Today Croatia goes to the polls to elect its 12 MEPs - the country will formally join the EU on 1st July this year. Those elected won't have too long to establish themselves with elections for the whole Parliament in 2014, and, on top of that, the number of Croatia's parliamentary seats will reduce by one due to the Lisbon Treaty limitation of the EP to 751 seats.
Though there are 336 candidates on 28 lists (the election is on the open list system), the campaign has been short and lacklustre, with the ruling S&D Group-aligned party predicted to win the poll on a 60% turnout.
If these predictions are borne out, it will provide a small boost to the centre-left S&D Group in the European Parliament, which is the second biggest group in the Parliament, but the centre-right EPP will comfortably remain the biggest party.
Best of luck to Croatia & vote if you can!
Sunday, 14 April 2013
Friday, 12 April 2013
The Eurocrisis and Industrial Relations
That the Eurocrisis has changed industrial relations in Europe is the understated conclusion of the Commission's new paper, Industrial Relations in Europe 2012. The report comes from the DG for Employment, Social Affairs and Inclusion, headed by Commissioner László Andor, and focuses on:
It's a hefty document at 338 pages, and in the light of the release of the Commission's in-depth review of macroeconomic imbalances earlier this week (see Social Europe Journal for an interesting critique of the Commission's approach here), it's may be tempting to see it as a note of dissent from one of the few Commissioners from the PES family, but he's insisted that there's no contradiction - and, reading it, the language is carefully constructed to portray support for dialogue with social partners as a part of the austerity process:
In itself the language is interesting as it shows how technocratic the Commission still is, years after Margot Wallstrom pushed for more politics in the Commission. Social dialogue is presented as a way of legitimising the implementation of austerity policies and of tailoring them to get the best results for employment and growth (comparisons between Ireland and the other bail-out countries are interesting here, although the renegotiation of the public sector Croke Park Agreement is facing some hurdles for trades union acceptance). The report's endorsement of social dialogue will be welcome for the left (as will it's call for progress on social dialogue in Central and Eastern Europe), though the failed attempt of the Commission to address concerns over collective action and the Viking and Laval cases and the review of the Working Time Directive show that there is plenty of room for improvement when it comes to practical policy.
- how the outcomes of European social dialogue can make a real difference to the working lives of Europeans, for example on improved health and safety at work and working conditions;
- industrial relations in the public sector (public administration, education and healthcare) in light of the government spending cuts in many Member States;
- the state of social dialogue in Central and Eastern Europe;
- the involvement of social partners in unemployment and pension system reforms and in the transition towards an economy that is more sustainable and less dependent on fossil fuels.
It's a hefty document at 338 pages, and in the light of the release of the Commission's in-depth review of macroeconomic imbalances earlier this week (see Social Europe Journal for an interesting critique of the Commission's approach here), it's may be tempting to see it as a note of dissent from one of the few Commissioners from the PES family, but he's insisted that there's no contradiction - and, reading it, the language is carefully constructed to portray support for dialogue with social partners as a part of the austerity process:
"This report argues that social dialogue mechanisms and instruments, which have served Europe well over many decades, are still relevant means of addressing the crisis and contributing to creating favourable conditions for growth and employment."
In itself the language is interesting as it shows how technocratic the Commission still is, years after Margot Wallstrom pushed for more politics in the Commission. Social dialogue is presented as a way of legitimising the implementation of austerity policies and of tailoring them to get the best results for employment and growth (comparisons between Ireland and the other bail-out countries are interesting here, although the renegotiation of the public sector Croke Park Agreement is facing some hurdles for trades union acceptance). The report's endorsement of social dialogue will be welcome for the left (as will it's call for progress on social dialogue in Central and Eastern Europe), though the failed attempt of the Commission to address concerns over collective action and the Viking and Laval cases and the review of the Working Time Directive show that there is plenty of room for improvement when it comes to practical policy.
Thursday, 11 April 2013
Childers resigns from the EP Irish Parliamentary Labour Party
The Irish Labour Party has had a rough few weeks. Currently in government with the centre-right Fine Gael, it had finally become the second biggest political party in Ireland after the last election (an achievement for the main centre-left party that had always been the 3rd party in Ireland). However in government the Labour party has gotten the flak for aligning itself too closely with Fine Gael's conservative policies. Labour had promised "balanced government" through moderating Fine Gael's influence, but it has little to show for its concessions in government.
