FOLLOWING THE EUROPEAN UNION

FACTBOX-Main points of review of European soccer

Tue May 23, 2006 4:45 PM BST



May 23 (Reuters) - Following are the main recommendations of a review into how soccer in Europe should be run, released on Tuesday:

- EU and UEFA to agree a formal structure, with UEFA being granted offical recognition as the governing body for European football.

- EU to set up a "European Sports Agency" to oversee all sports institutions and bodies within the 25-member bloc.

- New EU regulations for players' agents to provide better transparency. It should include harmonised standards for agents contracts and the introduction of an agents' licensing system.

- An independent European clearing house to be set up for player transfers.

- All clubs to have a certain number of "home-grown" players in their squads coupled with a squad size limitation. The number of home-grown players or a definition of home-grown was not in the report.

- A higher proportion of money from the Champions League to be put aside by UEFA for grassroots football.

- Setting up a European code of corporate governance for clubs.

- The need to ensure the independence of clubs and combat multi-ownership. - The introduction of salary caps to be administered by European and national sports governing bodies.

- Putting the player release rule for international matches on a firmer legal footing. This FIFA rule says clubs have to release their players for national team duty without entitlement to compensation.

- UEFA to intruduce a collective insurance package for players injured during the European Championship.

Georgia shelves claim for place in Europe

By Mary Dejevsky
Published: 25 May 2006

The former Soviet republic of Georgia has put on hold all thoughts of an early application to join the European Union and is concentrating its foreign policy efforts on joining Nato.
The country's Prime Minister, Zurab Nogaideli, said Georgia sensed an "enlargement fatigue" in the EU and felt discussing EU membership at present was "counterproductive". It hoped, however, to be included in the next phase of Nato enlargement.

Mr Nogaideli was speaking in London yesterday, halfway through a week's visit to Britain, which has included meetings at Downing Street, the Foreign Office, the Ministry of Defence and with business leaders. One week is an unusually long time for a prime minister to spend visiting any one country and reflects what Georgia sees as Britain's pivotal position in Nato and the EU, and as a commercial centre.

Georgia, whose peaceful "rose revolution" in 2003 brought the westward-orientated Mikhail Saakashvili to power, has been pursuing a determinedly pro-Western policy focused on opening the country's economy to the outside world and the accelerated introduction of democratic reforms. Georgian officials also take every opportunity to stress the country's European credentials, initially making no secret of their ambition to join the EU.

As Mr Nogaideli made clear yesterday, however, Georgia now accepted that there was no prospect of EU membership in the foreseeable future. This, he said, was the message Georgia had taken from the "no" votes in France and the Netherlands on the European constitution. Unlike Ukraine, which still clings to the hope of early EU membership, Georgia has decided to focus on fulfilling the requirements of the EU's "action plan" under its neighbourhood policy. This, he said, should strengthen Georgia's claim in future.

Georgia does appear, however, to have been promised entry to Nato, if not next year, then soon thereafter. The thinking appears to be that Georgia's strategic position in the Caucasus, at the junction of Europe and the Arab world, would strengthen Nato's south-eastern flank. Mr Nogaideli stressed that membership had not been made conditional on a resolution of disputes with Russia. Such a condition might give Russia an incentive to prolong the disputes.

Talks with what Georgia's Prime Minister referred to as the "de facto leaders" of South Ossetia, a region adjoining Russia that has claimed independence from Georgia, are under way and, according to Mr Nogaideli, would have made more progress had Russia not tried to interfere. Georgia is moving to offer South Ossetia and Abkhazia, another pro-Russian enclave, enhanced autonomy.

EU may rename constitution in bid to secure approval

By Stephen Castle in Brussels
Published: 29 May 2006

Europe's constitution may need to have a more modest name before parts of it can be salvaged, EU foreign ministers said yesterday as they agreed to put away the moribund draft treaty for at least another year.

With no consensus on how to proceed, they bowed to the inevitable and extended the 12-month "period of reflection", announced after French and Dutch voters rejected the constitution in referendums last year. Decisions on the future will be made after the French presidential elections next year, and possibly not until 2009.

Ministers also sent a warning to some applicants for EU membership by agreeing to elevate the importance of a key precondition of new accessions: the bloc's readiness to absorb new countries. The move might allow smaller nations to be admitted while bigger ones such as Turkey would be blocked.

The meeting failed to find any immediate way forward on the constitution but also illustrated that the issue cannot be deferred indefinitely. All 25 nations need to approve the text before it can be put into effect, but only 15 have done so.

Though the issue of the name change was not discussed formally yesterday, several member states backed the idea of axing the name "constitution" - one element of the document deemed to have put off voters. The text combines existing treaties and proposes changes to help the new EU operate more efficiently.

At yesterday's meeting near Vienna, the European Commission president, Jose Manuel Barroso, said: "I like the name 'constitution'. But we need to have all member states on board."

