European Union

The European Union should give western Balkan states a target date for accession to the bloc in a bid to bolster democratic reforms in the region and invigorate EU enlargement, Greece's foreign minister said on Monday. Dimitris Droutsas said the EU could consider setting 2018 as a goal for hopefuls in the Balkans to become members but that only countries that are fully ready should be allowed to join. Greece would aim to seek consensus among EU member nations for such a date -- for states including Serbia, Macedonia, Montenegro, Albania and Bosnia -- when it holds the bloc's rotating presidency in 2014, he said. "We can adopt a political declaration that sets a specific, ambitious and realistic goal for completing the accession process for western Balkans," Droutsas said at a seminar in Brussels where he was to attend an EU foreign ministers meeting.

Minister of Foreign Affairs Vuk Jeremic said in London on Thursday, that unless the fatigue caused by EU enlargement is overcome, the silent pro-European majority in the Western Balkans might become a silent minority. Speaking at the London School of Economics, Jeremic reiterated that Serbia is absolutely committed to EU membership as a strategic goal and Belgrade is open for dialogue and compromise with Pristina, acceptable for both sides. The dialogue should begin as soon as possible and on less controversial issues, in order to gradually shift to more delicate ones, the Minister explained.

Portuguese, Spanish and EU leaders, alarmed at the seemingly unquenchable vengeance of this marketplace leviathan, insisted that the two Iberian nations were very far from having to follow Ireland and Greece in asking for bail-outs.

EU economics chief Olli Rehn sought to buttress the the standing of Portugal insisting on the "very different" situation between Lisbon and Dublin, while the head of the eurozone, Luxemburgish Prime Minister Jean-Claude Juncker described the market vigilantism against Portugal and Spain as "not justified". Railing against the state of affairs, Mr Rehn told MEPs on Monday: "Any talk of deconstruction of the European project is irresponsible. All member states would have been in a much more difficult situation without the European Union and its political shield."

Eurozone neighbours are pressing Ireland to raise the 12.5% corporation tax rate as part of negotiations for a rescue package but Dublin is resisting, arguing that it is crucial for foreign investment. Irish Deputy Prime Minister Mary Coughlan told parliament the corporate tax rate was "non-negotiable". European Minister Dick Roche echoed that comment, saying "it is certainly not up for negotiation". "There has been some very unhelpful chatter in the background in the last few days about our corporation profit tax. Where would be the sense of destroying one of the great drivers of growth?" he told BBC television. Britain and Germany have long viewed low Irish taxes as a form of unfair competition and the finance ministers of Austria and France said the corporation tax may have to be raised as part of any deal. Michael Meister, a deputy leader in parliament and finance expert for Angela Merkel's Christian Democrats (CDU), said the country needed to consider raising the levy. "The Irish rates are below the European Union average," Meister told Reuters on the sidelines of the CDU annual party congress on Tuesday (16 November). "I therefore see here at least a possibility, given the high [Irish] budget deficit, to improve revenues without causing a negative impact on growth," he added. Meister's comments come one day after Elmar Brok, a senior CDU lawmaker who has sat in the European Parliament since 1980, said Ireland may have no choice but to raise the rate. "Ireland has two options to consolidate its budget – cut expenses even further or increase taxes like the corporate tax rate," Brok said at the congress in Karlsruhe.

The message was clear and universal: José Manuel Barroso, president of the European Commission, needs to take a stronger leadership role to push through the Single Market Act, according to a debate on Thursday (18 November).

Simply put, the single market is the framework of rules that help goods, services, money and people move across borders. The single market means fewer hassles, taxes and paperwork at custom and immigration crossings. It's the reason mobile phone bills have declined 70% and airfares by 40% since 1992, according to the Commission. But too many European citizens and businesses don't see the benefits, and Lord Leon Brittan, a UK government trade advisor, said that's because the market has not fully delivered on its promises: "You can't buy goods online in other member states and small and medium-sized enterprises can't access other markets because of onerous requirements."

"Where are the concrete proposals?" he asked. Indeed, many of the 50 seem to lack punch, including: No. 7: Next year, the Commission will adopt a white paper on transport policy, which will propose a series of measures intended in particular to remove the remaining obstacles identified between national systems of transport. No. 10: Before 2012, the Commission will look into the feasibility of an initiative on the ecological footprint of products to address the issue of the environmental impact of products, including carbon emissions. The initiative will explore possibilities for establishing a common methodology to assess and label them. No. 32: The Commission will launch a consultation with the social partners (key labour and business representatives) in order to create a European framework for the advance planning of industrial restructuring.

