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ImageLast night’s EU election results can be read in two ways.

  • First, the status quo continues, with European People’s Party (EPP) expected to be the largest political group with 212 seats, followed by the Socialists & Democrats (S&D) on 185, with the Liberals trailing in third place with 71 seats.
  • Together with the Greens with 55 seats, this ensures the European Parliament has what could loosely be considered a pro-European majority, and this alone should ensure that policy-making during the next mandate will be largely unchanged, in the sense that laws will get passed, motions will be tabled, and the legislative agenda rumbles along.

That is one way of looking at it. Here is the second.

  • Undoubtedly this has been an historic night for the parties representing the Far Right, the Far Left, and the Eurosceptic bloc. In France the National Front became the largest party in the European Parliament, an honour shared by the UK Independence Party (UKIP) in the UK and the Far Left Syriza in Greece.
  • However, it is not clear whether these parties will be able to work together – UKIP has already stated that it cannot form a political group with the National Front, and historically parties on the political extremes have failed to form a cohesive unit. With a party group needing to be composed of at least seven Member States, a critical few weeks awaits.
  • Moreover, it should be remembered that MEPs from these parties do not draft legislative reports or play a meaningful role in the political process, meaning that their legislative impact will be limited, even if they continue to make a lot of noise.

The scramble to be kingmaker

  • For all that EPP and S&D remain the largest blocs, both lost large numbers of seats (61 and 11 respectively), and the beneficiaries were undoubtedly MEPs which are not aligned with any existing political group.
  • As many as 67 MEPs have yet to declare which party to stand for, leading to uncertainty over which of the smaller groups could be considered “kingmakers” in the new Parliament.
  • At the current time it looks like most laws will have to get passed through a “grand coalition” made up of the S&D and EPP, which could create problems on certain dossiers, not least those of an economic and financial nature.

A new Commission President in the wings

  • And what of the Commission? The EPP’s victory means that Jean-Claude Juncker, the party’s candidate for Commission President, should theoretically be the Parliament’s first choice. Yet, not only will he likely be black-balled by the Council, there seems to be a likelihood that he will not get the necessary majority in the Parliament. The same scenario confronts the S&D candidate, Martin Schulz and the Liberal candidate Guy Verhofstadt.
  • Step forward then Danish Prime Minister Helle Thorning-Schmidt. As a Social Democrat she would win the hearts of her party group, as a Scandinavian of a non-Euro country she could win over some of the European Conservatives and Democrats group, as well as the Greens and the far left GUE/NGL – all of which would give her a Parliamentary majority. The fact she is an alumnus of the College of Europe no doubt stands her in good stead too.

Time for talk is over

  • It is customary for politicians from the centre to claim they have “learnt the lessons” from such results and to acknowledge the strength of anti-EU and a broader anti-establishment feeling.
  • Yet they said the same thing five years ago, and five years later there are more – many more – MEPs from the extremes of the political spectrum sitting in Strasbourg and Brussels.
  • Indeed, at 43% turnout was up for the first time ever in EU Elections, yet this seems to have played into the hands of parties who want to destroy the entire political dimension of the European Union.
  • For those bent on repelling the anti-EU forces, the time for talk is over. There needs to be real engagement from the centre parties towards the Eurosceptics, and fundamental questions have to be asked about how the EU can win back the hearts and minds it has lost, not just over the last five years, but over recent decades.
  • These elections represent a challenge to the political class – they must meet it head on, or risk becoming politically irrelevant.

– Rob

Although the talks between the US and the EU were ultimately cancelled last week due to the government shutdown, the EU-US negotiations are moving forward.

We are therefore pleased to present you with the October edition of the Pondhopper, Grayling’s transatlantic e-zine providing you with differing perspectives on issues currently spanning ‘the pond’.

Please do not hesitate to contact us if you have any questions on the attached or if you would like to learn more about Grayling’s transatlantic governmental affairs offering.

Follow us on Twitter @TheEULobby

Countries who take over the EU Presidency in the second half of the year always complain that they have drawn the short straw.

Sandwiched between the Summer holidays and the Christmas break, these Presidencies like to point out that they only have a three month window – September to end November – to make realistic progress on the dossiers.

