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EU splits re-emerge over Libya as France recognises Libyan opposition and calls for “targeted strikes” to be explored
Yesterday saw France break rank with other EU member states on the Libyan crisis. Following a meeting with French President Nicolas Sarkozy, Ali Essaoui – a representative of the Libyan rebel leadership, the National Transition Council (NTC) – told reporters that France had “recognised the NTC as the legitimate representative of the Libyan people.” The statement was later confirmed by Sarkozy’s office, reports AFP.
The move met with immediate criticism from other EU member states. EUobserver quotes German Foreign Minister Guido Westerwelle saying that the French position is "not the German position or the European position." Swedish Foreign Minister Carl Bildt tweeted, "Sweden recognises states - not regimes. And most other EU countries are the same. Somewhat unclear on what France does." EurActiv quotes UK Foreign Secretary William Hague saying, “We recognise states rather than groups within states.”
Reuters quotes a French official saying, "Extremely limited but targeted strikes in specific cases and not necessarily on airbases are being explored.”
Ahead of today’s emergency EU Council meeting, David Cameron and Nicolas Sarkozy have written a joint letter to European Council President Herman Van Rompuy, saying: “We support continued planning to be ready to provide support for all possible contingencies as the situation evolves…This could include a no-fly zone or other options against air attacks.” EU leaders are expected to agree to a joint declaration today demanding Libyan leader Col Gaddafi step down from power.
Meanwhile, NATO Defence Ministers yesterday agreed to reposition warships and airplanes currently deployed in the Mediterranean closer to the Libyan coast and to "further explore" the possibility of establishing a no-fly zone.
BBC: Hewitt EUobserver Elysee EUobserver 2 EUobserver 3 Le Monde Le Figaro FT FT 2 WSJ EurActiv European Voice Express Independent Mail El Pais Cameron and Sarkozy letter Express WSJ Express 2 FT: Stephens FT AFPTelegraph Nouvel Observateur
AFP reports that French Economy Minister Christine Lagarde said yesterday that credit rating agencies should not rate countries receiving bail-outs, such as Greece, and that her government had asked French EU Internal Market Commissioner Michel Barnier to “go much further” in regulating rating agencies in the future.
Le Monde AFP
EU leaders split over future of eurozone;
Spain hits out at Moody’s downgrade
Eurozone leaders meet in Brussels today to discuss a comprehensive package of new rules for the eurozone, due to be finalised in two weeks. It looks unlikely that anything concrete will be agreed during the summit with significant differences remaining between core and peripheral countries over the new rules for the eurozone, an expansion of the current bail-out fund and a renegotiation in the terms of current bail-out loans.
Handelsblatt reports that German Chancellor Angela Merkel has described the idea of the temporary or permanent bailout funds buying government bonds or being used to issue common debt as “unimaginable”. However, Merkel did hint at more flexibility over interest rates and repayment deadlines on existing bail-out loans, telling Bild that a Greek recovery “cannot be achieved in three years time”. Reuters notes that Germany could agree to increase the lending capacity of Europe's existing temporary rescue fund if lower-rated euro members contributed capital.
Spanish Prime Minister, José Luis Zapatero, has dismissed Moody's recent downgrading of Spanish debt as an insult, insisting that the Banco de España alone had the "information, credibility, and truthfulness" to judge the needs of Spanish lenders. Yesterday afternoon the Spanish central bank released its official figures on the cost of recapitalising Spanish banks, putting it at €15.15bn. This is in stark contrast to Moody’s estimation of €40bn - €50bn, which markets seem to have judged as more credible. Much of the difference is put down to the central bank’s definition of core capital.
In an interview with the FT, Austrian Finance Minister, Josef Pröll, urged Portugal to decide whether it will seek a bailout from the EU and IMF and warned it not “to be too late”. Meanwhile, the FT Deutschland reports that the European Commission and ECB President Jean-Claude Trichet have discovered a “finance gap” in Portugal’s budget planning.
Writing on Europe’s World website, Open Europe’s Raoul Ruparel argues that Portugal will “inevitably need a bailout, but…without a restructuring – in combination with a series of labour market and competitiveness reforms – Portugal will find itself back in the same position soon enough”.
FT EurActiv European Voice EUobserver IHT IHT 2 Le Figaro Guardian Telegraph El Pais El Pais 2 Expansion 2 Expansion Expansion 3 Expansion 4 Jornal de Negocios Independent FT Comment Irish Independent Irish Independent: Analysis Irish Independent: Oliver FT 2 WSJ EurActiv FT 3 FT 4 WSJ WSJ Brussels Beat WSJ Opinion Telegraph: Warner Guardian: Editorial Guardian: Pratley Economist: Leader Economist Economist: Charlemagne Irish Independent Bundestag press release Handelsblatt Reuters DTS FTD Reuters 2 Le Monde: Papandreou Europe’s World Open Europe Blog
Government says new EU members will face “stringent controls” on access to UK labour market
The Telegraph reports that Immigration Minister Damian Green has said new member states joining the EU will face the most “stringent controls” on access to the labour market – which would mean a bar on its citizens working in the UK for seven years. Mr Green told MPs that, “We will not repeat the mistakes of the past. It is in no one’s interest to see another unplanned influx from abroad. We need to protect the interests of British workers.”
Telegraph
The WSJ reports that yesterday 25 member states agreed on the proposals for an EU-wide patent, although Spain and Italy refused to support the project meaning it had to be passed through enhanced cooperation. Both Spain and Italy suggested they are considering legal action to challenge the decision.
WSJ European Voice EUobserver
The Economist looks at the EU’s “ambitious” climate policy and notes that the Commission will seek to make the EU’s existing energy efficiency targets binding in 2013. The article notes however that hitting the efficiency targets may direct further investment away from longer-term low carbon technologies.
Economist
In the Mail, Richard Kay reports that Lord Heseltine received £900,000 in EU farm subsidies between 2000 and 2009.
Mail
Handelsblatt reports that trade barriers with the EU's main trade partners are costing the EU €100bn in potential trade volumes, according to the European Commission.
Handelsblatt Eurasia Review
On his Coulisses de Bruxelles blog, French journalist Jean Quatremer notes: “One needs to ask whether the [European] Parliament’s work should not be re-organised anyhow, since the sessions have clearly become too many, compared to the real legislative activity.”
Coulisses de Bruxelles
The Economist’s Bagehot argues that the advent of regular eurozone summits excluding Britain is causing tensions in the UK coalition, with the Lib Dems concerned about lost influence but Cameron “entirely relaxed about this split”.
Economist: Bagehot Economist: Bagehot’s blog
EUobserver reports that yesterday the European Parliament said that the recent amendments to Hungary’s new media law do not go far enough and criticised the Commission for not pressing for further changes.
EUobserver
The European Parliament voted earlier this week to uphold the immunity of German MEP Elmar Brok, rejecting German authorities’ attempts to prosecute him for failing to report a €5,000 fee received for giving a speech. MEPs claimed that the attempted prosecution showed signs of persecution for political reasons because the sum was comparatively minor.
European Parliament press release Mail: Synon
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