Germany, one of the biggest supporters of the constitution, holds the EU's rotating presidency in the first half of next year when decisions may be taken. The Foreign Minister, Frank-Walter Steinmeier, insisted there was "no reason to give up" on the constitution, but suggested that the EU could copy Germany, which has a "basic law" rather than a constitution. He also said final decisions might have to wait until after a review of EU spending in 2008. "We need two more years. My horizon lies around 2009," Mr Steinmeier said.
Finland's Foreign Minister, Erkki Tuomioja, said: "Everybody agrees it was a mistake to call it a constitution, so that would be a very sensible change if that were needed." Finland hopes to become the 16th member state to ratify the treaty later this year.

However, one EU diplomat said: "You cannot rename something before you know what it is." Another added: "The name is only one of the things we have to change. We have to change the context as well."

At a summit next month EU leaders will have to decide whether to put another one-year time limit on the latest pause over the constitution. Austria, which holds the EU presidency, and Germany favour a clear timetable, though nations including the UK do not.

Most countries agree with Mr Barroso's strategy of spending the next year engaged on concrete projects to try to win over disgruntled voters.

Meanwhile, Austria sent out two distinct messages about the EU's frontiers. It sought to reassure nearby Balkan countries that they could become EU members. However, ministers agreed to elevate the importance of the EU's "absorption capacity" of new members as part of the so-called Copenhagen criteria which must be met before nations join.

The Austrian Foreign Minister, Ursula Plassnik, argued: "It's just common sense that you need to be ready for it if you want to take on a new member."

The Commission will define "absorption capacity" this year and it is likely to take into account the size of the country. That might make it possible to allow the accession of small, Balkan states but not Turkey.

EU loosens cross-border trade

By Stephen Castle in Brussels
Published: 30 May 2006

European ministers have backed a watered-down plan to boost cross-border competition in the EU's lucrative market in services, opening up a host of sectors, ranging from construction to private health care.

A deadlock was broken after the EU's new eastern European countries, which wanted to maximise the impact of the legislation, struck a deal with more cautious countries such as France.

The so-called "services directive" is the EU's most controversial draft law for years, and worries about it fuelled the "No" vote in France's referendum on the European constitution last year. French campaigners argued that the directive would mean an influx of cheap labour from former Communist countries that joined the EU in 2004.

In February, the European Parliament watered down the text and removed the controversial "country of origin" principle, under which firms could have operated in any of the EU's 25 member states as long as they abided by their home country's rules.

Yesterday, EU member states agreed on a host of technicalities, including the degree of effort member states should make to ensure that existing national laws do not erect barriers to companies from other EU states offering services.

Tory leader may abandon hardline policy on Europe

By Andrew Grice, Political Editor
Published: 08 June 2006

David Cameron is struggling to deliver the hardline policy on Europe on which he fought last year's Tory leadership election and may kick his plan into the long grass.

Mr Cameron wooed Tory Eurosceptics by promising to pull the party's MEPs out of the main centre-right group in the European Parliament, the European People's Party. But the Tories have not yet found enough allies to form a credible breakaway group and the party leader now has his first major policy headache.

William Hague, the shadow Foreign Secretary, will announce the Tories' next moves next month but insiders admit one option will be to announce further negotiations to be concluded in the long rather than short term. The Cameron plan suffered a setback when two potential partners, in Poland and the Czech Republic, became embroiled in a bitter row. The Tories have also held talks with a Dutch fundamentalist party which bans women candidates.

Tory MEPs are split on the issue, with pro-Europeans warning the party will lose influence in the parliament.

A Tory spokesman denied Mr Cameron's policy would be dropped. Mr Hague, who struggled to explain the policy yesterday, said: "We have not abandoned it in any way and I expect to make an announcement by the end of July."

In a speech last night, Mr Hague sought to bury the Tories' backward-looking "us and them" attitude towards Europe by setting out a forward-looking agenda on the EU's role in the world.

He told the Open Europe think tank: "I am a firm believer that Britain's place is in the European Union, a strong player in Europe, not at the margins. But that does not mean that we should abandon our critical faculties in examining the EU's predicament. We need a realistic assessment of the EU's successes and failures to decide what the EU needs to do more of, and what it should stop doing."

Tony Blair ridiculed Mr Cameron's policy, saying: "It would be a gross error of judgement and leadership to leave the mainstream groupings in Europe. It would marginalise the party in Europe. If ever they were to be the government, it would marginalise the government."

Britain accused of U-turn on public scrutiny of EU

By Stephen Castle in Brussels
Published: 12 June 2006

Britain will face furious accusations of "betrayal" from its European neighbours today as the Foreign Secretary, Margaret Beckett, tries to water down moves the UK once championed to open EU law-making to public scrutiny.

