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Open Europe : Daily Press Summary/daily pressbulletin

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Downing Street indicates ministers will be allowed free vote on EU referendum amendment Backbench Conservative MPs have tabled an amendment to the motion approving the Queen’s Speech expressing “regret” that the legislative package did not contain an EU referendum bill. Downing Street sources said the Prime Minister is “relaxed” about the prospect of a vote on the amendment next Tuesday, which would be largely symbolic, indicating that ministers might be allowed to support it, although Mr Cameron will himself be out of the country. The Telegraph notes that following next week’s debate, backbenchers also intend to table a private members’ bill on an EU referendum. No 10 sources indicated that MPs and ministers would be free to vote for that bill as well, raising the prospect of the Commons voting on laws to provide a referendum in the next Parliament


Meanwhile, former Conservative Chancellor Lord Lamont said yesterday, “I think the economic advantages of the EU are vastly overstated. I think we could manage on our own as Switzerland does. But I think it is worth one final attempt to renegotiate our relationship.” In an interview with the Guardian, former Conservative Foreign Secretary Sir Malcolm Rifkind said, “It is grossly premature to assume that the Prime Minister's renegotiation will not succeed…the signs since his Bloomberg speech of the likely reaction of his European colleagues so far is positive rather than negative.” In the Times, former Labour Chancellor Alistair Darling argues that the UK must stay in the EU, while, in the FT, Martin Wolf writes, “The case for exit is not close to proven.”
Open Europe blog Mail Telegraph Telegraph 2 BBC Times Times 2 FT FT 2 Sun Express Conservative Home Independent Guardian City AM Guardian 2 Economist Times: Darling FT: Wolf Guardian: Toynbee

The Greek unemployment rate reached a record high of 27% in February with youth unemployment hitting a staggering 64.2%. In Portugal, the unemployment rate for the first quarter of this year hit 17.7%, up from 16.9% in the last quarter of 2012.
Kathimerini FT Jornal de Negócios Le Monde La Tribune Irish times

On his Rzeczpospolita blog, Open Europe’s Pawel Swidlicki argues that further liberalisation of the EU services sector, which Open Europe’s new report shows would boost EU GDP by €294bn (2.3%), would be a good way for non-euro states like Poland and the UK to engage constructively in setting the EU agenda.
Open Europe research Rzeczpospolita: Swidlicki

Slovenia yesterday announced a new package of measures aimed at helping the country avoid a eurozone bailout. The measures include increasing VAT and selling off 15 state companies but the government resisted implementing a ‘crisis tax’.
WSJ FAZ Süddeutsche Spiegel La Tribune El País Irish Times Euractiv European Voice BBC

Spain successfully sold €4.57bn worth of government bonds yesterday at lower cost than previous sales. The sale means Spain has now issued 48% of the debt targeted to be sold this year. Separately, the Spanish government has decided to postpone the adoption of a package of reforms and cuts affecting the education sector, following protests against the plans.
WSJ El País El Mundo El País 2

In an interview with Polskie Radio on the future of the EU and on UK-EU relations, Open Europe’s Pawel Swidlicki argued that the solution to many of Europe’s problems would be greater economic and political decentralisation, as the one-size fits all approach of Brussels has contributed to the current economic malaise and disconnect between EU elites and citizens.
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The Mail reports that British tourists have been urged by consumer groups not to rely on the European Health Insurance Card (EHIC), which is supposed to give all EU citizens access to state medical care in member countries, because clinics in cash-strapped EU nations are refusing to treat them.
Mail

In an op-ed piece in FAZ, German economist and Open Europe Berlin board member, Carl Christian von Weizsäcker argues that an appreciation of the euro would cause a massive shift of jobs away from Germany.
Open Europe Berlin FAZ

