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Europe
New Open Europe research: EU regulation has cost UK economy £124 billion since 1998;
UK laws 2.5 times more cost effective than EU laws
Open Europe has today published the most comprehensive study to date on the cost and benefits of regulation in the UK since 1998. Based on over 2,300 of the Government's own impact assessments, Open Europe finds that regulation has cost the UK economy £176 billion since 1998 - roughly equivalent to the country's entire budget deficit. Of this amount, £124 billion, or 71%, had its origin in EU legislation.
The study finds that while both the European Commission and UK Government have taken positive steps to cut down on burdensome legislation, the cost of regulation keeps on going up. Since the UK Government launched its 'Better Regulation Agenda' in 2005, the annual cost of regulation introduced since 1998 has doubled, now standing at £32.8 billion, 59% of which stems from EU legislation.
Open Europe also estimates the benefit/cost ratio of EU regulations at 1.02, while the ratio of UK regulations is 2.35. In other words, for every £1 of cost, EU regulations introduced since 1998 have only delivered £1.02 of benefits, meaning that it is 2.5 times more cost effective to regulate nationally than it is to regulate via the EU.
The FT notes that the study warns that the Conservatives' heavy focus on regulatory reform of domestic rules rather than EU rules "could lead to contradictory or undeliverable policies since a future Conservative government will only have full control over 28 per cent of the cost of regulation". The study is cited by Patience Wheatcroft in the Wall Street Journal and is featured on page 2 in the Sun. It is also covered by the Telegraph, Mail, Evening Standard, City AM, EurActiv, Express, Conservative Home, Reuters, The Parliament, Liverpool Post, and on PA and Alex Rossi's Sky News blog.
Open Europe's Sarah Gaskell is quoted in several articles arguing, "Our research clearly shows that it's far more cost-effective to regulate domestically than is it is to legislate through the EU. This means that passing laws as close as possible to the citizen is not only more democratic, but also vastly cheaper. This shows the massive influence the EU has over our economy and everyday life. Whether we think this is a good or a bad thing, politicians can no longer be in denial over the extent of this influence and must dedicate much more attention to the EU in the run-up to the general election."
Open Europe research Open Europe press release FT WSJ: Wheatcroft Telegraph Mail Evening Standard City AM Euractiv PA Conservative Home Sky News blog Reuters
Barnier 'reminds' Conservatives that decision on AIFM Directive will be taken by majority vote
Handelsblatt reports that EU Internal Market Commissioner Michel Barnier has said he remains in favour of very strict standards for hedge funds and that US Treasury Secretary Tim Geithner's letter protesting against the protectionist aspects of the AIFM Directive "didn't impress me at all". Mr Barnier is planning a trip to the US at the beginning of May to discuss the problems with the Directive with Mr Geithner.
Die Presse quotes Mr Barnier saying that, "I believe that an agreement is possible in June." When asked about concerns that a Conservative victory in the UK General Election could delay agreement, Barnier said that, "I would like to remind people that this decision will be taken with quality majority voting."
Irish Times Handelsblatt Die Presse Frankfurter Allgemeine Zeitung OE research: AIFM Directive OE research: AIFM and Investment Trusts
IMF would "define the conditionality" of Greek rescue package;
Greece raises €5bn on the markets but price of borrowing remains high
The International Monetary Fund's Managing Director, Dominique Strauss-Kahn, has said that the IMF would dictate the terms of any assistance it provides Greece, Bloomberg reports. He said that, if there is a program, "it will be an IMF program decided by the IMF as it happens with each and every country. The IMF will define the conditionality, as we do with any country." Strauss-Kahn's comments signal a potential turf battle with European leaders, following pledges at last week's EU summit that European governments would remain in control of the terms of a bailout.
NouvelObs quotes Strauss-Kahn saying that the financial architecture of the EU needs a "fundamental" overhaul. He said, "Following this crisis, we must accelerate European integration and not slow it down (...) it is time to bring the European project to a higher level." He added, "One of the lessons of the crisis in Europe is that a single currency without sufficient economic coordination can lead to huge imbalances".
Meanwhile, the FT reports that Greece successfully raised €5bn in bond sales yesterday. However, the WSJ notes that Greece's borrowing costs remain high, signalling that the markets remain unconvinced by last week's EU promises of a rescue package.
Writing in the FT, Gideon Rachman argues that a lack of popular support means that the eurozone cannot pursue the 'political union' required to fix the euro's problems. He concludes that, "Increasingly the euro looks less like an indissoluble union, and more and more like an unhappy marriage between incompatible partners."
FT City AM BBC EurActiv Guardian IHT FT: Rachman Bloomberg Eurointelligence NouvelObs
Germany and France prepare common plan for EU-wide banking levy
Handelsblatt reports that Germany and France are preparing a common plan for an EU wide banking levy, with details to be discussed tomorrow when French Finance Minister Christine Lagarde participates in a meeting of the German Cabinet. According to the current plan of the German Finance Minister, the German financial sector would have to contribute €1.2 billion per year to a new insurance fund, which would help banks in difficulties.
