Open Europe

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 VoiceEUobserver 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 SueddeutscheMaerkische 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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Ashton’s bureaucratic empireOpen Europe 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).

Reject the Welfare/Warfare State

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

Follow me on Twitter!  http://twitter.com/RepRonPaul

Open Europe

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

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One Challenge down, many to go
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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).