Van Rompuy and Ashton: big enough for the big EU jobs?

November 19th, 2009 5:09pm

So it looks as if it is to be Herman Van Rompuy, Belgium’s prime minister, as the full-time president, and Catherine Ashton, Britain’s EU trade commissioner, as the foreign policy supremo.  This is the culmination of eight years of efforts, starting with the EU’s Laeken Declaration of 2001, to reform the bloc’s institutions and give the EU a more dynamic world profile.

Carl Bildt, Sweden’s foreign minister, thinks the EU had a historic opportunity in its grasp and flunked it - at least as far as the full-time presidency is concerned.  The British government itself was saying more or less the same thing until tonight.  It was adamant that the EU needed a big-hitter as president to convince the rest of the world that the EU was going places.  Now it has participated in a classic EU trade-off that has produced exactly the result it said would be no use to anyone.

But the British are no more complicit in these decisions than the French, the Germans and everyone else.  Fernch President Nicolas Sarkozy switched his support to Van Rompuy from Tony Blair, the ex-premier of the UK.  Germany, conscious of its traditional role as an ally to the EU’s smallest countries, never really wanted Blair in the first place.  And in many ways, they were right about Blair - but for the wrong reasons.  He came with an awful lot of baggage - not just the Iraq war, but the way his actions too often failed to match his words when it came to Britain’s national neurosis over the EU.

So perhaps the real difficulty was that no other “big-hitter” put forward his or her candidacy for the presidency.  We had, as far as I recall, someone from Luxembourg, someone from Estonia, someone from Latvia, someone from Ireland, someone from Finland…  No Frenchman, German, Italian or Spaniard was ever mentioned for the EU presidency.

Wise EU heads always said that the presidency would be defined by the first person who held the job.  Well, now we know.  Intelligent, civilised, modest, with a calming sense of humour - a consensus-builder and an organiser.  Good qualities.  But has the EU been ambitious enough?

Van Rompuy-Brit combination would signal EU disunity on Turkey

November 19th, 2009 3:14pm

The sun is shining in Brussels and the sky has an unseasonably blue, cloudless, late-November-in-Rome quality as European Union leaders make their way here for the summit of summits - the event where they will choose the EU’s first full-time president and new foreign policy chief.  I wonder if the weather will be so fine when the leaders finally drag themselves away from the negotiating table after what is shaping up to be a night of relentless hard bargaining.

By general consent, the frontrunner is Herman Van Rompuy, the amiable, haiku-writing Belgian prime minister.  Even a speech he gave in 2004 that reveals him to be an implacable opponent of Turkey’s entry into the EU (Turkey has been an official candidate for the past four years) doesn’t seem to be doing Van Rompuy any harm.  Well, why should it?  It fits in perfectly with the views of French President Nicolas Sarkozy and German Chancellor Angela Merkel.

It has been clear for the past week that Merkel and Sarkozy would be perfectly happy to put Van Rompuy in the presidency.  Yes, he is almost unknown outside Belgium.  Yes, it is hard to see President Barack Obama or President Hu Jintao taking him entirely seriously.  Yes, he is no Tony Blair.  But he will be good at building consensus among EU governments.  He will be good at organising the work of the European Council.  And that is what France, Germany and many small EU states want.

The question is whether the UK, seething with fury at Sarkozy’s betrayal of Blair and impatient with Germany and the rest for insisting on a president from a small country, will block Van Rompuy.  If the UK does, a third candidate will get the job - and, frankly, it is anyone’s guess who it will be (except that I cannot imagine it will be Luxembourg’s Jean-Claude Juncker, because the UK and France share a distaste for him).

What many countries, including Germany, hope is that Prime Minister Gordon Brown will chill, accept Blair has no chance, and then accept the job of foreign policy high representative for the UK.  It is there for the British if they want it - that seems to be the message from most of Europe.  The obvious choice is Foreign Secretary David Miliband, but lately he’s been ruling himself out. 

I’ll tell you what, though.  Miliband and other potential British candidates are all strong advocates of Turkish entry into the EU.  So we could end up with a EU president (Van Rompuy) and a EU foreign policy chief (a Brit) who disagree on a fundamental aspect of the EU’s foreign relations.

What an excellent recipe for a united Europe.

FT video: Christine Lagarde

November 17th, 2009 11:16am

The winner of this year’s FT ranking of European finance ministers, France’s Christine Lagarde, talks about tackling the economic crisis.

