Open Europe : Daily Press Summary

[Politics.be]

New Open Europe briefing: Top 100 EU regulations cost the UK economy £27.4bn a year – and costs outweigh benefits in a quarter of cases Ahead of this week’s EU summit, where EU leaders will discuss ways to cut red tape, Open Europe has published a list of the Top 100 most costly EU regulations. Using data from the UK Government’s impact assessments of these rules, Open Europe estimates that these 100 EU laws cost the UK economy £27.4bn a year. This is more than what the UK Treasury expects to raise in revenue from Council Tax this year (£27bn).

Open Europe’s list identifies at least 24 EU regulations where the UK Government’s own impact assessment finds that the estimated costs outweigh the estimated benefits – meaning that they impose a net cost on the UK economy. These include, among others, EU rules on agency workers and the energy performance of buildings. Though the impact assessments also claim that the 100 EU regulations deliver a combined net benefit of nearly £30bn a year, in fact, in some cases, these benefits are vastly over-stated. In the case of the EU’s flagship climate change package, for example, Open Europe estimates that 95% of the envisaged benefits have failed to materialise.

The briefing is cited by today’s FT, Times, Telegraph, Sun, Mail and Express. Open Europe’s Vincenzo Scarpetta is quoted as saying, “According to the UK Government’s own figures, we know that nearly a quarter of the EU’s most costly regulations impose a net cost on the UK economy”. Open Europe recommends giving national parliaments the power to block unwanted EU proposals and repeal existing EU laws that impose a net cost on the economy or do not, in practice, deliver the benefits promised. Open Europe also recommends adopting a ‘one in, one out’ system for EU regulations, similar to the one being used by the UK domestically.
Open Europe press release Open Europe briefing FT Telegraph Times Mail Express

Open Europe Chairman Lord Leach: There should be one European market and different political systems relating to that market
Friday’s Evening Standard featured an interview with Open Europe Chairman Lord Leach on the future of the EU, and Britain’s relationship with it. “I think there should be one market and different political systems relating to that market,” he said. “That would mean the role of the European Court of Justice would be greatly restricted and a lot of things would come back to the nation states like subsidies and employment law. The idea of ever-closer union has to go and then you have a much more efficient Europe and one that Britain would be at ease with.” He added that, “To say it would be a disaster to pull out of the EU is gravely overstated,” but noted that, outside the EU, the UK would be less able to block protectionist measures aimed at the City of London, for example. Without the UK, “The Nordics and Dutch would struggle to keep open free markets in financial services.”
Friday’s Evening Standard

Spiegel: Merkel demands EU Treaty change to give Commission control over national budgets
Der Spiegel reports that, in a meeting with EU Council President Herman Van Rompuy last week, German Chancellor Angela Merkel set out her proposals for giving the EU greater powers over eurozone members’ national budgets, a move which would require EU Treaty change. Merkel will reportedly insist on legally enforceable contracts between the Commission and individual member states, setting out their obligations for maintaining budgetary discipline and improved competitiveness. In return, Germany could agree to a eurozone budget which would amount to tens of billions. Finally, the President of the Eurogroup would become a “Euro Finance Minister”.

Spiegel Online cites Axel Schäfer, deputy-chair of the SPD’s parliamentary group as saying that “the SPD will not support any settlements if Merkel conducts parallel negotiations with Britain’s David Cameron over the transfer of EU competences back to member states.” Schäfer also warns that the SPD will not support an EU Treaty changes that trigger referenda in individual member states.
Open Europe research: What to expect after the German elections Spiegel Spiegel 2 DWN Irish Times

Draghi warns that bank bail-in rules could “destroy” confidence in European banks
Bloomberg reports that, in a leaked letter sent to EU Competition Commissioner Joaquin Almunia, ECB President Mario Draghi warned that the new state aid rules – which would see significant losses for bank bondholders before any bailout – could “destroy the very confidence” in European banks which the EU is working to restore. Draghi called for “precautionary recapitalisations” which would dilute shareholders but not hit bondholders and insisted that it is “essential that member states commit credible public backstops” for banks.
Bloomberg Bloomberg 2 FT