Speaking at yesterday’s Global Investment Conference German Finance Minister Wolfgang Schäuble warned that the stimulus provided by central banks around the world was causing “critical problems” and that they must strive to “reduce global liquidity”. Separately, he also looked to calm fears over the Financial Transaction Tax, saying, “it is not a major problem” this year or next year.
WSJ Guardian Live Blog UKTI Reuters Times

The Irish Independent reports that, according to a new study, 308,000 Irish men and women have moved overseas in search of work in the past four years, and half of young people aged under 24 have considered emigrating.
Irish Independent

FAZ’s economics editor Heike Göbel argues that France has intentionally avoided consolidating its budget, and that the extension it has been given to do so is not justifiable. “It is unfair to denigrate these measures as ‘austerity dogma’”, she says. “Monetary union cannot be built upon hope.”
FAZ: Goebel

Italian prosecutors have requested that Silvio Berlusconi stand trial for corruption. Berlusconi is accused of bribing centre-left Senator Sergio De Gregorio to defect to the centre-right and ‘sabotage’ the government led by Romano Prodi – which fell in 2008 after less than two years in office.
Repubblica


Open Europe Fortnightly Bulletin
New Open Europe report: How to reignite the EU’s services market and boost growth by €300bn;
David Lidington: Open Europe’s proposal “is worth exploring”

Open Europe has published a new report showing that fully implementing the EU’s existing Services Directive and further liberalising EU services markets would boost EU-wide GDP by up to 2.3% or €294bn. The report argues that, if agreement at 27 is not possible, the UK and other like-minded EU countries should use a quirk under EU law – the so-called ‘enhanced cooperation’ procedure – to remove barriers to cross-border services trade amongst themselves. This could still provide a permanent boost to the EU economy of over 1% of GDP, or more, depending on which countries sign up.

UK Europe Minister David Lidington said of the report, “It’s an interesting idea worth exploring.” Dr Adam Marshall, Director of Policy and External Affairs at the British Chambers of Commerce, said, “Open Europe has made a strong and robust case for action in Brussels and national capitals across Europe.” In an interview with Open Europe, Adam explained how important services liberalisation is for UK businesses. The video of the interview featured on the Guardian’s live blog.

The report received widespread coverage across Europe. It was trailed by the FT, Italian business daily Il Sole 24 Ore, Dutch business daily Het Financieele Dagblad, Polish daily Rzeczpospolita and Austrian daily Die Presse. It was also cited by City AM, the WSJ’s Real Time Brussels blog, Dutch news agency ANP, Dutch papers Volkskrant and Elsevier, and several other news outlets across Europe. Open Europe’s Director Mats Persson was quoted twice by the FT, including in a special feature on the future of the EU. Mats also discussed the report on his Telegraph blog, as did Open Europe’s Pawel Swidlicki on his Rzeczpospolita blog and Open Europe’s Christopher Howarth in a piece for Conservative Home. Open Europe’s Pieter Cleppe argued in an op-ed for Belgian financial daily De Tijd that Belgium should back further services liberalisation in the EU.

Open Europe Berlin, our German-based partner organisation, also published a report (in German) calling for greater services liberalisation across Europe. The report was cited extensively by Die Welt on the front page of its economic section.

Conservative heavyweights step into debate over UK’s EU membership

Writing in the Times, former Chancellor Lord Lawson called on the UK to leave the EU, arguing that “the economic gains would substantially outweigh the costs.” He added that David Cameron’s attempts at renegotiation “will be inconsequential.” Michael Portillo also had a piece in the Times where he advocated leaving the EU. Boris Johnson, Lord Lamont and Sir Malcolm Rifkind all argued in favour of renegotiation. David Cameron hit back at re-negotiation “pessimists”, claiming that “I think it is possible to change and reform this organisation and change and reform Britain's relationship with it.” Meanwhile, following UKIP’s success in the local elections, demands for legislation on an EU referendum before 2015 have intensified. A number of mostly Tory backbenchers have tabled an amendment to the Queen’s Speech expressing “regret” that it did not include such an option.