Continue reading "FT video: Christine Lagarde"

Sarkozy’s lecture to the Visegrad Four will fall on deaf ears

November 12th, 2009 11:20am

There are all sorts of threats to the European Union’s unity, but something tells me that the biggest threat isn’t the Visegrad group.  This appears to be a view not shared by President Nicolas Sarkozy of France.

Speaking after the October 29-30 EU summit in Brussels, Sarkozy criticised the fact that the leaders of the four Visegrad countries - the Czech Republic, Hungary, Poland and Slovakia - had held a pre-summit meeting to co-ordinate their positions.  “If they were to meet regularly before each Council, that would raise some questions,” Sarkozy said.

Would it, really?  When I put this question the other day to a high-ranking official from a Visegrad country, he replied with a Sarkozy-like grimace on his face.  The Visegrad group was, he said, as harmless as other EU regional subgroups, such as the Nordic trio (Denmark, Finland and Sweden), the Benelux countries (Belgium, Luxembourg and the Netherlands), the Iberians (Portugal and Spain) and Club Aristotle (Cyprus and Greece).

In truth, the most curious thing about the Visegrad group is that it still exists.  No sooner had it been set up in 1991 after the fall of communism than, like some mysterious mitteleuropäisch cell, it mutated from three members into four with the break-up of Czechoslovakia.  It held together largely because of the belief that strength in solidarity would accelerate the integration of the four into western security and economic structures - the EU and Nato.

But the strains inside the group have never entirely gone away.  Poland, the biggest member, tends to see itself as a kind of big brother, with a wider view on the world than the rest.  The Poles no longer want to be treated in the EU as a mere regional player, a country defined by its proximity to places like Belarus and Ukraine.  They want to be at the top table, next to France, Germany and the UK.

The Czech Republic tends to be regarded as the smarty-pants of the four, a perception reinforced by the Czech EU presidency in the first half of this year.  The Czechs spent an awful lot of time telling everyone how they were superior to their neighbours, because their far-sighted policies had enabled them to escape the worst of the financial crisis.  This know-all attitude didn’t exactly endear them to their EU partners.

Slovakia had a bad reputation in the 1990s because of the misrule of Vladimir Meciar, the former prime minister.  But it then transformed itself so fast that it is now the only Visegrad country in the eurozone.  However, there are continuing tensions over Slovakia’s ethnic Hungarian minority.

Hungary was hit hardest by the financial crisis.  Its neighbours gave Hungary the cold shoulder in February when the government in Budapest proposed a €180bn emergency aid programme to recapitalise the banking systems of central and eastern Europe and reschedule foreign currency debt.

This in itself is proof, if any were needed, that Sarkozy’s suspicions are exaggerated.  But then again, French opinions about the EU’s former communist countries have a rich history.  After all, who was it who told the central and eastern Europeans at the start of the Iraq war that they had “missed a good opportunity to shut up”?

Step forward, ex-president Jacques Chirac.

Europe not in the mood to thank Cameron for his EU speech

November 5th, 2009 9:20am

The distance separating Britain’s perceptions of the European Union from those of its Continental partners is so vast that the English Channel might as well be the Pacific Ocean.  This was my first thought when I read not just David Cameron’s speech on what steps a future Conservative government would take to limit EU involvement in British affairs, but also the way the speech was reported and the reactions on each side of the Channel.

The Financial Times story, for instance, said Cameron’s speech set out “a very limited programme for European reform” - an interpretation which would raise howls of laughter across much of Europe, where the Conservative leader’s proposals are not viewed as “very limited” and are most definitely not seen as an effort at “reform”.

The view in Conservative circles seems to be that the rest of Europe should thank Cameron for not backing calls from his party’s anti-European fundamentalist elements for a referendum on the EU’s Lisbon treaty (which will be in force if and when the Tories take office), and for swearing that he is not itching for a “Euro-bust-up” if he becomes prime minister.  All this, we are asked to believe, amounts to level-headed, practical statesmanship in the grand Tory tradition.

In mainland Europe it is seen as nothing of the sort.  Elmar Brok, the German Christian Democrat and foreign affairs expert, pointed out that the changes Cameron wants to the UK’s status in the EU could not just be granted with the wave of a wand.  All other 26 member-states would have to agree, and if there were the slightest risk that this might mean reopening the Lisbon treaty, the reaction in France, Germany and many other countries would be negative in the extreme.  But even if it didn’t mean that, the general view would be that the Tories were dragging the EU back into institutional arguments that have inflicted tremendous damage over the past decade on the bloc’s reputation, self-confidence and ability to focus on the policy issues that matter.

