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New on the Open Europe Blog EXCLUSIVE: Internal documents reveal countries' concerns with FTT proposal (or when ideology meets economic reality)  Open Europe Blog Is the UK winning the arguement on EU regulation? Open Europe Blog Sorry but UK defence is largely untouched by EU membership  Open Europe Blog
Daily Press Summary Open Europe publishes internal document showing major concerns about FTT amongst eleven participating EU countries; Fear that tax will increase borrowing costs for governments and businessOpen Europe has obtained and exclusively published on its blog an internal document showing that the eleven eurozone countries which agreed to introduce the Financial Transaction Tax (FTT) have major concerns that the levy proposed by the European Commission could drive up borrowing costs for both governments and businesses – a particular concern for Italy and other southern eurozone countries. Echoing misgivings from non-participating countries like the UK, the eleven countries also want more clarity about the scope of the FTT and how it is going to be collected in practice. The document was discussed at a meeting of civil servants from EU member states last week. The Times cites extensively from the document and quotes Open Europe Director Mats Persson as saying, “The memo shows that the UK, Sweden and others are absolutely right to raise concerns about the way the tax is drafted at the moment. In addition to creating a perverse situation which sees the tax hitting a firm in one country but being collected by a government in another, most worryingly it could increase borrowing costs for businesses and governments at a time when the eurozone absolutely cannot afford it.” Mats is also quoted in the FT as saying, “It’s telling that countries that are FTT-supporters in public have so many concerns about the proposal in private.” Open Europe’s Vincenzo Scarpetta is cited by Spanish business daily Expansión suggesting that Spain should “team up with other countries and reject the [Commission’s] proposal.” Open Europe’s blog post discussing the leaked document is cited by Spanish daily El Mundo. Open Europe blog FT Times El Mundo Expansión Telegraph City AM Michael Fallon: We have ended gold-plating of EU law in the UKIn a speech given to Open Europe yesterday, Michael Fallon MP, Minister of State for Business and Energy, argued that while the EU single market had the potential to be the “greatest platform for economic growth”, Europe was carrying “the burden of unnecessary costs” more heavily than its competitors. He argued that the Government had “ended” the gold-plating of EU laws in the UK. At the EU-level, he said the Government had the support of 12 other member states, including Germany, for a reduction to the regulatory burden but that achieving the required “cultural shift” was a difficult task. He said he was hopeful some of the Mediterranean countries would be won over, given the steps they are being forced to take to restructure their economies. A video summary of the event will be available on our website shortly. Open Europe events Gov.uk UK and Germany join forces in call for curbs on EU benefit tourismTheresa May, the Home Secretary, has convinced her counterparts in Germany, Austria and the Netherlands to campaign for tighter restrictions to migrants’ access to welfare handouts and other state-funded services, the Mail reports. A joint letter warns that the EU Free Movement Directive must not be “unconditional” and that major towns and cities “are under a considerable strain by certain immigrants from other member states”. Meanwhile, the Telegraph reports that up to 35,000 Romanian and Bulgarian immigrants will come to Britain next year when restrictions on the right to work are lifted, diplomats from the two countries have predicted. Open Europe blog Open Europe research Mail Telegraph Telegraph 2 Open Europe blog: 10 areas where Germany and UK can agree Enrico Letta, deputy leader of centre-left Democratic Party, will meet Italian President Giorgio Napolitano shortly and be given the mandate to form the new Italian government.  Il Sole 24 OreLa StampaRepubblicaCorriere della SeraFTFT: EmmottGuardian: Renz Open Europe Berlin Director Michael Wohlgemuth’s op-ed in Monday’s FAZ in which he argued that the EU needs more direct democracy to overcome its democratic deficit is cited by Swiss daily Le Temps.Le Temps Merkel: I prefer ‘balancing the budget’ rather than ‘austerity’ which sounds “like something truly evil"Following European Commission President Jose Manuel Barroso’s remarks that austerity policy "has reached its limits", German Foreign Minister Guido Westerwelle said yesterday that "one cannot buy growth with new debt… fiscal consolidation and growth are two sides of the same coin." German Chancellor Angela Merkel said she prefers the term “balancing the budget” rather than austerity which sounds “like something truly evil”. FAZ reports that a number of senior CDU and CSU politicians have voiced concerns over France’s lack of economic progress, with Gerda Hasselfeld, the leader of the CSU parliamentary group arguing that “from my point of view, the necessary reforms are not being as courageously tackled as they ought to be”. Meanwhile, FAZ’s Economic Editor Philip Plickert claims that the euro cannot function in the current heterogeneous currency area as it will lead to periodic crises and distortions. “An exit of weak countries thus has to be possible”. Welt Spiegel European Commission: Press Release Süddeutsche Süddeutsche 2 Süddeutsche: GammelinTelegraph Frankurter Rundschau FAZ FAZ: Plickert The Dutch Parliament yesterday approved the Cypriot bailout by a large majority, including members of the governing PvdA-VVD coalition as well as the opposition parties CDA and D66.Famagusta Gazette Famagusta Gazette 2 Famagusta Gazette 3 Cyprus Mail Cyprus Mail 2 Cyprus Mail 3Volkskrant The Portuguese government yesterday announced a series of measures aimed at boosting economic growth, including a cut to the corporate tax rate and increased lending by state owned bank CGD.FT WSJ FAZ The Greek government has agreed to cut 2,000 civil servant jobs by June this year. Separately, the government managed to achieve a primary budget surplus from January to March this year, although revenues still fell well short of their target.Kathimerini Kathimerini 2 Economic data released yesterday showed that the eurozone’s private sector contracted in April with both Germany and France contracting more than expected. The data may increase the prospect of an interest rate cut at next month’s ECB meeting.FT WSJ Spanish Prime Minister Mariano Rajoy told parliament this morning that the revised budget plan to be adopted by the Spanish government on Friday will not include new tax hikes, Cinco Díasreports. Cinco Días FT WSJ Austria and Switzerland have been left increasingly isolated under mounting international pressure to ease banking secrecy after Luxembourg dropped its opposition to the measures. Both countries are determined to cling onto their protections for now, but observers expect that they will ultimately have to make concessions to the EU.FT Swissinfo In an interview with the Irish Times following a meeting of EU environment ministers in Dublin, EU environment commissioner Janez Potocnik argues that the EU needs to set new interim CO2 emissions targets for 2030 and 2040 if it was to reach its goal of a 80% reduction by 2050.European Voice reports that the ministers failed to support the ‘backloading’ of carbon allowances within EU’s Emissions Trading System.Irish Times Irish Times European Voice Open Europe blog EUobserver reports that Green MEP Gerald Häfner, co-author of a report by the MEPs constitutional affairs committee calling for scrapping of Strasburg has told a seminar "If we vote for that the next step would be to enter into negotiations with the Council [of Ministers]. It will then end up in a European Convention. We will then negotiate on questions of compensation [for Strasbourg]".EUobserver