Quote of the fortnight: "The biggest member state, which has for so long silently been the guarantee of the EU, has now openly expressed that it is no longer prepared to pay any price for European unification. The present Euro crisis is more than a monetary matter. It changes the political rules of the game in Europe ." Leader article, Frankfurter Allgemeine Zeitung, 24 March 2010 1. UK trying to resist French and German calls for "economic government" under EU President EU leaders meeting yesterday in Brussels for a European Council summit agreed on a rescue deal for Greece in the event that it faces "very serious difficulties" in managing its debt. Eurozone members including France relented to German calls to involve financing and expertise from the International Monetary Fund in a potential bailout, alongside bilateral loans from eurozone members. (Guardian, 26 March) In return for agreeing to the deal, German Chancellor Angela Merkel has called for the Lisbon Treaty to be amended, in order to prevent any repetition of the current crisis, with a mechanism for much stricter EU control over national spending. In response to those calls, the draft version of the Council's conclusions calls EU leaders to "consider that the European Council should become the economic government of the EU" whilst proposing "to increase [the Council's] role in economic surveillance and the definition of the EU's growth strategy." An increased role in economic surveillance could lead to the EU intervening in member states' national strategies for managing their debt, or calling for more investment in policy areas that the EU prioritises. It could also mean more surveillance powers for the EU to deal with countries such as Greece. (Mail Times, 26 March) A task force led by EU President Van Rompuy will now look at all the options that could be used to create the legal framework for such an "economic government" - a framework that could potentially lead to EU Treaty changes. Following insistence from Gordon Brown and other countries, the wording of the conclusions changed from "economic government" to "economic governance" in the English version, but the wording remains "economic government" in the French translation of the conclusions. (PA, 26 March) Gordon Brown has insisted that Britain will not have to pay for a Greek bailout. However as Britain is a contributor to the IMF, UK taxpayers' money would be used to aid Greece if the plan was put into practice. This is despite an opinion poll published by the French public opinion institute IFOP yesterday, showing that only 22% of UK voters are in favour of a bailout of Greece. Across Germany, France, Italy, Spain and the UK, 58% of voters disagreed with a bailout. (AFP, 26 March) The Italian Prime Minister Silvio Berlusconi has also refused to rule out the idea that non-eurozone member states may have to contribute to a Greek bailout, saying: "Since the very beginning, we [the EU leaders] have all agreed on the need for the EU to act in its entirety, not only through the Eurogroup. Otherwise, what kind of Europe would this be?..the possibility for non-Eurozone member states to offer Greece their own contribution must not be ruled out". (Wall Street Italia, 26 March) 2. UK contributions to EU in 2010 are double the amount of last year Figures published in Wednesday's UK budget show that the UK's contribution to the EU has increased from last year's estimates. The 2009 budget estimated that the UK's contribution for this year would be £5.6 billion. However, this figure has now increased to £6.4 billion and will rise to an estimated £7.6 billion in 2010/11. The £6.4 billion cost this year is more than twice the £3.1 billion the UK contributed last year. The increase is due to a reduction in Britain's annual rebate, a portion which Tony Blair agreed to give away in 2005, in exchange for a 'health check' of the EU's Common Agricultural Policy, which has produced no substantial effect in reducing the amount of EU money spent on subsidising agriculture. (Telegraph, 25 March) 3. Open Europe: EU tax revenues of €9.2bn under threat from EU's AIFM Directive Open Europe has warned that if national ministers and the European Parliament fail to agree on a proportionate version of the EU's AIFM Directive on hedge funds and private equity firms, it will have a detrimental effect on the wider EU economy. The hedge fund and private equity industries contribute €9.2 billion in tax revenues to the EU economy every year - an amount under threat if the Directive is passed in a flawed form. The taxes raised from these industries in the UK alone are enough to pay for the salaries of over 200,000 nurses. European finance ministers last week postponed a vote on the Directive, after "a last-minute intervention" by Gordon Brown. (FT, Independent, 17 March) Although the postponement of the finance ministers' vote on the proposal leaves UK negotiators, the industry, investors and others with extra time to amend the Directive, there is no guarantee that this is going to be straightforward. In addition, the eventual vote will be taken by qualified majority voting, meaning that the UK can be outvoted. The Directive is likely to come up for discussion again at the next meeting of finance ministers in May or June, landing the Directive at the feet of the next Government. To read Open Europe's press release, click here: http://www.openeurope.org.uk/media-centre/pressrelease.aspx?pressreleaseid=133 Please leave your comments on our blog: http://openeuropeblog.blogspot.com/2010/03/weve-been-here-before.html MEPs' call for work-free Sundays to be considered in Working Time Directive revision. A third of MEPs have signed an appeal to the Commission to consider work-free Sundays in its upcoming review of EU rules on working hours, under the Working Time Directive. EU Employment Commissioner Laszlo Andor promised MEPs that "the Commission will consider all contributions in the review of the working time directive". (EUobserver, 26 March) Taxpayers will be faced with £2.1m bill per MEP in 