From our foreign affairs blog:

Welcome to our continuing coverage of the eurozone crisis. All times are London time. Curated by Esther Bintliff and John Aglionby on the world news desk in London, with contributions from FT correspondents around the world. This post should update automatically every few minutes, but may take longer on mobile devices.

13.45: Following our Shakespeare competition earlier in the week, it’s time for another foray into the world of literary metaphor, courtesy of former Fed staffer Ed Yardeni, now of Yardeni Research. Ed has traditionally been one of the market’s biggest bulls. Now even he seems to have turned bearish…

Just read the latest version of Sarko’s “European pact on immigration“.

To recap, this is his plan for European countries to bring their immigration policies closer together. EU interior ministers broadly backed the measure at their meeting in Cannes on Monday.

But it’s hard to see how the pact – which has already been watered down - will actually change things.

At heart, the plan (which isn’t legally binding)  calls for improved frontier controls, effective removal of illegal entrants and better organisation of legal immigration. Sure – but the EU has said this sort of stuff on multiple occasions.

Yes, the union has made strides on common rules, for example abandoning internal border controls across much of Europe and agreeing to harmonise asylum standards.

Yet progress on unified immigration policies is often slow and becomes mired in spats between member states. 

Immigration is one of the most nebulous topics here in Europeville, with differences in countries’ geographic, demographic and economic situations making agreement on common rules tricky, to say the least.

These factors, and varying traditions and political stances towards immigration, complicate matters yet further.  For example, the EU has tried for ages to agree on a “bluecard” scheme to attract skilled workers, but has yet to succeed.

Sarko owes his election victory last year in part to his tough stance on immigration. However, France’s own domestic proposal to establish immigration quotas is in disarray after an independent commission set up to look at the question concluded that they were unworkable.

And the French president may yet find that progress on his goals for Europe is slower and more cloudy than hoped.

An EU survey sheds more light on the decisive “no” vote in Ireland’s referendum on the union’s Lisbon reform treaty.

The study shows that those who voted against did so because of; a lack of knowledge of the treaty; a desire to protect Irish identity and safeguard neutrality; a lack of trust in politicians; the potential loss of a permanent commissioner in Brussels and to protect the tax system.

The word “protection” stands out here. How deep is the European public’s suspicion that Brussels encroaches too far into everyday life?

Consider some of the European Commission’s recent events. There’s bread and butter work such as reporting on public finances and pursuing postal market liberalisation.

But then there are softer activities – such as efforts to increase children’s fruit and veg intake, measures highlighting diversity - which you’d think would be left solely to member states.

Is this institutional creep? Could Brussels spend its time better on other matters?

Voters can throw out their government if they feel that it has gone too far. Give them a referendum on an EU topic and they’re also likely to make plain their irritation with Brussels. 

A big and rather heavy parcel arrived in the Brussels office last week.

It contained three weighty tomes – including Norman Davies’ 1,365 page work ”Europe a History.” Also in the box were three discs, two large, glossy picture books and two brochures – all linked to the western Polish city of Wroclaw.

The package came from Poland and promotes the city, which is vying to host a new EU agency – the European Institute of Technology.

Evidently, national pride and political prestige is at stake when choosing the location of new EU bodies (countries are due to decide on the EIT this week).

If a country secures an EU agency, politicians can tell voters that they won something for them in Brussels. This is even though the EIT concept has been much watered down, under pressure from big, rich member states such as the UK, and the headquarters will employ just 60 people.

Brussels hopes that the institute will turn more high-tech discoveries into money-spinning products and help Europe close the innovation gap with rivals such as the US and Japan.

Poland is competing with Spain, Hungary and an Austrian-Slovak alliance to house the EIT. The chosen area will hope to gain fresh investment, as well as boost its high-tech industry credentials.

All the candidates have lobbied in Brussels ( you wonder how many of these Polish packages have been sent).  Barcelona’s bid gave ministers and diplomats an iPod with videos of its site.

The campaigning reminds me of a Finnish-Italian spat in late 2003 over the location of a new EU food safety agency. Here’s a teaser from the story that my colleagues wrote at the time…

Plans for the location of a dozen new European agencies have stalled, thanks to an epic tussle involving the merits of Parma ham.

