| Open Europe |
Open Europe is holding an evening discussion entitled "EU proposals for financial regulation and supervision: Is the UK behind the ball game?" on Wednesday 15 July in London. Speakers include Mark Hoban MP, Shadow City Minister; David Green, Advisor on International Affairs to the Financial Reporting Council; and Mats Persson, Research Director, Open Europe. Places are limited. If you would like to attend, please contact Sarah Gaskell at sarah@openeurope.org.uk or Tel: 020 7197 2333.
Europe
Andrew Duff to chair the EP's influential economic committee?
Euractiv notes that the French socialist MEP Pervenche Berès might lose her chairmanship of the European Parliament's influential Economic and Monetary affairs committee, following the poor election showing by the socialists in the European elections. According to the Coulisses de Bruxelles blog, Berès might be replaced by British liberal MEP Andrew Duff. The blog notes, "The funniest part of this affair is that the Chair [of ECON] will be taken over by a British Lib Dem, Andrew Duff, according to the latest news. The Lib Dems are liberals that are opposed to stricter regulation [of financial markets]...Even better: it's now a British person (whose country is not even a member of the Eurozone) who will lead a monthly discussion with Jean-Claude Trichet, president of the ECB!"
Coulisses de Bruxelles Euractiv
Germany fails to convince EU partners to temporarily relax banking rules;
Finance ministers agree to long term changes to banking and accounting rules
EU finance ministers meeting in Brussels yesterday showed little support for German proposals to temporarily relax the so-called Basel II rules on capital requirements in order to encourage bank lending, reports the FT. Swedish Finance Minister Anders Borg said that German Finance Minister Peer Steinbrück had presented "a very strong case" in favour of temporary rules, but said that "a very broad majority of countries...did not have exactly the same view", according to European Voice. Mr Borg also referred to the Basel-II problem as a "specifically German problem".
Ministers agreed longer term changes were needed to banking and accounting rules to encourage banks to build up bigger capital ratios in good times, which could be drawn on in an economic downturn, and said the onus was now on the European Commission to come forward with more concrete proposals. Senior officials confirmed they would be putting forward "a mechanism to mitigate procyclical effects ... on banks" in October, reports the FT. The Committee of European Banking Supervisors (CEBS), which offers advice to the Commission on banking issues, said that "A survival period of at least one month should be applied to determine the overall size of the liquidity buffer under the chosen stress scenarios."
The FT reports that the proposals were greeted with some scepticism in the City of London and quotes Simon Gleeson, Partner at the law firm Clifford Chance, saying "Counter-cyclical capital requirements is one of those apparently good ideas which doesn't really stand up to scrutiny".
WSJ Figaro Tribune Lepoint Independent European Voice ARD Press Release ECOFIN EurActiv EUobserver ARD ECOFIN Press release BBC Irish Independent
Lord Myners: Draft directive on alternative investment funds needs "major surgery" before the UK can support it
UK City Minister Lord Myners yesterday said that the draft directive envisioning tougher rules for hedge funds and private equity needs "major surgery" before the UK Government can support it, the FT reports. He said that when pushing for the directive, some member states had been "woefully short-sighted" and "bordering on a weak form of protectionism". He said "It is perhaps easy for other European countries to make political capital out of demanding intrusive regulation of an industry of which they have little or no direct experience," adding that the British Government is currently lobbying "a dozen key capitals" to win support for the UK position.
In the Independent, David Prosser argues that "Lord Myners is right, though it is a shame he has taken so long to go public with these criticisms. The directive as it stands is a thinly disguised - and badly informed - attack on the hedge fund industry...its primary effect would [be] to create an environment in which non-EU domiciled hedge fund groups would find it almost impossible to operate inside the EU."
CityAM Reuters Independent Independent: Prosser WSJ
84% of Conservative Party members want the Conservatives to hold a referendum if Lisbon Treaty is already ratified
A survey featured on Conservative Home shows that 84 percent of Conservative Party members want the Conservatives to give British people a referendum, even if the Lisbon Treaty is already ratified when a Conservative government is formed. Of the 84 percent, 60 percent said that the referendum should give the Government the mandate to "renegotiate Britain's wider relationship with the EU", while 24 percent said that the referendum should give the Government "authority to negotiate an opt-out from Lisbon's provisions."
10 percent said that, if the Treaty is in force, the Conservatives should "reluctantly accept" Lisbon and "look to ensure no further transfers of powers to Europe". Only 6 percent said that the Conservatives should "welcome that Lisbon cannot be undone and get on with being at the heart of Europe."
PA reports that the Irish government has announced that the second referendum on the Lisbon Treaty will be held on Friday, 2 October.
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CSU wants to investigate return of competences from Brussels
AFP reports that the German CSU party wants an investigation into the returning of competences from Brussels. General Secretary Alexander Dobrindt said "We should not just discuss on stricter control on transferring competences to Brussels. We should also talk about whether and how competences belonging to Brussels should return to the member states". He further proposed that the German Constitutional Court should "get a new complaint and control procedure in order to watch Brussels".
