Open Europe bulletin: 27 September

• Bulgaria and Romania to join EU on 1 January: Government split down the middle on migration

• EU ministers postpone decision to give up veto over crime, justice and policing: fresh talks likely at the start of 2007
• News in brief

• Open Europe events

• Open Europe in the news

Bulgaria and Romania to join EU on 1 January: Government split down the middle on migration

The European Commission yesterday announced that Bulgaria and Romania will be allowed to join the EU from the beginning of next year.

In response, the UK Government said that before the end of October it will set out plans for “work permits” – which are supposed to limit the number of Bulgarians and Romanians who can legally get jobs with UK companies.

In recent weeks the Government has been openly at war over what “limits” to impose on Bulgarian and Romanian workers.  The issue has become a political football in the undeclared Labour leadership contest.  Tony Blair, along with Health Secretary Particia Hewitt and Europe Minister Geoff Hoon, has fought a running battle against John Reid at the Home Office and allies of Gordon Brown, including Alistair Darling.

Infighting in the Government:

- Those for free movement of workers:

Tony Blair has continued to put forward the case for free movement of workers from Bulgaria and Romania.  He told the Trades Union Congress:  “I applaud your TUC statement on this issue” after the TUC conference passed a resolution calling on the Government to let EU workers into the UK without restrictions.

Blair went on to say, “It is so close to my own view that I thought of simply reading it out and letting it stand as my speech... As you say: If migrant workers are treated fairly and paid a decent wage, they represent no threat to the livelihoods of people who are already living and working in the UK, and… it is good for the people of Eastern Europe because it provides them with growth, better jobs and wages, and spreads and deepens European democratic values. Creating a common market means that workers must have rights as well as businesses, and there must be freedom of movement for workers as well as for capital, goods and services. I couldn’t agree more.” (13 September) 

Europe Minister Geoff Hoon, A “source” informed the Mail that Hoon had told the cabinet “there should not be any delay in allowing Bulgaria and Romania to have free passage of people” (Mail, 10 August). A “spokesman” for Hoon said that “A ban would go against the treaties we have already incorporated into English law.  That can only be done by passing new laws and renegotiating the treaties we have already signed” (News of the World, 10 August).

- Those against free movement of workers

Gordon Brown told the News of the World that he was going to create a new policy of giving “British jobs to British workers”. He also told the Sun, "I believe also we need a policy of managed immigration in the future. We will have to look at that in the context of Bulgaria and Romania." (10 and 11 September)

Home Secretary John Reid told a group of police chiefs that “we need to manage immigration carefully, including in respect of the forthcoming decision over Romania and Bulgaria.” (PA, 19.9.06)

Trade Secretary Alistair Darling said that there would be no “open door” policy for Bulgarians and Romanians. "We cannot simply open the doors. We can't have a system that allows people to simply turn up unmanaged. Immigration has to be carefully managed and our policy is the policy of a managed system." (The Herald, 21 August 21)

UK Immigration Minister Liam Byrne, said that "We think, actually there is a case for only very gradual access.” (GMTV, 26 September)

A fake debate?

The debate so far has been conducted on the false idea that the UK is somehow able to “shut the door” on migrants from Bulgaria and Romania if it wishes.   However, under EU law all EU citizens have an automatic three month right of residence in all other EU countries.  Whether or not work permits are adopted, any Bulgarian or Romanian will be able to work legally in the UK as a self employed person, or be posted here by their company.  Indeed, because people have a right of residence the work permit systems that have been tried in other member states have encouraged people to work in the black economy – meaning that they pay no tax.

Rather than making bogus promises about limiting immigration of people who want to work legitimately in the UK, the Government should focus on the real problems which spark public concern: like crime and welfare tourism.

For example, an ICM poll for Open Europe found that 90% of the public believe that people from other EU member states who come to the UK and commit crimes worthy of a prison sentence should be automatically deported back to their own country. 

Tony Blair has called for exactly that. He told the House of Commons, "it is now time that anybody who is convicted of an imprisonable offence and who is a foreign national is deported.” Blair said all foreign nationals who were convicted of a serious criminal offence should be “deported automatically.” (3 May)

However, Blair ignored the fact that EU legislation from 2004 makes it illegal to automatically deport EU nationals who commit crimes in the UK.

Instead of making promises which they know they can’t keep, ministers should be working to solve the real problems they can do something about.  But that can only happen if the Government is prepared to face up to what they have already signed up to in Brussels.  In particular, they must be prepared to overturn rules which stop the Government from effectively managing the real challenges - like organised crime - which could be thrown up by migration from the new member states.

For more information, please read our briefing here

EU ministers postpone decision to give up veto over crime, justice and policing: fresh talks likely at the start of 2007

EU home office ministers met last week in Tampere, Finland, to discuss an EU Commission proposal to give up the veto over criminal justice and policing. At the meeting Germany and Ireland are reported to have opposed the move for the time being. 

