Open Europe : Daily Press Summary

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Schäuble and Osborne: Treaty change must “guarantee fairness for those EU countries inside the single market but outside the single currency”In a joint op-ed in the FT, UK Chancellor George Osborne and German Finance Minister Wolfgang Schäuble agree that “future EU reform and treaty change must include reform of the governance framework to put euro area integration on a sound legal basis, and guarantee fairness for those EU countries inside the single market but outside the single currency.” In addition, the two finance ministers agreed that, “We must complete the EU’s single market, especially in services”, something Open Europe estimates could be worth €294bn to the EU’s economy. The FT reports that Schäuble also reiterated in a speech yesterday that discussions over treaty change will begin immediately after the European elections.


Open Europe Director Mats Persson is quoted on the front page of the FT and by PA as saying that Germany’s commitment is “a substantial win for Osborne and Cameron. This is the first time treaty changes for further eurozone integration and safeguarding the rights of non-euro countries have been linked by senior German and UK figures.” The Times quotes Open Europe’s Raoul Ruparel arguing, “Importantly for David Cameron, it is also the first time that Germany has made it clear treaty change will be on the table in the near future rather than being kicked into the long grass.”

Separately, David Cameron has told BBC Radio Derby that he believes that people are prepared to wait for an EU referendum saying his was “a serious policy that the British public want. They don’t want to make a choice right now between leaving altogether or staying in a status quo they don’t like.”
Open Europe blog Open Europe: Services liberalisation FT: Osborne and Schäuble FT FT 2 Telegraph Telegraph: Nelson Times

David Cameron welcomes German government report on EU migration
David Cameron has told BBC Radio Derby that “if you are an EU citizen and not looking for work and claiming benefits then you can be removed to your country of origin. We'll look very closely if the Germans want to take this further… absolutely right to say that we should work with the Germans and others to tighten up the rules so that there is free movement to come here and get a job but not free movement to come and claim benefits.” The Guardian cites Open Europe’s blog on the German government report which argues that the proposals actually have quite a lot in common with Cameron's position, although each side goes further on certain issues.
Open Europe blog Guardian

Ukrainian parliament approves IMF austerity package at second attempt;
German Energy Minister warns that there is “no reasonable alternative” to Russian gas
The Ukrainian parliament yesterday approved the anti-crisis law and austerity measures required by the IMF as part of its new bailout package. The passage took two attempts after an earlier version of the law was rejected. The UN General Assembly yesterday approved a resolution describing the Crimean referendum on joining Russia as “illegal”, despite Russian resistance. Meanwhile, Former Ukrainian Prime Minister Yulia Tymoshenko announced that she will run for President in the upcoming elections, stressing that she will stand up to Russian “aggression”. She currently stands third in the polls on 8%, according to the WSJ.

Separately, German Minister for Economic Affairs and Energy, Sigmar Gabriel, yesterday warned that there is “no reasonable alternative” to Russian gas imports, but suggested that “scaremongering” around a potential cut off was not warranted as Russia is likely to honour its contracts. His comments seem to run counter to German Chancellor Angela Merkel’s calls for a “new inspection” of Europe’s energy policy.

The Guardian cites Open Europe’s analysis of the links between Russia and the City of London. Open Europe’s Raoul Ruparel is quoted arguing that the impact of sanctions “wouldn't be huge, and the City would be able to adjust and find business elsewhere”, while if sanctions escalated significantly a bigger issue would be where energy supply in Eastern Europe would come from.
Reuters Süddeutsche FAZ FAZ 2 Süddeutsche 2 FAZ: Frankenberger Telegraph European Voice BBC WSJ FT WSJ 2 FT 2 FT 3 FT 4 WSJ 3 Times Times 2 Welt Guardian

Le Monde reports that French President François Hollande is prepared to announce a cabinet reshuffle if his Socialist Party has another poor performance in the second round of the local elections that will take place on Sunday.
Le Monde

According to preliminary estimates from the Spanish national statistics institute INE, Spain had a negative inflation rate (-0.2%) this month compared to March 2013.
Expansión El Pa�*s El Mundo Cinco D�*as

The Telegraph reports that the European Parliament’s budgetary control committee has criticised the Parliament’s President Martin Schulz, for ensuring that top administrative posts have gone to members of his personal staff, and for allegedly using the Parliament’s civil service and, therefore, its budget in his campaign to become President of the European Commission.
Telegraph

According to sources quoted by Kathimerini, Greek MPs from the two ruling parties New Democracy and PASOK are now poised to back an ‘omnibus bill’ including a set of measures agreed with the EU/IMF/ECB Troika in a vote on Sunday. The approval of the bill should clear the way for the disbursement of the next tranche of Greece’s bailout – a total €11.9bn adding up the eurozone’s and the IMF’s contributions.
Reuters Kathimerini Kathimerini 2

A new IXÈ poll ahead of the upcoming European Parliament elections puts Italian Prime Minister Matteo Renzi’s Democratic Party in the lead on 30.5%, the anti-establishment Five-Star Movement on 25.3%, and Silvio Berlusconi’s Forza Italia on 20.8%. Lega Nord and Fratelli d’Italia, the two parties campaigning for Italy’s euro exit, are on 5.8% and 3.2% respectively.
IXÈ poll

The WSJ reports that the European Commission has proposed overhauling the EU’s existing pensions regulation with a view to facilitating the transfer of pensions across the EU via a single legal framework.
WSJ Handelsblatt EUobserver

Karel De Gucht, the European Commissioner for Trade, yesterday attacked China’s subsidising of its telecommunications sector, but also announced that the EU would not pursue an expected anti-dumping investigation into Chinese mobile equipment companies. His comments come ahead of Chinese President Xi Jinping’s visit to Brussels on Monday.
FT FAZ FAZ: Xi Jinping Süddeutsche: Strittmatter Handelsblatt

According to the latest Infratest Dimap/ARD Deutschlandtrend poll, 55% of Germans say they are not satisfied with the performance of the Grand Coalition after its first 100 days in government, while 41% say they are.
Reuters Deutschland FAZ

The European Commission has launched a 90 day public consultation in a bid to address "misconceptions and misrepresentations" about plans to include controversial rules on investor protection into an EU-US free trade deal (TTIP).
EU Observer De Morgen

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