Increasing pressure for CAP reform

As the French government stepped up pressure for the British rebate to be phased out, Tony Blair hit back, arguing that any renegotiation of the rebate could only happen if the French agreed to wholesale reform of the CAP.

Research shows that the French receive significantly more from the CAP than any other country. In 2003 France received 23.6 percent of CAP funding, while the next biggest recipient was Spain with 14.6 percent. In comparison, the UK received 9 percent of funding (Commission report on Allocation of 2003 EU Operating Expenditure by Member State).

France received 10.5 billion euros this year through the CAP, compared to 6.9 billion euros in 1992. In 1992 it received 21.6 percent of CAP funding, but by 2003 this had increased to 23.6 percent. Overall, since 1992 France has received 107.1 billion euros out of the CAP. This is three times the 33 billion euros which the G8 is proposing to write off from developing world debt (Commission reports on Allocation EU Operating Expenditure by Member State 1992-2003).

Two reports released this week have highlighted the damage the CAP causes and called for wholesale reform. A House of Lords report criticised the 2003 reforms of the CAP, arguing that they have not reduced its trade-distorting subsidies which harm the developing world, and that the EU has not planned properly for future enlargements. It predicts that the stretched CAP budget will be exceeded by 2007. It also calls for control over the funds for rural development to be returned to the member states.

Oxfam also released a report which described the CAP reforms as a "relabelling of existing support" which has allowed the EU to exploit loopholes in the WTO negotiations with developing countries. It argues that the EU is understating its real levels of export subsidisation: "The EU pays out the equivalent of 4.1billion euros in hidden export support - four times what it reports to the WTO."

The no campaign has prepared a detailed briefing on the damaging effects of the CAP which can be downloaded here: http://www.nocampaign.com/downloads/CAP_briefing.pdf

To download a copy of the House of Lords report, click here: http://www.publications.parliament.uk/pa/ld200506/ldselect/ldeucom/007/7ii.pdf

To download a copy of the Oxfam report, click here: http://www.oxfam.org.uk/what_we_do/issues/trade/downloads/bp64_cotton_dumping_060904.pdf

Commission warns of rising euroscepticism

A European Commission internal report this week has warned that countries which were planning to hold referendums on the EU Constitution are facing a rise in euroscepticism. The report, which said there could be a "tsunami" of no votes if referendum went ahead, added weight to the EU Council's decision to call for a "pause" in the ratification process.

Although most referendums have now been cancelled, polls show there would have been an uphill struggle for the yes campaigns. A poll for the Irish Times earlier this week found that a majority of people in Ireland are now against the EU Constitution. 35 percent said they would vote no, 30 percent would vote yes and 35 percent said they did not know how they would vote.

Meanwhile a Factum Invenio Institute poll taken in the Czech Republic put the no side ahead on 52 percent to the yes side's 48 percent. A poll in May had suggested that two-thirds of Czech voters would back the Constitution.

In Luxembourg, support for the Constitution has collapsed since the French no vote with the gap between the yes side and the no campaign falling from 44 percent to 10 percent between May and June. The TNS-ILReS poll now puts the yes side on 55 percent, with the no campaign on 45 percent.

In Denmark, the no campaign took the lead in polls immediately after the French no vote. Polling by the Megafon Institute has also highlighted a 6 percent drop in support for euro membership, and a 7 percent drop in support for Danish participation in EU defence policies.

In Poland support has fallen from 60 to 40 percent. Swedish support for the Constitution - already lukewarm at best - has also collapsed. The yes and no sides were neck and neck in a poll taken in January, but a Sifo poll taken the day after France voted no gave the no campaign an 18 percent lead.

UK Government backs "country of origin" principle

In written parliamentary answers this week, the Government confirmed that it will use the UK presidency of the EU to push the controversial Services Directive, including the "country of origin" principle. Europe Minister Douglas Alexander said, "The UK remains a strong supporter of the Directive - we will continue to work with the Commission, the Parliament and EU partners to produce a measure that opens up the European services market and reduces barriers to business across the continent". He added that, "The country of origin principle is an important means to facilitate the temporary provision of services across borders" (Hansard, 15 June).

In an article for Tribune this week, Dave Prentis, General Secretary of the UK's biggest union UNISON, outlined his opposition to the Directive. He said that by promoting the Directive, "the European Commission has opened the way to the liberalisation and possible privatisation of healthcare provision in Britain, even though health is a responsibility for national governments, not the EU". He also specifically rejected the "country of origin" principle: "The real consequence of the country of origin principle will be a rush by companies to move their headquarters to those countries in Europe with the lowest regulatory standards and social dumping across Europe on a massive scale" (Tribune, 17 June).

Text from news release by the say no campaign.

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