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Britain “highly likely” to veto EU carbon tax plans
The European Commission has today released its proposal for an EU carbon tax. The proposal sets a minimum level for taxation on transport and heating fuels across the EU, based on the fuels emissions and energy content. There has been significant opposition to the plan for many years and today’s proposal is watered down, compared to earlier draft versions, as it includes more exemptions while full implementation is now postponed until 2023. Many countries still worry that the proposal could form the basis of future increases in minimum tax rates. Euractiv reports that, according to an unnamed UK diplomat, the Government is “highly likely” to veto the proposal, as it’s subject to unanimity.
EC press release EC press release 2 EurActiv
ESM may cost German taxpayers more than expected;
Deputy Director of Expresso: Portugal now an EU/IMF “protectorate”
Spiegel notes that a confidential report by the German Court of Auditors suggests that the EU’s permanent bailout fund (ESM) could cost Germany more than expected, to maintain the triple-A status of the fund. The group suggests that any increase its capital contributions to the ESM should require approval from the Bundestag rather than being automatic, as is currently planned.
After only a day of negotiations, divisions are already beginning to emerge between both Portugal and the EU/IMF and between the domestic political parties, over the privatisation of Portugal’s largest banks and tax increases. Deputy Director of Portuguese paper Expresso, Nicolau Santos, warns that “Portugal is now a protectorate of the EU and the IMF”.
Following a meeting with Spanish PM Jose Zapatero, Chinese PM Wen Jiabao pledged that China would continue to purchase Spanish government bonds. Reuters reports that China holds an estimated 12% of foreign owned Spanish sovereign debt. Separately, the Irish Independent reports that AIB is considering a ‘debt forgiveness’ scheme, which would allow some struggling homeowners to write off part of their mortgage debt.
Expresso: Santos Spiegel FT WSJ IHT EUobserver EUobserver 2 FT 2 FT 3 Reuters El Pais El Pais 2 La Vanguardia Público Diario Económico Le Figaro WSJ 2 Spiegel: Online Poll Reuters 2 Irish Independent WSJ: Michas WSJ: Portes FT: Bini Smaghi BBC: Hewitt Mail: Alexander Irish Independent: McWilliams Times: Kaletsky
Figures from the Office for National Statistics reveal that the EU has been surpassed as the destination for the majority of British exports for the first time since official records began in 1998. Exports of goods to non-EU destinations including the US, Middle East and China, jumped 7.6%, while sales to EU countries fell by 4.4% reports the Times.
ECHR rejects UK appeal on prisoners’ votes and gives Government six months to comply
The Telegraph reports that the European Court of Human Rights yesterday rejected the UK’s final appeal against the human rights ruling requiring the UK to give prisoners the vote, despite MPs voting to uphold the ban on prisoners’ votes. The Strasbourg Court ruled that the UK must now draw up proposals within six months to end the blanket ban or face millions of pounds worth of compensation claims.
Guardian Independent Times Mail Express Telegraph
Commenting on the Commission’s latest review of the European Arrest Warrant, UKIP MEP Gerard Batten argues: “Out of 54,689 arrest warrants issued so far the commission can only quote a handful against serious criminal or terrorist suspects. These people could have been extradited under national systems that protected the entire population who are now unprotected from unjust extradition”.
EU biofuels targets are “unethical”, says report
The BBC reports that a new study by the Nuffield Council on Bioethics branded the EU’s biofuel targets as “unethical” because of the damages they cause to the environment and to people in the areas where the crops used to produce biofuels are grown, in addition todriving up food prices.
EU offers Tunisia €140m to take back migrants
European Commission President Jose Manuel Barroso yesterday promised Tunisia €140m extra in EU aid if the new government takes "strong and clear action" to prevent citizens from migrating to Europe, and if it agreed to take back those who have already made it to Italy, reports EUobserver. At a meeting yesterday, EU interior ministers agreed to the voluntary resettlement within the EU of some of the 1,000 people who have arrived in Malta from Africa, but pledged no help for Italy. The ministers also agreed that the EU's border control agency, Frontex, needs more funding.
