The Corrupt EU

Open Europe

Fortnightly Open Europe Bulletin: 26 February 2010
Diplomatic appointment reveals tensions at heart of Lisbon Treaty foreign policy structures
EU leaders preparing €25 billion rescue package for Greece?
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Quote of the fortnight:



"The issue is not the failure to match economic and monetary ­union with political union. It is the naked disregard for democratic engagement in the entire system that in no small part ­explains why voter turnout in EU elections has plummeted by more than 30% in the last 30 years. Whenever people vote no to a phase of integration - as they did in Ireland two years ago - the EU simply orders them to vote again until they produce the right result."




Gary Younge, writing in the Guardian, 15 February 2010




1. Diplomatic appointment reveals tensions at heart of Lisbon Treaty foreign policy structures





The European Commission has become embroiled in a 'jobs for the boys' controversy, with Commission President Jose Manuel Barroso appointing his former Chief of Staff Joao Vale de Almeida to one of the EU's most prestigious diplomatic posts: Ambassador to the United States.



The appointment has increased concern that the Commission is slowly taking over the EU's new foreign policy institutions, created by the Lisbon Treaty. EU Foreign Minister Catherine Ashton is supposed to make such diplomatic appointments through the EU's External Action Service (EAS). However, in the transition phase before the Service is set up, President Barroso has been able to make the appointment. The announcement was leaked in the US 24 hours before the official appointment was made, and before member states or even Cathy Ashton was informed. (Telegraph, 23 February)



The shape of the EAS is currently undergoing negotiations about its funding and the proportion of its staff that should come from member states, the Commission and from the Council. Concerns have previously been voiced by diplomats that Lady Ashton is not strong enough to prevent the Commission having too much influence over the EAS. (OE bulletin, 15 January)



In a letter of complaint to Ashton, Swedish Foreign Minister Carl Bildt wrote: "This nomination has been done without applying the very principles now under discussion where transparency, member states involvement and, above all, your roles as appointing authority are key elements".



The appointment also led Mr Bildt to voice doubts over the Lisbon Treaty's institutional set-up on foreign policy: "I've always questioned whether the construction would work... the post [EU foreign minister] is set up in a way that makes it virtually impossible. Catherine Ashton needs to be assisted." (Dagens Nyheter Times, 23 February)



Meanwhile, Lady Ashton has also come under criticism for failing to attend a key meeting of EU defence ministers in Mallorca this week, with Spanish Defence Minister Carme Chacon saying she "regretted the absence" of Cathy Ashton at the meeting, given the "important" subjects under discussion. French Defence Minister Herve Morin said, "Isn't it rich that this morning, to display the ties between Nato and the EU, we have the Nato Secretary General [Anders Fogh Rasmussen] here but not the High Representative for the first meeting since the Lisbon Treaty came into effect". (Times, 26 February; EUobserver LeFigaro Twitter, 25 February)



Please leave your comments on our blog:

http://openeuropeblog.blogspot.com/2010/02/jobs-for-boys.html


2. EU leaders preparing €25 billion rescue package for Greece?






In a new Open Europe briefing, political consultant Jesper Katz has examined the impact of a Greek bailout package reportedly being discussed inside the German Finance Ministry. According to some reports the bailout, which totals between €20 and 25 billion, would be paid in proportion to each country's share in the European Central Bank (ECB). (Spiegel, 20 February) Open Europe's briefing notes that if this is the case, then the UK could also be forced to contribute money to a Greek bailout since Britain also pays into the ECB.



A statement from the German Foreign Ministry denied that there are "concrete plans" but has not denied the existence of a blueprint for a Greek rescue, saying only that no decision had yet been taken on a package and who would be footing the bill. (EurActiv, 23 February)



European Commission and International Monetary Fund officials have been visiting Athens this week to evaluate whether the government's proposed austerity measures will be sufficient to cut the budget deficit and reassure investors. Following the visit, the Greek government is expected to announce further cuts and tax increases next week. (WSJ, 26 February)



The EU's calls for further cuts have sparked tensions between Greece and other EU states, particularly Germany. In an angry outburst, Greek Deputy Prime Minister Theodore Pangalos said that Germany had failed to pay adequate compensation for the Nazi occupation of Greece and suggested Italy had done much more to mask the true extent of its public debt than Greece when it entered the euro. (Guardian, 24 February)



Meanwhile, in a poll for German newspaper Bild, 67 percent of Germans have said they are against a Greek bailout, and 53 percent said they were in favour of expelling Greece from the eurozone if it poses a danger to the single currency. (Bild, 14 February)



To read Open Europe's briefing, click here:

http://www.openeurope.org.uk/research/greecebailout2.pdf