European Commission study on benefits tourism criticised
The Sunday Telegraph reported that the authors of an official European Commission report used to suggest that “benefits tourism” is largely a myth have received more than £70m in consultancy fees from the EU. The British, German, Dutch and Austrian governments are all demanding a tightening of rules on EU migrants’ access to welfare. Open Europe Research Director Stephen Booth was quoted as saying, “The EU’s rules on access to welfare are no longer fit for purpose. The free movement of workers is beneficial but individual countries’ welfare models differ substantially and therefore EU migrants’ rights to access benefits cannot be determined by a one-size-fits-all system.”
Open Europe research Sunday Telegraph Sunday Times

Canada and the EU have in principle agreed a free trade agreement which the EU hopes will increase bilateral trade in goods and services by a fifth to €25.7bn a year. Meanwhile, EU ministers have agreed to start trade talks with China. The Mayor of London Boris Johnson, speaking in Hong Kong, argued that, “We need a proper thorough-going free trade agreement , that’s what we need, and if the EU won’t do it, then we’ll do it in our own way.”
EUobserver CBC Reuters European Voice Euractiv BBC European Commission: Press release Reuters Friday’s Evening Standard

Yesterday’s SPD party convention voted in favour of entering coalition negotiations with the CDU/CSU set to start this Wednesday. The 200 SPD members also adopted a list of minimum demands including a statutory minimum wage of €8.50 and a common strategy to boost eurozone growth and employment. SPD chairman Sigmar Gabriel forecasted that Germany would have a new government by Christmas.
FAZ FAZ 2 FAZ 3 Süddeutsche Süddeutsche 2 Handelsblatt Handesblatt2 Handelsblatt3 Reuters Deutschland EUobserver Spiegel BBC Welt FT City AM WSJ Spiegel EUObserver

Writing for Conservative Home, Conservative MP Adam Afriyie argues, “while I am very sensitive to the concerns of other MPs, I fully intend to continue and take this amendment to a vote on the 8 November, unless someone can come up with a better way of securing an EU referendum next year.”
Conservative Home: Afriyie Telegraph Mail on Sunday

In an interview with the FT, Cypriot Central Bank Governor Panicos Demetriades said that his difficult relationship with Cypriot President Nicos Anastasiades is “not a sustainable state of affairs” but insisted that he would not resign. Demetriades also suggested that it could be a year until Cypriot capital controls are lifted and termed the government’s target of early 2014 as “too ambitious”.
FT Cyprus Mail

A referendum in San Marino on joining the EU failed yesterday after only 20% took part, meaning the minimum threshold of 32% was not met. The ‘Yes’ camp won a narrow victory with 50.3% over 49.7% for the ‘No’ camp.
No link

Saturday’s Times reported that the UK Treasury has rejected the European Commission’s decision that the UK’s patent box is in breach of its code of conduct on taxation.
Times

Jim Murphy, the Labour shadow development secretary, has said there is no justification for EU aid, part-funded by the UK, to go to Belarus and called on government ministers to take the issue up with the European Commission.
Telegraph

In an interview with Kathimerini, Greek Finance Minister Yannis Stournaras said, “We will only agree on a new bailout package if it is not accompanied by new measures… we will accept structural measures.”
Kathimerini

The Times reports that, according to leaked documents, the UK Treasury and the European Commission are at loggerheads over the new Mifid regulation with the latter pushing for non-EU firms to be forced to adopt EU rules on transparency, clearing and pay before they can trade with firms located inside the EU.
Open Europe research Times

Kathimerini reports that Syriza leader Alexis Tsipras is set to be named as the European Left’s candidate for President of the European Commission.
Kathimerini

Yesterday’s general election in Luxembourg showed significant losses for the party of Prime Minister Jean-Claude Juncker, the Christian Social People’s Party (CSV), which received 33.7% at the exit polls resulting in 23 seats in the 60-seat parliament.
FT City AM WSJ Handeslblatt EU Observer


Bron: politics.be