Thursday, 5 May 2011

Open Europe

Europe

Commission open to Schengen revision and renews calls for common asylum rules
In a communication published yesterday, the European Commission said it would consider the possibility of temporarily re-introducing internal border controls within the Schengen area in the event of massive and unexpected flows of migrants. The decision over whether to impose border checks will be decided by EU member states. "The Commission would have a role in this, absolutely,” EU Home Affairs Commissioner Cecilia Malmström told reporters. The Commission also insisted that the Common European Asylum System – which would involve greater burden sharing among EU member states and the harmonisation of criteria for the reception of asylum seekers – must be completed by 2012, and called for “increased solidarity” and “better sharing of responsibility” between EU member states on migration. Meanwhile, Sweden has announced that it will be the first EU country to take in 200 Libyan refugees, according to Sveriges Radio.

EU interior ministers will discuss the Commission’s proposals next week. The Telegraph notes that member states are unlikely to endorse the proposals because they would remove the decision to re-introduce border controls from national governments. Greek newspaper Kathimerini reports that Greece has threatened to veto the proposal. Bernard Valero, a spokesman for the French Foreign Ministry, is quoted by Le Figaro saying that “on several points [the Commission] responds to France’s concerns and to the proposals put forward by the French President [Nicolas Sarkozy] and [Italian Prime Minister] Silvio Berlusconi.” EurActiv notes that MEPs are split over the Commission’s proposals. The centre-right European People’s Party group welcomed the communication, while the Party of European Socialists strongly criticised the Commission for “caving in” to the demands of France and Italy.

Open Europe’s Director Mats Persson is quoted in the Mail arguing: “One of the EU’s most fundamental pillars - free movement of people - is now coming under massive strain…Open borders within the EU have generally benefitted Europe but politicians also need to appreciate what a hugely sensitive area this is.”
FT WSJ BBC Sveriges RadioEUobserver Independent Telegraph Guardian Euractiv France EurActiv European Voice Irish Times Europaportalen SVD IHT Straneuropa Focus Sueddeutsche Le Figaro Mail Kathimerini

Despite claims of leniency, Portugal still faces two years of recession following bailout
Portuguese paper Expresso yesterday released a leaked copy of the draft Memorandum of Understanding which outlines the conditions for the Portuguese bailout. Despite claims on Tuesday by Jose Socrates, caretaker Portuguese Prime Minister, that he had secured extremely favourable bailout terms, the leaked document highlights a large number of austerity conditions and forecasts that the Portuguese economy will shrink by between 1.5% - 2% in 2011 and 2012.

EurActiv reports that some EU sources have suggested that the amount of the bailout could increase to €90bn if the banking sector requires more support, however, this has been played down by the Portuguese government and the EU/IMF negotiators. The Portuguese main opposition party has also signalled its broad acceptance of the deal and suggested that it did take part in the negotiations.

Separately, reports have surfaced suggesting Portugal is holding up to €20bn in gold reserves, the largest in Europe. Norbert Barthle, German government budget speaker, has urged Portugal to sell some of these reserves to help fund the bailout, an option which as of yet has been rejected by the Portuguese government.
Expresso FT WSJ CityAM Guardian FAZ Focus Bild Evening Standard i Informação El Pais Público.pt FT 2 EurActiv Irish Independent Irish Times Independent Les Echos FT Alphaville Jornal de Notícias FT 3 FT 4 European Voice FT Editorial FT Lex Express Irish Independent 2 Irish independent 3 Irish Independent 4 Handelsblatt FT Alphaville

Ashton comes under fire from Belgian foreign minister
In an interview with Belgian daily Le Soir, Steven Vanackere, Belgium’s foreign minister, sharply criticised the EU’s High Representative for Foreign Affairs Baroness Catherine Ashton, claiming that she was characterised by "silence" on important foreign policy issues, little long-term strategy, poor management of her agenda, and compared her unfavourably to EU Commission president Herman Van Rompuy. Vanackere, who had been considered one of Ashton’s key allies, said: “The Belgian diplomatic service will continue to push Ashton and her [external action] service towards strong positions. Failing that, if there is silence and this silence is 'occupied' by France, Germany etc., Belgium will search for partners in other countries”.