The shockingly low result for Labour in the Meath East by-election at the end of March - where they only managed 4%! - is an indication of just how angry the party base is with the parliamentary party. Nationally, Labour's support is polled at between 7-13%, but a combination of low turnout and disaffected grassroots led to the collapse in the Labour vote. If it's going to mitigate the damage at the next elections, Labour in government will have to make a greater show of defending their centre-left values. Without this, it will be hard to motivate the party base or convince other voters of the value of giving their transfers to Labour candidates (votes transferred from candidates eliminated for not attracting enough votes is important in the Single Transferable Vote system). Then again, if a centre-left party doesn't fight for its centre-left values, it's hard to see the point of it in the first place...
Following this defeat, Nessa Childers, the Labour MEP resigned from the parliamentary party because of its support for the government. Childers has been at odds with the leadership of the party for some time, so the resignation is being dismissed as the loss of a semi-detached member, but her suggestion that Labour values may be more effectively expressed outside the Labour Party will probably have a ring of truth with some people.
In Brussels and Strasbourg this will not have much of an effect: Childers remains a Labour party member and will remain part of the Socialists and Democrats Group in the European Parliament. However, since she was the only Labour MEP to have been elected in the 2009 election (Labour's other two MEPs were substituted in after the resignations of the former seat-holders), it will be even more difficult for the party to retain these seats (electoral support in Ireland is more directly linked to the candidate than the party in comparison to other European electoral systems). Just a year before the 2014 European elections, it looks like the S&D Group will be lucky to retain even one seat in Ireland.
The shockingly low result for Labour in the Meath East by-election at the end of March - where they only managed 4%! - is an indication of just how angry the party base is with the parliamentary party. Nationally, Labour's support is polled at between 7-13%, but a combination of low turnout and disaffected grassroots led to the collapse in the Labour vote. If it's going to mitigate the damage at the next elections, Labour in government will have to make a greater show of defending their centre-left values. Without this, it will be hard to motivate the party base or convince other voters of the value of giving their transfers to Labour candidates (votes transferred from candidates eliminated for not attracting enough votes is important in the Single Transferable Vote system). Then again, if a centre-left party doesn't fight for its centre-left values, it's hard to see the point of it in the first place...
Following this defeat, Nessa Childers, the Labour MEP resigned from the parliamentary party because of its support for the government. Childers has been at odds with the leadership of the party for some time, so the resignation is being dismissed as the loss of a semi-detached member, but her suggestion that Labour values may be more effectively expressed outside the Labour Party will probably have a ring of truth with some people.
In Brussels and Strasbourg this will not have much of an effect: Childers remains a Labour party member and will remain part of the Socialists and Democrats Group in the European Parliament. However, since she was the only Labour MEP to have been elected in the 2009 election (Labour's other two MEPs were substituted in after the resignations of the former seat-holders), it will be even more difficult for the party to retain these seats (electoral support in Ireland is more directly linked to the candidate than the party in comparison to other European electoral systems). Just a year before the 2014 European elections, it looks like the S&D Group will be lucky to retain even one seat in Ireland.
Thursday, 21 March 2013
Economic Union and Cyprus
The crisis flared up in a shocking manner this week as Cyprus, long on the list of potential bail-out countries, found itself at the centre of the Eurocrisis after the controversial bail-out deal was rejected by the Cypriot parliament. The ECB has extended its emergency credit to the Central Bank of Cyprus until Monday, giving the country some more time to find a Plan B. Cyprus is increasingly looking to Russia for support (Russia has already loaned Cyprus some money), and there is a media battle over the rights and wrongs of the bail-out conditions. The decision to tax bank depositors as a one-off was always going to have a knock on confidence, and the confusion over who decided what is increasing with a PR war over the decision to extend the tax to depositors with accounts of under €100,000.
