Open Europe : Daily Press Summary

[Politics.be]

Business leaders endorse Cameron’s EU policy: “We need a new relationship with the EU, backed by democratic mandate”; Miliband and Alexander: Labour “don’t want an In-Out referendum” but “have never said never” In a letter to the Times, 56 industry and City leaders have welcomed David Cameron’s promise of a negotiation followed by an “in-out” referendum within five years. It is “good for business and good for jobs in Britain”, they say. The signatories include Xavier Rolet, chief executive of the London Stock Exchange, Sir John Peace, chairman of Standard Chartered, Paul Walsh, chief executive of Diageo, and Lord Leach, Chairman of Open Europe. “We need a new relationship with the EU, backed by democratic mandate,” they argue.

CBI President Sir Roger Carr said, “The tone, the style and the emphasis of the speech, which was positive about European membership, was good news. But the referendum builds in a degree of uncertainty and business never welcomes uncertainty.”

During Prime Minister’s Questions, Labour leader Ed Miliband said, “We don’t want an In-Out referendum”. However, Douglas Alexander, the shadow Foreign Secretary, later said that, “We have never said never.”

Open Europe Chairman Lord Leach appeared on the BBC Radio 4 World Tonight programme, concluding that the speech was a “statesmanlike identification of the correct issues.” Asked if investors would stay away from the UK, he argued, “That argument is completely nonsense. We heard the same thing over the euro…‘nobody would come here’, but they came here in floods.” Open Europe Director Mats Persson appeared on Radio Sweden, RTE’s Drivetime programme and BBC News, reacting to Cameron’s speech, while Research Analyst Pawel Swidlicki appeared on Al Jazeera.

Open Europe’s reaction to and briefing on the speech are cited by the BBC, Guardian, Sky News, WSJ live blog, USA Today, La Region, and Euractiv. Open Europe’s blog rounding-up reactions from European politicians is cited by Felix Salmon’s Reuters blog. In City AM, Open Europe’s Christopher Howarth argues, “If others propose to change the way the EU operates, the UK has the ability and the right to put forward its vision.” Christopher also wrote for Conservative Home. Open Europe’s Pawel Swidlicki was interviewed by Newsweek Polska.
Times Times: Letters Guardian Telegraph Express City AM 2 City AM 3 FT 6 WSJ 3 Guardian 2 Guardian 3 Express 2 Mail Sun FT FT 2 WSJ IHT FT 3 IHT 2 Irish Independent Irish Times Telegraph Telegraph 2 Guardian: Leader Guardian: Kettle Independent: Farage Independent: Leader Times: Owen, Lea, Parris and others Times: Leader Spectator: Leader Times: Charter Sun: Leader Mail Mail: Heffer Mail: Fox FT: Mandelson City AM: Heath City AM: Lilico City AM: Browne Telegraph: Reece Telegraph: Oborne FT: Editorial BBC Radio 4: The World Tonight Radio Sweden RTE: Drivetime Guardian Sky News Public Service Europe BBC News BBC Live Blog EurActiv Reuters: Felix Salmon La Region El Confidencial City AM: Howarth Conservative Home: Howarth WSJ live blog Newsweek Polska

Merkel: “We are prepared to talk about British wishes”
Hollande: “It is not possible to negotiate Europe to make that referendum”
In reaction to David Cameron’s EU speech, German Chancellor Angela Merkel said that, “Europe always means that fair compromises have to be found…we are prepared to talk about British wishes. But you always have to keep in mind that other countries have different wishes too. Therefore we will talk intensively with the UK about their vision in detail.” German Foreign Minister Guido Westerwelle stated that, “We share the vision of a ‘better Europe’: We need a renewed commitment to the principle of subsidiarity. Not everything has to be regulated in Brussels and by Brussels…Differentiation continues to be necessary, but a policy of cherry picking must not be permitted.”

