Thursday, 3 February 2011

Open Europe

 

Europe

 

New Open Europe briefing: EU plans for Greek restructuring would only cut Greece’s total debt by 4.2%;

Germany angered by Commission’s plans to cap trade surplus in the eurozone 

Open Europe has published a new briefing arguing that, whereas Greece is unlikely to make it through this year without debt restructuring or additional outside help, the specific proposal for restructuring being discussed by EU leaders is not a sufficient solution to Greece’s debt problems or its lack of competitiveness. The briefing shows that EU plans for a Greek restructuring would only cut Greece’s debt by between 2.4% and 4.2%, whereas the country would need to have more than one-third of its debt written off to return to sustainability. The findings are cited by the WSJ and the Irish Daily Mail.

 

Handelsblatt and Der Spiegel report on the dispute between the European Commission and the German government over new plans to cap eurozone countries’ trade surpluses at 4% of GDP, which could curtail Germany’s exports. German Economy Minister Rainer Brüderle said that he considered the targets “absurd”, adding that “the proposal does not fit a modern competitive Europe.”

 

Meanwhile, France and Germany are due to present their plan for a ‘pact for competitiveness’ at tomorrow’s European Council summit. German Chancellor Angela Merkel will today meet Spanish Prime Minister José Luis Rodríguez Zapatero in Madrid to discuss the details of the pact. Le Figaro reports that French President Nicolas Sarkozy wants to include a ‘golden rule’ in the French Constitution – a sort of balanced budget rule inspired by Germany’s ‘debt brake’. La Croix notes that the French Socialist Party has called the idea "grotesque".

 

A separate article in the paper reports that yesterday, in a speech to the European Parliament, European Commission President José Manuel Barroso implicitly criticised the Franco-German plans, saying: “Establishing a system of reinforced economic governance for the EU, and in particular the euro area outside the Union framework raises important, and politically very sensitive, questions.”

 

Handelsblatt reports that, in spite of increasing inflation in the euro area, the ECB will probably not raise interest rates for the moment, for fear of further destabilising peripheral eurozone economies. Open Europe’s Pieter Cleppe is quoted in the Irish Daily Mail saying that if the ECB decided to raise interest rates in the near future, “it would kill any Irish recovery.”

 

EUobserver reports that credit rating agency Standard & Poor’s has downgraded Ireland’s sovereign rating by one notch. An Irish Independent/Millward Brown Lansdowne poll shows that only one in three people believe that their money is secure in an Irish bank. El País quotes Spanish Secretary of State for Economy and Industry José Manuel Campa saying that Spain will “never” need a bailout.

Open Europe briefing Open Europe press release Les Echos Handelsblatt Spiegel FT European Voice El País Le Monde Le Figaro Le Figaro 2 EurActiv La Croix AFP WSJ WSJ 2 FT El País 2 Handelsblatt WSJ Handelsblatt WSJ: Smith Guardian Telegraph FT EUobserver Irish Independent Irish Independent 2 EurActiv

 

UK Government ready to allow EU police forces to access British air passengers' personal information

The European Commission yesterday tabled a proposal that would see telephone numbers, addresses, credit card numbers, email and other details of British air travellers made available on demand for all of the EU’s police forces. The passenger name record (PNR) system being proposed will track all travellers on flights in or out of the EU and will also allow police officers across the EU access to the data on suspicion of a serious crime.

 

The Telegraph notes that the UK has already effectively “opted-in” to the plans, without Parliamentary approval, by joining France, Denmark and Sweden in lobbying the European Commission to ensure that PNR data is collected for all flights within the EU as well for EU flights to third countries.

 

The article notes that the Coalition Government has decided not to wield its veto over European policing and immigration measures by actively “opting-in” to two thirds of EU justice proposals since last June. Open Europe’s Director Mats Persson is quoted saying: “Too often, the UK’s supposed veto over joining EU crime and justice laws is only a little more than a charade and this government has continued to transfer powers over these areas to the EU at a worrying rate.”

Telegraph DW IHT Open Europe blog Open Europe: How the EU is watching you

 

Writing on Conservative Home, Peter Bone MP argues that “The Parliamentary Conservative party is moving from Euroscepticism towards supporting withdrawal from the EU.”

