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EU's secretive horse-trading over President and Foreign Minister leaves the electorate guessing
Tomorrow, at a specially convened summit, EU leaders will attempt to reach a consensus on filling the two new EU jobs of President and Foreign Minister, with sources already suggesting that the horse-trading may not be complete until the weekend. The Times quotes Cecilia Malmström, Sweden's Europe Minister, saying, "I would not say it is a complete mess, but there is no agreement still."
In the WSJ, Iain Martin writes, "As a piece of political theatre, Thursday can be said to have more in common with a papal conclave than it does with election night in any of the world's leading democracies." The Guardian notes that Polish Foreign Minister, Radek Sikorski, told his counterparts that they were blowing an opportunity "to operate with transparency and a readiness to bring the citizens of Europe closer to EU affairs".
The frontrunner for EU President continues to be Belgian Prime Minister Herman Van Rompuy but his recent announcement that he favours a direct EU tax in a meeting of the secretive 'Bilderberg' group has sparked growing opposition to his candidacy. The front page of the Express notes that Van Rompuy, also known to be enthusiastic about creating a "European identity", spearheaded the drawing up of a federalist manifesto for his Flemish Christian Democrat Party in Belgium, which called for national symbols to be replaced with European ones.
Open Europe Director Lorraine Mullally is quoted by PA and the Express saying Van Rompuy is a "classic EU federalist" who would "quietly drive EU integration forward", and that for that reason, "The British Government should be dead against any such candidate. The EU president may not have the power to propose direct EU taxes, but that doesn't matter, because the European Commission will do it for him. With him in the EU hot seat, the Commission will have a powerful friend in the council, a body that until now had only elected representatives of governments. All that changes with the Lisbon Treaty."
The Mail quotes a British diplomat saying that Van Rompuy is "everyone's second or third choice." An emerging alternative is former Latvian President Vaira Vike-Freiberga who has criticised the lack of female candidates considered for the EU's top jobs and the secrecy surrounding the appointments.
In an interview with Le Figaro, Vike-Freiberga says "I am ready for the Presidency of Europe." Asked how she sees the role of EU President, she says: "It's a bit like the dream of those who have waited rather a long time for ratification of the Lisbon Treaty! This post should really help decisions to be made, and also bring a certain continuity in the communication of the EU. But I don't have a programme. A post like this does not give the privilege of coming with one's agenda and imposing it. Of course, initiatives will be possible, but with each step taken, it will be necessary to try to establish consensus. In meetings in the Council, the President has his powers of persuasion, but no right to vote!"
Asked if she is taking up Czech President Vaclav Klaus' criticisms when she said recently that the EU should "stop functioning like the Soviet Union", she replies: "I am not at all in the same camp as Mr. Klaus. I was talking about the need for a more transparent and open procedure [for choosing the EU President]." Asked if she might also be interested in the post of EU Foreign Minister, she replies: "I strongly doubt that such a post will be offered to someone coming from the Baltics."
In the Independent, John Lichfield writes, "Henry Kissinger, once asked: 'Who do I call if I want to call Europe?' With all due respect to the Belgian Prime Minister, Herman van Rompuy, or the ex-Latvian President Vaira Vike-Freiberga, they are unlikely to supply Barack Obama or Hu Jintao or Vladimir Putin with a satisfactory answer." Other leading Presidential hopefuls include Luxembourg PM Jean-Claude Junker, Dutch PM Jan Peter Balkenende, and Finnish PM Paavo Tapio Lipponen.
Tony Blair's hopes of landing the Presidency are thought to be fading, despite Gordon Brown's last-ditch efforts to secure him the job. The Telegraph and the Irish Times report that Downing Street is already considering dropping its support for Blair and pushing for the "Plan B" of an influential economic portfolio in the next Commission.
Writing in the Mirror Kevin Maguire argues that "Not convincing the country to respect, let alone like or love, the EU was one of Blair's (and Brown's) great New Labour failures. And dodgy Uncle Tony's such a toxic figure these days it would be impossible make the EU case with him lording it in Brussels."
Meanwhile, the FT notes that Germany wants to secure the Presidency of the European Central Bank in return for not fielding any candidates for either EU President or Foreign Minister.
The Irish Times reports that Spain has nominated its Foreign Minister Miguel Angel Moratinos for the EU's foreign policy role, a sign that negotiations for the post are also deadlocked. Still vying for the job are former Italian PM Massimo D'Alema, EU Enlargement Commissioner Olli Rehn and Swedish Foreign Minister Carl Bildt.
The Economist's Charlemagne writes on his blog, "Diplomats are talking about the meeting going until dawn on Friday, or quite possibly ending without a result, forcing leaders to come back in December. Once you get to 3am in an EU contest, all the serious candidates thought of so far could be dead on the carpet, leaving a complete surprise to come through the middle."
