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Session 14-17 September: Buzek speech, Barroso 2nd term, SWIFT, Milk support

Institutions - 15-09-2009 - 16:24
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French farmers spill milk on September 16, 2009 to protest against plummeting milk prices.  ©Belga/PQR/L Montagne/G Jean-Louis

French farmers spill milk on September 16, 2009 to protest against plummeting milk prices. ©Belga/PQR/L Montagne/G Jean-Louis

MEPs in Strasbourg voted to boost Europe's troubled milk sector by backing Commission plans to shore up the market in the face of low prices at the farm gate. MEPs also demanded Ministers renegotiate a deal with the US on banking data (SWIFT transfers). On Wednesday MEPs backed a 2nd term as Commission President for José Manuel Barroso by 382 votes to 219. This focus includes a debate on the G20 summit, the inaugural speech of EP President Buzek and details of the debate with Mr Barroso.

You will find all the information you need to keep up with the plenary here - the dossier will be updated following debates and votes from the Chamber to give you all the latest news.
 
Section 1: Overview of main issues of the week
 
Section 2: Speech by new EP President Jerzy Buzek where he lays out his vision for the next two and a half years. Click on the 2nd link below to see what he said.
 
Section 3: José Manuel Barroso, the current President of the European Commission has been confirmed for a second term in a vote in the Parliament in Strasbourg - Wednesday 16 September. See section 3.
 
Section 4: G20 Debate: As world leaders prepare for the G20 Summit in Pittsburgh, Pennsylvania (24-25 September) to discuss the state of the world's economy, Members of Parliament debated international financial regulation and bankers' bonuses. Section 4.
 
Section 5: Privacy: New EU-US data transfer agreement challenged. MEPs are challenging the proposed agreement between the EU and the United States on the transfer of bank data via the SWIFT network. See section 5.
 
Section 6: Milk prices: more needs to be done, say MEPs: Existing aid to dairy farmers will continue until at least next February, MEPs agreed today. But they also warned that measures taken by the European Commission so far were not enough. Read section 6.
 
 
 
 
 
REF.: 20090904FCS60249

1: Main subjects of this session

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Vote on José Manuel Barroso's candidacy for Commission President

MEPs will vote on whether to endorse Commission President nominee José Manuel Barroso for a second five-year term Wednesday after hearing his statement to the House Tuesday.

Inaugural speech of EP President Jerzy Buzek

Following his election as European Parliament President in July, Jerzy Buzek will give an inaugural address to MEPs in which he will set out the political priorities for his term of office.  A former prime minister of Poland, Mr Buzek is the first MEP from one of the Member States that joined the EU in 2004 to be elected President of the House. He is a member of the European People's Party. The speech will be followed by a debate.

G20 summit in Pittsburgh: holding financial institutions to account

Bankers' salaries and bonuses, the supervision of financial markets and restrictions on the size of banks are the practical issues likely to be discussed when the Commission and the EU Presidency make statements to MEPs next Wednesday in Strasbourg.

Milk prices: public aid to be prolonged until February 2010

MEPs will vote on a Commission plan to prolong public aid to buy up butter and milk powder until February 2010 rather than ending this support from 31 August. The Agriculture Committee wants the measures on butter private storage to be extended to also include cheese.

Privacy: New EU-US data transfer agreement challenged

MEPs are challenging the proposed agreement between the EU and the United States on the transfer of bank data via the SWIFT network. A bone of contention is the choice of legal base by the Council of Ministers: MEPs are demanding to be involved in the drafting of the agreement. A resolution will be voted on Wednesday.

 

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2: Buzek stresses challenges of a "common" Europe

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The economic crisis, energy and relations with Russia were just three themes Jerzy Buzek raised during his speech to MEPs. Strasbourg, 15 September 2009.

The economic crisis, energy and relations with Russia were just three themes Jerzy Buzek raised during his speech to MEPs. Strasbourg, 15 September 2009.

