Thursday, 17 July 2008

EU BRIEF



Open Europe
 
Europe  
 
Sarkozy advisor: Irish should vote again, but on a slightly different text
Sarkozy pulls out of meeting with 'No' campaigners
Numerous papers report that the Irish government is "privately furious" following French President Nicolas Sarkozy's demand on Tuesday that Ireland will have to hold a second Lisbon Treaty referendum.
 
"It is far, far too early to be talking about a referendum or about some specific policy to go forward," the Irish European Affairs Minister, Dick Roche, told Newstalk radio. He said that "rash" proposals were "not helpful", adding, "That's not the way to formulate a policy in response to a referendum." Foreign Minister Micheál Martin said: "We have no intention of letting ourselves be intimidated by anyone. We are going to study it from the Irish point of view, according to what best serves Ireland's interests."  
 
However, when asked if he favoured holding a second referendum, Taoiseach Brian Cowen did not exclude the possibility, telling the Irish Independent: "The Government haven't given any thought about where we go from here until we actually assess, examine and analyse the outcome of the referendum."
 
The Irish Times reports that plans for Sarkozy to meet in public with anti-Lisbon Treaty campaigners have been scrapped, "following last-minute nervousness" on the French side.
 
According to AFP, a key adviser to Sarkozy confirmed on French television yesterday that a second vote was a very real possibility. "One of the solutions would be indeed to eventually ask the Irish to re-vote, but probably not on a text that would be exactly the same," said Henri Guaino.
 
Le Figaro reports that "the idea of a new vote worries Ireland".  On his blog, Libération journalist Jean Quatremer writes: "As the probability of Ireland's total political isolation becomes more likely every day, what is the solution to the crisis?  In order for the Lisbon Treaty to be able to enter into force, a new referendum must inevitably be organised... As no-one wants to renegotiate a new treaty - with the risk of a new crisis - the idea is to offer Ireland the same text accompanied with declarations designed to respond to the Irish concerns."  He says if the Irish vote no again, "the Lisbon Treaty would be definitively buried."
 
The Economist blog notes that "Mr Sarkozy had his work cut out for him in Ireland even before his latest remarks. By appearing to dictate a preferred course of action to the Irish, he has made his job that much harder."
 
Roger Cole of the Peace and Neutrality Alliance argues in the Irish Times that the No vote struck a blow against Sarkozy's "militarist" vision of the EU.
 

OECD: biofuels "costly and ineffective", and cause food price rises

A new report from the OECD estimates that subsidies for biofuels in the US, Canada and the EU will more than double this year to $25bn. It notes that "Overall, the continuation of current biofuel support policies would reduce greenhouse gas emissions from transport fuel by no more than 0.8 percent by 2015", and will cost $960 to $1700 for each tonne of carbon saved.
 
It says that "Current biofuel support measures alone are estimated to increase average wheat prices by about 5 percent, maize by around 7 percent and vegetable oil by about 19 percent over the next 10 years". The report estimates that "The new US and proposed EU initiatives could further increase commodity prices by a similar magnitude."
 
UK ratifies Lisbon; Miliband to give statement today
PA reports that Britain has officially ratified the controversial Lisbon Treaty. The Government confirmed that the final stages of passing the agreement have been completed, and the documents have been lodged in Rome. Foreign Secretary David Miliband is due to deliver a statement to Parliament on the matter later. The decision was taken despite the fact that Stuart Wheeler is planning an appeal.
No link
 
Brussels proposes EU tax hike on cigarettes
The European Commission yesterday unveiled steps to tighten taxes on cigarettes and tobacco across the EU, in an effort to encourage people to stop smoking and combat smuggling. Under the plan, the minimum tobacco tax level for cigarettes and fine cut tobacco in the 27 EU nations would gradually increase over the next six years to 63% of the price on average from 57% currently. The impact could be dramatic in some countries: "In countries like Denmark or Finland, the price increase will be around 6%", the European Tax Commissioner, László Kovács, predicted. "In countries like Poland it will be 46%".
 
EU ministers agree to give fishermen 600 million euros in additional aid amid warnings of more over-fishing
EU ministers yesterday agreed to a 600 million euros emergency aid package for the fishermen "hardest hit" by the current fuel price crisis. Berlingske reports that it is unclear whether the money will come from the CAP budget or additional contributions from the national budgets. Sweden and Denmark opposed the move, arguing that it would lead to even more over-fishing. It is estimated that 88% of European waters are already over-fished, and that the EU's fishing fleet is currently 40% larger than it should be.  
 
EU music proposals criticised by performers and consumers
PA reports that songwriters have criticised the EU's decision to end the national monopolies that collect royalties on their behalf. The current arrangement is of 24 exclusive domestic territories with royalty collecting agencies restricted from operating in other areas. The new rules would remove that restriction allowing performers to switch between agencies.
 
Robin Gibb, Head of the International Confederation of Societies of Authors and Composers (CISAC), has said the move would lead to," a catastrophic fragmentation of repertoire and therefore to legal uncertainty for music users". He added that, "the creative community has told the Commission that the community remains deeply concerned about a decision which claims to act in the name of creators but which in fact is being imposed on them against their express wishes"
 
Meanwhile a move by the EU to lengthen the copyright period of recordings has been criticised by consumers who fear it could spell the end of cheap compilations of old recordings. The UK Government is "not convinced" of the need for new legislation.
Times PA no link
 
King Albert leads crisis talks in Belgium
The Guardian notes that King Albert II of Belgium is holding talks with leaders from the Dutch-speaking Flemish majority and French-speaking minority in a bid to resolve the most recent dispute between the blocs, which some say threatens to break up Belgium. The King has so far refused to accept the resignation of Yves Leterme, a Flemish Christian Democrat and Prime Minister for four months. It is noted that King Albert's goal is to persuade Leterme to form a new coalition government to deal with the country's growing economic problems and lead a reform programme which could include further devolution.
 
Carbon market commentary
Kevin Parker of Deutsche Asset Management argues in the FT that carbon prices are likely to rise substantially under the EU Emissions Trading Scheme (ETS). A leader in the WSJ criticises the EU's decision to include airlines in the ETS.
 
EU to encourage 'green consumption' with new eco-labelling
The EUobserver reports on the decision by the European Commission to extend labels on products which encourage consumers to purchase environmentally friendly goods; much like the energy consumption labels on products such as fridges and dish washers. The scheme hopes to encompass 40-50 product groups by 2015, importantly including food and drink. 
 
Conservative MP Robert Walter has a letter in the FT arguing that a joint Anglo-French defence is an opportunity, not a threat. "Both nations have aspirations for foreign policy projection and military technology beyond their individual budget capacities", he argues.
 
Berlin will maintain restrictions on workers from the EU accession states until 2011.
 
Bulgaria is likely to lose 500 million euros in EU funding because of corruption.