Open Europe will tomorrow hold a debate in conjunction with Policy Exchange, on the EU's proposed Directive on alternative investment, titled "Common sense or a step too far? Private equity, hedge funds and the EU AIFM Directive". Speakers will include Poul Nyrup Rasmussen, President of the Party of European Socialist; Lord Myners, Financial Services Secretary to the Treasury; Douglas Shaw, Head of Alternatives at Black Rock; Jonathan Russell, Managing Partner at 3i; and Brooke Masters, Chief Regulation Correspondent, Financial Times. The debate will be hosted by the City of London Corporation. For more information please contact Natalie Law: natalie@openeurope.org.uk or tel. 0207 197 2333.
Europe
European experts argue against Lisbon Treaty in Dublin;
"The nature of democracy is truly at stake"
Open Europe yesterday hosted a lunchtime debate on the Lisbon Treaty in Dublin, called "Europeans for democracy". The discussion focussed on the detail of the Treaty, such as the implications for national parliaments, and the flexibility clause, which will allow the EU to extend its own competences.
British Labour MP Gisela Stuart, who was a member of the European Convention which drew up the Treaty, said that a basic test for democracy should be whether citizens can get rid of politicians, and that "Lisbon does not give you, as a citizen, the means to control the executive or the politicians who decide on your behalf, and that's the hurdle it falls on in my view." She added that, "whilst I am a deeply committed pro-European...this is not a structure that will take us forward".
She said there would be no increase in powers for national parliaments, saying "all national parliaments have got is more opportunity for information and discussion, and that's not power in my book." Gisela warned that "under Lisbon, there will be no more treaties, no more referendums anywhere" on EU integration, and noted that one of the big dangers of Lisbon is the bullying of the smaller countries by the big ones. She said: "The nature of democracy is truly at stake." Asked what would happen if Ireland votes 'no', she said: "We are dealing with an organisation which is very good at making rules but which is completely un-bound by rules itself".
Dr Jochen Bittner, Europe Correspondent for German daily Die Zeit, said the Treaty "allows for something unique in human history and that is the possibility that states may constitute laws for other states, in areas which formerly were reserved for national sovereignty." He said, "Whereas in the past the possibility to make laws for other states was confined to common market issues, with the Lisbon Treaty it will additionally cover justice and internal issues, and potentially foreign policy." He added that, with the Treaty, "sovereignty would be shifted from the people to the next higher level - the governments" and that "this is a major step, and one should discuss the wisdom of this step".
He added: "With the Lisbon Treaty, I think we are seeing the emergence of a state-like system in the EU. A state-like system which behaves like a state, without providing for the essential ingredients of a democratic state, and my fundamental question would be whether we want this."
He said that proponents of the Treaty claim it will make the EU both more democratic and efficient, but said the two are not compatible, adding "You simply cannot argue that the Lisbon Treaty makes the EU both efficient and democratic." Noting that China is "very quick at decision-making...because it is a dictatorship", he added that "politicians should be so honest to say that we have a choice between more efficiency or old-fashioned democracy as we are used to. I think that would be the right question to ask." Dr Bittner added that in Brussels people were already saying, "We can't have the Treaty being stopped by 5 million people."
Swedish political consultant Erik Lakomaa said that his main problem with the Treaty was that "the EU will get, not only the power to decide on a list of areas but also, this most important question... the right to decide on what it could decide on, without further consulting the people."
He said: "The Swedish parliament voted by about 80% in favour of the Lisbon Treaty last year...but if you look at the polls, a majority of voters of every party is in favour of having a referendum on the Treaty and they would also vote no, with the exception of supporters of one party in Sweden - the People's Party. If you ask a more general question like 'are you in favour of transferring more power to the EU', you have a 90/10 split against that."
Svetla Kostadinova, Executive Director of the Institute for Market Economics in Bulgaria, said that she also applied tests to the Treaty, of whether it would lead to more freedoms and more prosperity for the government, business or the individual, and whether it will result in more transparency for the citizens of Europe. She said that, "the general conclusion when we ask these questions, and we see the answer is probably that this Treaty will not give the freedom we need to lead to more prosperity."
Eline van den Broek, a Dutch journalist and political scientist, said that "there were many arguments [in the Netherlands] to vote against the EU Constitution, and those are the same reasons to vote against the Lisbon Treaty, because they are basically the same thing." She added that she thought it was, "not so much the Treaty itself which is undemocratic...but the actual process of implementing the Constitution or the Lisbon Treaty."