The German government opposes the proposal as it believes that it represents ‘cherry-picking’ from the EU Constitution.  The German government worries that if the veto were given up in criminal justice there would be less desire to return to the Constitution in other countries.  The Irish are opposed because the current proposal goes further than the plans in the EU Constitution, by removing a proposed ‘emergency brake’.

EU Justice Commissioner Franco Frattini said at a post-summit press conference that the “majority” of member states are in favour of the proposal and that the UK was keeping a “very open position” on the idea.  The UK Government is currently sitting on the fence, hoping that other countries will continue to block the plan.

Open Europe last week released a poll which found that 72 percent of UK voters are opposed to giving up the veto.  We also published a pamphlet which analyses what the consequences would be if national leaders agreed to give up the vetoes over criminal justice and policing.

A decision is now likely to be put off until the German Presidency in three months time.  As the holders of the Presidency, the German government will then come under great pressure not to block the proposal.  Commissioner Frattini also signalled this week that he would be prepared to consider an emergency brake to address Ireland’s concerns, which may open the way to an agreement.

News in brief

Whistleblower branded “mentally unstable” by EU and forced from office

A tribunal in Luxembourg has heard how an EU Commission whistleblower was subjected to harassment and blackmail and was eventually branded mentally unstable by his bosses - in order to drive him from office. 

José Sequeira was marched from his office two years ago after the Commission's medical service said he was mentally unfit to work. His lawyers claim he was singled out for raising allegations of corruption in the Jacques Santer-led Commission during the late 1990s.  The Commission has refused to produce the medical “diagnosis” which supposedly proved Mr Sequeira was ill, and three different doctors have since given him a clean bill of health.  Sequeira was also accused of circulating a “defamatory dossier” by his superiors but the dossier has never been produced.  Around 200 Commission staff members are placed on long term sick leave each year, half of whom for “mental illness”.  This sick leave is said to cost EU taxpayers 74 million euros a year. (Financial Times, 14 September)

UK prepares for November battle over Working Time Directive

The UK Government is reported to be worried that it might be forced to give up its opt-out from the Working Time Directive.  The EU Commission is still attempting to end a current provision which allows employees to decide that they want to work longer than 48 hours per week when they sign their contracts.  The UK is the only country which allows workers to use this ‘opt-out’ in nearly all sectors of the economy. 

Until recently the UK has managed to stop the Commission from scrapping the opt-out by relying on the votes of Italy, Germany and Poland.  However, the new Italian government, under ex-EU Commission President Romano Prodi, has signalled that it plans to withdraw its support for the British position during negotiations in November. 

In a classic case of EU horse-trading, the UK Government is now attempting to get Italy back on side by offering to back its proposal to introduce high taxes on shoe imports from China and Vietnam.  However, the Socialist-Communist coalition which leads the Italian government is hoping that it can persuade Cyprus to back the anti-dumping duties which will give them a majority in the Council and will mean they no longer need the UK’s support. (FT, 23 September)

Two other recent stories have highlighted the pressure the UK’s economy is being put under by restrictive EU working hours legislation:

·         Leading doctors groups have backed Government plans to close 60 hospital departments across the country, arguing that the decision to end junior doctors’ opt-out from the rules has meant that there are not enough doctors to provide top-quality care for patients.  Ian Gilmore, president of the RCP, said: “Leaving aside financial cutbacks, the pressure on medical staff due to reducing junior doctors' hours to comply with the European Working Time Directive has made it increasingly difficult to maintain full emergency services running 24 hours a day in many hospitals.” (Observer, 17 September)

• Business groups have warned that the decision to apply the EU Working Time Directive to offshore oil rigs could lead to large sections of the industry having to close down. Employers fear that the change could prompt a flood of claims from workers. Their big concern is that the Jaeger judgment by the European Court of Justice, which ruled that time spent sleeping by doctors on long shifts should be classed as working hours, might be applied to offshore workers.   The UK Offshore Operators Association has said that if all time spent offshore were classed as working time, workers would be restricted to working 8 days a month.  (Financial Times, 25 August) 

Digby Jones questions value Britain is getting out of the EU 

Sir Digby Jones, who recently stepped down as Director General of the Confederation of British Industry, has questioned the value Britain is getting out of the EU. 

In a speech to a business audience in Birmingham entitled “I want my country back”, Sir Digby said: “when I see so many in Brussels and in member states doing a passable impersonation of the ostrich with its head in the sand as they march valiantly [back] towards 1970; when I see so many countries who should know better set an appalling example and have their EU membership a la carte…cheating or ignoring the rules when it suits; when countries are more concerned to protect 4% of their GDP – agriculture - with tariffs and subsidies that harm the poor of our planet, rather than invest in and stimulate tomorrow’s value-added economy in services, academia and innovation – I begin to ask – where’s the beef, where’s the value added?’… What are we actually getting in return for our partial loss of independence?”

