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David Cameron: Eurozone crisis “an opportunity to begin to refashion the EU so it better serves UK’s interests”
David Cameron last night used his speech at the Lord Mayor’s banquet to set out his vision of a reformed EU and raised the possibility of repatriating powers by saying that the eurozone crisis was ‘‘an opportunity, in Britain’s case, for powers to ebb back instead of flow away to the European Union”. He said that his vision of the EU was ”one with the flexibility of a network, not the rigidity of a bloc”, and that: ‘‘sceptics have a vital point; we should look sceptically at grand plans and utopian visions”. However, Cameron added that he believed that it was in Britain’s interests to remain in the EU because “if we weren’t in there helping write the rules they would be written without us…and we wouldn’t like the outcome”. PA reports that Deputy Prime Minister Nick Clegg, speaking alongside the Dutch Prime Minister Mark Rutte this morning, said of Cameron’s speech: "I don't think anyone is talking about unilateral repatriation of powers. It's not possible, and Europe doesn't work like that”.

In the FT, David Miliband argues that prioritising the repatriation of powers was “deluded and dangerous” and warns against the creation of a two-speed Europe, which was “something for 40 years [UK] governments have sought to prevent”. He goes on to argue in favour of reform, safeguarding the rights of non-euro members, an alliance with Germany and “making the Lisbon treaty work”.
Number 10: Cameron's Speech FT Times Telegraph Guardian CityAM Mail Express BBC BBC: Robinson Economist: Bagehot Independent EUobserver Conservative Home Guardian: WhiteFT: Miliband

Merkel urges greater political and economic integration to overcome the eurozone crisis
Speaking at the CDU’s party congress in Leipzig yesterday, German Chancellor Angela Merkel called for further political and economic integration in order to overcome the eurozone debt crisis. She argued that: “we are all part of European domestic politics…the task of our generation is to complete economic and monetary union, and build political union in Europe, step by step… That does not mean less Europe, it means more Europe…so that the euro has a future”.

Merkel defended the need for an expanded bailout fund, and called for Treaty changes that would allow fiscal discipline to be enforced: “We need a rescue fund to hold the euro together. We need to build a firewall if Greece is forced to reschedule its debts… but in parallel we need improving financial management in many European countries, who also need to do more to improve their competitiveness… We want to have automatic sanctions if countries violate the European Stability and Growth Pact and the opportunity for real intervention which would be the right to take those countries to the European Court of Justice, we need to amend these weaknesses in the Lisbon Treaty so that we have shared responsibility”. Merkel also reiterated her call for the introduction of a financial transaction tax, saying that if there was no agreement at the European level, it ought to be introduced within the eurozone nonetheless.

The Guardian notes that David Cameron, who in his own speech explicitly called for less European integration, is due to travel to Berlin at the end of this week both to urge Merkel to make the ECB more interventionist, and to set out what the UK will seek to safeguard and change in the event of treaty change being sought by Germany.

Der Spiegel notes that in order to facilitate closer EU integration, Merkel may have to amend Germany’s constitution, which acts as a brake on the transfer of powers to Brussels. However, such moves will face opposition from the CDU’s Bavarian sister party, the CSU, whose General Secretary Alexander Dobrindt has argued that the response to the crisis should be less, and not more Europe: "It would be grossly incorrect, especially now during the crisis, to weaken the stability of the nation states and delegate the struggle to resolve the crisis to the relatively unsuccessful eurocrats in Brussels."
CDU Party Congress: Merkel's Speech FT CityAM WSJ Mail EurActiv European Voice Irish Independent Irish Times Express FTD Spiegel Sueddeutsche Welt FAZ FAZ: Kohler

Questions raised over Greece’s commitment to implementing reforms
Antonis Samaras, leader of Greece’s New Democracy party, reiterated yesterday that he would not sign a letter pledging his party’s support for the latest summit conclusions, stating that he had already pledged his support “so anything more would only be humiliating”. New Greek Prime Minister Lucas Papademos responded by saying that the bailout package was “for our [Greece’s] own benefit” and that the letter was needed to reassure “taxpayers abroad” of the government’s commitment.