Mats Persson appeared on BBC News and Christopher Howarth was quoted by Deutsche Welle, both discussing the impact of UKIP’s success in the local elections and the calls for an early EU referendum. Mats was also quoted by Swedish daily Svenska Dagbladet in a feature looking at the UK’s debate about the EU. The paper cited Open Europe’s ‘Trading places’ report.

Open Europe exclusive: Internal document reveals major concerns about FTT amongst eleven participating member states
Open Europe 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.

Mats Persson was quoted by the FT, Times and Telegraph as saying that “the UK, Sweden and others are absolutely right to raise concerns about the way the tax is drafted at the moment.” Open Europe’s Vincenzo Scarpetta was quoted by Italian business daily Il Sole 24 Ore, Wall Street Italia and Spanish business daily Expansión suggesting that Italy and Spain should reject the Commission ’s proposal. Austrian daily Kurier quoted Open Europe’s Raoul Ruparel discussing the memo.

City AM, the Times’ Business Editor Ian King, the Telegraph and Guardian live blogs, Spain’s two largest newspapers El País and El Mundo, and Spanish news agencies EFE and Europa Press all credited Open Europe for publishing the leaked document. Bloomberg also featured the memo obtained by Open Europe.

The UK has challenged the FTT at the European Court of Justice, on the basis that the tax will have a substantial impact on non-participating member states due to the way it is designed. Open Europe published a flash analysis of the legal challenge, which was quoted by the Times, a leader in the Telegraph and Sky News.

Michael Fallon MP at Open Europe event: We’ve ended gold-plating of EU laws in the UK

Open Europe’s event featuring UK Business and Energy Minister Michael Fallon MP on how to cut the burden of EU regulation, where he said the Government had “effectively ended” the gold-plating of EU laws in the UK, was cited by the BBC. A video summary of the event is available on our website.

European Commission proposes new powers for EU police agency to access national police files

Open Europe’s Research Director Stephen Booth was quoted by the Telegraph and the Guardian as saying that the UK should maintain police cooperation with its European partners “but with full and proper accountability to MPs in Westminster, rather than Brussels.”

In a guest feature on Liberal Democrat Voice, Pawel Swidlicki argued that while Lib Dems have been robust in standing up for civil liberties domestically, it “would be wrong not to adopt the same approach to Brussels simply because the laws proposed have the pre-fix European.”

Another Open Europe exclusive: How the EU is planning to regulate ‘shadow banking’

Open Europe obtained and exclusively published on its blog internal documents detailing new EU plans to regulate ‘shadow banking’ – lending activities taking place outside the official banking sector. Raoul Ruparel was quoted by the Times, Danish daily Dagbladet Information and on the front page of City AM discussing the documents.

Italy: The eurozone’s new great anti-austerity rebel?

After two months of political stalemate, a ‘grand coalition’ government led by Enrico Letta was appointed in Italy. In a guest post for Prospect’s blog, Vincenzo Scarpetta argued that Silvio Berlusconi’s significant influence on the new government could mean Italy taking a tougher anti-austerity stance in Brussels. Pawel Swidlicki appeared on CNBC discussing Italy’s political situation. Open Europe’s blog reaction to the appointment of the new Italian government featured in City AM, Portuguese business daily Jornal de Negócios and on the Guardian’s live blog.

Check out our website for all our media appearances.

And finally...

The WSJ’s Euro Crisis blog reported that the ECB has awarded €10,000 in order to promote street art commenting on the crisis outside the construction site of its new Frankfurt headquarters. In one work, ECB President Mario Draghi is cast as James Bond in a “Casino Royale” themed mural with German Chancellor Angela Merkel dressed glamorously at his side, while in another he makes an appearance as a disembodied head spitting out gold bricks, like a Pez dispenser.

Open Europe’s Pawel Swidlicki was quoted as saying that the ECB should be “more mindful” of its spending, given that the new headquarters is already subject to substantial cost over-runs and its own role in enforcing austerity in the eurozone.
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