2011. Draft figures for the next European Parliament budget have revealed that each MEP will cost EU taxpayers £2.1 million next year, with the Parliament's overall budget rising by 6.5 percent. The increase means that the Parliament will breach a 22-year-old pledge that its budget would never exceed a fifth of the EU's overall administrative budget. The UK Government is reportedly set to oppose such an increase. (Express Express: Leader, 23 March) EU spends £350m on questionable culture programme. The European Commission is to spend £366 million as part of its 2010 culture programme, on various questionable arts events, including some to promote wind instruments, 'hip hop' dance and circus skills. In one example £180,000 has been earmarked for a 'Wind Art Festival' to address the "need to increase audience for organ performances in order to give the organ a natural role in cultural life". (Telegraph Mail, 19 March) EU police agency gains extensive new surveillance powers. Under the Lisbon Treaty, the EU's police agency Europol has gained a wide-ranging capacity to gather criminal intelligence if it suspects EU citizens are involved in any "preparatory act" which could lead to criminal activity. James Welch, Legal Director of campaign group Liberty warned: "We have huge concerns that Europol appears to have been given powers to hold very sensitive information and to investigate matters that aren't even crimes in this country. Any extension of police powers at any level needs to be properly debated and scrutinised". (Express Express: Leader, 26 March) Ashton accused of allowing France to 'seize control' of new EU foreign service. Several member states, including Britain, are concerned that EU Foreign Minister Cathy Ashton's proposal to appoint a secretary-general for the EU's new diplomatic service will allow the service to be hijacked by the French official who is expected to land the job. Pierre Vimont, the current French Ambassador to Washington, is the favourite and would be in direct "day-to-day" command of the EU's intelligence, military and crisis response bodies. (Telegraph, 26 March) €920,000 a year EU "heritage label" for historical and "obscure" sites across Europe. The European Commission has launched a new proposal for an 'EU heritage label' scheme, which would cost €920,000 a year to run. The project is aimed at encouraging awareness of 'European integration, ideals and history.' The scheme already exists on a bilateral basis but the proposal would see the scheme run by the Commission, which has already said that the existing 64 European heritage sites will have to be re-assessed against its "new criteria". The UK has not put forward any sites for the label. (Independent, 13 March) Open Europe held a debate in the House of Commons on 17 March, in conjunction with Business for New Europe, entitled "Europe: A priority for the next government?" Speakers included Europe Minister Chris Bryant, leader of the Conservatives in the European Parliament Timothy Kirkhope, and Lib Dem Shadow Foreign Secretary Ed Davey. Open Europe also held a debate in Brussels on 25 March on the EU's proposed AIFM Directive to regulate hedge funds and private equity groups. Speakers included Swedish MEP Gunnar Hökmark, Uwe Eiteljoerge from the Commission's Directorate General for the Internal Market, Karel Lannoo, CEO of the Centre for European Policy Studies, and Open Europe Director Mats Persson. To read a summary of the events, or listen to an audio recording, please visit our events page: 6. Open Europe in the news UK urged to stand firm against AIFM Directive 26 March Bloomberg 17 March Világgazdaság16 March Times City AM 15 March EurActiv Writing in the Times, Business Editor David Wighton cited Open Europe's estimates that the hedge fund and private equity industry contribute €9.2 billion (£8.4 billion) in tax revenues to the EU economy every year. The findings were also covered by Hungarian business daily Vilaggazdasag. Open Europe's Director Mats Persson was quoted in City AM saying, "Ministers must have the courage to resist all forms of protectionism and populism. Failure to do so will cost Europe dearly." Mats was also quoted on EurActiv saying ministers and MEPs "have come a long way" since the original proposal was tabled but he warned against introducing protectionist measures like the "third country" clause. Responding to comments from Jean-Paul Gauzes, rapporteur for the Directive, that he would not lose sleep if the new rules caused job losses for hedge funds, Mats was quoted by Bloomberg saying, "It's a very revealing remark that shows he thinks the only negative impact of the directive will be on hedge funds and private equity funds in the U.K. It could have a much wider impact." Britain faces losing power over its own Budget under new plans for EU an 'economic Government' 26 March Mail This is Money Open Europe Director Mats Persson was quoted in the Mail and This is Money describing Franco-German plans pushing for a reinforced economic government as "an astonishing power grab", adding: "It is a ground-breaking development which paves the way for full scale economic federalism, with the European Council controlling the economic policy of member states, particularly those that are not well managed and have large budget deficits like the UK. It is obviously a very significant move and it is hard to see how it could be forced through without a referendum in the UK." Budget sees UK's EU contributions rise to £6.4 billion 25 March Telegraph Following the news that the UK's contributions to the EU are set to rise again, Open Europe Director Mats Persson was quoted in the Telegraph saying: "It's extraordinary that when virtually every single government in Europe is forced to cut its public expenditure the EU sees fit to increase its own...The UK's contribution keeps on going up at a time when every penny counts. Surely we can think of better ways to spend £7.6 billion a year during the worst recession for a generation?" UK High Court rules on right to benefits for EU migrants 24 