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MEP expenses scandal: 58 million euros missing

17 March 2008

 

- Tillack: “we are not talking about a few black sheep but a flock which covers half the parliament.”

- Poettering counter-attacks British culture of nepotism

Hans Martin Tillack reports on the growing MEP expenses scandal in Stern. The paper has seen a further report on expenses fraud.  On his blog he notes that for a time MEPs were supposed to account for how they spent their 17,000 euro a month office allowance.  But despite this for the years 2004 and 2005 receipts worth 58 million euros have not been produced.

 

Tillack comments that “we are not talking about a few black sheep but a flock which covers half the parliament.”  He says the decision of the Parliament’s Committee to vote to keep the first report on expenses fraud secret shows how unreformed the EU is.  He comments that “A serious discussion is hardly possible. Because the parliamentarians deny themselves the facts - or even insure that they are completely unknown to them.”  He notes speculation about various German MEPs cannot be rebutted because the facts are being kept secret.  Since 2006 the problem has been “solved” because MEPs no longer have to produce actual receipts but just a log of what the money has been spent on.  He comments: “Oh miracles, they now find it much easier to comply.”  He criticises the inhibitions of the Brussels media and the “reflexive” secrecy of the institutions for the problem.

 

On his blog Telegraph correspondent Bruno Waterfield notes that Parliament President Hans Gert Poettering brushed aside criticism at Friday’s summit.  He blamed the problem of different political cultures across the EU, singling out nepotism in the UK’s political culture.  He said: “The system is set up in such a way it can be applied across a complex EU. There are 27 members states, many of the assistants are working in the country of origin. In the UK apparently people often employ family members, which is often part of the problem… If I was to employ someone from my own family, and this person was one of my sons and he got money from me. I could say goodbye to politics. I would lose my job. Obviously it is different in the UK. This is a crude example of how different our cultures are.”

Stern blog Waterfield blog

 

Northern Rock faces huge job losses to comply with EU competition rules

The Times reports that Northern Rock faces being shrunk to half its present size, with big job losses, under plans drawn up to satisfy European Union competition rules. Alistair Darling will tell Brussels today that he wants to continue giving state aid to the bank, which was nationalised last month after ministers decided it was the only way to get it through its troubles. But the radical slimming down, which could mean that thousands of the bank’s 6,500 jobs will go, is judged by the Treasury to be necessary to meet the EU’s stringent rules for helping firms.

 

The Sunday Times reported that Denmark’s biggest banks have written to the European Commission to complain about the behaviour of Northern Rock in the Danish savings market. In the first formal attack on Northern Rock’s conduct lodged with European authorities, the Danish banks claim the publicly owned bank enjoys an “unfair competitive advantage”.

Sunday Times Times Guardian

 

EU leaders urge Polish Government to avoid a referendum

The Irish Times reports that Poland's PM Donald Tusk came under severe pressure during last week’s EU summit, as other European leaders expressed concern over a possible referendum in Poland on the Lisbon Treaty. EU leaders have asked Tusk for reassurances that demands for a referendum in the country will not delay the Treaty entering into force.  Poland’s opposition Law and Justice Party are now demanding a referendum, which risks complicating the ratification of the Treaty, something previously expected to run smoothly. The article notes that a referendum in Poland could trigger calls for public votes also in other member states, notably Britain. Tusk said at a press conference, "All my interlocutors asked me what's going on”. He added, “A referendum is the last resort.”

 

Meanwhile, Law and Justice is also calling for legal guarantees that prevent further changes to the Treaty. The party argues that the special addendum to the ratification bill is needed so that "homosexual marriages cannot be imposed on us" and that Polish property rights are secure on territory taken from Germany after World War II. "In my opinion the new ratification law ... should ensure the farthest-reaching security," President Lech Kaczynski told reporters. "Simply speaking, it should be as hard as possible to change whatever has been signed."

 

Poland's parliament planned on Tuesday to debate whether to approve ratification of the Treaty. The government and allies are a few votes short of the 307 majority required. EUobserver notes that some domestic media outlets are reporting that Prime Minister Tusk would consider a referendum on the Treaty, should the parliament fail to ratify it.

Irish Times EUobserver AP Reuters

 

Brown outmanoeuvred by Germany on EU carbon policy

Saturday’s press reported that the EU’s hopes of spearheading a global post-Kyoto climate change accord were jeopardised when Germany secured pledges that several heavy industries could be protected from international competition and exempted from EU plans to combat global warming.  Energy intensive industries in Europe – such as steel and cement – are to be offered two assurances should there fail to be a global agreement on climate change. They could get free pollution permits – instead of having to buy them by auction – linked to technological benchmarks, while the EU could also make foreign companies take part in the Emissions Trading Scheme (ETS).

