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Frontrunner for EU President calls for direct EU taxes
EUobserver reports that Belgian PM Herman Van Rompuy, who is the current favourite for the new EU President job, laid out his views on how the EU's budget should be financed in future at a dinner of the secretive Bilderberg group last week. He is reported to have said in a speech that: "New resources will be necessary for the financing of the welfare state. Green tax instruments are a possibility, but they are ambiguous: This type of tax will eventually be extinguished. But the possibilities of financial levies at European level must be seriously examined and for the first time the large countries in the union are open to that."
De Standaard reports that his spokesman is denying that he was asking for an EU 'green tax', saying: "What the PM did say is that one needs to look further and one needs to think about a more structural form of financing at the EU level, for example on financial transactions, as is also being discussed at world level and at the G20". However, the Telegraph reports that Van Rompuy backs proposals for the EU to be directly funded from a ring-fenced set of green taxes such as fuel duty or aviation levies. It could mean all shopping and petrol station receipts in Britain could in future include the amount of VAT or fuel duty that goes directly to Brussels as an "EU tax".
Dutch daily De Tijd notes that the EU is "thinking about establishing a source for partially raising its own means, starting in 2013 when the emissions trading system is extended to other sectors." It adds that, when it reaches its peak, "an extended European emissions trading system would annually provide for €30 or even €60 billion" in taxes.
Meanwhile, the Telegraph reports that Van Rompuy was an architect of the Flemish Christian Democrats' federalist manifesto, which calls for more EU symbols in town halls, schools and sporting events. The manifesto says: "Apart from the euro, also other national symbols need to be replaced by European symbols (licence plates, identity cards, presence of more EU flags, one time EU sports events".
Additionally, following the No votes to the European Constitution in 2005, Van Rompuy gave a speech to the Belgian Parliament, in which he said: "We go on with the ratification of the European Constitution in all our parliaments, but we need to admit that for the moment the project is over. However, this doesn't mean that we cannot continue to work in a creative way in the direction which the Constitution points in. I don't object if we break up the Constitution into smaller parts, as long as we continue to work in the same direction: in the direction of more Europe."
Open Europe's Pieter Cleppe is quoted saying, "Van Rompuy is your typical EU federalist - he isn't going to step on anyone's toes or try to dominate the world like Tony Blair or President Sarkozy might have - but he can be relied upon to quietly make sure that the EU gets more and more powers, with less and less say for voters." Pieter is also quoted by a leader in the paper, which argues: "The manipulation of symbols supported by Mr Van Rompuy offends supporters as well as opponents of Britain's membership of the European Union."
Telegraph: Leader Telegraph Independent EU Observer Tijd Tijd 2 Standaard Standaard 2
Italian Foreign Minister: An EU army is a "necessary objective"
In an interview with the Times, Italy's Foreign Minister Franco Frattini has said that Italy is to push for the creation of a European Army after the "new Europe" takes shape at this week's EU summit. He said that it was a "necessary objective to have a European army", adding: "Take Afghanistan: at present President Obama asks Poland, or Italy, or Great Britain for more troops. If there were a European army, he would have a 'toolbox' to draw from. He might need 30 aeroplanes: he would be able to ask if the European army was in a position to provide them."
He said that at present "every country duplicates its forces, each of us puts armoured cars, men, tanks, planes, into Afghanistan. If there were a European army, Italy could send planes, France could send tanks, Britain could send armoured cars, and in this way we would optimise the use of our resources. Perhaps we won't get there immediately, but that is the idea of a European army". He added that "some European countries" such as France were not pulling their weight in Afghanistan, and that there was also a case for joint naval patrols in the Mediterranean: "We could say, look, one group of nations is ready at once, and leave the door open for others to join, as with the euro."
Mr Frattini said that the Lisbon Treaty had established "that if some countries want to enter into reinforced co-operation between themselves they can do so". This was already the case with the euro and the Schengen accords on frontier-free travel, and could now be applied to "common European defence". He warned that "if we do not find a common foreign policy, there is the risk that Europe will become irrelevant...After Lisbon we have no more alibis".
