Thursday, 11 December 2008

Brussels today - horse trading ahead!

Thursday, 11 December, 2008 10:24 AM

This EU Council meeting - “Summit” - looks like being contentious and 
possibly fractious.  There is no easy consensus on anything!

The Irish impasse [I am posting separately on that!] will be assessed 
and then left to fester for 10 months.  There is asbsolutely no 
guarantee that the Irish love their politicians so much that they 
will now cave in.  After almost all their politicians accepted the 
Lisbon Treaty as it was in the first place! 
  With some cosmetic 
tweakings the Irish  may be happier now.  Who knows?

Then there’s the mad rampant March of The Greens.  It is difficult to 
comment calmly on something so fundamentally flawed in all its 
assumptions but Richard North has a go!

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EU OBSERVER   11.12.08
EU leaders gather for rift-packed summit

    LUCIA KUBOSOVA


BRUSSELS - Almost two years after adopting ambitious green goals, a 
year after signing the new Lisbon Treaty and some sixteen months 
after the first signs of the financial crisis, EU leaders are meeting 
in Brussels on Thursday (11 December) to write a new chapter in the 
three long-running dossiers.


The top-level gathering will kick off at 3 p.m., which is earlier 
than usual, with some diplomats predicting what will certainly be 
quarrelsome talks could drag on until late Friday or even early 
Saturday, as the host of the meeting, French president Nicolas 
Sarkozy - whose country is finishing its six-month chairmanship of 
the EU, is ready to do all it takes to get a deal.

But it will be his Irish colleague, Prime Minister Brian Cowen to 
open the show by presenting Dublin's analysis on why the Irish voters 
rejected the EU's reform treaty in the June referendum and what can 
be done to rescue its ratification.

But judging by the draft conclusions put forward by the French 
presidency last night, Ireland has already achieved enough backing 
from both Paris and some other capitals to win a promise of all 
"necessary legal guarantees" on the controversial issues for the 
country of four million.
"Taxation policy, family, social and ethical issues, and common 
security and defence policy with regard to Ireland's traditional 
policy of neutrality" should all be safeguarded in a separate 
declaration to be adopted later, the Irish Times has reported.

Moreover, Dublin could see a pledge to retain the country's 
commissioner if all other EU leaders follow the French line – all in 
a bid to enable the Irish government to hold the second referendum by 
31 October, according to the draft document.

It would mean that one of the key elements of the EU's institutional 
reform would be changed despite previous pressure on member states 
not to touch the package when the bloc was turning the former 
European Constitution into the Lisbon Treaty, following the negative 
referendums in France and the Netherlands.

Germany and the Benelux countries have criticised the idea, while 
some smaller states argue they had always preferred that the one-
commissioner-per-member-state principle be preserved in the 
composition of the bloc's key regulating body.

Under the Lisbon Treaty, the commission would be slimmed down to 
representing just two-thirds of the countries at any one time as of 
2014, "unless the European Council [premiers and presidents of member 
states], acting unanimously, decides to alter this number."

How much is enough?
Another hot issue at the summit will be Europe's grand strategy for 
economic recovery. Brussels has suggested that the Union invest 1.5 
percent of its GDP to boost economic activity amid projections of a 
severe recession in 2009.

While the plan was "in principle" accepted by the bloc's finance 
ministers last week, Germany, the bloc's biggest economy, but also 
several other countries are reluctant to promise additional financial 
injections beyond what they have already planned for their domestic 
pump-priming plans.

But according to calculations by Bruegel, a Brussels-based think-
tank, the EU-wide direct fiscal boost is currently projected to reach 
only 0.6 percent of the EU's GDP by the end of 2009, substantially 
below the advertised target.

Moreover, some countries have complained that the summit conclusions 
as drafted by the French presidency suggested the recovery-related 
goal should be a public investment boost of "at least" 1.5 percent of 
EU's GDP.
"We don't want to create an image that whenever EU leaders meet, they 
raise this figure," one diplomat following the negotiations commented.

