Britannia Radio

Open Europe

Fortnightly Open Europe Bulletin: 12 March 2010

100 days with the "nightmare" Lisbon Treaty  Creation of a 'European Monetary Fund' could require a new EU treaty  Proposed European Public Prosecutor could prosecute Britons without UK permission News in brief Europe in the news

Thursday (11 March) marked 100 days since the EU's Lisbon Treaty entered into force. French daily Le Figaro celebrated the occasion with an editorial, which read, "Did the authors of the Lisbon Treaty fool themselves? A hundred days after the birth of the 'newly formulated' union, Europe is struggling to make its voice heard, and the confusion...has increased at the top."   It continued, "Coincidence or not, the disorientating climate idealism at Copenhagen, the withdrawal of Barack Obama from a planned [EU-US] summit and...the attacks against the euro coupled with the collapse of Greece, all add to the gloom." (Le Figaro, 11 March)   Similarly, a leader article in German daily FT Deutschland on Tuesday (9 March) carried the headline, "Nightmare Lisbon Treaty":   "Europe has its celebrated Lisbon Treaty, its new constitution. However the Union has not become simpler for outsiders. What an anticlimax. The Member States fought long and hard for the treaty. So many thought that it would allow Europe to reach decisions faster, become more democratic and appear more united to the rest of the world. However, three months after the agreement came into force, the euphoria has evaporated." (FT Deutschland, 9 March)   Please leave you comments on our blog: http://openeuropeblog.blogspot.com/2010/03/nightmare-lisbon-treaty.html

 

2. Creation of a 'European Monetary Fund' could require a new EU treaty

The German Finance Minister Wolfgang Schäuble, backed by his Chancellor, Angela Merkel, has called for the creation of a 'European Monetary Fund' (EMF), modelled on the Washington-based International Monetary Fund. It would be used to provide assistance to stricken eurozone countries and would be reinforced by stronger EU 'economic governance' that could impose tough conditions on countries with excessive borrowings.   Schäuble wrote in the FT that eurozone members could be "granted emergency liquidity aid from a 'European monetary fund' to reduce the risk of defaults. Strict conditions and a prohibitive price tag must be attached so that aid is only drawn in the case of emergencies that present a threat to the financial stability of the whole euro area." He added that "Should a eurozone member ultimately find itself unable to consolidate its budgets or restore its competitiveness, this country should, as a last resort, exit the monetary union while being able to remain a member of the EU." (FT: Schäuble, 12 March)   France has given its backing to the proposed EMF as a "medium term priority" but the plan has already received opposition from Germany's representative on the European Central Bank's Executive Board Jürgen Stark and from German Bundesbank President Axel Weber, who described it as "not helpful". (IHT, 9 March)   With discussions at an early stage, important questions remain unanswered, including whether the creation of an EMF would require a change to the EU treaties and whether it would include all 27 member states or just the eurozone. French officials have said there is an "open debate" on both issues. (FT, 8 March)   However, Angela Merkel has said that "without treaty changes we can't form such a fund" - a view endorsed by Commission President Jose Manuel Barroso, since an EMF would appear to violate the current "no bailout" rule in the EU treaties. (EUobserver, 9 March; Irish Times, 10 March)   In this scenario, the creation of an EMF, with or without UK involvement, would have political ramifications in the UK, with the prospect that EU treaty change could force a Conservative government to call a referendum, as it could fall under the party's promise to put any future EU treaty to a public vote.   Meanwhile, Downing Street has said that it would oppose any new treaty. "The Government opposes further institutional change in the relationship between the EU and member states for this parliament and the next," a spokesman said. However, Europe Minister Chris Bryant said that the Government was so far "agnostic" about the idea of an EMF. (Telegraph, 9 March)   Alternatively, EU leaders and the EU institutions could come up with a legal solution involving one of the Lisbon Treaty's 'flexibility' clauses, which allow for amendment of the Treaty without it being considered an actual 'treaty change' - a move favoured by French Finance Minister Christine Lagarde. (IHT, 9 March)   Please leave your comments on our blog: http://openeuropeblog.blogspot.com/2010/03/threat-or-opportunity.html

 