Part of the problem arises, of course, from the ease with which Czech President Vaclav Klaus got his exemption from the Lisbon treaty’s Charter of Fundamental Rights.  Less than a month after he made his demand, putting forward the ridiculous argument that Czech property owners would otherwise be under threat from revanchist Sudeten Germans, the other EU leaders rolled over and gave him everything he asked for.  No wonder Cameron and company think they can extract concessions from the rest of Europe.

Ireland, too, negotiated an elaborate text defining specific, untouchable areas of national sovereignty between its two referendums on the Lisbon treaty.  “Why not us?” think the Tories.

In the end, the Tories may get much of they want - but there will be one potential “nuclear option” at play in the future that has been absent during previous such European dramas.  This is the Lisbon treaty’s “exit clause”, under which a country can negotiate its withdrawal from the EU for good.  Let’s be clear: a country cannot be kicked out, and the EU’s emphasis on consensus and its family atmospherics make this a rather unlikely outcome.

But if Cameron - or, more likely, William Hague, his Rottweiler foreign secretary - causes the relationship to deteriorate too much, then it is certain that calls will mount in mainland Europe for the UK’s departure from the EU.  And, of course, there will be many in the Tory party - and the UK Independence party and elsewhere - who will say, “You know what? Why not?”

Blair’s EU presidency bid runs into trouble as summit starts

October 29th, 2009 5:14pm

As European Union leaders gather for their two-day summit in Brussels, the word is that the British government’s effort to have Tony Blair selected as the EU’s first full-time president is running into trouble.

Prime Minister Gordon Brown has just finished a round of afternoon discussions with other European socialist leaders, trying to persuade them that Blair deserves the job.  The talks did not go well.

Martin Schulz, chairman of the European Parliament’s socialist group, made it plain that he and many other Continental socialists didn’t want the EU presidency to go to a Briton.  The reason?  The UK is semi-detached from Europe, not in the euro area, not in the Schengen zone permitting border-free travel around the EU, etc, etc.

Moreover, the socialists think they have a better chance of getting in one of their own people as the EU’s next foreign policy high representative than as the first full-time president.  With 20 or so of the EU’s 27 governments controlled by the centre-right, they reason, national leaders are bound to pick someone from their own political family for the EU presidency.

Of course, you could argue that some centre-right leaders - Italy’s Silvio Berlusconi comes to mind - are perfectly happy to see Blair in the job.

But maybe not in France and Germany.  French President Nicolas Sarkozy and German Chancellor Angel Merkel met for dinner in Paris on Wednesday night, and word is reaching reporters in Brussels that the two leaders were lukewarm about Blair’s candidacy.  If true, that would come close to polishing him off - or, rather, it would enable him to say he had never been a candidate in the first place.

It’s the top economic jobs in Brussels that matter, stupid!

October 29th, 2009 2:21pm

The fuss over who will be the European Union’s first full-time president is obscuring the less sexy but potentially more important question of who will get the two or three most powerful jobs in the next European Commission.  A good many governments would prefer to see one of their nationals in a truly influential economic policymaking role in the Commission than occupying the EU presidency, which may turn out to be a more hollow job than once foreseen.

Commission president José Manuel Barroso says he will not nominate his new team until EU leaders have chosen their new head of foreign policy, a post that entitles its holder to a Commission seat.  Any country wanting a big economic portfolio at the Commission will therefore steer clear of putting forward a candidacy for the foreign policy job, because there is only one Commission seat for each nation.

Does this explain why the German government has proposed Günther Oettinger, prime minister of the state of Baden-Württemberg, as its next commissioner?  He doesn’t have obvious foreign policy credentials, so  the German idea is almost certainly to slot him into a top economic job.

Three portfolios in the outgoing Commission - competition commissioner, internal market commissioner and trade commissioner - stand out from the rest, because they bestow real power on their occupants.  They are the policy areas where Europe is most effective at speaking with one voice and exerting worldwide influence.  It would make sense for Germany, which was disappointed by the performance of its outgoing representative, Günter Verheugen, as industry commissioner, to want one of these jobs.

If the internal market portfolio is rejigged, perhaps in order to put a stronger focus on Europe’s response to the financial crisis, it is easy to imagine a scramble among the bigger EU countries to be put in charge of financial regulation.  France is said to be keen on getting something meaty like this (Michel Barnier, or perhaps Christine Lagarde?).  Of course, this would rule out the foreign policy position for a Frenchman - but Paris, better than most national capitals, knows which jobs in Brussels contain the beef and which the onions.

