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Posts Tagged ‘European Commission’

I’ve already poked fun at Herman Van Rompuy, the nondescript über-bureaucrat who has risen to the non-elected post of European Council President. I’ve mocked Rompuy’s attempts to compete with other European politicians, and I encourage everyone to have a good laugh at this video of Van Rompuy getting eviscerated by a British MEP.

We now have a new reason to roll our eyes about Van Rompuy. He is whining about those mean, nasty bond traders who have decided that it is a somewhat risky proposition to lend money to Europe’s welfare states. Even though Van Rompuy has no experience with money (other than spending the fruits of other people’s labor), he imperiously thinks it is “absurd” to put Greece and Portugal in the same category as Ukraine and Argentina.

I guess he would prefer if everyone just pretended these countries were in good shape and able to pay their bills, sort of like a fiscal version of “The Emperor’s New Clothes.”

Here’s the relevant passage from an article in the EU Observer.

European Council President Herman Van Rompuy has lashed out at ‘bond vigilantes’ over the treatment of peripheral eurozone economies in recent months. Speaking in London after a meeting with Prime Minister David Cameron on Thursday (13 January), Mr Van Rompuy described recent events as “absurd” and said the likes of Greece and Portugal should not be treated the same as poor countries: “Recent market developments are sometimes rather strange. The spreads now show default risks for some eurozone countries bigger than for emerging countries like Ukraine or Argentina: that is absurd.”

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The contest between the United States and Europe for dumb public policy is always hard to judge. The Europeans tend to make more policy mistakes, though Obama certainly is giving them some stiff competition. America, by contrast, is prone to really inane bouts of political correctness. But perhaps the Europeans are catching up in that area.

Here’s something, for example, that sounds like it could have happened in San Francisco. The European Commission (the über bureaucracy of the European Union) sent out 3 million calendars to kids that mentioned significant holidays for the Muslim, Sikh, and Hindu religions, but omitted Christmas. Here’s an excerpt from the U.K.-based Guardian.

Italy has demanded that the European Commission recall millions of diaries that are being distributed to schoolchildren throughout the EU because they do not mention Christmas but they do give the dates of other religions’ festivals, such as Ramadan, the Islamic month of fasting, and Sikh, Hindu and Chinese feast days. …A Commission spokeswoman said it had “realised the absence of some important European religious holidays, in particular Christmas”. …But she gave no indication that Brussels would accede to Frattini’s demand to recall the diaries, which, according to the Italian daily Corriere della Sera, was contained in a letter to the commission’s president, Jose Manuel Barroso. …Some 3 million copies of the latest edition of the Europe Diary have been sent to schools. The commission’s spokeswoman said its main purpose was “inform young Europeans as consumers and citizens on issues like rights, choices as consumers [and] climate change”. …The commission…spokeswoman said it had cost €5.5m (£4.6m).

Being a fiscal policy wonk, I don’t worry too much about the War on Christmas. Yes, political correctness is nauseating, but it’s not as if the government is actually using coercion to stamp out Christmas. When I read stories like this, what catches my attention instead are disturbing details such as the hefty price tag of $7.2 million. Why is the European Commission squandering so much money on calendars? And once a decision has been made to waste money, why leave out Christmas? And why did they include extraneous material such as global warming propaganda?

Perhaps the moral of this story is that governments – and international bureaucracies such as the EC – have an amazing ability to squander money. Sometimes they waste money for PC reasons, sometimes for vote-buying reasons, and sometimes for corruption. All we know for sure is that taxpayers get lumps of coal in their stockings.

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I’m working on a serious blog post about European fiscal developments, but my research on that issue has alerted me to a couple of stories about President Jose Manuel Barroso that cry out for immediate mockery and abuse. Mr. Barroso, for those that don’t follow the exciting world of international bureaucracy, is the President of the European Commission. This is not an elected position (perish the thought of letting voters have a say in such matters!). Instead, he’s the chief bureaucrat of the sprawling Brussels-based euro-bureaucracy.

The first story is from the EU Observer, which reports that the European Parliament actually wanted to fine members that didn’t suffer through Barroso’s Castro-esque three-hour speech on the state of the European Union. Amazingly, the MEPs didn’t file a human rights protest against this proposed form of torture, but they did stage an internal revolt and the authorities backed down.

European parliament authorities have bid a hasty retreat from a tentative proposal to fine for non-attendance of today’s State of the Union speech after the idea was met with derision and anger by MEPs.