3. Proposed European Public Prosecutor could prosecute Britons without UK permission

The Spanish EU Presidency, backed by France and Germany, has announced that it is going to propose the creation of a European Public Prosecutor (EPP) in April, using powers under the Lisbon Treaty. Although the UK Government has consistently opposed the plans, it is powerless to stop them going through, as they can be passed as long as they have the backing of nine member states under the EU's so-called "enhanced co-operation".   When the Lisbon Treaty was being negotiated, the UK was strongly opposed to the creation of an EPP, even if the Government was granted a veto. At the time, Peter Hain wrote on behalf of the Government that, "We are firmly opposed to establishing a European Public Prosecutor. Unanimity does not mean that this article can be accepted...There is clearly no need for a separate prosecution body at EU level."   Controversially, even if the UK 'opts out' from the plans, although the European prosecutor will not be able to bring cases in this country, it will still be able to issue European Arrest Warrants to force UK citizens to face prosecution in another member state - without asking the permission of the Government or the UK's Director of Public Prosecutions. This would leave UK citizens to face prosecution by an EU prosecutor the Government has had no hand in setting up. (Telegraph, 8 March; Open Europe research)   The Spanish EU Presidency has said that the EPP "would initially investigate fraud and speculation against the euro". However, the Presidency's website notes that "it could also investigate and initiate criminal proceedings against cross-border crimes such as people trafficking, drug trafficking or terrorism." (Spanish EU Presidency)

4. News in brief

Catherine Ashton is the highest paid female politician in the world. EU Foreign Minister Catherine Ashton's salary package of £328,000 a year makes her the highest paid female politician in the world, ahead of US Secretary of State Hilary Clinton and German Chancellor Angela Merkel. If she survives for a five-year term, she will be entitled to a gold-plated £64,000 pension and a £464,000 'transition allowance'. Meanwhile, Baroness Ashton has complained to the press that a lack of resources, such as her own plane, is holding her back in her work. (Mail: Pierce EUobserver Telegraph Observer: Hutton Le Monde, 8 March)   European Parliament hands out cash in envelopes while MEPs vote for increased allowances. In a committee debate between MEPs, it has been revealed that the European Parliament's expenditure in 2008 included more than £70,000 spent on ski holidays for families of Parliament officials, as well as hundreds of pounds handed out in brown envelopes to visitors to cover their food and travel, with no receipts needed. Separately, MEPs have awarded themselves £12 million in extra allowances including an additional £1,300 a month each to pay staff plus money to hire another 150 aides to cope with the increased workload created by the Lisbon Treaty. The increase will come on top of the £15,447-a-month they get to pay assistants, a 'general allowance' worth over £44,000 a year, and a £265-a-day 'subsistence allowance' for each day they attend Parliament. (NOTW Express Express: Leader, 1 March)   Proposed EU carbon tax would cost UK economy at least £3.2bn. EU Commissioner for Taxation Algirdas Semeta has announced that plans to propose a minimum rate of tax on carbon across the whole of the EU are seen as a "priority". Open Europe has calculated that the tax will cost the UK economy £3.2bn a year. Although the actual revenues from the levy will be collected and kept by national governments, the European Commission has long seen the introduction of EU-wide 'green taxes' as a step towards a direct EU tax, used to directly finance the EU budget. The UK Government has pledged to block the plans. (European Voice Telegraph EUobserver Open Europe blog, 5 March)   EU spends millions on dubious culture projects. The European Commission is spending millions of euros of taxpayers' money on cultural projects, such as the "European Joysticks Orchestra", which has been handed more than £50,872 to compose works, host concerts and train teachers in the "art" of creating music using the computer device. Another project, the "European Laboratory for Hip Hop Dance" will receive £44,931 of taxpayers' money to "improve the recognition and visibility of hip hop dance in Europe" and "encourage connectivity between hip hop artists". (Sunday Express Open Europe blog, 1 March)   Londoners face scramble for Olympic tickets due to EU rules.  London Assembly Member Dee Doocey has announced that there will be no preference shown to the capital's residents in the race to secure tickets for the 2012 Olympics, as EU law forbids discrimination in favour of the host country. (BBC Open Europe blog, 4 March)

 

