open europe Sarkozy: "there would be no Treaty if we had a referendum in France" - contradicts Brown's pledge of no more integration for a decade
The Telegraph reports that in a closed meeting of senior MEPs yesterday Nicolas Sarkozy admitted that referendums on the revised EU Constitution were "dangerous" and would be lost in France, Britain and other countries. He said, "France was just ahead of all the other countries in voting no. It would happen in all member states if they have a referendum. There is a cleavage between people and governments. A referendum now would bring Europe into danger. There will be no Treaty if we had a referendum in France, which would again be followed by a referendum in the UK.">{? Earlier, in a speech in front of the parliament in Strasbourg, Sarkozy said, "The simplified treaty is a political victory of Europe over herself. It is a victory of European consciousness expressed in politics." He also contradicted Gordon Brown's promise that he would oppose any further European integration for at least a decade. He said, "It would be a mistake to think that with the simplified treaty we have sorted everything, we can sleep easy and that no other issues are pending... Now we have got to resolve the political issues and to broach them without fear. We have got to debate them without taboos. Budgetary policy, trade policy, monetary policy, industrial policy, taxation, all policies, any policies." According to EUobserver he said the revised Constitution allows Europe to "take decisions and to act. But it does not say with what goals and with what purpose. Political questions still have to be dealt with," adding that this is why he is proposing the creation of a wise committee to discuss "without taboos" where Europe is going.

The FT reports that Sarkozy said Europe had to be seen "as a protector, a life-enhancer, as a magnifier of strength, and as a shining cultural and political example". He also repeated his support for the principle of "community preference" for EU businesses, saying the word "protection" should not be taboo in Europe. He said, "The word protection should be not be outlawed, we must be able to protect ourselves as much as others do. If others have the right to protect themselves against dumping, why not Europe? If other nations put industrial policies in place, why not Europe? If others defend their farmers, why shouldn't Europe defend its farmers?"

According to the FT, Sarkozy also made clear he had no intention of ending the European Parliament's costly move each month from Brussels to Strasbourg for its plenary sessions, telling party leaders there was "zero flexibility" in the treaties for such a change.

The FT reports that Sarkozy's speech won a lukewarm response from members of the European Parliament, with some of the loudest applause coming from socialist deputies particularly for his attack on the "capitalism of speculators".
England Expects Sun FT Telegraph EUobserver El Pais

EU accounts not signed off for 13th year in a row - £6bn of UK contributions open to fraud
The European Court of Auditors has failed to sign off the EU's accounts for the 13th year in a row. The European Court of Auditors' (ECA) report for 2006 issued a "qualified" opinion on EU expenditure, saying that "errors of legality and regularity still persist in the majority of EU expenditure due to weaknesses in internal control systems both at the Commission and in Member States."

The Express reports on Open Europe research which found that as much as £6 billion of the UK's annual contribution to the EU is open to fraud. Open Europe's Hugo Robinson was quoted saying, "After 13 years, the EU still hasn't got its own house in order when it comes to sound book-keeping." Auditors found that money supposed to be going to farmers was actually being claimed by "railway companies, horse riding or breeding clubs and golf or leisure clubs and city councils."

In the Telegraph, Dan Hannan predicts that such stories will eventually lead to the UK leaving the EU. He writes, "When I was first elected eight years ago, I used to get furious letters about Euro-fraud. Who the hell were these shameless Euro-creeps? Could no one control them? But those letters have gradually dropped off. Anger has turned to contempt. People have given up on any hope of reform: they know that Brussels will never change and, in truth, they no longer much care. Sooner or later, almost matter-of-factly, they will initiate divorce proceedings."
Sun IHT Telegraph-Hannan BBC AFP FT Guardian Open Europe press release

Rassmussen narrowly wins Danish elections
In the Danish parliamentary elections, Anders Fogh Rasmussen's centre-right government has secured a third term in office, although Rasmussen's Liberal party will still depend on the Conservative Party and the Danish People's Party to form a government. The centre-right coalition won 89 seats in the 179-seat Folketing or parliament, against 81 for the centre-left. In addition, one of the four MPs from the Faroe Islands and Greenland has indicated support for Rasmussen, which would give the coalition the 90 seats needed for a majority in parliament. However, Rasmussen may still seek the support of centre-party New Alliance, Politiken reports. New Alliance and the People's Party have fundamentally differing views on immigration in particular, although both favour a referendum on the revised EU Constitution - something which would make a "grand coalition" difficult.
Politiken Berlingske Svenska Dagbladet EUobserver FT Guardian

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