The head of the Euro Group, Jeroen Dijsselbloem, was in the European Parliament today to answer questions on the crisis, and European Council President Van Rompuy and Commissioner Maroš Šefčovič were grilled by the Parliament yesterday. The deposit tax was attacked from across the political spectrum:
The shambolic approach to bail-outs highlights again that the EU is operating in a piecemeal way to the crisis and has little coherence to its responses. The demand for a deposit tax doesn’t sit well with bank deposit guarantees, the aim of protecting depositors or breaking the link between sovereigns and the banking system as was agreed at the European Council summit in June.
Ironically yesterday the Commission unveiled further plans on economic and monetary union to increase co-ordination on important economic policies including the areas of “competitiveness, employment, market functioning, tax systems, financial stability and fiscal sustainability”, as well as further developing this contractual approach to financial assistance in the form of “Convergence and Competitiveness Instruments” (CCIs). These proposals aren’t yet legislative proposals, but they underline the technocratic approach:
Without oversight and accountable political decision-making at the European level to decide on what kind of Eurozone we want in the first place, the coordination and the negotiation of the CCIs will be based on a technocratic vision of the Eurozone. If the CCIs are to form a pillar of Eurozone economic and social policy, shouldn’t there be a Eurozone framework drawn up by the European Parliament that identifies economic and social priorities regularly to guide this, rather than technocratic priorities being enshrined? Currently bail-out deals seem to be ad hoc and unprincipled, with disastrous results for policy making.
The head of the Euro Group, Jeroen Dijsselbloem, was in the European Parliament today to answer questions on the crisis, and European Council President Van Rompuy and Commissioner Maroš Šefčovič were grilled by the Parliament yesterday. The deposit tax was attacked from across the political spectrum:
"My question is: how come all of a sudden small savings and depositors are no longer protected? This is a dangerous precedent. It takes years to recover trust by depositors. Why hit the small savers? The crisis in Cyprus has sounded an alarm bell. We have to speed up the regulation of financial markets. Above all, we need a European solution to the Cyprus problem, not a Russian one." - Corien Wortmann-Kool, vice chairwoman of the centre-right European People's Party.
"The European law is very clear: all deposits below €100,000 must be guaranteed in case of bank failure. We urged the Cypriot government and the European authorities to come up with an alternative solution that protects the savings of ordinary citizens. The EU has made huge progress on strengthening the stability of the eurozone with the recent agreement to set up a single European supervisor to oversee the banks, and the new rules on capital requirements for banks (the so-called 'CRD IV' package). We need to do more by setting up a European resolution mechanism in case of bank failures." - Elisa Ferreira, S&D spokesperson for economic and monetary affairs.
"A banking union must protect the bank customers, especially the ordinary depositors rather than the bond holders and creditors. Nor does the decision do anything to break the link between banks and sovereigns. It is totally incomprehensible and undermines the credibility and legitimacy of the EU and its new financial structures to restore stability." – Guy Verhofstadt, leader of the Liberal ALDE group.
“While it is clear that a bailout is necessary to protect Cyprus from eventual bankruptcy, the tax on bank deposits will risk destabilising the complete structure of the Cypriot banking system, and is an aggressive gesture by the Eurogroup to the population of Cyprus.” - Monica Frassoni, European Green Party co-Chair.
The shambolic approach to bail-outs highlights again that the EU is operating in a piecemeal way to the crisis and has little coherence to its responses. The demand for a deposit tax doesn’t sit well with bank deposit guarantees, the aim of protecting depositors or breaking the link between sovereigns and the banking system as was agreed at the European Council summit in June.
Ironically yesterday the Commission unveiled further plans on economic and monetary union to increase co-ordination on important economic policies including the areas of “competitiveness, employment, market functioning, tax systems, financial stability and fiscal sustainability”, as well as further developing this contractual approach to financial assistance in the form of “Convergence and Competitiveness Instruments” (CCIs). These proposals aren’t yet legislative proposals, but they underline the technocratic approach:
“What would the ex-ante coordination process look like?
A Member State would provide information on a major economic reform plan in its National Reform Programme (on economic policies for the coming year) or at another time during the year. The Commission would assess the plan and deliver an opinion on it. The Commission's assessment would cover the extent to which the reform tackles the specific policy challenges and how it would improve competitiveness and adjustment capacity. The Commission's assessment would pay particular attention to the impact the reform would have on the functioning of the euro area and possible spillover effects on other Member States. These plans will then be discussed by the Council of Ministers and the Eurogroup. The Commission and the Council can suggest modifications to the national reform plan where they could be justified by the expected effects on other Member States and the functioning of the Economic and Monetary Union.”