Ireland's Green Party, the junior partner in the country's governing coalition with centre-right Fianna Fail, has announced it is to pull the plug on the alliance, calling on the government to announce elections in January.

However, despite misgivings, most party members were won to the side of sticking with the coalition by the party leadership's argument that it would be better to stay in and deliver on some of the party's policy hopes than be outside. In a vote over backing an agreement for government with Fianna Fail, 85 percent of members endorsed the party leadership's strategy. The leading opposition parties, the centre-right Fine Gael and centre-left Labour - on track to form a coalition after any election - offer a virtually identical response to the crisis to the government. On Monday afternoon, Fine Gael leader Enda Kenny made a fresh call for immediate elections.

The European Commission has today published a Communication on "the Common Agricultural Policy (CAP) towards 2020 – Meeting the food, natural resources and territorial challenges of the future". The reform aims at making the European agriculture sector more dynamic, competitive, and effective in responding to the Europe 2020 vision of stimulating sustainable growth, smart growth and inclusive growth. The paper outlines three options for further reform. Following discussion of these ideas, the Commission will present formal legislative proposals in mid-2011

The European Commission has announced reform proposals for the EU's common agriculture policy (CAP), emphasizing the need for greater environmental protection with less divergence in payments between 'old' and 'new' member states. The non-legislative plans, which contain three options ranging from a limited to a more radical overhaul of the CAP, also call for an upper limit on the size of direct payments to individual farms.

Environmental groups broadly welcomed the greener focus, but cautioned that meaningful improvement would depend on the detail of concrete legislative proposals, expected from the commission in mid-2011. "The test of whether this is a breakthrough in farm subsidy support or mere window dressing will be whether environmental eligibility criteria are set at a higher level than what good agricultural practice says farmers should be doing anyway," said Tony Long, director of WWF's European Policy Office. Some groups reacted angrily to the proposals, including the EU farmers' union, Copa-Cogeca. "The only concrete proposal in the paper is to add more costly burdens onto EU farmers," said the group's president, Padraig Walshe.

The European Parliament, which has an equal say with member states in approving the final agreement, was supportive of Thursday's document, but recognised the real fight over the CAP's future shape has yet to come. "Clearly this is only the second step along what will be a very difficult road," said Scottish liberal MEP George Lyon who drafted a report outlining parliament's own views on the policy. "The real threat of big budget cuts still hangs over the whole policy debate, and the final decision on the budget will have a profound impact on the final outcome," he added.

EU foreign affairs chief Catherine Ashton has won a minor battle with the European Parliament over the issue of whether MEPs' hearings with new EU ambassadors should be held in public or behind closed doors. "Mr Albertini has agreed that all the hearings will be in camera. We are now working out the timing with the Afet committee and we hope that these hearings will take place as soon as possible," Ms Ashton's spokesman, Darren Ennis, told EUobserver on Thursday (18 November), referring to Italian centre-right MEP Gabriele Albertini, who heads-up the assembly's foreign affairs body.

"We hope obviously the members of the committee respect the rules that have been agreed. These are not Congressional-style hearings. She is the appointing authority. These people have been appointed by the high representative/vice president [Ms Ashton] and they will take up their posts - that is not in question," he added. EUobserver understands that the hearings are to take place in late November and early December and are to involve the new EU envoys to China, Georgia, Japan, Lebanon and Pakistan. Any hearings with future EEAS envoys are to follow the same format.

When EU enlargement commissioner Stefan Fule hands his 'questionnaire' over to the Serbian authorities during his visit to Belgrade next week, the recipients may wish to take a step back and reflect carefully before they sit down to formulate their responses. Serbia's replies to the list of questions will largely determine the European Commission's assessment of the country's readiness to become an EU candidate, and a few 'wrong' answers on Kosovo could easily compromise the process.

Either the European Commission or the Council of Ministers could advise against granting Belgrade candidate status or the decision could be put on hold until Belgrade has clarified contested positions, according to EU officials dealing with Serbia. The questionnaire itself is 'status neutral' regarding Kosovo, and takes into account UN Resolution 1244, which set up an international military presence in Kosovo in 1999. "Serbian answers should be status neutral and respect UN Resolution 1244 as well," an EU member state diplomat told WAZ.EUobserver. "That means Serbia will not be forced to recognise Kosovo's independence in the questionnaire but Belgrade should accept in the answers the reality that Kosovo is not under Serbian sovereignty or control."

"Some important EU countries have already signalled they will veto Serbia's candidate status if Belgrade tries to use the questionnaire to affirm sovereignty and territorial integrity in Kosovo," an EU diplomat warned. A positive opinion by the commission is usually essential for an aspiring country to become an official candidate. The only exception so far has been Greece, which became a candidate in spite of a negative assessment by the Brussels-based executive.

