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Former Chancellor: "We need to fight" proposed EU hedge fund regulation;
Swedish government highlights need to re-work proposed regulation
In an interview with City AM, former Chancellor Lord Lawson said of the EU's proposed regulation of hedge funds and alternative investment funds, "We need to fight this legislation. Hedge funds do take risks but it is striking that while everyone is worried about them - largely because they don't understand them - hedge funds haven't had a problem throughout this." He went on to say, "This is being done from a European perspective because we have in London 80 to 90 per cent of total hedge fund business in the whole of the European Union. They are jealous of that success."
The Economist's Charlemagne blog quotes Swedish Financial Markets Minister Mats Odell - whose country is holding the rotating Presidency - saying, "Sweden is not a superpower that can impose its views on others. But we try to be based on facts. And if you look at the facts, it is very hard to say that private equity and hedge funds caused this crisis. That is not to say we should not regulate them, but we should not kill the industry."
In a memorandum to the Riksdag, the Swedish government highlighted the need to re-work parts of the proposed Directive, including separating between different types of funds and making sure that fund managers are not subject to stricter requirements than the companies with whom they compete.
A leader in Swedish daily Aftonbladet criticises the Swedish centre-right government for seeking changes to the proposed Directive, despite previously promising tougher rules for alternative investment funds. The article notes, "Nicolas Sarkozy and Angela Merkel capture a popular criticism of short-term speculation which is fully justified. The French President should ask [Swedish PM] Fredrik Reinfeldt where his election promises went."
City AM Economist: Charlemagne's notebook Memorandum to the Riksdag Aftonbladet
47 percent of Conservative candidates in favour of repatriation of powers from the EU;
In the Guardian, Patrick Wintour looks at a survey by Conservative Home of 144 Conservative candidates from the 220 top target or Conservative-held seats.
Asked about the UK's relationship with the EU, only 10 percent agreed with the statement, "The next Conservative Government should retain Britain's current relationship with the European Union as it is but cede no further powers to the EU". 47 percent agreed that, "The next Conservative Government should seek to repatriate powers in some areas from the European Union to Westminster", while 38 percent went further, agreeing that, "The next Conservative Government should seek a fundamental renegotiation of Britain's membership of the European Union".
Only 5 percent agreed with the statement, "The next Conservative Government should seek wholesale withdrawal from the European Union."
Guardian: Wintour Conservative Home Conservative Home: Survey
German governing parties in dispute over powers to be given to Bundestag over EU law
FAZ reports that the German CDU and its Bavarian counterpart the CSU are arguing over the extent of the Bundestag's influence on Germany's EU policy, following the demands of the German Constitutional Court that the Parliament have more say in EU law-making. The CSU is pushing for the German Parliament to have far more influence than CDU MPs want. CSU MPs are planning a three-point catalogue of demands, including a Basic Law amendment, which according to FAZ means essentially committing the federal government to gaining Bundestag consent in all Europe policy decisions. Politicians are looking for inspiration to the Austrian and Danish systems of parliamentary scrutiny.
Meanwhile, commenting on the Constitutional Court's judgement, Sueddeutsche says: "This is a very important judgement, since it clearly highlights the significance of the nation-state. Anyone who gives the nation-state precedence in this way is not necessarily anti-Europe". Polish newspaper Polska runs the headline: "Germans decide that states are more important than Brussels".
Czech President Klaus argues in Czech daily Dnes that the demands by the German court have not corrected the shortcomings of the Lisbon Treaty. He says: "I don't believe it's possible to eliminate the well-known faults of the Treaty of Lisbon by means of an accompanying law. It would be too easy," adding "It's not by chance that they propose resolving the contradictions between the treaty and the constitution by changing the country's legislation and not the treaty". He criticises the increasing weight of constitutional courts in judging the Lisbon treaty, saying this has resulted from the lack of serious political confrontation over the Treaty, and says, "I am convinced that the debate will go on and we are still a long way from the end".
AFP FAZ FAZ 2 Spiegel Tagesspiegel Zeit
Lord Myners: EU council meeting conclusions were "in accordance with what we set out to do"
In a debate in the House of Lords yesterday on EU proposals for increased EU-level financial supervision, City Minister Lord Myners said that the outcome of the EU Council meeting and the ECOFIN finance meeting was "absolutely in accordance with what we set out to do, which was to ensure that the holder of the ECB presidency did not naturally chair the European systemic risk council and that the three upgraded Lamfalussy level 3 committees should have advisory but not statutory responsibilities for supervision." He also said that he was "regularly engaged with the Commission and with the new Swedish presidency to fight Britain's corner" on the EU's proposed hedge fund directive.
Charlemagne: Swedes favour consensus for EU financial regulation
The Economist's Charlemagne column looks at the beginning of the Swedish EU Presidency and notes that because EU decisions on financial regulation can be taken by majority voting, some countries would be happy to outvote Britain and impose rules that would rein in the City of London, but the "Swedes believe that consensus is the best way to take long-term decisions that all can live with".
It says, "When it comes to the Lisbon treaty, Swedes are wary of anything that smacks of EU bossiness, or a power-grab by big countries...Swedish ministers are dubious about the new job of president of the European Council, preferring the idea of an "elected chairman" who can organise meetings of the 27 leaders." The column also describes Sweden's Foreign Minister, Carl Bildt, as a "giant in a Europe of diplomatic pygmies" and suggests he would make a "fine EU foreign-policy chief".
