Friday, 2 July 2010

Fortnightly Open Europe Bulletin: 2 July 2010
  • The EU's economic government: Commission wants to suspend EU subsidies for countries breaking budget rules
  • EU breaks promise to keep diplomatic service budget neutral
  • News in brief
  • Open Europe events
  • Open Europe in the news

Quote of the fortnight:

"The biggest stumbling blocks for the Belgian presidency are with the European Parliament, an incalculable and badly organised partner. You don't know whether the opinion of MEPs is decided by the content of a matter or by the wish to be visible and show their own power. In some matters they don't even know that themselves."

Jean De Ruyt, the Head of the Belgian Permanent Representation to the EU, in an interview with Belgian newspaper De Tijd, 1 July 2010


1. The EU's economic government: Commission wants to suspend EU subsidies for countries breaking budget rules

The Commission issued its proposals for strengthened economic governance in the EU on Wednesday. The plans envisage that countries which persistently break the rules on budget deficits and public debts could see their EU regional aid, agriculture and fishing subsidies partly suspended. This proposal, unlike plans to suspend member states' voting rights, would not require a change to the EU treaties. (Commission press release Commission communication, 30 June)

Britain receives up to £3.6 billion in farm payments and £1.9 billion in aid for poor regions annually, which could potentially be at risk if the UK was included in the plans and broke the EU's deficit rules. Other countries including France , which receives around €10 billion annually in farm subsidies alone, would likely oppose any move to suspend such payments. (Telegraph WSJ, 1 July)

A more comprehensive package of proposals to create an EU economic government will be brought forward in September. (EUobserver, 28 June)

Meanwhile, a report from the European Parliament to be voted on in October, drafted by French Socialist MEP Pervenche Berès, proposes to go much further, and envisages the creation of a "Mr Euro", who would combine the positions of Economic and Monetary Affairs Commissioner, the President of the Eurogroup, and the President of the Council for Economic and Financial Affairs.

Berès has also raised the idea of direct taxation to fund the EU budget saying: "The EU must be equipped with the financial and budgetary means it needs to take action autonomously", suggesting that the proceeds of a financial transaction tax be an own resource for the EU budget. (EurActiv France, 2 July)

To read Open Europe's briefing on the rise of the EU's economic government, click here:

http://www.openeurope.org.uk/research/economicgovernment.pdf

Please leave your comments on our blog:

http://openeuropeblog.blogspot.com/2010/06/opposing-economic-government.html

2. EU breaks promise to keep diplomatic service budget neutral


EU Foreign Minister Catherine Ashton last week reached an agreement with the European Parliament on the shape of the European External Action Service (EEAS), the EU's new diplomatic corps. It will aim for a staff of more than 6,000 people, with the European Parliament succeeding in ensuring that at least 60 percent of the staff will be permanent EU officials rather than national diplomats, in an effort to assure that loyalty primarily lies with the EU, rather than with member states. (FT, 22 June)

The EEAS will be headed by Baroness Ashton, but the Foreign Minister of the country which holds the rotating EU presidency will be her deputy. Additionally, three EU Commissioners (Enlargement, Development and Humanitarian Aid) will serve as other deputies. The service will also feature three senior Secretary-General positions, meaning that Ashton will be served by seven deputies in total. (EurActiv, 22 June; EUobserver, 2 July)

Baroness Ashton has already backtracked on her original assurance that the EEAS would be "budget neutral" - i.e. require no more funds than the previous departments which it replaced. It has been revealed that the cost of the EEAS is now expected to reach €900m once it is fully operational, a 50 percent increase from the current cost of the EU's overseas missions (Sunday Times, 27 June).

3. News in brief

British MEPs have the worst attendance rate in EP. Votewatch.eu has issued a report on voting behaviour in the European Parliament, which finds that British MEPs have the worst attendance rate in the European Parliament - 85.22 percent, while Austrian MEPs have the best at 94.86 percent. (Votewatch report, Die Presse, 1 July)

Over 1,000 unelected EU officials paid more than UK PM. It has been revealed that 1,023 unelected EU officials receive higher salaries than Prime Minister David Cameron's annual income of £142,500. This group includes European Council President Herman Van Rompuy, EU Foreign Minister Catherine Ashton and Commission President José Manuel Barroso - along with at least 90 unelected British EU officials. Research and information requests have also found that there are 19 European Parliament assistants - or researchers to MEPs - who earn £75,752 a year. A British MP in the House of Commons earns just £65,738. (Telegraph, 21 June)

EU Conference agrees amendment to Lisbon Treaty. An Intergovernmental Conference (IGC) of EU ambassadors has agreed on an amendment to the Lisbon Treaty to allow an extra 18 MEPs to begin work at a cost of £7 million a year to taxpayers. The conference only lasted fifteen minutes, and the amendment must now be ratified by all 27 member states, which will mean a House of Commons vote taking place later this year. (European Voice, 24 June)

Italian MEP campaigns for a European UFO Centre. Italian MEP Mario Borghezio, who sits in the same group as UKIP in the European Parliament, has submitted a written declaration to the European Parliament calling for the creation of a European centre to study UFOs. The text calls on EU member states to open "public archives on UFOs" and for records "to be declassified by member states." (Die Welt, 28 June)

51 percent of Germans want the Deutschmark back. An IPSOS poll has found that 51 percent of German voters want to return to the Deutschmark, with only 30 percent wanting to keep the euro. 56 percent of those over 50 years old said they wanted the former German national currency back and 42 percent of those between 16 and 29 shared this view. (AFP, 29 June)

4. Open Europe events

Open Europe held an event in Brussels on 23 June entitled, "The EU after the Euro crisis: Superstate or disintegration? Speakers included Conservative MEP Dan Hannan; Jochen Bittner, EU correspondent for Die Zeit; Giles Merritt, Secretary-General of Friends of Europe; and Open Europe Director Mats Persson.