At a meeting of EU foreign ministers Ms Beckett will argue that plans to allow television cameras into almost all discussions on legislation go too far, too fast. She will also suggest that such proposals will force negotiation into informal and private discussions in the corridors away from the glare of the cameras.

The new minister's stance has provoked anger because achieving greater openness was a theme of the UK's six-month presidency of the EU which ended in December. When Tony Blair agreed to the European constitution he backed the principle of transparency which was written into the text. Then, when the constitution was rejected in referendums in France and Holland, the UK argued that greater openness was one of the measures that would help restore confidence in the EU.

One EU diplomat said there was "surprise" that reservations were coming from "the country which was promoting the topic during its presidency".

The package proposed today by Austria, which took over the presidency from Britain, would open up all discussions on legislation which has to be agreed by the Council of Ministers, representing member states, and the European Parliament.

Ms Beckett's aides say she has had a consistent view and is expressing doubts in her new job. A UK official said: "We feel the proposal of the Austrian presidency as drafted goes too fast too soon. Ms Beckett is not against transparency but the risk is that you will end up pushing the most sensitive issues into the margins".

Agreement can only be reached today if there is unanimous support. EU leaders are likely to have the final say when they meet in Brussels later this week.

Turkey's bid to join EU rescued from the brink of collapse - for now

By Stephen Castle in Luxembourg
Published: 13 June 2006

EU membership talks with Turkey were rescued from the brink of collapse yesterday as a diplomatic stand-off underlined the scale of the obstacles confronting Ankara's ambitions to join the bloc.

After tense negotiations, Cyprus removed its threat to block discussions, clearing the way for Turkey to hold its first of 35 sets of substantive talks with the EU. However, diplomats admitted that the crisis has bought no more than a few months respite until the autumn when another, more serious, showdown looms.

Yesterday Cyprus, which had demanded full diplomatic recognition from Turkey, settled for a tough warning to Ankara that it must live up to international agreements. That was seen as an indication that, unless Turkey moves on admitting Cypriot vessels to its ports by the end of the year, membership negotiations will be suspended.

After yesterday's row was resolved, the Turkish Foreign Minister, Abdullah Gull, played down the scale of the problems. "The ups and downs and difficulties of this process are natural. What counts is to achieve a result," he said. The Austrian presidency said that the first chapter of detailed negotiations with Turkey - over science and technology issues - could now be completed.

But there was little disguising the depth of the difficulties that loom. In the autumn Turkey will be asked formally to admit Cypriot-registered ships and aircraft at Turkish ports and airports, a move foreseen under the protocol to the Ankara agreement.

But Turkey insists that this cannot happen without concessions to end the economic blockade of Turkish-dominated northern Cyprus. Earlier this week the Turkish Prime Minister, Recep Tayyip Erdogan, repeated his determination to stick to that position.

Yesterday Ankara received a clear reminder that it must obey its obligations to extend its customs union to include Cyprus and nine other member states that joined the bloc in 2004.

At Cyprus's insistence, a document handed to Turkey said: "Failure [by Turkey] to implement its obligations in full will affect the overall progress in the negotiations."
The Cypriot Foreign Minister George Iacovou said: "Turkey must fulfil every single requirement. There is no way out." That position was echoed by the EU's enlargement commissioner, Olli Rehn, who said bluntly: "There is no linkage between the need for Turkey to respect its commitments in the relation to the Ankara protocol and the ending of the economic isolation of northern Cyprus."

Ursula Plassnik, Austria's Foreign Minister, added: "Positive signals have to be given that commitments will be met, particularly on the customs union, otherwise we will come up against problems sooner rather than later."

The approaching stand-off, which may lead to the suspension of membership negotiations with Ankara, has added to growing pessimism about the process, which is anyway likely to last a decade.

EU diplomats say that the reform process within Turkey has slowed since formal negotiations were started last October.

Some Turkish politicians have noted the negative stance of several EU member states towards the talks, and concluded that Ankara will never be able to join the bloc.

Cyprus has been split into an internationally recognised Greek Cypriot south and a Turkish-occupied north since a 1974 Turkish invasion sparked by a coup in favour of union with Greece. Ankara does not recognise the Greek Cypriot government in Nicosia, but supports the breakaway Turkish Cypriot state.

A UN peace plan to reunify the island was rejected by Greek Cypriots but supported by the Turkish north. At that point, the EU gave a political commitment to relax restrictions on the north. But since its admission to the EU in May 2004, Cyprus has taken advantage of its position as a member state to ratchet up the pressure on Turkey.

Jose Manuel Barroso, the European Commission president, has cast doubt on Turkey's prospects of European Union membership, as heads of government wrangled over moves to revive the moribund European constitution in 2008.

Mr Barroso said that getting Turkey into the EU would be "very difficult " and added many in Europe see the 70 million-strong, mainly Muslim nation as "culturally different".