Monday, 11 February 2013

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EU budget talks: The dust has settled - and they all won!
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What does the EU budget deal mean for the UK and Europe?
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Would the UK's contributions still increase under a new long-term EU budget?
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Daily Press Summary

Open Europe analysis: Cameron secures a 3.4% cut to the EU budget but spending priorities remain outdatedOn Friday afternoon, EU leaders finally reached an agreement on the EU’s long term budget which will see €960bn in commitments and €908bn in payments between 2014 and 2020. Following the deal, Open Europe published its analysis which noted that commitments were being cut by 3.4% and payments were being cut by 3.7% in real terms – the first time the budget has fallen. The report also argued that while the UK’s gross contribution will likely fall, its net contribution may still rise due to more money going to newer member states (to which the UK rebate does not apply). FAZ reports that Germany’s net contribution to the EU budget will increase by €1bn annually.
Open Europe’s Raoul Ruparel appeared on BBC News and BBC Radio Five Live discussing the deal, and was also cited by Reuters. The BBC, the Telegraph and the Guardian’s live blog produced a number of graphs based on Open Europe figures. French business daily La Tribune and Channel 4’s Gary Gibbon cited Open Europe’s blog post which featured an early draft of the budget deal. Open Europe Director Mats Persson was cited in Polish daily Rzeczpospolita and USA Today. Open Europe’s analysis was cited by EurActiv, German business daily Deutsche Wirtschafts Nachrichten, Polish daily Gazeta Wyborcza, theTelegraph’s live blog and the Express. Open Europe published a blog post rounding up reactions of EU leaders after the summit which was cited by the Economist’s Charlemange blog and Rzeczpospolita.
Open Europe Flash Analysis: EU budget deal FT FT 2 Sunday Times Guardian: Blankenburg ReutersRzeczpospolita USA Today EurActiv Gazeta Wyborcza DWN Telegraph: Live blog BBC BBC 2 Guardian: live blog Express Channel 4: Gary Gibbon's blog La Tribune Economist blogs: Charlemagne Rzeczpospolita 2FAZ FAZ 2 FAZ 3 Süddeutsche: Winter Spiegel: Volkery Welt: Eder Welt: Kielinger Süddeutsche Il Sole 24 Ore Il Mattino Les Echos: Barre FT FT 2 Sunday Times Guardian: Blankenburg Telegraph blogs: Persson Conservative Home: Howarth Rzeczpospolita blogs: Swidlicki
Süddeutsche: Budget deal shows EU leaders want to keep “the British at the centre of the EU”;
Les Echos: UK held the budget negotiations “hostage”
On his Telegraph blog, Mats Persson argues “the lesson for David Cameron has to be this: win enough support for your position among like-minded member states and Germany will back you”. Writing onConservative Home, Open Europe’s Christopher Howarth argues that the budget deal “was a good deal for Cameron [as] he was up against powerful veto wielding vested interests trying to defend every last indefensible cent of a fundamentally flawed budget”, although he warns that it would be “a mistake for Conservatives to overplay the deal”. On his Rzeczpospolita blog, Open Europe’s Pawel Swidlicki argues that the fact that the UK’s net payments are increasing as a result of the eastern enlargement shows that it remains engaged in and committed to the EU.
Süddeutsche’s Brussels correspondent Martin Winter points out that the reduction in the EU budget was down to combined British and German pressure, and the fact that other EU leaders accommodated Cameron’s demands show that the “European Union wants to keep the British at its centre”. Der Spiegel Online’s Carsten Volkery argues that the deal presents “a triumph of the budget hawks” although FAZ’s Brussels correspondent Hendrik Kafsack argues that the new EU budget “does not deserve the attribute ‘modern’” as most of it is still spend on agriculture and structural funds in the southern member states.
Die Welt’s Brussels correspondent Florian Eder argues that together Cameron and Merkel were able to enforce a reduced budget on the EU while Die Welt’s London correspondent Thomas Kielinger notes that “Angela Merkel is the trump card in the British hand“. An editorial in French business daily Les Echos calls the deal “unacceptable”, and notes, “Budget talks have been held hostage by a country, the United Kingdom, which is not sure it will still be part of the EU tomorrow.”
Open Europe Flash Analysis: EU budget deal FT FT 2 Sunday Times Guardian: Blankenburg ReutersRzeczpospolita USA Today EurActiv Gazeta Wyborcza DWN Telegraph: Live blog BBC BBC 2 Guardian: live blog Express Channel 4: Gary Gibbon's blog La Tribune Economist blogs: Charlemagne Rzeczpospolita 2FAZ FAZ 2 FAZ 3 Süddeutsche: Winter Spiegel: Volkery Welt: Eder Welt: Kielinger Süddeutsche Il Sole 24 Ore Il Mattino Les Echos: Barre FT FT 2 Sunday Times Guardian: Blankenburg Telegraph blogs: Persson Conservative Home: Howarth Rzeczpospolita blogs: Swidlicki
A feature piece in WirtschaftsWoche notes that Open Europe and its sister organisation Open Europe Berlin campaign for a reformed and more liberal Europe, and influence government policy. In a separate feature piece, Austrian magazine Format notes that “Open Europe is a small think tank that dominates the debate about the EU in the UK”.