Roland Vaubel, Professor of Economics at the University of Mannheim, said that he was concerned with the 'general empowering clause', also known as the flexibility clause, which allows the EU to decide on its own competences. He said: "The German constitutional court has ruled that the general empowering clause must not be invoked without the explicit legislative assent of the German Parliament. To my knowledge the Irish Parliament is not protected in this way, nor are the Irish people, who without the Lisbon Treaty would have the right to vote on such transfers of power to the EU. So I think these changes would really open the floodgates for interference from Brussels." He noted that Ireland belongs to the "anti-EU regulation coalition" in the Council, which would find it more difficult to block regulation under Lisbon.
Professor Vaubel argued the Nice Treaty is working "very well", because "the share of contested decisions in the Council has fallen since the Nice Treaty and also since eastern enlargement, so it is not true that a reduction in majority requirements is necessary...in fact it has been quite easy to agree under these rules."
Bruce Arnold, political columnist at the Irish Independent, who chaired the event added: "we are no longer making Europe, Europe is making us", adding "you can't have democracy unless you can get change and throw people out."
No link
Diplomats start work on implementing Lisbon Treaty;
No campaigners accuse Irish government of 'misleading propaganda' effort in Lisbon referendum campaign
Belgian daily De Standaard reports that diplomats from Belgium, the Netherlands and Luxembourg are working on a paper on the implementation of the Lisbon Treaty, which aims to enforce "the supranational method in the EU" according to Belgian Foreign Minister Yves Leterme. The document, due to be published in October if there is a Yes vote in Ireland's referendum on the Treaty, highlights how the permanent EU Presidency would work, how the EU Foreign Minister would function and the development of the diplomatic service. Belgium will hold the EU Presidency in 2010, playing an important role in the implementation of the institutional changes that the Lisbon Treaty will bring.
Meanwhile, the Irish Times reports that Lisbon Treaty No campaigner Patricia McKenna has accused Ireland's Department of Foreign Affairs of producing "propaganda" in favour of the Lisbon Treaty. McKenna, the Chairwoman of the People's Movement, said information booklets published by the department and the Referendum Commission were selective and misleading. "These documents are an abuse of taxpayers' money because both...are designed in such a way as to try and influence the vote," she said.
The Irish Independent reports that Irish Foreign Affairs Minister Micheal Martin has said that a 'ground-war campaign' is vital for a Yes vote in the Lisbon referendum.
El Mundo reports that Commission President Jose Manuel Barroso yesterday announced his intention to travel to Ireland on 19 September to support the Yes campaign. [AN ILLEGAL ACT -cs]
Meanwhile, an editorial piece in the Spectator argues "The EU marches towards the 'ever closer union' by the simple device of holding and reholding elections until it gets the result it wants. Ireland's second referendum on the Lisbon Treaty in October is a case in point." It notes that the UK was denied a referendum on the Treaty and says that "Our 'yes' literally lies in a vault in Rome, sent there by Labour whips instructed by a prime minister who lacks a proper mandate to govern."
Lord Myners will urge alternative investment industry to change tactics at Open Europe debate
The UK's Financial Services Minister, Lord Myners, who will tomorrow speak at an Open Europe debate in the City, is in his speech likely to urge the hedge fund and private equity industry to change tactics in their efforts to change the EU's proposed Directive on alternative investment. The WSJ reports that Lord Myners will urge the industry to hold face-to-face meetings with government officials, as well as to start offering constructive counter proposals, rather than wholesale dismissals.
Meanwhile, the Swedish EU Presidency last week published a report identifying a number of areas where the AIFM Directive needs to be amended in order to address industry and investor concerns. The Swedish Presidency said that, "given the global character of the activities of many market players, the current draft does not seem workable as it in many cases will not be possible to hold the assets in the EU without incurring considerable costs for investors". In particular, Sweden urged changes to rules in the proposed Directive that would limit hedge funds leverage, while also expressing concerns over the scope of the directive and the potential discrimination under the new rules against non-EU country alternative investment funds.
The German Investment and Asset Management Association (BVI) has welcomed the Swedish Presidency's report, saying that it's on the "right track" and the German alternative investments association (BAI) said it is an "important signal for all parties concerned".
In CityAM Conservative MEP for London and Shadow Rapporteur on the AIFMD, Syed Kamall, urges the industry to provide "real life stories of how the hedge fund and private equity industry has changed people's lives for the better."
Commission finalises plans to create powerful European Banking Authority
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