Morning Brief (8-9)

Wednesday, 8 September 2010

Progress between EU and Serbia on Kosovo? Yesterday EU foreign policy chief Catherine Ashton met with Serbian President Boris Tadic. According to Serbian Blic online, “Brussels is offering Serbia a dialog over special status for the north of Kosovo and enclaves in the south as well as accelerated European integration”.

The conflict with 22 countries of the EU and the USA that began with submission of Serbian resolution to the UN General Assembly finally ended by Brussels agreement between Tadic and Ashton. The essence of that agreement is a call for a dialog between Belgrade and Pristina. Brussels and Washington have prepared offers which shall make possible for Serbia to bring to life its important national interests, in line with the reality and without recognition of Kosovo.

‘Nobody wants that Serbia as the biggest country in the region remains humiliated and unstable but it is necessary that it accepts reality. It is clear to us that we have to give something to the ruling democrats in Serbia what they can offer to their electors. That is yet to be discussed about in a dialog between Belgrade and Pristina’, a source close to Ashton’s cabinet says for ‘Blic’.

The agreement between Tadic and Ashton shall make possible that Serbian resolution, changed with amendments agreed by all 27 members of the EU is accepted at the UN General Assembly. After that negotiations, that nobody expects to be easy, can commence.

British Ambassador to Serbia Stephen Wordsworth said yesterday that the request by Serbia for the EU membership might be forwarded to the European Commission until the end of the year ‘if progress regarding Kosovo is made’. ‘It is possible that as early as in November the EU ministers take into consideration application by Serbia for the EU membership what would not happen had Belgrade not given up bringing in conflict the EU members over Kosovo. That was clearly said to Belgrade by German Foreign Minister Guido Westerwelle. It is most probably that it shall be the Great Britain to speak in favor of European integration by Serbia’, ‘Blic’ source close to Ashton’s cabinet says.

Serbia Prime Minister Mirko Cvetkovic expressed yesterday expectation that the UN General Assembly would accept resolution filed by Serbia with the text acceptable for the EU.

EP has postponed vote on EU-South Korea free-trade deal. The European Voice reports:

The European Parliament has postponed a vote on a safeguard clause in the European Union’s free trade agreement with South Korea to give time for negotiations with member states on proposed amendments.

The agreement is controversial because the automotive industry fears unfair competition despite a safeguard clause. The clause provides for the temporary suspension of certain provisions in case of a surge of South Korean imports that threaten domestic industries in the EU.

MEPs today (7 September) approved amendments to the safeguard clause that would allow the Parliament and industry associations to initiate an investigation that could lead to the activation of the clause. They would also make it possible for the safeguard clause to be applied only to a specific region that is especially hard hit by Korean competition, rather than to the EU as a whole.

Under the EU’s Lisbon treaty, the Parliament’s consent is required for the ratification of trade agreements, and MEPs have co-decision powers over implementing measures, such as the safeguard clause in the Korea agreement. The deal with South Korea was reached in October.

Trade ministers from the EU’s member states are to decide on Friday (10 September) whether the agreement should provisionally apply from 1 January even though the Parliament has not yet ratified it.

The member states are likely to approve the provisional application despite protests from MEPs, who see this as an attack on their prerogatives. Michael Theurer, a German Liberal MEP, said that applying the Korea agreement before the Parliament’s consent has been given would “violate the spirit of the Lisbon treaty”. MEPs are scheduled to vote on the agreement  in November.

AFP reports, however, that Italy threatens to veto the deal:

Italy will veto a free-trade deal between the European Union and South Korea unless changes are made or the implementation of the agreement is pushed back a year, the junior minister for foreign trade warned on Tuesday. “We have asked for changes, especially for the auto sector, but unfortunately our suggestions were not accepted,” Adolfo Urso told AFP. In order to be ratified, the deal will need to unanimously pass a vote on Friday by all 27 European Union member countries.

Urso said deferral of the deal’s application would give European automakers, who are vehemently against it, time to prepare for the lowering of trade barriers. Among other measures, the trade agreement reportedly includes the end to import barriers for South Korean cars in the EU in three years for high and medium-powered vehicles and five years for small cars. Urso said he doubted the changes would be made before the vote.

After a preliminary accord was inked in October 2009, the EU said it expected the deal, which could be worth up to 19 billion euros (24 billion dollars) a year to EU exporters, to be ratified by the second half of 2010. In 2009, the EU exported goods worth 21.5 billion euros to South Korea and imported 32 billion euros’ worth of goods, making it EU’s eighth largest trading partner.