Matti Vanhanen, Finnish prime minister, vowed this week to block a deal on the siting of the European Union bodies covering areas from satellites to police training – until he resolves a battle with Italy over a new food safety agency.

The dispute has become a question of national pride, with Mr Vanhanen insisting his country has the perfect facilities for the food agency.

But Silvio Berlusconi, Italian prime minister, has blocked the transfer of EU staff to Helsinki for almsot two years,  claiming the agency should be based in Parma.

“The Finns don’t even know what prosciutto is, “Mr Berlusconi famously stormed at a summit in 2001.

Read more here.

Italy won the agency, by the way…

Who will feature in the next European Commission, to take office in 2009?

Well, for starters, it is widely thought that José Manuel Barroso wants a second term running the show. So how does the Portuguese liberal re-apply for his own job?

A first task, as one diplomat told me, is for Barroso to leave a legacy from his existing term in office. Prodi, the previous president, oversaw the “big bang” enlargement of the EU to take in 10, mostly ex-Communist member states. Delors’ crowning achievement was the creation of the single market. Will Barroso’s legacy be his controversial legislative efforts to counter climate change?

Barroso was appointed to his job in 2004 after emerging as a compromise candidate, and many assume that Merkel, Sarkozy and Brown, the current crop of leaders in big EU power centres, will continue to back him.

But is that enough? He’ll certainly help his cause by bolstering his “social” credentials. After all, Barroso has faced persistent claims that he’s failed to deliver enough in this area – see this open letter from Martin Schulz, leader of the socialists in the European parliament. So it’s interesting to learn that the Commission plans to unveil a big “Social Agenda Plus” package in June.

Barroso must surely still be haunted by the mess that marked the start of his administration in 2004, when he was forced to withdraw his original team rather than it face certain rejection by members of the parliament. Underlining that his is a social Commission, and that he is a leader for all, would certainly help his cause in the chamber and beyond.

The daily press briefing at the European Commission’s star-shaped Berlaymont HQ in Brussels is an event rarely noted for its humour.

Yesterday’s menu, for example, included questions to the Commission on the subjects of organised crime in Bulgaria, a court judgment on Sweden’s alcohol taxation rules, the Macedonian elections, and Greek asylum policy, among others.  

So you might see why a bizarre exchange yesterday between journalists and a spokesperson over the age of a new, female commissioner was rather out of the ordinary.

A reporter said that she was writing a profile of Androulla Vassiliou, the new Cypriot commissioner responsible for health policy, and had failed to find out her exact age from her office.

In fact, the journalist said that she was told that it was very rude to ask the age of a Cypriot commissioner, but that she could say that Mrs Vassiliou was “around 65″

The spokesperson’s response at the podium was that it was indeed rude in the commissioner’s culture to ask a woman’s age.

Next came a brief exchange about whether the answer could be found on the commissioner’s online CV – it couldn’t as of Tuesday night- and if the reluctance to disclose Mrs Vassiliou’s exact age was in line with the Commission’s transparency rules. 

Tricky. 

Can national cultural mores be transported to Brussels, capital of the 27-country Europe?

Do we need to know a commissioner’s exact age? What difference does it make that, in this case, the commissioner is female? 

And does the public have a right to know such details about EU officials who make big decisions over European citizens and industry?

A colleague visited recently from the FT’s London mothership, and a few of us took him out to sample some hearty Belgian fare.

Over his beer and stoemp (bangers and mash, Belgian-style) he asked who in the Brussels machine was the ultimate dinner party guest. A member of the European parliament, a national ambassador to the EU, or a European commissioner?

The consensus was that with Brussels dancing to the beat of the European Commission (the EU executive), commissioners were at the top of the pecking order.

Granted, not all commissioners’ roles are equal. Holding the EU education and training portfolio (where the union has only a small role)  hardly has the same cachet as, say, the competition supremo job which gives Neelie Kroes, the incumbent, the power to take on companies such as Microsoft.

But now this Commission has entered its final year and a half, and some of its members have already jumped ship. Markos Kyprianou, formerly health commissioner, has returned to Cyprus to become its foreign minister. Franco Frattini, justice commissioner, is on unpaid leave to participate in this month’s elections in his native Italy.

