My Observations Jose Manuel Barroso Says UK Demand Put EU Internal Market At Risk. To do it justice I decided to include the article below:
Jose Manuel Barroso told the European Parliament theUK’s stance had made compromise impossible at last week’s EU summit on economic integration.
The UK vetoed treaty changes for the 27-member EU, arguing it had to protectBritain’s financial services industry.
Downing Streetdenied seeking to “undermine the single market”.
A No 10 spokesman said the British Government had been seeking equal, not preferential, status for the City ofLondonin negotiations over financial regulation.
At least 23 other states at last week’s EU summit agreed to forge ahead with deeper ties.
Speaking before Mr Barroso in Strasbourg, the President of the European Council, Herman Van Rompuy, said he hoped to see the new fiscal deal signed by most EU states by early March.
This is not an agreement at 17-plus, but an agreement at 27-minus”
End Quote Jose Manuel Barroso European Commission president
They envisage an intergovernmental treaty, or “compact”, on stricter fiscal rules.
“Early March at the latest, this fiscal compact treaty will be signed,” Mr Van Rompuy said.
The fiscal compact is designed to allow closer monitoring of countries’ spending, in order to prevent a repeat of the eurozone’s current debt crisis.
British Prime Minister David Cameron’s use of theUK’s veto inBrusselshas strained relations between his Conservative Party and Liberal Democrat coalition allies.
In his speech to MEPs, Mr Barroso said: “As you know, one member state was opposed to amending the Lisbon Treaty.
“TheUnited Kingdom, in exchange for giving its agreement, asked for a specific protocol on financial services which, as presented, was a risk to the integrity of the internal market.
Members of the European Parliament are in sombre mood. All watched last week’s negotiations to save the euro very closely indeed, and a key question for many of them is: just exactly how will the agreement affect their constituents?
Many EU member states are already suffering high unemployment, especially among the young. A deal to restrict public spending and raise taxes could, many fear, cause more. Mr Barroso did his best to reassure them, insisting that European stability must be based not only on austerity and sanctions, but on jobs and growth as well.
A deal to achieve this must be hammered out by March. A key issue for MEPs is how much they, as democratically elected representatives, will be involved in the process.
Many MEPs openly expressed their anger at what they see as a lack of solidarity fromBritainjust whenEuropeneeds it most. Joseph Daul said solidarity was not a one-way street, and he suggested the EU should consider very carefully how it should relate toBritainin the future.
“This made compromise impossible. All other heads of government were left with the choice between paying this price or moving ahead without theUK’s participation and accepting an internal agreement among them.”
Mr Barroso said the “greatest” risk of the summit, a split between the 17-euro states and the other 10, had been avoided.
“This is not an agreement at 17-plus, but an agreement at 27-minus,” he said.
“Last week, most heads of state or government of the member states showed their willingness to move ahead with European integration towards a fiscal stability union. They showed that they want moreEurope, not less.”
Tuesday’s plenary session of the European Parliament heard wide condemnation from the floor of theUK’s position within the EU.
French MEP Joseph Daul, who chairs the parliament’s centre-right European People’s Party group, toldBritainjokingly: “Don’t worry, we’re not coming with tanks and Kalashnikovs before Christmas.”
He said that “26 of the 27 states [had] shown responsibility”, agreeing that “shared sovereignty is better than sovereignty taken over by the markets”.
German MEP Martin Schulz, who leads the Social Democrat group, blamed speculators in the City of Londonfor the financial crisis.
Guy Verhofstadt, the Belgian former prime minister and leader of the Liberal group, piled condemnation on the British prime minister’s position at the summit.
“David Cameron will come to the conclusion that he has made the blunder of a lifetime,” he told MEPs.
“There is one golden rule in politics: you only walk away if you are sure that the others will follow,” he said, adding: “When you are invited to a table, it is either as a guest or you are part of a menu.”
We are still a full member of the European Union and will remain so”
End Quote Timothy Kirkhope British Conservative MEPs’ leader
1. Is there any surprise that voters are not in the mood to listen to the coalition when the good old days of jobs of plenty are turning to no jobs for the masses and if you happen to be young it’s more than likely that you will either be in university or moving for the kill for your first job.
2. Let’s not forget the milk snatcher (Maggie Thatcher) at least she went to the EU and did some negotiation to save face unlike David Cameron who went to EU then came back with something in a nutshell with nothing except to facing parliament between his legs, praised by the #conservative backbenchers (Euro sceptic) and split loyalties by their #Coalition partners (Fibdems).
3. The fact that Cleggy was not present beside his coalition partner speaks volumes. As for Ed Miliband he is now in the ideal position to up his game but missed some opportunities to dig into the coalition but instead wanting to woo disillusion Fibdems members into #Labour. Let’s not forget where are our roots lay and how our party was formed as a party we need more than ever to stand up for our core voters and hit the coalition where it really hurts.
4. There is a lot of rumour that the coalition will not last. Don’t be fooled they are in it for the long haul. I will go as far to say that there is a general feeling that another General Election should be called. It’s my opinion that will be unlikely to happen.
5. Today we learn that the figures are out
6. If there was a fly on the wall at today’s Cabinet meeting, it will have left with its ears buzzing.
7. Prime Minister David Cameron justified his decision to exemptBritainfrom a new European tax and regulatory regime, in the belief that this protects the interests of his party’s paymasters in the City ofLondon.
8. Deputy PM Nick Clegg complained that this approach risked isolating big business from EU decision-making. Mr Clegg’s subsequent efforts to rally top monopolists will indicate whether any real division has opened up in in British ruling class circles.
