Europe
EU to bring forward new financial regulations within weeks; Germany unveils shopping list of new legislation
In a speech yesterday, Nicolas Sarkozy launched what Le Figaro describes as a "real crusade" against "speculators" and the "excesses of financial capitalism." He laid out a set of proposals including more regulation and control of banking activities and capping of the pay of the leaders of financial organisations. He said "self regulation is finished."
German Finance Minister Peer Steinbruck said the crisis marks the beginning of a multi-polar world, where the US is no longer a superpower. He blamed the "irresponsible" policies of the US for the crisis, claiming they were "simplistic" and "dangerous". Steinbruck yesterday outlined a series of "draconian" financial regulations, according to Eurointelligence. The article reports that he wants to make short-selling illegal, and to impose legislation forcing banks to take on 20% of the credit risk when selling on credit for securitisation. The FT notes that other proposals included a crackdown on variable pay for bankers. France and Germany will set up a working group to consider tougher regulation.
The EU Commission is also drafting legislation to force banks to retain some 10% of the credit risk. According to Eurointelligence, Jan Pieter Krahan, Professor of finance in Frankfurt, has argued that this is precisely the type of regulation we do not need, as the right level of risk sharing cannot be determined globally, but depends on the type of securitisation. Depending on how the package is construed, 20% can be either too little or too much, he argues.
A separate article in the FT says, "The next few weeks will be critical. That is when Brussels will bring forward legislative proposals to beef up the way cross-border banks are supervised", together with new rules for credit rating agencies. The banking sector claims the EU would be put at a competitive disadvantage, and the legislation has been attacked as too prescriptive. "There is a serious risk of producing regulation whose widespread ramifications have not been sufficiently thought through for lack of time", say German banking industry associations.
The Economist argues that "Mr Sarkozy's call to make high finance 'moral' has deep roots. When crisis management turns to a debate on new regulation, Americans and Europeans will start from different places."
FAZ Eurointelligence FT Le Figaro EUobserver Economist FT FT 2
Idea for UK amnesty for illegal immigrants could clash with new EU Immigration Pact
In the Independent, Anthony Browne, Director of Policy Exchange, argues that illegal immigrants who have been living in the UK for seven years should be offered an amnesty which allows them to register as residents, pay taxes and earn citizenship, instead of the Government "turning a blind eye to them". He argues that "Doing more to enforce immigration law, while accepting the reality that there are long term illegal immigrants who have settled well, would be far fairer, better for society and more economically efficient. All we need is for policy makers to accept reality."
Meanwhile, the BBC reports that EU ministers have agreed on a sweeping new Immigration Pact, which will make it harder for EU member states to grant mass amnesties for illegal migrants. The Pact, which has political rather than legal force, urges member states not to offer mass amnesties to illegal immigrants, as done in the past by Spain and Italy, and to ensure that foreigners without papers are removed.
EU ministers also agreed on an EU "blue card" scheme to attract workers in demand, such as engineers and nurses. Le Figaro describes the Blue Card as "the equivalent of the famous US 'green card'", but El Pais quotes French Immigration Minister Brice Hortefeux - who is pushing the scheme - as saying: "the blue card is not the US green card."
Independent-Browne Independent BBC El Pais
UK Government attacks EU targets for renewable energy
The UK Government is lobbying for important changes to the EU target of sourcing 20% of energy from renewable sources, according to the BBC. The Government says targets for renewables use in aviation are pointless while there is uncertainty over the use of biofuels. A BERR spokesman said that the rules demanding a percentage of renewables on new and refurbished homes were too prescriptive, arguing that it should be up to member states to decide on their own strategies for homes, so long as they stayed within the overall target. The same logic applied to the EU's proposed binding interim targets for renewables, he added.
Claude Turmes, the MEP leading negotiations on the renewable energy legislation for the European Parliament, told the BBC: "I find it outrageous. Prime Minister Brown came here and said he would stick to the 20%. Now his civil servants in Brussels are not following that. They are trying to dilute the target in the directive - they are attacking it."
Government unveils first UK ID cards - with EU design
There is wide coverage of yesterday's unveiling of Britain's first ID card, which will be issued to foreigners from outside the EU, initially those renewing their permission to stay in the UK as students or on the basis of marriage. Several papers report on the absence of the UK flag and the dominance of EU symbols on the card, noting that they adhere to a common design set by an EU directive. Open Europe's Lorraine Mullally is quoted in the Telegraph saying, "The use of EU symbols, instead of national ones, is part of a wider attempt to promote the idea of a common European citizenship, which EU federalists have been pushing for some time. The Government seems happy to buy into this."
Telegraph Mail Mirror Independent Independent-editorial Daily Mail
Austria: no compulsory referendum on future revisions of EU treaties
Agence Europe reports that just days ahead of the general election in Austria, the Social Democrat Party (SPÖ) has failed in its attempt to introduce
into the Austrian constitution compulsory referendums on any future substantial changes to the Treaty of the European Union. During the vote in the Austrian parliament this week, the proposal by the far right party (FPÖ) received the support of the SPÖ and an absolute majority of parliamentary representatives, but did not reach the two-thirds of votes required for any constitutional change. The Christian Democrat Party (ÖVP) and the Greens voted against. This week in parliament, the President of the Social Democrat Group, Josef Cap, justified the SPÖ's position by the "need to better integrate citizens in the process of European construction to avoid the gap between them and the decisions of the European Commission and government from growing still wider".