Asked about David Cameron's proposal for a law protecting British national sovereignty, Mr Frattini replied "When you are in opposition you say important things, but when you are in government things change. When you are in government you understand that Europe is an opportunity."
Mr Frattini added that it would "not a be a good start for the Lisbon Treaty" if the decision about who was to become the EU's first permanent President was taken by a vote, rather than reached by unanimity.
Meanwhile, the Sunday Times noted that Newsweek magazine has hailed Europe as a "modest superpower", and with 71,000 troops stationed beyond its borders, the EU can claim a military presence overseas second only to the US. The article also suggested that under the Lisbon Treaty, the likely emergence of an EU military force will help to expand Europe's global "footprint".
MPs warn that EU's plans for financial regulation are a "recipe for a muddle"
The House of Commons Treasury Select Committee has said in a report published today that plans for an EU system of financial supervision are "overambitious" and a "recipe for a muddle". The FT notes that the Committee says it has identified "serious problems" with the plans to create a European Systemic Risk Board (ESRB), which would focus on macroeconomic risks, as well as three pan-European agencies to regulate banks, insurers and securities firms. The Committee's report urges Alistair Darling and other EU ministers to hold back before agreeing to the draft legislation.
The Committee's Chairman, John McFall, is quoted in the Telegraph saying, "While the intention of the European proposals is widely welcomed, there is a great deal of unease about the detail". He added, "We consider this far too fast: the proposals will set in place a framework which should last for many decades and there should be proper time for consideration. Otherwise, this could end up as a recipe for a muddle."
The WSJ reports that the Committee's report calls on the Government to veto the Commission's proposals if they aren't changed to better protect the fiscal powers of member states, so that governments are not forced to spend taxpayers' money against their will, for example through a bank bail-out. The report also cites a need to alter the Commission's sole power to declare an economic emergency, in which case the new EU authorities would be given the power to overrule national supervisors, through a decision taken by simply majority. It also says there should be a veto if attempts are made to separate the proposals for the ESRB and the supervisory authorities.
FT EUobserver City AM Telegraph WSJ Mail Open Europe press release Open Europe research
Open Europe's 50 new examples of EU waste are reported in Spanish regional paper La Voz de Galicia and Polish paper Gazeta Wspolczesna.
La Voz de Galicia Gazeta Wspolczesna Open Europe: 50 examples Open Europe press release
William Hague: UK should press for strong economic portfolio in EU Commission, rather than Tony Blair EU Presidency
Writing in the FT Shadow Foreign Secretary William Hague argues that appointing Tony Blair as the EU's first permanent President, "would skew the distribution of power between the EU's institutions and the member states", and describes the role as having been left "messily unclear" by the Lisbon Treaty. He goes on to write: "Domestically, nothing would more perfectly dramatise the treaty's lack of democratic legitimacy than the appointment as EU president of the man who broke his promise of a referendum on whether that office should exist in the first place."
He argues that instead of advocating Tony Blair, "Britain's national interest and our common European interest in a pro-growth EU would best be advanced if the UK were to put its efforts into securing a major economic portfolio for the British appointee to the European Commission".
Meanwhile, a leader in the FT argues that the unwritten rules surrounding the election of the EU President and Foreign Minister, regarding the political balance and requirements for a former or current head of state, "unwisely and unnecessarily limit the gene pool".
UKIP MEP in anti-fraud inquiry over European Parliamentary expenses
The Sunday Times reported that UKIP MEP for the West Midlands Mike Nattrass is being investigated by the EU's anti-fraud watchdog regarding his expenses. The article noted that the inquiry is into whether Denis Brookes, one of his former aides, was paid through public funds while he was working as a regional organiser for UKIP, and forms part of a wider investigation into UKIP's finances. The EU does not allow taxpayers' money to be used to pay party officials.
