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OPEN EUROPE

EU Emissions Trading Scheme contributing to consumer energy price hikes; fears for Europe's heavy industry.
The FT reports that Europe's heavy industry could suffer under new proposals for the third phase of the EU Emissions Trading Scheme, which will begin in 2013. Europe's aluminium producers are among those unlikely to be able to absorb increased costs resulting from the plans. Steel, cement and chemical makers would need to raise prices by between 5 per cent and 48 per cent to cover costs, according to internal papers obtained by the FT. Member states currently set their own caps for emissions, but the Commission wants to set an EU-wide cap from 2013. A UK request to include transport in the ETS has been rebuffed.

The Telegraph notes that the ETS has been responsible for around half of the price hike announced by npower, which is expected to be followed by British Gas. npower's price rise will raise its average annual electricity bill by £64. The paper notes that the levy imposed on each customer as a result of the ETS is doubling to £30 a year.
Telegraph FT EUobserver

A leader in Swedish union paper Transportarbetaren argues that the Vaxholm case - which could allow for foreign companies in the country to set pay levels according to their own, rather than Swedish, collective agreements - undercuts the preconditions on which Swedish membership of the EU rests.
Transport

French Socialists call for boycott of Versailles
Les Echos reports that the leader of the French Socialist Party, François Hollande, and Jean-Marc Ayrault, the head of the party in the National Assembly, have called for a boycott of the Congress of Versailles on 4 February, at which MPs will vote for an amendment to the French Constitution to allow for ratification of the revised EU Constitution. Hollande said, "We would have had a referendum. We will not go to Versailles." Ayrault said, "It seems impossible to me that we should participate in the revision of the Constitution while defending a referendum." However, opponents of the revised Constitution have criticised the boycott, preferring MPs to turn up and vote, as a boycott will do nothing to help prevent Sarkozy getting the three fifths majority he needs at Congress, since only those votes expressed will count.
Les Echos

David Miliband is hiring a new £115,000 a year spin doctor, after having to "fend off whispers that No 10 had been briefing against him", reports the Pandora column in the Independent.

PA reports that the UK Government has paid the EU over £63 million in fines for the late payment of farmers' subsidies under the Common Agricultural Policy.
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