Meanwhile Le Monde writes that, as French President Nicolas Sarkozy visits Sweden today, there is serious tension between Paris and Stockholm. The biggest disagreement is over the question of Turkey's EU accession, which Sweden strongly supports.
The Swedish Presidency has also introduced 'Twitter' feeds to post brief remarks from key advisers and press secretaries to Swedish ministers to offer insight into the Presidency.
Economist: Charlemagne Monde Monde 2 Sweden 2009 SvD
Henry Porter: UK's proposed e-Borders programme violates EU's principle of free movement
On his Guardian blog, Henry Porter writes, "Evidence presented to the home affairs select committee on Monday suggests that Britain's plans to use airline, ferry and train operators to collect 53 pieces of information from everyone leaving the country may be illegal under EU law."
John Blundell: Cameron will have to initiate "a process of deregulation which stops the regulatory tsunami"
La Razón reports that the Director of the Institute for Economic Affairs, John Blundell has criticised Gordon Brown saying Brown was "arrogant" as Chancellor of the Exchequer for ten years and that the economy will be the fall of his government.
He added that David Cameron faces numerous challenges, including stopping "the tsunami of new regulation emanating from Brussels". He added that Cameron will also have to "negotiate a new relationship with the EU".
La Razon FAECS Debate OE Research
European Voice notes that the European Commission has laid out a proposal for a €100 million microfinance programme for small businesses and entrepreneurs affected by the financial crisis. If approved by national governments and the European Parliament, the programme is set to be established by 2010.
European Voice
European Parliament rules on hiring family members tested by Finnish MEP
Finnish MEP Mitro Repo of the Socialist Party of Finland has hired his sister-in-law as an assistant, Mtv3 reports. According to EP regulations, a sister-in-law is "in the grey zone" and does not constitute a "direct relative". Under new regulations coming into force this month MEPs cannot hire direct relatives to work for them.
Spanish MEP responds to criticism
La Razon reports that Spanish MEP Ramón Jáuregui has responded to criticism concerning a letter sent to the Spanish Parliament requesting that Spanish MEPs receive the salary of an MEP but the social security benefits and other perks of being an MP. Jáuregui said he understands why people disapprove but that the conditions of the new Members' Statute were unclear. He added that "once we have clarified that there is a sufficient system of provisions, we will give up any privilege and duplicity". However he defended the request saying that he thinks it is "unfair" that MEPs will not be protected as they "do not pay national insurance in any European public system". He also added the difference between an MP's salary and an MEP's salary "is only 2000 euros".
EU blamed for German bank woes
The BBC news reports that a German state minister is blaming the EU for problems with the German banking system. Dr Werner Marnette said that banks had to change their operations when the EU told them they had to be more competitive. In 2001, the European Commission abolished guarantees that previously protected state owned banks. "In former times when these Landesbanks gave credits to a company, the risk was covered by the state" he told the BBC.
The WSJ reports that the European Commission is to publish a set of papers today, proposing ways to reduce risks in the European over-the-counter derivatives markets. The papers will discuss issues relating to clearing of credit-default swaps, standardisation of derivatives contracts, central data depositories and trade execution services.
The Bulgarian Sega writes that the European Commission has halted publication of critical progress reports on Bulgaria until the country's parliamentary elections on 5 July in return for Bulgarian support for Barroso's re-appointment. The paper criticises the Commission for "peddling influence" on Bulgaria, and not reflecting what Bulgarians see as a "functioning democracy".
The Telegraph reports that British attempts at a "diplomatic walkout" of Iran were rejected yesterday by other EU member states. In particular, Swedish Foreign Minister, Carl Bildt said he thought it was too early for such actions. Angela Merkel believes that "a strong signal" to Iran should be instead sent by next weeks G8 summit.
Telegraph
The FT reports that a European Commission study has warned that Europe is likely to suffer a permanent loss in potential economic output as a result of the global crisis.
Les Echos writes that economic disagreements between France and Germany are straining the relationship between the two countries. The article adds that the fiscal policy responses of the two countries go in complete different directions, and that Germany under Merkel is no longer interested in common European policy actions.
The Coulisses de Bruxelles blog notes that Commission President Jose Manuel Barroso's phone bill may well be very high this month- as he plans to personally phone every member of the ADLE, the ECR, and many of the Spanish, Portuguese and British Socialists in order to secure a 15th July vote for his re-nomination.
Coulisses de Bruxelles EU Observer Monde
EUobserver reports that the Commission has published guidelines stating governments should not limit a citizen's right to move freely around the EU when investigating false marriages between EU citizens and immigrants from third countries wanting to secure residency in the EU.
The IHT reports that EU regulators have adopted new guidelines for the funding of public broadcasters and have tightened rules on financing new markets. The European Commission has said that the rules on broadcasting need to be revised because of technological advances and development.
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The FT reports that several countries (notably France, Italy and Sweden) have begun construction on new nuclear reactors as ways of fighting climate change whilst allowing for energy security.
El Mundo reports that the new eurosceptic grouping consisting of 30 MEPs and led by UKIP will be called Europe of Freedom and Democracy.
Le Monde reports that eurozone unemployment rose to 9.5 percent, over 15 million, in May, its highest since 1999. Spain had the highest unemployment rate at 18.7 percent.
City AM Irish Independent ANSA Le Monde BBC Eurostat
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