Dutch Prime Minister Mark Rutte called it a “strong speech” with good reform ideas. Dutch Foreign Minister Frans Timmermans stated that the Dutch government will investigate which “policy areas” should be transferred back to the national level, but he specified that “the Cabinet doesn’t want to negiotiate any ‘opt-outs’”. Czech Prime Minister Petr Necas said, “We share the view with the United Kingdom that Europe should be more flexible, more open, should strive more for confidence among its citizens.”

Meanwhile, French President François Hollande said during a visit to Grenoble that "The United Kingdom can decide perfectly well by a referendum to stay or leave the European Union, it's a decision for the leaders and the British people to make…but it is not possible to negotiate Europe to make that referendum.”
Official statement: Merkel Official statement: Westerwelle Handelsblatt Guardian Süddeutsche Telegraph Telegraph: Editorial Irish Times Irish Times 2 Euractiv European Voice Irish Times: Sutherland Le Figaro CityAM Irish Independent FT 4 FT 5 WSJ 2 Welt Welt 2 Welt 3 Bild Bild 2 ED

Foreign press reactions: Cameron makes the correct analysis
FAZ’s Klaus-Dieter Frankenberger argues that Cameron’s calls for EU reform cannot simply be dismissed and that “Cameron’s strategy may be risky, but his analysis is not wrong”. He also adds that “A solid framework is essential. Nonetheless this framework has to accommodate a range of traditions, mentalities and objectives. This means that without flexibility, it won’t work either”. Die Welt’s London correspondent Thomas Kielinger argues that in calling for EU reform, Cameron cannot be accused of blackmail. He adds that “It is not anti-European of Cameron to remind of the threat to the EU’s competitiveness the creeping democratic deficit and the lack of public confidence in the EU and its institutions.” Süddeutsche’s Martin Winter argues that "a blunt European debate – which is not conceivable without Britain – could lead to greater clarity.”

However, Der Spiegel Online’s London Correspondent Christoph Scheuermann argues that “Cameron's vision of Europe is a free trade area with access to the beaches of the Mediterranean.” Le Figaro’s Brussels correspondent Jean-Jacques Mével argues the speech “has solved nothing and European leaders continue to scratch their heads to understand what the UK really expect.” Writing in Rzeczpospolita, foreign editor Jerzy Haszczynski argues that David Cameron is correct to demand a real debate about the future of the EU.”
FAZ: Frankenberger Welt: Kielinger Welt: Bolzen & Kaiser Süddeutsche: Winter Rzeczpospolita: Haszczynski Spiegel Online: ScheuermannLe Figaro

Portugal returned to the long term debt markets yesterday for the first time since its bailout in spring 2011, through a syndicated tap (an increase in the size) of an existing bond by €2.5bn. Demand was strong, in particular from foreign investors. Separately, Eurostat reported that Portuguese public debt stood at 120.3% of GDP in September 2012.
FT

The Bank of Spain announced yesterday that Spanish GDP declined by 0.6% in the final quarter of 2012. GDP for 2012 as a whole is expected to dec line by 1.3%, below the original forecast of 1.5%.
FT WSJ

Eurostat yesterday confirmed that it views the Greek deficit data from 2009 onwards as credible, despite an investigation being launched in Greece into senior officials for distorting the figures in the run up to the original Greek bailout. Kathimerini cites an unnamed official from the European Commission’s task force in Greece, criticising the recent tax law passed in Greece.
Kathimerini Kathimerini 2

The FT reports that MEPs on their agriculture committee have voted 32 to 11 to extend sugar quotas preventing plans to liberalise the EU sugar market. Under pressure from the World Trade Organisation, the EU had agreed to end production quotas by 2015.
FT

The FT reports that Michel Barnier, EU Commissioner for the single market, is preparing to consult on revising the “one-share one-vote” rule for EU companies to give some “long term investments” extra voting rights and dividends according to drafts seen by the paper.
FT
New N24/Emnid poll: 59% of Germans believe UK exit would be damaging for the EU;
FAZ: Emotional rejection of Cameron’s speech proves that the he hit the bullseye with his warning on the development of the EU
Speaking at the Word Economic Forum in Davos, David Cameron argued that “It’s not just right for the UK. It’s necessary for Europe”. Cameron yesterday briefly met German Chancellor Angela Merkel, who said she was willing to discuss the UK’s calls for renegotiation, as well as a number of other EU leaders.

