Open Europe
Fortnightly Open Europe Bulletin: 11 December 2009
38,000 EU staff to strike for 3.7% pay rise
Outgoing EU Commissioners cost taxpayers €35.6 million
News in brief
Open Europe announcement
Open Europe in the news
Quote of the fortnight:
"Eight years after its conception, the Treaty of Lisbon will finally come into force on the 1st of December. But through it, Europe will neither become more effective nor more democratic, neither more transparent nor more open...The political elite has failed."
Article in German newspaper Die Welt, 30 November
1. 38,000 EU staff to strike for 3.7% pay rise
Up to 38,000 EU civil servants will strike next week in Brussels over the blocking of a planned, inflation-busting 3.7% pay rise. 15 member states, including the UK, France, Germany, Italy and the Netherlands, are blocking the rise because of the economic recession. The news comes as Chancellor Alistair Darling this week announced a pay freeze for millions of public sector workers in the UK, as well as a £1.2 billion increase in Britain's net contributions to the EU (see below).
Civil servants working in the European Council and the Commission will strike on Monday between 9am and noon, and again next Friday. Belgian newspaper De Standaard reported that it's likely national governments will have to agree to the pay rise, because they are contractually bound to the agreement and could lose the case if it went to the European Court of Justice. (Mail, 10 December; European Voice, 11 December)
The basic pay for EU civil servants ranges from between €2,556 and €17,697 a month, in addition to a host of other perks. Some of the benefits available to them include living allowances of 2% of their wage, a child allowance of €350, an education allowance of €240, places for children in highly subsidised European schools and an annual travel allowance. A German newspaper also reported that "On top of that, many shops, banks and car dealers give EU civil servants special reductions of up to 30% when they buy something." An anonymous senior EU bureaucrat told the paper that living abroad, which is one of the rationales behind the generous compensation, is "really not such a pain any more... actually it's hard to get most bureaucrats to leave Brussels these days." (FAZ Die Welt, 2 December)
The 15 opposing member states are seeking to use a 'crisis' clause in the staff regulations, which says that "in times of serious and sudden deterioration of the economic and social situation" the Commission can impose a new wage proposal.
One of the EU civil servants' trade unions wrote a letter to its members arguing that "the member states are misusing the economic crisis to rob us of our fundamental right to preserve the purchasing strength of our salaries", and demanding that member states "respect the rules". One trade union President, with 38 years of experience working at the Commission, defended the strikes saying, "This money has already been put aside", adding that if the rise was rejected the money "will end up being lost in the EU budget and will go on milk quotas." (Swedish Radio, 2 December; El Mundo, 9 December)
Please leave your comments on our blog:
http://openeuropeblog.blogspot.com/2009/12/stuck-in-past.html
2. Outgoing EU Commissioners cost taxpayers €35.6 million
At the end of November European Commission President Jose Manuel Barroso announced the line-up for the next five-year Commission mandate, including the controversial appointment of French MEP Michel Barnier as EU Commissioner for Internal Market, with the key responsibility for financial services.
Open Europe has calculated that the 13 EU Commissioners leaving their jobs as a result of the new appointments have cost taxpayers €2.7 million each during their time in office. Through earnings and pay-offs, they will walk away with a total of more than €35.6 million.
This includes an average €1.3 million in 'golden goodbyes' for each Commissioner. The total bill in 'golden goodbyes', including pensions, for those leaving is more than €16.6 million, with their pension costs expected to be worth a combined total of more than €11.6 million over their lifetimes.
Each Commissioner stepping down is entitled to a 'resettlement allowance' of a month's salary (€19,910 or €22,122 for Vice Presidents), irrespective of how long they have served; a 'transition allowance' paid for 3 years worth between 40 and 65 percent of their final salary (this is a minimum of €286,703 but can rise to as much as €438,017 for a long-serving Vice-President); as well as a generous pension worth at least €51,069 a year from the age of 65, for those serving for five years.
This is in addition to the €238,919 a Commissioner earns per year in basic salary, or €1,194,595 over a full five-year term. Vice-Presidents earn €265,465 or €1,327,325 over five years. This does not include other perks such as housing allowances and entertainment allowances, worth between €43,122 and €50,757 every year.
One of the biggest winners is Polish Commissioner Pawel Samecki, who has only been in the job six months, but will walk away with a 'golden goodbye' of €391,898. This is in addition to the €141,020 he has made in earnings alone.