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EU countries to take up to 10,000 more Iraqi refugees
European Union countries, responding to appeals from the United Nations, are ready to take up to 10,000 more Iraqi refugees and will send a mission to the Middle East to identify the most vulnerable people as Iraq's neighbours struggle to house and feed the refugees. The European Commission declared yesterday it wants to set up an EU-wide scheme for the resettlement of Iraqi refugees.
Quinn: Irish political class trying to stifle opposition groups such as Libertas
The Irish Independent has a comment piece from David Quinn arguing that the Irish political class is attempting to ensure that no organisation like Libertas can ever appear on the scene again. He argues that these "moves are being advanced in the name of democracy but in fact they are deeply undemocratic in that they will make it harder than ever to challenge the existing political cartel."
EU to ask US Congress about alleged American funding of Libertas
The European Parliament is to ask the US Congress about alleged US fundraising for the Irish anti-Lisbon Treaty lobby group Libertas, after MEPs raised concerns during a Parliament session earlier this week. The EP may send a delegation to the US and intends to "closely monitor" the issue of Libertas' funding, sending all information to the Irish "Standards in Public Office Commission" (Sipo). Reportedly, MEPs are concerned about the prospect of Libertas launching a campaign across the EU for next year's European parliamentary elections, as suggested by the group's Chairman, Declan Ganley.
Ganley said the EP's move was a throwback to an earlier period in history, while being quoted in the Irish Independent: "In the past, those that dared to defend freedom and democracy were forced to pay an inordinate price. The allegations are utterly baseless." Irish MEP Kathy Sinnott also criticised the move, saying that the delegation to the US could do better things than inquire about Libertas funding. The Irish Independent's David Quinn comments: "Now it looks like insanity has taken hold as well. Whether the insanity is temporary or permanent remains to be seen although I suspect the latter is the case."
Meanwhile, Agence Europe reports that the conference of presidents of the political groups of the European Parliament held a long debate yesterday on the financing of the Irish "no" campaign against the Lisbon Treaty, calling for all information on the origin of funds for Libertas to be forwarded to the Standards in Public Office Commission (SIPO) in Ireland.
Irish Times Irish Independent Irish Independent-Quinn Open Europe blog Dan Hannan blog
European Parliament rejects calls to regulate blogs but cracks down on blogging EP official
EUobserver reports that the European Parliament has rejected calls for the EU to initiate a process to regulate bloggers.
However, at the same time, Gawain Towler, Press Officer of the UK delegation to the Ind/Dem Group of the European Parliament, has posted his last blog on England Expects after being told by the Secretary General of the Parliament that his activities contravene the Staff Code of Conduct.
Iain Dale Open Europe blog England Expects Julien Frisch blog
Irish government complains about "marriages of convenience" and abuse of free movement rules
The Irish Independent reports that Ireland's immigration authorities' efforts to crack down on marriages of convenience have been hampered by a European Court of Justice (ECJ) ruling on the Freedom of Movement directive. Irish officials say bogus marriages are sold for between 3,000 and 4,000 euros to illegal immigrants wishing to gain residence in Ireland. Irish Justice Minister Dermot Ahern has criticised the ECJ's ruling, telling a meeting of EU justice and home affairs ministers in Brussels yesterday, "It is clear that this sort of safety net will lead to increased abuse of the directive and undermines the work being done in respect of combating illegal migration." The Irish Times notes that the European Commission, Sweden, Portugal and Cyprus have come out strongly against reopening the directive, while Denmark, Germany, the Czech Republic, the UK and Austria support the Irish government.
EU fishing quotas force struggling fisherman to waste fish stocks
The BBC reports that the Scottish Government estimates that one million tonnes of valuable fish are dumped annually as a result of EU laws, prompting the recent fishing industry conference to brand the current rules as "madness". The Scottish Environment Minister is quoted in the Scotsman calling the wastage "appalling".
The Scotsman highlights the fact that at a time of "high food prices and ...economic downturn" trawler men should be catching less and landing more.
MEPs back tough stance on car pollution
Despite strong pressure from what the Guardian calls a 'Franco-German Pact', the EU Parliament has upheld ambitious plans to reduce carbon dioxide emissions from new cars. The planned EU regulations, which would force car manufacturers to reduce emissions by 17% or face 'stringent' fines, were opposed by the powerful German car lobby and by current EU President Nicolas Sarkozy.
Ivan Hodac, the Secretary General of the European Automobile Manufacturers' Association, quoted in the International Herald Tribune, says that this "blow" to manufacturing "is bad news for Europe, especially with the overall economic circumstances deteriorating already".
Commission poll: 97% of British people are unaware of European elections.
Jörg Haider, the far-right politician who triggered EU sanctions against Austria when part of the 1999 government, is aiming for a surprise comeback in elections this weekend.
Ireland has become the first country of the eurozone to go into recession.
World
The front page of the Guardian notes that Israel was giving "serious thought" to attacking Iran this spring, but President Bush refused to give his approval for the move, wary of sparking all-out war.
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