Monday 23 November 2009

Europe
 
Brown accused of secretive deal with Sarkozy to hand French important EU Internal Market portfolio
Over the weekend it emerged that France has secured the job of EU Internal Market Commissioner for Michel Barnier as part of the deal that saw Lady Ashton become EU Foreign Minister, following reports in French newspaper Le Monde.  The paper reported, that, according to a source at the European Commission, "The French supported the British to lead European diplomacy, with Catherine Ashton's nomination.  In return, they obtained the guarantee that the French MEP Michel Barnier would become Vice President of the European Commission in charge of the internal market and financial services."

 

Open Europe's Mats Persson was quoted in Saturday's Telegraph saying"This appointment is part of a very deliberate French strategy to challenge the Anglo-Saxon model in general and the prominence of the City of London in particular."

 

Belgian financial paper Trends notes that "the nomination of a Brit at the head of European diplomacy is good news for France and Germany, because it removes Britain from the race for one of the big economic portfolios." It reports that "Germany might be interested in Trade, but also in Energy or Industry, in order to protect its industry from the impact of Brussels. France, meanwhile, covets the portfolio of Internal Market for its candidate Michel Barnier, on the condition that Barroso does not separate financial markets from it." 

 

According to the weekend FT, Downing Street has fiercely denied any deal, amid claims from the Conservatives that Barnier could use his position to pursue a French agenda, stifling the single market and imposing new regulations on the City of London. 

 

William Hague has written to David Miliband demanding details of the deal.  He said: "If Gordon Brown has done a deal that would mean a French commissioner being in charge of the economic issues that affect Britain the most then that could be a serious concern. Our French partners have a different view on market issues that touch on Britain's vital economic interests. I look forward to the Government taking this opportunity to be completely open about what has been agreed."  

 

Saturday's Times reported that Gordon Brown had rejected advice from Lord Mandelson to seek one of the big economic posts in the European Commission for Britain once it was clear that Tony Blair could not succeed in becoming Europe's first president.  A ministerial source was quoted saying, "We have ended up with two garden gnomes.  It is the lowest common denominator... Gordon Brown has allowed himself to be pushed around by Barroso, who wanted Ashton in there so that he can dominate the stage himself." 

 

The paper also noted that Geoff Hoon was Downing Street's first choice as Britain's next EU Commissioner.  It reported that Tony Blair knew the game was up a week ago, following a conversation with Angela Merkel, but Brown wanted to keep up the Blair campaign as cover to push for a top economic job in the next European Commission.  The Mail on Sunday reported that Lord Mandelson regards Baroness Ashton as "a lightweight" and that he is "furious" about Brown ignoring his advice to seek a key economic portfolio for Britain instead of the EU Foreign Minister job.

 

The Sunday Express quoted Peter Ludlow, President of the European Strategy Forum think tank and adviser to European Commission president Jose Manuel Barroso, saying "It was other governments and not Brown who suggested to the British that if it's got to be a socialist and it's got to be a Brit then try Ashton. But Brown went on pushing Blair. Everyone was pleading with him to come to his senses and that there was a solution ready made for him, so that's how Ashton emerged."

 

Meanwhile, the Sunday Times reported that, in private, Mandelson mounted a personal campaign to persuade European allies to back him for the job of EU Foreign Minister.  According to the Mail, a 'plan B' if he failed to secure the job was to become Foreign Secretary in the event of David Miliband being selected for the role.  Lord Mandelson is now said to be secretly pressing Brown to hold a cabinet reshuffle so he can achieve his life-long ambition of running the Foreign Office - rumours dismissed by Downing Street as "nonsense."