A meeting yesterday (6 September) evening of parliament president Jerzy Buzek and the 14 vice presidents of the EU assembly abandoned an idea to check up on just who was listening to European Commission president Jose Manuel Barroso’s speech and the ensuing debate.

…The original proposal agreed by the assembly’s political groups late last week envisioned three electronic checks over the three hour slot and a small fine for MEPs whose absence was registered twice.

A short debate on the issue before the presidential meeting already showed the way the wind was blowing.

UK Liberal MEP Baroness Sarah Ludford called the idea a “massive own goal” adding: “You have damaged the reputation of the European Union and indeed President Barroso.”

Mr. Barroso obviously is not happy about the fact that nobody knows who he is or cares what he has to say, because the next story is from the Telegraph, which reports that Barroso’s staff is being dramatically expanded in an effort to “boost his media and political profile.” But this is not just an example of how international bureaucrats waste taxpayer money. There’s also a very offensive and reprehensible plan to corrupt journalists by paying the expenses of reporters traveling with Europe’s deservedly-invisible chief bureaucrat.

Jose Manuel Barroso, the former Portuguese prime minister, will also have a photographer and television producer available 24 hours a day, as well as the services of a team of four speechwriters to call on at all times, under the new strategy to boost his media and political profile.

The new measures to “personalise” his image were revealed in a leaked letter written by Viviane Reding, the Justice Commissioner, who is in charge of EU communications.

…The EU has already come under fire for spending more than €8 million euros on entertaining, “training” and “informing” individual journalists last year, and devoted particular attention to those from Ireland in the run up to that country’s referendum on the Lisbon Treaty.

…The package of measures include a team of eight staff to update his website, monitoring and rebuttal of blogs criticising the EU, rapid verbatim transcripts of all the Commission president’s public remarks – and, from next month, a plan to pay the costs of reporters travelling with Mr Barroso or other commissioners to “important meetings abroad”.

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If misery loves company, we can be very happy with these two stories about over-compensated bureaucrats from outside our borders. The first comes from Europe, where the Daily Telegraph reports that pension costs are skyrocketing for bureaucrats with the European Commission and other European Union entities. With the average pension being more than $88,000 per year, that’s hardly a surprise. This adds injury to injury since EU bureaucrats already get paid much more than workers in the productive sector of the economy.

Internal estimates, seen by The Daily Telegraph, show huge cost increases as growing numbers of officials in an expanded EU qualify for retirement, often at a younger age than the taxpayers who fund their generous pensions.

Over the next three years alone, the cost of EU civil service pensions is expected to rise by 16 per cent to an annual bill for taxpayers of £1.3 billion.

… EU officials are allowed to retire at the age of 63, younger than Britons who have just had their retirement age increased from 65 to 66 by 2016.

…According to unpublished Commission figures, the pension bill will by 2040 risen 97 per cent to over £2 billion, with a British contribution of over £350 million.

…The average annual pension pocketed by the 17,471 retired eurocrats benefiting from the scheme is £57,194, while the highest ranking officials can pocket pensions of over £102,000.

Our second story comes from the Cayman Islands, where bureaucrats (as well as some politicians) have figured out the double-dipping scam, getting a lucrative pension while still receiving a salary. But the Cayman Islands at least deserve credit for limiting the damage. All bureaucrats hired after 1999 participate in a mandatory savings system, thus limiting the long-run risk for taxpayers.

A significant number of employees in the Cayman Islands Civil Service receive a monthly pension as well as a salary, according to records obtained by the Caymanian Compass.

There are 65 people who have retired from the civil service under the defined benefit pension programme – which means they are receiving a monthly pension while continuing to work in government, according to information from a Freedom of Information request made by the Compass. Those workers are typically employed on a fixed-term contract and, therefore, also receive a salary.

…There were 171 employees working in the civil service who were age 60 or over at the date the Compass made its open records request.

The ability of civil servants and Cayman Islands legislators to ‘double dip’ is not to the liking of at least one lawmaker, who raised the issue in the Legislative Assembly in June.

North Side MLA Ezzard Miller told the assembly that a change in the parliamentary pensions law in recent years has allowed elected officials to receive the same benefit as civil servants – to retire while continuing to serve in the assembly. In essence, Mr. Miller said, those lawmakers can “get a double dip” – continue to receive their salaries while earning a pension at the same time.

…Cayman Islands civil servants who joined the service after mid-April 1999 no longer receive defined benefit pension payments. In other words, the newer civil service employees will receive a lump sum payment from their pension funds rather than a monthly pension.

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