Download Sir Digby’s speech “I want my country back”

EU leaders renew push to bring back EU Constitution

The drive to bring back the EU Constitution in a new form has built up steam in recent weeks after a number of high profile speeches by EU politicians.  In a speech on the priorities for the upcoming German Presidency, Foreign Minister Frank-Walter Steinmeier said that, “we need the Constitution – the sooner the better. The Constitution project must be resumed in the next year under the German council presidency”. (30 August)

In a speech to his parliamentary party several weeks later Steinmeier gave some more clues about what the German government is aiming to achieve on the Constitution.  He said “Two-thirds (of EU members) are behind the Constitution.  I believe everyone should feel an obligation because of that. If it is to be saved, and we urgently need it, everyone has to move their position. But some have to move more than others...  There will not be a final result at the end of the German Presidency, but rather if things go well there will be a decision to continue work for a Constitution that is connected to a decision about model and schedule. Our goal is nevertheless ambitious: we don't need any compromises on formula but rather a solution that makes Europe able to work and fit for the future." (Reuters, 25 September)

French Presidency candidate Nicolas Sarkozy has said that it will be impossible to put the EU Constitution to the French people to vote on a second time.  He proposed to convene a new Convention on the future of Europe after the 2009 European elections.  In the meantime, he proposed to negotiate a “mini treaty” which would be elaborated under the German Presidency of the EU in 2007, ratified under the French Presidency in 2008 and applied after the European Parliament elections in 2009.  He said that the mini treaty could be ratified by the French parliament with no need for a referendum.

Sarkozy proposes to introduce many of the elements of the EU Constitution through this “mini treaty”, including the creation of an EU Foreign Affairs Minister, a permanent EU President and further abolition of national vetoes.  He also proposed introducing “super-qualified” majority voting in areas such as taxation. (Speech, 8 September)

Under the initiative of Italian Prime Minister Romano Prodi a group of 12 “wise men” has been established which is aiming to find a way to bring back the EU Constitution.  Among the 12 is former EU Commissioner Chris Patten.  Lord Patten told the Times that he wanted to move away from the supposed “playground language” of the debate over the EU Constitution in the UK. He ruled out giving the public a say in referendum on the future EU treaty: “I am a strong opponent of referendums, in principle, which I think undermine Parliament.” The ‘wise men’ will meet for the first time this Saturday. (Times, 22 September)

EU fraud roundup 

(1) An investigation by the EU’s anti-fraud squad has discovered that 118 million euros of the 341 million euros given to the “primary objective” region of Calabria in Southern Italy last year has been stolen.  EU inspectors found that all 28 projects they examined were scams.  Franco Pacenza, the 48-year-old regional head of the Left Democrats political party, was arrested, accused of helping to defraud the EU of as much as 70 million euros by setting up a chain of false companies.  The small town of Gioia Tauro asked for money to erect 57 new buildings employing 1,600 builders but only six buildings were eventually constructed. (Sunday Telegraph, 27 August)  Another report has found that Italy has wasted over 5.5 billion pounds building ‘phantom hospitals’ that have not treated a single patient.  Many of the projects have received EU funding, such as the 4 million pounds given to a children’s cancer centre in Avellino in 1992, which has yet to install a single bed.  Work began on another hospital near Naples in 1965 and after decades of delay a decision was taken to finish it in 2001.  Inspectors later found out that the mafia was using it as a weapons store. (Telegraph, 5 September) 

(2) The EU Court of Auditors has found that over half of EU funded projects in Romania and Bulgaria “are not operating as intended”.  Failed projects include a virtually unused asylum-seekers’ centre costing 1 million pounds, a 2 million pound bridge which cannot be used because there is no access road at one end, and 200,000 pound border-control police boats rendered useless by cold weather. (Express, 31 August)

(3) Jacques Chirac has been accused of appointing a key ally to the post of Chief State Prosecutor, in order to avoid charges of corruption if he loses his presidential immunity next year. Mr Chirac has appointed Laurent Le Mesle, his former adviser on judicial matters, despite protestations. Mr Chirac faces prosecution in connection with a series of scandals dating from his time as the Mayor of Paris between 1977 and 1995 when he leaves office. (Guardian, 15 September)

Brown “to be as tough as Thatcher” on EU?

