Saturday November 22, 2008

Irish vote: France, EU spar


Locking horns: French President Nicolas Sarkozy (L), Slovenian Prime Minister Janez Jansa (R), and Malta's Prime Minister Lawrence Gonzi (C) pose for a family portrait during a two-day EU Summit of Heads of State and Government, last Thursday at the European Union headquarters in Brussels, Belgium. Picture: AFP

Saturday, June 21, 2008

LESS than two weeks before it takes charge of the European Union, heavyweight member France is locked in a festering and potentially damaging row with Brussels.

As the EU's reform treaty unravels, France and the European Commission have accused each other of contributing to the turmoil by possibly undermining voter confidence ahead of last week's referendum in Ireland.

The commission, the bloc's unelected executive body, is essentially a super EU butler doing the bidding of an often unpredictable and fussy 27-headed master.

Its president, Jose Manuel Barroso, is just as keen to win a second mandate when his term expires next year, as French President Nicolas Sarkozy is to emerge from what is shaping up as a tough six months with his head held high.

But late last Thursday, as EU leaders were debating a way out of the political mire at their summit in Brussels, Sarkozy accused Trade Commissioner Peter Mandelson of playing a role in the treaty's Irish downfall.

The British commissioner is accustomed to French fire over his handling of WTO negotiations on the EU's behalf, but Sarkozy said Mandelson was alone in thinking the bloc should continue negotiating while nothing was forthcoming from its partners.

"It would be highly unrealistic to keep wanting to negotiate a deal where we haven't received anything on services, nothing on industry ... and which would cut farm output by 20 per cent while 800 million people are dying of hunger," he said.

"Frankly, there's only one person who thinks like that and it's Peter Mandelson and it's not France's position," Sarkozy told reporters.

"The question of the WTO was clearly a question that was brought up in the Irish debate," he said.

A senior commission official noted bitterly early yesterday that "the French finance and foreign ministers also had very negative remarks", in the run-up to the Irish vote.

In April, Economy Minister Christine Lagarde said that France would push for the harmonisation of corporate tax rules — calling the matter "one of the most urgent" — when it takes over the EU's helm.

With one of the lowest corporate tax rates in Europe, Ireland is among those nations which fear this could lead to more general tax harmonisation.

French Foreign Minister Bernard Kouchner, for his part, suggested that the Irish would be shooting themselves in the foot if they voted 'no, just a few days before they went to the polls.

"The first victims would be the Irish. They have benefited more than others," notably from EU subsidies, he told French radio.

An angry senior commission official said at the time that such comments could appear as a "diktat" to a relatively small EU nation like Ireland.

"Shutting up would be the best thing we could do for the Irish and Europe," the official fumed. But while the feud has deep roots in the treaty crisis, other issues have also boiled to a head.

Last Tuesday, French Fisheries Minister Michel Barnier, a former commissioner and a pro-European, lambasted Brussels for moving to ban tuna fishing in France at the height of the season as fishermen struggle with high fuel prices. "There is a problem of transparency and of confidence, and of working together with the European Commission," he complained, calling for a review of the EU's fishery policies, which are controlled by Brussels. Despite the very public spat, Barroso's spokesman, Johannes Laitenberger, played down the rift, as France's presidency closes in.AFP