Jerzy Buzek, the first President of the European Parliament to come from behind the Iron curtain used his inaugural speech to warn that the financial crisis was the most serious challenge Europe currently faced. He also spoke of the need for Europe to develop a coordinated energy policy and the need for the Parliament to be more open and dynamic and for citizens "to know who they voted for".
 
He said that his election was a "symbol" of the dreams of people who had come from behind the Iron curtain for a united and "common" Europe.
 
Challenges Europe faces
 
He then turned to the challenges he believed the EU faces, namely the economic crisis, the need for  European solidarity, energy and the environment, foreign policy and human rights and its system of values.
 
On the state of the economy he called for the European Union to stand together in the face of globalisation and resist protectionism. He emphasised the social cost of the recession: "There is no real community of solidarity when the most vulnerable are left on the sidelines".
 
In his speech, delivered in his native Polish, Mr Buzek also touched on the need for a balanced approach to immigration: saying it had "always brought benefits to Europe" although he stressed the need for integration into societies by those who arrive.  
 
Mr Buzek also stressed the need for women to be more integrated into the workplace: "We can not overcome the crisis without the huge potential, economic, intellectual and creative contribution of women. 
 
Turning to energy, he said "Europeans may not understand geopolitics; they do understand that the heating is turned off." He called for a common energy policy and more investment in renewable and fossil fuels. He also called for "a green revolution, to curb our extravagant lifestyles."
 
"Citizens must know to whom they give their votes"
 
On Parliament itself, Buzek talked about the importance of harnessing new communications technologies, both in future European elections and to ensure more of the Parliament's activities should be seen online. "Citizens must know to whom they give their votes" he told MEPs. The leader of the European People's Party Joseph Daul reiterated this, speaking in the debate later he said "we have to explain better what is at stake to all those who are Europeans and European citizens."
 
For the Socialists and Democrats, its leader, Martin Schulz, said that "you are taking up this job at a difficult time for everyone, particularly for the EP. For the first time we see the pro-European consensus is at risk in this house".
 
The Leader of the Liberals Guy Verhofstadt, told him "From your speech: it is quite clear that you have perfect experience here in order to bring about 3 objectives in coming years. First of all; to give the European citizens more voice, so they can be heard more, to make sure there is more democracy and also more European integration."
 
According to Green MEP Rebecca Harms, the financial crisis will make it even more difficult to achieve a bridge between East and West "because inequalities are weighing heavily on everybody's shoulders".
 
Fellow Pole Michał Kamiński, for the European Conservatives and Reformists Group told Buzek: "President, your election was a historical moment...even if our opinions differ we can achieve a compromise..."
 
Eva Britt Svensson, for the leftist GUE/NGL said that the Parliament should "open itself up and make sure that decisions are openly arrived at. If members of this house don’t feel involved in the work of the parliament how can we expect our citizens to feel involved? "
 
Francesco Enrico Speroni of the Europe of Freedom and Democracy Group (EFD) said "one of the problems...is we don't have a power of initiative. We are constantly writing resolutions, signing written statements which are not followed up..."
 
Relations with Russia/Enlargement of EU
 
On external relations, after stressing relations with South East Europe, Buzek also said "we must continue developing our strategic partnership with Russia, we can not let economic and political considerations ride roughshod over human rights, the rule of law, and democracy and this applies to China as well."
 
On enlargement he noted that it "continues to be one of our most successful policies" and that Croatia and perhaps Iceland appear to be coming closer to EU membership.
 
He also turned to the current Hungarian-Slovak dispute over minority and language rights and offered himself as a mediator in the dispute.
 
Tell President Buzek what you think
 
President Buzek has opened a debate on his speech on his Facebook page (English/Polish). Tell him what you think.  (Click on link below).
 
 
 
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3: MEPs approve Barroso as Commission President

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Barroso, 53, is a former Prime Minister of Portugal

Barroso, 53, is a former Prime Minister of Portugal

The European Parliament has approved the appointment of José Manuel Barroso as President of the European Commission, It will be Mr Barroso's second five-year term as Commission President.
 