Foreign policy in Barroso’s “state of the Union” speech. In a major speech before Parliament, the President of the Commission has, also talked about the EU’s global role. Here’s the relevant part (read full text here, watch the speech plus the debate here):

The final challenge I want to address today is how we pull our weight on the global stage.

When we deal with our every day problems, we sometimes lose perspective and forget our achievements. A peaceful and successful transition to a European Union that has doubled in size and is negotiating further accessions. A sound currency, the euro, that is a major currency of the world. A strong partnership with our neighbourhood that strengthens us all. If we act decisively, then we have nothing to fear from the 21st century.

As the strategic partnerships of the 21st century emerge, Europe should seize the chance to define its future. I am impatient to see the Union play the role in global affairs that matches its economic weight. Our partners are watching and are expecting us to engage as Europe, not just as 27 individual countries. If we don’t act together, Europe will not be a force in the world, and they will move on without us: without the European Union but also without its Member States. This is why, in my political guidelines, I called for Europe to be a global player, a global leader – a key task and test for our generation.

Together with High Representative and Vice-President Ashton, I will present our vision of how we can maximise Europe’s role in the world. With the European External Action Service, we have the means to match our aspirations.

In our globalized world, the relationships we build with strategic partners determine our prosperity. To be effective on the international stage, we need the weight of the European Union. Size matters, now more than ever.

A good example is the fight against climate change. Copenhagen showed that, while others did not match our ambition, we did not help ourselves by not speaking with one voice. Negotiations may have stalled but climate change has not. I want us to intensify our engagement with international partners to turn their press releases into credible commitments to cut emissions and push forward with fast-start funding.

The next two months will see crucial Summits with strategic partners (ie China and US). The more we are able to establish a common agenda with a clearly defined European interest, the more we will achieve. For example, I see huge potential in developing a transatlantic agenda for growth and jobs.

Where we are already punching our weight is the G20, the forum where the key economic global players address common challenges. When President Van Rompuy and I go to Seoul in November and represent the European Union, we want to see concrete results: Further progress in global economic coordination. More stable and responsible financial markets and agreement on reform of international financial institutions. More effective global financial safety nets. More progress on a G20 development agenda.

We will continue to show leadership in this forum and work closely with the French G8/G20 Presidency next year.

We also want to see support for the Doha Round. Trade boosts growth and prosperity. We will also pursue bilateral and regional Free Trade Agreements. In October, the Commission will present a renewed trade policy to drive new benefits for Europe.

Being open to the world also means standing side by side with developing countries, especially with Africa. When I go to the Millennium Development Goals High-Level Event in New York in 2 weeks’ time, I intend to commit, with your support and on behalf of the European Union, an extra €1 billion to the Millennium Development Goals.

Being a global player also means standing up for our values. Human rights are not negotiable. I am shocked about how the rights of women are being infringed in many countries. I am appalled when I hear that Sakineh Mohammadi Ashtiani is sentenced to death by stoning. This is barbaric beyond words. In Europe we condemn such acts which have no justification under any moral or religious code.

Our values also mean that we must come to the aid of those facing a crisis situation, anywhere around the world. Our humanitarian aid to Pakistan is the latest example of Europe’s solidarity in action. It is a striking example of the need to present the different contributions of the Commission and the Member States as a truly European aid package. The Member States have the helicopters; they have the civil protection teams. We now need to pool them to create a real European crisis response capacity. This is what the Commission will propose in October. And I urge the Member States to show they are serious about the Union punching its weight in this area.

We are making progress on a common foreign policy. But let’s be under no illusions: we will not have the weight we need in the world without a common defence policy. I believe now is the moment to address this challenge.

Comments on Barroso’s speech: Honor Mahony at the EU Observer here, the Economist’s (new) Brussels correspondent on his Charlemagne blog here.

Georgieva on Pakistan.
Kristalina Georgieva, Commissioner for International Cooperation, Humanitarian Aid and Crisis Response, has talked before Parliament about the humanitarian situation in Pakistan. Read her speech here. Parliament’s press release with a short summary of the speech and the discussion here. Watch the speech plus debate here.

From the think tanks: Julian Lindley-French, Britain and France: A Dialogue of Decline? Anglo-French Defence Co-operation and Implications for the European and Euro-Atlantic Security and Defence Relationships. Chatham House, here.

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