March LBC Radio Open Europe's Stephen Booth was interviewed on LBC Radio arguing that the High Court's ruling on the entitlement of EU migrants' families to UK benefits demonstrates the extensive impact EU law has on the lives of EU citizens and UK taxpayers, and arguing that Europe should therefore play a bigger role in the general election campaign. EU 'wastes' millions on 'hip hop' dance and circus skills 24 March EurActiv 19 March Mail Jurnalul 18 March Telegraph Following the news of the EU's £366m cultural programme, Open Europe's Stephen Booth was quoted in the Telegraph saying, "These projects show that, if nothing else, EU bureaucrats have an exceptional talent for finding creative ways to waste taxpayers' money...Europe is struggling through the worst economic climate for generations and yet the EU budget is still being squandered on dubious projects that do nothing to create sustainable jobs and futures for European citizens". Open Europe Director Mats Persson was quoted in the Mail saying, "The EU's spending machine is completely out of sync with economic reality...the question is why EU bureaucrats should be involved in cultural initiatives in the first place. Surely this is better handled nationally or locally?" Mats was also quoted in Romanian daily Jurnalul. Open Europe's research on EU communication policy was also featured on EurActiv, which quoted former Open Europe Director Lorraine Mullally saying: "taxpayers should not be footing the bill for vain PR exercises to make us love the European Union. This senseless spending on dubious and silly projects has got to stop". Bill for each MEP due to rise to £2.1 million next year 23 March Express Open Europe's Stephen Booth was quoted in the Express in an article detailing the rise in the cost of MEPs, saying: "This is a huge rise in these tough economic times when governments across Europe are trying to find ways to save money. Taxpayers are being forced to tighten their belts. Euro MPs should do the same." Now EU will sent three presidents to summits 21 March Sunday Express 20 March The Southern Star 18 March Eurasia Review 16 March EU portal 15 March Al Jazeera Responding to the news that the EU plans to send its three presidents as representatives to global summits, Open Europe researcher Sarah Gaskell was quoted in the Sunday Express, saying: "This surely must be the final nail in the coffin of the Government's promise that the Lisbon Treaty would bring greater clarity to the European Union...Instead of Europe speaking with one voice we have two of the EU's many presidents fighting for the limelight and over who gets to speak on what issue." She went on to say, "Other countries at the G20 will be completely puzzled by the EU's failure to decide who should speak for it. It seems to change from one day to the next." In a report by US think tank The Heritage Foundation, featured on Eurasia Review, Open Europe's Director Mats Persson was cited saying, "Europe needs to concentrate on delivering policies for the 21st century, rather than on being seen as a 'global power.' The EU's consistent failure is an inability to recognise that it is the former that brings about the latter, and not the reverse". Open Europe's Stephen Booth was quoted on Czech website EUportal and in Irish newspaper The Southern Star saying: "No one in the UK voted for the creation of an EU Foreign Minister and no one across the EU has ever voted for Catherine Ashton. She is a complete lightweight." Sarah was also interviewed by Al Jazeera's English news channel, discussing whether or not Lady Ashton's trip to the Middle East might boost her credibility among her domestic constituency. Open Europe debate: Europe: A priority for the next government? 19 March The Parliament Open Europe's debate in the House of Commons was featured on The Parliament's website. Media credibility is damaged by EU subsidies 17 March Swedish Radio Swedish Radio interviewed Open Europe's Pieter Cleppe discussing how the EU Commission subsidises media such as Café Babel and Euradionantes. He said: "Some of them are doing a good job, but their credibility is being damaged because of the fact that they get EU money. Others are proper propaganda outlets". EU money spent on skiing trips and 'TV propaganda' 16 March Telegraph Open Europe Director Mats Persson was quoted by the Telegraph responding to an MEP's report critical of the European Parliament budget, saying: "This report illustrates the complete disregard that MEPs have shown for taxpayers' money. In this tough economic climate, it is astonishing that the European Parliament continues to justify spending money on luxuries such as ski holidays for its staff and their children...It is no wonder that less and less people are turning out to vote for MEPs. European taxpayers deserve much better." Open Europe is a small, lean operation which relies entirely on individual donations. We produce cutting-edge research on all aspects of EU policy, targeting both politicians and the media to campaign for radical reform of the EU. We unearth high-impact stories and hold high-profile events, and, despite being a small team, we are quoted and interviewed several times a week in the media. We believe there is a better way forward for Europe, and we need your help in trying to make our vision a reality. If you support our work and would like to help us continue to do it, please click the link below to find out how you can donate. Anything you can give will go directly to helping us counter the spin from EU officials and EU-funded lobby groups, and allow us to make our case for a fresh approach to Europe. Thank you for your support. Open Europe is an independent think tank campaigning for radical reform of the EU. For information on our research, events and other activities, please visit our website:openeurope.org.uk or call us on 0207 197 233Fortnightly Open Europe Bulletin: 26 March 2010 4. News in brief 5. Open Europe events 7. Please support Open Europe
Saturday, 27 March 2010
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