Open Europe also hosted a book launch in the House of Lords for Dutch MEP Derk-Jan Eppink's new book, "Bonfire of Bureaucracy in Europe ".

To read a summary of the events, or listen to an audio recording, please visit our events page:

http://www.openeurope.org.uk/events/

5. Open Europe in the news

Foreign Secretary wants more British officials in EU institutions

2 July Deutsche Welle Radio

Open Europe 's Mats Persson was interviewed by Deutsche Welle Radio, discussing William Hague's first speech as Foreign Secretary and British influence in the EU.

'The EU after the Euro crisis: Superstate or disintegration?'

1 July Telegraph: Hannan 30 June EUobserver blogs

Conservative MEP Daniel Hannan summarised on his Telegraph blog the arguments he set out at Open Europe's debate in Brussels on "The EU after the Euro crisis: Superstate or disintegration?" Open Europe Director Mats Persson also gave his account on his EUobserver blog.

Commission outlines plan to suspend EU subsidies for countries flouting deficit rules

30 June Telegraph

Following the publication of new proposals to issue sanctions against EU countries that fail to conform to rules on deficits, Open Europe's Stephen Booth was quoted by the Telegraph calling on the government to oppose a "disproportionate" measure, adding: "The UK has said it will play no part in the euro for the very reason that it wants to maintain control over economic and monetary policy. Why would the government then agree to be sanctioned by an economic government designed for the eurozone?"

MPs' expenses: New Lords allowance regime 'open to abuse'

29 June Telegraph

In response to the news that the new House of Lords' expenses system will be operated on a per diem basis, Open Europe Director Mats Persson was quoted in the Telegraph pointing to the experience of the European Parliament, where MEPs were caught "signing in and sloping off". He added, "The idea of a per diem allowance eliminates a lot of accountability."

Protests against austerity measures paralyse Greece

29 June Russia Today

Open Europe's Mats Persson appeared on Russia Today, discussing the austerity programmes around Europe and the eurozone crisis.

George Soros: Germany 's economic policy "is becoming a danger for Europe "

24 June Express

With rumours spreading about the potential collapse of the euro, Stephen Booth was quoted by the Express in relation to Germany's economic policies, saying: "Germany understandably wants to maintain control over its economic policy but this crisis has shown that being part of the single currency involves huge responsibilities to the other euro countries, something which politicians didn't tell their citizens when they signed up to the euro."

EU takes on extra 18 MEPs for £7 million

23 June Telegraph

Open Europe's Pieter Cleppe was quoted in the Telegraph, as the European Union amended the Lisbon Treaty to allow an extra 18 MEPs to begin work, saying that it was "strange that the EU sees it fit to go through a complicated process of treaty reform just to provide for more jobs in the European Parliament - at a time when virtually every country in Europe is cutting back. This says a lot about the EU's priorities. If anything, the EU's institutions should be slimmed down."

Osborne axes Treasury's "Euro Preparations Unit"

22 June Telegraph


Open Europe's
Mats Persson was quoted in the Telegraph responding to George Osborne's announcement that the UK will not join the euro during this Parliament, saying: "There is no appetite among the British public to join the Euro so it is good to hear the Chancellor confirming this for sure. The eurozone crisis has raised economic and political questions about whether Britain should join the Euro at any time."

Cameron backs EU treaty deal in move that could block another referendum

22 June Mail

Following David Cameron's assurance that the UK would be prepared to support changes to the EU treaties to strengthen the rules of the euro Mats Persson, Director of Open Europe, was quoted by the Mail saying: "This is an opportunity for David Cameron to seek to repatriate some powers to Britain or reclaim some of our budget rebate."

Over 1,000 unelected EU officials paid more than David Cameron

22 June Express

After revelations that over 1,000 EU civil servants are paid more than the UK Prime Minister, Open Europe's Stephen Booth was quoted in the Express arguing: "While the Government prepares for the most painful Budget in recent memory, taxpayers will be outraged to hear that their money is spent on eye-watering salaries for unelected Brussels bureaucrats. This demonstrates just how out of touch the EU is with the ordinary citizens."

Record numbers take part in EU student mobility scheme

22 June EurActiv

Open Europe 's study 'The Hard Sell' was cited by EurActiv in an article examining EU funding for education and culture programmes.

Cameron returns from first EU summit

21 June Guardian: Booth EUobserver: Persson's blog

Writing for the Guardian's Comment is Free, Open Europe's Stephen Booth argued that, at his first EU summit, David Cameron successfully avoided greater incursions on the UK 's economic sovereignty but that the most divisive issues were deferred until the Autumn. On his EUobserver blog, Open Europe Director Mats Persson argued that "indeed, this was the most uneventful and dull European Council summit in years. But this dullness may prove deceiving."

Austerity but not for the EU

21 June Tele Madrid

Appearing on Spanish TV channel Tele Madrid , Open Europe's Pieter Cleppe criticised the European Commission and the European Parliament for demanding more money for the EU budget at a time when all governments in Europe are facing massive budget cuts.