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New Open Europe briefing: How to use the referendum lock to get a grip on EU asylum, immigration, crime and policing laws
Open Europe has today published a new briefing calling for the Government's proposed EU referendum lock, contained in the European Union Bill, to be tightened up, requiring Ministers to seek the approval of Parliament before signing up to any EU laws in justice and home affairs. As it currently stands, the Government's proposed Bill is a missed opportunity to improve democratic control over the day-to-day transfer of crime, policing and immigration powers from the UK to the EU.
Justice and home affairs is the area in which the EU gains the most new powers under the Lisbon Treaty, with European judges being granted the final say over these laws. However, through a series of simple amendments to the Government's proposed Bill, outlined in Open Europe's paper, the Government could be required to seek Parliamentary approval before signing up to EU crime, policing and immigration laws. In some additional cases the Government would require the support of a referendum.
The Government's European Union Bill will have its second reading by MPs on Tuesday 7 December. The changes proposed by Open Europe would not require the renegotiation of treaties with other EU member states.
Open Europe press release Open Europe briefing
€12 million in EU funds spent on port in Gran Canaria laying idle
The BBC's File on 4 programme last night looked at the EU's structural funds, detailing how several millions from the funds have ended up with the Italian mafia. The programme also noted how €12mn in grants from the EU have been spent on a port on Gran Canaria, which now lays idle since there already is an industrial port close by and the project was never financially viable. Open Europe's Mats Persson appeared on the programme, arguing that "taxpayers have every right to be angry about this because the waste in the EU budget has been going on for a long time. It's quite simply unacceptable."
Meanwhile, the FT continues to publish the findings of its investigation into the flaws of the structural funds. An article in today's paper reports on the "Danube 2 bridge" project, which is intended to link the cities of Vidin (Bulgaria) and Calafat (Romania). The project is eight years behind schedule and its cost has risen by almost 50% to €300mn. The article notes that, even once it opens, the bridge will hardly attract significant commercial traffic until the road connecting Vidin to the Bulgarian capital Sofia is upgraded to European highway standards. However, Bulgaria will receive the EU funding for this road upgrade only after 2014, when the EU's new long-term budget kicks in.
A separate article notes that the EU's anti-fraud office OLAF lacks the means to ensure proper oversight of EU regional aid spending, since with a budget of about €60mn and fewer than 20 investigators the body has to "cherry pick" its cases. As a result, 329 out of OLAF's current 496 investigations have been in progress for longer than nine months, and 148 more than two years.
The Express reports that the UK will receive less than £160 per head from the EU's structural and cohesion funds - an amount lower than France and Germany, which are amongst the richest countries in Europe. The article quotes Open Europe's Stephen Booth saying: "It is striking the UK gets less than France and Germany in EU regional funding when these countries are similar to or stronger than Britain economically. This is yet another example of how the EU budget is a bad deal for Britain. The Government could save itself a lot of money if it ran its own regional policy."
OE 50 examples of EU waste FT FT 2 Express Euractiv Euractiv2 EUobserver
Irish Justice Minister: ECB tried to "bounce" Ireland into bailout;
Italian government admits to fears of contagion
The Irish Independent reports that Irish Justice Minister Dermot Ahern claimed yesterday that the European Central Bank used media leaks to put "quite incredible pressure" on the Irish government and "bounce" Dublin into accepting the EU-IMF €85bn bailout loan. However, a spokesman for Irish Prime Minister Brian Cowen said that he did not believe the Taoiseach shared Mr. Ahern's view.
The WSJ reports that Portugal's central bank warned yesterday that the country's banking system could soon become "unsustainable", with Portuguese banks relying excessively on cheap credit coming from the ECB. The FT reports that the leader of the Portuguese Social Democrats - Portugal's main opposition party - Pedro Passos Coelho is facing harsh criticism after admitting that the country may be forced to seek a bailout from the EU and the IMF. FT Deutschland notes that credit rating agency Standard & Poor's has threatened to downgrade Portugal's sovereign debt rating.
A separate article in the FT notes that yesterday the Italian government expressed worries over the possibility of a contagion. Cabinet undersecretary Gianni Letta is quoted saying that markets were trying to "spread the contagion from Ireland to more solid countries like Spain and Portugal, and maybe even Italy."
El País notes that - without mentioning Germany or France - Spain's Economy Minister Elena Salgado has insisted that the current instability on the bond markets is due to "the uncertainties of long-term investors with regard to the scope of the proposed collective action clauses" in the plans for a eurozone permanent crisis resolution mechanism, which would see investors taking haircuts in future defaults.