Without oversight and accountable political decision-making at the European level to decide on what kind of Eurozone we want in the first place, the coordination and the negotiation of the CCIs will be based on a technocratic vision of the Eurozone. If the CCIs are to form a pillar of Eurozone economic and social policy, shouldn’t there be a Eurozone framework drawn up by the European Parliament that identifies economic and social priorities regularly to guide this, rather than technocratic priorities being enshrined? Currently bail-out deals seem to be ad hoc and unprincipled, with disastrous results for policy making.
Thursday, 7 February 2013
Liquidating Anglo Irish Bank
Last night the Oireachtas (Irish parliament) held an extended sitting lasting into the night to pass emergency legislation to liquidate the Irish Bank Resolution Corporation, the successor to the Anglo Irish Bank.
The legislation was sprung on lawmakers when news of a possible deal with the ECB over the billions of debt bound up in promissory notes to the bank was leaked. (You can read more on the background to the promissory notes here). The ECB board is scheduled to meet tomorrow and will decide on a deal on some of the Irish banking debt. This sparked concerns over the bank (that its assets would be at risk and that the state would be exposed at a time when creditors and debtors knew that liquidation was coming), leading to the government launching the bill through the Oireachtas under a guillotined procedure - the Irish president flew home from a visit to Italy on short notice to sign the bill into law.
The Irish Bank Resolution Corporation Bill 2013 (the Bill couldn't be amended so the wording is identical to the Act) was passed by the Dáil (lower house) by 113 votes to 35 just before 3am before going to the Seanad for approval. It empowers the Minister for Finance to order the liquidation of the IBRC, to order National Asset Management Agency (NAMA, Ireland's bad bank) to take a number of actions, including bidding for the assets of IBRC (i.e. swap assets for NAMA bonds), and to create or issue securities under a number of circumstances, including in return for release from liabilities. The Act will also fire all of the employees of the IBRC - while NAMA will rehire some of these, it will be a particularly shocking and disruptive time for them.
The deal on the promissory notes (if any) is not yet known, so the Oireachtas had to decide on half of the deal before the ECB agreed to anything. The speculation is that the promissory notes will be turned into long term government bonds by the Minister for Finance, turning the banking debt into government debt in return for the debt to be paid off over a longer period, lessening the need for budgetary cuts. The retention of responsibility for the overall debt, with no debt write-down, will be unpopular and it will be difficult for the government to present the deal as a victory in the fight for the separation of banking and sovereign debt. However there could (should) be savings when it comes to the interest on the debt. The final deal may end up having a different shape to it, but, whatever the detail, once the deal is accepted it is highly unlikely that further concessions should be negotiated.
There is no guarantee that the ECB will arrive at a decision on this today. The order of events means that it will be difficult to know whether, whatever deal is reached, a better deal could have been possible. But unless the deal includes a write-down on the debt, it will still be seen as cementing public responsibility over private debt.
The legislation was sprung on lawmakers when news of a possible deal with the ECB over the billions of debt bound up in promissory notes to the bank was leaked. (You can read more on the background to the promissory notes here). The ECB board is scheduled to meet tomorrow and will decide on a deal on some of the Irish banking debt. This sparked concerns over the bank (that its assets would be at risk and that the state would be exposed at a time when creditors and debtors knew that liquidation was coming), leading to the government launching the bill through the Oireachtas under a guillotined procedure - the Irish president flew home from a visit to Italy on short notice to sign the bill into law.
The Irish Bank Resolution Corporation Bill 2013 (the Bill couldn't be amended so the wording is identical to the Act) was passed by the Dáil (lower house) by 113 votes to 35 just before 3am before going to the Seanad for approval. It empowers the Minister for Finance to order the liquidation of the IBRC, to order National Asset Management Agency (NAMA, Ireland's bad bank) to take a number of actions, including bidding for the assets of IBRC (i.e. swap assets for NAMA bonds), and to create or issue securities under a number of circumstances, including in return for release from liabilities. The Act will also fire all of the employees of the IBRC - while NAMA will rehire some of these, it will be a particularly shocking and disruptive time for them.
