Open Europe Press summary

[Politics.be]

UK Government is “assessing” whether to take part in “pact for the euro”Last night the House of Lords voted to allow the UK Government to agree the proposed EU treaty change to create a permanent bailout mechanism for the eurozone post-2013. MPs will vote on the treaty change tomorrow. When asked about the details of the so-called “competitiveness pact” or “pact for the euro”, Foreign Office Minister Lord Howell replied on behalf of the Government, “I am then advised that non-eurozone countries - such as us, among others - have been invited to join the pact and that we are assessing whether we should do so.” Non-eurozone countries, such as the UK, must decide at this week’s summit whether or not they will take part in the wide ranging proposals for economic governance – which include tax coordination, labour market reforms and EU supervision of national budgets.

EUobserver reports that Denmark will join the pact despite not being part of the eurozone. However, in order to gain enough domestic support, the Danish government had to offer guarantees that the pact would not alter the retirement age or collective bargaining within Denmark.
Hansard EUobserver


Eurozone leaders agree on permanent bailout fund but ‘grand bargain’ still in doubt
Eurozone finance ministers finally agreed a deal on the size and nature of the permanent bailout fund, which will come into force in 2013. The fund will be able to lend €500bn but in order to do so it requires guarantees equal to €620bn. Eurozone countries will also have to commit €80bn in cash, giving a total of €700bn in capital commitments. Germany will contribute 27.1% of the fund's capital, France 20.4%, Italy 17.9% and Spain 11.9%. That means Germany will be responsible for €190bn of the total. The extra guarantees and large amounts of paid in capital allow the fund to maintain its lending capacity and its triple-A rating.


The FT reports that there are still many issues which need to be resolved by the end of this week for the eurozone leaders to achieve their aim of a ‘grand bargain’ to save the euro. There is still no agreement on how to increase the lending capacity of the current bailout fund, with Finland providing a stumbling block to recent attempts at formulating a plan.


Opposition parties in Portugal have called the new austerity cuts “socially unfair”. Portuguese Finance Minister, Fernando Teixeira dos Santos, confirmed that by creating a political crisis the opposition is “effectively helping to push the country into the arms of external aid."


The Irish Independent reports that Bank of America Merrill Lynch, the largest American bank, suggests that Ireland could increase its corporation tax a “moderate” amount without hurting multinational investment. Separately, Jean-Claude Trichet, President of the ECB, signalled yesterday that the ECB is likely to increase interest rates as soon as next month.
FT European Voice WSJ EurActiv Irish Independent IHT Times Irish Times Le Monde Le Monde 2 Le Figaro FT 2 WSJ 2 European Voice 2 IHT 2 El Pais FT Alphaville FT: Soros Irish Independent 2 Irish Independent 3 Irish Independent 4 Irish Independent: Molloy Le Monde: Baverez Irish Times Irish Times 2 Irish Times: Beesley Expansion Expansion 2 FAZ Welt FT Deutschland FT Deutschland 2


Second MEP resigns as result of bribery scandal
Slovenian MEP and former Foreign Minister, Zoran Thaler, one of the three MEPs involved in the bribery scandal disclosed by the Sunday Times, resigned yesterday saying that he wanted to “enable an investigation of all facts and circumstances of this attempt to compromise my name.” Adrian Severin, the Romanian MEP involved, denied any wrongdoing on Monday. "I am innocent and profoundly disturbed by this scandal. My opinion is that I am a troublesome person, an influential Romanian politician who disturbs many," Severin said in a press conference, without elaborating.
BBC Times Balkan Insight


EU split over role of NATO in Libyan campaign and limits of UN resolution
It is widely reported that splits are emerging within the EU over the role of NATO in the no-fly zone over Libya. The UK and Italy said NATO should lead operations, a move supported by the US, but France, Germany, the Arab League and Turkey do not want NATO to play a central role.


Meanwhile, at a meeting of EU foreign ministers yesterday, EU leaders disagreed on the precise meaning of the UN resolution. Spain and Sweden said it allows the targeting of tanks as well as air defences. German Foreign Minister Guido Westerwelle is quoted in EUobserver saying, “German soldiers will not be sent to Libya because we think this war carries real risks not only for Libya itself but for the region as a whole…when we listen closely to what the Arab League yesterday said, unfortunately we see that we have reasons for our concern".
Guardian Guardian 2 Guardian 3 Times Expansion El Pais: Chevenement FT FT 2 WSJ EurActiv EUobserver Corriere della Sera EUobserver 2 Independent BBC: Hewitt BBC: Today


EUobserver reports that the EU Council is planning to cut its €540m internal budget by 4.4% in 2012, a move which could cause potential embarrassment for the European Parliament, which has already increased allowances for MEPs.
EUobserver


EU ministers fall short of agreement on details of nuclear “stress tests”
EU energy ministers agreed yesterday that safety checks on Europe’s 143 nuclear power plants should be carried out before the end of the year, but the tests will remain voluntary. Meanwhile, EUobserver reports that, at yesterday’s meeting, French Energy Minister Eric Besson criticised EU Energy Commissioner Günther Oettinger for his previous declarations about the nuclear emergency in Japan. "I regret some statements which caused shock in France. There's absolutely no need to feed the neurosis," Besson told reporters after the meeting.
WSJ EurActiv IHT BBC EUobserver FT Deutschland Stern


ActionAid and other campaign groups are claiming that, due to deforestation, emissions associated with the EU’s biofuel targets could be up to six times higher than fossil fuel equivalents, and will also create huge social upheaval with communities losing their land, homes and jobs.
EurActiv Irish Independent



German MEP Markus Pieper, charged with drafting the European Parliament's opinion on the future of EU regional policy, has argued that regions in relatively rich countries should continue to receive funding for regional development, because this is how the EU “shows its face” to people in those regions.
EurActiv

German Greens gain in election on back of nuclear fears

Germany’s Green party doubled its vote in Saxony-Anhalt’s regional elections and won seats in the state assembly for the first time since 1998, on the back of growing disquiet over the safety of nuclear energy. Chancellor Angela Merkel’s CDU party retained its dominant position in the state, despite losing 3% of its vote share from the 2006 election.
Telegraph Spiegel Welt




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