Independent: Lichfield Independent: Big Question Mirror: Maguire Express Express: Clark Mail Le Figaro WSJ Telegraph Irish Times IHT FT Times Times 2 Guardian WSJ: Martin Irish Times 2 EUobserver Times 3 Economist: Charlemagne notebook FT: Brussels blog OE blog
Pierre Lellouche: France must have a large influence on the "biggest diplomatic service in the world"
In a presentation to the French National Assembly's Foreign Affairs Committee last week, Europe Minister Pierre Lellouche stressed the need for "Franco-German unity" in order to move the 27 EU member states forward. He said: "The Franco-German motor is more essential than ever." Describing the new External Action Service to be set up as a result of the Lisbon Treaty as "the biggest diplomatic service in the world", he said it will be composed of officials or agents, one third of which will come from the Commission, a third will come from the Council and a third will come from the member states. He says: "We must work so that France has a good and large influence within this service. That means that we send between 25 and 35 good diplomats from different grades and different ages for different responsibilities so that they can make a French mark on this European entity. This is one of the missions that awaits us." He said: "Regarding common defence, we are in the middle of establishing a civil-military entity which will be piloted by a French person", and "the common immigration policy must be urgently strengthened. In particular, we must create a common right to asylum."
High Court ruling on breach of EU law could cost Treasury £1bn
The High Court yesterday ruled that the Treasury had breached EU law by restricting tax deductions for interest paid on loans. A group of multinational companies, including Lafarge, Volvo and Siemens, had taken the UK Government to Court, arguing that the rules were unfair because they had discriminated against companies from other parts of Europe, which in turn violate EU law. Yesterday's ruling, which interprets a decision by the European Court of Justice, could cost the Treasury up to £1bn.
European bankers warn of risk to economy from excessive regulation
The FT reports that European bankers yesterday warned that excessive regulation in response to the global financial crisis would endanger growth in the real economy and access to credit. Stephen Green, Chairman of HSBC, said: "Cumulative enhancement of capital ratios at the wrong stage of the economic cycle could easily withdraw credit from the economy and cause a new credit crunch. This in turn would interrupt and delay a fragile economic recovery." Emilio Botín, Chairman of Santander, said: "We must not underestimate risk, but we should similarly not tip the scales too far the other way and indiscriminately establish greater capital requirements that will undoubtedly affect the cost of lending and access to credit."
However, Jacques de Larosiere, who chaired the high-level group charged with producing proposals to improve financial supervision in the EU, opposed watering down his proposals: "If we start tinkering...then we are back to square one."
EU police training mission in Afghanistan is a "logistical nightmare"
The IHT reports that the EU's police training mission in Afghanistan is understaffed and lacks adequate security, according to diplomats and security experts in the mission. "The E.U. mission is a logistical nightmare," said Piotr Krawczyk, the former Deputy Head of the Polish Embassy in Kabul. "There is complete lack of coordination between the E.U. institutions in Afghanistan and between the other big players, including the United Nations and NATO."
Irish PM Brian Cowen has nominated Maire Geoghegan-Quinn to be Ireland's next EU Commissioner. A spokeswoman for Fine Gael warned that her previous links with Libertas founder Declan Ganley could become a "major issue" in hearings before the European Parliament.
Irish Independent European Voice Irish Times-leader Irish Times
Swedish media reports that the country's new EU Commissioner will be current EU Minister Cecilia Malmstrom. Swedish daily Goteborgs-Posten notes that Malmstrom is in favour of scrapping the EU's Common Agricultural Policy, but in favour of more EU integration in justice and home affairs.
Dagens Nyheter Goteborgs-Posten EurActiv European Voice
Charles Tannock: Westminster needs to understand the national parliament provisions of the Lisbon Treaty
On Conservative Home, Conservative MEP Charles Tannock argues that "Westminster needs to appreciate, understand and act upon the provisions of the Lisbon treaty related to national parliaments. Under Lisbon, Westminster and the other 26 national parliaments will have new rights of scrutiny of EU legislation, the so called 'yellow card' powers...Those fundamentally opposed to Britain's membership of the EU will undoubtedly dismiss these Lisbon treaty provisions as toothless and cosmetic. But they are only toothless and cosmetic if we make them so."
The FT reports that EU and Latin American trade officials are close to a deal over bananas that would end the longest-running dispute in the history of the World Trade Organisation. Under the settlement, the EU would reduce its banana tariffs to scale down preferential treatment given to former French and British colonies.
The FT reports that Lord Mandelson has said Britain is prepared to underwrite GM's restructuring plan for its European operations, which present "a solid commitment" to Vauxhall's two UK plants.
RTL reports that Dutch Europe Minister Frans Timmermans has said that EU bureaucrats make too much money. He rejected that the argument that they should earn more because they work abroad, arguing that they sometimes stay in Brussels for as long as 20 years.
RTL
The FT's Alphaville blog notes that the spread between Greek and German bonds has reached its highest level since 17 July, and questions whether Greece will be most vulnerable of all eurozone countries to a tightening of liquidity from the European Central Bank.
EUobserver reports that EU defence ministers yesterday agreed a plan to train up to 2,000 Somali security forces. Between 100-200 EU soldiers are likely to carry out the training in Uganda, possibly in the first half of next year, although several member states queried who would pay and equip the Somali forces once training was complete.
In an interview with Le Monde, Jean-Claude Trichet, President of the European Central Bank, discusses the euro.
Nato and its allies will order "substantially more forces" into battle in Afghanistan over the next few weeks, the alliance's Secretary General, Anders Fogh Rasmussen, said yesterday. Slovakia has said it will double the number of its troops in Afghanistan to around 500.
In an interview with LabourList Glenis Willmott, leader of Labour MEPs in the European Parliament, said: "I don't think that we haven't won the argument [on Europe]; I think we haven't had the debate, that's the problem... it seems that anything that's good is done by the UK government, and anything that isn't so popular is "them over there, it's nothing to do with us". It's that sort of atmosphere, I think, that's making British people more and more Euro-sceptic."