A new N24-Emnid poll has found that 49% of Germans believe the EU is heading in the wrong direction compared with 20% who see the EU on the right track. 59% of Germans said that they believe that a British exit would damage the EU, with 19% believing it would be beneficial for the EU. Handelsblatt cites Hans Heinrich Driftmann, the President of the Association of German Chambers of Industry and Commerce as saying that “For Germany such an exit would be painful. After all the country is among out top 5 trading partners”. FAZ’s Holger Steltzner argues that “The emotional rejection of David Cameron’s keynote Europe speech proves that the British Prime Minister hit the bullseye with his warning on the development of the EU. His partners in Berlin, Paris, Rome and Brussels did not respond a single word towards his criticism of the status of the EU based on five principles”.

Meanwhile, Halbe Zijlstra, parliamentary leader of the governing VVD party, has called on the Dutch government to draw up a list of competences which should be governed at the national rather than EU level, as stipulated in the Dutch coalition agreement. Zijlstra suggests that education and social support should be national. He added that he believes the EU has overstepped its bounds and "that's why we are so incredibly happy that Cameron is engaging this discussion".

AP cites Open Europe’s calculation that 48% of the UK's goods and services exports are to the EU. Open Europe’s Pawel Swidlicki was interviewed by Polskie Radio in a special feature on the UK’s relationship with the EU, while Open Europe’s Stephen Booth appeared on Channel 5 News talking about Cameron’s speech.
FT FT 2 WSJ BBC FAZ FAZ: Frankenberger Süddeutsche Irish Times N24 Handelsblatt Welt Bild FAZ FAZ: Steltzner FAZ: Frankenberger Süddeutsche Polskie Radio AP RTL AD Trouw

Top European economists propose “jointly agreed euro exit” of Northern countries
At a joint event hosted by Open Europe and New Direction in Brussels yesterday, five European economists unveiled their ‘solidarity manifesto’ for the eurozone – in which they argue for “a jointly agreed exit of the most competitive countries...It would ultimately mean a return to national currencies or to different currencies serving groups of homogeneous countries.” Speaking at the event, Hans-Olaf Henkel – former head of the Federation of German Industry (BDI) – argued that the eurozone crisis is the result of “too much integration, too quickly” and warned that “the worst has yet to come” if things do not change. Stefan Kawalec, CEO of Capital Strategy and a former Deputy Polish Finance Minister, stressed that the proposal in the manifesto does not amount to “abandoning” the countries on the euro periphery, because “a weaker euro would help restore growth.”

Looking at France’s situation, Professor Brigitte Granville argued that “internal devaluation is not an option, especially when long-term unemployment is already at 10%.” She suggested France would benefit from leaving the euro, even if that means “sacrificing” its alignment with Germany. Italian Professor Claudio Borghi Aquilini noted that Italy is the perfect example of the risks involved in establishing a ‘fiscal union’ – given that there are the Northern regions (which he compared to Germany) sending money to the Southern regions (Greece) via the central government in Rome (Brussels), with very little impact on reducing the competitiveness gap between the two areas. He added that Italy’s euro membership turned out to be “one of those weddings which is better not to celebrate.”
Open Europe events European Solidarity Manifesto

New Populus poll: Small majority in favour of UK leaving the EU;
A new Populus poll for today’s Times has found that if an in/out referendum were held today, 40% would vote to leave, 37% would vote to stay, with 23% undecided. 60% of those wanting to leave could be open to staying in under renegotiated terms. The poll also revealed that David Cameron emerged as the leader most trusted to renegotiate Britain’s EU membership on 36%, ahead of Ed Miliband on 23%.