 

The Guardian reported that Britain and the Commission had opposed German demands, but that Gordon Brown and Jose Barroso brokered the deal with Merkel, in return for a pledge to consider Brown’s push for ‘green’ VAT cuts.  The EU Commission was instructed to "examine areas where economic instruments, including VAT rates, can have a role to play to increase the use of energy-efficient goods and energy-saving materials".

 

The Independent reported that EU leaders also agreed to take action to counter unfair competition from less eco-friendly countries such as the China or the US.  Nicolas Sarkozy said this could mean “carbon taxes” on manufactured goods from nations which refused to take action against global warming.

 

Roland Rudd, Chairman of Business for New Europe, had a letter in Saturday’s Independent in which he argued that “the business community supports the need for European action” on climate change.

Independent Le Monde Guardian  Independent Guardian leader EUobserver FT leader  IHT

 

EU 24 hour car lights directive to cost motorists £140 million a year

EU plans for car lights to be kept on all day will cost British motorists £140 million a year and damage the environment, according to Lib Dem MP Norman Baker. Government figures show that the plans will increase fuel consumption by 0.5 percent. Baker says that as well as the extra cost to drivers, the measures will put an extra 250,000 tonnes of the greenhouse gas carbon dioxide into the atmosphere.

Express – no link

 

EU Commission: biofuels are leading to higher food prices – but it’s all America’s fault

EUobserver has a news feature on the EU’s controversial target of 10% of transport fuel coming from biofuels by 2020. It notes that last week, the head of the UN's World Food Programme, Josette Sheeran, said that high oil prices, low food stocks and the push for biofuels was creating a "perfect storm" that will cause "new hunger" around the world and called on the EU to "give more thought to its biofuels policy and targets."  Also last week, the UK Government's Chief Scientific Advisor, Professor John Beddington, warned that the rush towards biofuels is threatening world food production and the lives of billions around the planet.

 

The EU Commission dismissed the criticism, however.  Ferran Tarradellas, the Energy Commissioner's Spokesperson, said "High food prices right now are instead a product of low harvests, growing demand in Asia and export restrictions in Ukraine and Russia, who are two of the main suppliers of grain to the EU. Moreover, our target is quite a low one – only 10 percent."

 

EU Agriculture Spokesperson Michael Mann blamed the US for rising food prices: "It's clear that the US move towards ethanol is having a marked effect on commodity prices, as a lot of maize is being moved into bioethanol production.  Whereas any effect the EU may be having is utterly exaggerated… In Europe, we use less than two percent of our cereals for the production of biofuels, so this can't contribute to higher food prices, let alone food shortages."

EUobserver

 

NATO Secretary General calls for EU and NATO to have “equal access” to troops;

Calls for new “Atlantic Charter”

Gawain Towler’s blog notes Jaap de Hoop Scheffer’s speech on Saturday, where he said the troops which can be requested by NATO should be “equally available” to the EU.  He also called for efforts to eliminate duplication between the two organisations by pooling capabilities and harmonising training.

 

He said “I believe that taking NATO reform seriously means also to look for more synergies with the European Union. I would like to see much more pooling of our capabilities, especially in areas such as vital enablers, transport and helicopters, or in research and development, or in harmonising our force structures and training methods. After all we only have one common set of national defence budgets and national military forces.”

 

“So it is absolutely critical that all of the capabilities that we are able to generate from this pool of forces are equally available to both NATO and the EU. If we duplicate, or go off in different directions, we will both fail. That is why our Finance Ministers should want closer NATO-EU cooperation just as much as our Foreign and Defence Ministers. It is why a new Strategic Concept should be unequivocal about the need for more NATO-EU cooperation. And it is why the elaboration of a new Strategic Concept for NATO should take account of the EU’s efforts to update its own European Security Strategy – and vice versa.”  He called for these principles to be written into what he described as a new version of the “Atlantic Charter”.

Speech Reuters Bloomberg Gawain Towler Reuters

 

Booker: Commission sides with China against Dalai Lama charity

In his column in the Sunday Telegraph, Christopher Booker looks at a Tibet-based charity, ApTibet, which in the past has helped people victims of humanitarian catastrophes. It is noted that “No charity would be better placed to save lives” in the wake of the recent natural disaster in the Chinese province of Chingai. But, Booker says, after the EU and China became "strategic partners" under an agreement signed in 2005, the Commission suspended the operations of the charity because of its link to the Dalai Lama. The Commission has also demanded repayment of €451,000 and taken the charity through an expensive court procedure., effectively crippling the charity.  