The FT also notes that ECB chief Jean-Claude Trichet has left open the possibility of extending the ECB's controversial government bond purchase programme, saying that a decision could be taken at tomorrow's meeting of the ECB Governing Council.
Meanwhile, the BBC reports that figures released yesterday by the European Commission's statistics office Eurostat show that the unemployment rate in the eurozone reached a twelve-year high 10.1% in October. A separate article in the WSJ notes that yesterday EU Commissioner for Economic and Monetary Affairs Olli Rehn admitted that "there was some variety in terms of rigour and application" of the EU's bank stress tests conducted last summer.
FT FT FT Guardian FT Deutschland FT IHT FT Deutschland Irish Independent Irish Independent Irish Independent Times Irish Times Irish Times Irish Times Irish Times BBC European Voice Le Monde Le Figaro FAZ WSJ 2 WSJ WSJ 4 WSJ 3 Spiegel Independent Mail FT IHT La Stampa El País Les Echos AFP
Eurozone comment round-up
On her BBC blog, Stephanie Flanders questions whether Germany should leave the eurozone and argues: "In a twin-track eurozone, the big creditor nation ultimately has to choose between propping up the debtors, or losing a big chunk of the money that it has lent. That sounds rather like a choice between Germany paying for the single currency crisis upfront - with a costly exit right now - or paying for it in instalments, in perpetuity."
In a comment piece in FT Deutschland, Wolfgang Münchau argues: "We are steering towards a mass bankruptcy of sovereign states in Europe. Greece, Ireland, and Portugal will at some point not be able to pay their debts. He suggests that "it would be much cheaper to declare Greece and Ireland insolvent now and use the capital to strengthen German banks." In the Telegraph, Damian Reece argues: "Italy and Spain will dislike the notion of being 'peripheral' nations but in terms of financing they are heading in that direction, joining Ireland, Portugal and Greece."
A leader in the FT looks at the possibility of a spread of contagion of eurozone debt crisis to Italy and argues: "The harsh reality is that Italy's fate appears increasingly tied to that of Spain. For if Spain, like Greece and Ireland, required an emergency eurozone rescue, Italy's portion of the bill would put its own finances under great strain. Italy, however blameless, would then itself be at risk. For the sake of the eurozone as a whole, the defence of Italy must start with the defence of Spain."
On his BBC blog, Robert Peston looks at Portugal's banking system and writes: "The ECB simply cannot, over the long term, finance a structural hole in public sector finances. To do so would ultimately destroy its credibility and undermine the value of the euro. Of course, the ECB can't have its money back tomorrow or even soon. Because if it asked for the cash, Portugal's banks would of course be bust - and so too would the Portuguese government."
Handelsblatt columnist Frank Wiebe writes about "Pigland", a representative imaginary state of the eurozone which is left out in the cold by EU neighbours and the IMF. Martin Wolf in the FT argues that "if [eurozone leaders] think they have replaced currency crises with credit crises, which do not even restore competitiveness and growth, they may see the union as a bad deal. Political glue could melt."
BBC: Peston BBC: Flanders Welt: Straubhaar Handelsblatt: Eichengreen Handelsblatt: Wiebe Irish Independent: McWilliams FT: Brussels blog Guardian Guardian: Treanor FT: Wolf Telegraph: Reece FT: Beattie Handelsblatt: Kort
On the first anniversary of the entry into force of the Lisbon Treaty, an opinion piece in Le Figaro notes: "After the 1 December 2009 and the long-awaited ratification [of the Lisbon Treaty] the reality has jostled the daydreams, to say the least. Catherine Ashton has not become the EU Foreign Minister. Herman Van Rompuy, President of the European Council without voting rights, has emerged as an honest Secretary-General. As regards Europe, cut to the quick, it is spending billions of euros and rivers of words to save its currency."
The Independent notes that the EU is pushing for intellectual property rights that would threaten the flow of cheap, life-saving medicines in its free trade talks with India.
European Voice reports that the European Commission has launched an anti-trust investigation into allegations that Google has abused its dominant position in the online search market.
The IHT reports that the European Commission yesterday threatened to crack down on countries that allow powerful former state telephone monopolies to charge steep fees that raise costs for consumers.
The FT notes that, ahead of the Cancun climate talks, the European Commission is seeking to make the business case for tougher climate change policies.
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