9. But the political fall-out from the Bonn EU summit is unlikely to include the immediate collapse of the Con-Dem coalition.
10. This was a regime cobbled together at the behest of City bankers and speculators – or “investors” as the BBC insists on calling them.
11. Nobody voted for it. No democratic mandate exists for its policies. Indeed, the seven million Liberal Democrat voters in May 2010 were told by Clegg, Cable and the “Orange Book” crusaders that they were voting for a milder austerity programme, for ruthless regulation of the City and closer relations with the European Union.
12. All nonsense, of course, and the main reason why the LibDems dare not precipitate a general election and risk oblivion at the polls.
13. In any case, the coalition has not completed its pro-big business agenda to slash, cheapen and privatise public services and cut the cost of labour through mass unemployment and a new round of anti-labour laws.
14. That is what the Tories and LibDems signed up to do in the first place, for all their pious prattle about reducing the budget deficit.
Faced with such duplicity on a colossal scale, Labour leader Ed Miliband’s responses so far have been mind-bogglingly feeble. His criticism of Con-Dem policies has been compromised by his own support for spending cuts.
15. He should instead be calling for more investment in public services and housing, financed by real taxation ofBritain’s super-rich and the monopolies. He needs to dump the #Conservatives baggage of PFI, PPP, academies and hospital trusts so that he can argue against all forms of privatisation with more credibility.
16. Demands for public ownership of the energy utilities and railways would enjoy majority public support. These are policies projected in the People’s Charter, which provides the labour movement with a positive alternative of its own.
17. Instead of twitching in embarrassed silence when challenged about how he would have voted inBonn, Miliband should make it clear that Labour opposes bankers’ diktats whether they come fromLondon, Frankfurt orBrussels. The European Union has always been a fundamentally anti-democratic project to construct a monopolist, militarist United States of Europe. Behind a facade of international unity, the state-monopoly capitalisms ofGermanyandFrancein particular have competed for hegemony while joining together to exploit workers more intensively at home and abroad.
18. They propose a Tobin tax on the bankers and speculators not to aid Third World development – but to bail outEurope’s banks.
19. When David Cameron opposes EU fiscal integration he is speaking up for the City.
20. Ed Miliband should oppose the drive to a big business United States of Europe in the interests of the workers and peoples ofBritain, and everywhere else besides.
21.UKunemployment rose by 128,000 in the three months to October to 2.64 million, the highest level since 1994.
22. The Office for National Statistics (ONS) said the jobless rate was 8.3%, up from 7.9% in the previous quarter.
23. Youth unemployment rose to 1.027 million, the highest since records began in 1992, beating the previous record set only last month.
24. The number of people out of work and claiming Jobseeker’s Allowance rose by 3,000 to 1.6 million in November.
25. However, the rate of increase in the claimant count showed signs of slowing down.
26. The 3,000 rise was much less than the approximate 15,000 figure expected on average by economists.
27. Moreover, the ONS also revised down the October increase in the claimant count from the 5,300 reported last month to just 2,500.
28. The young continued to bear the brunt of the lack of jobs in theUK- a problem shared by many other countries.
29. The unemployment rate among 16 to 24-year-olds rose to 22% in the three months to October, up from 20.8% three months earlier.
30. “Too many young lives are being wasted in the dole queue,” said Martina Milburn, chief executive of the Prince’s Trust youth charity.
31. “It is frightening to think that more than two-fifths of unemployed young people have been jobless for more than six months.
32. High youth unemployment is one of the biggest problems confronting societies around the world, condemning whole generations to a life of much reduced income.
33. “Long-term unemployed young people are the most vulnerable, with many trapped in a vicious cycle of joblessness, anxiety and depression.”
34. The total number of people of all ages in employment fell by 63,000 compared with three months earlier, to 29.11 million.
35. That was largely driven by 67,000 job losses in the public sector. The private sector added just 5,000 jobs over the same period.
36. “This is another grim month for jobs, with private sector companies still reluctant to hire,” said Graeme Leach, chief economist at theInstituteofDirectors.
37. “The ongoing failure to resolve the euro crisis is likely to mean that unemployment rises still further over the winter. Many businesses are still watching and waiting.”
38. Economists said that while the latest Jobseeker’s Allowance figure was encouraging, the outlook remains bleak, with the possible worsening of the eurozone debt crisis and a resulting recession on the horizon.
39. “UKlabour data doesn’t look too bad from the headline figures, but the underlying story is much weaker,” said James Knightley of ING Financial Markets.
40. “We see unemployment continuing to rise in the months ahead, with the prospect of three million unemployed looking more and more likely given lead indicators are pointing to a growing threat of recession.”
41. The surprise slowdown in the rate of increase in the number of people claiming benefits may also be misleading, according to Ross Walker, economist at Royal Bank ofScotland.
42. “The claimant count series has been heavily distorted by changes to lone parent benefit entitlement, which led to big increases through the middle of this year, and which was always going to wash out,”
43. However, Brian Hilliard, economist at Societe Generale took the opposite view: “The number to focus on is the claimant count figures.
44. “It’s not enough to make people revise their forecasts but it’s a comforting feature when everything else is so gloomy.”
45. Meanwhile, wages continued to rise well below the rate of inflation. Excluding bonuses, average pay rose 1.8% from a year ago, and by just 0.1% from three months ago.
46. On Tuesday, the ONS reported that the rate of inflation – as measured by the Consumer Prices Index – was 4.8% in November, down from 5% a month earlier.