WirtschaftsWoche WirtschaftsWoche 2
FT: Eurozone considering writing down depositors as part of Cypriot bailoutThe FT reports that, according to a confidential memorandum seen by the paper, eurozone finance ministers will today discuss the possibility of forcing losses on uninsured depositors in Cypriot banks and holders of Cypriot sovereign debt as part of the country’s bailout programme. The proposal would see the cost of the Cypriot bailout fall from around €17bn to €5.5bn, although the memorandum notes that the risks involved are “significant”. Other proposals to be discussed include: writing down junior bank debt holders or allowing Cypriot banks to sell shares directly to the eurozone’s bailout fund, the ESM. Separately, Reuters reports that ECB Executive Board member Jörg Asmussen has said he expects a bailout package for Cyprus to be in place by the end of March.
FT Kathimerini Kathimerini 2 FAZ
The Times reports that official UK Government legal advice, published this morning, confirms that a separate Scotland would have to apply for membership of every international organisation in the world, including the EU. Open Europe’s Christopher Howarth was cited byBloomberg discussing the Scottish referendum campaign.Open Europe blog Guardian Mail City AM Independent Times Bloomberg
Commission’s latest cyber-security proposals could increase security agencies’ access to personal dataThe Mail on Sunday reported that a new European Commission proposal on cyber-crime published last week could force internet companies and public bodies to disclose personal data to a network of specially created security agencies in each EU member state. Ross Anderson, professor of security engineering at Cambridge University and former adviser to the Government on cyber security, said: “The draft directive grants draconian powers…which would greatly exceed those granted under [existing EU law] and which now have been challenged successfully in the constitutional courts of several member states.”
Mail on Sunday
Centre-left ahead as opinion polls ban enters into force in Italy ahead of elections
A ban on electoral opinion polls has now come into effect in Italy. On Friday, a new ISPO poll put the centre-left coalition led by Pier Luigi Bersani on 37.2%, the centre-right coalition led by Silvio Berlusconi on 29.7%, comedian Beppe Grillo’s Five-Star Movement on 14.3% and Mario Monti’s centrist bloc on 12.9%. Meanwhile, Monti said in a TV interview yesterday that other European leaders fear Silvio Berlusconi’s return in power, because they “have had enough of an Italy which may, with its political frailty, inability to decide and lack of financial discipline, put itself, the eurozone and Europe at risk again.”
Corriere della Sera Repubblica EUobserver FT Editorial
Open Europe’s blog post on George Soros’ recent comments about the future of the euro and the EU were cited by ZeroHedge and Wall Street Italia.Zerohedge Wall Street Italia
Greek newspaper Imerisia reports on Open Europe's recent conference in Brussels entitled “Alternative solutions to the Eurozone crisis”.Imerisia
German ECB Board Member Jörg Asmussen has urged the French government to stick to its budget deficit targets, saying “it is extremely important that France fulfils its commitment this year to reduce the deficit under 3%”.Handelsblatt
The Sun reports that Owen Paterson, Secretary of State for the Environment, Food and Rural Affairs has said that under EU rules, the UK cannot ban imports of meat from other European countries unless there is a clear health risk.Sun Express Irish Times
The leader of Spain’s opposition Socialist Party, Alfredo Pérez Rubalcaba, has warned that the European project is “seriously ill” because of the austerity policies imposed by centre-right governments. He said, “In Spain, scepticism is growing towards a Europe which doesn’t love us, and only scolds us.” Separately, following the recent slush fund allegations, Spanish Prime Minister Mariano Rajoy has published his personal tax declarations since 2003 on his party’s website.EFE El Mundo WSJ FAZ Süddeutsche FAZ 2
The Times reports that the German Association of Cities is concerned that recent arrivals from Romania and Bulgaria have put some districts at risk of social breakdown.Times Sunday Express Observer Mail Open Europe research: free movement
The Mail suggests a combination of EU law and human rights rules is thought to be blocking the UK’s efforts to deport foreign nationals who took part in the riots of 2011.Mail
The FT reports that EU Justice Commissioner Viviane Reding is fighting US attempts to water down a proposed data privacy law, which would not only affect the European market but also international ones as the law aims to guarantee EU citizens the same privacy rights from wherever the service comes.FT
Saturday’s Times reported that former Conservative ministers Andrew Mitchell and Peter Lilley have emerged as frontrunners to be the UK’s next European Commissioner in 2014.Saturday’s Times
German campaign group Mehr Demokratie has announced that a European Citizen's Initiative has managed to obtain 1 million signatures for the first time. It concerns an initiative against water privatisation.EC press release Die Presse

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