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Member states’ lawyers say derivatives plan for new EU supervisor may exceed EU power
Bloomberg reports that a group of lawyers working for EU governments have questioned the legality of the European Commission’s draft rules allowing the European Securities and Markets Authority (ESMA) – the new pan-EU financial markets supervisor – to decide what types of over-the-counter derivatives should be traded through clearinghouses. The lawyers argue that, on the basis of EU case law dating from 1958, “a power to adopt decisions of general application cannot be conferred on an agency.”  

 

Meanwhile, during his hearing at the European Parliament, the newly appointed ESMA chairman Steven Maijoor said: “I think a regulator should have the powers to intervene in financial markets just like we have powers to intervene in equities markets. I think you should have these types of emergency measures in other parts of the market, including for the derivatives side." 
Bloomberg Reuters Open Europe research

 

EU Commissioner: Meeting 2020 renewable targets will cost member states €70bn rather than €35bn
Euractiv reports that EU Energy Commissioner Günther Oettinger warned yesterday that member states’ capital investments in renewable energies have to double from €35bn to €70bn in order for the EU to meet its 2020 energy targets.

 

Meanwhile, the FT reports that energy traders have warned the EU that it must reopen Europe’s carbon trading markets within days to avoid damaging the emissions system. Trading was suspended on 19 January after cyber-thieves stole around €30m in pollution permits.
FT Euractiv Euractiv 2

 

Eurozone leaders could call extraordinary summit on bail-out fund
The Irish Times reports that EU leaders may convene an extraordinary summit early in March to discuss changes to the eurozone bail-out fund. Yields on Spanish and Portuguese bonds continue to rise, ahead of the auctions that the two countries will hold this week. The FT reports that the European Central Bank suspended its emergency purchases of eurozone government bonds last week for the first time since October.

 

Jaroslaw Kaczynski, leader of Poland’s main opposition party, said yesterday that Poland should not adopt the euro “for at least 20 years”. Les Echos reports on a poll by the Prague-based STEM Institute revealing that only 22% of Czechs favour adopting the single currency. The FT notes that Ireland’s central bank has more than halved its growth forecast for 2011. The Irish Times reports that the date of the Irish general election is expected to be announced today, with PM Brian Cowen announcing he will not seek re-election.

 

Meanwhile, a new FT/Harris opinion poll shows that a German candidate for the ECB Presidency would be more popular across Europe than any other nationality. 
AFP Irish Independent WSJ WSJ 2 FT Deutschland El Pais Expansion WSJ: New Europe blog Les Echos FT Irish Times FT FT 2 Reuters BBC Guardian Irish Times

 

WSJ: Using the ECB to buy debt establishes a “moral hazard”
An editorial in the WSJ argues: “Using the ECB to buy debt, only to tender it to governments at a discount, would also establish a moral hazard that the central bank would soon come to regret. If the ECB can be made to take losses on Greek debt, why shouldn't Ireland, or perhaps Portugal, benefit from the same generosity? […] This latest proposal merely highlights how dangerous it was for the central bank to involve itself in manipulating the government-bond market in the first place. For Frankfurt, the lesson is to beware of Greeks bearing bonds.”

 

On his WSJ Real Time Brussels blog, Stephen Fidler notes that expanding the European Financial Stability Facility through mixed financing by AAA and lower-rated members “means non-prime borrowers such as Italy would have to raise real money to fund the bailout.”
WSJ: Real Time Brussels blog WSJ: editorial

 

Express delivers 373,000 signatures to Downing Street calling for EU withdrawal
With the help of Labour and Conservative backbench MPs, the Express yesterday delivered a petition with 373,000 signatories to Downing Street calling for the UK to withdraw from the EU. Open Europe’s Stephen Booth is quoted by the paper saying, “The UK needs to take a much more direct approach to fighting for radical reform in Europe, without which frustration with the EU will only grow.”

 

Political Commentator Patrick O’Flynn argues, “The Prime Minister, under pressure from his Lib Dem allies, has abandoned any idea of repatriating powers from Brussels and appears to be after a quiet life. But there is no chance of that.”
Express Express: O'Flynn Express: Leader

 

The EU’s response to the political crisis in Egypt continues to attract criticism from the European press. An article in today’s El País notes: “The EU popped into the Egyptian crisis yesterday, almost one week after the popular outbreak, to release a communiqué of predictable inanity […] Being how the EU always is, it pushed the principle of precaution. There was no reference to [Egyptian leader Hosni] Mubarak or his future.”
El Pais ABC Irish Times Irish Times: Beesley

 

The Parliament reports that an early split has emerged in the European Parliament's Conservative and Reformists (ECR) group over a successor to the Polish former leader Michal Kaminski. An early frontrunner is said to be Czech MEP Jan Zahradil but current ECR deputy leader and Conservative MEP Tim Kirkhope is also expected to throw his hat into the ring.
The Parliament

 

The Mail reports that British police officers had to chase down 4,100 people under the European Arrest Warrant last year. That is 20 times the number of extradition requests issued by British police to other member states.
Mail

 

Writing on Conservative Home, Bill Cash MP argues: “Stopping EU economic governance and repatriating EU regulations would transform the UK economic landscape. Both require unravelling existing EU legislation.”
Conservative Home: Cash Open Europe research

 

EUobserver notes that, according to documents published this month, travel and accommodation savings of €1.7m were made in September 2008 when MEPs were forced to relocate two plenary sessions to Brussels due to a collapsed ceiling in the European Parliament's Strasbourg chamber.  
EUobserver

 

EU foreign ministers have agreed to freeze the assets of ousted Tunisian President Zine al-Abidine Ben Ali and his wife. EUobserver reports that the ministers have also imposed a travel ban on Belarusian President Alexander Lukashenko and 157 of his associates.
BBC European Voice EUobserver IHT WSJ Times

 

New on the Open Europe blog

 

From the horse’s mouth: EU Constitution and the Lisbon Treaty are the same
Open Europe blog