Bulgaria and Romania's accession to the Schengen area and Croatia membership of the European Union are among the top priorities of the incoming Hungarian EU Presidency, government officials told EurActiv in Budapest ahead of the executive's official visit to the European Commission on Wednesday (17 November).

Hungary will assume the EU presidency for their first time in January 2011. Budapest is keen to do well, especially on EU enlargement, which could impact upon the sizeable Hungarian minorities who live beyond national borders.

The enlargement of the Schengen area to include Romania and Bulgaria is on top of the presidency's agenda. However, the admission date of March 2011 "is likely to be delayed," admitted a Hungarian government official. Nevertheless, the presidency will work to help facilitate the accession of both Southern Balkan countries to the area of free movement of citizens within the EU.

Ireland's fiscal sovereignty was hanging by a thread late on Tuesday evening (16 November) as eurozone finance ministers announced that EU and IMF overseers were to head to Dublin to supervise preparations for a fresh round of cuts for the next four years to ensure that they are as deep as necessary. Print Comment article Dublin appeared to stand up to massive pressure from the European Central Bank and other countries that use the euro, particularly Spain and Portugal, to sign up to a bail-out, with Taoiseach Brian Cowen announcing to the Dail, the country's parliament, that the debt-addled country will not apply for assistance.

Earlier in the afternoon, the Wall Street Journal reported that finance ministers were in fact looking at a dual package of between €45 and €50 billion to bail out Irish banks and a broader sum of €80 to €100 billion to shore up the country's public finances, quoting unnamed sources. One contact close to the discussions told EUobserver they "could neither confirm nor deny" the report, while another said the numbers in the Wall Street Journal article "are not a figment of anyone's imagination." In such a situation, reported the WSJ, the IMF would chip in about half the aid that the EU and the UK together would provide. The non-eurozone UK is reportedly under pressure to contribute to any deal, given the heavy exposure of British banks in Ireland, particularly RBS, although Prime Minister David Cameron has recently voiced support for the idea of bilateral financial support for its one-time colony. Shares in UK financial institutions have slid over the past week as a result of the tumult.

The Bulgarian deputy prime minister, who is also the country's finance minister, appears to have let the cat out of the bag on the date of an Irish bailout, telling Bulgarian reporters on Wednesday (17 November) that despite Irish insistence to the contrary, he expects a package will be cobbled together some time next week. Print Comment article "I expect a bailout decision to be taken within a week," Simeon Djankov said at a small briefing following a meeting of EU finance ministers, after reporters asked about the European Commission, European Central Bank and the International Monetary Fund's upcoming mission to Dublin.

Meanwhile, details on the composition of the EU-IMF troika team, who in effect, through their mission to oversee Irish austerity and budget plans will maintain a degree of authority over the elected government of Ireland, are being kept secret. The European Commission, the IMF and the ECB will not release the names or backgrounds of those involved or even the number of officials in the team other than to say, according to EU economy spokesman Amadeu Tardio: "There will be more than two but fewer than 10 people going."

A last attempt to reach an agreement for the 2011 EU budget failed on Monday (15 November) due to reluctance by member states to grant MEPs extra powers in future multi-annual budget negotiations. The EU commission will now have to draft a new proposal, while the first months of next year will be funded on the basis of the 2010 budget.

The final collapse was mainly due to disagreements over procedures and extra powers granted to MEPs under the Lisbon Treaty, the EU's new rulebook. Junior ministers from Britain and the Netherlands insisted that the only issue on the table was the budget for 2011 and declined to discuss contentious issues for the long-term budgetary perspective, such as raising more EU "own resources" through supplementary taxes or the "flexibility" of the budget when unexpected expenses arise. Shortly after announcing €95 billion in domestic budget cuts, Britain has spearheaded demands for next year's EU budget to stay frozen at 2010 levels or go up by a mere 2.9 percent, or less than half the MEPs' original request.

Serbia has capacity to precisely and in detail answer the EC questionnaire, EU Enlargement Commissioner Stefan Fuele has assessed. Stefan Fuele (Beta, file) He told Belgrade-based daily Večernje novosti that the questionnaire, which should be sent to Serbia in late November, would cover the entire EU policy. Fuele said that the EC would like to submit its unbiased analysis on Serbia’s readiness to begin accession negotiations in the second half of 2011. “The questionnaire will be very similar to the one which was sent to Montenegrin and Albanian authorities as a part of preparations for EC opinion for these two countries. Some questions will be specific for Serbia and its reality,” the EU enlargement commissioner explained.