The WSJ reports that plans to have at least part of the enlarged EFSF, the eurozone’s temporary bailout fund, operational by December look unlikely to succeed, according to European officials. The officials also suggest that bringing forward the implementation of the ESM, the eurozone’s permanent bailout fund, from 2013 to 2012 would be impractical.

On Conservative Home Andrew Lilico argues that Germany is opposed to the idea of the ECB becoming lender of last resort for the eurozone since “ECB mass purchases of Italian and Spanish debt make the Germans liable in the event that Italy or Spain defaults, and in the meantime constitutes an inflation tax transferring real value from Germany to Italy and Spain.”
WSJ FT WSJ 2 FT 2 Express Telegraph Welt: Schiltz Irish Times: O'Toole FT: Rachman FT: Millstein Conservative Home: Lilico IHT: Ewing Dow Jones Kathimerini Handelsblatt Handelsblatt 2 Handelsblatt 3 Le Figaro Le Figaro Les Echos La Tribune Informação Online Jornal de Negocios Destak

Monti: I wouldn’t agree to lead a government due to leave office before 2013;
Italy’s borrowing costs top 7% again
Italy’s newly appointed Prime Minister Mario Monti is today expected to complete his round of talks with delegations of Italy’s political parties, employers’ associations and trade unions. In a short press conference yesterday, Monti insisted that “the new government’s envisaged temporal horizon goes from now until the end of this parliamentary term [in 2013]”, suggesting that he “wouldn’t agree” to lead a government due to leave office before that date. Monti also said that he would be open to appointing some politicians in his new cabinet, but several Italian papers report that the idea is facing opposition from both Silvio Berlusconi’s party and Partito Democratico, Italy’s main opposition party.

La Repubblica reports that Monti is expected to meet Italian President Giorgio Napolitano tonight to confirm whether he agrees to form the new government or not. If he agrees, the new cabinet could be sworn in tomorrow. Meanwhile, Italy’s borrowing costs continue to rise, with the interest rate on ten-year bonds just over 7% again this morning. Open Europe’s Vincenzo Scarpetta participated in a debate on France 24 yesterday, discussing how the presence of an unelected government of non-political experts in Italy risks jeopardising democratic legitimacy.
Corriere della Sera Corriere della Sera 2 Repubblica Repubblica 2 Repubblica 3 La Stampa La Stampa 2 La Stampa 3 Il Sole 24 Ore FT FT 2 WSJ FT 3 WSJ Heard on the Street TimesTimes: Macintyre Bild BBC IHT Le Figaro: Editorial

EU Internal Market Commissioner Michel Barnier is today expected to unveil new controversial plans to tighten the surveillance of credit rating agencies, including a proposal to give the EU’s financial markets watchdog ESMA the power to temporarily ban the ratings of troubled EU member states, particularly countries that are receiving a bailout. On Conservative Home, Anthony Browne argues that the Commission’s proposal “is simply shooting the messenger.”
EUobserver Le Monde La Tribune FT EurActiv Ceske Noviny CityAM Conservative Home: Browne

Die Presse reports that EU Internal Market Commissioner Michael Barnier has called for the faster recognition of qualifications for doctors, dentists and engineers by member states, an issue the European Parliament is due to vote on this Thursday.
Presse

Finland has dropped its veto against Bulgaria and Romania entering the Schengen area next year, leaving the Netherlands the only blocking country, EUobserver reports.
EUobserver

The Irish Independent reports that the family of murdered French film producer SophieToscandu Plantier are insisting that the European Arrest Warrant issued for Ian Bailey - a suspect in the case – must be executed even after it emerged that the Director of Public Prosecution’s office had provided Mr. Bailey’s defence team with new material hinting at alleged wrongdoing by Irish officers.
Irish Independent Irish Times

World

EUobserver reports that the EU has added 18 new people close to Syrian President Bashar al-Assad’s regime to its ‘black list’. Meanwhile, France has said the UN should consider sending peacekeepers to Syria.
EUobserver Welt