In many ways, continental Europe is increasingly an area without borders (viz the euro single currency, cheaper cross-border mobile phone calls, the enlarged passport-free travel zone).

But not everything works seamlessly.

I thought about this because of a fascinating story (warning – this is quite a large PDF file, but it has great pics) in the Bulletin, an English-language magazine in Brussels, on the subject of joined towns on the Belgo-Dutch border.

The story on Baarle-Hertog and Baarle-Nassau highlights the quirks of residents’ lives as they constantly flit across two countries.

It details how the frontier runs through houses, shops and restaurants. People also have to grapple with varying tax systems, closing times and speed limits.

Apparently, women are able to choose the nationality of their child depending on the location of the room in which they give birth.

The story highlights this sad case: a body was discovered in a house on the border. Police from both sides had to cooperate to be certain that they didn’t encroach on the other’s territory, leading to evidence becoming invalid.

If you want to know more about the towns’ unusual situation, read this lively story, written in 2004 when the EU undertook its “big bang” enlargement.

The most fun stories to cover from Brussels are usually those about big, messy fights. And such scraps are all the juicier when Viviane Reding, pugnacious EU telecoms chief, is involved.

For a start, she sparks robust and outspoken responses from the industry.

Belarus is better for business than Brussels,”a top telecoms executive claimed last week in connection with Reding’s most recent efforts to cut mobile phone fees.

This reminded me of an attack on Reding in 2006, when she revealed legislation to cap lucrative roaming charges: one operator likened the proposal to central planning in the ex-USSR.

Here was Brussels bringing a law that not only commanded popular support but also, rarely, won rave headlines in Europe’s most eurosceptic media. The Luxembourger took on the industry (companies such as Telefonica, Vodafone and more), and won, forcing them to slash the price of overseas mobile calls.

Evidently, the success emboldened her. Victory seems to be everything for Reding, a journalist-turned-politician who outfoxed heavyweight colleagues in the European Commission to pass the legislation.

But now she is fighting on multiple fronts in the fast-moving telecoms sector. With only a year or so left on the legislative timetable before the European parliament’s elections, her battle plan is hard to predict.

At the top of her to-do list is a drive to force operators to cut the fees they charge customers to send text messages and use mobile internet while abroad.

This seems a politically irresistible quest, especially when you see stories like this: “A couple have been hit with a bill of £11,000 after downloading four episodes of the sitcom Friends via a mobile phone.” Some operators have already reduced charges as a result of Reding’s call for action.

At the same time, Reding also seeks to re-write the telcoms rulebook, bigtime. She wants to establish an EU telecoms authority who wants a new EU uber-agency, (but what exactly would it do?) liberalise radio spectrum and boost Brussels’ powers over the telecoms sector. Oh yes, she’s also trying to give national authorities the right to break up some of Europe’s biggest telecoms companies.

Reding wants everything: no wonder the telcoms industry is bridling in response. It’s too early to know what she will win, and what she’ll lose in her quest to leave her mark. But there’ll be fights galore along the way.


			

An intriguing development here: it looks as if Britain has been cornered in a fight to settle two hugely controversial EU labour rules.

This would be more bad news for Gordon Brown, and infuriate some British employers.

To them, these laws  – one on temps’ rights, the other on the maximum working week – are a pet hate, a sign of Brussels meddling in the UK’s flexible labour market.

But many countries are keen to get agreement on the rules, which are stuck in a legislative deep freeze after years of delays.

If the plan – put forward this week by the Portuguese EU presidency – goes through, the UK would have to compromise on one of the laws.

Brussels blog

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This blog covers everything from the European Union's foreign and economic policies to the fortunes of its political leaders - as well as the more light-hearted aspects of life in Europe.


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Contact the Brussels blog team: Peter Spiegel, Joshua Chaffin, Alex Barker and Stanley Pignal.

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The Brussels blog authors

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.

Stanley Pignal is Brussels correspondent for the Financial Times, covering EU justice, home affairs, social developments, telecoms and the Benelux region. He joined the bureau in January 2009, having previously worked for the FT as a corporate reporter in London.

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