Mr Barroso was elected by 382 votes in favour, 219 against and 117 abstentions in a vote held by secret ballot on Wednesday. The approval required a simple majority of the votes cast as the vote took place under the rules of the Nice Treaty. Abstentions did not count.
 
Previous votes on Commission Presidents:
 
22 July 2004 José Manuel Barroso 413–251–44
5 May 1999 Romano Prodi 392–72–41
21 July 1994 Jacques Santer 260–238–23
 
Debate on Tuesday 
 
The Parliament debated José Manuel Barroso's statement on Tuesday before the vote on his appointment for Commission President on Wednesday. Having defended his programme for the next five years before the political groups last week, Mr Barroso now presented his political guidelines to the full Parliament. The different political groups expressed their support for, or lack of faith in, Mr Barroso, some demanding more concrete action.
 
Mr Barroso focused on economic recovery combined with a social market, listing proposals he wants to implement if elected. "I am committed to fighting social dumping" he said, announcing a revision of the working time directive. He also promised initiatives to eliminate the gender pay gap. As for the EU budget, Mr Barroso proposed to "move towards an approach based on solidarity". He stressed "the EU must have a more transparent and efficient way of financing its policies".
 
Mr Barroso also promised changes in the Commission structure, with the appointment of commissioners for justice, fundamental rights and civil liberties, for internal affairs and migration, and for climate action, as well as "a scientific adviser for research and innovation".
 
Leaders of Parliament's political groups
 
The leader of the EPP-ED group, Joseph Daul, confirmed that his group would support Barroso's candidacy, although he warned that "this is not a blank check and you will have to fulfil our expectations". He also called on Mr Barroso to waste no time in setting up a new college of commissioners. "Citizens of Europe spoke in June in favour of the EPP" and "we now back Mr Barroso" because he has proved to be a "high-profile candidate".
 
Martin Schulz for the Socialists and Democrats stated that Mr Barroso did not have the support of the S-D group, although he confirmed that the group would meet tonight to take its final decision. "Europe needs a real change of direction" and Mr Barroso would be measured on this basis, said Mr Schulz. He continued by stressing the need for new European laws, such as a directive on public services: "This is about your programme, Mr Barroso, we cannot reduce Europe to just one man".
 
Guy Verhofstadt explained that the Liberal ALDE group would support Mr Barroso's candidacy provided responds to its specific demands on a common plan to clean up the banking system and a mid-term review to beef up banking supervision. "Some groups are not convinced by Mr Barroso's guidelines, but we have the responsibility to take a final decision as soon as possible".
 
"The Greens/EFA group does not have faith in you", said Daniel Cohn-Bendit, adding that "we think we deserve somebody better than you". He also demanded the postponement of the vote to take into account the result of Ireland's referendum on the Lisbon Treaty. "If the Irish people vote 'yes' to Lisbon, we will have a new situation for the Commission".
 
Michał Kamiński of the ECR expressed his support for the appointment of president-designate Barroso. "There are many issues over which we disagree with Mr Barroso, for example the Lisbon Treaty, but he is against national selfishness and that is why we support him."
 
Lothar Bisky of the GUE/NGL outlined the need for a "social, peaceful and environmental friendly Europe" and said Mr Barroso was the "wrong man for president if we want that kind of Europe".
 
Nigel Farage, on behalf of the EFD, said that the EP should not vote on Mr Barroso's candidacy until the Irish people had voted on the Lisbon Treaty.
 
Krisztina Morvai, a non-attached Member stood for a "fundamental change" in Europe and stressed that "we have to promote people's fundamental rights".
 
Council of Ministers
 
Cecilia Malmström, speaking on behalf of the Council, stressed again that Mr Barroso was appointed unanimously by 27 heads of state or government from different political parties. The importance of certainty, stability and effective action were some of the words used by the Swedish minister for EU affairs to highlight the need to resolve the appointment of the Commission President.
 