Speaking to EUobserver, a spokesperson for Baroness Ashton defended her against the accusations, arguing that: "On the Arab Spring, it's very clear where we are going, in the short, medium and long term… Ashton has been at the forefront of placing sanctions against states such as Libya, and at the forefront of long-term post-Gaddafi political decision-making".
LeSoir HLN EUobserver Telegraph

European Voice reports that the publication of the Commission's assessment of the EU’s neighbourhood policy with suggestions for reform, expected next week has been delayed, partly due to a turf war between Štefan Füle, the Commissioner directly responsible for the ENP, and Catherine Ashton, the EU's Foreign Policy Chief.
European Voice

A new Policy Exchange report calls on the UK Government to renegotiate EU renewable energy targets for 2020, which will cost £66bn to implement. If renegotiated, the UK could scale back funding for offshore wind, saving £12.5bn, and could focus on less costly ways to cut carbon-dioxide emissions.
Policy Exchange report
Bloomberg

Strauss-Kahn: negotiations on Greek bailout started months prior to formal request
Dominique Strauss-Kahn, Head of the IMF, has suggested that the IMF began working on a Greek bailout plan “months before” the official announcement was made. Reuters reports that Irish Prime Minister Enda Kenny has said that a deal to reduce the interest rate which Ireland pays on its bailout loans has been agreed in principle.

Handelsblatt reports that a debate is raging within the FDP party, junior partner in the German governing coalition, over whether to support the current structure of the European permanent bailout fund. If the FDP does come out against the current plan, it could put significant strain on the coalition. Meanwhile, the ECB meets in Finland today with markets focused on whether there will be any hints of future rate rises with many expecting one as soon as June.
Vima Kathimerini Ta Nea Reuters Irish Times Irish Times 2 Handelsblatt Reuters 2 FT Le FigaroKathimerini 2 Ta Nea 2 El Pais: VIDAL-FOLCH Correio da Manhã: Dâmaso Correio da Manhã: Teixeira Cruz BBC: Flanders BBC: Hewitt Les Echos: Vidal FT: Sri-Kumar Guardian: Lapavitsas and Storer Telegraph: Warner FAZ: Steltzner Jornal de Negocios: Braz Teixeira

Austria remains cautious on Turkey’s prospects of EU membership
Despite a three-day official visit by Turkish President Abdullah Gul to Austria, Austrian Chancellor Werner Fayman said that even in the event of a positive outcome of negotiations between the EU and Turkey, Austria would definitely hold a referendum on the issue of Turkey joining the EU.
Open Europe Blog ORF DerStandard Kathimerini

Concerns raised over Italian dominance of key eurozone posts
FT Deutschland reports with the appointment of Mario Draghi as head of the European Central Bank imminent, concerns within the EU and Germany in particular have been raised about the amount of Italians holding key posts in the eurozone given that Italy has the second highest debt to GDP ratio in the currency bloc. CSU MEP Markus Feber claimed “it is not about the individuals but the current concentration [of Italians] is not justifiable”.
No Link

Split over financial reform plans
European Voice reports that with EU finance ministers due to meet in Brussels on the 17 May, two pieces of proposed legislation to regulate short-selling and derivatives trading remain “mired in disagreement”, while fresh complications are emerging over rules for the policing of member states' finances, jeopardising the chances of agreement before the summer.
European Voice

A report, published on Wednesday by Ernst and Young, suggests that EU money spent on research projects is not being monitored carefully enough, leading to the EU’s economic growth being hampered. EUobserver notes that a survey in the report showed that 89% respondents wanted stronger coordination of innovation policy at the EU level.
EUobserver

On Wednesday, the EU finalized a Voluntary Partnership Agreement (VPA) with Indonesia which will prevent European companies from buying illegally-sourced wood from the country’s forests. Similar agreement already exists with African countries and another one is planned to be signed next with Liberia, reports the BBC.
BBC EUobserver

Writing in the Express Patrick O’Flynn argues that today’s UK-wide referendum should have been about the UK membership in the European Union. Rather than “stirring up apathy”, this would have invigorated political debate and addressed the root causes of widespread cynicism of the political process.
Express: O’Flynn

European Voice reports that next week, MEP’s will vote on whether to increase transparency of who get’s access to the European Parliament, aimed at highlighting the role of lobbyists. Jerzy Buzek, President of the European Parliament, has suggested that lobbyists should sign in every time they meet with MEPs.
European Voice

FAZ notes that the planned nuclear stress tests will be fairly lenient, since they will only focus on the impact of natural disasters and not terror or cyber attacks. The reactor operators will also be testing themselves, while the European Commission will be merely collecting and collating the data.
TAZ FAZ Sueddeutsche

New on the Open Europe blog

Portugal’s cuts: You call that austerity?
Open Europe Blog

Is Turkey going cold on EU membership?
Open Europe Blog