Open Europe is hosting a debate in Brussels tomorrow titled “Will the German Constitutional Court put an end to Euro bailouts?” 10am - 11.30am, at the University Foundation, Rue d'Egmont, 11, 1000 Brussels, with Professor Dr. Markus Kerber, the initiator of a legal challenge against the Eurozone bailouts. To attend, please send an e-mail to: pieter@openeurope.org.uk or call 00 32 477 68 46 08. Europe MPs to debate EU Bill’s sovereignty clause; John Redwood MP: Sovereignty will only be asserted when the Government seeks to repatriate powers The EU Bill returns to the House of Commons this afternoon, with MPs debating the Bill’s ‘sovereignty clause’. The Telegraph quotes Conservative MP Bill Cash saying that he expects “substantial numbers” of his colleagues to defy the Government and back his amendments but the article suggests that he has failed to “win significant support for his rebellion among the new generation of Tory MPs first elected last year.” In a letter to the Times, Open Europe Chairman Lord Leach argues that MPs “should not be concerned” over the sovereignty clause in the EU Bill and rather than focussing on the debate surrounding Parliamentary sovereignty, MPs contemplating amendments to the Bill “would do better to focus on helping the coalition to tighten the safeguards against the transfer of powers to the EU contained in the Bill’s ‘referendum lock’.” Also in the Times, Conservative MP John Redwood writes, “Sovereignty will only ever effectively be reasserted when a government seeks to repatriate powers from the EU.” He adds, “While Parliament debates sovereignty in the abstract, it is ignoring momentous events on the Continent…The EU’s need to strengthen its economic governance of euroland offers the UK an important negotiating opportunity. The EU will need the UK ’s consent to any treaty change or major transfer of powers…What better demonstration of British sovereignty could there be than repatriating powers?” Speaking on the BBC Today Programme, Europe Minister David Lidington said that the “wriggle-room” for ministers on holding a referendum on significant EU treaty changes “is narrowed down to the smallest margin possible” by the Bill. Times: Leach Times: Redwood Telegraph Telegraph: Leader Guardian Conservative Home: Goodman John Redwood's diaryPolitics.co.uk Express BBC EUobserver BBC Today: Lidington Dutch ex-member of European Court of Auditors blasts EU fraud; Auditors came under “heavy pressure” from EU Commission to water down criticism In an interview with De Volkskrant, Maarten Engwirda, a Dutch member of the European Union's Court of Auditors (ECA) for 15 years, reveals that members of the ECA have covered up irregularities and fraud with EU funds, singling out his French and Italian colleagues in particular. He speaks of a “culture of cover up”, adding that “it was a practice of watering down if not completely removing criticism…I wanted to write a book, I was so sick of it all.” He also speaks of “heavy pressure” from then EU anti-fraud Commissioner Siim Kallas in 2005 for the Court, which is responsible for auditing the EU budget, to relax its standards. This pattern of obstruction continued until after 2005 and only after Mr Engwirda had convinced his colleagues that their work be reviewed by national audit offices did things begin to change. Since 2008, the Dutchman says that this sort of activity has stopped. ECB steps up purchase of Portuguese bonds; Portuguese Central Bank Director: external aid “will be inevitable” The European Central Bank stepped up its purchase of Portuguese ten-year bonds yesterday. However, Reuters reports that yields on Portuguese ten-year bonds remain above 7% despite the ECB’s intervention – a level widely considered unsustainable. The FT quotes Gary Jenkins, head of fixed income at Evolution Securities, noting that “it took Greece 16 days and Ireland 20 days to request EU/IMF aid after their ten-year yields breached the 7% level.” According to UniCredit economist Marco Valli, a bailout package for Portugal could total around €60bn. The front page of Portuguese paper Público carries the headline: “Preparations for IMF aid to Portugal have already begun.” Lusa reports that Portuguese Central Bank Governor Carlos Costa insisted yesterday that “the Portuguese solve their problems and are able to solve their problems on their own.” However, Teodora Cardoso, a member of the Board of Directors of the Portuguese Central Bank, is quoted inJornal de Notícias arguing, given the situation of the markets, external aid “will be inevitable”. The FT argues, “It is impossible to know how long the [Portuguese] government will resist the inevitable, although China ’s apparent willingness to become Portugal ’s sugar daddy suggests later rather than sooner.” The Telegraph reports that Belgian King Albert II has asked caretaker ministers to push through a special austerity budget to reassure markets against the threat of contagion after the latest round of talks to form a coalition government broke down. Meanwhile, an article in the Times notes that US money market funds have cut back their dealings with the eurozone’s financial services sector amid fears that the sovereign debt crisis could infect the region’s banking system. The WSJ reports that the Obama administration considers the eurozone debt crisis – rather than the overhaul of the international monetary system – as the most pressing issue to be addressed by French President Nicolas Sarkozy’s stewardship of the G20. Lusa Jornal de Notícias WSJ WSJ 2 Telegraph Guardian Mail Irish Times Irish Times 2 Times Euractiv Le Figaro Independent AFP AFP 2Reuters Euractiv France Les Echos City AM FT FT 2 FT 3 FT 4 FT 5 FT 6 FT7 IHT IHT 2 El Pais Público Diário Económico Jornal de Notícias: editorial BBC: Hewitt WSJ: Hannon WSJ: Barley FT: Butler FT: editorial El Pais: Colombani El Pais: Crespo Diário Económico blog: Batista Diário Económico blog: Amaral France proposes alternatives to Weber for ECB President A report in Wirtschaftswoche suggests that Bundesbank Chief Axel Weber’s chances to succeed Jean-Claude Trichet as ECB President could fail because of French resistance, with French President Nicolas Sarkozy reportedly providing German Chancellor Angela Merkel with a list of alternative German candidates, including Klaus Regling, the chairman of the €440bn European Financial Stability Facility. No link Stuart Wheeler, who once gave £5million to the Conservatives, has been unveiled as UKIP’s new treasurer. Belgian daily De Tijd reports that according to the Belgian supervisory committee on intelligence services, the Belgian authorities bungled an investigation into espionage within the European Council building in Brussels . Germany, France, Britain and Spain concluded that the eavesdropping, which came to light in 2003, had been going on since 1994 or 1995. In the IHT, John Vinocur notes that US officials are concerned that the EU may lift its arms embargo on China . EU Agriculture Commissioner Dacian Cioloş has said that food price increases “show the importance of a strong CAP.” UK City AM reports that according to a report by the European Council, the UK is home to Europe ’s most stringent and wide-ranging bank levy, raising concerns about “spill-over effects, distortion of competition and relocation of businesses” within the EU. Of all the levies looked at, the UK tax has the widest scope and the greatest potential for double-taxing banks. World The Times reports that EU Foreign Minister Baroness Ashton has “strongly condemned” Israel ’s building of “illegal new settlements” in east Jerusalem . Writing in the WSJ today, Israel ’s Deputy PM and Foreign Minister Avigdor Liberman criticises the EU’s approach to the situation in Gaza . Open Europe
Tuesday, 11 January 2011
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