5. Open Europe in the news

Germany proposes IMF-style European Monetary Fund 10 March Telegraph Express   Open Europe Director Mats Persson was quoted by the Telegraph saying that the creation of an EMF will "be seen, rightly, as a step towards fiscal federalism. That would be a step in the wrong direction for the UK." He added that, although Britain is outside the euro, it was "not inconceivable that the UK could take part in some way" in an EU bailout fund.   Open Europe's Stephen Booth was quoted in the Express saying, "This goes to show that the EU's appetite for more and more power did not stop with Lisbon. Taking more steps towards economic integration, against the will of the majority of citizens, would be deeply undemocratic and only serve to further alienate ordinary voters from the EU."    He went on to say, "The UK should play no role in any bail-out fund for the EU.  British taxpayers should not be asked to underwrite the debts of EU governments that they cannot vote out of office.  It would be a totally unacceptable step towards economic federalism, which has no popular support among UK voters."   The potential cost of a Greek bailout 7 March Sunday Business Post   The Sunday Business Post reported on Open Europe's briefing on how much a Greek bailout could cost EU taxpayers, which found that Ireland's share of a bailout would be between €227 million and €406 million.   Planned European Public Prosecutor could prosecute Britons without UK permission 6 March Telegraph Vancouver Sun   In an article detailing the possible impact of a European Public Prosecutor, Open Europe's Sarah Gaskell was quoted by the Telegraph, saying; "This is an extremely worrying move for UK citizens, who could face prosecution by a European Public Prosecutor that the UK Government had no hand in setting up...This just goes to show that the Government's so-called 'opt-outs' from the Lisbon Treaty in justice and home affairs are a totally inadequate safeguard for the UK's criminal and justice system. A future government needs to fundamentally reform Britain's participation in EU criminal and justice rules and reclaim much greater control over the legal rights of its citizens."   The article was syndicated in the Vancouver Sun.   Commission plans for carbon tax would cost UK economy at least £3.2bn 6 March Express 5 March BBC Today Programme 4 March Telegraph   The Telegraph and Express reported on the Commission plans for a Europe-wide carbon tax and cited Open Europe's calculation that the cost of the new tax to British businesses and consumers would be £3.2 billion.   Open Europe Director Mats Persson was quoted in the Telegraph saying that "a single EU levy is an unnecessarily inflexible tool" that takes no account of existing national taxes or measures to cut climate change. "A single flat rate will disproportionately hit poorer consumers who spend a larger share of their income on energy and fuel bills," he said. "It will also impose a disproportionate burden on small businesses, which are vital for economic recovery and growth. The EU needs a more flexible and proportionate approach to cutting carbon emissions." Mats also appeared on the BBC's Today Programme discussing the plans.    Ashton is the highest paid female politician in the world 6 March Mail: Pierce   In the Mail, Andrew Pierce noted that EU Foreign Minister Catherine Ashton's salary package of £328,000 a year makes her the highest paid female politician in the world. The article quoted Open Europe's Stephen Booth 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."   Barroso's vow to use Lisbon Treaty to create "economic governance" 4 March Mail Express   Open Europe Director Mats Persson was quoted in the Mail and the Express saying, "The unelected Commission is seeking to gain power over one of the core features of democratic politics - deciding how a country's economy is run. This has no public support and runs the risk of being hijacked by narrow political interests."   He added, "While everyone is in favour of more growth and jobs, it's far from clear how this will be achieved by allowing the EU to set even more central targets. Economic growth receives its thrust from individuals, businesses and communities - it cannot be forced from the centre."   Is the EU a threat to civil liberties? 2 March Private Eye       Private Eye's Brussels Sprouts column reported on Open Europe's recent event in Brussels, "Is the EU a threat to civil liberties", noting that Director-General at the European Commission Jonathan Faull admitted that the European Arrest Warrant had not been very successful.   MEPs vote for increased allowances 28 February NOTW InterEconomia LBC Radio   The NOTW reported on the European Parliament's vote to award MEPs increased allowances, quoting Mats Persson saying, "The last thing taxpayers want to hear is that Euro-MPs are getting even more money."   Open Europe's Pieter Cleppe was quoted by Spanish news site InterEconomia saying: "It is not appropriate...Whilst we are in the midst of a full blown crisis, and have to keep a lid on public spending, it turns out that the European Parliament have decided to increase their budget."   Open Europe's Sarah Gaskell appeared on Andrew Pierce's LBC radio show discussing the vote in favour of increasing MEPs' staff allowances by €1,500 a month.    EU spends millions on dubious culture projects  28 February Sunday Express   The Sunday Express reported that the European Commission is spending millions of euros of taxpayers' money on "meaningless" cultural projects and quoted Open Europe's Stephen Booth as saying, "Despite the worst recession for generations, the unaccountable EU institutions continue to fritter away money in a completely nonsensical manner."   European Parliament criticised for handing out cash in envelopes 27 February Express   An article in the Express looked at the European Parliament's expenditure and quoted Mats Persson saying: "The European Parliament already has a terrible reputation for wasting taxpayers' money. Now we hear that citizens' cash is being handed over, ready-packaged, in brown envelopes without a second thought."

   

6. Please support Open Europe

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.   http://www.openeurope.org.uk/about-us/makeadonation.aspx