 
 
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4: Ahead of G20, MEPs debate financial regulation

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Sweden's Europe Minister, Cecilia Malmström (distance), listens to Monetary Affairs Commissioner Joaquin Almunia (standing) in the debate on the forthcoming G20 summit.

Sweden's Europe Minister, Cecilia Malmström (distance), listens to Monetary Affairs Commissioner Joaquin Almunia (standing) in the debate on the forthcoming G20 summit.

MEPs called for financial system regulation, restraint on bankers' bonuses and measures to reward long term endeavours, rather than short term profits Wednesday, ahead of the G20 summit of international leaders in Pittsburgh on 24-25 September. They also touched on  unemployment and the human cost of the recession.
 
Speaking for the largest group in the Parliament, the centre-right EPP, Corien Wortmann-Kool called for a complete overhaul of current practices: "We have got to cut through all the gordian knots when it comes to structural changes and risk management, increasing transparency (and) better regulation in terms of financial supervision as well." 
 
The debate comes as the EU will be represented by the Council and the Commission at the forthcoming summit. France, Italy, the UK and Germany are the only EU members of the G20, the other EU countries are members indirectly through EU membership.
 
Banker's bonuses under scrutiny
 
The issue of bonuses for people who work in the financial sector was also under the spotlight. Cecilia Malmström, Sweden's Europe Minister, told the House that bonuses must be in "reasonable proportion to achievements".
 
European Commissioner for Economic Affairs Joaquín Almunia called for "restraints" on bonuses in the financial sector and Miguel Portas of the leftist GUE/NGL called for the G20 to deal with the problem.
 
However, Kay Swinburne of the European Conservatives and Reformists urged the G20 to focus on coordinating the financial systems and not to get bogged down on discussions about bankers' salaries.
 
Reward long term endeavours
 
Speaking for the Socialist group Udo Bullmann said it "could no longer be business as usual". It is vital that the short term speculative financial practices that prevent people from realising the long term benefits of their endeavours be regulated, he said.
 
Mario Borghezio of the Europe of freedom and democracy Group told fellow MEPs: "European governments should put their money into the real economy into manufacturing, into people's s job as well."
 
Chinks of light?
 
Commissioner Almunia told MEPs that the "fiscal stimuli" and "automatic stabilisers" put in place by the G20 "have begun to stop the freefall in the economy".
 
Meanwhile, Ms Malmström offered "cautious hope" that the worst of the crisis had passed, but said international coordination and support for the real economy will remain key.
 
Mr Bullman warned that although there are "green shoots of recovery there would also be increasing unemployment".
 
The human cost of the recession, particularly in the developing world was picked out by Sven Giegold (Greens/EFA), who said it had led to increased unemployment, deeper poverty, difficulties for people with AIDS and increased infant death.
 
International cooperation
 
Sylvie Goulard for the Liberal ALDE group urged the House and European governments to continue with international cooperation, and a number of speakers called for regulatory convergence on both sides of Atlantic to avoid arbitration and speculation.
 
Commissioner Almunia noted that "the G20 must come up with a global system to reform the financial system". "In a radical change after 3 decades of market deregulation...we want stricter supervision and regulation of financial markets."
 
Ms Swineburn supported a common regulatory framework but warned that it would be a mistake to "move first on overburdensome regulation".
 
Mr Bullman said an international tax on financial transactions should be considered.
 
What is the G20?
 
The G20 compromises 19 large economies (eg US, China, India, Brazil) and the European Union. France, Italy, the UK and Germany are the only EU members of the G20, the other EU countries are members indirectly through their EU membership.
 
 
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5: SWIFT: new EU-US agreement will be renegotiated next year

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Privacy: New EU-US data transfer agreement challenged ©SWIFT

Privacy: New EU-US data transfer agreement challenged ©SWIFT

Under pressure from MEPs, the Council of EU ministers has agreed to renegotiate a deal with the US on the transfer of banking data next year, by which time Parliament may have a final say on such agreements under the Lisbon Treaty. Meanwhile, Parliament adopted a resolution setting out guidelines to ensure privacy is not harmed under the deal being negotiated at present.
 