What about the UK?  The intriguing point here is that it would be extremely simple for Prime Minister Gordon Brown to quash the rumours that David Miliband, his foreign secretary, is manoeuvring to be the EU’s next foreign policy supremo.  All Brown would need to do is to announce that Catherine Ashton, the British EU trade commissioner, was being renominated to Barroso’s team.  Or Brown could name someone else.  Either way, it would instantly rule out Miliband as the head of EU foreign policy.

But Brown hasn’t done that.   It is anyone’s guess why.  But one explanation is that, with Tony Blair’s undeclared EU presidential bid far from certain of success, Brown needs other cards to play.  If Blair is the British government’s queen of hearts, Miliband is, you might say, the knave of spades.

Juncker’s EU presidential ambitions expose UK-Continental divide

October 27th, 2009 12:52pm

There can be few presidential campaigns that have kicked off with the declaration “I am not a dwarf”.  But this is what Le Monde quotes Jean-Claude Juncker today as saying in the interview in which Luxembourg’s prime minister reveals he would consider being a candidate for the European Union’s presidency “if the call came”.

I have interviewed Juncker and seen him in action more than a few times over the years, and I can confirm that he is not a dwarf - though I have heard other disparaging terms applied to him that need not concern us here.  What most interests me is the enormous gulf in perceptions of Juncker’s potential candidacy between the UK and certain mainland European countries.

In UK government circles, Juncker is seen as a non-starter for two reasons.  First, the president’s job will be to represent the EU on the world stage, especially - according to one view - when sudden crises flare up, such as the August 2008 war between Russia and Georgia.  During that conflict, President Nicolas Sarkozy of France represented the EU as the holder of the bloc’s rotating presidency, and even he - one of the EU’s true big hitters - found his negotiations with the Russians extremely tough going.  Juncker, as the leader of the EU’s 26th biggest country (population 500,000 out of a EU total of 500m), would in the British view just not be taken seriously enough as the EU’s voice in such a crisis.

Secondly, Luxembourg represents a country with a profound commitment to deep European integration, something that is anathema to the British.  It is the same objection that caused the UK to reject the candidacy of Guy Verhoftstadt, the former Belgian premier, for the European Commission presidency in 2004.

On the Continent, especially in some of the EU’s western European member-states and in certain smaller countries, Juncker is seen as an entirely credible candidate.  Members of the German Bundestag and foreign policy establishment admire him, though it is open to question whether that view is shared by Chancellor Angela Merkel.  In the end, she is the only person in Berlin whose opinion matters, since she will make Germany’s choice.

As was pointed out by Le Monde’s interviewer, Juncker appears to have fallen in Sarkozy’s estimation over the past year because of the Luxembourger’s alleged inability to rise to the occasion when the global financial crisis struck Europe.  Accurate or not, this observation prompted a smooth reply from Juncker on Sarkozy’s brilliance as the EU’s president from July to December 2008: ”Europe has never been led with such perspicacity as under the French presidency.”

I feel pretty sure that such compliments won’t ever make Sarkozy support Juncker as the EU’s first full-time president, since the French head of state’s own six months in charge of the EU gave a good idea of the kind of dynamic leadership that he thinks Europe needs.

But that probably won’t upset Juncker, since he is a canny politician whose instincts surely told him long ago that he would never get the job and that the most he could hope for would be to sabotage Tony Blair’s candidacy.

Fears grow of Sarkozy initiative to downgrade Turkey’s EU bid

October 15th, 2009 9:41am

Even before he was elected as president of France in 2007, Nicolas Sarkozy made it crystal-clear that he didn’t want Turkey to join the European Union - ever.  Now concerns are growing in Brussels that Sarkozy is contemplating a formal Franco-German initiative next year to offer Turkey a “privileged partnership” instead of, as now, the long-term prospect of full EU membership.

The idea of a “privileged partnership” has been around for a good few years.  Sarkozy likes it, and so does Germany’s ruling Christian Democratic party.  It also appeals to Angela Merkel, the CDU chancellor.  However, Merkel has up to now taken a nuanced approach, recognising that Germany, along with other EU countries, recognised Turkey as an official candidate for membership in 1999.  A responsible country cannot just wriggle out of agreements made in good faith, Merkel believes. 

The difference now is that, after last month’s German election, the Social Democrats - more sympathetic to Turkey’s aspirations - are out of government and have been replaced by the Free Democrats, whose position on Turkey is more ambiguous.  The balance of opinion in Berlin is changing.  Sarkozy may try to seize the opportunity to line up the new German government behind the concept of the ”privileged partnership”, according to EU policymakers.