The highest earners in the outgoing Commission were Margot Wallstrom and Gunter Verhuegen who each pocketed €2,991,313 for their ten years in Brussels. They will each receive annual pensions of €113,486 for the rest of their lives. The newly-appointed EU Foreign Minister Catherine Ashton, who took over as EU Trade Commissioner from Lord Mandelson last year, took home €282,040 in earnings for just over a year in office. (Sunday Times, 29 November)
Please leave your comments on our blog:
http://openeuropeblog.blogspot.com/2009/11/eu-commissioners-golden-parachutes.html
3. News in brief
Lisbon Treaty comes into force. On 1 December the Lisbon Treaty officially came into force across the EU. Efforts are now underway to create the new External Action Service (EAS) envisaged by the Treaty, which was described by the former head of EU foreign policy, Javier Solana, as "the biggest diplomatic service in the world." He also said the new institution, which will be run by the new EU Foreign Minister Cathy Ashton, would have a budget of around €50 billion (£45 billion) over the next three years. Meanwhile, according to the French press, at the EU summit of national leaders in Brussels this week foreign ministers reacted "with horror" to the news that they will no longer take part in the meetings as a result of the Lisbon Treaty, and that the EU Foreign Minister will go in their place. Swedish Foreign Minister Carl Bildt, who supports the move, said "As it happens I am persuaded it's a very good idea. But I can't say all the other Foreign Ministers share that opinion, to put it politely". He added that EU leaders no longer need the foreign ministers beside them at EU summits since relations between the member states are no longer considered "foreign policy" but are now "domestic policy." (Times, Coulisses de Bruxelles, 11 December)
UK's net contributions to EU to rise by £1.2 billion next year. Chancellor Alistair Darling delivered his Pre-Budget Report on Wednesday, which contained details of the rise in the cost of Britain's contributions to the EU budget. Net contributions are set to rise from £4.8billion in 2009/10 to £6billion in 2010/11, an increase of £1.2 billion. This means that Britain's contributions have doubled in just three years from £3billion in 2008/09. The rise is due to cuts in Britain's rebate from the EU budget, which Tony Blair agreed to in 2005, in exchange for the Common Agricultural Policy 'health check', which has resulted in little real reform of the programme. Britain's decreasing rebate is worth £5.6billion in 2008/09, £5.1billion in 2009/10, and £3.3billion in 2010/11. (Telegraph, 10 December)
Britain branded "big losers" over EU jobs carve up. Following the news that French MEP Michel Barnier had been appointed Internal Market Commissioner in the next Commission, French President Nicolas Sarkozy said "the British are the great losers" in the carve up of top EU jobs. Britain's Commissioner is the new EU Foreign Minister Catherine Ashton. Sarkozy added, "It is exceptional for France. And the second victory, is that our friends the Romanians got the agriculture job." (Le Monde, 28 November; Sunday Telegraph, 29 November)
Lib Dems abandon campaign for EU referendum. The Liberal Democrats have abandoned their campaign for an "in or out" referendum on EU membership. Former leader Sir Menzies Campbell said there was no "public appetite" for a vote now that the Lisbon Treaty was ratified. The Liberal Democrats called for a referendum on the UK's membership of the EU last year after abandoning their manifesto promise to hold a referendum on the Lisbon Treaty. (Iain Dale's Diary BBC OE blog, 1 December)
EU air pollution fines could add £15 to council tax bill. The UK is failing to meet EU clean air targets and could be fined £300 million in the next 18 months. The Local Government Association said the fine would add £15 to the average annual council tax bill. (Telegraph, 2 December)
Britain locked out of French "battle plan" talks on CAP. The French government has convened a meeting of 22 member states in Paris this week, with French Agriculture Minister Bruno Le Maire saying: "It is time to produce a battle plan to defend a strong common agriculture policy, to support a renewed CAP. Work on this has to start as quickly as possible." However, France did not invite member states who favour reform of the CAP, including the Netherlands, Sweden, Denmark and Malta, and Britain only received a last minute invitation. One British official said in response: "So what if a group [of] 22 countries is meeting about the CAP for the 25th time?" (Sunday Telegraph: Leader Sunday Telegraph, 6 December; Express, 7 December)
Britain's richest man gets £1 billion from ETS carbon permits. Lakshmi Mittal, Britain's richest man, stands to benefit from a £1 billion windfall from the EU's Emissions Trading Scheme. His steel business ArcelorMittal, where he is Chairman and Chief Executive, will make the gain on 'carbon credits'. The scheme allocates permits to emit CO2 up to a specified cap, and beyond this businesses must buy extra permits. However, ArcelorMittal have been allocated more than it needs, allowing it to sell the surplus for a profit. (Sunday Times, 6 December)
4. Open Europe announcement
Open Europe has announced the appointment of Mats Persson as its new Director. Mats, currently Research Director, will replace Lorraine Mullally from 1 January 2010.