Conservative Home: Bone

 

UK “deeply concerned” by increasing level of fraud at EU level

MPs last night debated the EU budget and the European Court of Auditors’ report that noted that, in 2009, 90% of spending areas were “materially affected” by errors and irregularities. UK Treasury Minister Justine Greening said the Government is “deeply concerned that, according to the latest OLAF [the EU’s fraud watchdog] report, the level of fraud seems to be increasing at the European Union level.” She added that, “We have got to drive out waste at the EU level. It's what we are trying to do at the national level and it's unacceptable that we don't go through the same process at the EU level.”

 

Steve Baker MP cited Open Europe’s briefing, “Another 50 examples of EU waste”, in the Commons debate yesterday and highlights it again on Conservative Home. The briefing was also cited by Chris Heaton-Harris MP during the debate.

Hansard Open Europe press release Open Europe: 50 examples of EU waste Conservative Home

 

EU needs to invest €2.2trn to meet 2020 emissions targets, a new study claims

The Independent reports that, according to a study from Accenture and Barclays Capital, investments worth €2.2trn in changes to buildings, energy and transport infrastructure are needed across the EU in order to meet its 2020 carbon emissions reduction targets.  

 

Meanwhile, Euractiv reports that, at tomorrow’s summit, EU leaders are expected to agree to review the EU’s energy efficiency policy in 2013, instead of 2012. The article notes that member states have no intention of making their 20% energy savings targets for 2020 legally binding. AFP reports that the European Commission has announced that carbon trading markets will reopen tomorrow in five member states, including the UK.  

Independent EUobserver EurActiv AFP FT FAZ FAZ 2

 

Analysis by Bloomberg notes that “with the economy projected to grow 3% this year, Iceland’s decision to let the banks fail is looking smart – and may prove to be a model for others.”

Bloomberg

 

Dow Jones notes that the Association for Financial Markets in Europe, which represents participants in the wholesale financial markets, has strongly criticised the European Parliament’s Economic and Monetary Affairs Committee for endorsing a financial transaction tax, which would likely fall on currency transactions.

WSJ

 

Broadcasters cannot stop customers using cheaper foreign satellite TV equipment to watch Premier League football, an EU legal adviser at the European Court of Justice has said. The opinion, which comes ahead of an ECJ judgement, could have major implications for ESPN and Sky TV’s broadcast rights to show Premier League football in the UK.

BBC

 

A feature in Die Welt argues that the crisis in North Africa could be the coming of age of EU foreign policy and EU Foreign Minister Baroness Catherine Ashton, but notes that for a long time Ashton’s voice has remained unheard because “she does not like decisions, she hesitates too long, is much too cautious and afraid of conflict.”

Welt Express Express: Comment

 

Conservative MP Charlotte Leslie yesterday introduced a ten-minute rule bill which would pave the way for those working in NHS acute medical and surgical services to be exempted from the EU's Working Time Directive limiting them to 48-hour weeks.

Conservative Home Hansard Open Europe research

 

European Voice reports that the European Commission’s ethical committee ruled yesterday that the European Experience Company – the consultancy firm founded by former EU Industry Commissioner Günther Verheugen – will not be allowed to have any contact with Verheugen’s previous department until April 2012.

European Voice Les Echos

 

European Voice reports that the European Parliament’s Budgetary Control Committee has threatened to withhold its approval of the Council of Ministers’ 2009 budget if it refuses to provide more information over its spending.   

European Voice

 

In the Mail, Stephen Glover argues that David Cameron’s decision to give MPs a free vote on the European Court of Human Rights’ ruling on voting rights for prisoners may be a ‘critical moment’, which could have wider implications for the UK’s relationship with the EU.

Mail: Glover Telegraph: Raab

 

FT Deutschland reports that Germany is putting pressure on the European Commission to take account of silent capital in its implementation of Basel III rules on capital requirements. Germany had failed to win this concession during the Basel III negotiations.
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New on the Open Europe blog

 

EU plans for Greek restructuring are not a sufficient answer: Will Greece lightening strike twice?

Open Europe blog




Open Europe is an independent think tank campaigning for radical reform of the EU. For information on our research, events and other activities, please visit our website: openeurope.org.uk, follow us on twitter @OpenEurope or call us on +44 (0) 207 1972333 (London) and +32 (0) 2 5408625 (Brussels).