Chief Economic Secretary to the Treasury and long time Brown ally Ed Balls has claimed that Gordon Brown will be ‘as tough as Margaret Thatcher’ in standing up for Britain in the European Union.  He said, “What we will see is Brown the tough negotiator who will stand up for Britain's interests, who's willing to say No when No is the right thing to say". When BBC interviewer Nick Robinson suggested that those remarks sounded like Margaret Thatcher speaking, Mr Balls agreed, replying: "There was a phase on the European budget where she stood up for Britain's interests and got a much better, fairer outcome." (BBC Radio 4, 23 September)

EU seeks stricter regulation over football clubs’ expenditure

The EU Commission is considering plans to restrict the amount European football clubs can spend on players’ wages and transfer fees.  Clubs would not be allowed to spend more than they earn in these areas of expenditure.  This would have implications for clubs subsidised by rich owners - like Chelsea.  British Sport Minister Richard Caborn, after attending a meeting in Brussels, said it “was broadly agreed that there should be some proper relationship between income and expenditure.” (Independent, 21 September)

Open Europe events

Open Europe's next event will be a discussion at the 2006 Conservative conference:

"Can the EU be reformed? If so how?"

Chaired by: Charles Moore, former Editor, Daily Telegraph

Speakers:

Graham Brady MP, Shadow Minister for Europe

Anthony Browne, Brussels Correspondent, The Times, 2003-2006

David Heathcoat-Amory MP, Member of the European Convention

Tuesday 3 October 12:30pm - 2pm, Dorchester Two, Marriott Highcliff, (within the restricted area, conference passes needed) Bournemouth.

Buffet and wine available.

To attend, please email amy@openeurope.org.uk

Daily summary of European news

Each morning Open Europe produces a summary of all the top stories from leading newspapers across Europe.  Our team of researchers and linguists search through the press from the UK, Belgium, France, Germany, Italy, Poland, Spain and the Netherlands for the latest news on the European Union.  If you would like to sign up for the service please register on our homepage

It's just criminal, Blair

Sun, Mail, 22 September

The Sun and the Mail reported on Open Europe’s poll which found that 72% of voters are opposed to giving up the veto on criminal justice and policing.  The Sun quoted Open Europe Director Neil O’Brien saying, “At the moment the Government is saying that it has an ‘open mind’ on giving up the veto. They should rule it out for good.” 

Anger over Reid's migrant plans

Politics Show (30 mins in), Sunday Times, Sofia Echo, Sunday People, Evening Standard, FT, Mail, Morning Star, Mail, West Australian, BBC, Express

Open Europe was widely quoted on the issue of Romanian and Bulgarian immigration, numerous sources cited Open Europe’s calculations that the UK can expect 620,000 migrants from Bulgaria and Romania when they join the EU, together with the argument that work permits are not an adequate response to the issue.

Open Europe Director Neil O’Brien appeared on the Politics Show and BBC Online, arguing that “Work permit quotas are a bit of a con. They sound tough but they're not able to stop migration.  Once a country becomes a member of the EU you can't stop its citizens from travelling to the UK for up to three months, from studying here or working in a self-employed capacity.  You only reduce the number of people who may seek employment with a British company”.  Open Europe’s Paul Stephenson also argued on CNBC News that a work permit system would not work.

The Express and PA reported on Open Europe’s poll which found that 76% of voters want the Government to place restrictions on workers from Bulgaria and Romania.  The poll also found that 90% of people want the UK to be able to deport criminals from other EU member states and 64% want the UK to stop EU migrants from claiming welfare benefits in the UK. The Press Association quoted Open Europe arguing that "We should not restrict Bulgarians and Romanians who genuinely wish to work here from entering the UK and contributing to our economy” but that the Government must repeal EU legislation that stops the UK from restricting access to welfare and from deporting criminals.

Costly futile gestures in the climate change debate

Telegraph, UPI

In the Telegraph Ruth Lea reported on Open Europe’s research on the EU’s Emissions Trading Scheme (ETS), and our description of the system as "dysfunctional". UPI reported that “British think tank Open Europe said five years after it was first started in the region, the scheme was in danger of collapse.”

Sarkozy: I will revive the EU Constitution and exclude Turkey

Times, 8 September

Open Europe was quoted in the Times commenting on Nicolas Sarkozy’s proposals for an EU ‘mini-treaty’: “This shows that the likely future French President is determined to bring back the EU Constitution. By ‘cherry-picking’ the parts he thinks are the least controversial, Sarkozy intends to dress up the Constitution as a new ‘mini’ treaty that doesn’t merit another referendum - one he would be more than likely to lose. This is unlikely to be popular with Gordon Brown, who will recognise that creating an EU President, an EU Foreign Minister and scrapping vetoes in sensitive areas of policy, like tax, would be strongly opposed in Britain. Sarkozy is effectively proposing to implement key parts of the old Constitution by the back door, and if he succeeds, Brown will find it difficult to resist calls for a referendum here. He wouldn’t want to begin his premiership with a vote he’s certain to lose."