AFP Handelsblatt Handelsblatt 2 Handelsblatt 3 Sueddeutsche Sueddeutsche 2 Focus
Buzek set to become President of European Parliament
El Mundo reports that former Polish Prime Minister Jerzy Buzek has become the first politician from the former Communist bloc to be President of the European Parliament. Buzek has gained the support of the EPP, who has a majority in Parliament and he confirmed in a press conference that he also has the support of the socialists and the liberals.
EUobserver reports that liberal Graham Watson is set to give up his campaign to become President after the job was split between the two largest groups in the assembly. Meanwhile, Euractiv notes that EP conservatives, socialists, and potentially, the liberals, are set to back Jose Manuel Barroso for a second term as President of the European Commission if he will consider the programmes of the parties and try to include them in his five-year plan.
Meanwhile, AFP reports that the 3 main political groups in the European Parliament have reached an agreement on a September vote on the next European Commission President.
Nouvelobs AFP Etoile (Toute l'Europe) BBC El Mundo ABC FAZ Die Welt EU Observer Euractiv
Speculation mounts over who will take over as the EU's Foreign Policy Chief
El Mundo notes that the Lisbon Treaty will create an EU 'Diplomatic Service' led by the High Representative, but that unfortunately the role will not be called EU Foreign Minister due to opposition from London. The article also notes that Solana's successor should be someone from the European Left if Jean-Claude Juncker becomes President of the Council.
The FT Brussels blog considers who might be appointed the EU's next foreign policy chief and concludes that outgoing Nato Secretary-General Jaap de Hoop Scheffer is a more likely choice than either Swedish Foreign Minister Carl Bildt or EU Enlargement Commissioner Olli Rehn.
Belgian Commissioner resigns to become MEP for France
European Voice reports that Louis Michel, the European Commissioner for Development and Humanitarian aid resigned on Monday to take up the position of MEP for the French liberal party, "Mouvement Reformateur" when the assembly convenes in Strasbourg next week. It is now the job of the Belgian federal government to choose a successor. Potential candidates are Karel de Gucht, Belgium's foreign minister, and Yves Leterme, a former prime minister.
Meanwhile, Euractiv reports that Belgian authorities have announced that Belgian Foreign Minister Karel de Gucht will take Louis Michel's seat as EU development commissioner.
European Voice Euractiv Standaard
Sweden must avoid conflict with Russia
In the FT, Tony Barber writes that the Swedish EU presidency should be wary of causing disquiet with Russia during its six month term. Sweden is apparently expected to play host to an EU-Russia summit later this year, but thus far there has been no agreed date, arousing suspicions that Russian's leaders want to "signal their disapproval of Sweden's policies".
€4bn to be spent on energy projects
European Voice, El Mundo and La Razon all report that EU finance ministers have approved almost €4billion for funding for several energy infrastructure projects. The money is set to be spent by the end of 2010 on 47 different projects (including 3 projects in Spain) ranging from gas and electricity infrastructure plans to offshore wind-energy and carbon capture projects.
European Voice El Mundo La Razon
BNP fails to form group in EU parliament
The Parliament writes that British National Party leader Nick Griffin has admitted defeat in his attempts to form a new political group. "It is disappointing but not that surprising," said Griffin - this means that the BNP will not be eligible for further EU funding and speaking time.
In the FT, Satyajit Das argues that the new EU regulation of derivates markets, which focus mainly on the establishment of a central clearing mechanism, misses the point. Central clearing does not solve the problem, he argues.
Agence Europe reports that the European Commission will propose measures to set common standards on the right to interpretation and translation during police questioning, meetings with lawyers and all court hearings throughout the EU.
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The Economist's Charlemagne blog reports that French Budget Minister Eric Woerth has said he is planning an "assault" on the French government's fleet of 89,000 official cars, not counting police cars, fire engines, or other state vehicles, by selling those cars over 7 years old, and replacing them with smaller cars.
Economist: Charlemagne's notebook Le Figaro
Agence Europe reports that a pilot EU project, involving 12 member states, which will provide for the electronic transmission of patients' prescriptions between member states, is due to be up and running by the end of July. The project, co-financed by the Commission and member states, will cost up to €22m.
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Agence Europe reports that the presentation of Commission proposals allowing member states' police forces and Europol access to the database containing the finger prints of asylum seekers has been delayed until September.
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FAZ writes that the European Space Agency wants to invest in a space transporter, able to carry 2 tonnes and four astronauts to space. The 'advanced re-entry vehicle' (ARV) would be operational as early as 2016.
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In the WSJ, Gordon Brown and French President Nicolas Sarkozy write that governments need to act to curb a "dangerously volatile" oil price that defies "the accepted rules of economics" and "could undermine confidence just as we are pushing for recovery."
EurActiv reports on the varying opinions regarding the Lisbon Treaty's success and future. Some suggest that the Treaty should not be completely scrapped, but that "new narratives" should be added to it. Gerard de Graf, head of the European Commission group on Lisbon Strategy, reportedly said that economic regulation needed to be sped up.
UK
Alistair Darling, the Chancellor of the Exchequer, will today introduce his plans for reforming Britain's financial system in the wake of last year's crisis.
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