Lagarde is reportedly open to using the receipts of the levy not just for the fund, but also for the general state budget, something which German trade unions also favour.
Former Dutch EU Commissioner calls for "Commission of 12" to "stop the stream of useless initiatives"
In an opinion piece in Belgian daily De Standaard, former Dutch EU Commissioner Frits Bolkestein argues in favour of reducing the number of EU Commissioners. He adds that he came to the opinion, "because of the proposals made by the European Commission...A proposal to grant independent women the right to pregnancy leave. Both in the Netherlands and Bulgaria, shouldn't we decide on that ourselves? The European Commission has apparently learned nothing from the Nos in France and the Netherlands...Under Barroso the Commission has become a presidential system. Now there are 27 Commissioners. Power is with the President and his Chief of Cabinet. The Chief of Cabinet has more power than many Commissioners. Discussions within the Commission don't mean anything any more."
He adds, "What do Commissioners want? They want to get into the picture with initiatives, smart or not...The only way to stop the stream of useless initiatives is to reduce the number of Commissioners to what is necessary to steer the EU. I think a Commission of twelve capable people is enough."
Sarkozy pushing Commission to propose EU carbon tariffs
Le Monde reports that the controversial proposal for an EU 'carbon tariff system' has made a return after statements made by French President Nicolas Sarkozy last Friday in Brussels, following the EU summit. The article notes that Sarkozy caused confusion, saying that Commission President José Manuel Barroso had said he would table a proposal in June to tax imports from countries that have less developed climate change policies. Luxembourg Prime Minister Jean-Claude Juncker told France 24 television, "I share the idea that Europe will need to reflect further on the introduction of a carbon border tax."
Le Monde quotes EU Trade Commissioner Karel De Gucht saying that the proposal for a carbon tariff "is protectionist and could trigger a trade war."
Le Monde Le Parisien Le Monde 2
France seeks to defend agriculture spending post-2013
RFI reports that, during a meeting in Brussels yesterday, the EU's 27 agriculture ministers proved to be far from a consensus as to the shape of the Common Agricultural Policy post-2013, when the next EU budget round commences. At least four countries - France, Ireland, Portugal and Romania - insisted that the EU's new 2020 economic strategy should not seek to reduce the agriculture budget. However, another group - including Germany, Denmark, the Czech Republic and Luxembourg - said it was not the right occasion to talk about the budget.
RFI Fenetre sur l'Europe European Voice
German-Turkish tensions continue as Merkel opposes EU membership
The Guardian reports that Turkey's Europe Minister Egemen Bagis yesterday rejected German Chancellor Angela Merkel's offer of a "privileged partnership" with the EU rather than full membership. He said that such a partnership "does not exist, so we do not take that option seriously." The IHT reports that Mr Bagis also criticised the attempts made by Germany and France to sell arms to Greece while simultaneously pressing for austerity cuts.
EUobserver Guardian Irish Times IHT
Open Europe's Pieter Cleppe was interviewed by Polish daily Rzeczpospolita on the subject of whether it is acceptable for people involved in EU projects on the national level to seek employment in the EU institutions. He said that several national politicians are European Commission officials on unpaid leave, who can always take up a job at the Commission afterwards, which "limits their ability to take a critical stand towards the actions of EU institutions."
The Spectator Coffee House blog examines possible candidates for the controversial post of Secretary-General of the EU's new External Action Service. It argues that, if France's ambassador to the US, Pierre Vimont, the current favourite, is appointed, it would "amount to an impressive hat-trick for Nicolas Sarkozy. Pierre de Boissieu, is the Secretary-General of the Council and a Frenchwoman, Claude-France Arnould, runs the EU's crisis management bodies."
EurActiv notes that the proposed outline of the new 'Citizens Initiative', introduced by the Lisbon Treaty, is reportedly "too complex" to use and will demand extensive personal details. The article notes that each signatory of a statement of support will have to provide a variety of personal data, including name, street address, email address, date and place of birth, nationality and personal identification numbers (passport; ID card; and social security).
In a series of interviews with the FT, various business leaders have expressed concern that debt problems of countries such as Greece and Portugal will weaken already sluggish growth, and have a detrimental effect on European growth as a whole.
The Express reports that EU "quangos" cost £100m, with the UK footing around one tenth of the bill.
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Süddeutsche Zeiting reports that Germany wants to stop an internet filter being proposed at the EU level, with Justice Secretary Leutheusser-Schnarrenberger saying they "do not embody an effective medium against child pornography."
On his FT Brussels blog, Tony Barber reports that, under new sporting provisions in the Lisbon Treaty, the Commission has published a report ranking EU member states by sporting participation and he asks, "Will the Commission call for sanctions against member states that do not meet Brussels' aerobics targets?"
UK
A new ComRes poll for the Independent has put the Conservatives on 37, Labour on 30, the Lib Dems on 20 and other parties on 13. However, 38 percent of people believe the country would be better off with a hung parliament and coalition Government.
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