Comment posted in response to City attacks ‘flawed’ EC analysis of transaction tax merits (Daily Telegraph website, 13 Feb 2012)
There is no contradiction – as alleged by today’s letter from financial sector representatives – between the European Commission’s general position on the benefits of derivatives and Commissioner Semeta’s arguments supporting the financial transaction tax (FTT) in the Telegraph on Friday.

In using the term “socially useless” activity, Commissioner Semeta was not referring to derivatives in general and there is nothing in his article that could justify that reading.

Rather, he was alluding to certain types of activity, such as some automated High Frequency Trading, that redistribute rents instead of creating value. This type of activity offers no positive contribution to the rest of the economy and arguably played a part in bringing about the financial crisis.

Lord Turner, of course, famously made a similar point.

With regard to the figure of 90% decrease in trading of …

The inclusion of airlines in the EU’s emissions trading scheme is not intended to raise prices for travellers but to provide incentives for airlines to cut emissions.  This is not some kind of imposition by the EU. The UK fully supported the scheme.  

Until 2020 permits will be over 82% free

If airlines pass on to travellers only the real additional costs to themselves, the actual cost to passengers at current carbon prices is estimated to be well below £2 per one-way transatlantic flight until 2020.

Even if they add to ticket prices the market value of permits they have been given free, this should amount to a maximum of about £5 per one-way flight.

During that period to 2020, airlines will have time to adapt and to modify fleets and behaviour to cut emissions.

All revenues from the scheme will be invested in R&D to tackle climate change, and in particular that caused by …

Great to see the Daily Express front page praising an EU initiative, even if it doesn’t recognise it as such – “Cheap phone calls for all”, 16 March 2011. The OFCOM measures are in response to a European Commission decision in May 2009 requiring all EU countries, including the UK, to ensure mobile termination rates are reduced so as to reflect the costs of making a connection with other networks. An undisputed benefit for consumers in the UK and in the rest of the EU.

An article in last week’s Sunday Times claims that chairs purchased for our new offices at Smith Square cost £800 each. The same model may cost that much on the high street, but they were bought for our office after a competitive tender, so we didn’t pay anywhere near high street prices.

The Evening Standard claims that EU officials demand rise in pay and pensions, 21 September

There is no planned increase in pensions – in fact, average EU civil servant pensions are declining. Recently, Eurostat prepared a report with projections for the future costs of the pensions system in the next half century. This report shows that a reform of the EU civil service introduced in 2004 will result in huge savings on pensions. Without it, the bill would have been a lot higher. Finally, the projections show an increase until 2046, followed by a decrease both in the number of pensioners and in the total bill.

In an article on 19 March the Daily Telegraph challenges the European Commission for funding projects in the culture and creative industries during a recession.
The article misrepresents the funding available under the EU Culture programme in two important respects:
 
 First, it suggests the EU has earmarked 366 million pounds for culture projects in 2010. In fact this figure relates to the whole seven-year budget period (2007-2013) and covers the 34 countries participating in the Culture programme (EU27 + Croatia, FYROM, Iceland, Montenegro, Norway, Serbia, Turkey).
 
Secondly, the biggest grant mentioned in the article – £900,000 for the …

Western Morning News, 26 April 2002, p 22
St John Ambulance is facing a financial crisis as a new European regulation will force them to replace their emergency vehicles within the next 18 months. … The introduction of the new EU directive will mean huge costs for the organisation as it attempts to comply with them, placing a huge financial burden on its resources.
There is no EU legislation that will force St John Ambulance or the National Health Service to replace their emergency vehicles. This was confirmed as long ago as 25 May 2000 by Gisela Stuart MP, the then junior health minister, in a written answer to Sir Teddy Taylor MP.

‘Following a period of consultation with manufacturers and users, two new European standards for ambulance vehicles and their equipment were recommended by the European Committee for Standardisation (CEN) in August and September (1999). Membership of CEN is wider than EU …

Statement: Passports or driving licences must now be produced by those entering gambling joints under new EU rules.
Source: The Sunday Times (2 April 1995)

Response: This issue has arisen out of the implementation of the EU Directive on money laundering* in the UK.
Neither the EU Directive nor the UK Regulations supply detailed prescriptions, leaving the industries most likely to be affected to work out the details. In this case the relevant industry regulator, the Gaming Board, having consulted the industry, produced its own ‘Code of Practice’, which instructed casinos that they ought to tighten up their entry procedures, particularly with regard to membership.

* – Directive 91/308 (OJ L166, 28.06.91).

Myth: The EC is to ban the serving of rare in restaurants as it contains “too  much bacteria”. This, together with other similar rules, is causing immense problems for restaurateurs and helping to drive out their customers.
(The Observer, 19.09.1993, page 2)
Response: This is wholly untrue. The EC has no such plans, and firthemore its Food Hygiene Directive. which lays down the guidelines in this sphere, does not in any way apply to retailers (i.e. butchers, restaurants and pubs) but only to those operations carried out before the point of sale.

Myth: EC spending on agriculture is out of control, with subsidies having risen by some 6% from 1991 to 1992 when in fact they were supposed to have fallen. It is, furthermore, subject to fraud on an unprecedented scale.

Truth: In fact, EC subsidies in agriculture were lowered by 7% (in terms of ECU) for the above period. However, with sterling’s devaluation this figure was translated into a 6% rise in pounds sterling.

It has to be borne in mind that the detection of fraud is principally up to the Member States’ national authorities rather than the European Commission.