The deal on the promissory notes (if any) is not yet known, so the Oireachtas had to decide on half of the deal before the ECB agreed to anything. The speculation is that the promissory notes will be turned into long term government bonds by the Minister for Finance, turning the banking debt into government debt in return for the debt to be paid off over a longer period, lessening the need for budgetary cuts. The retention of responsibility for the overall debt, with no debt write-down, will be unpopular and it will be difficult for the government to present the deal as a victory in the fight for the separation of banking and sovereign debt. However there could (should) be savings when it comes to the interest on the debt. The final deal may end up having a different shape to it, but, whatever the detail, once the deal is accepted it is highly unlikely that further concessions should be negotiated.
There is no guarantee that the ECB will arrive at a decision on this today. The order of events means that it will be difficult to know whether, whatever deal is reached, a better deal could have been possible. But unless the deal includes a write-down on the debt, it will still be seen as cementing public responsibility over private debt.
Monday, 4 February 2013
February to be a big month for same sex marriage in Western Europe
French deputies voted by 249-97 in favour of redefining marriage as applying to same sex as well as opposite sex couples. The change is not law yet, but the vote represents one of the bill's main hurdles, and it has been passed in a very passionate political atmosphere, with rallies on both sides.
France 24 reports that 63% are now in favour of marriage equality, with almost 50% supporting equal adoption rights as well.
Meanwhile in Britain there will be a debate on the Marriages (Same Sex Couples) Bill in the House of Commons this week. The Conservative minister charged with steering the bill through Parliament has stressed that it's the right thing to do at a time when it looks like the Conservative party will face a large rebellion on the issue. Social conservatives within the party are feeling that they are under attack from the Prime Minister and his allies in the name of detoxifying the "Nasty Party" in order to improve the party's image. As Cameron failed to win an outright majority with his rebranded party, it seems that social conservatives are more willing to speak out against some of Cameron's key social policies. There will be a free vote on the issue so that Tory MPs are free to vote with their conscience, but a major battle in the Commons over the issue may promote the image of the Conservative party as a party more interested in fighting itself over issues that aren't salient with the public.
Neveretheless the widespread support for same sex marriage in the House of Commons means that it is likely to be passed by a broad coalition of Conservative, Labour and Liberal Democrat MPs.
In Ireland the Constitutional Convention has started its work and is scheduled to have a plenary session on same sex marriage in April (PDF). Though the Convention is mandated to look at only a few areas (and is unlikely to have much time to examine further issues on its own motion), and the Convention is not yet a major news story, attitudes in Ireland have changed considerably over same sex marriage. Civil partnerships were only brought in in 2010 (and in force from the start of 2011), but one poll in 2012 was already showing 73% of the population in favour of same sex marriage.
France 24 reports that 63% are now in favour of marriage equality, with almost 50% supporting equal adoption rights as well.
Meanwhile in Britain there will be a debate on the Marriages (Same Sex Couples) Bill in the House of Commons this week. The Conservative minister charged with steering the bill through Parliament has stressed that it's the right thing to do at a time when it looks like the Conservative party will face a large rebellion on the issue. Social conservatives within the party are feeling that they are under attack from the Prime Minister and his allies in the name of detoxifying the "Nasty Party" in order to improve the party's image. As Cameron failed to win an outright majority with his rebranded party, it seems that social conservatives are more willing to speak out against some of Cameron's key social policies. There will be a free vote on the issue so that Tory MPs are free to vote with their conscience, but a major battle in the Commons over the issue may promote the image of the Conservative party as a party more interested in fighting itself over issues that aren't salient with the public.
Neveretheless the widespread support for same sex marriage in the House of Commons means that it is likely to be passed by a broad coalition of Conservative, Labour and Liberal Democrat MPs.
In Ireland the Constitutional Convention has started its work and is scheduled to have a plenary session on same sex marriage in April (PDF). Though the Convention is mandated to look at only a few areas (and is unlikely to have much time to examine further issues on its own motion), and the Convention is not yet a major news story, attitudes in Ireland have changed considerably over same sex marriage. Civil partnerships were only brought in in 2010 (and in force from the start of 2011), but one poll in 2012 was already showing 73% of the population in favour of same sex marriage.