Needless to say, Turkey would dismiss an offer along these lines as an insult.  There is no legal foundation for a “privileged partnership”, says Egemen Bagis, Turkey’s chief negotiator on EU matters.   You are either in the EU or not in the EU.  You cannot be half-pregnant, Bagis once told me.

The US would undoubtedly dislike such an initiative, too.  Ignoring criticism that it’s none of their business, both Democratic and Republican administrations have always encouraged the EU to accept Turkey as a full member.

Alas, Turkey’s EU membership bid is in serious trouble, anyway.  The European Commission tried to put a brave face on matters this week in its annual report on Turkey.  But the inescapable truth is that out of the 35 negotiation chapters, or policy areas, that a country needs to complete in order to join the EU, Turkey has opened 11, of which only one has been provisionally closed.  Another 12 chapters have been either formally frozen by the EU, or informally blocked by France with support from others opposed to Turkey’s bid.  The entire process risks grinding to a halt.

In December EU leaders will discuss Turkey’s failure to heed their calls to open its ports and airports to ships and aircraft from the Greek Cypriot-controlled government of Cyprus.  In theory they could take a harsh line and more or less abandon Turkey’s EU entry talks.

I doubt this will happen - Sweden, which holds the EU’s rotating presidency until December 31, is friendly towards Turkey, and many other countries think it would be crazy to adopt such a position just when negotiations on a Cyprus settlement are reaching a critical moment.

But towards the end of the first half of 2010, the picture may well look different.  April is the key month.  If the Cyprus talks are deadlocked by the time of next April’s Turkish Cypriot presidential election, and if he can get Germany on board, Sarkozy may be tempted to unveil his “privileged partnership” proposal.

EU governments hunt for top jobs on European Commission

October 14th, 2009 6:23am

Ask a minister in a European Union government what post their country hopes to get in the next European Commission, and the response is the same every time - something important to do with the economy.  Well, you can’t blame people for not hurrying to step into the shoes of Leonard Orban, the Romanian commissioner for multilingualism.

On the other hand, there aren’t enough top economic jobs for Commission president José Manuel Barroso to satisfy everyone.  Truth to tell, the Commission looks too big with 27 members.  But that’s the way it is, and that’s the way it will stay under the EU’s Lisbon treaty.  A guaranteed seat on the Commission seems a simple, visible way of making a country’s citizens feel connected to the EU.

The main four economic portfolios in Barroso’s outgoing Commission have been - in no particular order - competition, the internal market, trade, and economic and monetary affairs.  These have been occupied by the Netherlands, Ireland, Britain and Spain respectively.  By contrast, France has held two lesser posts (first transport, then justice, freedom and security), and Germany has dropped almost completely out of sight in the post of enterprise and industry.

As Barroso puts together his new team, France and Germany are in the hunt for really big jobs and feel no doubt that they deserve them because of their relatively diminished status in the outgoing Commission.  The French and Germans want to play a much more direct role in shaping the EU’s economic and financial policies as the EU struggles to emerge from recession, rewrites its rules on financial regulation and defends its industries in world markets.  France is said to desire the internal market job on the Commission, and Germany would like something equally prominent.

All this is causing some nervousness in Britain and a few like-minded countries that the next Commission will be less free market-oriented than its predecessor.  In response I would make two points.  First, this is the spirit of the age - you can expect nothing less after the recent near-meltdown of the western world’s financial system and the associated regulatory failures.

But secondly, it just does not follow that to give a top economic dossier to France or Germany means that the Commission will be wrenched in the direction of some manically illiberal étatisme and fiendishly pro-Volkswagen industrial policy.  To take one excellent example, Pascal Lamy, the Frenchman who served as trade commissioner from 1999 to 2004, was a robust defender of free trade and now is head of the World Trade Organisation.  The same would be true if the next French commissioner were someone like Christine Lagarde, who at present is President Nicolas Sarkozy’s finance minister (she is still a possible choice, some think, even though it looks as if Sarkozy is going for Michel Barnier).

EU commissioners, at their best, are like US Supreme Court justices.  When a president picks a judge to sit on America’s highest court, everyone’s first thought is, “Here we go, a blatant political appointment designed to push the Court in a certain ideological direction”.  Then, more often than not, the nominee causes a surprise by putting the court’s interests first and acting independently.  So it can be at the Commission, where the institutional culture of independence from political pressure is stronger than many on the outside assume.