June 23rd-24th 2010 - Brusssels Commentary - Employment Committee

23 June 2010

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Brusssels Commentary Employment Committee June 23 - 24 2010

Von Rumpoy addressed the house on the recent European Council in a special plenary, so Committee was late starting. Some lines from Von Rumpoy; - The economy is improving because they have stabilised the Euro, which has been the victim of its own success!! - He had not suggested that national governments should have to submit their budgets to the commission for approval prior to release to their own Parliaments (He did NOT say that they had no need to do so after their own Parliaments had received them). - He is optimistic, they were right to take the steps they took a year ago. Barosso, followed up, an address full of the usual cliches and EU speak;- carrot & stick, sustainability, ambition, positive, the way forward, concrete further action...... Nigel's forceful response included pointing out von Rumpoy's lack of a Plan B and that we sought to preserve the diversity of Europe and in so doing we were the good Europeans, which did not go down well, but see the Party web, Other leader's contributions included talk of economic governance, economic disasters need centralised institutions to organise and prevent same. Employment Committee, Tuesday Some comments by Mario Monti, President of Bocconi University, addressing the committee on a "New Strategy for the Single Market" (Well he's right there but I don't think I mean what he means).

A single currency is only successful when underpinned by a single market, as in the USA. - Common Fiscal policy, based on the single market, is needed more than ever (!) even if it is more unpopular. It needs a single market in an integrated system. - Laval, et al cases, again, solutions wanted, embarrassing if rights of free movement conflict with the right to strike (embarrassing for whom?) and this right needs an explicit statement (?) - Following which, did Lisbon change the rules under which the ECJ made its rulings? - The relocation of Dell from Ireland to Poland caused 1000 jobs lost because the trade unions did not do their job, so the Irish people know more about Laval than other people.

Q. Member states want to retain control of the social welfare system, how do we harmonise that and will the single market obstruct it?

A. Not if enough political effort is made. Wednesday In the voting there was a report on combating poverty. This included an amendment to establish an EU system of FAIR TAX and another to require member states to establish a NATIONAL MINUMUM WAGE, based on 60% of the national average. For the UK that would be 60% of £489. That comes to £293, which is well above the current minimum wage. These amendments were rejected but only because the socialists abstained due to the report being badly worded.

They expressed support in principle, and the rapporteur promised to revise the wording, so we know what to expect next time, since the report as a whole was adopted. A marker has been laid down. Once re-written in acceptable wording it will be adopted in full and small businesses will be under even more pressure, redundancies ahead. Worse, it eases the way both to pan-EU taxation and to EU minimum wages. I think we can see exactly where the EU is going, the ratchet is clicking onwards.

Derek Clark MEP Brussels June 24th 2010