Lithuania’s task is made even harder given the need to finalise what is on the table before the EU elections in May next year, with the legislative slowdown due to kick in from March.

For a first-time Presidency and a small country, this is no easy task.

Such countries are often eager to succeed during their time in the EU limelight, but there is a danger that Lithuania could be overwhelmed, both in terms of the sheer number of dossiers and the political struggles within the Council.

Indeed, Presidency or no, there is no doubt who still calls the shots.

If turning the EU around is akin to turning round an oil tanker, then Chancellor Merkel is very much on the bridge, steering the EU through troubled waters.

Moreover, with Lithuania not a member of the Eurozone, it will not be able to influence the engine-room of fiscal and monetary integration which is still largely driven by France and Germany and remains the headline issue for the Eurozone at least, if not the EU as a whole.

In past times it used to be said that “all eyes are on the Presidency” – not anymore.

With the new roles for President Van Rompuy and Commissioner Ashton, and the Eurozone taking centre stage, rotating Presidencies are now reduced to that of policy mandarins, digging into details and marrying the interests of the divergent Member States.

Important, undoubtedly. But headline-grabbing? Absolutely not.

Maybe this suits Lithuania just fine.

– Rob

To see Grayling’s full preview of the Lithuanian Presidency, click here!

German Euros (Euro background by Petr Kratochvil from http://www.publicdomainpictures.net)

Germany appeared to take a decisive step back from her traditional post-war role as paymaster of Europe today when Chancellor Angela Merkel issued harsh words on the prospect of a European bailout for the crippled Greek economy.

During the government’s debate on the 2010 budget she warned against premature European action which might not actually solve Greece’s problems in the long term and could also actually weaken the Euro further, and stated that a rash show of solidarity was not the right solution.

In addition she expressed her support for Finance Minister Wolfgang Schäuble’s idea of putting together an agreement which would be able to exclude future persistent offenders from the Eurozone as a last resort. According to her, current provisions are not sufficient to deal with a situation where a Eurozone country is on the brink of insolvency. She believes a new agreement is crucial for future cooperation.

This reluctance to pay out to Greece seems at odds with Germany’s usual role as financial martyr to the EU cause.  So is the Federal Republic’s long-term love affair with all things EU showing signs of fatigue?

Or is Angie merely trying to placate her public, who, during times of financial uncertainty at home, certainly don’t want to be dishing out the Euros to those abroad?!

Indeed, behind her stern stance towards a rapid rescue for Greece surely lies a genuine concern for and continued commitment to the success of the currency union.

Keine Panik, Germany hasn’t given up on us yet!

– Rhian

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Human rights take another beating this week in the village of Ostrovany, in the Eastern region of Slovakia.

In order to prevent the town’s Roma inhabitants from stealing fruits and vegetables from Slovak villagers’ gardens, a large wall has been built around the entire Roma community. The wall cost €13,000, is 150-metre-long, and is intended to isolate the Roma community from the Slovak population of the village. The Slovak inhabitants have welcomed this form of “protection” from their neighbours, although it seems to the Lobby to be a fairly ineffective way of preventing theft.

This is not the first instance of such a discriminatory act between Slovaks and Roma in Eastern Slovakia. The equivalent would not go unnoticed in France or the UK, but no EU media has picked up on the story yet. Media aside, the EU itself has made no statement to acknowledge the new wall.

These types of conflicts have been going on for years in Slovakia, and without recognition from the EU, the Lobby deplorably believes that they will continue to do so for the forseeable future.

-Victoria

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RussiaYou might find it hard to believe, but Andriej Bogdanov, Director of the European Integration Centre in Moscow and former presidential candidate of the Democratic Party of Russia, declared at the V Forum Europe – Russia in Bucharest that 64% of Russians would like to see their country join the EU.

The result may seem astounding, given the support the Russian people extend to Vladimir Putin and Dmitry Medvedev who are both keen to preserve the Russian sentiment of a “great empire”. However, the sceptics (as well as the fearful) among you towards such an endeavour should really lose no sleep over this, since Russia will hardly fulfill the conditions of accession.

With 15% inflation, an 8% fall in GDP this year, and a democratic system that has been called into question, Russia’s accession to the EU is set to remain a pipe dream…

– Agnieszka

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