Wednesday, 30 January 2013
Collective Management of Music Copyright Directive
While the internet and digital culture has changed the way we consume media, the internal market hasn't quite kept up. The Commission's approach to extending the internal market online is based on the Digital Agenda for Europe (PDF) and the Single Market Act (PDF), which show a greater emphasis on EU legislation to extend the internal market online. When it comes to online music services and the transparency of collecting societies, so far there has only been a non-binding recommendation (PDF) inviting the Member States to promote these goals, but now the Commission has introduced a draft Directive to tackle these issues (PDF).
On the transparency and accountability of collecting societies (that collect royalties and then distribute them to the artists after taking a cut), the directive would codify minimum requirements governing the membership and powers of the members, along with the societies' duties when performing their financial and negotiation roles (such as distributing income due to the artists without undue delay and requiring negotiations to be conducted in good faith) (Title II). The Directive is intended to shift the power balance in favour of the members by setting out reporting duties for the collecting societies - the idea being that a better informed membership will be equipped to demand better services and so improve the position of music artists.
The second pillar of the Directive introduces multi-territorial licences to break down barriers within the internal market (Title III). Currently music rights are granted on a territory-by-territory basis, which naturally gives raise to barriers in the market. The multi-territorial licences (MTLs) won't replace the current system, but they will be an extra option for collecting societies. Interestingly, the Directive provides for artists being able to by-pass their collecting society under certain circumstances (Article 30) if the collecting society does not grant MTLs in music rights. The rightholder will be then be able to grant licences for their own online rights either directly or through another intermediary. Clearly this is meant to free artists to exploit their work across the EU and boost the use of MTLs by ensuring that rights will not be bound up nationally because of the policy and power of collecting societies (or by their inability to process them or otherwise fulfil the MTL requirements).
One of the major concerns for the music industry is that this would promote the homogenisation of music across Europe. While it may intensify homogenisation, there is already a degree of globalisation and Europeanisation of music that it unlikely to diminish by maintaining some market barriers. Having MTLs could also open up more audiences for niche artists as well by making a wider variety of music available to consumers - after all, the internet can prove useful as a tool for band promotion.
Legislatively, the directive is still at the first reading stage in the European Parliament, with Marielle Gallo (EPP) working on as the rapporteur for the Legal Affairs committee. The EESC has delivered its (non-binding) opinion on the draft, which largely welcomes the draft in its current form.
On the transparency and accountability of collecting societies (that collect royalties and then distribute them to the artists after taking a cut), the directive would codify minimum requirements governing the membership and powers of the members, along with the societies' duties when performing their financial and negotiation roles (such as distributing income due to the artists without undue delay and requiring negotiations to be conducted in good faith) (Title II). The Directive is intended to shift the power balance in favour of the members by setting out reporting duties for the collecting societies - the idea being that a better informed membership will be equipped to demand better services and so improve the position of music artists.
The second pillar of the Directive introduces multi-territorial licences to break down barriers within the internal market (Title III). Currently music rights are granted on a territory-by-territory basis, which naturally gives raise to barriers in the market. The multi-territorial licences (MTLs) won't replace the current system, but they will be an extra option for collecting societies. Interestingly, the Directive provides for artists being able to by-pass their collecting society under certain circumstances (Article 30) if the collecting society does not grant MTLs in music rights. The rightholder will be then be able to grant licences for their own online rights either directly or through another intermediary. Clearly this is meant to free artists to exploit their work across the EU and boost the use of MTLs by ensuring that rights will not be bound up nationally because of the policy and power of collecting societies (or by their inability to process them or otherwise fulfil the MTL requirements).
One of the major concerns for the music industry is that this would promote the homogenisation of music across Europe. While it may intensify homogenisation, there is already a degree of globalisation and Europeanisation of music that it unlikely to diminish by maintaining some market barriers. Having MTLs could also open up more audiences for niche artists as well by making a wider variety of music available to consumers - after all, the internet can prove useful as a tool for band promotion.
Legislatively, the directive is still at the first reading stage in the European Parliament, with Marielle Gallo (EPP) working on as the rapporteur for the Legal Affairs committee. The EESC has delivered its (non-binding) opinion on the draft, which largely welcomes the draft in its current form.
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