In a resolution adopted today, MEPs repeated that the data transferred to the US authorities should be processed "only to fight terrorism" and that "storage and use must not be disproportionate" to this objective.  MEPs evoked the need to "strike the right balance between security measures and the protection of civil liberties and fundamental rights". EU citizens and enterprises should be granted an equal level of defence rights, and "judicial redress mechanisms" should be set up to prevent abuse.
 
During several debates in the Committee of Civil Liberties, Members had voiced their concern about Parliament being kept out of negotiations on the EU-US interim agreement on banking data transfers.  Beatrice Ask, the Swedish Justice Minister, announced yesterday that the text being negotiated with the United States "will not be in force for more than 12 months". Then, according to Commissioner Jacques Barrot, "an immediate renegotiation will take place under the Treaty of Lisbon", which would give Parliament the final say on the text.
 
Members questioned the choice of the legal basis by Council: in July, EU ministers decided unanimously to give the European Commission a negotiating mandate without involving Parliament. This, says the resolution, goes against the opinion of Council's legal service, who said this matter is of Community competence.
 
Background:
 
The question of SWIFT first arose in 2006 when the media revealed that the US administration was accessing data held by the Belgium-based financial network SWIFT on European citizens without their knowledge. Following pressure by the European Parliament, guarantees regarding privacy were given to ensure that the data collected was used purely for anti-terrorist purposes. In July this year, media articles appeared saying that a new agreement was to be negotiated following a change in the structure of the SWIFT company, which is building a new storage centre for its European data in Switzerland.
 
 

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6: Milk prices: more needs to be done, say MEPs

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French farmers spill milk on September 16, 2009 to protest against plummeting milk prices.  ©Belga/PQR/L Montagne/G Jean-Louis

French farmers spill milk on September 16, 2009 to protest against plummeting milk prices. ©Belga/PQR/L Montagne/G Jean-Louis

Milk prices: more needs to be done, say MEPs
 
Existing aid to dairy farmers will continue until at least next February, MEPs agreed today. But they also warned that measures taken by the European Commission so far were not enough.
 
MEPs approved, by 447 votes in favour, 70 against and 16 abstentions, draft legislation to extend aid for buying up butter and skimmed milk powder, which was due to end in August, to at least February next year. The aid should also apply to cheese, say MEPs. But in an additional resolution on the problems facing dairy farmers, MEPs also called for more action to address medium and long term problems in the dairy sector. Parliament has urged the European Commission repeatedly to do more to tackle the crisis.
 
The Commission should immediately introduce measures to stimulate demand for dairy products, along the lines of the funding for the school milk programme say MEPs. (6) They also want an EU Dairy Fund of EUR 600 million to be set up to aid producer organisations and cooperatives and to support farm modernisation. (4)
 
"Measures adopted so far are not sufficient to help farmers" said Paolo De Castro (S&D, IT), the MEP responsible for the legislative report and chair of the Agriculture Committee. "With the resolution we approve today, we call for more initiatives and we hope that (...) our proposals are taken into due consideration", he added.
 
Fairer prices for consumers
 
The Commission should improve price transparency within the food supply chain, according to the resolution, which was approved by 462 votes in favour, 78 against and 40 abstentions. A code of conduct governing the relations between producers and retailers was also proposed by MEPs. (AM 6) In many EU countries, prices paid by consumers are still high despite the fall in producer prices. (17)
 
Finally, Parliament asks the Commission to study ways, once export refunds are phased out, of preserving equivalent funding in the EU budget for the dairy sector (15) and allowing agriculture export credit insurance, as happens in the USA (16).
 