The Economist’s leader argues that “Mr Cameron is taking an unnecessary risk with his country’s future. But his hand is stronger than some of his opponents maintain; and so, with a bit of luck, his gamble should pay off.”
Times Telegraph Independent Guardian Mail Irish Independent Economist: Leader Economist Economist 2 Economist 3 Economist: Bagehot Independent: Hamilton Guardian: Jenkins

In a comment piece on Fair Observer, Open Europe's Pieter Cleppe highlights the Belgian political situation, noting that proponents of a more integrated eurozone should have a look at the country to make up their mind.
Fair Observer: Cleppe

The ECB announced this morning that 278 banks have pledged early repayment of €137.2bn of the loans taken under the ECB’s long term lending operation (LTRO). The FT reports that there is a growing concern that, with only stronger banks likely to have repaid their loans, a two-tier banking system could be created in Europe.
FT

The European Commission announced yesterday that Britain should pay a fine of nearly €300,000 a day for failing to implement two EU directives on how gas and electricity markets operate in the EU. The deadline for member states to adopt the energy legislation was March 2011.
FT Mail Express Independent

New figures from the Spanish National Statistics Office (INE) show that Spain’s unemployment rate reached 26.02% at the end of 2012. Youth unemployment reached 55.13%, RTVE reports. Separately, Spanish Prime Minister Mariano Rajoy has said that the ‘declaration of sovereignty’ adopted by the Catalan parliament on Wednesday is “useless”.
Guardian RTVE RTVE 2 El Pa�*s FT WSJ FT 2

Rehn: Cypriot bailout could require a reduction in government and bank debt
EU Economics Commissioner Olli Rehn said yesterday that any bailout of Cyprus would need to involve a substantial reduction of debt in “both the sovereign and the banking sector”. Rehn also added that any countries which see their banks recapitalised by the eurozone bailout fund, the ESM, would need to have “skin in the game”, suggesting that the fund would not take the full burden of such bank bailouts as had been hoped by some countries.
WSJ Economist WSJ

Greek government strained by strikes
The Greek government has invoked a constitutional law in an attempt to end the eight day Athens Metro strike. However, the move provoked an angry response from other transit unions, which pledged to join the strike and also exposed rifts within the governing coalition as the Democratic Left criticising the lack of negotiation from both sides. Separately, the Greek current account posted a surplus in the third quarter of 2012, the first since 2005.
WSJ Kathimerini Kathimerini 2 Kathimerini 3

In a radio interview this morning, Italian caretaker Prime Minister Mario Monti said he was open to “cooperation” with Silvio Berlusconi’s PdL party after the elections, but only if Berlusconi gives up the leadership of the party. Meanwhile, a new Demos poll for La Repubblica puts the centre-left coalition led by Pier Luigi Bersani ahead on 38.1%, the centre-right coalition led by Berlusconi second on 25.8% and Monti’s centrist bloc third on 16.2%.
La Stampa Repubblica FT

The Irish Times reports that the EU/IMF/ECB troika is considering providing a line of “comfort funding” to ease Ireland’s transition out of its bailout programme.
Irish Times

The FT reports that EU legislation on derivatives trading could be delayed further with MEPs likely to support a motion to reject the current rules presented by the European Securities and Markets Authority (ESMA).
FT

Slovenia’s Prime Minister Janez Jansa yesterday refused to resign despite the resignation of Civic List party from his government coalition. Jansa said he would stay in office until there was a vote of no confidence, since Slovenia cannot afford early elections at this point in time.
EUobserver AP Bloomberg

FT reports that carbon prices on the European Union carbon emissions trading system fell to a record low of €2.81 a tonne after a vote in the European parliament against a proposal to support the struggling market.
FT


Bron: politics.be