Monday 1 July 2013

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New on the Open Europe Blog

Cameron tasks new new business body with sweeping away EU red tape 
Open Europe Blog

Finally a deal on the EU's long-term budget?
Open Europe Blog

Is the UK rebate still under threat?
Open Europe Blog


Daily Press Summary

CBI President: EU membership “overwhelmingly” in the UK's economic interests;
New poll: Business people back in/out referendum and new EU relationship

Sir Mike Rake, the new President of the CBI, has said that continued membership of the EU is “overwhelmingly” in the UK’s economic interests. His comments came on the eve of the launch of a new report by Business for New Europe. Speaking at today’s launch, Business Secretary Vince Cable will say, “Let's be clear: leaving the EU is neither a good nor a realistic economic option for this country.”

Meanwhile, a new poll of 1,000 business people for campaign group Business for Britain found that 48% supported holding an in/out EU referendum, with only 30% opposing the move. When asked whether the UK should be a member of the EU, 33% said ‘Yes’, while 42% said ‘No’ and 22% ‘Don’t know’. However, when asked how they would vote if the Government had negotiated a new relationship with the EU, including the significant return of powers to Westminster, 27% said they would vote to leave, 42% would vote to stay in the EU, while 25% said they didn’t know.
Sunday Telegraph Sunday Telegraph: Rake Independent on Sunday Huffington Post Business for Britain poll

Cameron urges Lib Dems “off the fence” on EU referendum;
Guardian: Labour considering backing early EU vote

David Cameron has urged his Liberal Democrat coalition colleagues to “get off the fence” over a referendum on Europe. James Wharton MP’s private member’s EU referendum bill will face its first Commons vote on Friday. Lib Dem MPs will not attend Parliament for the debate, Treasury Chief Secretary Danny Alexander said. Labour MPs are also expected to boycott the vote. However, Saturday’s Guardian reported that the Labour shadow cabinet has been considering a range of options that it might propose, including backing a “clear the air” referendum on Britain’s EU membership to be staged either before the 2015 General Election or six months after it. However, Shadow Financial Secretary Chris Leslie MP said this morning, “There’s no change of policy and there’s no prospect of a change of policy.”


Meanwhile, the Telegraph notes that official House of Commons analysis of the private member’s bill says that it “would not appear possible to hold the referendum” without the further agreement of both Houses of Parliament after the next election to set the date and terms of a future vote.
Open Europe blog Guardian Saturday’s Telegraph Express Mail Telegraph Telegraph 2 Independent BBC Andrew Marr transcript Saturday’s Guardian Times: Clark Guardian: Mills

Swedish junior coalition partner rules out joining the euro “in the foreseeable future”
At a seminar organised by the Swedish Christian Democrats – junior members of Sweden’s ruling coalition – during the country’s politics week on the island of Gotland, Open Europe’s Director Mats Persson argued that, due to changes in the eurozone and democratic challenges, the status quo, including for non-euro countries like Sweden, would not be an option and that it should embrace EU reform. Mats Odell, Sweden’s former Treasury Minister, said the country “should not even consider” joining the euro “in the foreseeable future” and unless fundamental changes take place. The seminar was covered by the Swedish media, including Expressen and Dagens Industri.
Expressen Dagens Industri

Der Spiegel reports on documents from former US contractor Edward Snowden alleging US intelligence spied on 38 embassies and missions, including EU missions and the French, Italian and Greek embassies. European Parliament President Martin Schulz has warned that the allegations could have a “severe impact” on EU-US relations.
FT FT 2 Guardian IHT Le Figaro Welt Welt 2 Times Mail Spiegel EUobserver Reuters Handeslblatt Der Standard Telegraph Irish Times European Voice Euractiv BBC

Russia steps up push for increased military presence in Cyprus
The Cyprus Mail reports that Russia has been stepping up its diplomatic effort to secure a military foothold in Cyprus, amid reports of the closure of its naval base in Syria. Cypriot Defence Minister Fotis Fotiou accepted that talks had been taking place but insisted there was “no discussion about a permanent base in Cyprus for Russia”. On Friday, rating agency Fitch downgraded Cyprus to ‘restricted default’ after the government announced it would be voluntarily swapping out €1bn worth of debt for bonds with longer maturities. The ECB also announced that, until the swap is finalised, Cypriot government bonds would not be eligible as collateral for its standard lending operations.
Cyprus Mail Cyprus Mail 2 Famagusta Gazette Famagusta Gazette 2 ECB press release La Tribune

Open Europe’s Director Mats Persson writes on his Telegraph blog, “Few issues relating to the UK and Europe are so hyped and symbolic as the [EU budget] rebate…[Yet, very few people] actually get how it works.” He notes that last week’s spat over the rebate was “overblown” given that it is “always protected by a veto”. Open Europe’s coverage of the deal on the 2014-2020 EU budget was cited by the Guardian’s live blog. 
Telegraph blogs: Persson FT Weekend Saturday's Guardian Saturday's Telegraph Saturday's ExpressGuardian live blog

Eurostat figures released this morning show that eurozone unemployment rose by 67,000 to hit a record-high 19.2 million (12.1%) in May 2013. 

Eurostat

Martin Winter, Süddeutsche Zeitung’s Brussels correspondent, writes that the eurozone crisis has forced Europeans to leave “the world of dreams” and enter “the realm of reality” by “shatter[ing] the central certainty whereby Europe is ever evolving towards a federal state.”
Süddeutsche: Winter

Croatia has today become the 28th EU member state. In an interview with FAZ, Croatian Central Bank Governor Boris Vujcic says, “We want to join the eurozone as quickly as possible.”
FAZ: Vujcic Welt City AM WSJ Times FAZ FAZ: Schwarz Süddeutsche: Hassel Irish times European VoiceEuractiv BBC FAZ FAZ: Schwarz Süddeutsche: Hassel

Mario Monti has threatened to pull out of Italy’s coalition government unless it speeds up the adoption of the “radical reforms” the country needs. If Monti were to withdraw his support, the government would still hold a solid majority in parliament.

Repubblica La Stampa

Officials from the EU/IMF/ECB Troika will resume negotiations with the Greek government today. Meanwhile, Greece’s Deputy Culture Minister Pantelis Kapsis has said legislation to restructure the country’s public broadcaster ERT will be ready by mid-July. 
Kathimerini Kathimerini 2 Kathimerini 3 Expansión

Under a deal struck by EU member states and MEPs on Friday, a 5% reduction of staff across the 50 EU institutions and agencies around Europe will be imposed gradually between 2013 and 2017. Remaining staff will face a two-year pay and pension freeze alongside an increase to the minimum working week from 37.5 to 40 hours, EUobserver reports. 
EUobserver Handelsblatt

A survey among German top executives, conducted by the Berlin Science Centre for Social Research, shows that 60% believe demographic change is Germany’s biggest long-term challenge, followed by the financial crisis on 48%. 

Welt

The Belgian government has adopted new measures to cut its deficit by a further €750m this year and almost €2.4bn next year in order to stick to its EU commitments.
La Libre Belgique

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