David Cameron, UK prime minister, has been loudly campaigning for a crackdown on EU migration in an effort to curb the influx of workers from poorer member states to Britain.
But on Monday, the Tory-led government tried to block key amendments to EU legislation that seeks to do exactly that: reduce the inflow of workers from central and eastern Europe to wealthier member states.The so-called “posting of workers directive” was agreed by member states in 1996 to make it easier for EU workers to carry out work outside of their home country for a limited period of time.
But a number of countries led by France, Germany and Belgium have over the years complained that the directive was being used inappropriately to undercut local labour rules in richer countries. Essentially, workers from poorer countries offered their services at below market prices without asking for any social security contributions. Read more
Demonstrators in Berlin protest against alleged US spying activities in July.
In today’s dead-tree edition of the FT, we report on a draft of a stinging report the European Commission will issue Wednesday which could send shock waves through the US tech industry: unless the Obama administration changes the way it handles online data of European citizens, American companies like Google and Facebook will have to find another way to do business in the EU.
Given the importance of the Commission’s review of the 13-year-old “safe harbour” agreement with the US – which allows American firms to operate in Europe under US privacy rules because of an assumption that Washington treats the data similarly to European governments – and the fact we got our hands on it before its official release, we thought Brussels Blog readers might be interested in a bit more detail about the Commission’s findings. Read more
Viviane Reding, the EU’s justice commissioner, triumphantly claimed that “data protection is made in Europe” after a committee of European lawmakers reached a compromise agreement yesterday to overhaul the bloc’s pre-internet privacy rules.
But for those who have not been following the EU’s data protection process closely, particularly in the wake of the ongoing NSA spying scandal, Ms Reding’s declaration of victory may have seemed a little premature. Read more
Reding, far left, and Orbán, second from right, during a 2011 Commission meeting in Budapest.
For Viviane Reding, it appears that any opportunity to step into a hornet’s nest is a good one. This time around, the media-savvy EU justice commissioner has seriously upset the Hungarian government after she questioned the independence of the judiciary in the EU member state.
Budapest didn’t appreciate Reding’s remarks, prompting a tart letter from Tibor Navracsics, Hungary’s deputy prime minister in charge of justice affairs, which called her assertions “outrageous and absolutely unacceptable” and requesting she “kindly refrain from making public statements that lack sufficient grounds as well as general benevolence”.
Both Reding’s remarks and the full text of Navracsics’ letter after the jump… Read more
European leaders arrived in Brussels on Thursday for a summit where the intensifying debate over the austerity-led response to the eurozone crisis was moving to centre stage even though the gathering was not expected to change the EU’s economic policy course.
Finland’s prime minister Jyrki Katainen is standing firm. As he arrived in Brussels on Thursday the 41-year-old centre-right leader made it clear Europe had to maintain the tough austerity course if it wanted to survive.
In a thinly veiled jibe at Nobel prize-winning economist Paul Krugman, who criticised the pro-austerity policies set by the European Commission’s economic chief and fellow Finn Olli Rehn, Katainen said that the debate around austerity versus growth might have academic value, but it has little value for common people.
“There are no shortcuts to creating new jobs and growth in a sustainable manner. Structural reforms might not bear fruit overnight, but are the best sustainable economic stimulus. Accumulating excessive debt is not,” said Katainen.
He added: “The future of our common currency can be guaranteed only if each member state keeps its fiscal house in order and takes the jointly agreed rules seriously.”
After the jump, you can find the Finnish leader’s full remarks: Read more
José Manuel Barroso, president of the European commission, attacked EU member states for failing to implement growth measures that could balance the short term negative impact of harsh austerity policies imposed due to the eurozone’s sovereign debt crisis.
“Very frankly I am not happy with the progress made so far,” said Mr Barroso ahead of the EU summit. “Unfortunately we see little willingness on some of our governments to ensure appropriate funding for key instruments to help to offset the negative social impact of the crisis.”
Mr Barroso’s comments were followed by harsh criticism from the head of the EU’s largest trade union, who accused European governments of destroying the continent’s social welfare system. Read more
Peter Spiegel is the FT's Brussels bureau chief. He returned to the FT in August 2010 after spending five years covering foreign policy and national security issues from Washington for the Wall Street Journal and the Los Angeles Times, focusing on the wars in Iraq and Afghanistan. He first joined the FT in 1999 covering business regulation and corporate crime in its Washington bureau, before spending four years covering military affairs and the defence industry in London and Washington.
Joshua Chaffin is one of the FT's EU correspondents, covering areas including policies on trade, the environment and energy. He has worked in the FT's Brussels bureau since late 2008 and before that was an FT correspondent in New York and Washington DC.
Alex Barker is EU correspondent, covering the single market, financial regulation and competition. He was formerly an FT political correspondent in the UK and joined the FT in 2005.
James Fontanella-Khan is FT's Brussels correspondent, covering media, telecom and internet regulation as well as justice, employment and social affairs and its impact on eastern Europe. He was formerly an FT correspondent in India. He joined the FT in 2006.