For more information, please see the press release:
http://www.openeurope.org.uk/media-centre/pressrelease.aspx?pressreleaseid=128
5. Open Europe in the news
EU civil servants to strike over pay
11 December Rzeczpospolita The Parliament
Following the news that EU civil servants are planning strikes over proposals from member states to block an inflation-busting 3.7% payrise, Open Europe's Sarah Gaskell was quoted in Polish daily Rzeczpospolita and Lorraine Mullally was quoted by The Parliament saying: "It is unbelievable that just as millions of public sector workers in the UK get their pay frozen, thousands of out of touch EU bureaucrats demand an inflation-busting payrise."
PBR reveals UK contributions to EU are to rise by £1.2 billion next year
11 December Express 10 December Telegraph
In stories in the Telegraph and the Express on the UK Treasury's Pre-Budget Report, and the fact that Britain's net contributions to the EU are set to rise by £1.2 billion in 2010/11, Open Europe Research Director Mats Persson was quoted saying, "The increase in the UK's contribution to the EU budget could hardly come at a worse time. The EU budget represents exceptionally poor value for taxpayers' money - it's wasteful, irrational and hopelessly out of date. British taxpayers have good reason to be angry about their money being spent on wasteful EU projects rather than on closing the budget deficit or lowering taxes at home."
Cameron pledges clear-out of health and safety legislation
10 December New American 3 December Mail 1 December Cameron speech
In a speech on "over the top" health and safety rules and legislation, Conservative leader David Cameron highlighted Open Europe's research that the cost of complying with EU employment, social and health and safety regulation over the last ten years has amounted to over £35 billion - 25 percent of the entire regulatory cost for that period.
The Mail and the New American magazine also reported on the briefing, which showed that the regulations will cost the UK economy £71 billion over the next ten years, even if no new legislation is adopted in that time. The Mail quoted Open Europe saying, "David Cameron is absolutely right to push for a more common sense approach to social and health and safety laws. However, any meaningful effort to tackle overly prescriptive rules must focus overwhelmingly at the EU level for the simple reason that a clear majority of our laws in this area now stem from Brussels, and without any change the cost of these laws will continue to go up."
Sarkozy: British are the "big losers" after Michel Barnier is handed responsibility for finance
8 December World Politics Review 29 November Telegraph Mail Express
Following the news that French MEP Michel Barnier had been appointed as the EU's next Internal Market Commissioner, with responsibility for financial services, Open Europe Director Lorraine Mullally was quoted in the Telegraph and Express saying, "We've missed out on all the important economic portfolios, and handed responsibility for the internal market and financial services to a French protectionist who also happens to be a committed EU federalist - which is the worst-case scenario."
Open Europe's Mats Persson was quoted by the Mail saying, "The Government has failed to fight for the City of London and the Anglo-Saxon way of doing business." World Politics Review also quoted Open Europe saying that Barnier's appointment was "bad news" for the City.
Lisbon Treaty Citizens' Initiative
7 December DPA
German press agency DPA looked at the new so-called 'Citizens' Initiative' in the Lisbon Treaty, and quoted Open Europe's Lorraine Mullally saying, "I don't see the citizens' initiative even scratching the surface of the EU's problems." Describing the initiative as "scant compensation for the loss of powers given up with the Lisbon Treaty", she said, "In that sense, it's worse than meaningless, because it gives the impression that they [EU leaders] are doing something when they are not."
UK Government accused of caving in over proposals for single European financial regulator
3 December This is Money Mail
Following an agreement by EU finance ministers to create three new EU authorities with binding powers over national regulators to supervise the bloc's financial markets, several papers reported that the UK Government gave in on some of the most controversial aspects of the proposal, including the fact that qualified majority voting, or simple majority voting, will apply to decision-making. The Mail and This is Money quoted Open Europe Research Director Mats Persson saying, "The UK has lost out badly in the negotiations. The key thing is the UK can be outvoted at any time."
Open Europe's "50 new examples of EU waste"
3 December La Informacion 1 December Pluska 29 November TA3
Open Europe's "50 new examples of EU waste" continued to receive coverage across Europe, in Slovakian paper Pluska, on Spanish site La Información and from Slovakian news channel TA3.
German MEP hails "day of joy" for those who want a federal United States of Europe
2 December Express
Following the coming into force of the Lisbon Treaty on 1 December, Open Europe Director Lorraine Mullally was quoted by the Express saying, "As of today, there is virtually no area of policy the EU cannot now touch. Unaccountable, unelected EU politicians and judges have sweeping new powers over everything from our criminal justice systems to asylum policy."
Outgoing EU Commissioners cost taxpayers €35.6 million
30 November Sunday Times Capital
The Sunday Times and Romanian newspaper Capital reported on Open Europe's findings that the 13 outgoing EU Commissioners have cost taxpayers €35.6 million during their tenure. Open Europe's Lorraine Mullally was quoted saying, "The European commission is completely out of touch. Despite the recession there has been no attempt to bring down the enormous salaries and payoffs that commissioners enjoy."
6. Please support Open Europe
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