on Friday, French President Nicolas Sarkozy and Spanish Prime Minister José Luis Rodríguez Zapatero have acknowledged their “complete identity of views on European issues, especially as regards the creation of a European economic government.”
City AM Guardian Telegraph Irish Independent Irish Independent: Leader Saturday’s Guardian FT Weekend FT Weekend 2 EUobserver WSJ Euractiv European Voice City AM Telegraph FT FT 2 Independent Publico The Times RTE Les Echos Sunday Times WSJ 2 WSJ FD FD English version Buitenhof Handelsblatt Handelsblatt 2 Handelsblatt Welt
Anibal Cavaco Silva was re-elected yesterday as Portuguese President. The election attracted the lowest turnout in the history of Portuguese democracy.
El Pais Irish Times Diário de Notícias Journal de Notícias Expansion
Eurozone comment round-up
In the FT, Wolfgang Münchau argues that “the best solution [for the eurozone], as ever, is the least probable: a large but limited increase in the EFSF’s lending ceiling; and a large bond purchase programme accompanied by the restructuring of the financial sector. That would be a step towards crisis resolution that everybody would understand.”
On his Telegraph blog, Ambrose Evans-Pritchard writes: “José Manuel Barroso, the ex-Maoist President of the European Commission, has told Ireland that it is entirely and alone responsible for the disaster that has befallen the Irish people […] Once a Maoist, always a Maoist, I suppose. Mr Barroso misrepresents what happened, falsely denies any EU culpability, and equally falsely misclaims a “solution” – unless you count the solution of the economic graveyard.”
An op-ed in Handelsblatt by former Chief Editor Bernd Ziesemer warns against “the fatal side-effects of euro therapy” and asks “how do we prevent these measures leading to an even greater democratic deficit in Europe?”
In a separate comment piece, Handelsblatt’s finance commentator Frank Wiebe warns that the idea of bond buy-backs "is only a variation on bundling all national debts together on the market into EU debts, thereby burdening the creditworthiness of the EU."
Handelsblatt: Ziesemer WSJ: Stelzer FT: Münchau Telegraph blog: Evans-Pritchard Independent on Sunday: McRae Handelsblatt: Wiebe
Swedish Europe Minister: Many elements in the EU budget do not add value
In an op-ed for Le Monde, Swedish Europe Minister Birgitta Ohlsson argues: “The EU budget should finance activities which bring real European added value […] At the present time, a big part of the EU budget includes elements which do not meet these criteria.” Ohlsson goes on to suggest that “capping the [next multi-annual] budget well below 1% of the EU’s GNI should represent a reasonable target.” She further argues that “the reduction and modernisation of the EU budget should involve a reduction of agricultural spending […] Structural funds should be focused on those areas across the EU which need them the most.”
Le Monde: Ohlsson
Head of European Parliament compares EP's two seats to monarchy
In an interview with Euractiv, European Parliament President Jerzy Buzek has said he is opposed to abolishing the European Parliament’s monthly commuting session to Strasbourg, arguing: "Strasbourg is a symbolic place. Symbols are important. We can also ask whether for some member states it is right to keep a monarchy. But for these countries that has an historical meaning and it is still an important part of public life and interest."    
Euractiv: Buzek
Saturday’s Guardian reported that the EU has been accused of running a “Mickey Mouse” carbon trading scheme after some traders experienced heavy losses due to a botched statement released by the European Commission on Friday. Meanwhile, today’s Guardian notes that the EU’s Emissions Trading Scheme could remain closed for longer than expected following last week’s cyber attacks on the Czech, Austrian and other national markets.
Saturday’s Guardian  Guardian EUobserverEuractiv
Ashton taking full advantage of EU tax loophole
The Telegraph reports that EU Foreign Minister Baroness Catherine Ashton pays the reduced EU tax rate on her earnings, even though she remains a British resident, unlike most other EU officials. While the reduced rates are automatic, EU officials, including Lady Ashton can choose to pay national tax rates, giving the difference to the exchequer in their home country, but most, including her, do not.
Telegraph FT Deutschland
In the Sunday Telegraph, Christopher Booker looked at the increasing costs of the EU’s Galileo satellite system and argued: “No one can predict what the final cost of this murky and mismanaged venture might be, could it ever be got successfully off the ground. The ways in which we pay for it are as hidden as the true purpose of the project itself.”
Sunday Telegraph: Booker OE research OE blog
Saturday’s Times featured an interview with Labour peer Lord Winston discussing the Government’s plans to reform the NHS. Lord Winston suggested that “we need to renege on the European Working Time Directive because consultants are being appointed as surgeons before they have enough experience. They will ring up at night and say ‘Can you give me a hand, I have never done this kind of operation before’.”
Saturday’s Times: Lord Winston
AFP reports that EU Internal Market Commissioner Michel Barnier has said that he will present a “European strategy for intellectual property” during the next spring.
AFP
Euractiv reports that yesterday around 34,000 Belgians took to the streets to demand an end to the country’s political stalemate and the formation of a new unity government.
Euractiv Le Monde
The Telegraph notes that Europe's banks are facing an exodus of staff to US rivals as regulatory and political pressure drives a growing pay divide between financial institutions.
Telegraph
An article in Saturday’s Mail noted that last week’s ruling by the Strasbourg-based European Court of Human Rights – which condemned Belgium for sending an Afghan asylum seeker back to Greece under the EU’s Dublin II Regulation – could make it easier for asylum seekers to enter the EU through Greece and move to other EU member states in future.
BBC EUobserver Euractiv European Voice Saturday’s Mail FT Weekend

World

An article in Handelsblatt criticises “the way the EU deals with despots”, noting that “the EU wants to help human rights break through, but is really following economic interests”, giving the EU’s past attitude towards Tunisia and its current attitude towards Libya as examples.  
Handelsblatt

New on the Open Europe blog

Latest on the EU ‘referendum lock’: Is the Miliband amendment a trap?
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Franco-German relations: Je t’aime… Moi non plus
OE blog

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