"Crisis is improving", says the Commission
 
Agriculture Commissioner Mariann Fischer Boel has announced extra measures to help the sector. These include the opportunity for Member States to provide temporary State Aid up to €15.000 per farmer and to buy production quotas from farmers and put them in the national reserve. These additional quotas would not count when calculating national production levels, thus avoiding the risk, for the Member State, of incurring a levy for exceeding its national threshold.
 
"The crisis is improving", said Mrs Fischer Boel, when replying to MEPs' questions in plenary. She explained that butter, milk and cheese prices were slowly rising and commented: "We are not yet where we want to be, but we're going in the right direction".
 
 

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Photo slideshow & 10 things we learned from the Parliament: 14-17 Sept

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This session of the European Parliament will be remembered for personality and policy. It saw a vote by Members to give Commission President Barroso a new mandate as well as the inaugural speech of EP President Jerzy Buzek. The week also saw Members vote to support draft legislation to extend aid for buying up butter and skimmed milk powder until February to help the beleaguered milk industry. Enclosed are 10 things we learned this week and a photo slideshow of some of the week's events.
 
1. Barroso gets a new mandate
 
MEPs elected José Manuel Barroso as President of the European Commission for the next five years. Now he has to propose his team of Commissioners to Parliament.
 
2. Buzek: 'a dream come true'
 
Parliament’s first president from behind the Iron Curtain spoke of the remarkable journey of former Soviet bloc countries and announced his top priorities: financial crisis, energy, Europe’s place in the world and a livelier, more open Parliament.
 
3. G20: the world needs 'a complete revision of the financial system'
 
MEPs demanded stricter rules and more supervision of global financial system ahead of G20 summit next week in Pittsburgh.
 
4. Visa-free travel is likely for the Balkans...but not for all.
 
Easier travel is coming for some in the Balkans. The Commission wants to scrap visas for citizens of Serbia, Montenegro or the Former Yugoslav Republic of Macedonia, but not yet for Bosnians and Albanians. Some MEPs worry about opening up new divisions. The Commission will re-open the dossier with the two missing countries soon next year.
 
5. SWIFT: MEPs see data protection at risk?
 
MEPs concerned by the possible privacy violations implied by the use of SWIFT banking data by US authorities. A new agreement on data protection between EU and USA will be negotiated next year.
 
6. It happened again this summer: forest fires
 
Parliament wants better EU coordination to deal with fires and support for reforestation and rebuilding in areas hit by fires this summer. They also condemned property speculation in fire affected areas.
 
7. Milk crisis: the EU should do more
 
MEPs approved draft legislation to extend aid for buying up butter and skimmed milk powder, which was due to end in August, to at least February next year and that the aid should also apply to cheese.
 
The Commission should immediately introduce measures to stimulate demand for dairy products, along the lines of the funding for the school milk programme say MEPs. They also want an EU Dairy Fund of EUR 600 million to be set up to aid producer organisations and cooperatives and to support farm modernisation.
 
Members also said the Commission should improve price transparency within the food supply chain, according to the resolution, which was approved by 462 votes in favour, 78 against and 40 abstentions. A code of conduct governing the relations between producers and retailers was also proposed by MEPs.  In many EU countries, prices paid by consumers are still high despite the fall in producer prices.
 
8. 2010 should bring a budget for recovery
 
The Commission says economic recovery is at the heart of its spending plans for 2010, with 45% of EU budget to go into growth and employment measures. Have they got it right?  MEPs will decide on the budget by the end of the year.  
 
9. Lithuanian gay law preoccupies MEPs
 
Many Members were concerned about fundamental rights, warning against "all forms of discrimination" reacting to the draft Lithuanian law that would prohibit 'dissemination to minors of information whereby homosexual, bisexual or polygamous relations are promoted'. 
 
10. Plans are afoot for more secure, cleaner energy: Nabucco and Desertec
 
MEPs looked at two huge projects for secure, sustainable, competitive energy supply in Europe: The Nabucco pipeline to import gas from Caspian Sea and Desertec to provide solar energy from the Sahara.
 
 
 
 

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