In an interview with Deutschlandfunk, Austrian MEP Hannes Swoboda says “It is an absolute failure of the EU that we are not prepared, and we must help Italy…there must be a common refugee policy to keep Schengen upright”. Meanwhile, Die Welt reports that the discussions are splitting the German coalition government.
Deutschlandfunk: Swoboda Welt BBC Coulisses de Bruxelles EUobserver EurActiv France Repubblica
Commissioner plans EU-wide contract law to rival national law
The FT reports that UK law firms and the Law Society have attacked EU plans to draw up a new ‘optional’ system of EU-wide contract law. Viviane Reding, EU Justice Commissioner, has made clear her interest in introducing an optional “28th regime”, which could be used as an alternative to national contract systems. “No proper survey has been made, no impact assessment has been undertaken. Nobody seems to have assessed the costs of having a second system of law in every country,” said Mark Hanson, partner at Ashurst and representative for the City of London Law Society. Reding has said that she plans “a first initiative” on European contract law in the second half of 2011, which officials say could take the form of legislation, although this has not been finally decided.
FT
EU drafts plan for ‘EUfor Libya’ mission
EU foreign ministers yesterday drafted a plan for intervention in Libya, as part of its ‘Eufor Libya’ mission. The UN has so far declined the EU’s offer to organise a military mission aimed at easing humanitarian aid efforts. Meanwhile, the EU agreed yesterday to extend sanctions to 26 energy companies in Libya.
In an interview with EurActiv, EU Enlargement Commissioner Štefan Füle said that the EU should offer its southern neighbours the opportunity to participate in its single market and join the European Economic Area, which currently includes Iceland, Liechtenstein and Norway.
EUobserver Independent Times Welt EurActiv ABC Europa Press LUSA Irish Times Deutsche Welle HLN EurActiv EurActiv: Füle
Les Echos reports that EU Internal Market Commissioner Michel Barnier is due to unveil today the final version of the “Single Market Act”, a package of twelve legislative proposals aimed at improving the EU’s single market. The Commission aims to have the proposed measures in place by the end of 2012.
Les Echos Les Echos: Barnier WSJ
The Parliament magazine reports that yesterday 500 protesters, mainly children of senior officials working for the various EU institutions, held a demonstration outside the Commission’s headquarters in Brussels against possible cuts to the budget of the European schools - free schools reserved for the children of EU civil servants.
Parliament
FAZ reports that a group of 30 NGOs have established an umbrella organisation called ‘Finance Watch’ based in Brussels to counter the influence of the financial industry’s lobbying activities on EU legislation.
FAZ
Writing on Conservative Home, Charles Tannock MEP argues that London’s art market will suffer unless a further exemption from the EU Directive on artists’ resale rights can be secured.
Conservative Home: Tannock
City AM reports the EU Commission is considering introducing new rules on pension schemes in order to standardise them across member states. City law firm Towers Watson have warned the new rules could put the future of some UK companies under threat because they may be forced to divert cash into their pension funds in order to clear deficits faster.
City AM
The BBC reports that a new system of fisheries control has been introduced to prevent overfishing, with common inspection and reporting rules now in place, as part of a wider review of the EU’s Common Fisheries Policy.
BBC EUobserver
EUobserver reports that MEPs have voted to allow national governments to ban GMO cultivation on environmental grounds, going beyond the Commission’s proposals.
EUobserver
On his Telegraph blog, Daniel Hannan notes that in 2011 the EU will spend more than €1bn to fund its growing number of technical institutions.
Telegraph blogs: Hannan Open Europe research
The FT reports that the EU has relaxed some of its restrictions on members of the Burmese government, despite widespread condemnation of last year’s elections.
FT
New on the Open Europe Blog
Italy is testing the limits of EU integration
Open Europe Blog
EU wise guys always centralise: Lamfalussy joins the debate on EU financial supervision
Open Europe blog
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