Apart from the debate on the amount of public money to be pumped in 
the economy, EU leaders are likely to cross swords over the list of 
measures to be supported, with Britain keen to see VAT cuts included, 
as part of its own recipe for recovery, against the opposition of 
most other countries.

Toughest battle
But if anything is to cause the leaders to be up all night, it will 
be the complicated arguments over the climate change package.

Although the member states had agreed on most elements of the 
legislation before this week's top-level meeting, there are still a 
couple of areas where they had not been able to strike a compromise 
since the European Commission put forward the bill in January.

There are two camps of opponents of the green plan, among both 
western wealthy countries and states in central and Eastern Europe.

On one hand, Germany has been resisting the attempts by most "new" 
member states to achieve greater compensation due to their lower 
economic potential to be able to face the costs of the required 
investments.

German Chancellor Angela Merkel also made clear this week that the 
summit "must not take decisions that would endanger jobs or 
investments in Germany."
"I will see to that," she said, referring to the Berlin's bid to 
allow key German industries to be awarded emission allowances in the 
projected auction scheme for free.

Italy is also threatening the result of the talks due to concerns 
over the impact of the package. "If I see that Italian interests will 
be hurt in an excessive way, I will use our veto rights," the 
country's prime minister, Silvio Berlusconi warned on Wednesday, 
according to Italian media.

On the other hand, the Visegrad four countries of central Europe, the 
three Baltic states plus Romania and Bulgaria are presenting a united 
front in floating various proposals on how they should be compensated 
for their previous efforts to cut CO2 emissions.
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EU REFERENDUM Blog     11.12.08
Creaking at the seams

There has been a huge amount of media coverage recently about the 
talks on "climate change", with both the Poznan conference and the EU 
coming unstuck as the growing recession hits home.


Nevertheless, it seemed best to hold fire until we see the outcome of 
Poznan and of the European Council (which actually starts today and 
runs until tomorrow). Offering a blow-by-blow account is rather like 
reporting on the gibbering of madmen in a lunatic asylum – and about 
as interesting. The only problem is that these madmen are running the 
asylum, and many governments as well.

What particularly struck home, however, is just how many of them 
there are, with a reported 11,600 participants from around the world 
at the Poznan beano. One wonders – fleetingly – what they can all be 
doing but, rather like the content of sausages, it is perhaps best 
not to ask.

Some (pictured) have clearly been entertaining themselves by 
displaying a banner from the roof of the town's railway station. One 
hopes they got rather cold in the process.

However, there is some small hope that the lunatics will be shoved 
back into their padded cells. Recently, we reported that the EU 
parliament and the Council had agreed a deal on the Renewable Energy 
Directive, clearing the way for the approval of mandatory biofuel and 
renewable electricity quotas.

At the eleventh hour, however, up has popped the Austrian government 
which has questioned the renewables targets and appears to be 
threatening the whole Directive. The delicious thing about this is 
that it had done so after the negotiations between the Council and 
the EP have been finalised.

The significance of this is that, under EU procedure, since there is 
now an agreed "common position", there is no mechanism for re-opening 
the negotiations. This could force the EP to end up voting on a 
position which is different from that which the Council agrees. Under 
the arcane rules of the game, that would mean the Directive would 
fall and the "colleagues" would have to start all over again.

As always, there will be frantic, last minute attempts to stitch up 
the stitch-up, but there is absolutely no room for manoeuvre if 
Austria really puts its foot down and blocks the deal. The only way 
out will be to buy off the Austrian government with concessions 
unrelated to this particular Directive, which may be the prize which 
is being played for.

Whatever the outcome of that little drama, it does point to the fact 
that the "consensus" is creaking at the seams. The "colleagues" may 
just pull it off this time, but it is becoming clearer by the day 
that they and their fantasies are living on borrowed time.
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Posted by Richard North