Hague cooperation – key condition for EU When asked if Serbia’s cooperation with the Hague Tribunal could disrupt the deadlines, bearing in mind that the EC opinion is a technical and not a political issue, Fuele said that the EC Council of Ministers had pointed out at the meeting on October 25 that both Stabilization and Association Agreement (SAA) and Interim Trade Agreement had demanded Serbia’s full cooperation with the Hague Tribunal.

Turkey's chief negotiator on EU accession, Egemen Bagis, has joined in the country's backlash against a European Commission report which criticised its blockade of Cyprus and laid out a laundry list of civil liberties shortcomings. Mr Bagis in a written response to EUobserver's questions on Wednesday (10 November) accused the EU of not doing enough to help end the isolation of Turkish Cypriots, of "irrationally" blocking talks on energy co-operation and of "hiding" its real reasons for the slow pace of accession behind Cyprus.

The 104-page-long commission report, out on Tuesday, urged Ankara to open up its ports and airports to Cyprus unilaterally. It painted a picture of Turkey as becoming increasingly wealthy and liberal. But it said the constitutional reform process has not gone far enough and noted that the situation for journalists, women and gay people looks distinctly un-European on the other side of the bloc's southern border. Reporters in Turkey can still face criminal proceedings for the archaic offence of "insulting the Turkish nation." A tax case against the government-critical Dogan Media Group has spooked journalists into self-censorship. And videos making fun of Ataturk, the founder of the Turkish Republic, saw YouTube pulled off the wires for over a year and a half. The situation looks good for women on paper. But in practice so-called "honour killings" are up, early and forced marriages "remain serious problems" and tens of thousands of girls in eastern and south-eastern regions are out of school. In school "textbooks still contain stereotypes about women's role and status." Meanwhile, the Turkish establishment promotes intolerance against gay people. The EU Commission noted that the minister for women publicly called homosexuality a "disorder" while the army calls it as a "psychosexual illness." The negative climate has seen killings of transvestites and transsexuals; police beatings of transgender activists; people losing their jobs for being gay; and authorities punishing gay people under bylaws on "offences against public morality."

Fresh turmoil in the Irish and Portuguese debt markets has reignited the eurozone's fiscal crisis, with record borrowing costs in the two states sparking bail-out expectations and concerns over possible contagion. Irish borrowing costs on benchmark 10-year bonds jumped half a percentage point to a euro-era record of 8.64 percent on Wednesday (10 November), a weighty 6.19 percent higher than their German equivalent.

The dramatic rise followed a sell-off of Irish bonds by investors after LCH.Clearnet – one of Europe's biggest clearing houses – upped the amount of deposit it requires on all Irish positions to 15 percent. Ireland's debt is now judged to be as risky as Greece's this spring when member states scrambled to agree a bail-out for Greece, with Lisbon also forced to pay record amounts during a bond issuance on Wednesday.

When UN made new Kosovo related decision on September 2010 it was believed that resolution would enable a dialogue for resolving this frozen conflict. With minimal preconditions new direct talks between Belgrad and Pristina and a possible deal between local stakeholders could open the way for sustainable solution. However resent events have have resulted in stalemate: President of separatist Kosovo government resigned and dissolution of the government itself have put the focus in Kosovo on next elections which will be held in December 2010. Meanwhile also Serbia starts soon preparations for its next next elections, due by spring 2012. Thus there is a narrow negotiation slot between the time when a new Kosovo government takes office and to end successfully before the Serbian election campaign makes any compromise impossible. The core question is if there is political will to start talks with the aim of reaching as comprehensive a compromise settlement as possible.

Poland's top farm official has slated the EU's agricultural policy, or CAP, as "two-speed" and common "only in name," calling for a new system with reduced direct payments for farmers and increased money to help restructure the sector. Speaking to journalists on Monday (8 November), Marek Sawicki from Poland's conservative Peasant Party also threw his support behind one option outlined in next week's European Commission proposal on CAP reform, and slammed the contents of a recent Franco-German position paper as purely "cosmetic."

Direct payments for farmers in newer member states are strongly linked to farm size, while those in the EU15 countries receive funds calculated using a complicated system that takes into account historic stock or crop levels. This has resulted in huge variations in direct payment sizes, with per-hectare payments for Polish farmers amounting to roughly €150, compared with while €300 for French farmers.

"It is no secret that at the moment we have two speeds in Europe. There are old and new member states and they move at different speeds," he added. "There's 27 different common agricultural policies, but only the name is common." To balance this out, Mr Sawicki wants direct payments for farmers in all member states to be reduced in size, while EU funding under the policy's 'rural development' pillar should be increased. Payments for Polish farmers are already split roughly evenly between the two funding channels.