Additionally, it was also reported that Nattrass was using a company of which he was a shareholding partner as the "paying agent" for all his assistants' salaries provided by the EU. MEPs must not act as their own paying agents, the role can only be performed by "third parties".
EU Commissioners: Fewer women Commissioners would be "bad for Europe"
In a letter to the FT, EU Commissioners Margot Wallström and Neelie Kroes, and European Parliament Vice-President Diana Wallis argue that if fewer women are appointed to the next EU Commission than the last one, it "would be bad for Europe, bad for democracy and bad for women."
On his Coulisses de Bruxelles blog, Jean Quatremer remarks that the 'EU government' could end up looking like the Saudi government, judging by the lack of female candidates in the running for the top jobs. The blog also reports that the Social Democrat President of Estonia, Toomas Hendrik Ilves, has thrown his hat in the ring to become EU President.
Meanwhile, in the Sunday Telegraph, Christopher Booker noted that the European Commission is acting without a legal base at the moment. He wrote, "On October 31 the five-year term of all the Brussels Commissioners expired. Under the Treaty they should therefore have stepped down. But because of the hiatus before the newly-ratified Constitution comes into force next month, the existing Commissioners simply decided to stay on until a new Commission is appointed...there is no authorisation for this in the Treaty and that they are therefore acting illegally."
Sunday Telegraph: Booker FT: Letters Coulisses de Bruxelles Coulisses de Bruxelles 2
Saturday's Mail reported that research by the Taxpayers' Alliance has found that every family could save £428 a year if Britain negotiated a Swiss-style armslength relationship with the EU. They calculated that up to £10.8bn could be saved every year.
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A survey for Politics Home has found that "31% of those surveyed now consider 'our relationship with Europe' a key issue, compared to 12% six months ago."
The FT reports that new figures produced by the consultancy Capgemini have warned that the EU will fail to meet its target to derive 20 percent of its energy from renewables by 2020 unless the rate of investment in the industry increases sharply.
Spain's Secretary of State for Europe is to be questioned by a judge over allegations he misappropriated public funds, just weeks before Madrid takes over the EU Presidency, judicial sources said on Friday.
The European Union and Russia have today agreed to an "early warning" mechanism that requires both sides to notify the other of any likely disruption to supplies of oil, natural gas or electricity in the event of a gas dispute.
Le Monde reports that French Finance Minister Christine Lagarde has not ruled out running for the Presidency of the Eurogroup, currently held by Jean-Claude Juncker.
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EUobserver reports that almost one hundred EU ministers will gather in Brussels today and tomorrow for meetings on foreign affairs, defence and development, where informal discussions are likely to focus on the EU's top jobs and the institutional changes brought about by the Lisbon Treaty.
Writing in the FT Wolfgang Münchau argues that "the need for France and Germany to pull together today is strong and ever more obvious to an increasing number of people in both countries."
Le Monde reports that a European anti-terrorism coordination committee (CCCAT) has been launched in Paris, which will be in charge of monitoring the terrorist threat, including on the Internet.
The euro-zone economy returned to modest growth in the third quarter, marking an end to five quarters of recession, according to figures from Eurostat. However, the growth figures weren't as strong as expected, particularly in France.
WSJ WSJ Comment is Free: Stevis
The FT notes that the European Commission has said that it will not introduce new EU rules on the way banks sell retail investment products, saying that a review of those rules will be a matter for the next Commission, expected to take office early next year.
Eurointelligence notes that in its annual report, Germany's Council of Economic Advisers has concluded that the EU's Growth and Stability Pact has failed as a mechanism to constrain public finances, and is in urgent need of reform. They are advocating an additional agreement that focuses directly on government spending.
The FT notes that the EU's decision not to sign up to international accountancy standards under the International Accounting Standards Board (IASB) is the result of "an ideological schism".
World
The FT reports that US President Barack Obama conceded yesterday that there would be no legally binding Treaty to tackle global warming agreed at next month's Copenhagen summit, but left the door open for a deal on a new global framework, with a binding agreement to follow later.
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