 

Booker also looks at the small Finnish island Aland, which has threatened to block ratification of the Lisbon Treaty over a “snus” ban imposed by the EU.

Sunday Telegraph

 

EU threatens curbs on US flights

The EU has threatened to curb the number of flights from the US unless Washington agrees to subject its airlines to emissions trading. EU airlines must join the emissions trading scheme in 2012, which could add up to £13 to the price of a return flight as carriers buy "carbon credits". The EU however is reluctant to accept what it sees as disproportionate US demands for data from passengers overflying the US.

Guardian

 

‘Heavyweight’ ought to get EU President job, says poll

A Harris poll for the FT shows that more than three-quarters of people surveyed in France, Italy and Spain and half in the UK believe that the EU Presidency must go to a high profile figure. There is no consensus on who this person should be. However, Angela Merkel and Tony Blair are the only two politicians who get a clear level of support in countries that are not their own. The poll also reveals strong support for Kosovo’s recent declaration of independence.

FT

 

EU rejects plea to outlaw 'dangerous' food colours linked to hyperactivity in children

EU food regulators have rejected calls to ban additives, including artificial colours and preservatives, which are linked to hyperactive behaviour in children.  While some UK food companies have already taken action to remove additives - including Marks & Spencer - in response to a study revealing their negative effects, campaigners have expressed outrage at the EU decision and demanded that the UK take unilateral action to ban the additives from food.

Mail Times

 

The FT reports that Arsenal’s Emirates stadium is to host the meeting between Nicolas Sarkozy and Gordon Brown later this month, as the ground is “seen as the home of French football in Britain given the number of Gallic names in the Arsenal squad.”

FT

 

Sarkozy claims his Mediterranean Union plan is taken seriously by other EU leaders

Despite reports last week that the Mediterranean Union idea had received a lukewarm reaction from EU leaders, the Coulisses de Bruxelles blog reports that Nicolas Sarkozy boasted in front of the media on Thursday evening that the idea had been welcomed “unanimously, and with great enthusiasm” by his counterparts at the EU summit.  In an hour-long speech to the press at midnight, he said, “This is the third French initiative, after the simplified treaty and the Wise Men’s group, to attract a very large consensus in Europe.”

Coulisses de Bruxelles

 

An article in Le Monde reports on the increase in temporary jobs around the EU. 32 million people work in temporary jobs today, compared with 22 million in 1997.

Le Monde

 

Sarkozy to enter more “sober” second chapter of his presidency

There are several reports on planned changes to Nicolas Sarkozy’s style of presidency following his party’s major setback in the second round of the local elections yesterday.  A major government reshuffle has been ruled out, but Sarkozy’s spokesman, David Martinon, has lost his job after bungling a campaign to be elected Mayor of Neuilly.

IHT Times Guardian

 

Gideon Rachman on EU summits: “it is often difficult to see the point” 

FT Chief Foreign Affairs Columnist Gideon Rachman recounts his experience attending EU summits and notes that “as an outsider, it is often difficult to see the point.”  In the area of foreign policy, he writes that Europeans “can look a bit ridiculous, as they go around proposing world-changing initiatives that are greeted with polite yawns elsewhere. But irrelevance is not such a bad fate. The US is relevant alright - but it is also involved in two draining wars, and has hugely expensive security commitments all round the world.”

FT Rachman

 

Eurozone inflation surges as Euro strengthens

Eurozone inflation has reacheds a 14-year high. However, EU leaders on Friday issued a rare statement of collective concern about the damaging effects on Europe’s economic growth of the strength of the euro on foreign exchange markets.

FT FT 2

 

With one month to go to national elections in Italy, the WSJ notes that the centre-right coalition led by Silvio Berlusconi holds a comfortable lead in the polls.

WSJ

 

European Transport Commissioner Jacques Barrot has said that the Commission will step up efforts to make airlines compensate many more passengers for delays and cancellations – airlines could be fined £5,000 per passenger if they have falsely claimed that an incident was beyond their control.

Times

 

UK

 

A Sunday Times poll put the Conservatives on 43 percent, Labour on 27 percent and the Lib Dems on 16 percent.

Sunday Times Poll Independent Curtice